LEAPMOTOR(HK:09863)2025-05-19 12:02Financial Data and Key Metrics Changes - The company's revenue for Q1 2025 reached RMB 12 billion, representing an annual increase of approximately 187% [5] - Gross profit in Q1 2025 was 14.9%, up from 13.3% in Q4 2024, attributed to increased sales and optimized portfolio [5] - The net loss for Q1 2025 was about RMB 130 million, a significant reduction from approximately RMB 1 billion in the previous year [6] - The company reported RMB 25.7 billion in cash reserves, indicating strong capital availability [6] Business Line Data and Key Metrics Changes - C car deliveries in Q1 reached about 60,000 units, contributing to a total of 700,000 units delivered [6] - The launch of the Dayton model on April 10 resulted in over 18,000 units sold shortly after its release [7] - The A10 model showcased at the Shanghai Auto Show targets the young generation, emphasizing optimal range and performance [8] Market Data and Key Metrics Changes - The company plans to expand its retail presence, targeting over 80 additional cities in China, focusing on second-tier cities [11] - In Q1, the efficiency of retail operations improved by 4% compared to 2024 [12] - The company exported a significant volume of locomotives, ranking first among its peers in overseas markets [14] Company Strategy and Development Direction - The company aims to enhance investments in smart driving technology, with anticipated investments exceeding RMB 1 billion [11] - Strategic cooperation with Stellantis will facilitate localized assembly and manufacturing in Malaysia and Europe by the end of 2025 [15] - The company is committed to integrating technological innovation with social service, evidenced by a RMB 5 million donation to improve local livelihoods [16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining robust sales in Q2, expecting sales to reach between 130,000 to 140,000 units [25] - The company aims for annual sales targets of 500,000 to 600,000 units, with a gross profit margin close to 10% [26] - Management remains optimistic about achieving annual breakeven based on Q1 performance [26] Other Important Information - R&D expenses increased by about 52% year-on-year to RMB 800 million, reflecting greater investment in labor and technology [18] - The company achieved a significant improvement in customer service response rates, with a 99.4% response rate within 15 minutes [13] - The company is focused on digital transformation to enhance customer service and operational efficiency [61] Q&A Session Summary Question: What is the expectation for gross profit margin in Q2? - Management indicated that while Q1 performance was robust, a slight decline in gross profit margin is expected in Q2 due to the launch of new models [24] Question: What percentage of revenue is due to strategic cooperation? - Management stated that specific data on revenue from strategic cooperation is confidential, but gross profit margins for complete vehicles are similar to 2024 levels [27][28] Question: How will the company handle tariffs in overseas markets? - The company plans to follow market-based pricing strategies and prioritize market share over immediate profits in international markets [46][47] Question: What is the target for channel stores? - The company aims to exceed 1,000 stores, with about 800 stores already established in Q1 [59] Question: How will the company address battery supply pressures? - Management confirmed that battery supply issues are expected to be resolved by May, ensuring sufficient production capacity [62]