Zhitong Finance App News, Ideal Automobile-W (02015) announced that on October 16, 2026, Mahexin Technology (an indirect wholly-owned subsidiary of the Company on the date of this announcement) entered into a controlling shareholder subscription agreement. Mahexin Intelligent Technology conditionally agreed to subscribe Mahexin Technology's additional registered capital of RMB 42.8266 million at a total purchase price of RMB 1 billion; and Maherxin Technology and the investors conditionally agreed to a total purchase price of RMB 6.25 The 100 million yuan subscription for Machxin Technology added a total registered capital of RMB 267.666 million. Ma Hexin Technology's current round of equity financing was led by Hangzhou Jingtao, Lanchi Venture Capital, and Huaye Tiancheng, and Miracle Innovation participated.
Furthermore, according to the capital subscription agreement of Maherxin Technology, Mahesin Technology and Mahezhixin Intelligent Technology have agreed to grant Hangzhou Jingtao additional investors the right to subscribe to Hangzhou Jingtao on the completion date applicable to Hangzhou Jingtao. Additional investors from Hangzhou Jingtao can subscribe for additional registered capital of Mahexin Technology in one time at an implied purchase price of RMB 23.35 per unit before December 31, 2026, with a total subscription cost of not more than RMB 500 million.
The board of directors further announced that as far as subscription matters are concerned, Maherxin Technology will adopt Mach Incentive Plan 1 for its employees and Mach Incentive Plan 2 for its senior management. The plan authorization limits are 15% and 5% of Mahesin Technology's expanded registered capital after the subscription is completed (assuming that Hangzhou Jingtao's subscription rights have not been exercised).
The Company believes that the introduction of external equity financing for Mach Technology through the Mach Technology Capital Subscription Agreement and the adoption of Mach Incentive Plan 1 and Mach Incentive Plan 2 are of commercial benefit to the Company and Mach Incentives Technology, and conforms to the overall interests of the Company and its shareholders for the following reasons:
(a) The chip and domain controller business is the Group's second growth curve, which complements the Group's core high-end smart electric vehicle business. Establishing Maherxin Technology as an exclusive platform for this business will enable centralized management attention, special capital allocation, and independent corporate governance. This architecture enables Mach Hsin Technology to seize a wider range of industrial opportunities, especially in the non-automotive sector, and achieve improved economies of scale;
(b) The subscription will provide Mach Heart Technology with a large amount of capital to support its R&D and commercialization activities covering the entire chip value chain, thereby using external financing to invest capital and make the Group's financial resource allocation more efficient;
(c) The participation of internationally renowned institutional investors is expected to enhance the image of Maherxin Technology among its potential customers, suppliers and strategic partners, and enhance its position in negotiations and business expansion;
(d) Adopting Mach Incentive Plan 1 and Mach Incentive Plan 2 will provide a competitive long-term incentive mechanism to attract, motivate and gather core technical and engineering talents essential to the success of Mach Hsin Technology; and to align the interests of key personnel with the long-term growth and value creation of Mach Hsin Technology;
(e) The Company will continue to control Mach Heart Technology and merge it after the transaction is completed, and can achieve strategic synergy between the Group and Mahershim Technology by sharing R&D resources and achievements in chip technology and autonomous driving, so that the Group can preserve the strategic benefits of the chip and domain controller business; and
(f) The introduction of external financing enables the value of Mahshim Technology and the Group's chip and domain controller business to be more fully reflected according to its own advantages, and enables investors to evaluate and judge the performance and potential of Mahershin Technology independently of the Group's other businesses.
Furthermore, granting the Hangzhou Jingtao subscription right will provide Mahesin Technology with an opportunity to raise additional capital of up to RMB 500 million in the short term at the same valuation as the subscription item. This reflects Hangzhou Jingtao's confidence in the future of Mahesin Technology, and if this right expires, no obligation will be imposed on the Group.