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Zhejiang Leapmotor Technology (9863) investor relations material

Zhejiang Leapmotor Technology Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary18 Aug, 2025

Executive summary

  • Achieved first-ever positive interim net profit of RMB33 million in H1 2025, reversing a RMB2.21 billion loss in H1 2024, and became the second profitable EV startup in China for the period.

  • Delivered 221,664 vehicles in H1 2025, up 155.7% year-over-year, ranking first among Chinese EV startups and emerging auto brands.

  • Revenue surged 174% year-over-year to RMB24.25 billion, driven by higher vehicle deliveries, strategic cooperation, and new business streams.

  • Gross margin reached a record 14.1% in H1 2025, up from 1.1% in H1 2024, reflecting economies of scale and cost management.

  • Expanded global presence with over 600 international outlets, exporting 20,375 units in H1 2025, and announced new localized production plans in Europe and Malaysia.

Financial highlights

  • H1 2025 revenue was RMB24.25 billion, up from RMB8.85 billion in H1 2024.

  • Gross profit reached RMB3.43 billion, up 3,330% year-over-year.

  • Net profit was RMB33 million, compared to a net loss of RMB2.21 billion in H1 2024; adjusted net profit (non-IFRS) was RMB330 million.

  • Free cash flow was RMB860 million, up from negative RMB480 million in H1 2024.

  • Cash and equivalents, including financial assets and bank deposits, totaled RMB29.58 billion as of June 2025.

Outlook and guidance

  • Full-year sales guidance raised to 580,000–650,000 units, with Q3 2025 sales expected at 170,000–180,000 units.

  • Plans to expand sales and service network to 60 new cities by year-end, targeting 90% urban coverage.

  • GP margin for H2 2025 expected to improve, targeting 14–15% for the full year.

  • Overseas sales in Europe projected to double in 2026, with localized production starting by end-2026.

  • Confident in achieving 1 million unit sales in 2026; minimal impact expected from end of NEV purchase tax incentives in China.

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Frequently asked questions

Zhejiang Leapmotor Technology Co., Ltd. is a China-based company specializing in the design, development, and manufacturing of smart electric vehicles (EVs). The company's product portfolio includes passenger cars, featuring advanced technologies such as autonomous driving systems and intelligent connectivity solutions. The company is headquartered in Hangzhou, China, and its shares are listed on the Hong Kong Stock Exchange.

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