Zhejiang Leapmotor Technology (9863) Q2 2026 earnings summary

Executive summary

• Achieved net profit of RMB210 million in H1 2026, marking consecutive half-year profitability, with adjusted net profit at RMB270 million.

• Revenue grew 57.2% year-over-year to RMB38.11 billion, driven by strong vehicle and parts deliveries.

• 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 strong growth in Europe.

• Maintained leadership in China's new energy passenger vehicle market, with global cumulative deliveries surpassing 1.7 million units.

Financial highlights

• Gross profit was RMB4.45 billion, up 29.7% year-over-year, but gross margin declined to 11.7% from 14.1% due to higher raw material costs and product mix changes.

• Free cash flow was RMB140 million, down from RMB860 million in H1 2025.

• Cash and cash equivalents at end of June were RMB38.59 billion.

• Net cash from operating activities was RMB2.17 billion, down from RMB2.86 billion year-over-year.

• Carbon credit revenue in H1 was RMB800–900 million, with Q2 at around RMB500 million.

Outlook and guidance

• Full-year 2026 net profit guidance revised to RMB3 billion, down from initial RMB5 billion due to raw material price increases.

• Full-year export volume expected to exceed 150,000 units, with a stretch target of 200,000 units, and 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 expansion continues, with new localized assembly projects in Southeast Asia, Europe, and South America.

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