(Yicai) April 29 -- Shares of Leapmotor Technology jumped after the Chinese electric vehicle startup said founder Zhu Jiangming and several key investors had spent HKD300 million (USD38.7 million) increasing their stake in the company.

Leapmotor [HKG: 9863] closed 8.1 percent higher at HKD54.85 (USD7.07) a share in Hong Kong today. The stock has gained 68 percent since the end of last year.

Zhu, who is also chairman and chief executive officer, and shareholder Fu Liquan purchased over 6.8 million Leapmotor shares at an average price of HKD46.45 apiece in early to mid April, the Hangzhou-based carmaker announced yesterday.

Zhu, Fu, and the single largest shareholders group they belong to now hold more than 205.5 million Hong Kong shares and 128.5 million domestic shares of Leapmotor, representing 25 percent of the total issued.

They bought the shares to show strong confidence in Leapmotor’s future, support its long-term stable growth, and protect the interests of public investors, the Hangzhou-based firm noted.

Leapmotor posted its first net profit in the fourth quarter of last year. In March, it became the best-selling Chinese EV startup after sales soared more than 154 percent to 37,095 cars, exceeding those of rival Li Auto. As of April 9, Leapmotor had sold over 700,000 vehicles.

It is expected to sell 50,000 to 80,000 cars overseas this year, and “there is a possibility of reaching monthly sales of 80,000 to 100,000 units,” Zhu said at the ongoing Shanghai Auto Show.

“It will take another three years for the competitive landscape of the Chinese automotive market to take shape and become clear,” Zhu told the media. “The next three years will be crucial for the sales volume of every carmaker.”

Leapmotor had said last August that Zhu, Fu, and Fu’s wife intended to buy up to CNY300 million (USD41.2 million) of the carmaker’s Hong Kong-listed shares within the following six months.

Leapmotor’s single largest shareholders group owned nearly 185.3 million Hong Kong shares and 128.5 million domestic shares of the company at the date of the announcement, representing 23.5 percent of the total issued.

Editor: Futura Costaglione