(Yicai) June 4 -- Nio still expects to become profitable in the fourth quarter, its chief executive said after the Chinese electric car startup’s first-quarter loss swelled 30 percent from a year ago.

“With growing sales, improving margins, and better cost control, we are confident in improving the company's financial position starting from the second quarter and then meeting our full-year business targets,” William Li said yesterday on Nio’s earnings conference call.

The Shanghai-based carmaker is targeting profitability in the final quarter of this year, Li, who is also Nio's founder and chairman, has said several times since March.

The net loss was CNY6.8 billion (USD930.2 million) in the three months ended March 31, which was down 5.1 percent from the fourth quarter of last year, Nio announced yesterday. Revenue climbed 22 percent to CNY12 billion (USD1.7 billion).

Nio delivered 42,094 cars in the period, up 40 percent from a year earlier, with vehicle sales rising 19 percent to CNY9.9 billion (USD1.4 billion). Vehicle margin improved to 10.2 percent from 9.2 percent, and gross margin increased to 7.6 percent from 4.9 percent.

“Since the first quarter, we have implemented a range of cost control measures, including organizational restructuring, cross-brand integration, and efficiency improvements in research and development, supply chain, sales, and services,” said Chief Financial Officer Stanley Qu.

"Starting from the second quarter, the company aims to achieve structural improvements in overall cost efficiency, with continued progress in operational performance,” Ho added.

Nio's shares [HKG: 9866] closed up 1.6 percent at HKD27.95 (USD3.56) apiece in Hong Kong today. In pre-market trading in New York, its stock [NYSE: NIO] was 2.3 percent higher at USD3.61 as of 5.56 a.m. local time, after adding 0.3 percent yesterday.

Nio delivered 23,900 vehicles in April and 23,231 others in May. This quarter it expects to hand over between 72,000 and 75,000 units, up 26 percent to 31 percent year on year.

Second-quarter revenue will likely grow 12 percent to 15 percent to between CNY19.5 billion and CNY20.1 billion (USD2.7 billion and USD2.8 billion), the company predicted.

In the fourth quarter, Nio expects monthly deliveries to exceed 50,000 units, with a vehicle margin of 17 percent to 18 percent, Li said, adding that selling, general, and administrative expenses will likely be within 10 percent of sales revenue.

When asked about Nio's overseas market strategy, Li mentioned that the company has already joined hands with more than 10 partners in over 15 markets and plans to bring more on board.

"Regarding the overall global expansion strategy, we actually have a pretty long-term view for our international development," Li noted. The Firefly brand will enter several European countries and other overseas markets, while the Onvo and Nio marques will continue to expand in global markets based on regional demand, he added.

Editor: Futura Costaglione