LEAPMOTOR(HK:09863) Chang Jiang Shang Bao·2025-08-20 00:02Core Viewpoint - Leap Motor has achieved its first half-year profit in 2025, becoming the second Chinese new energy vehicle brand to do so, with significant revenue growth and improved profitability metrics [4][2]. Financial Performance - In the first half of 2025, Leap Motor reported revenue of 24.25 billion yuan, a year-on-year increase of approximately 174% [2][1]. - The company achieved a net profit of 30 million yuan, a turnaround from a loss of 2.21 billion yuan in the same period of 2024 [2][1]. - Adjusted net profit (non-IFRS) for the first half of 2025 was 330 million yuan [2]. Sales and Delivery - Leap Motor's total delivery volume reached approximately 221,700 vehicles in the first half of 2025, marking a 155.7% increase compared to the same period in 2024, making it the top brand among Chinese new energy vehicle manufacturers [5][1]. - The company has raised its full-year sales target for 2025 to between 580,000 and 650,000 vehicles, with a long-term goal of reaching one million vehicles in 2026 [8][1]. Profitability and Margins - The gross margin for Leap Motor in the first half of 2025 was 14.1%, a significant increase of 13 percentage points from 1.1% in the same period of 2024 [7][1]. - The improvement in gross margin is attributed to increased sales volume, effective cost management, and product mix optimization [7]. Research and Development - Leap Motor has invested heavily in R&D, with expenditures of 1.89 billion yuan in the first half of 2025, contributing to technological advancements such as the LEAP 3.5 architecture [9]. - The company’s cash and cash equivalents totaled 29.58 billion yuan as of June 30, 2025, providing a solid financial foundation for future growth [9]. Market Performance - On August 19, 2025, Leap Motor's stock rose by 7.63%, closing at 73.35 HKD per share, with its market capitalization reaching 98.1 billion HKD [10].