HANGZHOU, China, Nov. 14, 2024 /PRNewswire/ -- ZEEKR Intelligent Technology Holding Limited ("ZEEKR" or the "Company") (NYSE: ZK), a global premium electric mobility technology company, today announced its unaudited financial results for the third quarter ended September 30, 2024.
Operating Highlights for the Third Quarter of 2024
Deliveries | 2024 Q3 | 2024 Q2 | 2024 Q1 | 2023 Q4 | ||||
55,003 | 54,811 | 33,059 | 39,657 | |||||
Deliveries | 2023 Q3 | 2023 Q2 | 2023 Q1 | 2022 Q4 | ||||
36,395 | 27,399 | 15,234 | 32,467 |
Financial Highlights for the Third Quarter of 2024
[1] All conversions from Renminbi("RMB") to U.S. dollars ("US$") are made at an exchange rate of RMB7.0176 to US$1.00, set forth in the H.10 statistical release of the Federal Reserve Board on September 30, 2024. |
[2] Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of revenues derived from vehicle sales only. |
[3] The Company's non-GAAP financial measures exclude share-based compensation expenses. See "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement. |
Key Financial Results
(in RMB millions, except for percentages)
2024 Q3 | 2024 Q2 | 2023 Q3 | % Change i | |||
YoY | QoQ | |||||
Vehicle sales | 14,401.3 | 13,438.2 | 10,143.7 | 42.0 % | 7.2 % | |
Vehicle margin | 15.7 % | 14.2 % | 18.1 % | (2.4)pts | 1.5pts | |
Total revenues | 18,358.0 | 20,040.1 | 14,044.6 | 30.7 % | (8.4) % | |
Gross profit | 2,941.8 | 3,449.8 | 2,289.4 | 28.5 % | (14.7) % | |
Gross margin | 16.0 % | 17.2 % | 16.3 % | (0.3)pts | (1.2)pts | |
Loss from operations | (1,216.4) | (1,721.0) | (1,507.8) | (19.3) % | (29.3) % | |
Non-GAAP loss from operations | (1,169.8) | (777.1) | (1,477.6) | (20.8) % | 50.5 % | |
Net loss | (1,139.1) | (1,808.8) | (1,455.7) | (21.7) % | (37.0) % | |
Non-GAAP net loss | (1,092.6) | (864.9) | (1,425.6) | (23.4) % | 26.3 % | |
i | Except for vehicle margin and gross margin, absolute changes instead of percentage changes are presented. |
Recent Developments
Delivery Update
In October 2024, the Company delivered 25,049 vehicles, representing an increase of 92% from October 2023.
New Model Launches
On October 23, 2024, ZEEKR officially launched and commenced deliveries of the ZEEKR MIX, a five-seat, family-oriented vehicle. The ZEEKR MIX redefines the concept of an everyday driver, seamlessly combining ample space, outstanding safety, and agile handling. As the first model built on the Company's SEA-M architecture, the ZEEKR MIX boasts up to 93% in-cabin space utilization, maximizing interior space through innovative packaging and a capsule-style exterior. Two front-row seats that can swivel 270 degrees and a movable central console enhance cabin versatility, enabling "9+N" cabin scenario modes and flexible seating arrangements.
CEO and CFO Comments
"Our performance remained strong and resilient this quarter, marked by record-high deliveries and successful new model launches," said Mr. Andy An, ZEEKR's chief executive officer. "In the third quarter, we set a new record with 55,003 vehicle deliveries, representing a 51% year-over-year increase, and reached an additional milestone in October with monthly deliveries of 25,049 units. Notably, the ZEEKR 7X's deliveries exceeded 20,000 units within 50 days since its launch, marking a robust achievement in the highly competitive mainstream SUV market. As we expand our product lineup and strengthen each model's position in its respective category, we are delivering ZEEKR's ultimate driving experience to more users, further cementing ZEEKR's industry leadership."
Mr. Jing Yuan, ZEEKR's chief financial officer, added, "Our disciplined cost control measures, coupled with ongoing optimization of product structure, economies of scale, and technological innovation, drove a 30.7% year-over-year increase in revenue. Vehicle sales for the quarter grew by 42.0% and 7.2% year-over-year and quarter-over-quarter, respectively. Meanwhile, vehicle margin remained on an upward trajectory, rising to 15.7% in the third quarter of 2024, highlighting our consistent progress in profitability enhancement. Looking ahead, we will continue to consolidate resources, strengthen product capabilities, and expand our industry presence to propel our sustainable growth."
Financial Results for the Third Quarter of 2024
Revenues
Cost of Revenues and Gross Margin
Operating Expenses
Loss from Operations
Net Loss and Net Loss Per Share
[4] Each ADS represents ten ordinary shares. |
Balance Sheets
Cash and cash equivalents and restricted cash was RMB8,297.7 million (US$1,182.4 million) as of September 30, 2024.
Conference Call
The Company's management will host an earnings conference call on Thursday, November 14, 2024, at 7:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day).
All participants who wish to join the call are requested to complete the online registration using the link provided below. After registration, each participant will receive by email a set of dial-in numbers, a passcode and a unique access PIN to join the conference call. Participants may pre-register at any time, including up to and after the call start time.
Participant Online Registration: https://dpregister.com/sreg/10194063/fdd5d5735e
A live webcast of the conference call will be available on the Company's investor relations website at https://ir.zeekrlife.com/.
About ZEEKR
ZEEKR (NYSE: ZK) is a global premium electric mobility technology brand from Geely Holding Group. ZEEKR aims to create a fully integrated user ecosystem with innovation as a standard. ZEEKR utilizes Sustainable Experience Architecture (SEA) and develops its own battery technologies, battery management systems, electric motor technologies, and electric vehicle supply chains. ZEEKR's value is equality, diversity, and sustainability. Its ambition is to become a true mobility solution provider.
ZEEKR operates its R&D centers and design studios in Ningbo, Hangzhou, Gothenburg, and Shanghai and boasts state-of-the-art facilities and world-class expertise. Since ZEEKR began delivering vehicles in October 2021, the brand has developed a diversified product portfolio that primarily includes the ZEEKR 001, a luxury shooting brake; the ZEEKR 001 FR, a hyper-performing electric shooting brake; the ZEEKR 009, a pure electric luxury MPV; the ZEEKR 009 Grand, a four-seat ultra-luxury flagship MPV; the ZEEKR X, a compact SUV; the ZEEKR 7X, a premium electric five-seater SUV; the ZEEKR MIX; and an upscale sedan model. ZEEKR has announced plans to sell vehicles in global markets, and has an ambitious roll-out plan over the next 5 years to satisfy the rapidly expanding global EV demand.
For more information, please visit https://ir.zeekrlife.com/.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic and diluted net loss per ordinary share attributed to ordinary shareholders, non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company's operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance.
For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and non-GAAP Results" set forth in this announcement.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "future," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law.
For Investor Enquiries
ZEEKR
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Media Relations
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ZEEKR INC. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Amounts in thousands) | |||||
As of | |||||
December 31 | September 30 | September 30 | |||
2023 | 2024 | 2024 | |||
RMB | RMB | US$ | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | 3,260,670 | 5,640,993 | 803,835 | ||
Restricted cash | 844,079 | 2,656,734 | 378,582 | ||
Notes receivable | 487,851 | 952,108 | 135,674 | ||
Accounts receivable | 1,104,450 | 2,096,355 | 298,728 | ||
Inventories | 5,228,689 | 4,745,085 | 676,169 | ||
Amounts due from related parties | 7,256,861 | 6,535,623 | 931,319 | ||
Prepayments and other current assets | 2,294,508 | 2,711,024 | 386,317 | ||
Total current assets | 20,477,108 | 25,337,922 | 3,610,624 | ||
Property, plant and equipment, net | 2,914,274 | 3,265,370 | 465,312 | ||
Intangible assets, net | 410,912 | 624,404 | 88,977 | ||
Land use rights, net | 51,755 | 62,185 | 8,861 | ||
Operating lease right-of-use assets | 2,443,545 | 2,225,175 | 317,085 | ||
Deferred tax assets | 86,395 | 195,175 | 27,812 | ||
Long-term investments | 459,794 | 629,383 | 89,686 | ||
Other non-current assets | 273,717 | 367,752 | 52,404 | ||
Total non-current assets | 6,640,392 | 7,369,444 | 1,050,137 | ||
TOTAL ASSETS | 27,117,500 | 32,707,366 | 4,660,761 | ||
ZEEKR INC. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||
(Amounts in thousands) | |||||
As of | |||||
December 31 | September 30 | September 30 | |||
2023 | 2024 | 2024 | |||
RMB | RMB | US$ | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Short-term Borrowings | - | 30,000 | 4,275 | ||
Accounts payable | 4,104,717 | 3,589,418 | 511,488 | ||
Notes payable | 5,504,945 | 12,474,151 | 1,777,552 | ||
Amounts due to related parties | 16,355,902 | 15,008,230 | 2,138,656 | ||
Income tax payable | 108,083 | 172,826 | 24,628 | ||
Accruals and other current liabilities | 6,243,956 | 8,114,841 | 1,156,354 | ||
Total current liabilities | 32,317,603 | 39,389,466 | 5,612,953 | ||
Long-term borrowings | - | 414,630 | 59,084 | ||
Operating lease liabilities, non-current | 1,807,159 | 1,577,950 | 224,856 | ||
Amounts due to related parties, non-current | 1,100,000 | - | - | ||
Other non-current liabilities | 563,001 | 540,082 | 76,961 | ||
Deferred tax liability | 8,337 | 8,224 | 1,172 | ||
Total non-current liabilities | 3,478,497 | 2,540,886 | 362,073 | ||
TOTAL LIABILITIES | 35,796,100 | 41,930,352 | 5,975,026 | ||
SHAREHOLDERS' EQUITY | |||||
Ordinary shares | 2,584 | 3,361 | 479 | ||
Convertible preferred shares | 362 | - | - | ||
Shares subscription receivable | - | (66) | (9) | ||
Additional paid-in capital | 11,213,798 | 15,683,094 | 2,234,823 | ||
Accumulated deficits | (20,865,686) | (26,296,475) | (3,747,218) | ||
Accumulated other comprehensive income/(loss) | 17,555 | (26,402) | (3,762) | ||
Total ZEEKR shareholders' deficit | (9,631,387) | (10,636,488) | (1,515,687) | ||
Non-controlling interest | 952,787 | 1,413,502 | 201,422 | ||
TOTAL SHAREHOLDERS' DEFICIT | (8,678,600) | (9,222,986) | (1,314,265) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' | 27,117,500 | 32,707,366 | 4,660,761 | ||
ZEEKR INC. | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE | |||||||
(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted) | |||||||
Three Months Ended | |||||||
September 30 | June 30 | September 30 | September 30 | ||||
2023 | 2024 | 2024 | 2024 | ||||
RMB | RMB | RMB | US$ | ||||
Revenues: | |||||||
Vehicle sales | 10,143,742 | 13,438,241 | 14,401,309 | 2,052,170 | |||
Sales of batteries and other components | 3,288,766 | 5,299,171 | 3,245,331 | 462,456 | |||
Research and development service and | 612,103 | 1,302,639 | 711,362 | 101,368 | |||
Total revenues | 14,044,611 | 20,040,051 | 18,358,002 | 2,615,994 | |||
Cost of revenues: | |||||||
Vehicle sales | (8,308,327) | (11,533,020) | (12,146,781) | (1,730,902) | |||
Sales of batteries and other components | (3,050,588) | (4,223,452) | (2,808,646) | (400,229) | |||
Research and development service and | (396,289) | (833,756) | (460,775) | (65,660) | |||
Total cost of revenues | (11,755,204) | (16,590,228) | (15,416,202) | (2,196,791) | |||
Gross profit | 2,289,407 | 3,449,823 | 2,941,800 | 419,203 | |||
Operating expenses: | |||||||
Research and development expenses | (2,018,136) | (2,623,471) | (1,966,167) | (280,177) | |||
Selling, general and administrative | (1,813,890) | (2,604,665) | (2,274,751) | (324,149) | |||
Other operating income, net | 34,851 | 57,287 | 82,747 | 11,791 | |||
Total operating expenses | (3,797,175) | (5,170,849) | (4,158,171) | (592,535) | |||
Loss from operations | (1,507,768) | (1,721,026) | (1,216,371) | (173,332) | |||
Interest expense | (28,186) | (23,396) | (8,088) | (1,153) | |||
Interest income | 27,614 | 42,537 | 43,255 | 6,163 | |||
Other income/(expense), net | 6,020 | (7,809) | 54,967 | 7,833 | |||
Loss before income tax expense and | (1,502,320) | (1,709,694) | (1,126,237) | (160,489) | |||
Share of income in equity method | 33,021 | 85,852 | 81,500 | 11,614 | |||
Income tax benefits/(expense) | 13,605 | (184,980) | (94,409) | (13,453) | |||
Net loss | (1,455,694) | (1,808,822) | (1,139,146) | (162,328) | |||
Less: income attributable to non- | 20,368 | 381,363 | 87,134 | 12,416 | |||
Net loss attributable to shareholders | (1,476,062) | (2,190,185) | (1,226,280) | (174,744) | |||
ZEEKR INC. | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE | |||||||
(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted) | |||||||
Three Months Ended | |||||||
September 30 | June 30 | September 30 | September 30 | ||||
2023 | 2024 | 2024 | 2024 | ||||
RMB | RMB | RMB | US$ | ||||
Net loss per share attributed to | |||||||
Basic and diluted | (0.74) | (0.95) | (0.48) | (0.07) | |||
Weighted average shares used in | |||||||
Basic and diluted | 2,000,000,000 | 2,301,866,887 | 2,552,901,668 | 2,552,901,668 | |||
Net loss per ADS attributed to | |||||||
Basic and diluted | - | (9.51) | (4.80) | (0.68) | |||
Weighted average ADS used in | |||||||
Basic and diluted | - | 230,186,689 | 255,290,167 | 255,290,167 | |||
Net loss | (1,455,694) | (1,808,822) | (1,139,146) | (162,328) | |||
Other comprehensive income/(loss), | |||||||
Foreign currency translation | (35,240) | 74,670 | (75,858) | (10,810) | |||
Comprehensive loss | (1,490,934) | (1,734,152) | (1,215,004) | (173,138) | |||
Less: comprehensive income/(loss) | 20,368 | 381,363 | 87,134 | 12,416 | |||
Comprehensive loss attributable to | (1,511,302) | (2,115,515) | (1,302,138) | (185,554) | |||
ZEEKR INC. | ||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||
(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted) | ||||||||
Three Months Ended | ||||||||
September 30 | June 30 | September 30 | September 30 | |||||
2023 | 2024 | 2024 | 2024 | |||||
RMB | RMB | RMB | US$ | |||||
Loss from operations | (1,507,768) | (1,721,026) | (1,216,371) | (173,332) | ||||
Share-based compensation expenses | 30,142 | 943,921 | 46,595 | 6,640 | ||||
Non-GAAP loss from operations | (1,477,626) | (777,105) | (1,169,776) | (166,692) | ||||
Net loss | (1,455,694) | (1,808,822) | (1,139,146) | (162,328) | ||||
Share-based compensation expenses | 30,142 | 943,921 | 46,595 | 6,640 | ||||
Non-GAAP net loss | (1,425,552) | (864,901) | (1,092,551) | (155,688) | ||||
Net loss attributable to ordinary | (1,476,062) | (2,190,185) | (1,226,280) | (174,744) | ||||
Share-based compensation expenses | 30,142 | 943,921 | 46,595 | 6,640 | ||||
Non-GAAP net loss attributable to | (1,445,920) | (1,246,264) | (1,179,685) | (168,104) | ||||
Weighted average number of | ||||||||
Basic and diluted | 2,000,000,000 | 2,301,866,887 | 2,552,901,668 | 2,552,901,668 | ||||
Non-GAAP net loss per ordinary | ||||||||
Basic and diluted | (0.72) | (0.54) | (0.46) | (0.07) | ||||
Weighted average number of ADS | ||||||||
Basic and diluted | - | 230,186,689 | 255,290,167 | 255,290,167 | ||||
Non-GAAP net loss per ADS | ||||||||
Basic and diluted | - | (5.41) | (4.62) | (0.66) | ||||
| Last Trade: | US$21.69 |
| Daily Change: | -7.46 -25.60 |
| Daily Volume: | 3,287,162 |
| Market Cap: | US$5.370B |
October 31, 2024 September 30, 2024 September 01, 2024 August 21, 2024 August 01, 2024 | |
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