(Yicai) Aug. 22 -- Shares of Zeekr Intelligent Technology surged after the electric vehicle arm of Chinese automotive giant Geely Automobile Holdings reported record-high revenue in the second quarter of the year.

Zeekr [NYSE: ZK] closed 10.7 percent up at USD16.85 in New York yesterday.

Revenue soared 58 percent to CNY20 billion (USD2.8 billion) in the three months ended June 30 from a year earlier, the Ningbo-based carmaker announced yesterday. Net loss widened 29 percent to CNY1.8 billion (USD248.9 million), mainly because research and development expenses jumped 90 percent to CNY2.6 billion.

"In the second quarter of 2024, we substantially improved our financial and operational performance, despite facing numerous challenges and economic headwinds," said Andy An, chief executive officer of Zeekr.

"We made significant strides in optimizing costs while maintaining high-quality delivery standards, contributing to sustainable margin and profitability improvement," said Yuan Jing, Zeekr's chief financial officer.

In the second quarter, Zeekr doubled its deliveries to 54,811 units from a year earlier, with vehicle sales surging 59 percent to CNY13.4 billion.

Zeekr did not provide any performance guidance for future periods, but An reiterated that the company expects to break even this year.

According to data released yesterday by Geely Automobile, which holds nearly 54 percent of Zeekr's shares, the EV maker became profitable in the second quarter under Hong Kong accounting standards.

In addition, net loss shrank 1 percent to CNY3.8 billion in the first half of the year from a year earlier, while revenue rose 60 percent to CNY37.8 billion, Zeekr's earnings report also showed.

"Moving forward, we remain dedicated to improving product quality, expanding our market share and propelling the sustainable growth of our business," Yuan noted.

"Our accelerated global expansion and effective marketing efforts enabled us to extend our customer base across a broader spectrum, driving a surge in sales and enhancing our brand," An pointed out. "As we progress through the second half, our core objectives remain unchanged to continuously invest in research and development, ensuring we stay at the forefront of technological innovation to drive our business forward and deliver long-term value for our shareholders."

As of June 30, Zeekr had 429 stores worldwide, 402 of which were in China, data from Geely Automobile also showed.

Editor: Futura Costaglione