Nov. 14 (Bloomberg) -- Vipshop Holdings Ltd. jumped the most since its initial public offering in March as its chief financial officer said the Chinese online retailer is “on track” for profit following better-than-estimated third-quarter results.

American depositary receipts of Guangzhou-based Vipshop surged 12 percent to $12.72 as of 2:21 p.m. in New York, the highest level since its March 22 IPO price of $6.5. The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. has lost 13 percent during the period.

Vipshop, which runs an online discount store for branded goods similar to Gilt Groupe Inc.’s Gilt.com in the U.S., reported yesterday third-quarter net loss of $1.5 million, or a loss of 3 cents per ADR, according to U.S. accounting rules. That was better than two analysts’ average estimate of a $5.95 million loss compiled by Bloomberg.

“The company is right on track to turn to profitability in the near-term future,” CFO Donghao Yang said in a phone interview from Los Angeles today. “Slower growth rate in the Chinese economy will benefit us in the next three to five years as we sell fashion goods at deep discounts. We have fully utilized our four existing warehouses and have an aggressive plan to triple storage space by the end of next year.”

Sales Forecast

Based on non-generally accepted accounting principles, Vipshop recorded a net income of $640,542 in the period, the first profitable quarter since it started business in 2008.

Vipshop’s third-quarter sales increased 197 percent from a year earlier to $155.9 million, it said in a statement released yesterday after U.S. trading closed. That also beat analysts’ projection of $147.5 million. Its sales forecast of as much as $240 million also exceeded analyst prediction of $201.5 million. For the full year, Vipshop expects revenue to grow as much as 178 percent from last year to $632 million.

The ADRs’ 96 percent gain since Vipshop’s IPO has boosted its market value to exceed that of E-Commerce China Dangdang Inc., the country’s biggest online book retailer.

Further measures from the nation’s new leadership to stimulate domestic consumption, following a seven-day Communist Party Congress that ended today, will also help boost Vipshop’s business, Yang said, citing possible reductions in business taxes or individual’s income tax.

“I believe the new policies of the new leadership will continue to expand domestic demand as exports are waning. Any measures in this direction will have a positive impact on our business,” he said.