Leapmotor said it expects to exceed its full-year sales target of 250,000 units this year, with gross margin lifting further and net losses narrowing in the fourth quarter.
Leapmotor (HKG: 9863), the Chinese new energy vehicle (NEV) maker backed by Stellantis NV (NYSE: STLA), saw strong financial performance last quarter, with vehicle deliveries reaching a record high.
The company reported record revenue of RMB 9.86 billion ($1.37 billion) in the third quarter, up 74.3 percent year-on-year and up 83.9 percent from the second quarter, according to its unaudited results announced today.
The increase was mainly due to higher product deliveries and the launch of the C16 model driving up the average selling price of the product portfolio, Leapmotor said.
In the third quarter, Leapmotor delivered a record 86,165 vehicles, up 94.39 percent year-on-year and up 61.70 percent from the second quarter, according to data compiled by CnEVPost.
Sales of the higher-priced C-series models contributed 78.3 percent of the quarter's sales, according to the company.
The C-series models are all powered by Leapmotor's own Leap 3.0 technology architecture, and after that series, the company will launch the B-series models in domestic and international markets, it said.
The launch of the C16 did not affect the sales of the C10 and C11 SUVs, but instead brought in more traffic because of the buzz around that new model, Leapmotor said.
Leapmotor launched the C16 on June 28, offering battery electric vehicle (BEV) and extended-range electric vehicle (EREV) options at a starting price of RMB 155,800 yuan.
The company reported a net loss of RMB 690 million in the third quarter, down 30 percent year-on-year and down 42.44 percent from the second quarter.
It posted a record high gross margin of 8.1 percent in the third quarter, surpassing the previous record of 6.7 percent in the fourth quarter of 2023.
Leapmotor's research and development expenditure in the third quarter were a record RMB 780 million, an increase of 64.56 percent year-on-year and an increase of 11.22 percent from the second quarter.
The increase in R&D spending was mainly due to an increase in new models and parts programs, as well as growth in its investment in smart driving technology, Leapmotor said.
Leapmotor said it expects to exceed its full-year sales target of 250,000 units this year.
In the January-October period, the company delivered 211,038 vehicles, up 97.18 percent year-on-year, according to data compiled by CnEVPost.
Leapmotor said it will maintain a steady upward trend in gross margin in the fourth quarter, and net losses are expected to continue to narrow.
The company will unveil its new model, the B10, the first to be built on the Leap 3.5 architecture, in China on November 15, the first day of the Guangzhou auto show.
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