Zhejiang Leapmotor Technology (9863) Q3 2025 earnings summary

Executive summary

• Q3 net profit reached CNY 160 million, reversing a loss of CNY 690 million in the same period last year, driven by strong vehicle sales and improved per unit revenue capacity.

• Q3 revenue was CNY 19.454 billion, up 97.3% year-over-year, with delivery volume at 173,852 units and gross profit margin at 14.5%.

• Cumulative sales surpassed 1 million units, with annual sales target of 500,000 units achieved ahead of schedule; full-year sales expected to exceed 600,000 units.

• The company is expanding its product lineup with new launches in the C, D, and A series, and is targeting 1 million units in sales and CNY 5 billion in net profit for 2026.

• October monthly deliveries exceeded 70,000 units for the first time.

Financial highlights

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

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

• Free cash flow reached CNY 3.84 billion in Q3.

• Q3 sales reached 173,852 units, up 101% year-over-year.

• Revenue from carbon credits in Europe was CNY 250 million in Q3, expected to rise to CNY 500 million in Q4.

Outlook and guidance

• 2026 sales target set at 1 million units and net profit target at CNY 5 billion.

• Overseas sales target for 2026 is 100,000–150,000 units, with continued high growth expected in Europe, Middle East, Africa, and Asia-Pacific.

• Four new models to be launched in 2026, with further expansion into lower-tier domestic cities and international markets.

• Plans to accelerate global expansion in 2026, including localization projects in Malaysia and Europe.

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