Zhejiang Leapmotor Technology (9863) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached RMB10,820 million (CNY 10.8 billion), up 8% year-over-year, driven by increased vehicle and parts deliveries despite a lower ASP due to product mix changes.

• Sales volume in Q1 was 110,155 units, with overseas sales exceeding 40,000 units and accounting for 37.1% of total volume, a historic high.

• Market share in the NEV segment rose to 4.22%, ranking first among EV startups and leading among emerging auto brands.

• Net loss attributable to equity holders was RMB390 million, compared to a loss of RMB130 million in Q1 2025 and a profit of RMB360 million in Q4 2025.

• New models, including A10, D19, and D99, contributed to strong order intake and brand momentum.

Financial highlights

• Gross margin for Q1 2026 was 9.4%, down from 14.9% in Q1 2025 and 15.0% in Q4 2025, mainly due to product mix and reduced strategic cooperation business.

• Operating cash flow was -RMB6,610 million; free cash flow was -RMB7,400 million.

• Cash and cash equivalents stood at RMB30,630 million as of March 31, 2026.

• Cost of sales was RMB9,800 million, up 14.9% year-over-year.

• Export sales grew over 42% year-over-year in Q1.

Outlook and guidance

• Q2 2026 sales guidance is 240,000–250,000 units, with GP margin expected to improve to 12–13%.

• Annual overseas sales target of 150,000 units is considered highly achievable.

• Full-year sales target remains at 1 million units, with H1 expected to reach 360,000 units.

• Profit target of RMB5 billion for 2026 is maintained, though risks remain due to raw material and market uncertainties.

• D99 MPV to begin pre-sales in June and deliveries in July, targeting the RMB300,000 segment.