Zeekr, the Chinese electric vehicle (EV) manufacturer, reported a significant reduction in its net loss for the third quarter of 2024, despite a slight drop in revenue and nearly flat vehicle deliveries compared to the previous quarter.
The company posted revenue of RMB 18.36 billion ($2.62 billion) for the quarter, missing analysts’ expectations of RMB 19.71 billion, as per unaudited results released today. This figure represents a 30.71% increase from the same period last year but a decline of 8.39% compared to the second quarter of 2024. Zeekr did not provide any prior guidance on its revenue or vehicle deliveries for the third quarter.
Zeekr’s vehicle deliveries reached a record 55,003 units in the third quarter, reflecting a 51.13% year-on-year increase and a slight 0.35% increase from the previous quarter. This growth contributed to a record RMB 14.4 billion in revenue from vehicle sales, marking a 42.0% increase from Q3 2023 and a 7.2% rise from the previous quarter. The increase was driven by the launch of the Zeekr 7X model and higher average selling prices, the company said.
However, revenue from battery sales and other components decreased to RMB 3.25 billion, down 1.3% year-on-year and 38.8% from the second quarter. Zeekr attributed this decline to lower battery pack sales in the domestic market.
Zeekr’s net loss narrowed to RMB 1.14 billion in Q3, a 21.75% improvement from the same period in 2023 and a 37.02% reduction from the prior quarter. Excluding equity incentive expenses, the non-GAAP adjusted net loss was RMB 1.09 billion, marking a 23.4% improvement year-on-year but a 26.3% increase from the previous quarter.
The company’s gross margin for Q3 stood at 16.0%, surpassing analysts’ expectations of 15.3%, though it declined from 17.2% in the second quarter of 2024. This drop was attributed to lower margins on batteries and other components. The vehicle margin for the quarter was 15.7%, down from 18.1% in Q3 2023 but up from 14.2% in Q2 2024, with the improvement linked to changes in product mix.
Research and development expenses for the quarter were RMB 1.97 billion, a 2.6% decrease year-on-year and a more significant 25.1% drop from the previous quarter, partly due to a one-time equity incentive charge related to the company’s initial public offering in Q2 2024.
As of September 30, 2024, Zeekr had cash and cash equivalents, along with restricted cash, totaling RMB 8.3 billion. The company did not provide guidance for deliveries or revenue in the upcoming quarter.
