Zhejiang Leapmotor Technology (9863) Q2 2026 earnings summary

Executive summary

• Achieved net profit of CNY 210 million in H1 2026, with adjusted net profit at CNY 270 million, marking consecutive half-year profitability.

• Delivered 356,487 vehicles in H1 2026, up 60.8% year-over-year, ranking first among China's EV startups and emerging auto brands.

• Overseas exports reached 96,294 units in H1, up 372.6% year-over-year, now 27% of total sales, with total exports for Jan–July exceeding 1.13 million units.

• Revenue rose 57.2% to CNY 38.11 billion, driven by strong vehicle and parts deliveries.

• Multiple new models launched, including A10, D19, D99, Lafa, C10, C11, C16, B10, B01, and A05, covering all mainstream price ranges.

Financial highlights

• Revenue for H1 2026 was CNY 38.11 billion, up 57.2% year-over-year.

• Gross profit margin was 11.7% in H1, down from 14.1% in H1 2025; Q2 GP margin improved to 12.6%.

• Free cash flow was CNY 140 million, down from CNY 860 million in H1 2025.

• Cash and cash equivalents at end of June were CNY 38.59 billion.

• Gross profit for H1 was CNY 4.45 billion, up 29.7% year-over-year.

Outlook and guidance

• Full-year 2026 net profit guidance revised to CNY 3 billion, down from initial CNY 5 billion due to raw material price increases.

• Full-year export volume expected to surpass 150,000 units, with a stretch target of 200,000 units; 2027 target at 350,000–400,000 units, mainly in Europe and South America.

• GP margin for the year expected at 13–14%; vehicle sales margin at 10–11%.

• Overseas markets, especially Europe, are a key growth driver, with strong market share gains in Italy and Germany.

• GP margin expected to improve in H2 due to scale effects and stabilized raw material prices.