Leapmotor has once again delivered a very impressive performance! Despite it being the off-season for car sales in the first quarter, not only did sales perform exceptionally well (though this was already known), but the gross margin also unexpectedly continued to improve quarter-over-quarter!

With an average selling price of just 114,000 yuan (estimated including service business), the overall gross margin reached 15%, setting another historical record!

In the first quarter, while domestic models continued to see significant price cuts, Leapmotor's gross margin still rebounded by 1.6 percentage points quarter-over-quarter! The main reason for this rebound, as mentioned in the company's announcement, was strategic cooperation. Dolphin Research believes this may be due to technology service fees received from the joint development of models with FAW (light-asset income), though specifics may require further company explanation.

Finally, with both revenue and gross margin exceeding expectations (likely due to this strategic cooperation), the net loss was only -100 million yuan, while major institutions expected a net loss of around -300 million yuan. Leapmotor remains a "small leader" in continuous growth.$LEAPMOTOR(09863.HK)