Leapmotor Earns 210 Million in Half a Year — How Is the Quality? How Does It Compare to Li Auto and Nio?

Mid-August, Leapmotor released H1 2026 financial performance. Revenue 38.11 billion, YoY up 57.2%, Net Profit 210 million, YoY up 530%. For the first time achieved semi-annual profitability, on the surface looks like a beautiful report card. But capital market reaction was flat, stock price didn't move much. Why? Because industry insiders are all looking at another number — Gross Margin 11.7%, down 2.4 percentage points YoY. Made money, but not much, and the way of making money is a bit forced. Today let's open up Leapmotor's accounts to see, alongside Li Auto, Nio, Xpeng do a horizontal comparison, see exactly how is this 210 million's profit quality.

38.1 Billion Revenue Breakdown, Q1 Crash Q2 Recovery

First half 38.1 billion revenue, growth rate indeed bright, but breaking down shows huge gap between two quarters. Q1 revenue only 10.8 billion, net loss 390 million, gross margin only 9.4%, at that time outsiders once questioned if Leapmotor fell into a vicious cycle of "selling more losing more". Q2 suddenly turned around, revenue 27.29 billion, QoQ growth over 150%, single quarter net profit 600 million, gross margin rebounded to 12.6%. The problem is Q2 explosion mainly relied on volume pull of C16 and C10 two models, especially C16 this 150,000 class six-seat SUV directly sold explosively. But Leapmotor average selling price only around 110,000, bottoming among new EV makers. Same profit volume, Nio sells one equals Leapmotor sells nearly two, this is Leapmotor's core contradiction: sales went up, but single car profitability is weak. And first half overall gross margin 11.7% still 2.4 percentage points lower than last year, shows price promotion cost is showing.

210 Million Net Profit Quality, Horizontal Comparison of Four Companies

Put Leapmotor, Nio, Xpeng, Li Auto four new EV makers first half profit levels together look, very clear. Leapmotor first half net profit 210 million, only one profitable, but don't rush to clap — 210 million divided by 356,500 delivery volume, single car profit only around 590 yuan. Look at other three: Nio although still loss, but single car average price over 200,000, auto gross margin 19% (Q1), selling one loss amount also narrowing; Xpeng first half net loss 3.12 billion, but comprehensive gross margin 20.7%, auto gross margin 12.1%, key is service business contributed nearly half gross profit, profit margin as high as 75.1%, shows Xpeng found money making way outside selling cars; Li Auto most tragic, vehicle gross margin directly dropped to 6.1%, H1 net loss 2.29 billion, pure EV transformation pain much more violent than expected, i6 accounts for sales 62% but L Series completely crashed. Leapmotor is the only one making money among four for sure, but this profit quality, to be honest not high. Annual profit expectation already down from 5 billion to 3 billion, gross margin goal also from 13—14% lowered, management in earnings call said price reduction is active choice, to grab 100,000-150,000 class market share, but this price interval profit space originally thin as blade.

Going Overseas 96,000 Units, Is the Biggest Variable

Leapmotor first half another number worth attention is export 96,300 units, YoY up 372.6%, accounts for all delivery 27%. This proportion in new EV makers leads far. Leapmotor going overseas biggest backer is Stellantis Group cooperation, directly borrow its global channels, 45 overseas markets, over 1000 sales outlets, not paving from scratch. In Southeast Asia, South America, Europe etc markets, Leapmotor price advantage more obvious than domestic. And Leapmotor promoting Malaysia, Spain, Brazil three places localization production, avoiding tariff risk. Overseas car pricing usually higher than domestic by 30—50%, this means overseas profit contribution far exceeds sales proportion. If saying going abroad is Leapmotor biggest variable, then Stellantis is that leverage.

60.8 Billion Market Cap, Is It Expensive?

Leapmotor current market cap 60.8 billion HKD, TTM PE ratio over 70 times. Zhu Jiangming said Leapmotor worth at least 200 billion, but from financial view, according to 3 billion annual profit expectation, 70 times PE close to Tesla level — they have FSD and Robotaxi stories supporting, Leapmotor currently still relies on selling cars. From PS view, 60.8 billion HKD approximates 55 billion RMB, corresponding annual revenue about 76 billion, PS about 0.7 times, in new EV makers not expensive. Nio PS about 1.2 times, Xpeng about 1.5 times. So Leapmotor valuation logic is divergent: by profit looks expensive, by revenue scale has space. Key is see H2 C16 volume momentum can continue, and going overseas can keep each quarter 50,000 units growth rate. If can stabilize, profit elasticity still has large release space.

Summary: Leapmotor used half a year time proved low price strategy can swap for scale, but 210 million net profit also shows scale does not equal profit. Among four new EV makers, Leapmotor is only making money, but earning most hard. H2 real test is can scale advantage turn into profit advantage — going overseas growth rate and gross margin can rise synchronously, this will decide Leapmotor position in next elimination round.