Core Viewpoint - The company achieved significant revenue growth and profitability in Q2 2025, driven by new vehicle launches and improved gross margins [2][3][4]. Financial Performance - Q2 2025 revenue reached 14.23 billion yuan, with year-on-year and quarter-on-quarter growth of 165.5% and 42.0% respectively [2][3]. - The net profit attributable to equity holders was 163 million yuan, a turnaround from a loss of 1.2 billion yuan in Q2 2024 and a loss of 130 million yuan in Q1 2025 [2][3][4]. - The gross margin for Q2 2025 was 13.6%, showing a year-on-year increase of 10.8 percentage points and a quarter-on-quarter decrease of 1.3 percentage points [3][4]. Vehicle Sales and Market Expansion - The company launched several new models, including the Leap B10, C10, and C16, achieving a total sales volume of 134,000 units in Q2 2025, representing a year-on-year increase of 151.7% and a quarter-on-quarter increase of 53.2% [3][4]. - The average selling price (ASP) was 106,000 yuan, with a year-on-year increase of 5.5% but a quarter-on-quarter decrease of 7.3% [3]. Cost Management and Efficiency - The company reported improved expense ratios, with sales, management, and R&D expense ratios at 5.6%, 2.8%, and 7.7% respectively, all showing reductions compared to the previous year and quarter [3]. International Expansion - In Q2 2025, the company exported 13,000 vehicles, a quarter-on-quarter increase of 70% [3]. - The company established over 600 international sales and service points, with a significant presence in Europe [3][4]. Profit Forecast and Investment Rating - The net profit forecast for 2025 has been raised to 880 million yuan from 610 million yuan, with 2026 and 2027 net profit estimates maintained at 4.4 billion yuan and 7.67 billion yuan respectively [5]. - The company is positioned well in the mainstream new energy vehicle market, with clear advantages in R&D, channel management, and supply chain [5].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved positive profitability in Q2 2025, with a significant improvement in gross margin [7] - Q2 2025 revenue reached 14.23 billion yuan, representing a year-on-year increase of 165.5% and a quarter-on-quarter increase of 42.0% [7] - The company launched multiple new models in Q2, resulting in a total sales volume of 134,000 vehicles, which is a year-on-year increase of 151.7% [7] - The gross margin for Q2 was 13.6%, showing a year-on-year improvement due to scale effects and additional revenue from other business activities [7] - The company plans to expand its sales network to cover 90% of cities by the end of 2025 [7] - The company exported 13,000 vehicles in Q2, marking a 70% increase from the previous quarter [7] - The net profit attributable to shareholders for Q2 was 163 million yuan, with a profit per vehicle of 1,200 yuan [7] Financial Projections - The company’s total revenue is projected to reach 67.66 billion yuan in 2025, with a year-on-year growth rate of 110.36% [1] - The net profit attributable to shareholders is expected to be 876.59 million yuan in 2025, with a significant increase of 402.35% in 2026 [1] - The earnings per share (EPS) is forecasted to be 0.66 yuan in 2025, increasing to 3.29 yuan in 2026 [1] - The price-to-earnings (P/E) ratio is projected to be 95.47 in 2025 and decrease to 19.00 in 2026 [1]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][7][26] Core Views - The company achieved a revenue of 10.02 billion yuan in Q1 2025, representing a year-on-year growth of 187.1%, primarily driven by a 162.1% increase in sales volume and product mix optimization [4][9] - The gross margin reached a historical high of 14.9% in Q1 2025, up from 8.38% for the entire year of 2024 and -1.4% in the same quarter of 2024 [5][12] - The company is expected to continue its rapid growth trajectory, with projected revenues of 66.8 billion, 99.9 billion, and 124.4 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 107.6%, 49.5%, and 24.5% [7][29] Summary by Sections Financial Performance - In Q1 2025, the company reported a net loss of 130 million yuan, significantly narrowing from a loss of 1.01 billion yuan in Q1 2024 [4][9] - The average revenue per vehicle in Q1 2025 was 114,400 yuan, with a historical low cost per vehicle of 97,400 yuan, resulting in a gross profit of 17,100 yuan per vehicle [19][29] Product Development - The new C10 model was officially launched on May 15, 2025, featuring comprehensive upgrades in electric and intelligent technology, with a price range of 122,800 to 142,800 yuan [6][24] - The B01 model, the first sedan in the B series, was unveiled at the Shanghai Auto Show in April 2025, showcasing a youthful and technological design [25][26] Future Projections - The company anticipates sales to exceed 500,000 units in 2025, with a long-term goal of reaching 1 million annual sales [26][30] - The gross margin is expected to remain between 11% and 12% for 2025, despite potential uncertainties due to changes in product mix with the introduction of the B series [30][34]