(Yicai Global) March 22 -- Shares of Leapmotor Technology rose after the Chinese electric vehicle startup said revenue increased nearly four times last year from 2021, though it net loss widened 80 percent because of higher costs.

Leapmotor [HKG: 9863] was trading up 2.8 percent at HKD30.90 (USD4) a share as of 4.08 p.m. today in Hong Kong, giving it a market capitalization of HKD35.3 billion (USD4.5 billion).

Revenue soared 295 percent to CNY12.4 billion (USD1.8 billion) in the 12 months ended Dec. 31, mainly because of an increase in EV sales and higher average sales price, the Hangzhou-based carmaker said yesterday.

Leapmotor’s net loss was CNY5.1 billion (USD740.8 million) in 2022, versus CNY2.8 billion in 2021, because of higher marketing, administration, and research and development expenses.

Gross profit margin improved to minus 15.4 percent from minus 44.3 percent, but remained below those of its competitors. The margins at Li Auto, Xpeng Motors, and Nio were 19.4 percent, 11.5 percent, and 10.4 percent, respectively, in 2022.

Leapmotor delivered nearly 111,200 EVs last year, a 151 percent increase. The company expects to double sales to about 220,000 this year.

Leapmotor plans to release one to three EV models a year to reach seven new models by the end of 2025. The automaker will also continue overseas market development, with plans to expand to Europe, Southeast Asia, and the Middle East in 2023 after opening stores in Israel last year.

“The auto sector landscape may already be set by 2025, so we have to secure a proper place," Zhu Jiangming, founder and chairman of Leapmotor, said earlier this month. “Market share is our top priority, with margin rates also of concern,” he noted, adding that the firm will need to cut and optimize costs while increasing sales volume this year.

Editor: Futura Costaglione