Zeekr has disclosed its first-quarter financial results, marking its initial earnings report following its debut on the US stock market. The company’s performance has sparked investor enthusiasm, leading to a surge in its pre-market share prices.
For the first quarter, Zeekr reported a net loss of RMB 2.02 billion ($280 million), representing an 18 percent decrease from the same period last year and a 31.2 percent decline from the previous quarter. The company’s non-GAAP net loss, excluding equity incentive expense, also decreased by 17 percent year-on-year and 30.4 percent quarter-on-quarter, amounting to RMB 2.02 billion.
Both basic and diluted net loss per share for the first quarter were reported at RMB 1.01, compared to RMB 1.2 and RMB 1.49, respectively, in the first quarter and fourth quarter of 2023. Zeekr’s non-GAAP basic and diluted net loss per share for the first quarter was RMB 1.01, surpassing analysts’ expectations of a loss of RMB 11.73.
In terms of vehicle deliveries, Zeekr delivered 33,059 vehicles in the first quarter, marking a substantial 117.01 percent increase year-on-year, despite a 16.64 percent decline from the previous quarter. This led to first-quarter revenue of RMB 14.74 billion, a 71 percent increase from the first quarter of 2023 but a 9.9 percent decrease from the fourth quarter of 2023.
Revenue from vehicle sales in the first quarter amounted to RMB 8.17 billion, up 73 percent from the same period last year but down 22.8 percent from the previous quarter. Zeekr attributed the year-on-year increase to higher vehicle sales volume and the decrease to seasonal factors affecting deliveries and lower average selling prices.
Revenue from sales of batteries and other components totaled RMB 6.32 billion in the first quarter, an 82 percent increase from the first quarter of 2023 and a 56.5 percent increase from the fourth quarter of 2023. This growth was primarily driven by higher sales of battery packs and electric drives, as well as increased overseas sales of battery components.
Zeekr reported a gross margin of 11.8 percent in the first quarter, compared to 7.9 percent in the first quarter of 2023 and 14.2 percent in the fourth quarter of 2023. The company’s vehicle margin was 14 percent in the first quarter, up from 10.1 percent in the first quarter of 2023 but down from 15.3 percent in the fourth quarter of 2023.
Research and development expenses for the first quarter amounted to RMB 1.93 billion, a 6.7 percent increase from the first quarter of 2023 but a 39.1 percent decrease from the fourth quarter of 2023. Zeekr attributed the year-on-year increase to higher employee compensation and expenses related to an expanding product portfolio and smart technologies.
As of March 31, Zeekr’s cash and cash equivalents and restricted cash totaled RMB 3.79 billion. The company did not provide delivery or revenue guidance for the second quarter.
Overall, Zeekr’s first-quarter performance reflects a significant improvement in its financials, driven by strong vehicle deliveries and revenue growth. The company’s efforts to expand its product portfolio and drive innovation are expected to further strengthen its position in the electric vehicle market.
