Beijing (Gasgoo)- On November 11, Zhejiang Leapmotor Technology Co., Ltd. (Leapmotor) released its financial results for the third quarter (Q3) of 2024, reporting revenue of 9.86 billion yuan, marking an 83.9% surge quarter-on-quarter and a 74.3% spike year-on-year.
In the same quarter, the company's net loss attributable to shareholders narrowed to 690 million yuan in Q3, down 30.3% from the 990 million yuan in Q3 2023 and 42.5% from the 1.2 billion yuan in Q2 2024.
Leapmotor attributed the reduced losses to steady growth in sales and revenue, improved gross margins, and tighter cost controls. The company's gross margin reached 8.1% in Q3, which grew from the 2.8% in Q2 this year. The positive outcome is largely due to Leapmotor's optimized product mix, effective cost management, and economies of scale from higher sales volumes.
In October alone, Leapmotor delivered 38,100 vehicles, representing a 109.7% year-on-year soar, consecutively refreshing its monthly sales records. For August, September, and October this year, Leapmotor achieved monthly sales exceeding 30,000 vehicles, bringing the company's cumulative sales for the first ten months to over 200,000 vehicles.
Looking ahead to Q4 2024, Leapmotor expects to surpass its 250,000-unit annual sales target, with gross margins expected to maintain an upward trend and net losses to further narrow.
During Leapmotor's Q3 earnings call, founder, Chairman, and CEO, Zhu Jiangming, projected substantial quarter-on-quarter sales growth through year-end. The company anticipates an average monthly sales volume of 40,000 units in 2025, and an annual sales target of 500,000 units or more. In the meantime, Leapmotor's gross margin may surpass 10%.
