HANGZHOU, China, June 11, 2024 /PRNewswire/ — ZEEKR Intelligent Technology Holding Limited ("ZEEKR" or the "Company") (NYSE: ZK), a fast-growing intelligent battery electric vehicle ("BEV") technology company, today announced its unaudited financial results for the first quarter ended March 31, 2024.
Operating Highlights for the First Quarter of 2024
Total vehicle deliveries were 33,059 units for the first quarter of 2024, representing a 117% year-over-year increase.
Deliveries
2024 Q1
2023 Q4
2023 Q3
2023 Q2
33,059
39,657
36,395
27,399
Deliveries
2023 Q1
2022 Q4
2022 Q3
2022 Q2
15,234
32,467
20,464
10,769
Financial Highlights for the First Quarter of 2024
Vehicle sales were RMB8,174.1 million (US$1,132.1 million) for the first quarter of 2024, representing an increase of 73.0% from the first quarter of 2023 and a decrease of 22.8% from the fourth quarter of 2023. Vehicle margin was 14.0% for the first quarter of 2024, compared with 10.1% for the first quarter of 2023 and 15.3% for the fourth quarter of 2023. Total revenues were RMB14,736.8 million (US$2,041.0 million) for the first quarter of 2024, representing an increase of 71.0% from the first quarter of 2023 and a decrease of 9.9% from the fourth quarter of 2023. Gross profit was RMB1,739.4 million (US$240.9 million) for the first quarter of 2024, representing an increase of 154.9% from the first quarter of 2023 and a decrease of 25.3% from the fourth quarter of 2023. Gross margin was 11.8% for the first quarter of 2024, compared with 7.9% for the first quarter of 2023 and 14.2% for the fourth quarter of 2023. Loss from operations was RMB2,086.9 million (US$289.0 million) for the first quarter of 2024, representing a decrease of 11.2% from the first quarter of 2023 and a decrease of 29.3% from the fourth quarter of 2023. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB2,084.2 million (US$288.7 million) for the first quarter of 2024, representing a decrease of 10.0% from the first quarter of 2023 and a decrease of 28.5% from the fourth quarter of 2023. Net loss was RMB2,022.1 million (US$280.1 million) for the first quarter of 2024, representing a decrease of 18.0% from the first quarter of 2023 and a decrease of 31.2% from the fourth quarter of 2023. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB2,019.4 million (US$279.7 million) for the first quarter of 2024, representing a decrease of 17.0% from the first quarter of 2023 and a decrease of 30.4% from the fourth quarter of 2023.
Key Financial Results
(in RMB millions, except for percentages)
2024 Q1
2023 Q4
2023 Q1
% Change i
YoY
QoQ
Vehicle sales
8,174.1
10,592.6
4,725.2
73.0 %
(22.8) %
Vehicle margin
14.0 %
15.3 %
10.1 %
3.9 %
(1.3) %
Total revenues
14,736.8
16,357.9
8,620.4
71.0 %
(9.9) %
Gross profit
1,739.4
2,328.3
682.5
154.9 %
(25.3) %
Gross margin
11.8 %
14.2 %
7.9 %
3.9 %
(2.4) %
Loss from operations
(2,086.9)
(2,950.1)
(2,349.2)
(11.2) %
(29.3) %
Non-GAAP loss from operations
(2,084.2)
(2,914.8)
(2,316.5)
(10.0) %
(28.5) %
Net loss
(2,022.1)
(2,937.9)
(2,465.4)
(18.0) %
(31.2) %
Non-GAAP net loss
(2,019.4)
(2,902.6)
(2,432.6)
(17.0) %
(30.4) %
i Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented
Recent Developments
Delivery Updates
In April 2024, the Company delivered 16,089 vehicles, representing an increase of 99% from April 2023.
In May 2024, the Company delivered 18,616 vehicles, representing an increase of 115% from May 2023.
New Model Launches
In February 2024, the Company launched the all-new ZEEKR 001 2024 model, a five-seater, cross-over shooting brake, and started deliveries in March 2024.
In April 2024, the Company launched the ZEEKR 009 Grand, a deluxe version of the ZEEKR 009, and started deliveries in May 2024.
CEO and CFO Comments
"We started our journey as a public company on a strong note with an excellent operational and financial performance for the first quarter of 2024," said Mr. Andy An, ZEEKR’s chief executive officer. "First quarter deliveries soared to 33,059 vehicles, up 117% year-over-year to reach a new quarterly record high and propelling our progress toward our full-year goal of 230,000 vehicles. This sustained growth in deliveries also secured our position as the best-selling brand in the battery electric vehicle market segment priced over RMB200,000 in China. With multiple groundbreakings, feature-rich models in our production pipeline, ZEEKR continues to redefine the ultimate in handling, performance, innovation and luxury. Going forward, we will continue to push the boundaries of intelligent and autonomous technology, build out our ultra-fast charging ecosystem and expand our channel services, boosting our competitiveness on all fronts. Given these strengths and the strategic advantages and synergies we derive from our parent company, Geely Group, ZEEKR is well-positioned to drive sustainable, global growth."
"We delivered robust results across the board for the first quarter of 2024, with total revenues rising by 71.0% and gross profit surging by 154.9% year-over-year," added Mr. Jing Yuan, chief financial officer of ZEEKR. "Vehicle margin also increased, up by 3.9 percentage points year-over-year thanks to effective procurement cost control. Our successful initial public offering on the New York Stock Exchange in May significantly strengthened our balance sheet, setting the stage for our long-term development. We remain confident that our solid financial position and growing competitiveness will empower us to deliver long-term value to our shareholders and global stakeholders."
Financial Results for the First Quarter of 2024
Revenues
Total revenues were RMB14,736.8 million (US$2,041.0 million) for the first quarter of 2024, representing an increase of 71.0% from RMB8,620.4 million for the first quarter of 2023 and a decrease of 9.9% from RMB16,357.9 million for the fourth quarter of 2023. Revenues from vehicle sales were RMB8,174.1 million (US$1,132.1 million) for the first quarter of 2024, representing an increase of 73.0% from RMB4,725.2 million for the first quarter of 2023, and a decrease of 22.8% from RMB10,592.6 million for the fourth quarter of 2023. The year-over-year increase was due to the increased sales volume of ZEEKR vehicles. The quarter-over-quarter decrease was due to seasonality that impacted our delivery volume, as well as the lower average selling price primarily caused by the change in our product mix. Revenues from sales of batteries and other components were RMB6,318.5 million (US$875.1 million) for the first quarter of 2024, representing an increase of 82.0% from RMB3,471.5 million for the first quarter of 2023 and an increase of 56.5% from RMB4,038.1 million for the fourth quarter of 2023. The year-over-year and quarter-over-quarter increases were mainly attributable to the increasing sales volume of battery packs and electric drives, as well as the growth of battery components overseas. Revenues from research and development service and other services were RMB244.1 million (US$33.8 million) for the first quarter of 2024, representing a decrease of 42.4% from RMB423.7 million for the first quarter of 2023 and a decrease of 85.9% from RMB1,727.2 million for the fourth quarter of 2023. The year-over-year and quarter-over-quarter decreases were mainly due to the decreased sales of research and development services and out-licensed technologies to related parties.
Cost of Revenues and Gross Margin
Cost of revenues was RMB12,997.4 million (US$1,800.1 million) for the first quarter of 2024, representing an increase of 63.7% from RMB7,937.9 million for the first quarter of 2023 and a decrease of 7.4% from RMB14,029.6 million for the fourth quarter of 2023. Gross profit was RMB1,739.4 million (US$240.9 million) for the first quarter of 2024, representing an increase of 154.9% from RMB682.5 million for the first quarter of 2023 and a decrease of 25.3% from RMB2,328.3 million for the fourth quarter of 2023. Gross margin was 11.8% for the first quarter of 2024, compared with 7.9% for the first quarter of 2023 and 14.2% for the fourth quarter of 2023. The year-over-year increase was mainly attributable to the increase in vehicle margin. The quarter-over-quarter decrease was mainly due to the decrease in vehicle margin as well as the increase in the percentage of revenues from sales of batteries and other components, which has a lower gross margin than vehicle sales. Vehicle margin was 14.0% for the first quarter of 2024, compared with 10.1% for the first quarter of 2023 and 15.3% for the fourth quarter of 2023. The year-over-year increase was primarily attributed to procurement savings as the cost of auto parts and materials decreased. The quarter-over-quarter decrease was mainly due to the delivery of new vehicle models as well as the change in product mix.
Operating Expenses
Research and development expenses were RMB1,925.3 million (US$266.6 million) for the first quarter of 2024, representing an increase of 6.7% from RMB1,805.1 million for the first quarter of 2023 and a decrease of 39.1% from RMB3,162.5 million for the fourth quarter of 2023. The year-over-year increase was attributable to increased employee compensation as a result of our growing number of staff as well as increased expenses to support our expanding product portfolios and intelligent technologies. The quarter-over-quarter decrease reflected fluctuations due to different design and development stages of new products and technologies. Selling, general and administrative expenses were RMB1,951.5 million (US$270.3 million) for the first quarter of 2024, representing an increase of 51.9% from RMB1,284.4 million for the first quarter of 2023 and a decrease of 11.6% from RMB2,207.9 million for the fourth quarter of 2023. The year-over-year increase was due to increased employee compensation as a result of our growing number of staff as well as increased marketing and promotional activities for ZEEKR vehicles in China and overseas, and an increase in rental and related expenses due to the expansion of our offline channel. The quarter-over-quarter decrease was mainly due to decreased marketing and promotional activities.
Loss from Operations
Loss from operations was RMB2,086.9 million (US$289.0 million) for the first quarter of 2024, representing a decrease of 11.2% from RMB2,349.2 million for the first quarter of 2023 and a decrease of 29.3% from RMB2,950.1 million for the fourth quarter of 2023. Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB2,084.2 million (US$288.7 million) for the first quarter of 2024, representing a decrease of 10.0% from RMB2,316.5 million for the first quarter of 2023 and a decrease of 28.5% from RMB2,914.8 million for the fourth quarter of 2023.
Net Loss and Net Loss Per Share
Net loss was RMB2,022.1 million (US$280.1 million) for the first quarter of 2024, representing a decrease of 18.0% from RMB2,465.4 million for the first quarter of 2023 and a decrease of 31.2% from RMB2,937.9 million for the fourth quarter of 2023. Non-GAAP net loss, which excludes share-based compensation expenses, was RMB2,019.4 million (US$279.7 million) for the first quarter of 2024, representing a decrease of 17.0% from RMB2,432.6 million for the first quarter of 2023 and a decrease of 30.4% from RMB2,902.6 million for the fourth quarter of 2023. Net loss attributable to ordinary shareholders of ZEEKR was RMB2,014.3 million (US$279.0 million) for the first quarter of 2024, representing a decrease of 15.9% from RMB2,394.3 million for the first quarter of 2023 and a decrease of 32.6% from RMB2,986.9 million for the fourth quarter of 2023. Non-GAAP net loss attributable to ordinary shareholders of ZEEKR, which excludes share-based compensation expenses, was RMB2,011.6 million (US$278.6 million) for the first quarter of 2024, representing a decrease of 14.8% from RMB2,361.6 million for the first quarter of 2023 and a decrease of 31.8% from RMB2,951.6 million for the fourth quarter of 2023. Basic and diluted net loss per share were both RMB1.01 (US$0.14) for the first quarter of 2024, compared with RMB1.20 for the first quarter of 2023 and RMB1.49 for the fourth quarter of 2023. Non-GAAP basic and diluted net loss per share were both RMB1.01 (US$0.14) for the first quarter of 2024, compared with RMB1.18 for the first quarter of 2023 and RMB1.48 for the fourth quarter of 2023.
Balance Sheets
Cash and cash equivalents and restricted cash was RMB3,791.1 million (US$525.1 million) as of March 31, 2024.
Conference Call
The Company’s management will host an earnings conference call on Tuesday, June 11, 2024, at 8:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day).
All participants who wish to join the call are requested to complete the online registration using the link provided below. After registration, each participant will receive by email a set of dial-in numbers, a passcode and a unique access PIN to join the conference call. Participants may pre-register at any time, including up to and after the call start time.
Participant Online Registration: https://dpregister.com/sreg/10189650/fca07ffcd6
A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.zeekrlife.com/.
About ZEEKR
ZEEKR is a fast-growing intelligent BEV technology company. The Company aspires to lead the electrification, intelligentization, and innovation of the automobile industry through the development and sales of next-generation premium BEVs and technology-driven solutions. Incorporated in March 2021, ZEEKR has focused on innovative BEV architecture, hardware, software, and the application of new technologies. Its current product portfolio primarily includes ZEEKR 001, a five-seater, cross-over shooting brake; ZEEKR 001 FR, its latest cross-over shooting brake; ZEEKR 009, a luxury six-seater MPV; ZEEKR 009 Grand, a four-seat deluxe version of ZEEKR 009; ZEEKR X, a compact SUV, and an upscale sedan model.
With a mission to create the ultimate mobility experience through technology and solutions, ZEEKR’s efforts are backed by strong in-house R&D capabilities, a deep understanding of products, high operational flexibility, and a flat, efficient organizational structure. Together, these features enable fast product development, launch, and iteration, as well as the creation of a series of customer-oriented products and go-to-market strategies.
For more information, please visit https://ir.zeekrlife.com/.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic loss per weighted average number of ordinary shares, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and non-GAAP Results" set forth in this announcement.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.2203 to US$1.00, the exchange rate on March 29, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "future," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law.
For Investor EnquiriesZEEKRInvestor RelationsEmail: ir@zeekrlife.com
For Media Enquiries ZEEKRMedia RelationsEmail: Globalcomms@zeekrlife.com
ZEEKR INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data and otherwise noted)
As of
December 31
March 31
March 31
2023
2024
2024
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
3,260,670
2,722,703
377,090
Restricted cash
844,079
1,068,400
147,972
Notes receivable
487,851
768,360
106,417
Accounts receivable
1,104,450
1,240,508
171,808
Inventories
5,228,689
4,927,757
682,486
Amounts due from related parties
7,256,861
7,761,784
1,074,995
Prepayments and other current assets
2,294,508
3,163,007
438,071
Total current assets
20,477,108
21,652,519
2,998,839
Property, plant and equipment, net
2,914,274
3,000,793
415,605
Intangible assets, net
410,912
480,042
66,485
Land use rights, net
51,755
51,461
7,127
Operating lease right-of-use assets
2,443,545
2,369,528
328,176
Deferred tax assets
86,395
109,177
15,121
Long-term investments
459,794
550,674
76,267
Other non-current assets
273,717
315,846
43,744
Total non-current assets
6,640,392
6,877,521
952,525
TOTAL ASSETS
27,117,500
28,530,040
3,951,364
ZEEKR INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Amounts in thousands, except share and per share data and otherwise noted)
As of
December 31
March 31
March 31
2023
2024
2024
RMB
RMB
US$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
4,104,717
4,578,825
634,160
Notes payable
5,504,945
9,785,003
1,355,207
Amounts due to related parties
16,355,902
13,245,235
1,834,444
Income tax payable
108,083
85,691
11,868
Accruals and other current liabilities
6,243,956
8,121,980
1,124,881
Total current liabilities
32,317,603
35,816,734
4,960,560
Operating lease liabilities, non-current
1,807,159
1,826,532
252,972
Amounts due to related parties, non-current
1,100,000
1,100,000
152,348
Other non-current liabilities
563,001
519,365
71,931
Deferred tax liability
8,337
8,150
1,129
Total non-current liabilities
3,478,497
3,454,047
478,380
TOTAL LIABILITIES
35,796,100
39,270,781
5,438,940
SHAREHOLDERS’ EQUITY
Ordinary shares
2,584
2,584
358
Convertible preferred shares
362
362
50
Additional paid-in capital
11,213,798
11,216,532
1,553,472
Accumulated deficits
(20,865,686)
(22,880,010)
(3,168,846)
Accumulated other comprehensive income/(loss)
17,555
(25,214)
(3,492)
Total ZEEKR shareholders’ equity (deficit)
(9,631,387)
(11,685,746)
(1,618,458)
Non-controlling interest
952,787
945,005
130,882
TOTAL SHAREHOLDERS’ EQUITY (DEFICIT)
(8,678,600)
(10,740,741)
(1,487,576)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
27,117,500
28,530,040
3,951,364
ZEEKR INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE(LOSS)/INCOME
(Amounts in thousands, except share and per share data and otherwise noted)
Three Months Ended
March 31
December 31
March 31
March 31
2023
2023
2024
2024
RMB
RMB
RMB
US$
Revenues:
Vehicle sales
4,725,196
10,592,647
8,174,117
1,132,102
Sales of batteries and other components
3,471,469
4,038,075
6,318,535
875,107
Research and development service and other services
423,743
1,727,203
244,100
33,807
Total revenues
8,620,408
16,357,925
14,736,752
2,041,016
Cost of revenues:
Vehicle sales
(4,248,677)
(8,974,061)
(7,026,741)
(973,192)
Sales of batteries and other components
(3,403,866)
(3,746,895)
(5,883,360)
(814,836)
Research and development service and other services
(285,395)
(1,308,642)
(87,301)
(12,091)
Total cost of revenues
(7,937,938)
(14,029,598)
(12,997,402)
(1,800,119)
Gross profit
682,470
2,328,327
1,739,350
240,897
Operating expenses:
Research and development expenses
(1,805,053)
(3,162,517)
(1,925,278)
(266,648)
Selling, general and administrative expenses
(1,284,428)
(2,207,938)
(1,951,530)
(270,284)
Other operating income, net
57,808
92,041
50,525
6,998
Total operating expenses
(3,031,673)
(5,278,414)
(3,826,283)
(529,934)
Loss from operations
(2,349,203)
(2,950,087)
(2,086,933)
(289,037)
Interest expense
(104,801)
(35,730)
(10,700)
(1,482)
Interest income
22,731
25,767
20,192
2,797
Other income/(expense), net
11,107
6,420
(29,658)
(4,109)
Loss before income tax expense andshare of losses in equity method investments
(2,420,166)
(2,953,630)
(2,107,099)
(291,831)
Share of (loss)/income in equity methodinvestments
(44,150)
109,061
90,882
12,588
Income tax expense
(1,046)
(93,350)
(5,889)
(816)
Net loss
(2,465,362)
(2,937,919)
(2,022,106)
(280,059)
Less: (loss)/income attributable to non-controlling interest
(71,029)
48,969
(7,782)
(1,078)
Net loss attributable to shareholders of ZEEKR
(2,394,333)
(2,986,888)
(2,014,324)
(278,981)
ZEEKR INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (CONTINUED)
(Amounts in thousands, except share and per share data and otherwise noted)
Three Months Ended
March 31
December 31
March 31
March 31
2023
2023
2024
2024
RMB
RMB
RMB
US$
Net loss per share:
Basic and diluted
(1.20)
(1.49)
(1.01)
(0.14)
Weighted average shares used in calculating net loss per share:
Basic and diluted
2,000,000,000
2,000,000,000
2,000,000,000
2,000,000,000
Net loss
(2,465,362)
(2,937,919)
(2,022,106)
(280,059)
Other comprehensive loss, net oftax of nil:
Foreign currency translation adjustments
(1,919)
38,684
(42,769)
(5,923)
Comprehensive loss
(2,467,281)
(2,899,235)
(2,064,875)
(285,982)
Less: comprehensive (loss)/income attributable to non-controlling interest
(71,029)
48,969
(7,782)
(1,078)
Comprehensive loss attributable to shareholders of ZEEKR
(2,396,252)
(2,948,204)
(2,057,093)
(284,904)
ZEEKR INC.
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except share and per share data and otherwise noted)
Three Months Ended
March 31
December 31
March 31
March 31
2023
2023
2024
2024
RMB
RMB
RMB
US$
Loss from operations
(2,349,203)
(2,950,087)
(2,086,933)
(289,037)
Share-based compensation expenses
32,728
35,308
2,734
379
Non-GAAP loss from operations
(2,316,475)
(2,914,779)
(2,084,199)
(288,658)
Net loss
(2,465,362)
(2,937,919)
(2,022,106)
(280,059)
Share-based compensation expenses
32,728
35,308
2,734
379
Non-GAAP net loss
(2,432,634)
(2,902,611)
(2,019,372)
(279,680)
Net loss attributable to ordinary shareholders
(2,394,333)
(2,986,888)
(2,014,324)
(278,981)
Share-based compensation expenses
32,728
35,308
2,734
379
Non-GAAP net loss attributable to ordinary shareholders of ZEEKR
(2,361,605)
(2,951,580)
(2,011,590)
(278,602)
Weighted average number of ordinary shares used in calculating Non-GAAPnet loss per share
Basic and diluted
2,000,000,000
2,000,000,000
2,000,000,000
2,000,000,000
Non-GAAP net loss per ordinary share
Basic and diluted
(1.18)
(1.48)
(1.01)
(0.14)
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