Leapmotor, a leading electric vehicle manufacturer, has reported a significant turnaround in its net income for the fourth quarter of 2024. The company attributes this positive result to a combination of factors, including continued volume growth, product mix optimization, cost control, and operational efficiency.
In a recent earnings preview announcement released on the Hong Kong Stock Exchange, Leapmotor revealed that its net income turned positive in the fourth quarter of 2024, exceeding its target ahead of schedule. This achievement was made possible by several key drivers:
1. Sales growth: Leapmotor experienced strong sales growth in the fourth quarter, with an average of over 40,000 units delivered per month. This represents a significant increase in sales volume compared to previous quarters.
2. Product mix optimization: The company successfully optimized its product mix, with the higher-priced C-series model accounting for over 77 percent of sales. This strategic focus on higher-margin products contributed to improved financial performance.
3. Cost control and operational efficiency: Leapmotor effectively managed costs and enhanced operational efficiency, leading to improved profitability and overall financial health.
During the fourth quarter, Leapmotor delivered a record 120,863 vehicles, marking a substantial increase of 118.45 percent year-on-year and 40.27 percent from the previous quarter. For the full year 2024, the company delivered a total of 293,724 vehicles, reflecting a 103.76 percent increase from the previous year.
In terms of financial outlook, Leapmotor expects its gross margin to be no less than 8 percent in 2024, a significant improvement from 0.5 percent in 2023. This sharp increase in gross margin is attributed to scale effects from volume growth, product mix optimization, and ongoing cost management efforts.
Overall, Leapmotor’s strong performance in the fourth quarter of 2024 underscores the company’s commitment to growth, profitability, and operational excellence. With a focus on delivering high-quality electric vehicles and maximizing financial performance, Leapmotor is well-positioned for continued success in the competitive automotive market.
