The latest: Electric vehicle (EV) manufacturers Zhejiang Leapmotor Technology Co. Ltd. (9863.HK) on Thursday reported In the first half of this year, the company suffered a net loss of 2.21 billion yuan ($308 million), a slight decrease from the same period last year when it lost 2.27 billion yuan.

Look up: The company’s revenue increased 52.2% year-on-year to 8.85 billion yuan, mainly due to higher shipments of its electric vehicles and their spare parts.

Please note: The company’s research and development expenses rose 48.4 percent to 1.22 billion yuan, while sales expenses rose 42.1 percent to 8.75 billion yuan as the company spent heavily on product development and invested in intelligent driving technology.

Dig deeper: Leapmotor was founded in 2015 by its founding group and a defense technology company Zhejiang Dahua Technology (002236.SZ). Since 2019, the company has launched five car models targeting the mid-to-high-end segment of China’s electric vehicle market. Last year, the same year it was listed on the Hong Kong stock exchange, it was the country’s 10th-largest manufacturer, selling 144,555 units. Like its rivals, Leapmotor has yet to turn a profit due to its high costs, amassing losses of more than 14 billion yuan over the past three and a half years.

Market reaction: Leapmotor shares fell on Friday, closing down 1.8 percent at HK$22.25 at lunchtime. The stock is now trading at the lower end of its 52-week price range.

Translation by A. Au

To subscribe to Bamboo Works’ free weekly newsletter, click Here