(Yicai) Jan. 14 -- Leapmotor Technology’s shares surged after the Chinese electric vehicle startup forecast its first ever quarterly profit.

After soaring by as much as 17.2 percent in early afternoon trading, Leapmotor [HKG: 9863] closed 13 percent higher at HKD33.90 (USD4.35) a share in Hong Kong today.

The Hangzhou-based firm expects to have swung into the black in the fourth quarter of last year, reaching the goal a year ahead of schedule thanks to sales growth, effective cost controls, and improved operational efficiency, it said in an earnings preview released late yesterday.

Leapmotor would be only the second Chinese EV startup to have ever made a profit, and the fourth profitable electric carmaker globally. The other three are BYD, Li Auto, and Tesla.

Founded in 2015, Leapmotor is one of China's newer entrants in the new energy vehicle market, competing with compatriots such as Nio, Li Auto, and Xpeng Motors. The firm’s focus on affordability and technological innovation has helped it to carve out a position in the competitive EV market.

Leapmotor expects revenue to have soared more than 80 percent to CNY30.5 billion (USD4.2 billion) last year. Its annual gross profit margin was likely at least 8 percent, the firm said.

Vehicle deliveries more than doubled to 293,700 last year, with the share of higher-priced models to the total exceeding 77 percent. This, together with effective cost control measures and improved operational efficiency, led to a wider gross profit margin, Leapmotor said.

The carmaker will strive to achieve an annual sales target of 500,000 vehicles this year, founder Zhu Jiangming said during its third-quarter earnings conference call.

Since last year, Leapmotor has been expanding overseas through a partnership with Stellantis. Its C10 and T03 hit the European market in September, and the firm has opened over 400 sales outlets in 13 European countries. It plans to have over 500 European outlets and enter the African, Asia-Pacific, Middle Eastern, and South American markets this year.

Editor: Futura Costaglione