November 11th marks a significant day for Leap Motor, as the electric vehicle manufacturer released its earnings report for the third quarter of 2024. The numbers reveal an impressive growth trajectory that sends ripples through the auto industry, capturing the attention of investors and consumers alike.

The earnings report indicates that Leap Motor generated an astonishing income of approximately 986 million RMB, reflecting a year-over-year growth of 74.3% and a quarter-over-quarter increase of 83.9%. Such robust financial performance is exciting for stakeholders, especially considering that the gross profit margin stands at 8.1%. In a notable shift, the adjusted net loss has contracted to 540 million RMB, a positive change from previous quarters.

What's particularly striking in this report is the transformation in the company's gross profit margins, which have soared from a modest 2.8% in the prior quarter

Leap Motor attributes this enhancement to a range of strategic measures, including optimizing its product sales structure, staying vigilant with cost management, and benefiting from the economies of scale generated by increased sales volumesThe company has averaged a gross profit margin of 4.8% from January to September 2024, with ambitious expectations to exceed its annual targets.

Breaking down the sales figures, Leap Motor sold a total of 172,861 vehicles in the first three quarters of 2024, with a striking 86,165 units sold in the third quarter alone—marking a staggering 94.4% growth year-on-yearThe C-series SUVs have emerged as the star performers, contributing approximately 78.3% to overall salesNotably, in October alone, the company recorded 38,177 new orders, a compelling testimony to the sustained demand for their models, particularly the C11, C10, and C16, each attracting over 10,000 new orders.

These three models of the C-series significantly cater to diverse consumer preferences

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The C10, known for its economic affordability, is priced between 128,800 and 168,800 RMB; the C11 gears toward a more performance-oriented and luxurious feel, with a price range spanning from 148,800 to 205,800 RMB; while the C16 excels in spaciousness and high-end configurations, retailing between 155,800 and 185,800 RMBThe company claims this trio of SUVs forms a well-balanced portfolio that meets the varied demands of consumers across different market segments.

Expanding its footprint, as of the end of September 2024, Leap Motor's distribution network within China reached 204 cities, featuring 493 sales outlets and 362 service stationsThis extensive coverage enhances the accessibility of their products to an increasingly wider customer base.

On the research and development front, Leap Motor invested significantly in innovation and technology during the third quarter, with R&D expenses amounting to 780 million RMB—showing a robust growth of 64.9% year-over-year and an 11.4% increase from the previous quarter

These expenditures reflect about 8.1% of the total revenue, highlighting the company's commitment to innovation, evidenced by the heightened focus on the development of new models and smart driving technologies.

Contrasting these figures with competitors like NIO, Xpeng, Li Auto, and Zeekr, it's clear that Leap Motor is slightly trailing in R&D investment as these companies recorded over 13% of their revenues allocated to researchFor example, NIO’s R&D investment stood at 3.22 billion RMB in Q2 2024, constituting approximately 18.5% of their total revenue.

Looking to the future, Leap Motor is strategizing a comprehensive product lineup, including the A, B, C, and D series, aimed at covering price segments from 80,000 to 300,000 RMBThis ambitious plan reflects the company’s vision of expanding its product offerings while catering to a broader array of consumer demands.

On the international stage, Leap Motor has recently made strides, with two of its models, the T03 and C10, achieving European Union WVTA certification

The official launch of these models in Europe was notably facilitated by Leap Motor International on September 24, 2024. The company's founder and CEO, Zhu Mingjiang, has set a sales goal of 6,000 to 7,000 vehicles in overseas markets within the fourth quarter of this yearTo navigate the complexities of European tariffs, Leap Motor has meticulously priced its vehicles, even if it means sacrificing some profit margins.

Recent appearances of the B10 model at the Paris Auto Show have also raised expectations among industry observersAs highlighted by Zhou Ying, the General Manager of Leap Motor's marketing department, the company views international expansion and the B-series as pivotal growth avenues for the future, akin to the success NIO and Xpeng have enjoyed with their respective models.

The B10 stands out as Leap Motor’s first international product tailored to meet global demand, equipped with advanced Qualcomm SA 8295P cockpit chips and AI models that leverage lidar and the latest Qualcomm 8650 driving chips

These technologies promise to facilitate advanced driver-assistance features for both urban and highway navigation.

Further emphasizing the significance of the B-series, Leap Motor is planning to unveil three models within this lineup over the course of 2025. The goal is ambitious: to capture market shares in the fiercely competitive range of 100,000 to 150,000 RMB.

During the earnings call, Zhu Mingjiang asserted that the expected sales volume for the B-series could reach twice that of the C-series while maintaining stable profit marginsBy the end of October 2024, Leap Motor International had already launched 339 dealerships across Europe, all designed to accommodate both sales and after-sales servicesThere are plans to expand into the Asia-Pacific, Middle Eastern, African, and South American markets, with a target of establishing over 500 outlets by 2025.

In a strategic collaboration forged in 2022 with Stellantis, Leap Motor aims to reinforce its overseas sales through a synergy that encompasses channel networks, after-sales service, automotive finance, logistics, and parts supply