LEAPMOTOR's stock price plummeted 9.82% during Monday's intraday trading session, as the market reacted negatively to the company's recently released first-quarter financial results.

The sharp decline follows the company's Q1 earnings report which showed revenue of RMB 10.82 billion, representing an 8.0% year-over-year increase but a significant 48.5% quarter-over-quarter decrease that missed market expectations. More concerning was the net loss which widened to RMB 390 million from RMB 130 million a year earlier, ending three consecutive quarters of profitability. The company's gross margin fell sharply to 9.4% from 14.9% in Q1 last year and 15.0% in Q4, primarily driven by a rising sales mix of lower-priced B-platform models and the absence of strategic cooperation revenue.

Despite maintaining full-year targets of 1 million unit deliveries and RMB 5 billion net profit, the company's CFO acknowledged that profit targets carry risk. The broader automobile manufacturers sector also showed weakness during the session, adding to the downward pressure on LEAPMOTOR's stock price.