On July 30, Dahua Tech, the parent company of the Chinese EV startup manufacturer, said that Jinhua CRRC Intelligent IOT New Energy Industry Investment Center (Jinhua CRRC Fund) intends to increase the capital of Leapmotor in the A-2 funding round, with a total capital increase of 360 million yuan (~US$51,882,917). Among them, 29,355,800 yuan is included in the registered capital of Leapmotor, the remaining 330 million yuan is included in the capital reserve. After the completion of this round of financing, Jinhua CRRC Fund holds 5.06% of the shares of Leapmotor. According to calculation, the valuation of Leapmotor is about 7.115 billion yuan (~US$1.016 billion).
Dahua Tech gave up the same proportion of capital increase in funding round. After the completion of the capital increase, the registered capital of Leapmotor will increase from 55135.5756 million yuan to 580,713,558 yuan, and the proportion of the company’s shareholding in Leapmotor will be reduced from 16.32% to 15.50%.
Previously, Leapmotor had an A-1 funding round of 760 million yuan in November 2018, from Shanghai Electric Group, Xingzhen Investment, Everfront Phoenix Mountain Ltd, Sequoia Capital, Hualing Investment, ChipTrip Technology, Chen Jinxia, a total of 7 investors invested.
Judging from the car making progress, Leapmotor’s first EV, the S01, has entered the stage of mass production delivery, it plans to deliver 10,000 vehicles in 2019. In addition, Leapmotor also plans to launch two products in 2020, one will be positioned in miniature electric vehicle, it will be available for delivery in 2020; Leapmotor C-more, the other EV is the first SUV of Leapmotor, which was unveiled at the 2019 Shanghai Auto Show. According to the plan, the range of Leapmotor C-more will be no less than 500km under comprehensive working condition, it is planned to be listed at the end of 2020 and will be officially delivered in 2021.
According to the announcement, in 2018, the operating income of Leapmotor was 1.224 million yuan and the net loss was 307 million yuan. From January to June 2019, Leapmotor achieved a revenue of 1.21 million yuan and a net loss of about 200 million yuan. At present, Chinese vehicle startup enterprises are still in the survival stage such as production running-in, new car just launching or about to be put on the market. For Leapmotor, which has been established for less than four years, it is obviously a long way to go to achieve profitability.
LEAPMOTOR is an innovative intelligent electric vehicle company jointly invested by Zhejiang Dahua Technology and its main founders. Founded in 2015, LEAPMOTOR is headquartered in Hangzhou, China. LEAPMOTOR’s business scope covers intelligent electric vehicle design, R&D, intelligent driving, motor electronic control, battery system development, and cloud computing-based car networking solutions.
LEAPMOTOR always adheres to the independent research and development of core technology, it is committed to creating a high-quality, international, global, mainstream smart electric vehicle brand with independent core technology.
Zhu Jiangming, chairman of LEAPMOTOR, repeatedly stressed that LEAPMOTOR’s vehicle is made by IT engineers, LEAPMOTOR wants to design and manufacture smart electric vehicles as electronic products.