Li Auto Inc. (Nasdaq: LI) announced that its chip and domain controller subsidiary, Shanghai Mahe Xin Technology Co., Ltd. (MHX Technology), has entered into subscription agreements for equity financing totaling RMB1.625 billion.

According to a press release, Li Auto, through a wholly-owned subsidiary, will contribute RMB1.0 billion, while external investors — Hangzhou Jingtao, Lanchi Ventures, Huaye Tiancheng, and MiraclePlus — will collectively invest RMB625 million.

Hangzhou Jingtao has also been granted a one-time right to invest an additional amount of up to RMB500 million in MHX Technology at the same price per unit of increased registered capital, exercisable on or before December 31, 2026.

Li Auto said it will retain control of MHX Technology and continue to consolidate its financial results following the transaction. Assuming full utilization of two share incentive plans and full exercise of the Hangzhou Jingtao subscription right, Li Auto would hold approximately 74.01% of MHX Technology, with external investors holding 6.58% and incentive plan administrators holding 19.41%.

MHX Technology plans to use the capital to advance research, development, and commercialization of its chip and domain controller business. The two share incentive plans are intended to attract and retain employees. Completion of the financing remains subject to customary closing conditions.