ZEEKR Intelligent Technology (ZK) Q1 2024 earnings summary

Executive summary

• Delivered 33,059 vehicles in Q1 2024, up 117% year-over-year, marking the best Q1 since inception and leading BEV sales in China for vehicles above RMB 200,000.

• April and May deliveries reached 16,089 and 18,616 units, with cumulative deliveries surpassing 260,000; confident in achieving the 2024 target of 230,000 units.

• Expanded product lineup with new models: ZEEKR 001 2024, ZEEKR 009 Grand, ZEEKR MIX, and ZEEKR 007, with two more models launching in H2 2024.

• Strengthened global presence, now in 20+ countries, with plans to reach 50+ by year-end.

• Successful IPO on the NYSE in May 2024, significantly strengthening the balance sheet.

Financial highlights

• Q1 2024 total revenue: RMB 14,736.8 million ($2,041 million), up 71% year-over-year, down 9.9% sequentially.

• Vehicle sales revenue: RMB 8,174.1 million ($1,132 million), up 73% year-over-year, down 22.8% sequentially.

• Battery and component sales: RMB 6,318.5 million ($875.1 million), up 82% year-over-year, up 56.5% sequentially.

• R&D and other services revenue: RMB 244.1 million ($33.8 million), down 42.4% year-over-year, down 85.9% sequentially.

• Gross margin: 11.8% (Q1 2024), up from 7.9% a year ago, down from 14.2% in Q4 2023.

• Vehicle margin: 14% (Q1 2024), up from 10.1% a year ago, down from 15.3% in Q4 2023.

• R&D expenses: RMB 1,925.3 million ($266.6 million), up slightly year-over-year, down 39.1% sequentially.

• SG&A expenses: RMB 1,951.5 million ($270.3 million), up 51.9% year-over-year, down 11.6% sequentially.

• Operating loss: RMB 2,086.9 million ($289 million), down 11.2% year-over-year, down 29.3% sequentially.

• Net loss: RMB 2,022.1 million ($280.1 million), down 18% year-over-year, down 31.2% sequentially.

• Adjusted net loss (non-GAAP): RMB 2,019.4 million ($279.7 million), down 17% year-over-year, down 30.4% sequentially.

• Cash and equivalents: RMB 3,791.1 million ($525.1 million) as of March 31, 2024.

Outlook and guidance

• Confident in achieving 230,000 vehicle deliveries in 2024, supported by new model launches and production ramp-up.

• Plans to expand retail footprint to over 520 stores by year-end, focusing on Tier 3 and 4 cities.

• R&D spending expected to reach around RMB 10 billion in 2024, with a focus on software and intelligent technologies.

• CapEx expected to be similar or slightly higher than RMB 1.9 billion in 2023.

• Focus remains on expanding the ultra-fast charging ecosystem, channel services, and leveraging synergies with Geely Group.