Li Auto expects to hold around 74% of MHX Technology after the financing, incentive plans and a further investment right
Li Auto’s chip and domain controller subsidiary, Shanghai Mahe Xin Technology (MHX Technology), has entered into equity financing agreements worth CN¥1.625bn (US$241m). Li Auto will invest CN¥1bn (US$149m) through a wholly owned subsidiary, while external investors Hangzhou Jingtao, Lanchi Ventures, Huaye Tiancheng and MiraclePlus will contribute CN¥625m (US$93m).
MHX Technology houses the business developing Li Auto’s chips and domain controllers, the computing units that centralise control of vehicle functions. Li Auto said establishing it as a dedicated platform would allow the business to pursue wider industrial opportunities, particularly in non-automotive sectors, and achieve greater economies of scale.
An additional Hangzhou Jingtao investor has also been granted a one-off right to invest up to CN¥500m (US$74m) by 31 December 2026, at the same price as the main financing. MHX Technology will adopt two share incentive plans for employees and key contributors.
Li Auto will continue to control MHX Technology and consolidate its financial results. Assuming both incentive plans are fully used and the additional investment right is exercised in full, Li Auto would hold around 74.01% of the business, external investors 6.58% and the incentive plan entities 19.41%.
The funding will support MHX Technology’s research, development and commercialisation efforts. Completion remains subject to customary closing conditions.
Source: GlobeNewsWire
