Leapmotor reported a 600% year-on-year increase in first-half net profit to 210 million yuan ($30.95 million), marking its third consecutive half-year of profitability as vehicle deliveries increased 60.8% to 356,487 units. The Stellantis-backed electric vehicle maker also recorded a 57.2% increase in revenue to 38.11 billion yuan.
Revenue and Deliveries Increase
Leapmotor said first-half revenue increased primarily because of higher vehicle and spare-parts deliveries. The company said its 356,487 vehicle deliveries made it the top-selling emerging automaker in China during the period.
The increase in sales also supported higher gross profit, which rose 29.7% year-on-year to 4.45 billion yuan.
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However, gross margin declined to 11.7% from 14.1% a year earlier. Leapmotor attributed the reduction to higher raw material costs and changes in its vehicle product mix.
Quarterly profitability showed some improvement. Gross margin reached 12.6% in the second quarter, 3.2 percentage points higher than in the first quarter.
Adjusted Profit and Cash Flow Under Pressure
Leapmotor’s reported net profit increased sharply, but its non-IFRS adjusted net profit excluding share-based payments fell 18.2% year-on-year to 270 million yuan.
The difference indicates that lower share-based payment expenses contributed to the significant increase in reported net profit.
Cash generation also weakened during the first half. Net cash generated from operating activities declined 24.1% to 2.17 billion yuan. Leapmotor said higher procurement spending associated with advance inventory stocking contributed to the decline.
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Free cash flow fell 83.7% year-on-year to 140 million yuan, compared with 860 million yuan in the same period last year.
At the end of June, Leapmotor held 38.59 billion yuan in cash and cash equivalents, restricted cash, time deposits and certain financial assets.
R&D and Sales Spending Increase
Research and development expenses increased 22.8% year-on-year to 2.32 billion yuan as Leapmotor continued to invest in its vehicle and technology programmes.
Selling expenses rose 41.1% to 1.99 billion yuan. The company attributed the increase primarily to higher advertising and promotional expenditure and an expansion of its sales workforce.
Overseas Deliveries Become Key Growth Driver
Leapmotor’s overseas business expanded rapidly during the first half. Exports increased 372.6% year-on-year to 96,294 vehicles, representing 27.0% of the company’s total deliveries.
The first-half overseas volume already exceeded Leapmotor’s full-year 2025 figure.
Management said overseas deliveries could reach approximately 200,000 vehicles in 2026. The company is targeting between 350,000 and 400,000 overseas sales in 2027 and aims to reach the upper end of that range.
New Models Support Delivery Growth
Leapmotor is relying on new models including the A10, D19 and A05 to support further delivery growth.
The company delivered 457,754 vehicles during the first seven months of the year, reaching 45.8% of its full-year target of 1 million vehicles.
To reach that target, Leapmotor would need to average approximately 108,449 deliveries per month during the remaining five months. That would exceed the company’s July record of 101,267 vehicles per month.
The D19 delivered 10,043 units in July, while Leapmotor said the 100,000th A10 vehicle left its production line 135 days after the model’s launch.
Assisted Driving Expansion Planned
Leapmotor is also expanding its assisted-driving technology across its vehicle lineup.
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The company said city navigation assistance is now available across its A, B, C and D series. It plans to extend nationwide city navigation assistance to vehicles based on its LEAP3.0 architecture during the third quarter.
A new assisted-driving solution based on a new architecture is scheduled for introduction in September, according to the company.