Q3 2025 Zhejiang Leapmotor Technology Co Ltd Earnings Call Transcript
Key Points
- Zhejiang Leapmotor Technology Co Ltd (HKSE:09863) reported a net profit of RMB160 million in Q3 2025, a significant improvement from a loss of RMB690 million in the same period of 2024.
- The company's gross profit margin increased to 14.5% in Q3 2025, up from 13.6% in Q2 2025, indicating improved profitability.
- Sales volume in Q3 2025 reached 173,000 units, marking a year-on-year increase of 101% and a month-on-month increase of about 29%.
- The company achieved its annual sales target of 500,000 units ahead of schedule and expects to exceed 600,000 units by the end of the year.
- Zhejiang Leapmotor Technology Co Ltd (HKSE:09863) has expanded its international presence, with significant sales growth in European markets and plans for further global expansion in 2026.
- The company faces challenges from reduced new energy vehicle subsidies and changes in purchase tax, which could impact sales in the domestic market.
- Despite the increase in sales, the company aims to maintain a gross profit margin of around 15%, which may limit profitability growth.
- The company acknowledges the fierce competition in the new energy vehicle market, which could pressure pricing and margins.
- There are concerns about the impact of rising raw material costs, particularly for batteries, on the company's cost structure.
- The company's overseas profitability remains a challenge, with a commitment to maintaining a low gross profit margin in international markets for the first three years of expansion.
The conference has not started yet. Please hold for a moment.
(audio in progress) Those forward-looking statements may be different. We remind all participants not to place undue reliance on the forward-looking statements discussed in this call. This discussion reflects the management's view only as of today, and the company has no obligation to update or revise them in light of new information, future events, or other circumstances. The forward-looking events discussed may not occur due to various uncertainties and assumptions. Will this disclaimer apply to all the forward-looking statements mentioned in this call? I remind all shareholders and potential investors not to treat this earnings call as constituting investment advice, nor that it forms the basis of any contract, commitment, or investment decision. Please exercise independent judgment and caution when trading the company's shares.
Thank you. Next, inviting Li Tengfei to share the company's performance in the quarter 3 of 2025.
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