To The Moon

Overview of Personal Perspectives

As a newcomer in the realm of electric vehicle manufacturing, Leap Motor has showcased commendable performance over the past year. With monthly delivery volumes surpassing both NIO and Xiaopeng, its overall delivery numbers have seen a robust increase, driving revenue growth. Benefiting from a significant improvement in gross profit margin in the latter half of the year, Leap Motor achieved a positive full-year gross margin, providing substantial momentum towards profitability. Collaboration with Stellantis is poised to further accelerate overseas market expansion, potentially leading to overall growth.

Financial Analysis: Delivery Growth Driving Performance Improvement, Continued Loss Narrowing

From a revenue standpoint, Leap Motor achieved a revenue of 16.747 billion yuan for the full year, representing a year-on-year growth of 35.2%. Revenue growth primarily stemmed from a rapid increase in overall car sales volume, with monthly delivery volumes surpassing NIO and Xiaopeng at times. However, the company continued to operate at a loss, albeit narrowing it to 4.216 billion yuan compared to the previous year's 5.109 billion yuan, largely due to a significant improvement in gross margin in the latter two quarters.

Operational Analysis: Significant Increase in Delivery Volume, Positive Gross Margin, Stellantis Collaboration Accelerating Overseas Expansion

1. Significant Increase in Delivery Volume: Leap Motor achieved remarkable growth in sales volume this year, garnering widespread attention in the domestic electric vehicle market. The most notable achievement is its repeated monthly sales volume surpassing competitors like Xiaopeng and NIO, showcasing strong market competitiveness and consumer appeal. Despite still lagging behind leading brands like Ideal Auto, Leap Motor's performance has had a significant impact on the landscape of domestic new energy vehicle manufacturers, further intensifying market competition.

2. Positive Gross Margin for the Full Year: Thanks to successful launches of new models, Leap Motor optimized its overall product structure, significantly increasing the average car price and thereby improving gross margin. With gross margin reaching 1.2% in the third quarter and further rebounding to 6.7% in the fourth quarter, the full-year gross margin reached 0.5%. Compared to -15.4% in 2022, the introduction of new models and increased sales volume have led to a better profit situation.

3. Stellantis Collaboration Accelerating Overseas Progress: Initially, Leap Motor faced challenges in stock performance, raising doubts about its future among investors. However, strategic adjustments in market strategy and intensified efforts in product development and production soon yielded significant results. Collaboration with Stellantis and Volkswagen has also garnered attention in the industry, showcasing Leap Motor's technological prowess. Stellantis' investment undoubtedly brings more opportunities for Leap Motor's development. By seizing the opportunity to cooperate with industry giants, Leap Motor can enhance its product quality, technological level, and expand its overseas market presence.

In conclusion, Leap Motor's performance in 2023 demonstrates its potential in the competitive electric vehicle market. With a focus on delivery growth, margin improvement, and strategic partnerships, the company is poised for further expansion and potential profitability. However, challenges persist, particularly in maintaining profitability and navigating market uncertainties. Investors should monitor the company's progress closely, especially its efforts in overseas market penetration and technological innovation.

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