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Shares of Leapmotor Technology climbed following its first-half profit this year, making it only the second Chinese electric vehicle startup to do so after Li Auto. As of 11:55 a.m. in Hong Kong, the stock was up 2 percent to HKD69.50 (approximately USD8.91), after reaching a 4.2 percent increase the day before. The company’s stock has more than doubled this year, reflecting growing investor confidence in its improved financial performance.
The company reported a net profit of CNY30 million (about USD4.2 million) for the six months ending June 30, a stark turnaround from a net loss of CNY2.2 billion (around USD306.3 million) during the same period last year. Revenue surged 174 percent to nearly CNY24.3 billion (USD3.4 billion), driven by increased vehicle and parts deliveries, as well as higher income from strategic partnerships, carbon credit trading, and other services.
During the first half of the year, deliveries of electric vehicles totaled 221,664 units, marking a 156 percent increase compared to the same period last year and positioning the company as the top emerging auto brand in China by sales. In July alone, deliveries reached a record 50,129 units.
The company exported 20,375 vehicles during this period, maintaining a presence in over 30 global markets with more than 600 stores, including 550 in Europe and nearly 50 in the Asia-Pacific region. Its domestic sales and service network expanded to cover 286 cities as of June 30, up from 198 a year earlier.
Executives announced during a recent earnings call that the company has increased its delivery target for 2025 to between 580,000 and 650,000 units, up from an earlier forecast of 500,000 units. The target for 2026 has also been raised to one million units, with 290,000 units delivered last year.
Gross margin for the first half improved significantly to 14.1 percent from just 1.1 percent the previous year, largely due to economies of scale from higher sales, ongoing cost management, product mix optimization, and revenue from other business areas.
Founded in 2015 and listed on the Hong Kong Stock Exchange in September 2022, the company initially lagged behind its competitors but gained momentum through a market-focused strategy offering competitive pricing.
Its compact SUV, the B10, is priced between CNY109,800 and CNY129,800 (USD15,290 to USD18,070). The mid-size SUVs, the C10 and C11, are priced from CNY128,800 to CNY209,800, making them more accessible to a broader customer base compared to premium EV brands like Nio and Li Auto.
Continued heavy investment in future growth saw research and development expenses rise 55 percent to CNY1.9 billion (USD264.5 million) in the first half of the year compared to last year.
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