by SONG Jianan

Leapmotor, the car brand under Zhejiang Leapmotor Technology, reported a net profit of 30 million yuan (US$4.1 million) in the first half of 2025, marking its first positive half-year earnings. Li Auto had achieved the same milestone back in the second quarter of 2023.

Revenue for the period surged 174 per cent year on year to 24.25 billion yuan, driven by soaring vehicle and parts deliveries. Leapmotor delivered 221,664 cars in the first six months, up 156 per cent, securing the top spot among Chinese EV startups by sales. July deliveries hit a record 50,129 units, the only new-energy startup this year to exceed 50,000 monthly deliveries.

The company said additional income from strategic partnerships, carbon credit sales and related services also boosted earnings. Gross margin climbed sharply to 14.1 per cent from 1.1 per cent a year earlier, thanks to economies of scale that reduced unit costs.

Leapmotor expanded its sales network to 286 cities as of June, with 806 sales outlets and 461 service centers, while per-store efficiency rose more than 50 per cent. The company credited its end-to-end digitalised marketing and service platform for improving conversion rates and store productivity.

Founded in 2015 and listed in Hong Kong since 2022, Leapmotor offers a range of SUVs and sedans. Its B10 compact SUV, launched earlier this year at 109,800–129,800 yuan, quickly became its fastest-selling model, with deliveries exceeding 10,000 in its second month. Other key models include the C10 mid-sized family SUV, the C11 performance SUV, the six-seat C16, and the B01 sedan, which received more than 10,000 orders within 72 hours of launch in July.

The company is also making inroads overseas, exporting more than 20,000 units in the first half and leading Chinese startups in overseas deliveries. In Germany, it captured over 1 per cent of the BEV market in June, while European orders topped 4,000 in July. Its B10 is scheduled to debut at the Munich auto show in September.

Operating cash flow rose to 2.86 billion yuan in the first half, with free cash flow at 860 million yuan. Shares of Leapmotor closed at HK$68.15 on Monday, up 4.2 per cent, giving the company a market capitalization of HK$91.1 billion.