Chinese electric-vehicle maker Leapmotor reported a net profit of about CNY30 million (USD4.2 million) for the first half of 2025, reversing a CNY2.2 billion loss a year earlier. The Hangzhou-based company said gross margin improved to 14.1% as vehicle deliveries rose and cost controls took hold. Leapmotor is only the second Chinese EV startup to achieve profitability, following Li Auto. Investors have rewarded the turnaround: the company’s Hong Kong-listed shares have nearly tripled over the past 12 months. The result underscores the broader shift in China’s auto industry, where domestic marques captured more than 70% of the passenger-car market in July, buoyed by surging sales of new-energy vehicles. Strong domestic demand, alongside growing overseas shipments—particularly of plug-in hybrids—has created a more favorable backdrop for newer entrants seeking to narrow losses.