$LI · Li Auto Inc.
Li Auto filed a 6-K announcing that its chip and domain controller subsidiary, MHX Technology, has entered into subscription agreements for RMB1.625 billion in equity financing. Li Auto will invest RMB1.0 billion through a wholly-owned subsidiary, while external investors contribute RMB625 million. Hangzhou Jingtao also received a one-off right to invest up to an additional RMB500 million at the same per-unit price by December 31, 2026. Li Auto will continue to consolidate MHX Technology and hold approximately 74.01% equity post-financing.
- MHX Technology, Li Auto's chip and domain controller subsidiary, raised RMB1.625B in equity financing.
- Li Auto invests RMB1.0B; external investors including Lanchi Ventures and MiraclePlus contribute RMB625M.
- Hangzhou Jingtao holds a one-off right to invest up to an additional RMB500M by December 31, 2026.
- Post-financing, Li Auto retains ~74.01% ownership and continues to consolidate MHX Technology's financials.
- Two share incentive plans were adopted to attract and retain key talent at the chip subsidiary.
Extended-hours trading shows LI at $11.42, down -0.35% from the regular close of $11.46 — a muted reaction to a non-dilutive subsidiary financing that preserves Li Auto's control.
This financing carves out Li Auto's chip business as a standalone entity targeting non-automotive markets, potentially unlocking value beyond the core EV operations.
Chinese EV makers are increasingly verticalizing chip design to reduce reliance on external suppliers; Li Auto's move mirrors similar efforts by BYD and NIO to spin out semiconductor units for third-party revenue.
Completion is subject to customary closing conditions; the chip unit targets non-automotive sectors where Li Auto has no track record, and the incentive plans could dilute Li Auto's stake to ~74%.
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