Q2 2026 Zhejiang Leapmotor Technology Co Ltd Earnings Call Transcript
Key Points
- Record-breaking sales growth: Zhejiang Leapmotor Technology Co Ltd (ZJLMF) delivered 356,000 units in H1 2026, a 60.8% YoY increase, and became the first EV startup to exceed 100,000 monthly deliveries in July.
- Strong export momentum: Exports surged 372.6% YoY to 96,294 units in H1, exceeding the full-year 2025 total, with a target of 200,000 units for 2026 and 350,000-400,000 for 2027.
- Successful product launches: New models like the A10, D19, and D99 have been well-received, with the D19 ranking first in the large SUV segment and the A10 achieving 100,000 units produced within three months.
- Strategic partnerships and localization: Collaboration with Stellantis is expanding, with plans for local production in Spain (B10 in 2027) and Brazil (B10 in H2 2027), leveraging Stellantis' supply chain and capacity.
- Technological innovation: The company is set to launch a new assisted driving solution in September 2026, with plans for L2+, L3, and L4 capabilities, and is exploring robotics, leveraging its in-house R&D strengths.
- Gross margin decline: GP margin fell to 11.7% in H1 2026 from 14.1% in H1 2025, impacted by raw material price increases, with full-year guidance lowered to 13-14%.
- Reduced profitability guidance: Net profit guidance for 2026 was cut from RMB5 billion to approximately RMB3 billion due to cost pressures, with adjusted net profit of only RMB270 million in H1.
- Lower cash flow: Operating cash flow dropped to RMB2.17 billion in H1 2026 from RMB2.86 billion in H1 2025, and free cash flow fell to RMB140 million from RMB860 million.
- Foreign exchange losses: The joint venture with Stellantis experienced losses in H1 due to FX fluctuations, though expected to be offset in H2.
- Shipping capacity constraints: Export growth is limited by tight roll-on/roll-off shipping capacity, which has improved but remains a bottleneck for meeting overseas sales targets.
Hello, everyone. Welcome to Leapmotor 2026 interim results conference call. We have CFO, Mr. Li Tengfei of Leapmotor; as well as Co-President, Mr. Wu Qiang; as well as the Board Secretary, Mr. Shen Ke.
First of all, may I invite Mr. Shen Ke to announce the disclaimer.
Thank you. Ladies and gentlemen, good evening. I'm Board Secretary, Shen Ke. Before we proceed, please note the following important legal and regulatory disclosures. The conference call and accompanying materials may contain forward-looking statements, including, but not limited to projections regarding revenue, profitability, growth and strategic plans as well as future market conditions.
These statements are based on the company's current expectations, estimates and assumptions and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from these expressed or implied in such statements. Therefore, we would like to remind you
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