极氪(ZK) - 2024 Q1 - Quarterly Results

ZEEKR Reports First Quarter 2024 Unaudited Financial Results Financial Highlights ZEEKR's Q1 2024 total revenue reached RMB 14.74 billion with 71.0% YoY growth, while gross profit increased 154.9% to RMB 1.74 billion, and net loss significantly narrowed Key Financial Indicators for Q1 2024 | Indicator (RMB million) | 2024 Q1 | 2023 Q1 | YoY Change | 2023 Q4 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 14,736.8 | 8,620.4 | +71.0% | 16,357.9 | -9.9% | | Gross Profit | 1,739.4 | 682.5 | +154.9% | 2,328.3 | -25.3% | | Gross Margin | 11.8% | 7.9% | +3.9pp | 14.2% | -2.4pp | | Operating Loss | (2,086.9) | (2,349.2) | -11.2% | (2,950.1) | -29.3% | | Net Loss | (2,022.1) | (2,465.4) | -18.0% | (2,937.9) | -31.2% | | Adjusted Net Loss (Non-GAAP) | (2,019.4) | (2,432.6) | -17.0% | (2,902.6) | -30.4% | Operating Highlights In Q1 2024, ZEEKR achieved a record 33,059 vehicle deliveries, a 117% YoY increase, with strong growth continuing into Q2, supported by new model launches like the 2024 ZEEKR 001 and ZEEKR 009 Grand - Total deliveries in Q1 reached 33,059 units, a 117% YoY increase[1] - Growth momentum continued into Q2, with 16,089 deliveries in April (99% YoY growth) and 18,616 deliveries in May (115% YoY growth)[34][10] - The company continued to launch new models, including the new ZEEKR 001 in February 2024 and the ZEEKR 009 Grand in April[11][35] Management Comments Management expressed satisfaction with the quarter's performance, with the CEO highlighting record deliveries as a foundation for the 230,000-unit annual target and market leadership, while the CFO noted improved vehicle gross margin due to cost control and a strengthened balance sheet from the May IPO - The CEO stated that record 33,059 deliveries in Q1 provided a strong start towards the 230,000-unit annual target and solidified the company's leading position in China's premium pure electric vehicle market above RMB 200,000[13] - The CFO highlighted 71.0% YoY growth in total revenue and 154.9% YoY growth in gross profit, with vehicle gross margin improving by 3.9 percentage points YoY due to effective procurement cost control[37] Financial Performance Analysis Revenue Analysis Total revenue in Q1 2024 was RMB 14.74 billion, up 71.0% YoY, primarily driven by a 73.0% increase in vehicle sales revenue and an 82.0% increase in battery and other components sales, while R&D and other services revenue decreased due to reduced related-party services Vehicle Sales Revenue Q1 vehicle sales revenue reached RMB 8.17 billion, up 73.0% YoY due to increased ZEEKR vehicle sales, but declined 22.8% QoQ due to seasonal delivery impacts and product mix shifts affecting average selling price Vehicle Sales Revenue (RMB million) | Period | Amount | | :--- | :--- | | 2024 Q1 | 8,174.1 | | 2023 Q1 | 4,725.2 | | 2023 Q4 | 10,592.6 | Sales of Batteries and Other Components Q1 sales of batteries and other components reached RMB 6.32 billion, increasing 82.0% YoY and 56.5% QoQ, driven by higher sales of battery packs, electric drive systems, and growth in overseas battery component business - This segment's revenue increased by 82.0% YoY and 56.5% QoQ, primarily due to increased sales of battery packs, electric drives, and growth in overseas business[15] Research and Development and Other Services Revenue Q1 R&D and other services revenue was RMB 244 million, decreasing 42.4% YoY and 85.9% QoQ, mainly due to reduced sales of R&D services and technology licensing to related parties - This segment's revenue decreased by 42.4% YoY and 85.9% QoQ, primarily due to reduced services to related parties[38][16] Cost of Revenues and Gross Margin Analysis Q1 gross profit was RMB 1.74 billion, up 154.9% YoY, with overall gross margin improving significantly to 11.8% from 7.9% last year, primarily driven by a 3.9 percentage point YoY increase in vehicle gross margin to 14.0% due to lower component procurement costs, while QoQ decline was impacted by new model deliveries and product mix changes Gross Profit and Gross Margin | Indicator | 2024 Q1 | 2023 Q1 | 2023 Q4 | | :--- | :--- | :--- | :--- | | Gross Profit (RMB million) | 1,739.4 | 682.5 | 2,328.3 | | Gross Margin | 11.8% | 7.9% | 14.2% | | Vehicle Gross Margin | 14.0% | 10.1% | 15.3% | - The primary reason for the YoY increase in vehicle gross margin was procurement savings from lower automotive component and material costs[40] Operating Expenses Analysis In Q1 2024, total operating expenses were RMB 3.83 billion, with selling, general, and administrative expenses at RMB 1.95 billion (up 51.9% YoY) for staff growth, marketing, and channel expansion, and R&D expenses at RMB 1.93 billion (up 6.7% YoY) for product portfolio and intelligent technology expansion Selling, General and Administrative Expenses Q1 selling, general, and administrative expenses were RMB 1.95 billion, up 51.9% YoY, primarily driven by increased staff compensation, marketing activities for domestic and international vehicle sales, and higher rent and related costs from offline channel expansion - Expenses increased by 51.9% to RMB 1.95 billion, primarily driven by staff compensation, marketing activities, and offline channel expansion[20] Research and Development Expenses Q1 R&D expenses were RMB 1.93 billion, up 6.7% YoY, mainly due to increased staff compensation from a growing R&D workforce and higher costs to support an expanding product portfolio and intelligent technologies - Expenses increased by 6.7% to RMB 1.93 billion, primarily supporting staff growth, product portfolio expansion, and technology development[41] Operating Loss and Net Loss In Q1 2024, the company's loss continued to improve, with operating loss narrowing 11.2% to RMB 2.09 billion, net loss narrowing 18.0% to RMB 2.02 billion, and adjusted non-GAAP net loss narrowing 17.0% to RMB 2.02 billion, resulting in basic and diluted net loss per share of RMB 1.01 Loss Performance (RMB million) | Indicator | 2024 Q1 | 2023 Q1 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Loss | (2,086.9) | (2,349.2) | -11.2% | | Net Loss | (2,022.1) | (2,465.4) | -18.0% | | Adjusted Net Loss (Non-GAAP) | (2,019.4) | (2,432.6) | -17.0% | - Basic and diluted net loss per share in Q1 was RMB 1.01 (US$0.14), compared to RMB 1.20 in the prior year period and RMB 1.49 in the previous quarter[45][23] Balance Sheet Summary As of March 31, 2024, the company held RMB 3.79 billion in cash, cash equivalents, and restricted cash, with total assets of RMB 28.53 billion and total liabilities of RMB 39.27 billion - As of March 31, 2024, the company held RMB 3.79 billion (US$525.1 million) in cash, cash equivalents, and restricted cash[46] Key Balance Sheet Items (As of March 31, 2024, RMB thousand) | Item | Amount | | :--- | :--- | | Total Assets | 28,530,040 | | Total Liabilities | 39,270,781 | | Total Shareholders' Equity (Deficit) | (10,740,741) | Appendices and Supplementary Information Conference Call Information Management will host an earnings conference call on June 11, 2024, at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time), with online registration available for investors - The earnings conference call is scheduled for June 11, 2024, with online registration and webcast available[66][25][48] About ZEEKR ZEEKR, established in March 2021, is a rapidly growing intelligent electric vehicle technology company dedicated to leading automotive electrification, intelligence, and innovation through developing and selling next-generation premium intelligent EVs and technology-driven solutions, including models like ZEEKR 001, 009, and X - ZEEKR is a company focused on premium intelligent electric vehicles and technology solutions, with a product portfolio including ZEEKR 001, ZEEKR 009, and ZEEKR X models[67][49] Explanation of Non-GAAP Financial Measures The company uses non-GAAP financial measures, such as adjusted operating loss and adjusted net loss, to evaluate performance and make decisions, excluding share-based compensation expenses to provide a clearer understanding of underlying business trends and future prospects - The company uses non-GAAP financial measures to exclude the impact of share-based compensation expenses, aiming to help investors better understand core operating performance[50] Financial Statements This section includes the company's unaudited condensed consolidated balance sheets, statements of comprehensive loss, and reconciliations of GAAP to non-GAAP results, detailing financial data for the reporting period Unaudited Condensed Consolidated Balance Sheets Unaudited Condensed Consolidated Statements of Comprehensive Loss Unaudited Reconciliations of GAAP and Non-GAAP Results