Abstract

LEAPMOTOR will release its second-quarter 2026 results on August 24, 2026 post-Market; this preview summarizes last quarter’s performance and the current quarter’s revenue, margin, net profit, and EPS outlook alongside recent institutional views.

Market Forecast

Based on the company’s guidance framework and market tracking, LEAPMOTOR’s current quarter revenue is forecast at 12.61 billion RMB, implying 110.27% year-over-year growth; consensus expects margin normalization from mix and cost curves, while adjusted EPS is expected to improve year over year. The company’s main business remains Production, Research and Development and Sales of New Energy Vehicles; ramp progress and pricing are viewed as the near-term highlights. The most promising segment is New Energy Vehicles, where continued scale-up supports revenue expansion; the segment delivered 64.73 billion RMB over the last fiscal period, and the year-over-year acceleration is expected to continue into this quarter.

Last Quarter Review

In the previous quarter, LEAPMOTOR posted a gross profit margin of 14.79%, GAAP net profit attributable to the parent company of 0.25 billion RMB with a net profit margin of 1.25%, while adjusted EPS was not disclosed; quarter-on-quarter net profit change was 0.00%. Operating highlights included stable gross profitability amid volume execution and controlled operating expenses. Main business performance was concentrated in Production, Research and Development and Sales of New Energy Vehicles, which generated 64.73 billion RMB in revenue.

Current Quarter Outlook

Main business: core vehicle sales and delivery ramp

LEAPMOTOR’s core business is the Production, Research and Development and Sales of New Energy Vehicles, and the earnings path in this quarter hinges on deliveries and model mix. The revenue forecast of 12.61 billion RMB aligns with an aggressive ramp path that typically requires sustained order inflow and stable retail pricing. Within this framework, margin stability depends on procurement savings and manufacturing yield improvements. Any evidence of higher-trim mix or a favorable export blend would support gross profit relative to prior quarters. Conversely, discounting or incentive intensity could weigh on unit economics and net margin in the near term.

Most promising growth driver: scale benefits and cost-down trajectory

The most visible growth lever is operating scale, which pushes fixed-cost absorption higher and reduces per-unit costs across powertrain, battery, and electronics systems. The large year-over-year revenue growth expectation suggests the company is moving along the cost curve, which can reinforce gross margin resilience even if average selling prices are pressured. Supply-chain localization and design-to-cost initiatives could add incremental savings; if these coincide with higher factory utilization, EBIT conversion should improve. This quarter, investors will watch whether the forecast growth translates into better contribution margins after logistics and warranty accruals.

Key stock-price swing factors: pricing, exports, and margin cadence

Pricing strategy in the domestic market remains a central swing factor, as broader EV industry competition can tighten spreads. Export volumes and partnerships can diversify demand and potentially support blended ASPs, offering a cushion to domestic price moves. Margin cadence will reflect the balance between cost-down gains and any marketing or channel investments. Clarity on unit delivery momentum and inventory days can guide sentiment on the sustainability of current growth expectations. Communication around production schedules and component availability will also be important for assessing near-term volatility.

Analyst Opinions

Most institutional commentary in recent months tilts constructive, emphasizing revenue scale-up and improving cost efficiency as the primary supports for earnings trajectory. Positive views argue that the current quarter’s revenue inflection, if achieved, should signal healthier operating leverage into the second half of the year. Analysts also highlight that sustained gross margin above the low-teens would indicate disciplined pricing and successful cost-down execution. On balance, the bullish camp expects better profitability sensitivity to volume than previously assumed, framing upside risk to the full-year margin outlook if delivery cadence stays firm.