Li Auto Chip Unit Signs RMB 1.625 Billion Equity Agreements

Li Auto is arranging RMB 1.625 billion in equity financing for its chip and domain-controller unit, with the automaker planning to provide most of the funding and retain control of the business.

Shanghai Mahe Xin Technology Co., Ltd. (MHX Technology) signed the agreements Friday, Oct. 16, 2026. Li Auto plans to invest RMB 1 billion through a wholly owned subsidiary. Hangzhou Jingtao, Lanchi Ventures, Huaye Tiancheng and MiraclePlus would provide the remaining RMB 625 million. Completion is subject to closing conditions.

A separate one-time right allows a Hangzhou Jingtao Additional Investor to invest as much as RMB 500 million at the same price per unit of increased registered capital by Dec. 31, 2026. If fully exercised, that investment would bring the potential total to RMB 2.125 billion.

MHX Technology will establish two share-incentive plans for employees and key contributors. If both plans are fully used and the additional investment right is exercised in full, Li Auto would hold 74.01% of the unit. Outside investors would hold 6.58%, while entities administering the plans would hold 19.41%.

The financing is intended to support chip research and development and commercialization. Li Auto’s MACH M100 chip entered mass production and vehicle deployment in the first half of 2026. The automotive-grade chip uses 5-nanometer technology and provides 1,280 TOPS of computing power per chip.