(Yicai Global) March 29 -- Xpeng’s loss widened 78 percent last year despite the Chinese electric vehicle startup recording strong sales and deliveries.

The net loss was CNY4.9 billion (USD763.1 million) in the year ended Dec. 31, versus CNY2.7 billion a year earlier, according to the latest financial results the Guangzhou-based firm released yesterday. Revenue soared 259 percent to CNY21 billion (USD3.4 billion).

Annual income from vehicle sales jumped 261 percent to CNY20 billion (USD3.1 billion), while total deliveries surged 263 percent to 98,155 units.

The gross profit margin widened to 12.5 percent, from 4.6 percent the year before. The company’s medium- and long-term goal is to achieve a 25 percent margin, founder He Xiaopeng said on an earnings conference call.

For the fourth quarter of 2021, the net loss widened 63 percent to CNY1.3 billion from a year earlier, while revenue tripled to CNY8.6 billion, beating expectations.

Xpeng delivered 41,751 vehicles in the quarter, up 222 percent from the same period of 2020. Deliveries in November and December exceeded the monthly benchmark of 15,000.

For this quarter, Xpeng expects revenue to gain from 144 percent to 147.4 percent to between CNY7.2 billion and CNY7.3 billion. Deliveries are likely to rise 151 percent to 155 percent to between 33,500 and 34,000.

Entering 2022, the chip shortage and surging raw battery materials prices continue to present a challenge for the whole industry, said He, who is also chairman end chief executive, but these near-term obstacles cannot stop the firm’s long-term journey, where smart EVs are accelerating the disruption of internal combustion engine vehicles at an unprecedented speed.

“Because of our multiple supplier partner network, we are able to actually relieve this sort of stress within, I think, one quarter to three quarters time,” He added, noting that this year Xpeng will continue to consult on costs with suppliers.

Xpeng has three battery suppliers and is now looking for a lithium iron phosphate battery one. “Having multiple battery suppliers makes sure we have enough supply and helps us optimize our cost control capability,” he said.

XPeng will officially launch its fourth model, the G9, in the third quarter of this year. Its supercharging stations count rose to 772 at the end of last year, covering 308 cities across China.

Xpeng’s shares [HKG: 9868] closed up 0.4 percent at CNY104.20 (USD16.35) today, after earlier gaining as much as 2.7 percent. In pre-market trading in New York, its stock [NYSE: XPEV] was down 1 percent at USD26.86 as of 4.06 a.m. local time.

Editor: Futura Costaglione