(Yicai) Aug. 16 — Zhejiang Leapmotor Technology reported a revenue increase of over 50 percent year-on-year and a narrowing of losses in the first six months, as the Chinese alternative-fuel vehicle startup’s deliveries hit record sales for the period despite the ongoing price war in China’s auto market.
Leapmotor reported a 52.2 percent year-on-year jump in revenue to CNY8.8 billion (US$1.2 billion) in the first half of the year, according to the Hangzhou-based company’s financial report released yesterday, but its net loss narrowed 2.8 percent to CNY2.2 billion (US$306.6 million).
Sales nearly doubled in the six months to June 30, rising 94.8 percent to 86,700 units, a record high, the report said. Gross profit margin was 1.1 percent, falling to minus 1.4 percent in the first quarter and rising to 2.8 percent in the second quarter.
The Hangzhou-based company said the gross profit margin should continue to increase in the second half of the year. The aim is to reach 15 percent in the medium term. And deliveries should increase significantly in the third quarter compared to the second quarter, it added.
Last month, Leapmotor sold over 20,000 vehicles, bringing its total deliveries to 400,000. In July, new orders were received for more than 28,000 units and the company delivered 22,100 cars.
The real competition among electric vehicle manufacturers will begin in three years, Leapmotor said. The company aims to be among the top eight car brands in the Chinese market next year, the top six in 2026 and the top five in 2027.
According to Leapmotor, China’s top five automakers will have a major impact on the global electric vehicle market.
Leapmotor joined forces with auto giant Stellantis in May to form a joint venture in Amsterdam to oversee Leapmotor’s sales outside China.
The joint venture will open more than 200 points of sale in Europe by the end of the year and increase this number to 500 by 2026. Entry into the Asia-Pacific, Middle East, Africa and South America markets is planned for the fourth quarter.
Leapmotor’s share price (HKG: 9863) closed 2.2 percent lower today at HKD 22.15 (USD 2.80).
Editor: Kim Taylor
