Beijing (ZXZC)- Chinese new energy vehicle startup, Leapmotor, unveiled its third-quarter (Q3) financial report on October 16, demonstrating impressive growth and improved financial health.

Photo credit: Leapmotor

During Q3 2023, the company achieved revenue of 5,655.5 million yuan, marking a substantial 31.9% surge compared to the 4,287.8 million yuan achieved in the same period of 2022. Additionally, this also represents a 29.4% jump from the previous quarter. The year-on-year revenue surge is primarily attributed to increased sales volume and a rise in the average selling price, facilitated by structural enhancements in Leapmotor’s product lineup. The quarter-over-quarter growth was primarily spurred by increased sales volume, added the startup.

Leapmotor's gross margin in the Jul.-Sept. period stood at 1.2%, marking a significant and continuous improvement compared to the same period in 2022 when it was at -8.9% and Q2 2023 when it was at -5.2%.

In terms of net losses, the company reported a loss attributable to the equity holders of 985.7 million yuan in Q3 2023. This figure is significantly better than that of the year-ago period, when the loss was 1,339.9 million yuan, and Q2 2023, when it was 1,143.1 million yuan. When adjusted for share-based payments as part of employee benefit expenses (non-IFRS), the adjusted net loss for Q3 2023 stood at 789.2 million yuan, an improvement from the loss of 1,155.4 million yuan in the year-ago period and 972.2 million yuan a quarter ago.

During the third quarter, Leapmotor delivered a total of 44,325 vehicles, representing a notable increase of 24.5% year-on-year. The company experienced varying results with its different models, with deliveries of the T03 totaling 8,622 units, the C11 at 27,378 units (including extended-range electric vehicles “EREVs”), and the C01 at 8,325 units (including EREVs). Q3 deliveries of the C11 model shot up 58.6% from a year ago, while the C01 lineup achieved an astonishing 1,384.0% soar in deliveries from the prior-year period.