Prospects look bright for a Chinese new energy vehicle manufacturer, as its profits soared to 2.26 billion yuan ($342 million) compared to the same period last year.

BYD Co Ltd recorded a first-half profit increase of 384 percent mainly due to the surging sales of its new energy vehicle business, reported the China Daily.

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Taking a cue from its rising profits, the company's shares in Hong Kong soared to 3.9 percent to HK$53 ($6.8), and closed at HK$52.25.

The Chinese new energy vehicle manufacturer's revenues also increased by 43.74 percent, year-on-year, to 43.75 billion yuan in the first six months of 2016.

Thirty five percent of BYD's profits came from its new energy automobile business based on the interim results that were published on Sunday.

During the first six months, the sales volume of its new energy automobiles surged by about 130 percent to approximately 49,000 units.

On the other hand, the company's annual sales target in 2016 is 120,000 units which means that it is on track, bared BYD Chairman Wang Chuanfu during a briefing early this week.

Wang pointed out that the second half of the year is usually the busier season for the company, as he expressed confidence that the Chinese firm would be able to meet its sales targets, particularly with the release of its new energy vehicle models.

BYD has been a dominant force in the hybrid car industry, as it has captured about 65 percent of total market share despite stiff competition.

Based on data from the China Association of Automobile Manufacturers (CAAM), the company's share in the new energy automobile market was approximately 27 percent in the first half of 2016.

New energy vehicles have become a force to reckon with in highly-competitive Chinese automobile market, as their total sales rose to 126.9 percent year-on-year to 170,000 units based on CAAM statistics.

Tagschina, Chinese New Energy Vehicle, China Hybrid Car Industry