Leapmotor has emerged as the second new electric vehicle (EV) manufacturer to achieve full-year profitability. According to its 2025 financial report released on March 16, the company reported a net profit attributable to equity holders of RMB 540 million, a stark contrast to the net loss of RMB 2.82 billion recorded in 2024. Currently, Li Auto and Leapmotor are the only players in the industry to have achieved full-year profitability, while NIO and XPeng posted single-quarter profits last year and are now striving for full-year profitability.

In 2025, Leapmotor’s total revenue soared to RMB 64.73 billion, marking a 101.3% year-on-year increase. Revenue from electric vehicle and component sales reached RMB 62.01 billion, up 96.0% from RMB 31.63 billion in 2024. Meanwhile, revenue from services and other sales surged by 413.2% to RMB 2.72 billion, compared to RMB 530 million in 2024. This growth was primarily fueled by a significant uptick in overseas vehicle sales, which, in turn, boosted related carbon credit trading revenue.

Data reveals that Leapmotor delivered a total of 596,555 new vehicles last year, a 103.1% year-on-year increase, ranking it first among new EV makers, with a peak monthly delivery exceeding 70,000 units. Additionally, the company’s annual exports reached 67,052 units, and as of February this year, cumulative exports have surpassed 100,000 units.

In 2025, Leapmotor’s gross profit climbed to RMB 9.41 billion, a 249.8% increase from RMB 2.69 billion in 2024. The gross margin stood at 14.5%, a 6.1 percentage point rise from 8.4% in 2024, setting a new annual record. Leapmotor attributed this achievement to ongoing cost management, product mix optimization, and revenue from other services. Notably, the gross margin for the fourth quarter of 2025 reached 15.0%, a new quarterly high. From a gross margin perspective, Leapmotor, renowned for its affordable vehicles, has actually surpassed NIO’s full-year gross margin for 2025 and is closing the gap with Li Auto’s.

Regarding R&D investment, Leapmotor’s research and development expenses last year amounted to RMB 4.29 billion, a 47.9% increase from RMB 2.90 billion in 2024. This rise was primarily due to intensified R&D efforts and team expansion. Financial reports indicate that as of December 31, 2025, Leapmotor employed 28,785 full-time staff, with employee benefit expenses totaling approximately RMB 7.04 billion during the reporting period. As of the same date, Leapmotor’s cash and cash equivalents, restricted cash, financial assets measured at fair value through profit or loss, and bank fixed deposit balances amounted to RMB 37.88 billion.

01

Four New Models, Aiming for One Million Sales

Leapmotor’s ambition to challenge one million annual sales in 2026 was announced last year. Given the sales performance in January and February this year, there are concerns about whether this target can be met, as it necessitates monthly sales exceeding 80,000 units. However, Leapmotor fell short in the first two months of 2026, with a combined delivery volume of 60,126 units. Moreover, the phase-out of subsidies and a cooling market pose significant challenges for new EV makers, including Leapmotor. So, will Leapmotor revise its target?

At the financial report briefing, Leapmotor Chairman Zhu Jiangming provided a clear response: no. Zhu explained that global EV companies should aspire to annual sales exceeding 4 million units, and to reach this milestone, Leapmotor must first achieve one million annual sales. “This is indeed very challenging. Everyone acknowledges that the auto industry will face a tough first quarter, but we still hope to fulfill our promised goals,” Zhu stated.

To achieve this target, Leapmotor plans to expedite product launches and expand overseas. Firstly, it aims to construct a more comprehensive product lineup. In addition to updating its A, B, and C series models, Leapmotor will introduce its first D-series model, the Leapmotor D19, positioned as a flagship SUV. The company also plans to launch its first MPV model, the D99, to cater to a broader consumer base, along with an A0-class compact car. All these products have already been approved by the Ministry of Industry and Information Technology.

Among them, the A05 is expected to be the most popular model. With a body length of 4,200mm and a wheelbase of 2,605mm, it falls within the standard A0-class size. Notably, the vehicle offers optional laser radar and side cameras on the front fenders, enabling high-speed and urban navigation-assisted driving—making it likely the only model in its class equipped with laser radar. Outsiders speculate that the “05” designation suggests a price point lower than the upcoming A10 but higher than the most affordable T03. The A05’s market positioning is likely akin to the Geely Starry.

The Leapmotor D99 could be the extended-range MPV with the largest battery. The D99 extended-range version is equipped with an 80kWh battery, offering a WLTC pure electric range of up to 352km. The pure electric version features an even larger 115kWh battery and is built on a 1,000V high-voltage architecture. “(This year) we have four new models, and we aim to boost sales of existing models while ensuring each new model sells over 10,000 units,” Zhu said. Beyond market expansion, Leapmotor continues to place its hopes for growth and profitability on R&D and technology.

“The proportion of core components we self-develop and manufacture now accounts for 65% of the vehicle’s BOM cost. Assuming an average supplier gross margin of 15%, this gives Leapmotor a 10% cost advantage over outsourcing,” Zhu said. “As Leapmotor’s sales volume continues to rise, this advantage will become increasingly evident, serving as a key competitive edge for our future.”

02

Doubling Down on Overseas Markets

Overseas markets are a key focus for 2026. In 2025, through its partnership with overseas shareholder Stellantis Group, Leapmotor achieved 67,000 overseas sales, becoming the leader among new EV makers in international expansion. Moreover, it swiftly achieved profitability thanks to Stellantis’ support. “Our main markets are currently in Europe, with expansions into South America, the Middle East, and Southeast Asia. We’ve invested very little, and Leapmotor International is already profitable,” Zhu said.

In 2026, overseas expansion remains a top priority for Leapmotor. Cao Li, Senior Vice President of Leapmotor, stated that the company aims to double its overseas sales in 2026. “While the absolute volume may not be that high, we hope to maintain our current growth trajectory.” This implies a target of over 120,000 units in overseas markets for 2026, compared to over 900,000 units domestically. So, what underpins Leapmotor’s ambition to achieve greater overseas sales and generate more profits?

Leapmotor CFO Li Tengfei revealed that the company’s CKD project in Spain has been approved, with plans to introduce the Leapmotor B10 and B05. The B10 is expected to commence production in October this year, while the B05 will begin production in 2027. He also disclosed that the battery factory supporting these two models has been selected and is currently undergoing factory renovations, with trial production of the first battery pack scheduled for April 2026 and full-scale production starting in July. Regarding cell procurement, Li said initial supplies will primarily come from China, though local sourcing efforts are underway.

In terms of overseas channels, Leapmotor has established approximately 900 outlets across around 40 international markets, including Europe, the Middle East, Africa, South America, and Asia-Pacific, offering both sales and after-sales services. In 2026, the company plans to further expand its presence in regions where it has a relatively small footprint in Europe and achieve broader coverage. Meanwhile, the number of channels in the Asia-Pacific region and South America will also grow rapidly in 2026.

On March 16, Leapmotor disclosed that it is actively exploring diversified cooperation with Stellantis N.V. in vehicle and component manufacturing, with some projects already in advanced negotiations. Li said component cooperation orders have been arriving since 2025, but most projects will begin mass production in the second half of this year. As a result, Leapmotor will generate export revenue this year, though the overall scale will not be particularly large, with estimated revenue below RMB 1 billion. A more significant revenue surge is expected in 2027.

Additionally, during its cooperation with FAW, Leapmotor revealed that the first model developed jointly is expected to enter full-scale production in the third quarter of this year, with Leapmotor responsible for R&D and manufacturing. “Since this model is for overseas markets, Leapmotor will also handle its overall production,” Li disclosed, adding that the vehicle is expected to launch overseas around the end of this year. However, as the launch falls in the fourth quarter, it will have minimal impact on this year’s operating results. From these perspectives, 2026 is poised to be a year of explosive growth for Leapmotor in overseas markets.