Leapmotor narrows loss by 33pc to 2.8b yuan

Cici Cao

Chinese electric vehicle maker Zhejiang Leapmotor Technology (9863) yesterday said its net loss in 2024 narrowed 33.2 percent year-on-year to 2.82 billion yuan (HK$3.03 billion), 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.

With this, Leapmotor said it became the second profitable enterprise among emerging auto brands in the mainland.

No dividend was declared.

Revenue 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 deliveries more than doubled to 293,724 units while average monthly sales exceeded 40,000 units in the fourth quarter.

Leapmotor's 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 other news, sales of passenger cars in the mainland last month reached 1.39 million units, a 26 percent year-on-year increase but a 22.8 percent decline from January, the China Passenger Car Association said. Retail sales of new energy passenger vehicles hit 686,000 units for the month, up nearly 80 percent year-on-year.