Li Auto announced that its chip and domain controller subsidiary, Shanghai Mahe Xin Technology Co. (MHX Technology), has secured RMB 1.625 billion (approximately $242 million) in its first equity financing round.
Li Auto will invest RMB 1.0 billion through a subsidiary. External investors, including Hangzhou Jingtao, Lanchi Ventures and Huaye Tiancheng, will provide the remaining RMB 625 million.
The deal values MHX Technology at about RMB 15 billion before the financing. Its post-money valuation could reach RMB 17.1 billion ($2.5 billion) if an additional subscription right is fully exercised.
MHX Technology will use the funds to advance research, development and commercialization of its chip business, and plans to expand into non-automotive sectors. Li Auto will retain a controlling stake of approximately 74.01% in the subsidiary.