LEAPMOTOR(HK:09863) Hua Er Jie Jian Wen·2025-08-18 14:33Core Viewpoint - Leap Motor has achieved profitability in the first half of 2025, marking a significant turnaround from a loss in the same period last year, driven by increased sales and expansion into overseas markets [1][2][7]. Financial Performance - Profit: The company reported a net profit of 33 million RMB (approximately 4.6 million USD) for the first half of 2025, compared to a loss of 2.2 billion RMB in the same period last year [2][7]. - Revenue: Total revenue for the first half reached 24.25 billion RMB, representing a year-on-year increase of 174% [3][7]. - Gross Margin: The gross margin improved to 14.1%, up from 1.1% in the previous year, marking the highest semi-annual gross margin since the company's inception [3][7]. - Cash Flow: Operating cash flow increased significantly to 2.86 billion RMB from 270 million RMB year-on-year, with free cash flow turning positive at 860 million RMB compared to a negative 480 million RMB last year [3][14]. Sales Performance - Delivery Volume: Leap Motor delivered 221,664 vehicles in the first half of 2025, a year-on-year increase of 156%, making it the top-selling brand among new energy vehicle manufacturers in China [4][9]. - July Sales: In July alone, the company delivered over 50,000 vehicles, achieving a record high and a year-on-year growth of over 126% [5][9]. Product Development - Product Matrix: The company is experiencing a robust product cycle, with the C10 model achieving over 100,000 global deliveries within 13 months of its launch [9][10]. - Technological Advancements: Leap Motor's self-developed LEAP 3.5 architecture and advancements in smart driving technology have strengthened its competitive edge [11][10]. Global Expansion - International Sales: The company exported 20,375 vehicles in the first half of 2025, with a growing market share in Germany and plans for localized production in Europe by 2026 [12]. - Strategic Partnerships: Collaborations, such as with Stellantis, support Leap Motor's global strategy, including local assembly projects in Malaysia [12]. Cash Flow and Capital Expenditure - Cash Position: The company holds 29.58 billion RMB in cash and cash equivalents, indicating a strong liquidity position [3][14]. - Capital Expenditure: Capital expenditures for the first half amounted to 2 billion RMB, primarily for new factory equipment and production line upgrades [14][15].