Leapmotor (HKG: 9863), a Chinese new energy vehicle (NEV) maker backed by Stellantis NV (NYSE: STLA), reported strong first-half performance driven by robust sales growth.
The company achieved net income of RMB 30 million ($4.2 million) in the first half of 2025, marking its first-ever positive profit for a half-year period, according to its financial report released today.
This makes Leapmotor the second Chinese NEV maker after Li Auto (NASDAQ: LI) to achieve half-year profitability.
The company delivered 221,664 vehicles in the first half of this year, representing a year-on-year increase of 155.68 percent.
In the first seven months, its deliveries reached 271,793 units, up 149.84 percent year-on-year.
Given its strong sales performance, Leapmotor has raised its full-year 2025 sales target from the previous range of 500,000 to 600,000 units to 580,000 to 650,000 units.
In 2026, Leapmotor aims to achieve annual sales of 1 million units, according to its management.
Leapmotor reported revenue of RMB 2.425 billion in the first half of the year, up 174.0 percent year-on-year.
Its gross margin for the first half of the year was 14.1 percent, a record high since its establishment, up 13 percentage points from 1.1 percent in the same period of 2024.
The company attributed the increase in gross margin to economies of scale brought about by higher sales, ongoing cost management, product mix optimization, and gains from other businesses.
Leapmotor's net cash flow from operating activities in the first half of the year was RMB 2.86 billion, more than 10 times the RMB 270 million in the same period of 2024.
As of June 30, the company's cash and cash equivalents, restricted cash, and time deposits totaled RMB 29.58 billion.
($1 = RMB 7.1788)
