ZEEKR Intelligent Technology (ZK) Q4 2024 earnings summary

Executive summary

• Achieved record sales of over 500,000 vehicles in 2024, with Zeekr brand deliveries up 87% year-over-year and Lynk & Co up nearly 30% year-over-year, making Zeekr the top premium BEV brand in China.

• Completed the merger of Zeekr and Lynk & Co in February 2025, forming a group with over 1.82 million global users and targeting 710,000 vehicle deliveries in 2025.

• Q4 2024 total revenue rose 39.2% year-over-year to RMB22.8 billion; full-year revenue increased 46.9% to RMB75.9 billion.

• Net loss narrowed significantly in Q4 2024 to RMB820.6 million, down 72.1% year-over-year; full-year net loss decreased 29.9% to RMB5,790.6 million.

• Strategic focus on upmarket expansion for Zeekr, broader reach for Lynk & Co, and global sales growth, aiming for 10% of 2025 sales from overseas markets.

Financial highlights

• Total revenue reached CNY 75.9 billion in 2024, up 46.9% year-over-year; vehicle revenue was CNY 55.5 billion, up 63% year-over-year.

• Fourth quarter vehicle gross margin was 17.3%, with full-year vehicle margin at 15.6%, both showing sequential improvement.

• Net loss reduced by 30% year-over-year to RMB 5,790.6 million, driven by improved profitability and operational efficiency.

• Free cash flow for 2024 reached RMB 1.5 billion, a record high.

• Pro forma combined revenue for 2024 (Zeekr + Lynk & Co) was RMB 130.9 billion with over 507,000 vehicles delivered.

Outlook and guidance

• Targeting 710,000 vehicle deliveries in 2025, a 40% increase year-over-year.

• Aiming for 15% vehicle margin in Q4 2025 and for the full year, with further cost and efficiency synergies from integration.

• R&D expense ratio targeted to decrease to 6% in two years; SG&A ratio to 8%.

• Committed to achieving quarterly US GAAP break-even in 2025.

• 2026 goal to become a global luxury NEV group with annual sales close to or above 1 million units.