Zeekr's second quarter revenue exceeded 20 billion yuan, a new high, and three models including 001 will no longer have annual model iterations within a year
2024-08-25
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Under Hong Kong accounting standards, after excluding the impact of share-based payments, Zeekr turned losses into profits in the second quarter.
On August 21, Zeekr Intelligent Technology Holdings Co., Ltd. (Zekr, NYSE: ZK) announced its second quarter 2024 financial report, showing that Zeekr achieved revenue of 20.04 billion yuan in the second quarter, a month-on-month increase of 36% and a year-on-year increase of 58.4%, a record high; net loss was 1.8 billion yuan, a decrease of 10.5% from the first quarter. It is worth noting that on the same day, the first half performance report released by Geely Automobile, the parent company of Zeekr, showed that under Hong Kong accounting standards, after excluding the impact of share-based payments, Zeekr turned losses into profits in the second quarter.
In terms of gross profit margin, which the market is very concerned about, Zeekr's gross profit margin in the second quarter has reached 17.2%, up 4.9 percentage points from 12.3% in 2023. Among them, the gross profit margin of the whole vehicle is 14.2%, an increase of 0.6 percentage points year-on-year and 0.2 percentage points month-on-month.
In the first half of the year, Zeekr Auto's operating revenue was nearly 35 billion yuan, a year-on-year increase of more than 60%; the gross profit margin was 14.9%, a year-on-year increase of 4.4 percentage points; and the net loss was 3.83 billion yuan, a year-on-year reduction of 40 million yuan.
In terms of sales, in the second quarter, Zeekr delivered a total of 54,800 vehicles, doubling the same period last year and up 66% from the previous month. In particular, in June, monthly deliveries exceeded the important milestone of 20,000 vehicles for the first time. From January to June, Zeekr delivered a total of 87,900 new vehicles. As of the end of July, Zeekr's cumulative deliveries in 33 months exceeded 300,000 vehicles.
Looking ahead to the second half of 2024, Zeekr still maintains its annual sales target of 230,000 vehicles.
An Conghui, President of Geely Holding Group and CEO of Zeekr Intelligent Technology, predicted in the earnings call that the company's gross profit margin will continue to maintain or be expected to further increase in the third and fourth quarters. He believes that this is mainly due to the scale effect brought by the vast architecture and the vertical integration capability of the industrial chain.
He said that the company has achieved self-research and production of core components and high-cost components in the fields of electrification and intelligence, which has also driven down costs.
The financial report shows that Zeekr's investment in research and development is continuing to grow. The financial report shows that in the second quarter of this year, Zeekr Auto's R&D investment reached 2.62 billion yuan, an increase of nearly 90% year-on-year and 36% month-on-month; in the first half of this year, Zeekr Auto's cumulative R&D investment was 4.55 billion yuan, a year-on-year increase of 42.6%. Zeekr said that since its establishment, Zeekr has accumulated more than 21.5 billion yuan in R&D investment.
In terms of new products, An Conghui revealed that Zeekr will release a large flagship SUV model in the fourth quarter of 2025. The model will be equipped with two power forms, including pure electric and super electric hybrid. He said that market research shows that the market still has a strong demand for hybrid models for large SUVs. Geely has been manufacturing cars for decades and has a strong foundation and technical reserves in engines, gearboxes, etc.
In terms of sales channels, by the end of July 2024, Zeekr has opened 438 stores worldwide, including 404 in China and 34 overseas. The number of Zeekr stores that integrate test drive, sales, delivery and after-sales services has increased to 79, and it is planned to increase to 140 by the end of the year.
In terms of global business, Zeekr introduced that by the end of July, Zeekr had successfully entered more than 30 major international markets including the Netherlands, Sweden, Thailand, the United Arab Emirates and Saudi Arabia. On August 1, Zeekr completed the delivery of the world's first right-hand drive version of the Zeekr X in Thailand, and will gradually promote it to other right-hand drive markets.
It is revealed that the right-hand drive version of Zeekr 009 will start mass delivery in the fourth quarter of this year. The company aims to further expand its business to more mainstream international markets such as Europe, Latin America, Oceania, etc. by the end of the year.
It is worth noting that on August 13, Zeekr launched the 2025 Zeekr 001 and 2025 Zeekr 007. Due to the "increased configuration and price reduction" within half a year and the changes in the intelligent driving system, many old users and users who have not picked up the car are dissatisfied.
An Conghui responded that the rapid iteration of Zeekr products broke industry practices. The lack of communication with users before the product launch caused some complaints and complaints, for which he expressed great understanding.
He said that the original intention was to hope that users could quickly use the latest technology and have a better product experience. Zeekr wants to become an innovation-driven company. How to do a good job in product iteration and old user relationships in the future, the management team has fully realized this. This is a difficult but correct thing, and it must be faced and solved correctly in the future.
He made it clear that it is impossible for Zeekr 001, 007, and 009 to have any model iterations within a year, but changes in color and optional configurations are not ruled out.
The Paper reporter Wu Yuli and intern Tao Lemeng
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