HANGZHOU, China, Aug. 21, 2024 /PRNewswire/ -- ZEEKR Intelligent Technology Holding Limited ("ZEEKR" or the "Company") ZK, a fast-growing intelligent battery electric vehicle ("BEV") technology company, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Operating Highlights for the Second Quarter of 2024
Total vehicle deliveries were 54,811 units for the second quarter of 2024, representing a 100% year-over-year increase.
Deliveries
2024 Q2
2024 Q1
2023 Q4
2023 Q3
54,811
33,059
39,657
36,395
Deliveries
2023 Q2
2023 Q1
2022 Q4
2022 Q3
27,399
15,234
32,467
20,464
Financial Highlights for the Second Quarter of 2024
Vehicle sales were RMB13,438.2 million ( US$1,849.2 million ) [1] for the second quarter of 2024, representing an increase of 59.0% from the second quarter of 2023 and an increase of 64.4% from the first quarter of 2024.
were ( ) for the second quarter of 2024, representing an increase of 59.0% from the second quarter of 2023 and an increase of 64.4% from the first quarter of 2024. Vehicle margin [2] was 14.2% for the second quarter of 2024, compared with 13.6% for the second quarter of 2023 and 14.0% for the first quarter of 2024.
was 14.2% for the second quarter of 2024, compared with 13.6% for the second quarter of 2023 and 14.0% for the first quarter of 2024. Total revenues were RMB20,040.1 million ( US$2,757.6 million ) for the second quarter of 2024, representing an increase of 58.4% from the second quarter of 2023 and an increase of 36.0% from the first quarter of 2024.
were ( ) for the second quarter of 2024, representing an increase of 58.4% from the second quarter of 2023 and an increase of 36.0% from the first quarter of 2024. Gross profit was RMB3,449.8 million ( US$474.7 million ) for the second quarter of 2024, representing an increase of 122.5% from the second quarter of 2023 and an increase of 98.3% from the first quarter of 2024.
was ( ) for the second quarter of 2024, representing an increase of 122.5% from the second quarter of 2023 and an increase of 98.3% from the first quarter of 2024. Gross margin was 17.2% for the second quarter of 2024, compared with 12.3% for the second quarter of 2023 and 11.8% for the first quarter of 2024.
Key Financial Results
(in RMB millions, except for percentages)
2024 Q2 2024 Q1 2023 Q2 % Change i
YoY QoQ Vehicle sales 13,438.2 8,174.1 8,450.2 59.0 % 64.4 % Vehicle margin 14.2 % 14.0 % 13.6 % 0.6pts 0.2pts
Total revenues 20,040.1 14,736.8 12,649.7 58.4 % 36.0 % Gross profit 3,449.8 1,739.4 1,550.3 122.5 % 98.3 % Gross margin 17.2 % 11.8 % 12.3 % 4.9pts 5.4pts
Loss from operations (1,721.0) (2,086.9) (1,371.0) 25.5 % (17.5) % Non-GAAP loss from operations (777.1) (2,084.2) (1,333.5) (41.7) % (62.7) %
Net loss (1,808.8) (2,022.1) (1,405.2) 28.7 % (10.5) % Non-GAAP net loss (864.9) (2,019.4) (1,367.7) (36.8) % (57.2) %
i Except for vehicle margin and gross margin, absolute changes instead of percentage changes are presented.
Recent Developments
Delivery Update
In July 2024, the Company delivered 15,655 vehicles, representing an increase of 30% from July 2023.
New Model Launches
On August 13, 2024, ZEEKR launched its updated ZEEKR 001 and upscale sedan models, both featuring the latest proprietary ADAS and AI OS technologies. The updated upscale sedan model, now equipped with enhanced batteries, can charge from 10% to 80% in just 10 to 11 minutes using ZEEKR's ultra-charging piles.
On July 19, 2024, ZEEKR officially introduced its luxury flagship MPV, the all-new ZEEKR 009, with deliveries starting on July 22, 2024. Boasting an 800V battery electric platform and a Qilin 5C battery, the all-new ZEEKR 009 accelerates from 0 to 100 km/h in 3.9 seconds. It delivers a CLTC range of 702km with its 108kWh battery and a maximum CLTC range of 900km with the optional 140kWh battery.
In July, ZEEKR unveiled its mid-large SUV, the ZEEKR 7X, revealing further insights into its original "Hidden Energy" design. The ZEEKR 7X, with a wheelbase of 2,925mm, a length of 4,825mm, and a width of 1,930mm, exemplifies ZEEKR's commitment to product excellence.
CEO and CFO Comments
Financial Results for the Second Quarter of 2024
Revenues
Total revenues were RMB20,040 .1 million ( US$2,757.6 million ) for the second quarter of 2024, representing an increase of 58.4% from RMB12,649 .7 million for the second quarter of 2023 and an increase of 36.0% from RMB14,736.8 million for the first quarter of 2024.
were .1 million ( ) for the second quarter of 2024, representing an increase of 58.4% from .7 million for the second quarter of 2023 and an increase of 36.0% from for the first quarter of 2024. Revenues from vehicle sales were RMB13,438 .2 million ( US$1,849.2 million ) for the second quarter of 2024, representing an increase of 59.0% from RMB8,450.2 million for the second quarter of 2023, and an increase of 64.4% from RMB8,174.1 million for the first quarter of 2024. The year-over-year increase was due to the increased sales volume of ZEEKR vehicles, partially offset by the lower average selling price due to the different product mix and pricing strategy changes between the two quarters. The quarter-over-quarter increase was mainly attributable to the increased sales volume of ZEEKR vehicles.
were .2 million ( ) for the second quarter of 2024, representing an increase of 59.0% from for the second quarter of 2023, and an increase of 64.4% from for the first quarter of 2024. The year-over-year increase was due to the increased sales volume of ZEEKR vehicles, partially offset by the lower average selling price due to the different product mix and pricing strategy changes between the two quarters. The quarter-over-quarter increase was mainly attributable to the increased sales volume of ZEEKR vehicles. Revenues from sales of batteries and other components were RMB5,299.2 million ( US$729.2 million ) for the second quarter of 2024, representing an increase of 36.1% from RMB3,894.3 million for the second quarter of 2023 and a decrease of 16.1% from RMB6,318 .5 million for the first quarter of 2024. The year-over-year increase was mainly driven by higher sales volume of battery packs and electric drives, as well as the growth of battery components sales overseas. The quarter-over-quarter decrease was mainly attributable to the lower sales of battery modules in the domestic market compared with the prior period.
were ( ) for the second quarter of 2024, representing an increase of 36.1% from for the second quarter of 2023 and a decrease of 16.1% from .5 million for the first quarter of 2024. The year-over-year increase was mainly driven by higher sales volume of battery packs and electric drives, as well as the growth of battery components sales overseas. The quarter-over-quarter decrease was mainly attributable to the lower sales of battery modules in the domestic market compared with the prior period. Revenues from research and development service and other services were RMB1,302.6 million ( US$179.2 million ) for the second quarter of 2024, representing an increase of 326.8% from RMB305 .2 million for the second quarter of 2023 and an increase of 433.6% from RMB244 .1 million for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were mainly due to the increased sales of research and development services to related parties.
Cost of Revenues and Gross Margin
Cost of revenues was RMB16,590 .2 million ( US$2,282.9 million ) for the second quarter of 2024, representing an increase of 49.5% from RMB11,099 .3 million for the second quarter of 2023 and an increase of 27.6% from RMB12,997 .4 million for the first quarter of 2024.
was .2 million ( ) for the second quarter of 2024, representing an increase of 49.5% from .3 million for the second quarter of 2023 and an increase of 27.6% from .4 million for the first quarter of 2024. Gross profit was RMB3,449 .8 million ( US$474.7 million ) for the second quarter of 2024, representing an increase of 122.5% from RMB1,550 .3 million for the second quarter of 2023 and an increase of 98.3% from RMB1,739 .4 million for the first quarter of 2024.
was .8 million ( ) for the second quarter of 2024, representing an increase of 122.5% from .3 million for the second quarter of 2023 and an increase of 98.3% from .4 million for the first quarter of 2024. Gross margin was 17.2% for the second quarter of 2024, compared with 12.3% for the second quarter of 2023 and 11.8% for the first quarter of 2024. The year-over-year increase and quarter-over-quarter increase were mainly attributable to the increased margins on batteries and other components.
was 17.2% for the second quarter of 2024, compared with 12.3% for the second quarter of 2023 and 11.8% for the first quarter of 2024. The year-over-year increase and quarter-over-quarter increase were mainly attributable to the increased margins on batteries and other components. Vehicle margin was 14.2% for the second quarter of 2024, compared with 13.6% for the second quarter of 2023 and 14.0% for the first quarter of 2024. The year-over-year increase was primarily attributed to procurement savings as the cost of auto parts and materials decreased, partly offset by the lower average selling price of ZEEKR vehicles. The quarter-over-quarter increase was mainly due to the change in product mix. Vehicle margin remained generally stable in the second quarter of 2024.
Operating Expenses
Loss from Operations
Loss from operations was RMB1,721 .0 million ( US$236.8 million ) for the second quarter of 2024, representing an increase of 25.5% from RMB1,371.0 million for the second quarter of 2023 and a decrease of 17.5% from RMB2,086.9 million for the first quarter of 2024.
Net Loss and Net Loss Per Share
Net loss was RMB1,808 .8 million ( US$248.9 million ) for the second quarter of 2024, representing an increase of 28.7% from RMB1,405.2 million for the second quarter of 2023 and a decrease of 10.5% from RMB2,022.1 million for the first quarter of 2024.
Balance Sheets
Cash and cash equivalents and restricted cash was RMB8,048.1 million (US$1,107.5 million) as of June 30, 2024.
Conference Call
The Company's management will host an earnings conference call on Wednesday, August 21, 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/10191577/fd3dea2392
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. Our diverse product lineup spans a range of vehicle models, including shooting brakes, MPVs and upscale sedans, all meticulously designed to cater to the evolving needs of our customer needs.
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
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 RMB7.2672 to US$1.00, the exchange rate on June 28, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "future," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law.
For Investor Enquiries
ZEEKR
Investor Relations
Email: ir@zeekrlife.com
For Media Enquiries
ZEEKR
Media Relations
Email: Globalcomms@zeekrlife.com
ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands)
As of
December 31
June 30
June 30
2023
2024
2024
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents 3,260,670
5,495,539
756,211 Restricted cash 844,079
2,552,561
351,244 Notes receivable 487,851
1,502,984
206,817 Accounts receivable 1,104,450
1,206,222
165,982 Inventories 5,228,689
4,267,195
587,186 Amounts due from related parties 7,256,861
7,145,521
983,256 Prepayments and other current assets 2,294,508
3,062,405
421,401 Total current assets 20,477,108
25,232,427
3,472,097 Property, plant and equipment, net 2,914,274
3,320,738
456,949 Intangible assets, net 410,912
554,479
76,299 Land use rights, net 51,755
62,539
8,606 Operating lease right-of-use assets 2,443,545
2,319,631
319,192 Deferred tax assets 86,395
188,174
25,894 Long-term investments 459,794
638,097
87,805 Other non-current assets 273,717
362,830
49,927 Total non-current assets 6,640,392
7,446,488
1,024,672 TOTAL ASSETS 27,117,500
32,678,915
4,496,769
ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in thousands)
As of
December 31
June 30
June 30
2023
2024
2024
RMB
RMB
US$ LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term Borrowings -
30,000
4,128 Accounts payable 4,104,717
4,293,914
590,862 Notes payable 5,504,945
10,662,344
1,467,187 Amounts due to related parties 16,355,902
13,770,683
1,894,909 Income tax payable 108,083
239,300
32,929 Accruals and other current liabilities 6,243,956
8,697,194
1,196,775 Total current liabilities 32,317,603
37,693,435
5,186,790 Long-term borrowings -
414,680
57,062 Operating lease liabilities, non-current 1,807,159
1,662,850
228,816 Amounts due to related parties, non-current 1,100,000
450,000
61,922 Other non-current liabilities 563,001
505,010
69,492 Deferred tax liability 8,337
8,149
1,121 Total non-current liabilities 3,478,497
3,040,689
418,413 TOTAL LIABILITIES 35,796,100
40,734,124
5,605,203
SHAREHOLDERS' EQUITY
3,361
-
- Shares subscription receivable -
(66)
(9) Additional paid-in capital 11,213,798
15,635,867
2,151,567 Accumulated deficits (20,865,686)
(25,070,195)
(3,449,774) Accumulated other comprehensive income 17,555
49,456
(9,381,577)
(1,290,948) Non-controlling interest 952,787
1,326,368
182,514 TOTAL SHAREHOLDERS' DEFICIT (8,678,600)
(8,055,209)
(1,108,434) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 27,117,500
32,678,915
4,496,769
ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
Three Months Ended
June 30
March 31
June 30
June 30
2023
2024
2024
2024
RMB
RMB
RMB
US$ Revenues:
Vehicle sales 8,450,177
8,174,117
13,438,241
1,849,164 Sales of batteries and other components 3,894,307
6,318,535
5,299,171
729,190 Research and development service and
other services 305,190
244,100
1,302,639
179,249 Total revenues 12,649,674
14,736,752
20,040,051
2,757,603 Cost of revenues:
Vehicle sales (7,300,487)
(7,026,741)
(11,533,020)
(1,586,996) Sales of batteries and other components (3,606,782)
(5,883,360)
(4,223,452)
(581,166) Research and development service and
other services (192,079)
(87,301)
(833,756)
(114,729) Total cost of revenues (11,099,348)
(12,997,402)
(16,590,228)
(2,282,891) Gross profit 1,550,326
1,739,350
3,449,823
474,712 Operating expenses:
Research and development expenses (1,383,501)
(1,925,278)
(2,623,471)
(361,002) Selling, general and administrative
expenses (1,614,305)
(1,951,530)
(2,604,665)
(358,414) Other operating income, net 76,488
50,525
57,287
7,883 Total operating expenses (2,921,318)
(3,826,283)
(5,170,849)
(711,533) Loss from operations (1,370,992)
(2,086,933)
(1,721,026)
(236,821) Interest expense (87,364)
(10,700)
(23,396)
(3,219) Interest income 18,512
20,192
42,537
5,853 Other income/(expense), net 27,040
(29,658)
(7,809)
(1,075) Loss before income tax expense and
investments (1,412,804)
(2,107,099)
(1,709,694)
(235,262) Share of income/(loss) in equity method
investments (11,090)
90,882
85,852
11,814 Income tax expense 18,678
(5,889)
(184,980)
(25,454) Net loss (1,405,216)
(2,022,106)
(1,808,822)
(248,902) Less: income/(loss) attributable to non-
controlling interest 84,481
(7,782)
381,363
ZEEKR (1,489,697)
(2,014,324)
(2,190,185)
(301,379)
ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
Three Months Ended
June 30
March 31
June 30
June 30
2023
2024
2024
2024
RMB
RMB
RMB
Basic and diluted (0.74)
(1.01)
(0.95)
Basic and diluted 2,000,000,000
2,000,000,000
2,301,866,887
2,301,866,887 Net loss per ADS attributed to
Basic and diluted -
-
(9.51)
(1.31) Weighted average ADS used in
calculating net loss per ADS:
Basic and diluted -
-
230,186,689
230,186,689 Net loss (1,405,216)
(2,022,106)
(1,808,822)
(248,902) Other comprehensive income/(loss),
net of tax of nil:
Foreign currency translation
adjustments 48,240
(42,769)
74,670
10,275 Comprehensive loss (1,356,976)
(2,064,875)
(1,734,152)
(238,627) Less: comprehensive income/(loss)
attributable to non-controlling interest 84,481
(7,782)
381,363
52,477 Comprehensive loss attributable to
(2,057,093)
(2,115,515)
(291,104)
ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
Six Months Ended
June 30
June 30
June 30
2023
2024
2024
RMB
RMB
US$ Revenues:
Vehicle sales 13,175,373
21,612,358
2,973,959 Sales of batteries and other components 7,365,776
11,617,706
1,598,650 Research and development service and other
services 728,933
1,546,739
212,838 Total revenues 21,270,082
34,776,803
4,785,447 Cost of revenues:
Vehicle sales (11,549,164)
(18,559,761)
(2,553,908) Sales of batteries and other components (7,010,648)
(10,106,812)
(1,390,744) Research and development service and other
services (477,474)
(921,057)
(126,742) Total cost of revenues (19,037,286)
(29,587,630)
(4,071,394) Gross profit 2,232,796
5,189,173
714,053 Operating expenses:
Research and development expenses (3,188,554)
(4,548,749)
(625,929) Selling, general and administrative expenses (2,898,733)
(4,556,195)
(626,953) Other operating income, net 134,296
107,812
14,835 Total operating expenses (5,952,991)
(8,997,132)
(1,238,047) Loss from operations (3,720,195)
(3,807,959)
(523,994) Interest expense (192,165)
(34,096)
(4,692) Interest income 41,243
62,729
8,632 Other income/(expense), net 38,147
(37,467)
losses in equity method investments (3,832,970)
(3,816,793)
(525,209) Share of income/(loss) in equity method
investments (55,240)
176,734
24,319 Income tax expense 17,632
(190,869)
(26,264) Net loss (3,870,578)
(3,830,928)
(527,154) Less: income attributable to non-controlling
interest 13,452
373,581
ZEEKR (3,884,030)
(4,204,509)
(578,560)
ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
Six Months Ended
June 30
June 30
June 30
2023
2024
2024
RMB
RMB
Basic and diluted (1.94)
(1.95)
Basic and diluted 2,000,000,000
2,150,933,444
2,150,933,444 Net loss per ADS attributed to ordinary
Basic and diluted -
(19.55)
(2.69) Weighted average ADS used in calculating
net loss per ADS:
Basic and diluted -
215,093,344
215,093,344 Net loss (3,870,578)
(3,830,928)
(527,154) Other comprehensive income, net of tax of
nil:
Foreign currency translation adjustments 46,321
31,901
4,390 Comprehensive loss (3,824,257)
(3,799,027)
(522,764) Less: comprehensive income attributable to
non-controlling interest 13,452
373,581
51,406 Comprehensive loss attributable to
(4,172,608)
(574,170)
Three Months Ended
June 30
March 31
June 30
June 30
2023
2024
2024
2024
RMB
RMB
RMB
US$ Loss from operations (1,370,992)
(2,086,933)
(1,721,026)
(236,821) Share-based compensation expenses 37,471
2,734
943,921
129,888 Non-GAAP loss from operations (1,333,521)
(2,084,199)
(777,105)
(106,933) Net loss (1,405,216)
(2,022,106)
(1,808,822)
(248,902) Share-based compensation expenses 37,471
2,734
943,921
129,888 Non-GAAP net loss (1,367,745)
(2,019,372)
(864,901)
(119,014) Net loss attributable to ordinary
(2,014,324)
(2,190,185)
(301,379) Share-based compensation expenses 37,471
2,734
943,921
129,888 Non-GAAP net loss attributable to
(2,011,590)
(1,246,264)
(171,491)
Weighted average number of
Basic and diluted 2,000,000,000
2,000,000,000
2,301,866,887
2,301,866,887 Non-GAAP net loss per ordinary
Basic and diluted (0.73)
(1.01)
(0.54)
(0.07) Weighted average number of ADS
used in calculating Non-GAAP net
loss per ADS
Basic and diluted -
-
230,186,689
230,186,689 Non-GAAP net loss per ADS
Basic and diluted -
-
(5.41)
(0.75)
Six Months Ended
June 30
June 30
June 30
2023
2024
2024
RMB
RMB
US$ Loss from operations (3,720,195)
(3,807,959)
(523,994) Share-based compensation expenses 70,199
946,655
130,264 Non-GAAP loss from operations (3,649,996)
(2,861,304)
(393,730) Net loss (3,870,578)
(3,830,928)
(527,154) Share-based compensation expenses 70,199
946,655
130,264 Non-GAAP net loss (3,800,379)
(2,884,273)
(4,204,509)
(578,560) Share-based compensation expenses 70,199
946,655
130,264 Non-GAAP net loss attributable to
(3,257,854)
(448,296)
Weighted average number of ordinary
Basic and diluted 2,000,000,000
2,150,933,444
Basic and diluted (1.91)
(1.51)
(0.21) Weighted average number of ADS used in
calculating Non-GAAP net loss per ADS
Basic and diluted -
215,093,344
215,093,344 Non-GAAP net loss per ADS attributed to
Basic and diluted -
(15.15)
(2.08)
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SOURCE ZEEKR Intelligent Technology Holding Limited
