(Yicai) July 1 -- Avatr Technology, the Chinese electric car startup backed by auto manufacturer Changan Automobile and tech giant Huawei Technologies that is aiming to go public on the Hong Kong stock exchange, reported cumulative losses of CNY13.2 billion (USD1.9 billion) over the past four years, according to an updated initial public offering prospectus filed yesterday after its initial application expired.

Avatr’s net loss narrowed 13 percent last year from the year before to CNY3.5 billion (USD515.1 million), while revenue soared 69 percent to CNY25.6 billion (USD3.7 billion) thanks to stronger new energy vehicle sales, according to the revised prospectus submitted by the Chongqing-based firm yesterday. However, the company still recorded cumulative net losses of CNY9.7 billion between 2022 and 2024.

Alongside rising revenue, Avatr’s research and development expenses have continued to climb, weighing on its path to profitability. R&D expenditure surged 72 percent last year from a year ago to CNY2.1 billion (USD309.1 million), with its share of revenue edging up 0.1 percentage point to 8.1 percent, according to the prospectus.

Looking ahead, Avatr will improve its financial performance and strive for profitability through a series of measures, such as optimizing its product mix with a greater focus on higher-margin premium models and configurations, expanding sales in selected overseas markets and improving cost efficiency across procurement, R&D and sales, the company said.

Avatr was set up by Changan Auto in cooperation with Huawei and battery behemoth Contemporary Amperex Technology as a luxury smart electric vehicle marque in 2018. It started mass production in 2022. Last year deliveries doubled from the year before to 122,702 autos.

However, sales have weakened this year due to changes in China’s NEV tax exemption policy and intensified competition. Deliveries more than halved in the first five months from a year earlier to 20,160 units, according to the updated filing. Overseas sales soared 33 percent to 2,949 units.

Avatr first submitted its Hong Kong IPO application in November last year, planning to use the proceeds to develop new vehicle models, build next-generation smart platform architecture, strengthen its brand and sales network and supplement working capital.

Editors: Dou Shicong, Kim Taylor