Leapmotor announces 2023 third quarter financial report: gross profit target achieved ahead of schedule, operating performance continues to improve

On October 16, Zhejiang Leapmotor Technology Co., Ltd. (9863.HK, hereinafter referred to as Leapmotor) released its third quarter financial report for 2023. One year after its listing on the Hong Kong stock market, Leapmotor achieved positive gross profit margin for the first time, and many indicators of corporate operations showed strong growth.

Gross profit margin turned positive, and revenue and delivery both hit new highs

The financial report shows that Leapmotor's gross profit margin in the third quarter was 1.2%, achieving the goal of turning gross profit into positive ahead of schedule while offering extremely competitive product pricing; turning gross profit into positive means that Leapmotor has begun to have the ability to generate its own revenue, becoming an important milestone from quantitative change to qualitative change.

The financial report also shows that Leapmotor's sales in the third quarter increased significantly, with 44,325 units delivered, up 24.5% year-on-year, setting a new quarterly delivery record. At the same time, sales revenue in the third quarter was 5.656 billion, up 31.9% year-on-year. In addition, net cash generated from operating activities continued to flow in.

Perfecting the "dual power" layout, the cost advantage of full-domain self-development becomes more prominent

Leapmotor focuses on the mass car consumer market of RMB 150,000 to RMB 200,000, and is committed to providing users with value-for-money products and services, allowing users to achieve luxury equality at affordable prices. Its main C series products all provide a "dual power" layout of pure electric + extended-range new energy, which is unique among listed new power car companies and aims to meet the diversified and multi-scenario car needs of a wider range of people.

As the only smart electric vehicle company with full self-development and self-manufacturing capabilities and the highest degree of vertical integration among the new forces in the domestic automobile industry, Leapmotor has self-developed and self-manufactured core systems and electronic components such as batteries, electric drives, electronic controls, cockpits, intelligent driving, electronic and electrical, and headlights, accounting for 70% of the cost of the entire vehicle, which means that Leapmotor has sufficient voice and pricing power over its own products. With the steady growth in sales, Leapmotor has now been able to exert scale effects and has cost competitive advantages.

In the third quarter, Leapmotor's sales hit a record high. In July, 14,335 new cars were delivered; in August, 14,190 new cars were delivered, and the C11 series achieved monthly sales of over 10,000; in September, 15,800 new cars were delivered, setting a new monthly delivery record; Leapmotor's sales ranked first among the new forces, and it has effectively penetrated the 150,000-200,000 mass new energy market.

In mid-to-late September, Leapmotor launched the C series super-range extended-range new product, which pioneered the industry's "super-range extended-range" with a larger battery and longer pure electric range. Users no longer have to choose between frequent charging and forced refueling, truly maximizing the cost advantage of extended-range vehicles. The two new cars further enriched Leapmotor's product structure and enhanced the effect of the "dual power" combination punch. While bringing users lower vehicle costs, the C series super-range extended-range also demonstrates leapfrogging advantages in design aesthetics, comfortable driving, smart technology, and extreme safety, setting a new benchmark for the value of the 150,000-200,000 new energy market.

Open up the second growth curve of external cooperation with industry-leading technical strength

As a technology-based smart electric vehicle company, Leapmotor has been committed to full-scale self-development for eight years, and has continuously developed and innovated the core technologies of smart power, smart driving, and smart cockpit, and its platform architecture has evolved to LEAP3.0. This architecture is based on the central integrated electronic and electrical architecture, integrating a number of leading smart electric technologies including CTC2.0 battery chassis integration technology, new oil-cooled electric drive, new generation smart cockpit, and laser radar intelligent driving solutions, making Leapmotor have first-class technical strength in the new energy vehicle industry.

While deepening its technology, Leapmotor is also actively and continuously expanding its overseas markets based on a global vision. At the Munich Motor Show in September, Leapmotor fully demonstrated the LEAP3.0 architecture and the first global product of the architecture, the C10. Leapmotor's subsequent products will be built with global design concepts and global R&D standards. In the next two years, five global products will be sold simultaneously in Europe, Asia Pacific, the Middle East, the Americas and other places, providing global car consumers with a smart travel experience.

Leapmotor's goal is not only to export complete vehicles or build factories overseas, but also to enter the international market through various cooperation models, and to embrace and integrate into the global automotive industry with an open attitude. Based on its persistent exploration of technology research and development, Leapmotor is also committed to becoming a provider of comprehensive solutions for smart electric vehicles, and is expected to open up a second growth curve for Leapmotor.

In 2023, Leapmotor has made effective progress in product upgrades, core technologies, channel construction, and globalization, laying a solid foundation for the company's long-term development. In the future, Leapmotor will continue to pursue full-domain self-development and vertical integration, meet user needs with high-quality and cost-effective products, and continue to exceed user expectations.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.