Sources close to Cailian Press have disclosed that FAW Group intends to invest in Leapmotor, positioning itself as a strategic shareholder in the company.

An insider revealed, "FAW plans to initially acquire approximately 10% of Leapmotor's shares. This plan is currently being circulated and promoted within relevant FAW departments."

On August 18, Leapmotor (09863.HK) announced its financial report for the first half of 2025, marking the company's first positive net profit in a six-month period, positioning it as the second Chinese new-energy vehicle company to achieve this milestone.

Specifically, in the first half of 2025, Leapmotor generated revenues of RMB 24.25 billion, a year-on-year increase of 174%, and a net profit of RMB 30 million, compared to a net loss of RMB 2.21 billion in the same period in 2024. It is reported that Leapmotor has adjusted its 2025 break-even target to full-year profitability, with an expected net profit range of RMB 500 million to RMB 1 billion.

In terms of gross margin, Leapmotor achieved a 14.1% gross margin in the first half of 2025, marking a 13% year-on-year increase and reaching a new high since the company's inception.

Sales-wise, Leapmotor delivered a total of 221,700 vehicles in the first half of the year, a year-on-year increase of 155.7%. Leapmotor claims that this sales volume places it first among new-energy vehicle brands in China. The company expects to deliver approximately 170,000 to 180,000 vehicles in the third quarter and is confident of achieving sales of 580,000 to 650,000 vehicles for the full year 2025, with ambitions to challenge the sales target of 1 million vehicles in 2026.

Notably, in this half-year report, Leapmotor disclosed that the first jointly developed model project with FAW Group has been launched, with follow-up work actively progressing. The two parties will also further explore the feasibility of deepening capital cooperation to achieve synergy across the entire industry chain.

In fact, as early as March, Leapmotor and FAW Group had already signed a "Memorandum of Understanding on Strategic Cooperation," aiming to collaborate on technology and capital. Firstly, both parties will leverage their respective technical expertise in R&D to jointly develop new energy passenger vehicles and collaborate on parts and components, enhancing product competitiveness through technological integration. Secondly, they will further explore the feasibility of deepening capital cooperation to achieve resource synergy across the entire industry chain through capital ties.

Based on the memorandum and the half-year report, Leapmotor has established a profound cooperative relationship with FAW Group, with cooperation already taking shape and further exploration of the feasibility of deepening capital cooperation underway. In this regard, the potential for equity cooperation between the two parties cannot be overlooked.