"Performance" Leapmotor turned a profit of 150 million yuan in the third quarter, with sales meeting targets ahead of schedule

LEAPMOTOR (09863.HK) announced its third-quarter results for the period ending in September, with revenue of RMB 19.45 billion, an increase of 97.3% year-on-year and 36.7% quarter-on-quarter, mainly due to the increase in vehicle and spare parts deliveries. It recorded a net profit of RMB 150 million, compared to a loss of RMB 690 million in the same period last year, turning from loss to profit; however, it decreased from a net profit of RMB 160 million in the second quarter, mainly due to increased expenses and a decline in other income.

Benefiting from the scale effect brought by rising sales, ongoing cost management, and product mix optimization, the gross profit margin in the third quarter rose to 14.5%, compared to 8.1% in the same period last year and 13.6% in the second quarter. The sales cost for the quarter was RMB 16.63 billion, an increase of 83.6% year-on-year and 35.2% quarter-on-quarter, due to increased sales volume.

In the third quarter, sales reached 173,852 units, an increase of 101.8% year-on-year and 29.6% quarter-on-quarter. On November 15, the company completed its sales target of 500,000 units for the fiscal year 2025 one and a half months ahead of schedule, and it is expected that annual sales will exceed 600,000 units