BRIEF: Leapmotor becomes profitable a year ahead of schedule

Electric vehicle (EV) maker Zhejiang Leapmotor Technology Co. Ltd. (9863.HK) announced on Monday that it became profitable in the fourth quarter of 2024, a year ahead of its original plan. It did not disclose an actual profit amount.

Sales for the company, which formed a major alliance with Western auto giant Stellantis (STLA.US) in 2023, reached 293,000 units last year, up 104% year-on-year. Leapmotor has said it expects its annual revenue for 2024 to exceed 30.5 billion yuan ($4.16 billion), up at least 80% from the previous year. Its gross profit margin is projected to exceed 8%, a significant improvement from just 0.5% in 2023.

In the fourth quarter, Leapmotor delivered over 40,000 vehicles on average per month. Its C-series models, with a starting price of 130,000 yuan, accounted for over 77% of sales. The company attributed the improvement in gross profit margin to sales growth, product structure optimization, and ongoing cost management efforts.

According to financial media Caixin, only four EV makers — Li Auto (LI.US; 2015.HK), BYD (1211.HK, 002594.SZ), Seres (601127.SH) and Tesla (TSLA.US) — have achieved profitability. Leapmotor is set to become the fifth.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here