Core Viewpoint - The recent quarterly earnings reports from electric vehicle manufacturers, particularly Xiaopeng Motors and Leap Motor, have raised concerns in the market, leading to significant stock price declines. The automotive industry is expected to undergo changes due to factors such as price reductions in electric vehicles and the reintroduction of vehicle purchase taxes in 2026 [2][4][9]. Company Performance - Xiaopeng Motors reported a revenue of 20.38 billion yuan for Q3, a year-on-year increase of nearly 100%, with total deliveries of approximately 116,000 units, up 149.3% year-on-year. However, the company incurred a net loss of 380 million yuan, although this represented a narrowing of losses compared to previous periods. The forecast for Q4 deliveries is between 125,000 and 132,000 units, indicating a year-on-year growth of 36.6% to 44.3% [5][6]. - Leap Motor achieved a revenue of 19.45 billion yuan in Q3, nearly doubling year-on-year, and reported a net profit of 150 million yuan, marking a return to profitability despite an 8% decline from the previous quarter. The total delivery volume for Q3 was 173,800 units, with October deliveries reaching 70,300 units [5][6]. - Geely Automobile, as a traditional automaker, reported Q3 revenue of 89.2 billion yuan, a 27% increase year-on-year, and a net profit of 3.82 billion yuan, up 59% year-on-year. The total sales volume for Q3 was 761,000 units, reflecting a 43% year-on-year growth [5][6]. Market Trends and Future Outlook - The stock prices of Xiaopeng and Leap Motor fell significantly after their earnings reports, with Xiaopeng's stock dropping by 10.47% to 85.85 HKD, while Geely's stock saw a smaller decline of 1.16% [4][8]. - Analysts suggest that the automotive sector is experiencing a weak performance, with declining sales data and concerns over the impact of the vehicle purchase tax reinstatement in 2026. This may lead to a slowdown in growth for the industry, prompting companies to enhance sales volumes to mitigate margin pressures [6][10]. - The average price reduction for electric vehicles in October was 18,000 yuan, a decrease of 11.1%, indicating a competitive pricing environment as companies prepare for the upcoming tax changes [9][10].

Market Overview - The Hong Kong stock market indices experienced declines, with the Hang Seng Tech Index falling by 0.69%, reaching a new low since early September. The Hang Seng Index and the Hang Seng China Enterprises Index decreased by 0.38% and 0.26%, respectively [1][2]. Technology Sector - Major technology stocks mostly declined, with Xiaomi dropping nearly 5%, Kuaishou down over 1%, and slight declines in JD.com, Meituan, Baidu, and Tencent. Alibaba saw an increase of over 1% [2][4][5]. New Energy Vehicle Sector - Stocks in the new energy vehicle sector fell, including Li Auto, NIO, Chery, Beijing Automotive, BYD, and Leap Motor [6]. Semiconductor Sector - Semiconductor stocks experienced declines, with companies like Shanghai Fudan, Jingmen Semiconductor, and Zhongxing Communications reporting losses [7][8]. Gold Sector - Gold stocks led the market gains, with China Gold International rising over 8%. Other gold-related stocks also saw increases, driven by expectations of significant gold purchases by global central banks [9][10]. Military Industry - Military stocks performed well, with China Shipbuilding Industry rising over 9%. Analysts expect the military industry to enter an upward cycle, supported by recent quarterly reports indicating a narrowing decline in performance [11][12]. Oil Sector - Oil stocks saw an uptick, with China Petroleum & Chemical Corporation increasing nearly 3%. This rise is attributed to recent increases in crude oil futures prices [13]. Lithium Battery Sector - Lithium battery stocks gained, with Tianqi Lithium rising nearly 3%. The market for lithium carbonate has shown significant recovery, with prices expected to rise further due to increasing demand [15][16]. Market Sentiment - The market sentiment remains cautious, with expectations of continued adjustments in the Hong Kong stock market due to weak macro liquidity and corporate earnings forecasts. Investors are advised to wait for clearer signals from U.S. monetary policy and mainland economic data before seeking rebound opportunities [21].

Core Insights - The recent performance of electric vehicle manufacturers, particularly Xiaopeng and Li Auto, has raised concerns in the market, leading to significant stock price declines following their earnings reports [1][2][4] - The automotive industry is expected to undergo changes due to the reintroduction of vehicle purchase tax for electric vehicles starting in 2026, which may affect consumer choices and market dynamics [5][6][7] Company Performance - Xiaopeng Motors reported a revenue of 20.38 billion yuan for Q3, a year-on-year increase of nearly 100%, but incurred a net loss of 380 million yuan, although this loss narrowed compared to previous periods [2][3] - Li Auto achieved a revenue of 19.45 billion yuan in Q3, nearly doubling year-on-year, with a net profit of 150 million yuan, but experienced an 8% decline in net profit compared to the previous quarter [2][3] - Geely's Q3 revenue reached 89.2 billion yuan, a 27% increase year-on-year, with a net profit of 3.82 billion yuan, up 59% year-on-year, and total sales of 761,000 units, a 43% increase [3] Market Dynamics - Xiaopeng's stock price fell by 10.47% to 85.85 HKD, marking a cumulative decline of over 20% since November 12, while Geely's stock fell by 1.16% to 17 HKD, resulting in a market capitalization of 172 billion HKD [2] - The average selling price of Xiaopeng vehicles decreased by 0.8 million yuan to 156,000 yuan, with a gross margin of 13.1%, slightly below market expectations [3] - The automotive sector is experiencing a weak performance overall, with concerns about declining sales data and the impact of upcoming policy changes on growth rates [4][6] Future Outlook - The reintroduction of the vehicle purchase tax in 2026 is expected to slow down the growth of the passenger vehicle market, potentially leading to increased promotional activities among electric vehicle manufacturers [6][7] - Analysts suggest that the automotive industry will see a differentiation among companies, with stronger competitors likely to emerge as the market adjusts to the new tax environment [6][7]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 89.40 [1][5] Core Insights - The company reported a revenue of RMB 19.45 billion for Q3 2025, representing a year-over-year increase of 97.3% and a quarter-over-quarter increase of 36.7% [1] - The company achieved a net profit of RMB 150 million in Q3 2025, continuing its trend of profitability [1] - The company is expected to experience a strong new car cycle from 2025 to 2026, with anticipated revenue growth driven by strategic partnerships and overseas expansion [1][4] Summary by Sections Quarterly Performance - In Q3 2025, the company sold 174,000 vehicles, marking a historical high with a month-over-month increase in sales [2] - The sales structure improved, with the B/C platform accounting for 56% and 35% of sales, respectively, while the low-priced T03 model's share decreased to 9% [2] - The gross margin for Q3 was 14.50%, reflecting a year-over-year increase of 6.40 percentage points, attributed to scale effects and cost management [3] Growth Prospects - The company is set to launch multiple new models in 2026, supporting a sales target of one million units [4] - The overseas market is expanding rapidly, with 38,000 units exported from January to September 2025 and a significant increase in overseas orders [4] - Strategic collaborations are expected to contribute to revenue growth, including partnerships with Stellantis and FAW [4] Financial Forecast - The company is projected to achieve sales of 640,000, 1,030,000, and 1,416,000 vehicles from 2025 to 2027, with corresponding revenues of RMB 74.5 billion, RMB 128.7 billion, and RMB 170.7 billion [5] - The net profit is expected to grow significantly, reaching RMB 11.3 million, RMB 52.4 million, and RMB 82.5 million over the same period [5] - The target price reflects a 20% premium based on the anticipated strong new car cycle and overseas production localization [5]

Summary of Leap Motor's Conference Call Company Overview - **Company**: Leap Motor - **Industry**: Automotive (Electric Vehicles) Key Financial Performance - **Q3 Profit**: Achieved a profit of 150 million yuan, slightly down from 163 million yuan in Q2, which included approximately 400 million yuan in government subsidies [4][6] - **Revenue**: Total revenue for Q3 was 19.45 billion yuan, with around 250 million yuan from carbon credit income [4][6] - **Gross Margin**: Overall gross margin reached 14.5%, with vehicle gross margin at approximately 13%, an increase from Q2 due to new model launches improving average selling prices (ASP) [2][4] Future Projections - **Q4 Expectations**: Anticipated vehicle gross margin to continue rising, with expected sales of 200,000 units, up from 174,000 units in Q3. Carbon credit income is projected to be around 500 million yuan, significantly contributing to profits [2][6] - **2025 Profit Target**: The company aims for a profit of 500 to 1,000 million yuan for the year, with Q4 expected to be the first quarter of profitability for the vehicle business [2][6] Market Performance - **Domestic Market**: Strong performance with multiple models selling over 10,000 units monthly. Plans to launch four new models in the coming year, including D19, A10, A05, and B series MPVs to expand market coverage [2][7] - **Export Growth**: Continued growth in exports, with over 10,000 overseas orders in September and a total of over 25,000 orders expected in November and December. Projected export volume to exceed 50,000 units in 2025 and 100,000 units in 2026 [8][9][11] Cost Structure - **Expense Growth**: Administrative and R&D expenses increased due to company expansion and hiring, while sales expenses remained stable. Q4 expense ratio is expected to decrease to around 13% [5][6] Strategic Partnerships - **Collaboration with FAW**: Leap Motor has partnered with FAW to develop overseas vehicle projects, expected to start mass production in the second half of next year, which will positively impact profits [3][12] Valuation Insights - **Market Valuation**: Based on a profit guidance of 5 billion yuan for next year and a 20x P/E ratio, the market capitalization could exceed 120 billion yuan. Current market cap is around 70 billion yuan, indicating significant investment opportunities [3][13][14] Additional Insights - **Inventory and Demand**: Low inventory levels in overseas markets (1,300 to 1,400 units) with monthly orders exceeding 10,000 units indicate strong consumer demand rather than stockpiling by dealers [9][10] - **Model Contributions**: T03, C10, and B10 are major contributors to sales, with the new Lafa 5 expected to enhance sales in the European market [10][11]

Core Viewpoint - Leap Motor, the second profitable new energy vehicle manufacturer in China, reported strong financial performance for Q3 2025, achieving a revenue of 19.45 billion yuan, a year-on-year increase of 97.3%, and a net profit of 1.5 billion yuan, marking a significant turnaround from losses in the previous year [1][4][5]. Financial Performance - In Q3 2025, Leap Motor's revenue reached 19.45 billion yuan, nearly hitting the 20 billion yuan mark, setting a new quarterly record [4]. - The company's net profit for Q3 2025 was 1.5 billion yuan, a substantial improvement from a loss of 6.9 billion yuan in the same quarter last year [5][6]. - The revenue for the first half of 2025 was 24.25 billion yuan, reflecting a year-on-year growth of 174.15% [5]. Sales and Production - Leap Motor sold 173,900 vehicles in Q3 2025, representing a year-on-year increase of 101.77% and a quarter-on-quarter increase of 29.63% [6]. - In October 2025, the company achieved a monthly sales milestone of over 70,000 units, becoming the only new energy vehicle brand in China to surpass this figure [8]. - As of November 15, 2025, the total vehicle sales reached 500,000 units, exceeding the annual target ahead of schedule [8]. Research and Development - Leap Motor invested 12.1 billion yuan in R&D during Q3 2025, contributing to the development of new technologies and models [2][12]. - The total R&D expenditure for the first three quarters of 2025 was 31.04 billion yuan, surpassing the total for the entire year of 2024 [12]. Financial Health - As of the end of Q3 2025, Leap Motor had approximately 33.9 billion yuan in cash and cash equivalents, ensuring sufficient funds for R&D and market expansion [3][12]. - The net operating cash flow for Q3 2025 was 4.88 billion yuan, indicating strong cash generation capabilities [12]. Market Expansion - Leap Motor's sales service network expanded to cover 292 cities with 866 sales outlets, including 367 Leap Centers and 499 experience centers [11]. - The company aims to achieve a sales target of 1 million vehicles in 2026, supported by its growing brand influence and extensive sales network [10][11]. Export Performance - In Q3 2025, Leap Motor exported 17,400 vehicles, with a total of 37,800 units exported in the first nine months of 2025 [9].

ZHEJIANG LEAPMOTOR TECHNOLOGY CO., LTD. 浙江零跑科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：9863） | 與本代表委任表格 | 股內資股 | | --- | --- | | （附註1） 有關的股份數目 | 股H股 | 於2025年12月8日（星期一）舉行的 臨時股東大會適用的代表委任表格 本人╱吾等 （附註2） 地址為 為浙江零跑科技股份有限公司（「本公司」）已發行股 本中內資股╱H股的登記持有人，茲委任大會主席 （附註3） 或 地址為 為本人╱吾等的受委代表，代表本人╱吾等出席本公司謹訂於2025年12月8日（星期一）下午15:00假座中國浙江省杭州市濱江區物 聯網街451號芯圖大廈1樓會議中心5號會議室舉行的臨時股東大會（「臨時股東大會」）（及其任何續會），並按下列指示於臨時股東 大會上代表本人╱吾等行動及投票。 請在適當空欄內填上「✓」號，以表明 閣下表決時的投票意願 （附註4） 。 | | 普通決議案 | 贊成 | 反對 | 棄權 | | --- | --- | --- | --- | --- | | 1. | 審議及批准關於更換 ...

（股份代號：9863） 臨時股東大會通告 茲通告浙江零跑科技股份有限公司（「本公司」）謹訂於2025年12月8日（星期一） 下午15:00 假座中國浙江省杭州市濱江區物聯網街451號芯圖大廈1樓會議中心5號會議 室舉行臨時股東大會（「臨時股東大會」），以審議並酌情通過下列決議案（不論有否修 訂）： 普通決議案 ZHEJIANG LEAPMOTOR TECHNOLOGY CO., LTD. 浙江零跑科技股份有限公司 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 （於中華人民共和國註冊成立的股份有限公司） 「動議： 待香港聯合交易所有限公司（「聯交所」）上市委員會批准因行使根據本公司 新購股權計劃（「2025年購股權計劃」）（其規則載於註有「A」字樣的文件， 該文件已提呈大會並由大會主席簽署，以資識別）可能授出的任何購股權而 可能將予發行及配發的本公司H股（「H股」）上市及買賣後及在其規限下， 批准及採納2025年購股權計劃及購股權計劃授權限額（定義見 ...

此乃要件 請即處理 閣下如對本通函任何方面或將採取的行動有任何疑問，應諮詢股票經紀或其他註冊證券交易商、銀行經 理、律師、專業會計師或其他專業顧問。 閣下如已售出或轉讓名下全部浙江零跑科技股份有限公司的股份，應立即將本通函連同隨附的代表委任表 格轉交買方或承讓人，或經手買賣或轉讓的銀行、股票經紀或其他代理商，以便轉交買方或承讓人。 香港交易及結算所有限公司及香港聯合交易所有限公司對本通函的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不會就本通函全部或任何部份內容而產生或因倚賴該等內容而引致的任何 損失承擔任何責任。 ZHEJIANG LEAPMOTOR TECHNOLOGY CO., LTD. 浙江零跑科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：9863） 建議更換非執行董事 上調公司及下屬分╱子公司向銀行申請綜合信貸規模 建議採納2025年購股權計劃 上調為全資及控股子公司提供擔保額度 建議修訂公司章程 及 臨時股東大會通告 浙江零跑科技股份有限公司謹訂於2025年12月8日（星期一）下午15:00假座中國浙江省杭州市濱江區物聯 網街451號芯圖大廈1樓會議 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a quarterly revenue of 19.45 billion yuan in Q3 2025, representing a year-on-year increase of 97.3% and a quarter-on-quarter increase of 36.7% [7] - The company reported a net profit attributable to equity holders of 150 million yuan in Q3 2025, a significant improvement from a loss of 690 million yuan in Q3 2024 and a profit of 160 million yuan in Q2 2025 [7] - The company’s Q3 sales volume reached 174,000 units, with a year-on-year increase of 107.3% and a quarter-on-quarter increase of 29.6% [7] - The average selling price (ASP) for the company was 112,000 yuan, showing a year-on-year decrease of 4.8% but a quarter-on-quarter increase of 5.4% [7] - The gross margin for Q3 was 14.5%, reflecting a year-on-year increase of 6.4 percentage points and a quarter-on-quarter increase of 0.9 percentage points [7] - The company’s sales, management, and R&D expense ratios improved to 4.9%, 3.2%, and 6.2% respectively, compared to the previous year [7] - The company has expanded its sales service network to cover 292 cities with 866 sales outlets as of the end of September 2025 [7] - The company exported 17,000 vehicles in Q3 2025, a quarter-on-quarter increase of 36% [7] - The company plans to launch its Lafa5 model overseas in Q2 2026 and is actively pursuing local production capabilities in Malaysia and Europe [7] Financial Projections - The total revenue forecast for the company is projected to reach 65.8 billion yuan in 2025, with a year-on-year growth of 104.58% [1] - The net profit attributable to the parent company is expected to be 693.83 million yuan in 2025, with a significant year-on-year increase of 124.60% [1] - The earnings per share (EPS) is projected to be 0.49 yuan in 2025, with a P/E ratio of 103.14 [1] - The company’s gross margin is expected to improve to 15% in 2025 [8] - The company’s asset-liability ratio is projected to be 77.45% in 2025 [8]