(Yicai) April 11 -- Lotus Technology, the luxury electric carmaker owned by China's Geely Holding, should become profitable and have positive cash flow in 2026 as sales increase, according to its chief executive officer.

Lotus Tech's gross profit margin will be more than 20 percent in 2026, with sales reaching 50,000 to 60,000 vehicles globally, Feng Qingfeng told Yicai after the automaker issued its first annual earnings report since going public in New York in February. The listing prospectus had set a goal to sell 76,000 by next year.

The Wuhan-based firm lost USD750 million in the 12 months ended Dec. 31, versus USD725 million in 2022, after failing to achieve economies of scale, report released on April 8 showed. GPM was 15 percent, thanks to its asset-light strategy, Lotus Tech said.

Operating revenue jumped 70 percent to USD679 million, mainly on a rise in production and sales of the Eletre, a pure electric sport utility vehicle, in the last three months of 2023. Fourth-quarter revenue surged 92 percent from the prior quarter to USD361 million.

Sales are expected to climb as buyers replace fossil fuel cars with high-end luxury EVs, Feng noted. Lotus Tech, whose cars are in the USD80,000 to USD150,000 price range, will rapidly grow sales by expanding its product lineup and sales channels, combined with its strategy of going global, he added.

The company delivered 6,970 cars last year, including 3,749 in the December quarter.

Lotus Tech will enter the Middle East, Southeast Asia, Japan, Australia, and New Zealand in the first half of this year and further explore the United States and South Korean markets in the second half. US sales will likely account for 20 percent of its total in 2024.

Feng said it is essential for Lotus Tech to optimize its sales channels and networks this year. The company will have around 250 sales channels worldwide, while sales per store will climb to more than 100 units by the end of the year, he pointed out.

Lotus Tech debuted on the Nasdaq market on Feb. 23 after completing a merger with L Catterton Asia Acquisition, a special purpose acquisition company, that valued it at USD5.5 billion. Hangzhou-based Geely bought a majority stake in the British sportscar marque in 2017.

Shares of Lotus Tech [NASDAQ: LOT] closed 3.1 percent lower at USD6.54 apiece yesterday, after earlier tumbling by as much as 6.7 percent.

Editor: Martin Kadiev