Xpeng based in Guangzhou is one of several Chinese car companies that began to develop abroad.
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The Chinese manufacturer of Xpeng electric vehicles recorded an increase in shares in Hong Kong over 10% on Thursday after optimistic earnings and the revenues stronger than expected forecasts in the second quarter.
His shares increased by up to 10.2% to $ 85.5 in Hong Kong (USD 10.86), and recently traded 7% higher, bringing annual profits to 78%.
Car revenues based in Guangzhou in the first quarter increased more than twice as much as a year earlier, powered by solid sales.
Xpeng said he delivered 94,008 vehicles in the first three months this year, more than four times larger sales volume a year earlier.
This improved best line helped narrow the net loss in the first quarter to 664 million yuan, compared to 1.37 billion yuan a year ago, and raised the gross margin to 15.6% in a quarter of 12.9% a year earlier.
The company is a key player at the Hyperkompeneting EV market in China, but it tried to achieve profit in connection with the growing competition and slow national demand.
Analysts broadly expect Xpeng to be profitable in the fourth quarter this year, thanks to the strong sales rush and new models pipeline.
The company has launched several new products, including Mon's mass brand in August last year ia Renewed flagship model X9containing an advanced autonomous driving system.
Automaker said that it aims to start mass production of vehicles equipped with autonomous driving functions at level 3 in China until the end of the year, which is a significant update from currently more common level 2 systems.
In the second quarter, Xpeng said that he provided for revenues of 17.5 billion yuan to 18.7 billion yuan, compared to the 17.2 billion yuan consensus forecast, according to the data developed by LSEG.
He expects that in the second quarter he will provide 102,000 and 108,000 electric cars – a jump by about 237.7% to 257.5% compared to the previous year.
This optimistic forecast earned the mood of investors, sending shares on the US Stock Exchange by 13% higher to close at a price of USD 22.25, driving an annual rally of over 88%. According to LSEG data, however, it is that this is a record of over 72 USD per item in November 2020.
This year, Rival Byd to Hong Kong by more than 74%, Li the car increased by more than 22%, while it lost over 11%.
– Arjun Kharpal from CNBC contributed to this story.