Leapmotor (1Q25 Minutes): How can the 'most competitive player' in new energy make a successful counterattack?
The following is$LEAPMOTOR(09863.HK) FY25Q1 earnings call minutes. For earnings analysis, please refer to《Leapmotor: Competing with Strength, a 'Real Deal' in the Chaotic New Energy Era!》
I. Key Earnings Highlights
II. Detailed Earnings Call Content
2.1 Core Information from Management
1. Products:
a. B10 Model: Equipped with Qualcomm 8650 autonomous driving chip and 8295 smart cockpit chip, featuring stable control and premium luxury configurations, setting a new benchmark for 120,000 RMB SUVs. Users prefer mid-to-high trim models and LiDAR versions, attracting younger demographics.
b. B01 Model: Debuted at the Shanghai Auto Show in April 2025, offering class-leading 650 km range and top-tier smart features, targeting young consumers with a stylish, long-range, and intelligent sedan.
c. Upgraded C10 Model: Built on the new LEAP 3.5 architecture, the only pure EV in its class with 600 km range and full 800V high-voltage fast charging. Upgraded chassis hardware and 220kWh high-voltage electric drive enhance driving dynamics and comfort.
2. R&D Breakthroughs:
a. Leap 3.5 architecture launched on March 10 integrates hardware and software, featuring Qualcomm 8650 autonomous driving chip and 8295 cockpit chip for a unified smart cockpit experience. Centralized domain control upgrades autonomous driving, electric drive, battery, thermal management, and chassis systems.
b. Full-stack in-house R&D amplifies competitive advantages in efficiency:
Completed Qualcomm 8650 chip integration into LEAP 3.5 in 6 months. Combined with Hesai LiDAR, it supports urban memory navigation and NOA features slated for H2 2025 and H1 2026.
Planned 2025 R&D investment exceeds 800 million RMB for autonomous driving, alongside talent acquisition.
3. Sales & Service:
a. As of March, 756 sales outlets and 449 service centers cover 279 cities. The "1+N" store model shows early success with 289 Leapmotor Centers and 467 experience stores. Single-store efficiency rose 50% YoY in Q1 2025. Expansion into lower-tier cities will add 80 new counties by year-end, achieving 90% prefecture-level coverage.
b. Retail metrics: Effective lead follow-up +4%, test drive conversion +9.3%, and order lock-in +1.5% vs. Dec 2024. Daily consultations hit 15,000; test drives average 3,300/day.
c. Service: 15-minute response rate 99.4% (+0.4% QoQ), first-time repair rate 97.8% (+2.1%), 48-hour parts delivery 90.8% (+5.2%).
4. Overseas Expansion:
a. Jan-Apr 2025 exports: 13,632 units (Q1: 7,546), leading among Chinese EV startups.
b. Global footprint: 450+ European and 50 Asia-Pacific outlets as of March, net adding 100 stores QoQ.
c. Localization:
Malaysia: C10 assembly at Stellantis plant starts late 2025.
Europe: Local production begins 2026 to accelerate market penetration.
5. Orders: 18,000+ orders during May 1-5 (single-day peak: 3,700 on May 5), including 1,099 C11 orders.
6. Battery Certification: Leapmotor batteries meet China's new mandatory standards one year early.
2.2 Q&A
Q: Q1 gross margin beat expectations. Outlook for Q2? Any full-year margin guidance revision?
A: Strong Q1 with 87,000 deliveries (exceeding H1 2024 total). Margin growth stemmed from strategic partnerships, though slightly below Q4 2024. Q2 may dip due to product transitions (upgraded C10/C16/C11 launches) but targets 130,000-140,000 deliveries and breakeven. Maintains 2025 guidance: 500,000-600,000 units, 10%-12% margin.
Q: Revenue share from strategic partnerships? Spare parts revenue?
A: Confidential per agreements. Excluding partnerships, Q1 margin was flat QoQ. Promotions offset by cost optimizations. Additional collaborations underway.
Q: Aggressive C10 pricing—can margin exceed legacy models?
C10 upgrades (600km range, 800V charging) came with price cuts. Margin may dip temporarily but recover post-transition.
Q: Details on strategic partnerships?
A: Q1 collaborations focused on joint product development, boosting margin. Future terms vary by partner.
Q: Export margin?
Currently prioritizes volume over margin, covering R&D costs. No near-term profit focus.
Q: Autonomous driving investment feedback? Response to competitor subsidies?
A: Strong B10 orders; safety takes precedence over price adjustments.
Q: SUV model overlap (C10/C11/C16)?
A: Differentiated positioning drives "1+1+1>3" effect—all three topped 10,000 monthly sales in April 2024.
Q: Overseas plant timeline? Tariff strategy?
Malaysia production starts late 2025; Europe mid-2026. Pricing balances brand building and market share. Minimal profit expectations initially.
Q: April export sales?
A: 6,000+ wholesale (3,000 retail), led by upgraded C10.
Q: Local market adaptations?
A: Minor tweaks (e.g., Middle East AC, Brazil emissions) via Stellantis' global expertise.
Q: Partnership gross margin range?
A: Varies by collaboration model. Focus on long-term synergies over short-term margins.
Q: Store expansion plan?
1,000+ stores targeted by 2025 (800+ in Q1). Prioritizes dealer profitability.
Q: B10 production constraints?
A: Battery supply issues resolved by May end. No material shortages for B01 launch.
Q: European pricing regulations?
Monitoring evolving policies. Localization mitigates tariff risks.
Q: Leap 3.5 cost savings?
A: 30%-40% reduction vs. Leap 3 via higher integration and 8650 chip adoption.
Q: Leapmotor International's model?
A: Currently sales-focused. Future may include manufacturing. Early-stage profits reinvested in market expansion.
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Disclosures: Dolphin Research Disclaimer
