Zeekr Group posted a slight year-on-year increase in revenue and an improved gross margin for the first quarter of 2025, as the integration of its Zeekr and Lynk & Co brands drove efficiency gains, the company said on Friday.
Revenue reached RMB 22 billion ($3.03 billion) in the quarter, up 1.1% from RMB 21.8 billion a year earlier. However, revenue fell 37.8% compared to RMB 35.4 billion in the fourth quarter of 2024, reflecting seasonally lower deliveries.
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The group’s vehicle sales brought in RMB 19.1 billion, marking a 16.1% rise from the same quarter last year but a 38.4% drop from the previous quarter. Zeekr Group delivered 114,011 vehicles in the quarter, a 21.14% increase from the combined Zeekr and Lynk & Co deliveries in Q1 2024, though down 32.57% from Q4 2024.
Zeekr brand deliveries totaled 41,403 units, up 25.24% year-on-year but down 47.76% sequentially. Lynk & Co delivered 72,608 vehicles, a year-on-year increase of 18.92% but a decline of 19.18% from the previous quarter.
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Gross margin improved to 19.1%, up from 16.3% a year earlier and 18.0% in Q4 2024. Vehicle margin rose to 16.5% from 13.1% in Q1 2024 and 14.3% in Q4. The gains were mainly driven by cost-saving measures, though partially offset by lower average selling prices.
“The initial technological consolidation of the two brands has already boosted profitability through optimized R&D and shared platforms,” said Andy An, CEO of Zeekr Group.
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Research and development expenses for the quarter totaled RMB 2.91 billion, up 25.0% from RMB 2.33 billion in Q1 2024, but down 25.6% from the previous quarter.