(Yicai) Aug. 16 -- Zhejiang Leapmotor Technology reported a more than 50 percent surge in revenue in the first six months from a year earlier, and a narrowing of losses, as the Chinese new energy vehicle startup’s shipments attained record sales for the period, despite the ongoing price war in the country’s automobile market.

Leapmotor posted a 52.2 percent jump in revenue in the first half year on year to CNY8.8 billion (USD1.2 billion), according to the Hangzhou-based company’s latest financial report released yesterday. While net losses contracted 2.8 percent to CNY2.2 billion (USD306.6 million).

Sales almost doubled in the six months ended June 30, surging 94.8 percent to 86,700 units, a record high, the report said. Its gross profit margin stood at 1.1 percent, sinking to minus 1.4 percent in the first quarter and expanding to 2.8 percent in the second quarter.

The gross profit margin should continue to widen in the second half, the Hangzhou-based company said. The goal is for it to reach 15 percent in the medium term. And shipments are expected to jump greatly in the third quarter from the second quarter, it added.

Last month, Leapmotor sold over 20,000 vehicles, bringing cumulative deliveries to 400,000 autos. It received new orders for more than 28,000 units in July and delivered 22,100 autos.

The real competition between electric vehicle manufacturers will begin in three years’ time, Leapmotor said. The company aims to be among the top eight car brands in the Chinese market next year, in the top six in 2026, and among the top five in 2027.

China’s top five automakers will have a lot of influence in the global EV market, said Leapmotor.

Leapmotor linked arms with auto giant Stellantis in May to set up a joint venture in Amsterdam that will oversee Leapmotor’s sales outside China.

The JV will open more than 200 sales outlets in Europe by the end of the year and will increase this figure to 500 in 2026. It plans to enter the Asia-Pacific, Middle Eastern, African and South American markets in the fourth quarter.

Leapmotor’s stock price [HKG: 9863] closed down 2.2 percent at HKD22.15 (USD2.80) today.

Editor: Kim Taylor