Leapmotor, a Chinese new energy-vehicle (NEV) maker, has reported a net loss of RMB 130 million for the first quarter of the year, representing a significant decrease of 87.17 percent compared to the same period last year. This positive development in narrowing the net loss can be attributed to the improvement in gross margin surpassing the increase in expenses.
The company’s financial performance for the first quarter has been impressive, with revenue reaching RMB 10.02 billion ($1.39 billion), surpassing analysts’ estimates of RMB 9.43 billion. This marked a substantial year-on-year increase of 187.1 percent, although it was a 25.6 percent decrease from the previous quarter.
Leapmotor’s revenue growth was primarily driven by an increase in volume and optimization of the product portfolio, resulting in a 4.9 percent year-on-year increase in revenue per unit of vehicle. The company delivered 87,552 vehicles in the first quarter, reflecting a remarkable 162.05 percent year-on-year increase.
The higher-priced C-series models were particularly successful, accounting for 77.5 percent of total deliveries by contributing 67,812 units in the first quarter. Additionally, Leapmotor’s gross margin reached a record 14.90 percent in the first quarter, showing a significant improvement of 16.30 percentage points year-on-year.
Despite the impressive revenue growth, the company reported a net loss of RMB 130 million in the first quarter, down from RMB 1.01 billion in the same period last year. This positive trend in narrowing the net loss was primarily driven by the improvement in gross margin outpacing the increase in expenses.
Leapmotor also highlighted its commitment to research and development, with an expenditure of RMB 800 million in the first quarter, representing a 53.8 percent year-on-year increase. The company emphasized its strong financial position, with cash and cash equivalents, restricted cash, and bank time deposit balances totaling RMB 25.7 billion as of March 31.
Looking ahead, Leapmotor’s local peers Xpeng and Li Auto are set to report their first-quarter financial results in the coming weeks. The company’s solid performance in the first quarter underscores its position as a key player in the rapidly growing NEV market in China.
