06:45 AM EDT, 08/20/2024 (MT Newswires) -- XPeng's ( XPEV ) second-quarter loss narrowed year over year as the Chinese automaker saw an increase in vehicle deliveries on a sequential and annual basis.

The electric vehicle manufacturer on Tuesday posted an adjusted loss of 1.29 renminbi ($0.18) per American depositary share, compared with a 3.10 renminbi loss the year before. Three analysts polled by Capital IQ expected a normalized per-share loss of 1.32 renminbi. Revenue for the June quarter soared to 8.11 billion renminbi from 5.06 billion renminbi last year, while five analysts estimated 9.07 billion renminbi.

The company delivered 30,207 vehicles during the quarter, compared with 21,821 units in the first quarter and up 30% year over year. Vehicle sales jumped 54% annually to 6.82 billion renminbi mainly due to higher deliveries, XPeng ( XPEV ) said.

"The technological advantages we have accumulated through a long period of time and the breakthroughs we have achieved in (artificial intelligence) will be transformed into sales growth in China and the international market," Chief Executive Xiaopeng He said in a statement. "We are confident that we will return to the track of fast growth."

Gross margin reached 14% versus a negative reading of 3.9% a year ago, aided by cost reduction through "technical improvement" and revenue from the company's strategic collaboration with Volkswagen Group, co-President Hongdi Brian Gu said. Last month, XPeng ( XPEV ) signed a master agreement with the German auto manufacturer for their previously announced technical collaboration to speed up the development process of new EV architecture.

For the ongoing quarter, XPeng ( XPEV ) expects to deliver between 41,000 and 45,000 vehicles, reflecting an annual increase of about 2.5% to 13%. The company has already delivered 11,145 units in July. XPeng ( XPEV ) sees revenue in the range of 9.1 billion renminbi to 9.8 billion renminbi for the quarter. Five analysts surveyed by Capital IQ expect revenue of 11.26 billion renminbi.

"I expect as the big product cycle drives our sales growth in the global market, our economy of scale, operating efficiency and cash flow will significantly improve," according to Brian Gu.

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