Gasgoo Munich-On August 24, Leapmotor (9863.HK) released its 2026 semi-annual financial report. The document reveals that Leapmotor generated 38.11 billion yuan in revenue for the first half of 2026, a 57.2% year-on-year increase and a record high for the period. Net profit was 210 million yuan, up from 30 million yuan a year earlier, marking the third consecutive profitable half-year.Image Source: LeapmotorOn the same day, Leapmotor announced a deepened strategic partnership agreement with China FAW. Under the agreement, the two parties will engage in extensive collaboration across capital, new energy vehicles, intelligent driving, powertrains, power batteries, smart chassis, manufacturing equipment, lightweight components, embodied robots, and finance. The aim is to build a comprehensive cooperation framework integrating "capital + industry + product + technology + ecosystem."During an earnings call later that day, Leapmotor’s management discussed full-year profit guidance, overseas sales targets, intelligent driving plans, and new business strategies.Revenue Hits Record High, But Full-Year Profit Target Cut to 3 Billion YuanAccording to the disclosure, Leapmotor’s revenue for the first half of 2026 reached 38.11 billion yuan — a record high for the period — driven primarily by increased deliveries of vehicles and parts. Second-quarter revenue stood at approximately 21 billion yuan, up about 23% quarter-over-quarter. First-half net profit was 210 million yuan, a roughly 600% year-on-year surge, marking the third consecutive half-year of profitability.Image Source: LeapmotorIn terms of gross margins, the comprehensive gross margin for the first half was 11.7%, down 2.4 percentage points from the 14.1% posted in the same period of 2025, mainly due to rising raw material costs and changes in product mix. By quarter, the first quarter saw a gross margin of 9.4%, rebounding to 12.6% in the second quarter — an improvement of 3.2 percentage points sequentially.“As scale drives cost efficiency and we optimize material and manufacturing expenses, we expect gross margins to keep improving,” Leapmotor CFO Li Tengfei said on the call.In the first half of the year, Leapmotor delivered 356,487 units globally, a 60.8% year-on-year jump. From January to May, its terminal registrations ranked fourth among global new energy passenger vehicle brands. July alone saw 101,267 units delivered, making Leapmotor the first domestic startup to exceed 100,000 monthly deliveries.Image Source: LeapmotorOn the expense side, R&D spending for the first half rose 22.8% to 2.32 billion yuan, driven by intensified investment and an increase in R&D personnel. Sales and distribution expenses totaled 2.17 billion yuan, while administrative expenses reached 890 million yuan. As of June 30, Leapmotor’s cash and cash equivalents, restricted funds, financial assets at fair value through profit or loss, and fixed-term deposits totaled 38.59 billion yuan, with operating cash flow at 2.17 billion yuan.Regarding full-year profit guidance, Li noted on the call that achieving the initial target of 5 billion yuan in net profit set at the beginning of the year is now difficult, largely due to rising raw material costs. The company expects full-year net profit to be approximately 3 billion yuan, with a comprehensive gross margin of 13% to 14% and a vehicle gross margin of 10% to 11%.2027 Set to Be a Major Year for Products; Robots in the WorksRegarding its product matrix, Leapmotor has completed the layout of its A, B, C, and D series, covering the 60,000 to 300,000 yuan price range. The A10 produced its 100,000th unit 135 days after launch, ranking first in sales among Chinese brand SUVs for three consecutive months from May to July; the A05 starts at 63,900 yuan. The B series B01 and B10 feature full-domain 800V architecture and 3C fast charging. The C series completed a refresh in June, with global monthly sales exceeding 30,000 units; the C11 has accumulated approximately 350,000 units. The D series D19 has been the sales champion among large SUVs under 400,000 yuan for three straight months, with July deliveries hitting 10,043 units; the first batch of D99s had an average price exceeding 300,000 yuan.On the 2027 product roadmap, Li stated: “Leapmotor will launch more new models in 2027 than in 2026 — it will be a very big year for products. The D series will see new product launches, and the C series will see both new products and next-generation replacements. These next-gen products represent our future lineup, and both the C and B series will receive them.” The company is currently optimizing the launch timing for each model.In terms of technical R&D, the LEAP 4.0 central domain control has been equipped in the D19, achieving cockpit-driving integration via dual Qualcomm 8797 chips. City NOA has been opened to the entire lineup, with nationwide capabilities for the LEAP 3.0 architecture rolling out in the third quarter. It is reported that an annual tech launch will be held on September 16 to unveil a new architecture for assisted driving and the latest achievements in the electric powertrain sector. Li indicated that intelligent driving products under the new architecture offer a significant improvement over existing offerings.Leapmotor has laid out plans across L2+, L3, and L4 intelligent driving, as well as hardware and smart chassis. Regarding input-output efficiency, Li explained that Leapmotor has continued to invest in intelligent driving; after confirming the technical route in the second half of 2025, the company increased talent and capital investment. Combined with data accumulated from a large fleet, its intelligent driving capabilities have improved significantly this year.Regarding embodied robots, corporate records show that Zhejiang Lingsheng Power Technology, a Leapmotor subsidiary, wholly established Huzhou Lingsheng Precision Manufacturing in July with a registered capital of 210 million yuan. Its business scope covers industrial robot manufacturing and intelligent robot R&D. Li remarked: “New energy vehicle companies, especially those with full-stack self-research capabilities, are well-positioned to develop embodied robots. Leapmotor has its own plans, and in the near future, you will receive our formal announcement regarding specific information on robots.”Exports Double as Localized Production Rolls Out in PhasesOverseas markets served as the core growth engine in the first half. Exports reached 96,294 units, a 372.6% year-on-year surge, already surpassing the total export volume for the full year of 2025 and accounting for 27% of total sales. Cumulative exports from January to July hit 113,863 units. Li expects full-year overseas sales to reach 200,000 units, exceeding the initial target range of 100,000 to 150,000 units.Image Source: LeapmotorSpecifically, Europe is the primary market. Leapmotor holds a market share of over 25% in Italy’s pure electric market, ranking first consecutively; in June, it became the best-selling Chinese EV brand in the German market. By the end of June, Leapmotor International had established over 1,000 sales and service outlets in more than 45 international markets, including over 900 in Europe.The target for 2027 is set between 350,000 and 400,000 units. Li stated that Europe will remain the core market, while the share of South America will further increase, and the company will continue to expand in Southeast Asia, Asia-Pacific, and Australia.In terms of channels, the next expansion focus will be on Eastern Europe, Northern Europe, and South America. The company entered Argentina last month, while expansion into Brazil, Chile, and Uruguay is proceeding simultaneously.Regarding shipping capacity, Li responded that Roll-on/Roll-off (Ro-Ro) capacity was generally tight in the first half. Through deep cooperation with major shipping companies and Stellantis, shipping speeds have improved since March and April, ensuring the achievement of the 200,000-unit annual target.Localized production is advancing using Stellantis Group factory resources. The B10 model will start production in the third quarter at the Zaragoza plant in Spain; the B05 will enter trial production this year and mass production in 2027. At the Gurun plant in Malaysia, the C10 is already in mass production, and the B10 will start production in the third quarter. The Goiânia plant in Brazil plans to mass produce the B10 in the second half of 2027.Li revealed that in October, Leapmotor will join Stellantis executives at the Spanish plant for the B10 production launch ceremony. Next year, the main model sold locally will be the B10, with an estimated volume of around 50,000 units, which can be adjusted if tariff policies change. He noted that while localization optimizes tariff costs, local parts procurement costs are higher than in China; after offsetting these, the improvement in gross margins is limited, so net profit gains will primarily manifest in the medium to long term.Regarding the supply chain, Stellantis’s local resources are a key option, but Leapmotor will not rely entirely on them, instead selecting solutions by comprehensively evaluating cost and quality. As for the profitability of the partnership with Stellantis, he stated that details will be disclosed after implementation.Conclusion: In the first half of 2026, Leapmotor led startups with 356,500 units sold, achieving both consecutive profitability and a doubling of exports, further establishing its position as the fourth-largest global new energy passenger vehicle brand. The deepened strategic partnership signed with China FAW on the same day expands cooperation from joint vehicle development to capital, technology, and industrial ecosystem dimensions, laying the foundation for the next stage of technical synergy and resource integration.However, it is worth noting that fluctuations in raw material costs, the impact of product mix changes on gross margins, and the balance of input and output during the ramp-up of overseas localized production remain variables to watch. At present, Leapmotor is at a turning point, shifting from pure scale expansion to a balance of scale and quality. The timing of product launches, the effectiveness of intelligent driving solutions, and the progress of overseas localized production will be the key factors determining whether this transition is successfully completed.
