Li Auto has secured ¥1.625 billion ($242 million) in equity financing for its chip and domain controller subsidiary, Shanghai Mahe Xin Technology (MHX Technology). Li Auto will contribute ¥1 billion, while external investors, including Hangzhou Jingtao, Lanchi Ventures, Huaye Tiancheng, and MiraclePlus, will provide the remaining ¥625 million.
The agreement includes an option for Hangzhou Jingtao to invest an additional ¥500 million by December 31, 2026. If fully exercised, the total funding would reach ¥2.125 billion. Li Auto will maintain control of the subsidiary and continue to consolidate its financial results.
MHX Technology plans to implement two equity incentive programs for employees. Following the full exercise of all options and incentives, Li Auto is expected to hold a 74.01% stake, with external investors at 6.58% and incentive entities at 19.41%.
The capital will support research, development, and commercialization as the company targets non-automotive industrial markets. Li Auto aims to scale its chip business, which includes the 5-nanometer Mach M100 driver-assistance chip, and explore external sales of its proprietary technologies.
