Leapmotor 3Q25 Quick Interpretation: Overall, Leapmotor's total revenue and gross margin performance in the third quarter were commendable, continuing to improve quarter-on-quarter and both exceeding market expectations. However, net profit fell short of expectations due to a significant quarter-on-quarter increase in the three expenses. Specifically:
① Total revenue for the third quarter was 19.45 billion, significantly exceeding the market expectation of 18.33 billion.
In the third quarter, due to the mass production and delivery of the low-priced small car B01 in Leapmotor's model structure, its proportion in the model structure increased quarter-on-quarter to 18%. The overall model structure continued to sink, so the market expected the selling price per car to show a quarter-on-quarter downward trend.
However, the actual selling price per car this quarter was 112,000 yuan (including estimated service and other business), continuing to rise by 6,000 yuan from the previous quarter's 106,000 yuan. This is likely due to a. The proportion of overseas sales in the model structure continued to increase quarter-on-quarter by 0.4 percentage points to 10% this quarter; b. The recognition of a carbon credit income of 250 million yuan in the third quarter;
② The gross margin from car sales increased by 0.9 percentage points quarter-on-quarter to 14.5% this quarter, mainly due to a. The recognition of pure gross margin carbon credit income this quarter; b. The release of scale effects leading to a decrease in per-car amortized costs;
However, the three expenses this quarter increased significantly quarter-on-quarter, with R&D expenditure rising by 1.21 billion yuan, mainly due to increased investment in super-extended range models and intelligence, while sales and management expenses also increased due to increased advertising investment for new car launches and increased sales and management personnel due to business expansion.
Although the overall gross margin exceeded expectations, the significant quarter-on-quarter increase in the three expenses eroded Leapmotor's net profit, resulting in a net profit for the third quarter that fell by 0.1 billion yuan from the previous quarter's 1.6 billion yuan, below the market expectation of 2 billion yuan. $LEAPMOTOR(09863.HK)
