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Shares of the leading Chinese new energy vehicle startup experienced an increase after the company turned a profit for the first time last year, becoming only the second emerging Chinese automaker to report an annual profit following Li Auto. The company’s stock rose by 4.7 percent to HKD 46.64 (USD 5.96) per share as of 11:35 a.m. local time, after earlier soaring by up to 7.4 percent.
The company posted a net profit of CNY 538.4 million (USD 78.1 million) for the 12 months ending December 31, a significant turnaround from a net loss of CNY 2.8 billion (USD 406 million) the previous year. Revenue more than doubled to CNY 64.7 billion (USD 9.4 billion). Sales jumped 103 percent to 596,555 units last year from 2024 units, marking a second consecutive year of doubling and positioning the firm as the top Chinese EV startup. Its exports also led the sector with over 67,052 units sold internationally.
The company’s gross profit margin improved to 14.5 percent from 8.4 percent, reaching 15 percent in the fourth quarter, a new quarterly high. The firm aims to sell one million vehicles this year, setting an ambitious growth goal at 68 percent, according to the founder and chairman, Zhu Jiangming, who announced this target in December.
In the first two months of this year, sales increased by 19 percent year-over-year, totaling 60,126 units. However, the company slipped to third place among Chinese EV startups in January, delivering 32,059 vehicles, behind Aito—developed jointly by Seres Group and Huawei Technologies—with 40,016 units, and Xiaomi Auto, which sold over 39,000 units.
The growth of new energy vehicle sales in China has slowed, partly due to the government reducing the purchase tax exemption for such vehicles to 5 percent this year, along with cuts to subsidies for trade-in programs.
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