Zhejiang Leapmotor Technology Co. Ltd. (9863.HK) has achieved its first-ever annual profit of 540 million yuan last year, doubling its revenue and other key metrics. The company's gross margin hit a record 14.5%, up 6.1 percentage points compared to 2024. It also achieved breakthroughs in its approach to technology using a "full domain in-house R&D + vertical integration" strategy and its self-developed Leap 3.5 architecture. However, despite these strong results, there are still significant issues under the hood. The low-pricing strategy was not widely recognized, nor was the ability to sustain such low prices over the longer term. Despite these challenges, Leapmot's CEO, Zhu Jiangming, believes an annual sales volume of 1 million units is the survival threshold for the future. He also stated that for success, annual sales must reach 4 million vehicles.