Jan 28, 2021

(Yicai Global) Jan. 28 -- Chinese electric carmaker Leap Motor has secured CNY4.3 billion (USD663.7 million) in Series B financing. The Hefei government in eastern Anhui province, where Leap has recently agreed to build a second plant, took part in the fundraising. Leap Motor raised CNY1 billion (USD154 million) more than expected, major shareholder Zhejiang Dahua Technology said yesterday. It secured CNY3 billion in a B1 round earlier this month and a further CNY1.3 billion in a B2 series completed yesterday. Hefei Xuanyi Zhihui New Power Industry Investment Fund Partnership, under the Hefei government, invested CNY200 million (USD30.9 million) for a 1.23 percent stake. Hangzhou-based Leap Motor agreed earlier this month to set up a second plant in the province with an annual production capacity of 200,000 vehicles, according to earlier media reports. The Hefei government, which invested in rival Nio last February, will pump in a further CNY1.8 billion in pre-initial public offering financing for Leap Motor, local media reported. Senior executives at the carmaker have hinted that Leap Motor will file to list on the Shanghai stock exchange’s Nasdaq-style Star Market in June with the aim to float before the end of the year. The funds will mainly go towards research and development, expanding sales channels and brand promotion. Established in 2015, Leap Motor is still in the red and has racked up losses of over CNY1 billion in the past two years. In the first nine months of 2020, it logged losses of CNY487 million on revenue of CNY267 million, according to its financial report. It currently has three models on the market and last year sold 11,391 vehicles, a quarter of which were shifted in December. Hangzhou-based Dahua did not invest in this round of financing, and its shareholding ratio in Leap Motor will drop to 11.41 percent from 15.50 percent. Dahua’s shares [SHE:002236] were trading down 6.57 percent at CNY24.19 (USD3.73) at 2 p.m. China time today. Editor: Kim Taylor