Movement Alert|Leapmotor Falls 3.22% in Regular Trading, CSRC Inquiry on Profitability Sustainability Compounds Auto Sector Weakness

Market Focus06-11

On June 11, Leapmotor declined 3.22% in regular trading, trading at 36.16 HKD/share, with trading volume of 124 million HKD.

On the news front, Leapmotor recently received feedback from the China Securities Regulatory Commission regarding its application for a directed share issuance. The regulator specifically questioned the sustainability of the company's profitability, revenue recognition risks, and the fairness of related-party transaction pricing. The inquiry comes at a sensitive time — Leapmotor's Q1 comprehensive gross margin fell to just 9.4%, down 5.5 percentage points year-over-year, while net loss attributable to shareholders widened to 390 million yuan from 130 million yuan in the prior-year period, primarily due to declining gross profit and rising expenses.

Additionally, May national passenger vehicle retail sales dropped 20% year-over-year, intensifying pressure across the auto sector. Among peers, XPeng fell 6.97%, Li Auto declined 4.11%, and BYD lost 2.48%, reflecting broad sector weakness that further weighed on Leapmotor's share price.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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