9863.HK
BYD, Nio do well in January, Li Auto trails

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

Recent Articles

an Illustration of McKinsey weighing China exit

McKinsey Weighs China Exit, and Shenzhen Rescues Vanke

Some partners at U.S. consulting giant McKinsey are questioning the wisdom of staying in China. What's driving their doubt, and what would a withdrawal signify? And Shenzhen rescues struggling developer Vanke. What is the city demanding in return for its assistance?
Huawei stages improbable comeback

Huawei rings up improbable comeback as revenue soars

The Shenzhen-based telecoms giant said its revenue rose 22% in 2024, showing that years of U.S. sanction have failed to contain its rise Key Takeaways: Huawei reported its second-highest annual…
Sands China’s revenue growth losing momentum in the fourth quarter amid gaming revenue weakness in Macao

Lady luck looks away from Sands China

The casino operator’s revenue declined in last year’s fourth quarter as the Macao gaming sector’s post-pandemic rebound lost steam Key Takeaways: Sands China reported its revenue fell 5% year-on-year in…