ZEEKR Intelligent Technology (ZK) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly deliveries of 55,003 units, up 51% year-over-year and slightly above the previous quarter, with October deliveries surpassing 25,000 units and cumulative 2024 deliveries nearing 170,000 units.

• Total revenues reached RMB18,358.0 million ($2,616.0 million), up 30.7% year-over-year but down 8.4% sequentially.

• Net loss narrowed to RMB1,139.1 million ($162.3 million), a 21.7% improvement year-over-year and 37.0% sequentially.

• Targeting monthly deliveries of over 30,000 units in the next two months, aiming to reach the annual delivery target of 230,000 units.

• Announced integration with Lynk & Co to expand market coverage and drive synergies across product, technology, and operations.

Financial highlights

• Q3 vehicle sales revenue exceeded CNY 14.4 billion, up 42.0% year-over-year and 7.2% quarter-over-quarter.

• Gross margin was 16.0%, stable year-over-year but down from 17.2% in the previous quarter.

• Gross profit was RMB2,941.8 million ($419.2 million), up 28.5% year-over-year but down 14.7% sequentially.

• Cash and cash equivalents plus restricted cash totaled RMB8,297.7 million ($1,182.4 million) at quarter-end.

• Adjusted net loss (non-GAAP) was RMB1,092.6 million ($155.7 million), down 23.4% year-over-year.

Outlook and guidance

• Confident in achieving the 2024 annual delivery target of 230,000 units.

• Expecting further gross margin improvement in Q4 due to strong demand for high-margin models and positive product mix.

• Aiming for break-even under Hong Kong Financial Reporting System this year, with profitability under U.S. GAAP as the next goal.

• Management expects continued growth through product expansion, cost control, and technological innovation.

• Plans to consolidate resources, strengthen product capabilities, and expand industry presence for sustainable growth.