Leapmotor cuts third of losses with fourth-quarter profit

Chinese electric vehicle maker Zhejiang Leapmotor Technology (9863) said its net loss narrowed 33.2 percent to 2.82 billion yuan (HK$3.03 billion) last year, thanks to robust contributions in the fourth quarter.

The company recorded a positive net profit of 80 million yuan in the fourth quarter of 2024, achieving the target of a positive net profit for a single quarter one year ahead of its original plan.

It stated it became the second profitable enterprise among emerging auto brands in the mainland.

No dividend was declared.

Revenues jumped more than 92 percent from a year prior to 32.16 billion yuan, mainly due to an increase in the delivery of vehicles and spare parts.

Total delivery of Leapmotor vehicles amounted to 293,724 units last year, representing a nearly 1.04-fold growth from 12 months prior. Its average monthly sales volume exceeded 40,000 units in the fourth quarter.

Gross margin for 2024 stood at 8.4 percent, marking a year-on-year increase of 7.9 percentage points, while gross margin for the fourth quarter was 13.3 percent, an all-time high since the company’s establishment.

In related news, retail sales of mainland passenger cars in February reached 1.39 million units, marking a 26 percent year-on-year increase but a 22.8 percent decline from January, according to the China Passenger Car Association.

February saw retail sales of new energy passenger vehicles hit 686,000 units for the month, up nearly 80 percent year-on-year.

STAFF REPORTER