Zeekr Group reported a sharp improvement in its third-quarter financial performance, with losses narrowing significantly on the back of higher deliveries and reduced research and development spending.
The company posted a net loss of RMB 307 million ($43 million) for the third quarter, down 84.9% from a loss of RMB 2.028 billion a year earlier and a 7.0% reduction from the second quarter. Excluding stock-based compensation, the non-GAAP net loss stood at RMB 265 million, an 86.6% year-on-year decline.
Zeekr Group delivered 140,195 vehicles during the quarter, an increase of 12.51% year-on-year and up 7.13% from the second quarter. This supported quarterly revenue of RMB 31.56 billion, representing growth of 9.1% year-on-year and 15.1% quarter-on-quarter.
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Performance varied across the Group’s brands. The premium Zeekr marque delivered 52,860 vehicles, down 3.90% year-on-year but up 7.14% sequentially. Lynk & Co shipments reached 87,335 units, rising 25.48% from a year earlier and 7.12% quarter-on-quarter.
R&D expenses totaled RMB 2.74 billion, an 8.6% decrease from a year earlier but up 27.8% from the second quarter. SG&A expenses climbed to RMB 3.78 billion, rising 11.3% year-on-year and 12.5% quarter-on-quarter, driven mainly by increased promotional activity. The company noted these costs were linked to “higher marketing and advertising expenditures to support new model launches and sales growth.”
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Gross margin for the quarter improved to 19.2%, compared with 15.2% a year ago, though it eased from 20.6% in the second quarter. Vehicle margin stood at 15.6%, up from 12.6% in the same period last year but lower than 17.3% in the previous quarter.
