On September 25, according to the China Judgment Enforcement Information Disclosure Network, Leapmotor was listed as a dishonest entity subject to enforcement by the Baiyun District People’s Court of Guangzhou for refusing to fulfill obligations determined by an effective legal document. At the same time, Leapmotor’s founder Zhu Jiangming was placed under restrictions on high consumption (e.g., luxury spending and travel).
Case Background
The obligations confirmed in the effective legal document relate to a sales contract dispute with the plaintiff Guangzhou Shouqi Automobile Service Co., Ltd. The case was heard in November 2023, and the court’s mediation ruling was issued and came into effect in June 2024.
Specifically, Leapmotor’s wholly owned subsidiary Lingpao Automobile Trading Co., Ltd. owed Guangzhou Shouqi 3.6181 million yuan (including 416,000 yuan in rent, 2.7157 million yuan in vehicle payments, 446,400 yuan in overdue penalties, and 400,000 yuan in legal fees). The company agreed to pay the full amount in one installment by June 27, 2024.
After payment, Leapmotor and its subsidiary were also required, within three months, to assist Shouqi in transferring ownership of 73 vehicles involved in the case to Lingpao Automobile Trading. All related transfer costs would be borne by Lingpao.
Public Reaction
The news quickly spread online, and the topic “Leapmotor founder Zhu Jiangming restricted from high consumption” trended on Weibo, sparking heated discussion.
Some netizens questioned: “Isn’t Leapmotor selling quite well? Sales are high, and this amount isn’t huge. Why restrict consumption over this?” Others noted: “Didn’t they just celebrate reaching 1 million cars? The debt is only around 3.8 million yuan—shouldn’t be a big problem for Leapmotor or for Zhu personally. Let’s see how this develops.”
1 Millionth Vehicle Milestone
Interestingly, on the very same day (September 25), Leapmotor also announced the roll-off of its 1,000,000th vehicle. The company stated that the journey from the first vehicle to the millionth represents the trust of users and partners, a testament to Leapmotor’s continuous growth, and a new milestone.
Leapmotor reiterated its commitment to full-stack in-house R&D, saying it will accelerate its progress toward becoming a “world-class intelligent EV company worthy of respect”, while contributing to the advancement of China’s auto industry.
At the ceremony, founder Zhu Jiangming remarked:
“It took us five years to go from our first Leapmotor S01 to 500,000 vehicles. But in less than a year, we doubled that, reaching 1 million vehicles. This shows our pace of development is accelerating. We hope that in another year, we can gather here again to witness the next 1 million vehicles.”
Official Response
Faced with the controversy of being listed as a judgment defaulter, Leapmotor’s official Weibo account issued a statement clarifying the matter. The company stressed that the dispute is mainly a contractual issue with Guangzhou Shouqi. It said that the full amount was already paid on June 25, 2024, within the mediation ruling’s deadline. The remaining issue concerns the transfer of ownership for the 73 vehicles, which the company is actively negotiating with Shouqi to resolve.
Vice President Cao Li also responded, reassuring that Leapmotor’s operations remain completely normal. He emphasized that certain external claims in this dispute are inaccurate, and the company appreciates the continued understanding and support.
Financial Performance
Data shows that in H1 2024, Leapmotor achieved 24.25 billion yuan in operating revenue, a 174.1% year-on-year increase. Net profit reached 0.3 billion yuan, marking the company’s first-ever half-year profit. Gross margin also improved significantly from 1.1% to 14.1%.
On the sales front, Leapmotor delivered 328,859 vehicles from January to August 2024, up about 136.4% year-on-year. As of the reporting period, the company held 29.58 billion yuan in cash reserves.
