Leapmotor experiences profitability during the first half of the year, sets higher sales objective for 2025
In a significant milestone for the Chinese electric vehicle (EV) industry, Leapmotor, a leading NEV manufacturer, has reported its first-ever half-year profit. The financial report, released today, reveals that the company achieved a net income of RMB 30 million ($4.2 million) in the first half of 2025. This achievement makes Leapmotor the second Chinese NEV maker, following Li Auto, to achieve semi-annual profits.
The increase in Leapmotor's gross margin is attributed to economies of scale from higher sales, ongoing cost management, product mix optimization, and gains from other businesses. The company's gross margin for the first half of the year reached a record high of 14.1 percent, up 13 percentage points from 1.1 percent in the same period of 2024.
Leapmotor's strong sales performance is the reason for the raised sales target for 2025 and the aim for 1 million units in 2026. In the first seven months, Leapmotor's deliveries reached 271,793 units, up 149.84 percent year-on-year. This represents a significant increase from the 221,664 vehicles delivered in the first half of 2025, marking a year-on-year increase of 155.68 percent.
The company's net cash flow from operating activities in the first half of the year was RMB 2.86 billion, more than 10 times the RMB 270 million in the same period of 2024. As of June 30, Leapmotor's cash and cash equivalents, restricted cash, and time deposits totaled RMB 29.58 billion.
Leapmotor's success is led by its founder and chairman, Zhu Jiangming. He founded Leapmotor in 2015 and leads the company as chairman and CEO. The company is also backed by Stellantis NV (NYSE: STLA).
In addition to its focus on vehicle production, Leapmotor has begun supplying battery packs to some commercial NEV makers, according to a report. The company's stock is traded under the symbol HKG: 9863 on the Hong Kong Stock Exchange.
Looking ahead, Leapmotor aims to achieve annual sales of 1 million units in 2026. With its robust financial performance and strategic initiatives, the company is well-positioned to meet this ambitious goal.
Read also:
- Stock markets in Asia experience a surge following a record-breaking rally in U.S. stocks, fueled by optimism towards potential interest rate reductions.
- App Store Faces Threat of Lawsuit from Elon Musk over Accusations of Unfair AI Preference
- Strategies for Adhering to KYC/AML Regulations in India, a Leading Fintech Center (2024)
- Zigbee and LoRa Low-Power Internet of Things (IoT) Network Protocols: The Revolution in Data Transmission and Networking
