--- title: "LEAPMOTOR to Enter Robot Manufacturing" type: "News" locale: "en" url: "https://longbridge.com/en/news/296851062.md" description: "Profits are expected to rebound in the second half of the year" datetime: "2026-08-25T02:43:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296851062.md) - [en](https://longbridge.com/en/news/296851062.md) - [zh-HK](https://longbridge.com/zh-HK/news/296851062.md) generator: "portal-rs" --- # LEAPMOTOR to Enter Robot Manufacturing LEAPMOTOR has included robots in its next phase of plans. On the evening of August 24, LEAPMOTOR’s management revealed during the interim results conference that the company had formulated a plan for embodied robots, with related information to be announced soon. Additionally, LEAPMOTOR’s management provided a more positive outlook on its financial performance for the second half of the year. In the second quarter, LEAPMOTOR recouped the losses incurred in the first quarter. The semi-annual report showed that LEAPMOTOR’s revenue in the first half reached RMB 38.11 billion, a year-on-year increase of 57.2%; deliveries totaled 356,500 units, up 60.8%. In July, LEAPMOTOR’s monthly sales surpassed 100,000 units for the first time. The net profit attributable to shareholders in the first half was RMB 208 million. After deducting the RMB 390 million loss in the first quarter, the net profit in the second quarter was approximately RMB 600 million. This profit not only covered the first-quarter loss but also ensured LEAPMOTOR remained profitable in the first half. During the same period, the gross margin rebounded from 9.4% in the first quarter to 12.6%. Cash flow also improved significantly in the second quarter. Based on calculations from the semi-annual and first-quarter reports, LEAPMOTOR’s net operating cash inflow in the second quarter was approximately RMB 8.78 billion, compared to a net outflow of RMB 6.61 billion in the first quarter. The semi-annual report explained that the year-on-year decrease in operating cash flow in the first half was mainly due to increased inventory from advance stocking. Cash flow for individual quarters remains affected by stocking and delivery rhythms. While sales volume has risen, per-unit profitability remains thin. LEAPMOTOR’s comprehensive gross margin in the first half was 11.7%, a year-on-year decrease of 2.4 percentage points. Although both revenue and deliveries grew by over 50%, the gross margin was lower than the same period last year. The company attributed this to rising raw material costs and changes in product mix. Excluding share-based incentives, the adjusted net profit in the first half was RMB 270 million, lower than RMB 330 million in the same period last year; free cash flow was RMB 140 million, compared to RMB 860 million in the same period last year. Carbon credit income is an unavoidable component of this income statement. Management stated at the results conference that carbon credit income in the first half was approximately RMB 800–900 million, with about RMB 500 million generated in the second quarter. This figure is close to the second-quarter net profit of approximately RMB 600 million. Therefore, to determine how much profit the vehicle business itself generated during this return to profitability, one must also consider the vehicle gross margin. The semi-annual report showed that revenue from services and other sales increased by 118.3% year-on-year to RMB 2.51 billion, primarily driven by increased overseas sales and related carbon credit trading income. Management forecasts a full-year comprehensive gross margin of 13% to 14%, with vehicle gross margin around 10% to 11%. The improvement in the second half will mainly rely on reduced material costs and manufacturing expenses resulting from expanded sales volume. Even if this target is achieved, the vehicle gross margin will remain around 10%, indicating limited profit margins. LEAPMOTOR will continue to expand its overseas sales this year. Exports in the first half totaled 96,300 units, a year-on-year increase of 372.6%, accounting for 27% of total sales. Management expects overseas sales to reach approximately 200,000 units this year, with a target of 350,000 to 400,000 units for next year. While overseas sales are growing rapidly, their contribution to overall profit improvement remains to be seen. Production in Spain can save on tariffs, but the cost of locally sourced components is higher than in China. Management expects local production volume to reach approximately 50,000 units next year, which will improve gross margin, though the extent of improvement may not be as significant as externally anticipated. LEAPMOTOR’s second quarter provides an intuitive example: rapid sales growth can quickly push the income statement past the break-even point. However, the semi-annual report shows a year-on-year decline in gross margin, lower free cash flow compared to the same period last year, and ongoing volume-focused efforts in overseas business, suggesting that profit improvement will be slower. LEAPMOTOR has proven its ability to boost sales volume. With monthly sales exceeding 100,000 units, the company’s next step is to increase vehicle gross margin and enable its overseas business to start contributing profits. For new energy vehicle startups at this stage, achieving stable profitability is more important than turning a profit in any single quarter. ### Related Stocks - [09863.HK](https://longbridge.com/en/quote/09863.HK.md) ## Related News & Research - [Leapmotor confirms move into embodied robotics, says details coming soon](https://longbridge.com/en/news/296862549.md) - [LEAPMOTOR Confirms Robotics Biz Layout; Formal Announcement to Be Made Soon](https://longbridge.com/en/news/296853915.md) - [His robotics company IPO'd this week. He still thinks a humanoid breakthrough will take years.](https://longbridge.com/en/news/296571389.md) - [Unitree Robotics Founder Says the Technology's 'ChatGPT Moment' is Coming. 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