Premium electric vehicle (EV) manufacturer Zeekr, a subsidiary of Geely Auto, has clarified that it is proceeding with its planned initial public offering (IPO) in the United States, dispelling earlier reports suggesting a halt to the effort.
In response to recent claims that Zeekr had paused its intended US IPO due to subdued market sentiment, the company asserted that it has filed a prospectus with the US Securities and Exchange Commission (SEC), and preparations for the IPO are progressing in an orderly manner.
While Zeekr acknowledges ongoing scrutiny of market conditions, it remains committed to monitoring the situation and determining the opportune time to revive the IPO, according to information shared with CnEVPost.
Zeekr, established as an independent entity in March 2021, initiated the IPO process when it confidentially filed a draft registration statement with the SEC on December 13, 2022. On November 9, 2023, the company publicly filed an application to go public in the US, intending to list on the New York Stock Exchange under the ticker symbol ZK.
Financial disclosures in Zeekr's prospectus revealed revenue figures of RMB 3.185 billion ($447 million), RMB 6.528 billion, and RMB 31.9 billion for the years 2020 through 2022, respectively. Notably, the company's revenue for the first half of 2023 stood at RMB 21.27 billion, reflecting a robust year-on-year increase of 136.07 percent.
Gross margins for Zeekr were reported at 15.9 percent and 7.7 percent in 2021 and 2022, respectively. In the first half of 2023, the gross margin figure rose to 10.5 percent, surpassing the 9.7 percent recorded in the same period the previous year.
Despite challenges faced by US-listed Chinese companies in recent months, Zeekr's updated prospectus for the first three quarters of 2023 showcased a revenue of RMB 35.32 billion, up 91.22 percent year-on-year. Notably, revenue from vehicle sales accounted for approximately 66 percent of the overall revenue.
Zeekr's revenue diversification strategy was highlighted in its prospectus, with income derived from vehicle sales, core parts business, research and development, and other services. The company witnessed a notable shift, with revenue outside of vehicle sales increasing from RMB 4.98 billion to RMB 12 billion from 2021 to the first three quarters of 2023, while its contribution to operating revenue decreased from 76.3 percent to 34 percent.
While there is no specific information on Zeekr's valuation, earlier reports suggested the company was targeting an $18 billion valuation for its planned US IPO, comparable to the market capitalization of Nio (NYSE: NIO). However, the market capitalization of US-listed Chinese companies, including Nio, has experienced a decline in recent months.