- Leapmotor attributes the turnaround in net income to continued volume growth, product mix optimization, cost control and operational efficiency.
- It expects its gross margin to be no less than 8 percent in 2024, a significant increase from 0.5 percent in 2023.
Leapmotor (HKG: 9863) previewed a strong fourth-quarter earnings performance, as deliveries grew strongly and product mix was optimized.
The company saw net income turn positive in the fourth quarter of 2024, achieving its target a year ahead of schedule, it said in a Hong Kong Stock Exchange earnings preview announcement released last night.
Leapmotor attributes this to:
Continued sales growth in the fourth quarter, with sales averaging over 40,000 units per month.
Optimized product mix, with the higher priced C-series model accounting for over 77 percent of sales.
Effective cost control and operational efficiency.
Leapmotor delivered a record 120,863 vehicles in the fourth quarter, an increase of 118.45 percent year-on-year and 40.27 percent from the third quarter, according to previously announced data.
For the full year 2024, the company delivered 293,724 vehicles, up 103.76 percent from 2023.
It said in its earnings preview yesterday that it expects annual revenue of no less than RMB 30.5 billion in 2024, an increase of no less than 80 percent compared to 2023.
This is mainly due to the company's sales growth of 104 percent in 2024 compared with 2023, it said.
This means that Leapmotor's revenue in the fourth quarter was about RMB 11.8 billion, up 123 percent year-on-year and 20 percent from the third quarter.
Leapmotor expects its gross margin to be no less than 8 percent in 2024, up sharply from 0.5 percent in 2023.
The company said this is primarily due to scale effects from volume growth, product mix optimization, and ongoing cost management efforts.
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