Leapmotor 4Q25 First Take: the company delivered a solid, in-line quarter. It demonstrated steady operating discipline.

Management had guided that heavier promotions would offset scale benefits, leaving GPM flat QoQ. That set a conservative bar.

However, GPM still rose 50bps QoQ to 15%. Despite lower ASPs due to promotions and a mix shift toward lower-priced models, the QoQ uptick was driven by three factors.

Drivers included ongoing cost-down through platformization and in-house R&D/manufacturing, and further scale effects. In Q4, other income also lifted GPM; with faster overseas ramp, carbon credit revenue recognition likely doubled vs. last quarter.

On opex, sales expense was RMB 1.3bn, up QoQ on heavier ad spend and concurrent network expansion. R&D and admin were well controlled and declined QoQ. OP reached RMB 220mn, above the market’s ~RMB 60mn expectations. $LEAPMOTOR(09863.HK)