Financial Performance - Revenue for Q3 2024 reached RMB 9.86 billion, an 83.9% quarter-over-quarter increase and a 74.3% year-over-year increase, driven by significant growth in product deliveries and optimized sales structure[1] - Gross margin improved to 8.1% in Q3 2024, up from 2.8% in Q2 2024, due to optimized product sales structure, cost management, and economies of scale[2] - Net loss attributable to equity holders narrowed to RMB 690 million in Q3 2024, compared to RMB 990 million in the same period last year[2] - Operating cash flow for Q3 2024 was RMB 1.96 billion, with free cash flow reaching RMB 1.32 billion, and both are expected to remain positive in Q4[2] - Q3 2024 revenue reached RMB 9.86 billion, a 74.3% increase year-on-year and an 83.9% increase quarter-on-quarter[11] - Q3 2024 gross margin improved to 8.1%, up from 1.2% in Q3 2023 and 2.8% in Q2 2024[12] - Q3 2024 R&D expenses increased to RMB 780 million, up 64.9% year-on-year and 11.4% quarter-on-quarter[13] - Q3 2024 operating loss narrowed to RMB 740 million, compared to RMB 1.03 billion in Q3 2023 and RMB 1.27 billion in Q2 2024[14] - Q3 2024 free cash flow improved to RMB 1.32 billion, up from RMB 1.02 billion in Q3 2023 and RMB 1.01 billion in Q2 2024[16] Vehicle Deliveries and Sales - Vehicle deliveries in Q3 2024 totaled 86,165 units, a 61.7% quarter-over-quarter increase and a 94.4% year-over-year increase, with C-series models accounting for 78.3% of sales[3] - Net orders in October 2024 exceeded 40,000 units, with C-series products accounting for over 80% of orders[11] - October 2024 sales reached 38,177 units, a year-on-year increase of 109.7%[11] Product Development and Technology - C10 and C16 models, launched in 2024, feature advanced technologies such as the LEAP 3.0 architecture, Qualcomm SA 8295P chip, and high-performance autonomous driving capabilities[4][5] - The B10 model, unveiled at the Paris Motor Show, is set to launch in Q1 2025 and will be based on the LEAP 3.5 architecture, targeting the RMB 100,000-150,000 market segment[6] - The company completed multiple OTA updates in Q3 2024, adding and optimizing over 80 features across LEAP 2.0 and LEAP 3.0 architectures, including AI-powered voice assistants and advanced autonomous driving functions[7] - R&D efforts are focused on developing an "end-to-end AI model" for autonomous driving, with plans to expand the R&D team to 500 engineers by the end of 2024[8] Sales and Service Network - Sales channels covered 204 cities with 493 sales outlets and 362 service outlets as of September 2024[9] - 339 dealerships with sales and after-sales services opened in Europe by October 2024, with plans to expand to over 500 dealerships by 2025[10] Milestones and Achievements - The company achieved a milestone of 500,000 cumulative vehicle productions by October 17, 2024[3] Forward-Looking Statements - The company has made forward-looking statements regarding future financial conditions, strategies, plans, objectives, targets, and market developments, identified by terms such as "will," "expect," "anticipate," "aim," "future," "intend," "plan," "believe," "estimate," and "may"[19] - These forward-looking statements are based on assumptions about the company's current and future business strategies and the future business environment[19] - The forward-looking statements involve known and unknown risks, uncertainties, and other factors, some of which are beyond the company's control, potentially leading to significant differences between actual results and those implied or expressed in the statements[19] - The company does not undertake any obligation to update any forward-looking statements except as required by applicable law[19] - Shareholders and potential investors are advised to exercise caution when trading the company's shares[19]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a record monthly delivery of 38,177 vehicles in October, representing a year-on-year growth of 109.7% and a month-on-month increase of 13.1%. The total cumulative sales from January to October reached 211,000 vehicles, up 97.2% year-on-year [4][5]. - The company is in a strong new vehicle cycle with plans to launch 2-3 new products annually over the next three years, including the B10 model debuting at the Paris Auto Show. The T03 and C10 models have already been launched overseas [5][6]. - The company is expanding its marketing network under the "1+N" model, with 474 sales stores and 328 service stores covering 187 cities as of June 2024. It is also increasing investment in intelligent driving technology [5][6]. - The partnership with Stellantis aims to leverage global resources for efficient overseas expansion, with projected sales of 300,000, 500,000, and 750,000 vehicles for the years 2024 to 2026 respectively [6]. Summary by Sections Sales Performance - October deliveries reached 38,177 vehicles, marking a historical high with a year-on-year growth of 109.7% and a month-on-month growth of 13.1%. The single-month orders exceeded 42,000 vehicles, indicating strong demand [4][5]. Product Development - The company is set to launch multiple new models, including three B-series vehicles priced between 100,000 to 150,000 RMB by 2025. The T03 and C10 models are already available in international markets [5][6]. Market Expansion - The company is enhancing its marketing and service network, with significant growth in sales and service locations. The focus on intelligent driving technology is expected to bolster future sales [5][6]. Strategic Partnerships - The collaboration with Stellantis is designed to facilitate a low-investment, rapid expansion into global markets, with a focus on high profitability per vehicle sold [6].

证券时报e公司讯，据零跑汽车消息，10月交付达38177台，同比增长109.7%，连续创造月交付新高。 10月份，零跑汽车订单量同样刷新记录，单月订单量超过42000，C10、C11、C16三车型订单全部过 万。 同时，全新B系列首款车型零跑B10将于11月广州车展开启国内首秀。 ...

Investment Rating - The report maintains a "Buy" rating for Leapmotor [1] Core Views - Leapmotor is leveraging partnerships with overseas giants to enhance its international presence, particularly through the establishment of Leapmotor International in collaboration with Stellantis, which holds a 49% stake [2][19] - The company is set to launch its models C10 and T03 in Europe by September 2024, with plans for further product introductions in the coming years [2][26] - Leapmotor's strategy focuses on high efficiency across production capacity, distribution channels, and after-sales service, utilizing Stellantis's existing resources to mitigate risks and enhance operational efficiency [2][31] Summary by Sections Export Model - Leapmotor is forming a unique business model by combining Chinese and overseas markets, with Stellantis investing approximately €1.5 billion for a 20% stake in Leapmotor [19] - The establishment of Leapmotor International allows the company to exclusively export and sell vehicles in all markets outside Greater China [19] Core Advantages - Leapmotor is utilizing Stellantis's production facilities in Poland to manufacture electric vehicles, which reduces risks associated with local regulations and enhances production efficiency [2][35] - The company plans to expand its sales network to 350 outlets globally by the end of 2024, with over 200 in Europe, aiming for 500 by 2026 [2][38] - A robust after-sales service system is being developed, leveraging Stellantis's logistics network to ensure quality service for European customers [2][41] Profit Forecast and Investment Advice - The report has adjusted the net profit forecasts for Leapmotor to -3.72 billion, -0.69 billion, and 2.40 billion CNY for 2024 to 2026, reflecting a more optimistic outlook on overseas operations [3] - Leapmotor is expected to achieve a higher valuation compared to its peers due to its strategic positioning in the mainstream electric vehicle market and its clear international expansion strategy [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Viewpoints - The company has launched the new B10 model, a compact SUV targeting the 100,000 to 150,000 RMB market, with a global launch planned for next year [2][5] - The B10 features the industry's only laser radar and 8650 chip for advanced intelligent driving solutions, enhancing both highway and urban navigation capabilities [2][5] - The latest LEAP3.5 technology architecture is utilized in the B10, improving the driving experience with integrated control systems and advanced thermal management [2][5] Financial Summary - The company is projected to achieve net profits of -3.703 billion, -1.086 billion, and 1.052 billion RMB for the years 2024, 2025, and 2026 respectively, with a PE ratio of 32.97 in 2026 [5][8] - Revenue is expected to grow significantly from 16.747 billion RMB in 2023 to 79.932 billion RMB in 2026, reflecting a growth rate of 295.41% in 2023 and 47.47% in 2026 [8][9] - The company's total assets are projected to increase from 28.453 billion RMB in 2023 to 61.780 billion RMB in 2026, indicating strong growth potential [8][9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has established significant self-research capabilities in both hardware and software, enhancing its product lineup and opening growth opportunities through international expansion [3][4] - The company has formed a joint venture with Stellantis to facilitate its global strategy, leveraging Stellantis' extensive distribution network [3][4] - Revenue is projected to grow significantly, with expectations of reaching 299.06 billion RMB in 2024, 542.03 billion RMB in 2025, and 799.32 billion RMB in 2026 [4][34] Summary by Sections 1. Self-Research and Product Development - The company, founded in 2015, has developed comprehensive self-research capabilities in core technologies for electric vehicles, including the production of key components and cloud-based solutions [3][8] - The product matrix includes five pure electric models and four extended-range models, with significant delivery growth from 1.7 thousand units in 2021 to 17.3 thousand units in the first nine months of 2024, reflecting a year-on-year increase of 94.6% [8][12] 2. Revenue Growth and Financial Performance - The company’s revenue has increased from 631 million RMB in 2020 to 16.75 billion RMB in 2023, with a 52.16% year-on-year growth in the first half of 2024 [12][13] - The net loss has narrowed from 5.11 billion RMB in 2020 to 2.21 billion RMB in the first half of 2024, indicating improving financial health [12][13] 3. Market Expansion and Sales Network - The company has rapidly expanded its sales network from 49 stores in 2019 to 560 stores by 2023, covering 182 cities [16][17] - The penetration rate of new energy vehicles in China is expected to reach 60.1% by 2026, indicating a favorable market environment for the company [18][19] 4. Strategic Partnerships and Globalization - The partnership with Stellantis involves a joint venture, with Stellantis holding 51% and the company holding 49%, aimed at expanding into international markets [11][30] - The company plans to establish 500 sales points in Europe by the end of 2025 and expand into Asia-Pacific, the Middle East, Africa, and South America starting in the fourth quarter of 2024 [31][32] 5. Financial Projections and Valuation - The company is expected to achieve vehicle sales of 250,000 units in 2024, 440,000 units in 2025, and 630,000 units in 2026, with a corresponding increase in average selling price [33][34] - The projected price-to-sales ratios for 2024, 2025, and 2026 are 1.17, 0.65, and 0.44 respectively, indicating a favorable valuation compared to peers [36][37]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company plans to introduce strategic investments from government-backed capital in Jinhua, Hangzhou, and other regions, which is expected to enhance its future growth [6][7]. - The company has signed agreements for domestic share subscriptions with various government-backed funds, indicating confidence in its future development [6]. - The total expected capital increase is 2.6 billion RMB, primarily aimed at research and development of new vehicle models and upgrading existing ones [6]. Summary by Sections Event Description - On October 9, the company entered into domestic share subscription agreements with multiple government-backed entities, aiming to enhance its growth trajectory [6]. Event Commentary - The strategic investment is expected to increase the shareholding ratio by approximately 5%, with a subscription price of 40.80 HKD per share, reflecting a premium of about 29% over the closing price on October 9 [6]. - The funds raised will be allocated primarily for R&D (approximately 75%) and operational capital (approximately 25%) [6]. Domestic and Overseas Growth - The company is experiencing a strong domestic new car cycle, which is driving continuous sales growth, with expectations of reaching sales of 280,000, 500,000, and 640,000 vehicles from 2024 to 2026 [7]. - The partnership with Stellantis is expected to facilitate international expansion with a focus on low initial investment and rapid market entry [7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a record high in September sales, delivering 33,767 units, representing a year-on-year growth of 113.7%. The new models were officially launched in Europe [3] - The company is benefiting from new product launches and government policies promoting vehicle trade-ins, which have contributed to strong sales growth. The global expansion strategy is gaining momentum, with the debut of the B-series model, the Leap B10, at the Paris Auto Show [3] - The company has introduced an AI-powered voice model in collaboration with Alibaba Cloud, enhancing the smart cabin experience in its vehicles [3] - The forecast for the company's net profit attributable to shareholders for 2024-2026 is projected at -3.528 billion, -922 million, and 1.068 billion RMB, respectively, with a PE ratio of 36.72 times in 2026 [3] Financial Summary - The company reported a revenue of 16.747 billion RMB for 2023, with projections of 29.906 billion RMB for 2024, 54.203 billion RMB for 2025, and 79.932 billion RMB for 2026, indicating a revenue growth rate of 35.22% in 2023 and 78.58% in 2024 [6] - The net profit attributable to shareholders is expected to improve from -4.216 billion RMB in 2023 to 1.068 billion RMB in 2026, reflecting a significant turnaround [6] - The company's total assets are projected to grow from 28.453 billion RMB in 2023 to 62.581 billion RMB in 2026, with a corresponding increase in total liabilities [7]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a record monthly delivery of 33,767 vehicles in September, representing a year-on-year growth of 113.7% and a month-on-month increase of 11.4% [6]. - Cumulative sales for Q3 reached 86,000 vehicles, up 94.4% year-on-year and 61.7% month-on-month, while total sales from January to September amounted to 173,000 vehicles, reflecting a year-on-year increase of 94.6% [6]. - The company is experiencing a strong new vehicle cycle, with plans to launch 2-3 new products annually over the next three years, including three models from the B series in 2025 priced between 100,000 to 150,000 yuan [6]. - The company is expanding its marketing network under the "1+N" model, with 474 sales stores and 328 service centers covering 187 cities as of June 2024 [6]. - The partnership with Stellantis is expected to facilitate global expansion with low initial investment and rapid deployment, enhancing profitability through overseas sales [6]. Summary by Sections Sales Performance - September deliveries reached 33,767 units, marking a historical high with a year-on-year growth of 113.7% and a month-on-month growth of 11.4% [6]. - Cumulative sales for Q3 were 86,000 units, a 94.4% increase year-on-year, while total sales for the first nine months were 173,000 units, up 94.6% year-on-year [6]. Product Development - The company is set to launch multiple new models, including the B10 at the Paris Auto Show, with plans for 2-3 new products each year for the next three years [6]. - The T03 and C10 models have officially launched overseas and are now accepting orders [6]. Market Strategy - The company is enhancing its marketing network with a total of 474 sales stores and 328 service centers across 187 cities as of mid-2024 [6]. - The collaboration with Stellantis aims to leverage its global resources for a more efficient market entry strategy [6].

Financial Performance - For the six months ended June 30, 2024, the company's revenue was RMB 8,845.4 million, an increase of 52.2% compared to RMB 5,813.1 million for the same period in 2023[5]. - The gross profit margin improved to 1.1% for the six months ended June 30, 2024, compared to a gross loss margin of (5.9%) in the same period of 2023, with Q2 2024 gross margin reaching 2.8%[6]. - The net loss attributable to equity holders for the six months ended June 30, 2024, was RMB 2,211.7 million, a slight improvement from RMB 2,276.1 million in the same period of 2023[6]. - Operating loss for the six months ended June 30, 2024, was RMB 2,395.0 million, a slight increase of 2.6% from RMB 2,333.6 million for the same period in 2023[15]. - The adjusted net loss for the six months ended June 30, 2024, was RMB 2,016.2 million, compared to RMB 1,936.5 million for the same period in 2023[16]. - Basic and diluted loss per share for the six months ended June 30, 2024, was RMB 1.65, down from RMB 1.99 for the same period in 2023[18]. - The company reported a total loss attributable to equity holders of RMB (2,211,736) thousand for the six months ended June 30, 2024, compared to RMB (2,276,109) thousand in the same period of 2023[98]. Vehicle Deliveries and Sales - The total vehicle deliveries for the six months ended June 30, 2024, reached 86,696 units, a 94.8% increase from 44,502 units in the same period of 2023[8]. - Sales of electric vehicles and components for the six months ended June 30, 2024, amounted to RMB 8,836.3 million, up 52.3% from RMB 5,803.2 million for the same period in 2023[15]. - The C10 model has delivered 24,106 units since its launch in March 2024, while the C16 model achieved over 10,000 orders in its first month, indicating strong market demand[8]. - The company has delivered over 400,000 new energy vehicles, showcasing its strong market position and customer trust[10]. Research and Development - R&D expenses for the first half of 2024 were RMB 1,221.3 million, an increase of 48.4% compared to the same period in 2023, reflecting increased investment in new vehicle development and smart driving technology[6]. - Research and development expenses increased to RMB 1,221,285 thousand, up from RMB 823,160 thousand in the prior year, reflecting a focus on innovation[72]. - The company is developing an end-to-end intelligent driving system, with plans to launch higher-level driving features in the second half of 2024, including point-to-point commuting capabilities[11]. - The company has established a "Smart Technology Research Institute" and plans to expand its team to approximately 500 people to enhance its intelligent driving algorithms and applications[11]. Cash Flow and Financial Position - The company achieved a net cash inflow from operating activities of RMB 267.6 million for the six months ended June 30, 2024, compared to RMB 151.7 million in the same period of 2023, with expectations for further improvement in the second half of the year[7]. - The company's free cash flow for the six months ended June 30, 2024, was RMB (482.3) million, a decrease of 7.5% from RMB (448.6) million for the same period in 2023[19]. - As of June 30, 2024, the company's cash and cash equivalents amounted to RMB 16,490.9 million, a decrease of 14.9% from RMB 19,388.1 million as of December 31, 2023[19]. - The company reported a total of 1,895,000 shares granted with a purchase price of RMB 2 per share during the reporting period[43]. Market Expansion and Strategy - The company plans to launch competitive vehicle models in the next two years, capitalizing on the 50% penetration rate of new energy vehicles in China during the first half of 2024[6]. - The company plans to expand into the European market with the launch of C10 and T03 in September 2024, aiming to inject new vitality into its long-term development[10]. - The company aims to achieve positive free cash flow in the second half of 2024, supported by sufficient cash reserves and improving self-financing capabilities[7]. - The company plans to expand its sales network in Europe to over 200 locations by the end of 2024 and to 500 locations by 2026[14]. Shareholder Structure and Incentives - The total issued domestic shares are 220,552,174, and the total issued H shares are 1,116,413,915[32]. - The company has implemented two share incentive plans and a pre-IPO share option plan to reward key employees[29]. - The shareholding structure indicates that Mr. Zhu and his spouse hold a combined 70% and 30% interest in Hangzhou Xintu, respectively[32]. - The company has a total of 50,594,348 stock options available under the pre-IPO stock option plan, representing approximately 3.78% of the issued share capital as of the report date[47]. Compliance and Governance - The company has adopted a standard code for securities trading by directors, ensuring compliance with relevant regulations[59]. - The company has implemented policies for handling and disclosing insider information, limiting access to relevant personnel only[59]. - The company has not separated the roles of Chairman and CEO, believing that this structure enhances internal leadership consistency[60]. - The company confirmed that all directors complied with the standard code during the reporting period[59]. Future Outlook - The company plans to raise up to RMB 600 million through share subscriptions for R&D investments, marketing, and general corporate purposes[26]. - The company is focusing on global expansion, particularly in the European market, as part of its long-term strategy to become a global electric vehicle manufacturer[55]. - The company plans to utilize the proceeds within three years from the completion date[54]. - The company aims to align employee interests with those of shareholders through the stock option plan, enhancing long-term development[47].