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Shares of the Chinese electric vehicle manufacturer saw gains following a positive second quarter, where losses were reduced and revenue increased, fueled by robust delivery numbers.
The company’s stock in Hong Kong rose by 1 percent to HKD51.55 (roughly USD6.61) per share today. Its shares traded on the New York Stock Exchange also climbed, gaining about 3.3 percent yesterday to USD6.58.
In the three months ending June 30, the company’s net loss decreased by 1 percent to CNY5 billion (approximately USD697.2 million) compared to the same period last year, according to its latest financial report. Revenue for the quarter grew by 9 percent to CNY19 billion (about USD2.7 billion).
The gross profit margin for this period was 10 percent, a slight increase from 9.7 percent a year ago and up from 7.6 percent in the first quarter. Nonetheless, it remains the lowest among China’s emerging electric vehicle brands, with Seres Group and Xiaomi Auto recording the highest margins at 29.5 percent and 25.6 percent, respectively.
The company delivered 72,056 vehicles during the quarter, representing a 26 percent rise from the same quarter last year and a 71 percent increase compared to the first quarter. Revenue from sales reached CNY16.1 billion, up 2.9 percent year-over-year and 62 percent sequentially.
“The enthusiastic market response to the Onvo L90 and the all-new ES8 has strengthened our overall sales momentum,” said the company’s founder, chairman, and CEO.
Looking ahead, the company expects total deliveries in the third quarter to range between 87,000 and 91,000 vehicles, which would mark a year-over-year growth of approximately 40.7 to 47.1 percent and set a new company record. The target for the fourth quarter is to maintain monthly deliveries of about 50,000 units.
Revenue in this upcoming quarter is projected to increase between 17 and 23 percent year-over-year, reaching between CNY21.8 billion and CNY22.9 billion. Additionally, the company aims to boost its vehicle profit margin to between 16 and 17 percent in the final quarter, supported by full-quarter deliveries of the Onvo L90 and the all-new ES8, with the goal of breaking even, according to the CFO during an earnings call.
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