(Yicai) May 20 -- Chinese electric vehicle startup Leapmotor Technology said its loss narrowed 87 percent in the first quarter from a year earlier, thanks to a surge in sales.

The net loss was CNY130 million (USD17.99 million) in the three months ended March 31, compared with just over CNY1 billion (USD140 million) a year ago, according to the Hangzhou-based company’s earnings report published yesterday. Revenue surged 187 percent to CNY10 billion (USD1.4 billion).

Leapmotor was the fastest-growing Chinese EV startup in the quarter, with deliveries soaring 162 percent year on year to 87,600 cars, and it topped the sales rankings last month and in March. As of March 31, the firm had 756 sales outlets and 449 service centers covering 279 cities.

But Leapmotor swung into the red from the previous quarter, mainly due to a seasonal decline in sales, as revenue fell 26 percent.

Gross profit margin reached a record high 14.9 percent, up from minus 1.4 percent a year ago and 13.3 percent in the fourth quarter of last year. The annual gain came mainly thanks to economies of scale from increased sales, ongoing cost management efforts, and product optimization, while quarterly growth resulted from strategic alliances, Leapmotor noted.

The company’s shares [HKG: 9863] closed flat at HKD62.20 (USD7.94) each today, after jumping by as much as 5.5 percent in morning trading. The broader Hong Kong stock market ended up 1.5 percent. Leapmotor has soared 91 percent since the start of the year. 

Leapmotor International, the company’s joint venture with Europe’s Stellantis, has expanded to 23 markets worldwide as of last month, including Europe, the Middle East, Africa, the Asia-Pacific region, and South America. 

In addition, Leapmotor plans to launch a local assembly project for its mid-size crossover sport utility vehicle, the C10, in Malaysia by the end of this year and aims to achieve localized production in Europe by the end of next year, accelerating its expansion in the European market.

Editor: Martin Kadiev