Shanghai (ZXZC)- Chinese EV startup Xpeng Motors recently set up a subsidiary in Shenzhen that primarily engages in the R&D and sale of intelligent robots.

Dubbed Shenzhen Pengxing Intelligence Co.,Ltd., the company was founded on Dec. 22 and involves a registered capital of 10 million yuan ($1.528 million), according to the corporate data platform Tianyancha. It has a line of businesses including the R&D and sale of intelligent robots, and the sale of AI-powered hardware, industrial robots and service robots. It is jointly held by Guangdong Xiaopeng Automotive Industry Holding Co., Ltd., Zhao Tongyang and He Xiaopeng, the chairman of Xpeng Motors. Of those, Mr. He is the majority shareholder by owning 65.1% equity interests.

Xpeng announced on Dec. 7 that it planned to offer and sell 40 million American Depositary Shares (ADSs) to the public, which represent 80 million Class A ordinary shares.

In addition, the company granted the underwriters a 30-day option to purchase up to a total of 6 million additional ADSs.

Xpeng said in a filing with the Securities and Exchange Commission that it might receive net proceeds of roughly $1.942 billion from this public offering, or around $2.234 billion if the underwriters exercise in full the option to purchase additional ADSs.

The net proceeds from the offering is set to be used in the R&D of Xpeng's smart EVs and software, hardware and date technologies, the sales and marketing businesses, the expansion of sales and service channels and supercharging network, the expansion of Xpeng's footprints in global markets, the potential strategic investments in core technologies related to smart EVs, as well as general purposes like working capital needs.