Leapmotor, a Chinese new energy vehicle (NEV) maker, recently announced its achievement of a positive quarterly bottom line in the fourth quarter of 2024. This marks a significant milestone for the company, as it is the first time it has seen a quarterly profit since its inception in 2015. Leapmotor reported a net income of RMB 80.9 million ($11.1 million) for the quarter, surpassing its previous losses in the same period of the previous year.
The company attributed its turnaround in profitability to record deliveries and an improved gross margin, which reached a record 13.30 percent in the fourth quarter. This increase in gross margin was a result of optimized product mix and higher-priced vehicles contributing more to sales. Leapmotor delivered a record 120,863 vehicles in the fourth quarter, a significant increase of 118.45 percent year-on-year.
In addition to the strong delivery performance, Leapmotor also reported a record revenue of RMB 13.46 billion for the fourth quarter, up 155.00 percent year-on-year. The company’s full-year delivery figures for 2024 stood at 293,724 vehicles, a 103.76 percent increase from the previous year. The C-series models accounted for a majority of the deliveries, with 225,071 vehicles delivered in 2024.
Leapmotor’s success in achieving profitability ahead of schedule places it among China’s new car-making forces that have accomplished this feat. The company remains focused on growth and innovation, with a continued emphasis on research and development. In the fourth quarter alone, Leapmotor’s R&D investment reached a record RMB 895 million, reflecting its commitment to technological advancement and product development.
Looking ahead, Leapmotor has set ambitious targets for 2025, aiming to sell between 500,000 to 600,000 units. The company’s management is confident in its ability to sustain profitability throughout the year and build on its current success. With the recent launch of the B10 SUV, Leapmotor continues to expand its product line and strengthen its position in the competitive NEV market.
Overall, Leapmotor’s positive quarterly performance underscores its growth trajectory and solidifies its position as a key player in China’s rapidly evolving automotive industry. The company’s strategic focus on innovation, quality, and customer satisfaction will be crucial in achieving its long-term goals and maintaining its competitive edge in the market.
