LEAPMOTOR(09863)2024-11-11 11:00Financial Data and Key Metrics Changes - In Q3 2024, the company delivered 86,165 vehicles, representing a 61% increase quarter-over-quarter and a 94% increase year-over-year [2][3] - Revenue for Q3 reached 9.86 billion RMB, an 84% increase from the previous quarter and a 74% increase year-over-year [3][4] - Gross margin improved significantly to 8.1% in Q3, compared to 2.8% in Q2, with an average gross margin of 4.8% for the first nine months [5][6] - The net loss narrowed to 690 million RMB, showing substantial improvement compared to previous quarters [5][6] - The company reported a positive cash flow of 1.96 billion RMB in Q3, with cash reserves totaling 18.7 billion RMB [3][5] Business Line Data and Key Metrics Changes - The C series models accounted for 78.3% of total deliveries in Q3, indicating a continuous optimization of the product mix [2][3] - The company achieved a total sales volume of 172,800 vehicles in the first nine months of 2024 [3][4] Market Data and Key Metrics Changes - The company expanded its domestic sales network to 493 sales outlets and 362 service centers by the end of September 2024 [3][4] - In Europe, the number of dealer outlets reached 339 by the end of October 2024, indicating a strong international presence [3][4] Company Strategy and Development Direction - The company plans to launch the new B series models, with the first model, B10, debuting at the Paris Auto Show and expected to be available in the domestic market by Q1 2025 [7][8] - The B series aims to target the compact SUV market priced between 100,000 to 150,000 RMB, which is a significant segment in China [7][8] - The company is focusing on maximizing platform sharing and integrating advanced technologies in its new models [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining strong sales momentum, with expectations to exceed the annual sales target of 250,000 vehicles [9][10] - The company anticipates continued improvement in gross margins and a further reduction in net losses in Q4 2024 [9][10] - Management acknowledged challenges posed by geopolitical factors affecting the European market but remains committed to localizing production to enhance competitiveness [19][20] Other Important Information - The company is investing in R&D for AI and smart driving technologies, with plans to enhance its product offerings with advanced features [8][28] - The company aims to expand its sales channels to over 700 domestic sales outlets and 400 service centers by the end of 2024 [8][9] Q&A Session Summary Question: What are the latest sales and gross margin guidance? - Management expects significant sales growth in Q4, with a gross margin improvement anticipated [11][12] Question: What is the production capacity planning for the B series? - The company is working on expanding production capacity, with plans for a new factory in Hangzhou to support the B series [14][15] Question: How is the company addressing the challenges in the European market? - Management highlighted the importance of localization to mitigate the impact of tariffs and enhance competitiveness in Europe [19][20] Question: What is the expected contribution of the B series to overall sales? - The B series is expected to significantly boost sales, with a target of reaching over 500,000 units in the next two years [12][13] Question: How does the company plan to compete in the smart driving segment? - The company is focusing on integrating advanced AI technologies and enhancing its smart driving capabilities in upcoming models [28][29]