Geely Automobile Holdings has announced its intention to achieve profitability in 2024 on a Hong Kong financial reporting standard basis, driven by higher sales and gross profit for its electric vehicle (EV) brand Zeekr.
According to Geely’s earnings report, Zeekr is targeting sales of 230,000 units this year, representing a significant growth of about 94 percent compared to the 118,685 vehicles delivered in 2023.
To expand its market presence, Zeekr plans to launch three new models in 2024, including the Zeekr Mix, an all-electric mid-size luxury SUV, and a top-of-the-line luxury all-electric MPV (Multi-Purpose Vehicle). These new models will complement Zeekr’s current lineup, which includes the Zeekr 001 shooting brake, Zeekr 007 sedan, Zeekr X SUV, and Zeekr 009 MPV.
The Zeekr Mix recently entered a regulatory filing catalog with China’s Ministry of Industry and Information Technology (MIIT), showcasing its core specifications, indicating progress towards its launch.
Zeekr was established as a standalone company in March 2021 and has been preparing for a potential IPO. The company filed a draft registration statement for a possible IPO with the US Securities and Exchange Commission on a confidential basis in December 2022, and publicly filed an application to go public in the US in November 2023, planning to list on the New York Stock Exchange under the ticker symbol ZK.
Despite revenue growth over the years, Zeekr has reported net losses. In 2021, 2022, and the first half of 2023, it had revenues of RMB 6.528 billion ($910 million), RMB 31.9 billion, and RMB 21.27 billion, respectively, with corresponding net losses of RMB 4.514 billion, RMB 7.655 billion, and RMB 3.871 billion. However, Zeekr has shown improvement in gross margins, with 15.9 percent and 7.7 percent in 2021 and 2022, respectively, and 10.5 percent in the first half of 2023.
With ambitious sales targets and a focus on expanding its product lineup, Zeekr aims to capitalize on the growing demand for electric vehicles and achieve profitability in 2024, marking a significant milestone in its growth strategy.
