Zhejiang Leapmotor Technology (9863) Q3 2025 earnings summary

Executive summary

• Q3 2025 net profit reached CNY 160 million, reversing a loss of CNY 690 million in Q3 2024, with cumulative net profit for the first three quarters at CNY 180 million, driven by strong vehicle sales and improved per-unit revenue.

• Revenue for Q3 was CNY 19.454 billion, up 97.3% year-over-year, with gross profit margin rising to 14.5% from 8.1% a year ago.

• Delivery volume in Q3 reached 173,852 units, with monthly sales records and leadership in the Chinese new energy vehicle segment.

• Achieved 1,000,000th vehicle produced in September 2025, surpassing the 500,000 annual sales target ahead of schedule.

Financial highlights

• Gross margin improved to 14.5% in Q3 2025, up from 8.1% a year ago and 13.6% in Q2 2025.

• Operating cash flow in Q3 was CNY 4.88 billion, with free cash flow at CNY 3.84 billion and cash and equivalents at CNY 33.92 billion as of September 30, 2025.

• Q3 sales reached 173,000 units, up 101% year-over-year and 29% month-on-month.

• Carbon credit revenue in Europe was CNY 250 million in Q3, expected to rise to CNY 500 million in Q4.

Outlook and guidance

• 2026 will see the launch of multiple new models across A, B, and C platforms, including the A10 and A5, and localization projects in Malaysia and Europe.

• Overseas sales target for 2026 is set between 100,000 and 150,000 units, with continued expansion in Europe, Middle East, Africa, and Asia-Pacific.

• Net profit target for 2026 is CNY 5 billion, with a sales target of 1 million units.

• Full-year sales expected to exceed 600,000 units, with 2025 annual target of 500,000 units achieved 1.5 months early.