On August 31, LEAPMOTOR declined 3.19% in regular trading, trading at HK$37.64/share, with turnover of approximately HK$53.07 million. The stock has remained under sustained selling pressure since the company released its interim results on August 24.

The core catalyst behind the ongoing weakness is management's significant downward revision of full-year earnings guidance during the post-results conference call. The company cut its full-year net profit target from approximately RMB 5 billion to around RMB 3 billion, with full-year gross margin projected at only 13% to 14%. In the first half, gross margin fell to 11.7% from 14.1% a year earlier, pressured by rising raw material costs and shifts in product mix. Free cash flow contracted sharply from RMB 860 million to RMB 140 million, and per-vehicle net profit stood at only approximately RMB 589. Despite robust top-line growth — with H1 revenue of RMB 38.1 billion up 57.2% YoY and deliveries rising 60.8% — the magnitude of the guidance cut has continued to suppress sentiment.

Broader sector weakness also contributed, with BYD down 5.66%, NIO down 3.41%, LI AUTO down 2.50%, GEELY AUTO down 2.43%, and XPENG down 2.28%.

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