零跑汽车(09863) - 2025 - 中期业绩

Summary for the Six Months Ended June 30, 2025 Leapmotor achieved significant operational and financial breakthroughs in H1 2025, including its first semi-annual net profit, record gross margin, and leading vehicle deliveries among new energy brands Operational Highlights The company achieved its first semi-annual net profit and record-high gross margin, leading in vehicle deliveries among new energy brands - In H1 2025, the company's semi-annual net profit turned positive for the first time, reaching RMB 0.3 billion, becoming the second Chinese new energy vehicle startup to achieve semi-annual profitability[7] - In H1 2025, the company's gross margin reached 14.1%, a semi-annual record since its inception[7] - In H1 2025, the company's total vehicle deliveries were 221,664 units, ranking first among Chinese new energy vehicle brands[7] - In July 2025, deliveries exceeded 50,129 units, maintaining the top position among Chinese new energy vehicle brands for five consecutive months, and being the only new energy brand with monthly deliveries over 50,000 units in 2025[7] Financial Highlights Revenue and gross margin saw substantial growth, leading to a turnaround in net profit and significant increase in operating cash flow 2025 H1 Key Financial Data | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Revenue | 24.25 | 8.85 | 174.0% | | Gross Margin | 14.1% | 1.1% | 13 percentage points | | Net Profit Attributable to Equity Holders | 0.03 | (2.21) | Turnaround to Profit | | Adjusted Net Profit (Non-IFRS) | 0.33 | (2.02) | Turnaround to Profit | | Net Cash from Operating Activities | 2.86 | 0.27 | 960.0% | | Free Cash Flow | 0.86 | (0.48) | Turnaround to Profit | | Cash and Cash Equivalents and On-Hand Funds (as of June 30) | 29.58 | N/A | N/A | - Revenue growth was primarily driven by increased vehicle and spare parts deliveries, strategic collaborations, carbon credit trading income, and growth in related service revenue[7] - Gross margin improvement was mainly attributed to economies of scale from increased sales, continuous cost management, optimized product mix, and other business income[7] Sales Performance The company achieved record-high vehicle deliveries in H1 2025, maintaining its leading position among new energy vehicle brands - Total vehicle deliveries in H1 2025 reached 221,664 units, a 155.7% year-on-year increase, ranking first among Chinese new energy vehicle brands[10] - July 2025 deliveries reached 50,129 units, maintaining the top position among Chinese new energy vehicle brands for five consecutive months, and being the only new energy brand with monthly deliveries exceeding 50,000 units in 2025[10] - As of June 18, 2025, cumulative deliveries surpassed the 800,000-unit milestone[10] - The C10 achieved over 100,000 global deliveries within 13 months of its launch, consistently ranking first in sales among new energy brand mid-size SUVs for three consecutive months[10] - The B10's deliveries exceeded 10,000 units in its second month on the market, becoming Leapmotor's fastest product to reach this milestone[10] Product Updates and Technology Architecture The company launched new B-platform models and updated C-platform models, all based on the LEAP 3.5 architecture, integrating advanced intelligent features - In 2025, two new B-platform models (B10, B01) and three updated C-platform models (New C10, New C16, All-new C11) were launched, all built on the LEAP 3.5 architecture[9][11][12] - The Leapmotor B10 (RMB 120,000-class SUV) launched on April 10, 2025, featuring end-to-end assisted driving, LiDAR, and a Qualcomm 8650 chip, winning multiple international design and performance awards[9] - The Leapmotor B01 (high-quality intelligent sedan for the mainstream market) launched on July 24, 2025, with over 10,000 orders in 72 hours, targeting young individuals and families[10][11] - The New C10 launched on May 15, 2025, bringing high-end features like 800V high-voltage platform, LiDAR, and end-to-end assisted driving to the RMB 140,000-class market[11] - The New C16 launched on June 18, 2025, as the only "ultra-comfortable intelligent long-range SUV" in its class to adopt CTC2.0 and 800V solutions[11] - The All-new C11 launched on July 10, 2025, with nearly 50% core component upgrades and over 110 experience enhancements, bringing AR-HUD, LiDAR, and 800V supercharging to the mainstream market[12] R&D Progress The company advanced its LEAP 3.5 architecture, significantly increased investment in intelligent driving R&D, and achieved breakthroughs in AR-HUD, electric drive systems, and CTC battery technology - The LEAP 3.5 technology architecture was released on March 10, 2025, featuring a Qualcomm 8650/8295 chip combination, achieving cockpit-driving integration and the world's most integrated central domain controller[13] - Investment in intelligent driving R&D continued to increase in H1 2025, with both the intelligent driving team size and computing power resources increasing by nearly 100%[13] - City commuting navigation assistance based on end-to-end algorithms was mass-produced for the first time, and the Qualcomm 8650 domain control assisted driving solution was developed and applied to B-platform models in just six months[13] - Plans for H2 2025 include increasing R&D resources for end-to-end and VLA technologies, aiming to achieve city NOA combined assisted driving capabilities by year-end[13] - The fully self-developed AR-HUD was first applied to the All-new C11, featuring the largest 60-inch AR-HUD in its class, with future coverage planned for D-platform and main C-platform models[14] - The electric drive system's CLTC operating efficiency increased by approximately 1%, maintaining industry-leading overall efficiency; mass production of the new-generation compressor project achieved best-in-class NVH performance[14] - Leapmotor's CTC battery was among the first to pass the new national standard (GB 38031-2025) for power batteries, obtaining a "safety pass" a year in advance, with over 250,000 sets of CTC2.0 batteries already installed[15] Sales Channels and Digital Marketing The company expanded its sales network, significantly improved single-store efficiency, and implemented a comprehensive digital marketing system to enhance user engagement - As of June 30, 2025, the sales and service network covered 286 cities, adding 88 new cities, totaling 806 sales stores and 461 service stores[16] - Single-store efficiency increased by over 50% year-on-year in H1, attributed to the "1+N" model and "Golden Seed" program[16] - Plans for H2 2025 include deepening channel layout in first and second-tier cities, expanding into untapped cities, and projecting a 90% city coverage rate by year-end[16] - A full-lifecycle digital marketing and service system was deployed, achieving 360-degree full reach across the user's entire journey and all scenarios[17] - Core retail metrics significantly improved in H1 2025: potential customer conversion rate increased by 2 percentage points, in-store conversion rate increased by 5 percentage points; store operational efficiency grew by 27% year-on-year[17] Service Strategy The "Three Fast, Two Save" strategy significantly improved service response, vehicle repair, and spare parts delivery, enhancing user satisfaction - In H1 2025, the "Three Fast, Two Save" strategy achieved significant results: fast service response (99.5% response rate within 15 minutes, a 9% year-on-year increase), fast vehicle repair (98.3% one-time repair rate, a 4.4% sequential increase), and fast spare parts delivery (91.5% delivery rate within 48 hours, a 14.3% sequential increase)[18] - In H2 2025, the company will continue to strengthen the "Three Fast, Two Save" core service philosophy, enhancing user service as a strategic competitive advantage through systematic capability building[18] Capital and Strategic Cooperation The company signed a strategic cooperation with FAW for joint development and parts, and is progressing with a private placement of domestic shares - On March 3, 2025, a Strategic Cooperation Memorandum of Understanding was signed with China FAW, initiating joint development of new energy passenger vehicles and component cooperation, with the first collaborative vehicle project already launched[19] - Both parties will further explore the feasibility of deepening capital cooperation to achieve full industry chain resource synergy[19] - On March 26, 2025, the China Securities Regulatory Commission approved Leapmotor's private placement of domestic shares; on June 25, the annual general meeting approved a resolution to amend the company's articles of association to increase registered capital, with related matters progressing steadily[19] Global Expansion The company achieved leading export volumes among new energy brands, expanded its international sales network, and initiated local assembly projects in key markets - In H1 2025, exports reached 20,375 units, ranking first among new energy vehicle brands[20] - In June, Leapmotor's market share in the German BEV market exceeded 1%; in July, over 4,000 European users placed orders, setting a new historical record[20] - The first batch of B10s was officially shipped to Europe in July 2025 and will be officially launched at the Munich Motor Show in September[21] - The T03 achieved first place in efficiency at the 2025 ECOBEST European Range Challenge and was ranked as the number one new brand in German car dealer satisfaction in the "2025 German Dealer Satisfaction Survey"[21] - On June 12, 2025, right-hand drive versions of the C10 and T03 officially launched in the Hong Kong market, with the 1,500th Leapmotor Center globally opening in Hong Kong[21] - As of the end of June 2025, Leapmotor International B.V. established over 600 sales and after-sales service outlets in approximately 30 international markets including Europe, the Middle East, Africa, and Asia-Pacific[21] - On April 18, 2025, the Leapmotor C10 Malaysia local assembly project was launched with Stellantis Group, and the first C10-OTS vehicle completed assembly and rolled off the production line[21] - Plans include establishing a European local production base by the end of 2026 to further advance global market expansion[22] Environmental, Social, and Governance ("ESG") The company published its third ESG report, maintained an MSCI ESG AA rating, and actively engaged in social welfare and carbon credit initiatives - In H1 2025, the third ESG report was released, and the company received an MSCI ESG AA rating for the second consecutive year[23] - On March 26, 2025, a donation of RMB 5 million was made to the Zhejiang Provincial Disabled Persons' Welfare Foundation to support technology-assisted public welfare projects for people with physical disabilities in Zhejiang Province[23] - Actively exploring market-valued carbon credit transfers, committed to achieving a win-win situation for both economic and environmental benefits[23] Management Discussion and Analysis This section analyzes H1 2025 financial performance, detailing improvements in revenue, costs, profit, and cash flow, alongside liquidity, capital resources, and risk management Financial Analysis A detailed review of revenue, costs, and profit metrics, highlighting significant improvements in gross margin and a turnaround to operating profit Revenue Total revenue and electric vehicle sales experienced substantial growth, primarily driven by increased deliveries and strategic collaborations Revenue Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 24.25 | 8.85 | 174.0% | | Electric Vehicle and Component Sales | 23.10 | 8.84 | 161.4% | - Total revenue growth was primarily due to increased vehicle and spare parts deliveries, strategic collaborations, carbon credit trading income, and growth in related service revenue[24] - Electric vehicle and component sales growth was mainly due to increased vehicle and spare parts deliveries[24] Cost of Sales Cost of sales increased due to higher sales volume, partially offset by ongoing cost management efforts Cost of Sales Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Cost of Sales | 20.82 | 8.75 | 137.9% | - The increase in cost of sales was primarily due to higher sales volume, partially offset by continuous cost management efforts[25] Gross Profit and Gross Margin Gross profit and gross margin significantly improved, driven by increased sales volume, cost management, and product mix optimization Gross Profit and Gross Margin Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Gross Profit | 3.43 | 0.10 | 3330.0% | | Gross Margin | 14.1% | 1.1% | 13 percentage points | - Gross margin improvement was primarily due to economies of scale from increased sales, continuous cost management, optimized product mix, and other business income[26] Selling Expenses Selling expenses increased due to higher advertising and promotional activities and an expanded sales force Selling Expenses Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Selling Expenses | 1.41 | 0.90 | 56.7% | - The increase in selling expenses was primarily due to increased advertising and promotional efforts and a larger sales force[27] Administrative Expenses Administrative expenses increased, mainly attributed to the growth in administrative personnel Administrative Expenses Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Administrative Expenses | 0.79 | 0.44 | 79.5% | - The increase in administrative expenses was primarily due to an increase in administrative personnel[28] R&D Expenses R&D expenses increased due to intensified investment in research and development and an expanded R&D team R&D Expenses Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | R&D Expenses | 1.89 | 1.22 | 54.9% | - The increase in R&D expenses was primarily due to intensified R&D investment and an increase in R&D personnel[29] Operating Profit Operating profit significantly improved, primarily driven by a substantial increase in gross profit from rapidly growing sales volume Operating Profit Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Improvement | | :--- | :--- | :--- | :--- | | Operating Profit | (0.09) | (2.40) | 96.3% | - Operating profit significantly improved primarily due to a substantial increase in gross profit driven by rapidly growing sales volume[30] Net Finance Income Net finance income decreased, primarily due to a reduction in interest income Net Finance Income Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Decrease | | :--- | :--- | :--- | :--- | | Net Finance Income | 0.11 | 0.19 | 42.1% | - The decrease in net finance income was primarily due to a reduction in interest income[31] Share of Profit of Associates, Net Share of profit of associates improved, mainly due to enhanced performance of associated companies Share of Profit of Associates, Net Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Improvement | | :--- | :--- | :--- | :--- | | Share of Profit of Associates, Net | 0.01 | (0.01) | 200.0% | - The improvement in share of profit of associates was primarily due to enhanced performance of associated companies[32] Net Profit and Adjusted Net Profit The company achieved a turnaround to net profit and adjusted net profit, reflecting significant financial performance improvement Net Profit and Adjusted Net Profit Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Change | | :--- | :--- | :--- | :--- | | Net Profit | 0.03 | (2.21) | Turnaround to Profit | | Adjusted Net Profit (Non-IFRS) | 0.33 | (2.02) | Turnaround to Profit | Basic and Diluted Earnings Per Share Basic and diluted earnings per share turned positive, reflecting the company's overall profitability improvement Basic and Diluted Earnings Per Share Comparison | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | 0.02 | (1.65) | Liquidity and Capital Resources The company maintains strong liquidity, with sufficient capital resources to support ongoing operations and expansion plans, while managing debt and cash flows effectively Financial Position The company holds substantial cash and equivalents, deemed sufficient for its operational and expansion needs - As of June 30, 2025, cash and cash equivalents, restricted cash, financial assets at fair value through profit or loss, and bank time deposits totaled RMB 29.58 billion[35] - The company believes its existing capital resources are sufficient to support ongoing operations and business development expansion plans[35] Interest Expenses on Bank and Other Borrowings Interest expenses on bank and other borrowings increased year-on-year Interest Expenses on Bank and Other Borrowings Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Interest Expenses | 50 | 30 | 66.7% | Borrowings Total borrowings increased, comprising both non-current and current portions Total Borrowings Comparison | Indicator | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | | :--- | :--- | :--- | | Total Borrowings | 2.67 | 2.37 | Capital Gearing Ratio The company's capital gearing ratio was negative as of June 30, 2025 - As of June 30, 2025, the Group's capital gearing ratio was negative, calculated as net debt divided by total capital[38] Net Cash Generated from Operating Activities Net cash generated from operating activities significantly increased, driven by higher deliveries, improved gross margin, and optimized cash flow management Net Cash from Operating Activities Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Increase | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 2.86 | 0.27 | 2.59 | - The improvement in operating cash flow was primarily due to increased product deliveries, optimized gross margin, and enhanced operating cash flow management[39] Free Cash Flow Free cash flow improved significantly, primarily due to increased net cash generated from operating activities Free Cash Flow Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Increase | | :--- | :--- | :--- | :--- | | Free Cash Flow | 0.86 | (0.48) | 1.34 | - The improvement in free cash flow was primarily due to increased net cash generated from operating activities[40] Treasury Policy The company may seek equity or debt financing if cash requirements exceed available cash and equivalents - If the company determines its cash requirements exceed the amount of cash and cash equivalents on hand, it may seek to issue equity or debt securities or obtain credit financing[41] Pledge of Assets Restricted deposits increased, primarily used as collateral for bank acceptance bills, borrowings, and guarantees for supplier contracts Restricted Deposits Comparison | Indicator | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | Year-on-Year Increase | | :--- | :--- | :--- | :--- | | Restricted Deposits | 4.94 | 1.98 | 149.5% | - Restricted deposits are primarily used for bank acceptance bills, bank loan collateral, customs guarantees, and guarantees for contracts with the Group's suppliers[42] - The company pledges certain financial assets at fair value through other comprehensive income, land use rights, and property, plant, and equipment as collateral for borrowings and the issuance of bank acceptance bills[42] Significant Investments and Capital Asset Plans The company had no significant investments or specific plans for major capital asset acquisitions during the reporting period - For the six months ended June 30, 2025, the company had no significant investments (including any investments in investee companies whose value accounted for 5% or more of the Group's total assets as of June 30, 2025)[43] - As of June 30, 2025, except as otherwise disclosed, the Group had no specific plans for significant investments and acquisitions of capital assets[44] Capital Commitments and Capital Expenditures Capital commitments primarily relate to property, plant, and equipment acquisitions, with capital expenditures focused on new factory equipment and production lines Capital Commitments and Capital Expenditures | Indicator | June 30, 2025 (RMB billion) | 2025 H1 (RMB billion) | | :--- | :--- | :--- | | Capital Commitments (Acquisition of Property, Plant and Equipment) | 5.34 | N/A | | Capital Expenditures | N/A | 2.00 | - Capital expenditures were primarily for investments in new factory machinery and equipment and the introduction of new vehicle production lines in existing factories[45] Contingent Liabilities The company had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the company had no significant contingent liabilities[46] Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures The company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[47] Non-IFRS Measures The company uses adjusted net profit (non-IFRS) to provide a clearer view of operational performance by excluding share-based payment expenses - The company uses adjusted net profit (non-IFRS) as an additional financial measure to eliminate the potential impact of share-based payment expenses, aiding in the comparison of operating performance[48] Reconciliation of Net Profit to Adjusted Net Profit | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | | :--- | :--- | :--- | | Net Profit | 0.03 | (2.21) | | Add: Share-based Payment Expenses | 0.30 | 0.19 | | Adjusted Net Profit (Non-IFRS) | 0.33 | (2.02) | Risk Management Management assessed key risks, including foreign exchange and interest rate exposures, and continues to monitor them without current hedging measures Foreign Exchange Risk The company primarily operates in RMB and currently faces no significant direct foreign exchange risk, with no hedging instruments held - The company uses RMB as its functional currency and currently does not incur significant direct foreign exchange risk[50] - As of June 30, 2025, the company did not hold any financial instruments for hedging purposes[50] Interest Rate Risk The company's interest rate risk primarily stems from borrowings, with no hedging instruments currently employed - The Group's interest rate risk primarily arises from borrowings, with floating-rate borrowings exposing the Group to cash flow interest rate risk and fixed-rate borrowings exposing it to fair value interest rate risk[51] - For the six months ended June 30, 2025, the Group did not use any interest rate swap contracts or other financial instruments to hedge its interest rate risk[51] Employees and Remuneration Policy As of June 30, 2025, Leapmotor employed 21,656 full-time staff, offering comprehensive training, competitive compensation, statutory benefits, and share incentive plans - As of June 30, 2025, the Group had 21,656 full-time employees, most of whom are located in Zhejiang Province, China[52] - The Group primarily recruits employees through campus recruitment fairs, online recruitment, internal referrals, and recruitment agencies, providing safety awareness, quality awareness, and corporate culture training for R&D and manufacturing staff, and implementing a comprehensive training system for all employees[52] - The Group offers competitive remuneration and a dynamic work environment, participating in various government statutory employee welfare plans, including social insurance (pension, medical, unemployment, work injury, and maternity insurance) and housing provident fund, in addition to purchasing employer liability insurance and supplementary commercial health insurance[52] - To recognize the contributions of key employees and incentivize their further development of the company, two share award schemes and one pre-IPO share option scheme have been adopted[52] Other Corporate Governance Information The company adhered to corporate governance codes, with the Board reviewing the combined Chairman/CEO role, and reported no listed securities transactions or interim dividends, while ensuring director compliance and audit committee oversight Purchase, Redemption or Sale of Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor did they hold any treasury shares[53] Compliance with Corporate Governance Code The company complied with the Corporate Governance Code, with the exception of the combined Chairman and CEO roles, which the Board deems efficient - The company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the reporting period and up to the date of this announcement, except for code provision C.2.1[54] - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Zhu Jiangming; the Board believes this arrangement ensures consistent leadership within the company, enhancing the Group's overall strategic planning effectiveness and efficiency, and will continue to review and consider separation at an appropriate time[55] Dividends The Board did not recommend the declaration of any interim dividends for the reporting period - The Board did not recommend the declaration of any interim dividends for the reporting period[56] Directors' Securities Transactions All directors confirmed full compliance with the standard code for securities transactions, and the company implemented policies for handling inside information - The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors confirmed full compliance with all relevant requirements during the reporting period and up to the date of this announcement[57] - The company also implemented policies for handling and disseminating inside information, ensuring relevant personnel are informed on a need-to-know basis and reasonable measures are taken to maintain confidentiality[57] Audit Committee The Audit Committee, comprising independent non-executive directors, reviewed the Group's unaudited interim condensed consolidated financial information - The Audit Committee (comprising Mr. Shen Linhua, Mr. Fu Yuwu, and Ms. Wan Jiale, all independent non-executive directors) reviewed the Group's unaudited interim condensed consolidated financial information for the six months ended June 30, 2025[58] Independent Auditor's Review The interim results for the six months ended June 30, 2025, were reviewed by PricewaterhouseCoopers in accordance with HKSRS 2410 - The interim results for the six months ended June 30, 2025, were unaudited but reviewed by PricewaterhouseCoopers, the Group's auditor, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[59] Events After Reporting Period No significant post-reporting period events occurred other than those disclosed in the announcement - Except as otherwise disclosed in this announcement, no significant events occurred after June 30, 2025[60] Interim Condensed Consolidated Financial Statements This section presents Leapmotor Technology's unaudited interim condensed consolidated financial statements for H1 2025, including comprehensive income, financial position, equity changes, and cash flows Interim Condensed Consolidated Statement of Comprehensive Income/(Loss) This statement details the Group's revenue, costs, and profit/loss, showing a significant turnaround to profitability for the period Summary of Interim Condensed Consolidated Statement of Comprehensive Income/(Loss) | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 24,249,601 | 8,845,408 | | Cost of Sales | (20,823,968) | (8,745,183) | | Gross Profit | 3,425,633 | 100,225 | | Selling Expenses | (1,405,355) | (902,653) | | Administrative Expenses | (789,558) | (435,015) | | R&D Expenses | (1,894,331) | (1,221,285) | | Operating Loss | (88,630) | (2,395,029) | | Finance Income - Net | 110,430 | 189,126 | | Profit/(Loss) Before Income Tax | 33,023 | (2,211,720) | | Profit/(Loss) for the Period Attributable to Equity Holders of the Company | 33,030 | (2,211,736) | | Basic Earnings/(Loss) Per Share (RMB) | 0.02 | (1.65) | | Total Comprehensive Income/(Loss) for the Period Attributable to Equity Holders of the Company | 40,256 | (2,247,421) | Interim Condensed Consolidated Statement of Financial Position This statement presents the Group's assets, liabilities, and equity as of June 30, 2025, reflecting its financial health and structure Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 18,655,444 | 11,193,878 | | Current Assets | 27,635,055 | 26,452,642 | | Total Assets | 46,290,499 | 37,646,520 | | Equity | | | | Total Equity | 13,008,073 | 10,070,666 | | Liabilities | | | | Non-current Liabilities | 3,123,530 | 2,600,938 | | Current Liabilities | 30,158,896 | 24,974,916 | | Total Liabilities | 33,282,426 | 27,575,854 | | Total Equity and Liabilities | 46,290,499 | 37,646,520 | Interim Condensed Consolidated Statement of Changes in Equity This statement outlines the changes in the Group's equity components over the reporting periods, including share capital, reserves, and accumulated losses Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator (RMB thousand) | Share Capital | Reserves | Accumulated Losses | Total | | :--- | :--- | :--- | :--- | :--- | | January 1, 2024 | 1,336,966 | 25,057,804 | (13,896,574) | 12,498,196 | | June 30, 2024 (Unaudited) | 1,336,966 | 25,217,592 | (16,108,310) | 10,446,248 | | January 1, 2025 | 1,336,966 | 25,451,070 | (16,717,370) | 10,070,666 | | June 30, 2025 (Unaudited) | 1,407,179 | 28,285,234 | (16,684,340) | 13,008,073 | Interim Condensed Consolidated Statement of Cash Flows This statement summarizes the Group's cash flows from operating, investing, and financing activities, reflecting changes in cash and cash equivalents Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 2,858,168 | 267,554 | | Net Cash Used in Investing Activities | (5,476,764) | (2,460,099) | | Net Cash from/(Used in) Financing Activities | 2,707,554 | (345,475) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 88,958 | (2,538,020) | | Cash and Cash Equivalents at End of Period | 6,465,338 | 9,197,853 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim financial statements, covering significant changes, segment and revenue data, expenses, income tax, EPS, dividends, inventories, receivables, payables, and borrowings Significant Changes During the Reporting Period The Group primarily operates in China's new energy vehicle sector, with no significant climate-related or emerging business risks identified - The Group is primarily engaged in the production, research and development, and sales of new energy vehicles in the People's Republic of China ("China")[68] - The Group has reviewed its climate-related risks and other emerging business risks and has not identified any risks that would have a significant impact on the Group's financial performance or position as of June 30, 2025[68] - As of June 30, 2025, the Group had sufficient working capital and committed financial facilities available for its operating activities and ongoing investment commitments[68] Segment and Revenue Information This section details the Group's revenue breakdown by geographical region and category, along with contract liabilities and assets Revenue by Geographical Region Revenue is primarily generated from mainland China, with growing contributions from Europe and other regions Revenue by Geographical Region | Region (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Mainland China | 22,288,250 | 8,781,778 | | Europe | 1,849,945 | 63,630 | | Others | 111,406 | – | | Total | 24,249,601 | 8,845,408 | Revenue for the Reporting Period Revenue is primarily derived from the sale of vehicles and components, with a smaller portion from services, and no single customer accounts for over 10% of total revenue Revenue by Category | Revenue Category (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Sales of Vehicles, Components and Others (recognized at a point in time) | 24,057,938 | 8,836,298 | | Provision of Services (recognized over time) | 191,663 | 9,110 | | Total | 24,249,601 | 8,845,408 | - Revenue from transactions with any single external customer did not account for 10% or more of the Group's total revenue[72] Contract Liabilities Contract liabilities primarily relate to value-added services and customer points, recognized as revenue upon service provision or goods transfer Contract Liabilities | Contract Liability Category (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current (Provision of Services) | 357,447 | 285,310 | | Current (Provision of Services and Customer Points) | 108,773 | 161,419 | | Total | 466,220 | 446,729 | - Contract liabilities primarily include various value-added services in vehicle sales contracts (such as one-year extended warranty or lifetime warranty, connected car services, OTA firmware upgrades, lifetime free roadside assistance, lifetime free pick-up and delivery for maintenance, and others) and customer points, which are distinct from vehicle sales and recognized as revenue when services are provided or goods are transferred[73] Unsatisfied Performance Obligations The total transaction price allocated to unsatisfied performance obligations is expected to be recognized as revenue over one to eight years Total Transaction Price Allocated to Unsatisfied Performance Obligations | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Transaction Price Allocated to Partially or Wholly Unsatisfied Performance Obligations at Period/Year-end | 768,880 | 446,729 | - Management expects that approximately RMB 108.8 million of the transaction price allocated to unsatisfied performance obligations as of June 30, 2025, will be recognized as revenue within one year, with the remaining approximately RMB 660.1 million recognized within one to eight years[75] Contract Assets Contract assets, net of loss allowance, were recorded as of June 30, 2025 Contract Assets | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contract Assets | 68,202 | – | | Loss Allowance | (1,005) | – | | Net | 67,197 | – | Other Income - Net Other income, net, increased, primarily driven by fair value gains on financial assets Other Income - Net | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Fair Value Gains on Financial Assets at Fair Value Through Profit or Loss | 87,794 | 50,958 | | Net Loss on Disposal of Property, Plant and Equipment and Right-of-use Assets | (1,533) | (26,699) | | Net Foreign Exchange Loss | (14,915) | (2,006) | | Other Items | (3,414) | (956) | | Total | 67,932 | 21,297 | Expenses by Nature This section categorizes expenses by nature, including changes in inventories, raw materials, employee benefits, and marketing costs Summary of Expenses by Nature | Expense Category (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Changes in Inventories of Finished Goods | 412,747 | 214,124 | | Raw Materials and Consumables Used | 18,615,129 | 8,035,177 | | Employee Benefit Expenses | 2,974,680 | 1,433,410 | | Advertising and Promotion Expenses | 856,836 | 541,034 | | Transportation and Storage Costs | 528,306 | 154,161 | | Depreciation and Amortization Expenses | 403,926 | 320,755 | | Three Guarantees Expenses | 332,256 | 228,558 | | Design and Development Expenses | 246,368 | 180,189 | | Legal, Consulting and Other Professional Service Fees | 109,617 | 42,850 | | Others | 407,664 | 154,680 | | Total | 24,913,212 | 11,304,136 | Income Tax The company and its subsidiaries benefit from preferential tax rates for high-tech enterprises, with no significant impact from BEPS 2.0 identified Current Income Tax | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Current Income Tax (Reversal)/Expense | (7) | 16 | - The company and its subsidiary, Zhejiang Lingsheng Power Technology Co., Ltd., enjoy a preferential income tax rate of 15% as high-tech enterprises[80] - Other subsidiaries in mainland China are subject to a statutory Chinese enterprise income tax rate of 25%, while Hong Kong-incorporated subsidiaries are subject to a Hong Kong profits tax rate of 16.5%[80] - Enterprises engaged in R&D activities are entitled to deduct 200% of their R&D expenses as tax-deductible items ("super deduction") starting from 2021[81] - The impact of the BEPS 2.0 global minimum tax framework (Pillar Two) has been assessed, and no significant risks were identified or confirmed for the period ended June 30, 2025[81] Earnings/(Loss) Per Share This section details the calculation of basic and diluted earnings per share, reflecting the company's profitability Basic Earnings/(Loss) Per Share Basic earnings per share turned positive, reflecting the company's improved financial performance Basic Earnings/(Loss) Per Share | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Equity Holders of the Company | 33,030 | (2,211,736) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 1,361,793 | 1,336,966 | | Basic Earnings/(Loss) Per Share (expressed in RMB per share) | 0.02 | (1.65) | Diluted Earnings/(Loss) Per Share Diluted earnings per share also turned positive, with no anti-dilutive effect from potential ordinary shares in the prior loss-making period - As the Group incurred a loss for the six months ended June 30, 2024, potential ordinary shares were not included in the calculation of diluted loss per share because their inclusion would have been anti-dilutive. Therefore, diluted loss per share for the six months ended June 30, 2024, was the same as basic loss per share[84] Diluted Earnings/(Loss) Per Share | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Equity Holders of the Company | 33,030 | (2,211,736) | | Weighted Average Number of Ordinary Shares Used in Calculating Diluted Earnings Per Share (thousand shares) | 1,371,663 | Not Applicable | | Diluted Earnings/(Loss) Per Share (expressed in RMB per share) | 0.02 | (1.65) | Dividends The company did not declare or pay any dividends for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company did not declare or pay any dividends[86] Inventories Inventory, comprising raw materials and finished goods, increased, with a portion recognized as cost of sales and impairment allowance Composition of Inventories | Inventory Category (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials and Spare Parts | 2,038,778 | 1,063,847 | | Finished Goods | 587,738 | 1,000,485 | | Less: Impairment Allowance | (36,452) | (41,716) | | Net | 2,590,064 | 2,022,616 | - Raw materials primarily include materials for mass production and spare parts for after-sales service. Finished goods include vehicles ready for shipment from production plants, vehicles in transit to fulfill customer orders, and new vehicles available for immediate sale at the Group's sales and service centers[88] - For the six months ended June 30, 2025, inventories recognized as cost of sales amounted to approximately RMB 18.655 billion, and inventory impairment allowance recognized was approximately RMB 33.206 million[88] Trade and Bills Receivables Trade and bills receivables increased, primarily consisting of amounts due from related parties, government subsidies, and customer receivables Trade and Bills Receivables | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills Receivable | 21,518 | 348,857 | | Total Trade Receivables | 2,870,083 | 1,638,423 | | Impairment Allowance | (8,429) | (6,008) | | Total | 2,883,172 | 1,981,272 | - Trade receivables primarily include amounts due from related parties, government subsidies for promoting new energy vehicles, and amounts due from customers[89] Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 2,734,947 | 1,536,446 | | 6 months to 1 year | 131,996 | 22,985 | | 1 to 2 years | 2,240 | 6,230 | | Over 2 years | 900 | 72,762 | - Bills receivable have maturity periods ranging from 3 to 6 months[90] Borrowings Total borrowings increased, comprising both non-current and current portions, secured by various assets and subject to floating interest rates Composition of Borrowings | Borrowing Category (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Borrowings | 1,212,425 | 1,108,437 | | Current Borrowings | 1,455,159 | 1,265,715 | | Total Borrowings | 2,667,584 | 2,374,152 | - Total long-term bank borrowings amounted to approximately RMB 1.532 billion, of which approximately RMB 418 million is due for repayment within one year from the statement of financial position date, bearing floating annual interest rates ranging from 2.65% to 2.95%, and secured by buildings, construction in progress, land use rights, bank time deposits, and restricted cash[92] - Long-term other borrowings include a 24-month borrowing from a finance lease company and a 10-year and a 14-month third-party borrowing, partly obtained through sale and leaseback arrangements, and secured by related property, plant, and equipment[94] - Current borrowings include a 9-month borrowing of RMB 1 billion from a related party, bearing an effective annual interest rate of 2.50%[94] Trade and Bills Payables Trade and bills payables increased, primarily for materials, with bills payable secured by restricted cash and short-term bank deposits Trade and Bills Payables | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables - Amounts Payable for Materials | 11,854,381 | 11,575,839 | | Bills Payable - Amounts Payable for Materials | 11,473,385 | 7,327,573 | | Total | 23,327,766 | 18,903,412 | - Bills payable have maturity periods ranging from 3 to 6 months, and their issuance is secured by certain restricted cash, short-term bank time deposits, and bills receivable[95] - Due to their short-term nature, the carrying amounts of trade payables approximate their fair values[96] Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 11,628,151 | 11,476,516 | | 6 months to 1 year | 147,770 | 3,293 | | Over 1 year | 78,460 | 96,030 | Other Payables and Accrued Expenses Other payables and accrued expenses increased, covering advertising, rebates, freight, salaries, and payables for property, plant, and equipment Other Payables and Accrued Expenses | Category (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued Expenses - Advertising and Promotion Expenses | 979,551 | 976,158 | | Accrued Expenses - Rebates Payable | 691,461 | 561,917 | | Accrued Expenses - Freight | 273,002 | 23,611 | | Salaries and Welfare Payable | 709,232 | 650,991 | | Amounts Payable for Acquisition of Property, Plant and Equipment | 449,691 | 418,951 | | Amounts Payable for Design and Development Services | 374,536 | 341,620 | | Deposits from Suppliers and Dealers | 313,420 | 247,508 | | Other Taxes Payable | 322,127 | 235,351 | | Others | 257,782 | 269,272 | | Total | 4,370,802 | 3,725,379 | Basis of Preparation This section outlines the basis for preparing the financial statements and assesses the impact of new and revised accounting standards New Standards and Interpretations The Group assessed new and revised standards, concluding no significant impact on its interim results or financial position - The Group has assessed the adoption of new and revised standards applicable to the reporting period and concluded that they have no significant impact on the Group's interim results and financial position[100] - New or revised standards issued but not yet effective for financial years beginning on January 1, 2025, and not early adopted by the Group, include IAS 21 (Amendment) "Lack of Exchangeability" (effective January 1, 2025), which are not expected to have a significant impact on the Group's financial performance and position[102][104] Supplementary Information This section provides details on the interim results publication, upcoming earnings call, company overview, and forward-looking statements, cautioning investors about potential risks Publication of Interim Results Announcement and Interim Report The interim results announcement and report are published on the HKEX and company websites, with printed copies sent to shareholders who requested them - This results announcement has been published on the HKEX website www.hkexnews.hk and the company's website www.leapmotor.com[105](index=105&type=chunk) - The company's interim report will be published on the aforementioned HKEX and company websites and will be dispatched in due course to shareholders who have elected to receive printed copies of corporate communications[105] Earnings Conference Call Management will host an earnings conference call via webcast on August 18, 2025, at 7:00 PM Beijing/Hong Kong time - The company's management will host an earnings conference call via webcast on Monday, August 18, 2025, at 7:00 PM Beijing/Hong Kong time, to discuss the Group's interim results for the six months ended June 30, 2025[106] - Investors wishing to participate in the earnings conference call are requested to complete online registration using the designated link at least 20 minutes before the call begins and may submit relevant questions to the designated email address[106] About the Company Leapmotor is a Chinese new energy vehicle company with full-stack R&D capabilities, offering a comprehensive product matrix and expanding globally through strategic partnerships - Leapmotor is a Chinese new energy vehicle company with full-stack R&D capabilities in core new energy vehicle technologies, covering intelligent electric vehicle design, R&D, manufacturing, assisted driving, motor and electronic control systems, battery system development, and cloud-based connected car solutions[107] - As a technology-driven enterprise, Leapmotor consistently adheres to full-stack R&D of core technologies, self-developing and manufacturing high-value-added core components accounting for 65% of vehicle costs, and has successively launched industry-first intelligent electric technologies such as the eight-in-one electric drive, the first mass-produced CTC battery-chassis integration technology, and the first "four-domain-in-one" central integrated electronic and electrical architecture[107] - Leapmotor's product line covers A, B, C, and D series, forming a complete product matrix including sedans, SUVs, and MPVs, with current models including B01, B10, C16, C10, C11, C01, T03, offering both pure electric and extended-range dual power options[107] - In 2023, Stellantis Group invested in Leapmotor. In May 2024, both parties officially established Leapmotor International joint venture to expand into international markets, with Leapmotor's asset-light "reverse globalization" pioneering a new paradigm for Chinese automakers' overseas expansion, leveraging Stellantis Group's international channel resources to set new records for new energy vehicle brands' global reach[107] - As of June 2025, Leapmotor's cumulative deliveries exceeded 800,000 units, ranking among the top tier of new energy vehicle brands[107] Forward-Looking Statements This section contains forward-looking statements based on assumptions about future business strategies and operating environments, subject to known and unknown risks - This announcement contains forward-looking statements, including but not limited to statements regarding our future financial condition, strategies, plans, objectives, goals, targets, and the future development of markets in which we participate or seek to participate, which are based on assumptions about our current and future business strategies and future operating environments[108] - These forward-looking statements involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control, that may cause our actual results, performance, or achievements, or industry results, to differ materially from those expressed or implied by the forward-looking statements[108] - The company undertakes no obligation to update any forward-looking statements, and shareholders and potential investors are urged to exercise caution when dealing in the company's shares[108][109] Board Statement This statement confirms the announcement's release by the Board, listing the current composition of the Board of Directors - This announcement is published by order of the Board of Directors of Zhejiang Leapmotor Technology Co., Ltd. by Mr. Zhu Jiangming, Founder, Chairman, and Chief Executive Officer[110] - As of the date of this announcement, the Board comprises executive directors Mr. Zhu Jiangming, Mr. Cao Li, and Mr. Zhou Hongtao; non-executive directors Mr. Grégoire Olivier, Mr. Douglas Ostermann, and Mr. Jin Yufeng; and independent non-executive directors Mr. Fu Yuwu, Ms. Wan Jiale, and Mr. Shen Linhua[111]