(Yicai) Aug. 19 -- Leapmotor Technology’s shares jumped after it became only the second Chinese electric vehicle startup to report a first-half profit and raised its annual delivery target.

Leapmotor [HKG: 9863] closed 7.6 percent higher at HKD73.35 (USD8.91) a share in Hong Kong today, after climbing 4.2 percent yesterday. The stock has gained 125 percent in value so far this year.

Leapmotor had a CNY30 million (USD4.2 million) net profit in the six months ended June 30, compared with a net loss of CNY2.2 billion (USD306.3 million) a year earlier, the Hangzhou-based firm’s earnings report showed yesterday.

Revenue surged 174 percent to nearly CNY24.3 billion (USD3.4 billion), driven by strong vehicle and parts sales, income from partnerships and carbon credit trading, and higher service revenues tied to growing deliveries.

Leapmotor delivered 221,664 EVs in the six months, a 156 percent year-on-year increase, ranking it first among China’s emerging auto brands. In July alone, the firm handed over 50,129 cars, a new monthly record.

The automaker exported 20,375 units in the period, having over 600 stores in about 30 global markets, including 550 in Europe and nearly 50 in the Asia-Pacific region. Its domestic sales and service network covered 286 cities as of June 30, up from 198 a year earlier.

Leapmotor has raised its annual delivery target for this year to 580,000 to 650,000 from 500,000, and that for next year to one million, executives said during the company’s earnings conference call yesterday. It delivered 290,000 units last year.

Leapmotor’s gross margin was 14.1 percent in the first half, up from 1.1 percent, mainly thanks to economies of scale driven by the increase in sales volume, ongoing cost management efforts, the optimization of product mix, and income generated from other businesses.

The company continues to invest heavily in future growth, with research and development expenses climbing 55 percent to CNY1.9 billion (USD264.5 million).

Founded in 2015 and listed on the Hong Kong Stock Exchange in September 2022, Leapmotor initially lagged behind its rivals but then gained ground thanks to a market-focused approach in the mainstream segment with competitive pricing.

Leapmotor’s compact sports utility vehicle, the B10, is priced at between CNY109,800 and CNY129,800 (USD15,290 and USD18,070), while its mid-size SUVs, the C10 and C11, are priced from CNY128,800 to CNY209,800, making them accessible to a wider buyership than similar models of premium EV brands, such as Nio and Li Auto.

Editor: Futura Costaglione