Zhejiang Leapmotor Technology (9863) Q2 2025 earnings summary

Executive summary

• Achieved first-ever interim net profit of RMB30 million in H1 2025, a turnaround from a RMB2.21 billion loss in H1 2024, becoming the second profitable EV startup in China for the period.

• Revenue surged 174% year-over-year to RMB24.25 billion for H1 2025, driven by higher vehicle deliveries, strategic cooperation, and carbon credit trading.

• Delivered 221,764 vehicles in H1 2025, up 155.7% year-over-year, ranking first among Chinese EV startups; July deliveries hit a record 50,129 units, maintaining top position for five consecutive months.

• Cumulative deliveries surpassed 800,000 units, with global deliveries exceeding 100,000 since IPO.

• Expanded global presence, exporting over 20,000 units in H1 2025 and establishing 600+ international sales/service centers.

Financial highlights

• H1 2025 revenue reached RMB24.25 billion; gross profit margin hit a record 14.1%, up from 1.1% a year earlier.

• Attributable net profit for H1 2025 was RMB330 million (non-IFRS), a turnaround from a loss of RMB2.02 billion in H1 2024.

• Free cash flow was RMB860 million, up from negative RMB480 million year-over-year; cash and equivalents stood at RMB29.58 billion at end-June.

• Net cash from operating activities: RMB2.86 billion, up from RMB270 million a year earlier.

• Non-auto sales revenue was RMB1.1 billion in H1, with carbon credit trading contributing RMB200–300 million monthly.

Outlook and guidance

• Full-year 2025 sales guidance raised to 580,000–650,000 units, up from previous 500,000–600,000.

• Q3 2025 sales expected at 170,000–180,000 units; August and September sales projected to rise sharply.

• Full-year gross profit margin expected at 14–15%, with potential for further improvement in H2.

• Confident in challenging 1 million unit sales target for 2026.

• Full-year net profit target set at RMB500 million–1 billion.