Leapmotor Stake Increase Signals Confidence Amid Strong EV Sales Growth

Leapmotor founder and chairman Zhu Jiangming has further increased his ownership in the electric vehicle manufacturer, reinforcing management’s confidence in the company’s long-term business outlook. The latest transaction comes during a period of notable stock market volatility, with the automaker’s share price experiencing a significant decline since mid-April. Despite market pressure, company leadership continues to demonstrate confidence through substantial investments in the business, reflecting expectations for future growth supported by rising vehicle deliveries, expanding international operations, and broader strategic initiatives.

Zhu Jiangming and concerted party Fu Liquan acquired a combined 11,621,900 H shares through open-market transactions. According to the disclosed filing, the purchases were completed at an average price of approximately HK$41.99 per share, bringing the total value of the transaction to about HK$490 million, equivalent to roughly $62.5 million. Following the acquisition, the largest shareholder group associated with Zhu now controls approximately 24.71% of the company’s equity, strengthening its position within the automaker’s ownership structure.

Latest Leapmotor Share Purchase Details

The newly expanded holding includes approximately 222.8 million H shares and around 128.5 million domestic shares. The transaction represents the second stake increase by company management during the current year and marks the sixth such purchase over the last two years. Earlier in April, the same shareholder group invested approximately HK$230 million to acquire additional publicly traded shares. Since 2024, cumulative stock purchases by the company’s leadership team have reached roughly HK$1.7 billion, highlighting sustained commitment from senior management.

Summary of Recent Ownership Activity

The following table summarizes key figures related to the latest investment activity by company leadership.

The investment activity coincides with a period in which the company’s Hong Kong-listed shares have faced downward pressure. The stock closed at HK$40.98, representing a decline of approximately 29% from its recent high of HK$57.80 recorded on April 17. Nevertheless, management’s continued buying activity suggests confidence that current market performance does not fully reflect the company’s long-term growth potential.

Record Deliveries Support Growth Momentum

The company continues to benefit from strong consumer demand across its vehicle portfolio. In May, it delivered 81,569 vehicles, achieving a new monthly record for the second consecutive month. Deliveries increased 80.99% compared with the same period last year and rose 14.26% from April levels. These results underline the company’s ability to maintain growth momentum in an increasingly competitive electric vehicle market.

During the first five months of the year, cumulative deliveries reached 263,111 vehicles, reflecting a year-on-year increase of 51.51%. Consistent volume growth has become one of the company’s primary strengths and remains an important factor supporting investor confidence. The robust sales performance also contributes to revenue expansion and provides a foundation for future scaling initiatives.

Financial Performance Faces Margin Pressure

While vehicle deliveries remained strong, profitability experienced challenges during the first quarter. Changes in product mix affected margins, resulting in a net loss of 390 million yuan, equivalent to approximately $57.6 million. Gross margin declined to 9.4% compared with 14.9% during the same period a year earlier, indicating pressure on earnings despite higher sales volumes.

Even with these profitability challenges, revenue continued to grow. First-quarter revenue reached 10.82 billion yuan, representing an increase of 8.0% year-on-year. The results demonstrate that the company remains capable of generating substantial top-line growth while working to improve profitability and operational efficiency over time.

International Expansion and Premium Brand Strategy

International markets are becoming an increasingly important growth driver for the company. Overseas sales totaled 55,126 units between January and April, representing a year-on-year increase of 165.39%. This rapid expansion highlights growing acceptance of the company’s products beyond China and supports its ambition to establish a broader global presence.

To accelerate international growth, the automaker plans to introduce its electric hatchback Lafa 5 across 28 overseas markets in June. The rollout is expected to enhance brand visibility and contribute additional sales volume from international regions. Expanding global operations remains a central component of the company’s long-term development strategy.

The company has also outlined ambitious future objectives, including a target of delivering one million vehicles during 2026. To support this goal, management is preparing to launch a completely independent second brand. The new marque is expected to focus on higher-end vehicles priced above 300,000 yuan, allowing the company to move beyond its traditional emphasis on affordable models and enter segments with potentially stronger profit margins.

The combination of leadership investment, record vehicle deliveries, overseas market expansion, and premium product initiatives reflects a comprehensive strategy aimed at sustaining growth while improving financial performance. Management’s continued share purchases indicate confidence that these initiatives can strengthen the company’s competitive position and support its long-term ambitions.

Frequently Asked Questions

Why did Leapmotor’s leadership increase its stake in the company?
The recent share purchase reflects management’s confidence in the company’s long-term development prospects despite short-term stock market weakness. Chairman Zhu Jiangming and related shareholders invested approximately HK$490 million to acquire additional shares. The transaction follows several similar purchases made over the past two years and suggests that leadership believes the company’s growth opportunities, expanding international footprint, and strong delivery performance provide a solid foundation for future value creation and business expansion.

How is Leapmotor performing in terms of vehicle deliveries?
Leapmotor has reported strong delivery growth, reaching a record 81,569 vehicles in May. This represented an increase of 80.99% compared with the same month last year and 14.26% growth from April. For the first five months of the year, cumulative deliveries totaled 263,111 vehicles, up 51.51% year-on-year. These figures demonstrate sustained consumer demand and reinforce the company’s position as one of the rapidly growing participants in the electric vehicle sector.

What are Leapmotor’s future growth plans?
The company is pursuing multiple growth initiatives focused on volume expansion and profitability improvement. Key plans include expanding international sales, launching the Lafa 5 hatchback in 28 overseas markets, and introducing a new independent premium brand targeting vehicles priced above 300,000 yuan. Management has also established a goal of delivering one million vehicles in 2026. These strategies are intended to diversify revenue streams, strengthen market presence, and improve margins through participation in higher-value vehicle segments.