- Leapmotor reported Friday its first-quarter net loss widened to 390 million yuan ($57.3 million), compared with a net loss of 130 million yuan a year earlier.
- Its first-quarter gross margin dropped significantly to 9.4% from 14.9% in the same period last year.
Leapmotor's (HKEX: 9863) shares traded in Hong Kong tumbled on Monday, largely driven by a significant widening of the company's first-quarter net loss.
As of press time, the stock plunged 11.15% in early trading to HK$40.18 per share, touching its lowest level in more than two months.
The Stellantis NV-backed Chinese EV maker reported on Friday that its first-quarter net loss widened to 390 million yuan ($57.3 million), compared with a net loss of 130 million yuan a year earlier.
The year-on-year increase in loss was primarily due to a decline in total gross profit and an increase in expenses. Its first-quarter gross margin dropped significantly to 9.4% from 14.9% in the same period last year.
Despite margin pressures, Leapmotor still saw revenue growth in the first quarter. Its revenue for the period reached 10.82 billion yuan, marking the company's best-ever first-quarter performance.
The revenue growth was driven by robust vehicle deliveries, with the company handing over 110,155 vehicles in the first quarter.
Overseas markets are emerging as a key business growth engine for the startup. Leapmotor's overseas exports reached a record 40,901 units in the first quarter, accounting for 37.1% of its total sales.
This sales momentum continued into the second quarter. Leapmotor delivered a record 71,387 vehicles in April, with overseas sales reaching 14,225 units.
After seeing strong growth in its main brand, Leapmotor confirmed it is planning to launch a second brand. A company executive said on a call that products from the new brand are expected to debut as early as the end of this year, and could officially hit the market in the middle or second half of next year.
Reports last month suggested the new independent brand will focus on models priced above 300,000 yuan. Currently, Leapmotor's lineup primarily consists of affordable mass-market models.
With Leapmotor's results out, investors will also be closely watching the financial performance of its local rivals. Nio Inc (NYSE: NIO) is scheduled to post its earnings on May 21.
Subsequently, other Chinese EV makers will roll out their latest earnings to the market. Xpeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) are both slated to release their first-quarter financial reports on May 28.
($1 = 6.8099 yuan)
