ZEEKR Intelligent Technology (ZK) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached CNY 20 billion (RMB20,040.1 million), up 58% year-over-year and 36% quarter-over-quarter, driven by strong vehicle sales and component growth.

• Achieved record Q2 2024 vehicle deliveries of 54,811 units, up 100% year-over-year and 66% quarter-over-quarter.

• Gross profit more than doubled year-over-year to RMB3,449.8 million, with gross margin rising to 17.2%.

• The company remains committed to product excellence, operational efficiency, and global expansion despite fierce competition and economic headwinds.

• Upgraded models (001, 007, 009) and new launches (7X, MIX) are expected to boost sales in the second half of 2024.

Financial highlights

• Vehicle sales revenue was CNY 13.4 billion (RMB13,438.2 million), up nearly 60% year-over-year and 65% quarter-over-quarter.

• Battery and component sales revenue was CNY 5.3 billion (RMB5,299.2 million), up 36% year-over-year but down 16% quarter-over-quarter; Q2 gross margin for this segment was over 20%.

• R&D service revenue reached CNY 1.2 billion (RMB1,302.6 million), up over 300% year-over-year and 400% quarter-over-quarter.

• R&D expenses were CNY 2.6 billion, up 90% year-over-year, mainly due to share-based compensation.

• Net loss for Q2 was CNY 1.8 billion (RMB1,808.8 million); non-GAAP net loss was CNY 865 million (RMB864.9 million), down 36% year-over-year and 57% quarter-over-quarter.

• Operating cash inflow was CNY 1.5 billion; free cash flow was CNY 820 million; cash and equivalents exceeded CNY 8 billion at quarter-end.

Outlook and guidance

• Full-year vehicle sales target of 230,000 units is maintained, with confidence in achieving it despite market pressures.

• Q4 overseas sales are expected to grow significantly compared to Q3.

• Full-year CapEx guidance is CNY 1.9–2.1 billion, with H1 CapEx at CNY 1.1 billion.

• Vehicle segment gross margin guidance remains at 15.5% for the year; battery and component segment margin expected at 10–12%.

• Management remains focused on R&D investment, product quality, and global expansion to drive long-term value and sustainable growth.