Description of the event

LEAPMOTOR delivered 40,169 vehicles in November, up 117.0% year on year and 5.2% month on month.

Incident comments

Zero Run's November delivery continued to grow to a new high from month to month, breaking through 0.04 million vehicles and completing the annual delivery target ahead of schedule. LEAPMOTOR sold 40,169 units in November 2024, up 117.0% year on year and 5.2% month-on-month, reaching record highs for many months in a row. Looking at this year, the cumulative sales volume of LEAPMOTOR in January-November was 0.251 million vehicles, an increase of 100.1% over the previous year, and achieved the 2024 0.25 million sales target ahead of schedule. Looking ahead, the company's current orders are hot and continue to grow. Plans for new cars are abundant in the future. Under the strong new car cycle, the company's sales volume and revenue are expected to continue to grow rapidly as overseas sales begin and domestic sales of the high-priced C16 model increase. At the same time, in 2025, LEAPMOTOR set a sales target of 0.5 million vehicles, and continued to achieve rapid year-on-year growth.

LEAPMOTOR's strong new car cycle begins globally, smart driving plans are accelerating, and we are optimistic that future sales and profits will both rise. Currently, the company covers different market segments with a price range of 0.05-0.2 million, and the T03 and C10 go overseas. The company will launch 2-3 products globally every year in the next three years. Among them, it plans to launch 3 B-series models in 2025, at a price of 0.1-0.15 million yuan. Among them, the compact SUV B10 is scheduled to be launched in 2025Q1. On the channel side, Zero Run adheres to the “1+N” channel development model in China. As of the end of September 2024, Zero Sports had 493 sales stores and 362 service stores, covering 204 cities; at the end of October overseas, there were 339 European stores, and the world is expected to exceed 500 by 2025. In terms of smart driving, the company has increased its investment in the smart driving field. It plans to expand the smart driving team to 500 people by the end of 2024, and install advanced smart driving functions in high-speed and urban areas based on the “End-to-End Big Model” on the new LEAP 3.5 framework in the first half of 2025.

Continued strong domestic new car cycles and the ultimate price-price ratio drive continued sales growth, and overseas reverse joint ventures with Stellantis began a major global journey. 1) Domestic: The company uses its technical heritage to create the ultimate price-price ratio. Its competitive advantage is strong. Sales have grown rapidly in recent years, and the proportion of high-priced models has continued to rise, driving steady improvement in financial indicators. The strong new car cycle is expected to drive sales to continue to rise in the future, and I am optimistic that the company will turn losses into profits domestically as soon as possible. 2) Overseas: The company cooperated with Stellantis, the fourth largest automobile group in the world, to use its strong post-sales network, factory capacity and other global resources to go overseas with low initial investment, faster layout, and more flexible adjustments. In the future, export, SKD, and localized production of products will be used to go overseas, opening up a large space to go overseas, and I am optimistic that high overseas bicycle profits will bring significant profit contributions. The company's sales volume for 2024-2026 is expected to be 0.29, 0.5, and 0.75 million vehicles, respectively.

Risk warning

1. The global economic recovery was weaker than expected;

2. Increased competition in the industry weakens corporate profits.