Investment Rating - The report maintains an "Accumulate" rating for the company [1][11]. Core Insights - The company achieved a significant revenue increase in Q2 2025, with a revenue of 142.3 billion yuan, representing a year-on-year growth of 165.5% and a quarter-on-quarter growth of 42.0%. The gross margin reached 13.6%, with a year-on-year increase of 10.8 percentage points [7]. - The company reported a net profit of 1.6 billion yuan in Q2 2025, marking its first positive net profit in a half-year period [5][10]. - The company has signed a carbon credit transfer agreement with Stellantis, which is expected to enhance its performance further [7]. Summary by Sections Recent Performance - In the first half of 2025, the company reported a revenue of 242.5 billion yuan, a year-on-year increase of 174.1%, and a net profit of 0.3 billion yuan, marking a turnaround from losses [5][7]. Sales and Delivery - The company delivered 134,000 vehicles in Q2 2025, reflecting a year-on-year increase of 151.7% and a quarter-on-quarter increase of 53.2%. The annual sales target has been raised to 580,000 to 650,000 vehicles [7]. Product Development - The company launched new models based on the LEAP 3.5 technology architecture, with significant sales from the B10 SUV and B01 sedan. Upcoming models are expected to drive further growth [7][8]. International Expansion - The company exported 20,000 vehicles in the first half of 2025, leading among new car manufacturers. It has established over 600 sales outlets globally, with plans for local assembly in Malaysia and a production base in Europe by 2026 [8][10]. Financial Projections - The company is projected to achieve revenues of 641.9 billion yuan, 1,002.6 billion yuan, and 1,281.3 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 9.4 billion yuan, 44.1 billion yuan, and 64.1 billion yuan [10][11].

Core Insights - Leap Motor reported a significant revenue increase of 174% year-on-year, reaching 24.25 billion yuan in the first half of 2025, with a net profit of 30 million yuan, marking its first positive half-year profit [1][2] - The company raised its annual sales guidance from 500,000-600,000 units to 580,000-650,000 units, with a target of 170,000-180,000 units for Q3 [1][4] - Leap Motor aims to achieve a sales target of 1 million units in 2026, supported by new model launches and existing series [1][3] Financial Performance - Revenue for the first half of 2025 was 24.25 billion yuan, a 174% increase from 8.85 billion yuan in the same period of 2024, driven by a significant rise in vehicle deliveries [2] - The total delivery volume reached 221,664 units, a 155.7% increase year-on-year, making Leap Motor the top-selling new energy vehicle brand in China [2] - The gross margin improved to 14.1%, up from 1.1% in 2024, nearing levels of competitors like Tesla and Li Auto [2][3] Research and Development - R&D expenditure for the first half of 2025 was 1.89 billion yuan, a 54.9% increase from 1.22 billion yuan in 2024, reflecting increased investment in smart driving technology [3] - The company plans to enhance its smart driving capabilities, aiming to reach a leading position in the domestic market by the end of 2025 [3] Market Strategy - Leap Motor plans to launch multiple new models in the second half of 2025, including the B05 at the Munich Auto Show and the D series, which will debut in Q1 2026 [5] - The company is focusing on maintaining a competitive edge in the domestic market while targeting 50,000-80,000 units in overseas sales without raising the current overseas sales target [5][6] - Leap Motor has initiated local assembly projects in Malaysia and plans to establish local production in Europe for its B series models [6]

证券研究报告 零跑汽车 (9863 HK) 港股通 销量连创新高，首次半年度盈利 2025 年 8 月 21 日│中国香港 乘用车 公司发布半年报，25H1 营收 242.50 亿元（yoy+174.15%），归母净利 0.33 亿元（同比转正），扣非净利-0.58 亿元（yoy-97.47%）；Q2 营收 142.30 亿元（yoy+165.48%、qoq+42.01%），归母净利+1.63 亿元（24Q2 和 25Q1 分别为-12.00/-1.30 亿）。考虑到公司销量强力持续向上&看好 ABCD 四大 平台车型竞争力&海外市场拓展加速&战略合作和零部件业务等增厚业绩， 我们预计公司 25-27 年营收将保持高速增长并逐步释放盈利弹性，我们本次 上调公司盈利预测并上调目标价。维持买入评级。 收入：销量连创新高&结构优化，B/C 平台销量占比提升 1）25Q2 公司实现销量 13.4 万辆，同环比+152%/+53%，7 月销量再次新 高破 5 万，连续 5 个月位列新势力销冠；2）销量结构持续优化，25Q2 B/C 平台销量占比 57.6%/24.4%，价格较低的 T03 占比 18.0%，同环比-7. ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company focuses on self-research to create cost advantages, resulting in an excellent price-performance ratio, with products covering a price range of 50,000 to 200,000 CNY. For Q2 2025, revenue reached 14.23 billion CNY, with a gross margin of 13.6% and a net profit attributable to shareholders of 160 million CNY. The domestic new car cycle is expected to drive continuous sales growth, while collaboration with Stellantis opens up global sales opportunities [2][4][6]. Summary by Sections Company Performance - In Q2 2025, the company achieved a sales volume of 134,000 units, representing a year-on-year increase of 151.7% and a quarter-on-quarter increase of 53.2%. Revenue for the same period was 14.23 billion CNY, up 165.5% year-on-year and 42.0% quarter-on-quarter. The average revenue per vehicle was 106,000 CNY, with a year-on-year increase of 6,000 CNY [6]. Profitability - The gross margin for Q2 2025 was 13.6%, an increase of 10.9 percentage points year-on-year, while it decreased by 1.2 percentage points quarter-on-quarter. The improvement in gross margin was attributed to scale effects, cost reduction, product structure optimization, and income from other businesses. The net profit attributable to shareholders was 160 million CNY, marking a turnaround from loss, with a profit margin of 1.1% [6]. Future Outlook - The company is expected to sell 620,000, 910,000, and 1,210,000 vehicles in 2025, 2026, and 2027, respectively. The company plans to launch 2-3 new products globally each year, with the B10 and B01 already launched in 2025. The company aims to achieve localized manufacturing in Europe by 2026 [4][6].

Core Viewpoint - Leapmotor has significantly changed the perception of "new forces" survival rules in the electric vehicle market with its impressive half-year report, achieving a 156% surge in sales, a gross margin exceeding 14.1%, and its first half-year profit, positioning itself as a leader among new energy vehicle brands [2][3]. Financial Performance - In the first half of 2025, Leapmotor reported revenue of 24.25 billion yuan and a net profit of 30 million yuan, marking a turnaround from a loss of 2 billion yuan in the same period of 2024 [3]. - The gross margin increased from 1.1% in the previous year to 14.1%, surpassing the critical 10% profitability threshold [3]. - Operating cash flow reached 2.86 billion yuan, a tenfold increase year-on-year, while free cash flow improved to 860 million yuan from a negative 480 million yuan [3]. Sales and Delivery - Leapmotor's total delivery volume in the first half of 2025 reached 221,664 units, a year-on-year increase of 155.7%, setting a new record for the company [3]. - In July 2025, Leapmotor achieved a monthly delivery of over 50,000 units, becoming the first new energy vehicle company to reach this milestone in the year [3]. Product Strategy - The company launched two new models based on the B platform and upgraded three existing models on the C platform, effectively covering a broader range of consumer needs [4]. - The C10 model achieved cumulative global deliveries of over 100,000 units within 13 months, while the C11 surpassed 250,000 units by June 2025 [4]. Sales Network and Channel Strategy - Leapmotor expanded its sales network to 286 cities, with over 800 stores, focusing on channel penetration strategies [4]. - The "1+N" model and "Golden Seed" plan enhanced single-store operational efficiency and improved customer conversion rates through a digital retail system [4]. Research and Development - The company significantly increased its investment in R&D, particularly in intelligent driving, with team size and computational resources nearly doubling compared to the previous year [5]. - Leapmotor aims to enhance its R&D resources in end-to-end algorithms and VLA technology, targeting the launch of city NOA (Navigation Assisted Driving) by the end of 2025 [5]. Global Expansion - Leapmotor's international strategy is accelerating, with 20,375 units exported in the first half of 2025, capturing a 1% share of the competitive German BEV market [6]. - The new B10 model is set to launch in Europe, with plans for localized production and R&D by the end of 2026 [6][7]. Long-term Strategy - The company emphasizes a "long-termism" approach in its overseas strategy, prioritizing brand recognition and sustainable market share over immediate high margins [8]. - Leapmotor aims to establish a complete ecosystem covering R&D, manufacturing, sales, and service in key overseas markets, with a sales target of 1 million units by 2026 [8].

Core Insights - Leap Motor reported a significant financial performance for the first half of 2025, achieving a revenue of 24.25 billion yuan, a gross margin of 14.1%, and a net profit of 30 million yuan, making it the second Chinese new energy vehicle company to achieve semi-annual profitability after Li Auto [2] - The company raised its annual sales target from 500,000-600,000 units to 580,000-650,000 units and set a goal to challenge 1 million units in 2026 [2][6] Financial Performance - The delivery volume reached 221,664 units, a year-on-year increase of 155.7% - Revenue increased by 174% year-on-year to 24.25 billion yuan - Gross margin rose to 14.1%, marking a historical high for the company in the first half of the year - Operating cash flow and free cash flow were both positive, with cash reserves amounting to 29.58 billion yuan, indicating strong financial health [2][3] Research and Development - R&D expenditure for the first half of the year reached 1.89 billion yuan, a year-on-year increase of 54.9%, with a doubling of the scale and computational resources of the intelligent driving team [3] - The company aims to leverage its strong cash flow and reserves to support future R&D and global expansion [3] Profitability Drivers - Scale effects are fundamental to Leap Motor's profitability, with main models like C10 and C11 achieving significant sales milestones - Over 65% of core components are self-developed, enhancing cost structure and competitive differentiation [5] - The company reported nearly 1.1 billion yuan in revenue from non-automotive sales, contributing to overall revenue growth [5] Sales and Market Strategy - The annual sales target has been adjusted to 580,000-650,000 units, with a goal of reaching 1 million units by 2026 - The product matrix will continue to expand with new models launching in the coming months [6] - The company plans to establish a localized production base in Europe by the end of 2026 [8] International Expansion - Leap Motor is pursuing international growth through a "reverse joint venture" model, aiming to leverage partnerships for faster development in global markets - As of mid-2025, the company has established over 600 outlets in approximately 30 global markets, with Europe contributing 1.85 billion yuan in revenue [8]

浙江零跑科技股份有限公司（简称："零跑汽车"，股票代码："9863"）今日发布截至2025年6月30日的业绩报告，财报显示，零跑汽车2025年上半年营收 为242.49亿元，较上年同期的88.45亿元增长174%。 | | 截至6月30日止六個月 | | | --- | --- | --- | | | 2025年 | 2024年 | | | 人民幣千元 | 人民幣千元 | | | (未經審計) | (未經審計) | | 收益 | 24.249.601 | 8.845.408 | | 销售成本 | (20,823,968) | (8.745.183) | | 毛利 | 3,425,633 | 100,225 | | 銷售開支 | (1.405.355) | (902.653) | | 行政開支 | (789.558) | (435.015) | | 研發開支 | (1.894.331) | (1.221.285) | | 金融資產及合約資產減值虧損淨額 | (3,447) | (354) | | 其他收入 | 510,496 | 42,756 | | 其他收益一淨額 | 67,932 | 21,297 | | ...

Financial Data and Key Metrics Changes - In the first half of 2025, the company achieved a net profit of 30 million RMB, marking its first interim profitability and becoming the second EV startup to do so [6][9] - The gross profit margin reached a historical high of 14.1% in the first half of 2025, attributed to economies of scale, cost management, and product mix optimization [6][8] - Total income as of June was 24.25 billion RMB, with operating net cash increasing to 2.86 billion RMB compared to 270 million RMB in the same period of 2024 [9][10] - Free cash flow improved to 860 million RMB from a negative 480 million RMB year-on-year [9] Business Line Data and Key Metrics Changes - Total sales in the first half of 2025 were 221,664 units, up 155.7% compared to the same period in 2024, making the company the top startup EV brand in China [10] - In July, deliveries reached a new high of 50,129 vehicles, maintaining the number one position for five consecutive months [10][11] - The company marked cumulative deliveries of 800,000 vehicles since its IPO, with over 100,000 units delivered globally [11] Market Data and Key Metrics Changes - As of June, the company expanded its sales network to cover 286 cities, an increase of 88 cities from the previous year [19] - The company deployed 806 sales outlets, with same-shop performance exceeding 82% [20] - In June, the company's market share in Germany surpassed 1%, with over 4,000 European users placing orders in July, a historical high [25] Company Strategy and Development Direction - The company plans to continue investing in R&D, with a focus on achieving urban assisted driving by the end of 2025 [15][16] - New product launches include facelifts of existing models and the introduction of a high-quality sedan targeting young families [13][14] - The company aims to penetrate tier one and tier two cities while expanding into areas where it currently lacks presence [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sales guidance of 580,000 to 650,000 units for the full year, adjusting from the previous guidance of 500,000 to 600,000 units [33] - The company anticipates a slight increase in gross profit margin in the second half of the year, aiming for around 15% [49] - Management believes that the impact of the removal of purchase tax incentives will be minimal, similar to the previous year's experience with subsidy removal [90][92] Other Important Information - The company received an MSCI ESG double A rating for the second consecutive year, reflecting its commitment to environmental protection and corporate governance [27][28] - The company is exploring capital collaboration opportunities to enhance industrial resource synergies [24] Q&A Session Summary Question: What is the sales outlook for August and September? - Management expects significant growth in sales for August and September, with Q3 sales projected to be between 170,000 to 180,000 units [33] Question: What is the outlook for gross profit margin in subsequent quarters? - Management believes the gross profit margin will improve in the second half compared to the first half, maintaining above 14% [34] Question: How does the company plan to handle pricing strategy amid regulatory changes? - The company supports government efforts to curb industry chaos and will not engage in excessive competition, maintaining a strong gross profit margin through cost control [40][41] Question: What is the guidance on expenses as sales grow? - Management did not provide specific guidance on expenses but noted that the expense ratio is dropping as sales revenue increases [43] Question: What are the expectations for overseas sales and localized production? - The company expects to double overseas sales next year, with localized production in Europe planned for the B series model [44][45] Question: How will the removal of purchase tax incentives impact sales? - Management anticipates minimal impact from the removal of purchase tax incentives, similar to the previous year's experience with subsidy removal [90][92]

Financial Data and Key Metrics Changes - In the first half of 2025, the company achieved a net profit of 30 million RMB, marking its first interim profitability and becoming the second EV startup to do so [6][9] - The gross profit margin reached a historical high of 14.1% in the first half of 2025, attributed to economies of scale, cost management, and product mix optimization [6][8] - Total income for the first half was 24.25 billion RMB, with operating net cash increasing to 2.86 billion RMB compared to 270 million RMB in the same period of 2024 [9][10] - Free cash flow improved to 860 million RMB from a negative 480 million RMB year-on-year [9] Business Line Data and Key Metrics Changes - Total sales in the first half of 2025 were 221,664 units, a 155.7% increase compared to the same period in 2024, making the company the top startup EV brand in China [10] - In July 2025, deliveries reached a new high of 50,129 units, maintaining the number one position for five consecutive months [10][11] Market Data and Key Metrics Changes - The company expanded its sales network to cover 286 cities, an increase of 88 cities from the previous year, with 806 sales outlets established [19][20] - In June 2025, the company's market share in Germany exceeded 1%, with over 4,000 orders placed by European users in July [25][26] Company Strategy and Development Direction - The company plans to continue investing in R&D, with a focus on smart driving technologies and expanding its product lineup [15][16] - The company aims to achieve localized production in Europe and Malaysia by 2026, enhancing its global market presence [27][71] - The strategy includes deepening market penetration in tier three to tier five cities in China, capitalizing on the growing demand for new energy vehicles [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revised full-year sales guidance of 580,000 to 650,000 units, based on strong performance in the first half and positive outlook for the second half [33][34] - The company anticipates a slight increase in gross profit margin in the second half, aiming for around 15% as it scales operations [49][50] - Management noted that the impact of the removal of the new energy vehicle purchase tax would be minimal, similar to the previous year's experience with subsidy removal [90][92] Other Important Information - The company has received an MSCI ESG double A rating for its commitment to environmental protection and corporate governance [28] - The company is exploring capital collaboration opportunities to enhance industrial resource synergies [24] Q&A Session Summary Question: What is the sales outlook for August and September? - Management expects significant growth in sales for August and September, with Q3 sales projected to be between 170,000 to 180,000 units [33] Question: What is the outlook for gross profit margin in subsequent quarters? - Management believes the gross profit margin will improve in the second half compared to the first half, maintaining above 14% [34] Question: How does the company plan to handle pricing strategy amid regulatory changes? - The company supports government efforts to curb industry chaos and will not engage in excessive competition, maintaining a strong gross profit margin through cost control [40][41] Question: What is the guidance on expenses as sales grow? - Management indicated that while absolute expenses are rising, the expense ratio is dropping rapidly due to increased sales revenue [43] Question: What are the expectations for overseas sales and carbon credit purchases? - Management expects overseas sales to double next year, with Stellantis likely to continue purchasing carbon credits [44][47] Question: How will the removal of the purchase tax impact sales and profitability? - Management anticipates minimal impact on sales due to the removal of the purchase tax, similar to the previous year's experience with subsidy removal [90][92]

Summary of Conference Call Records Industry Overview - The global automotive industry, particularly focusing on the Chinese electric vehicle (EV) sector, is experiencing significant growth, with a notable increase in exports and a shift towards localization in production [1][6]. Key Points on Chinese EV Exports - In the first half of 2025, China's EV exports reached 1 million units, marking a 70% year-on-year increase, primarily driven by BYD's doubling of exports, while other manufacturers remained stable or saw slight declines [1][3]. - The total passenger car exports for 2025 are projected to be around 5.2 million units, reflecting an approximate 11% year-on-year growth, although this is below initial expectations [1][5]. - The decline in the Russian market, with a 25% drop in exports to CIS countries, has impacted overall growth, attributed to increased vehicle scrappage tax and stricter controls on parallel imports [3]. BYD's Performance - BYD's exports in the first half of 2025 approached 500,000 units, representing a 130% increase, with significant growth in the European market [4][10]. - Plug-in hybrid electric vehicles (PHEVs) accounted for about 40% of BYD's sales in Q1 2025, a 30 percentage point increase from 2023 [10]. - BYD is accelerating its overseas production base layout, with expectations to reach an overseas capacity of 1.5 million units by 2027 [4][10]. Leap Motor's International Strategy - Leap Motor, through its joint venture with Stantys, has launched the T03 and C10 models in Europe, maintaining monthly retail sales around 2,000 units [1][7]. - The wholesale monthly export figures are approximately 3,000 units, with a peak of 6,000 units in April 2025 [7]. - The company aims for its export business to break even by 2025, focusing on increasing market share and establishing a robust overseas presence [8]. SAIC's Adaptation to EU Tariffs - SAIC has adjusted its product structure to mitigate the impact of EU tariffs by increasing the share of HEV models, which accounted for 41% of its exports to the EU in the first half of 2025 [11]. - This strategy has allowed SAIC to achieve positive growth despite tariff challenges, with expectations for steady profit improvement [11]. Localization and Production Challenges - Chinese passenger car manufacturers are entering a localization phase similar to Japan's automotive industry development, facing challenges in managing relationships with local unions and governments [6][12]. - The need for patience and time is emphasized as companies navigate these complexities while establishing local production capabilities [6][13]. Other Notable Companies - Besides BYD and Leap Motor, companies like Great Wall, Geely, and Chery are also actively expanding into overseas markets, compensating for declines in the Russian market through diverse energy vehicle offerings and partnerships with multinational firms [12]. Conclusion - The Chinese automotive industry, particularly in the EV segment, is poised for growth with increasing exports and a strategic shift towards localization, although challenges remain in navigating international markets and regulatory environments [1][6][12].