极氪(ZK) - 2025 Q2 - Quarterly Results

Q2 2025 Performance Overview Zeekr Group's Q2 2025 performance highlights significant growth in deliveries and a pivotal shift to profitability, driven by strong operational and financial improvements Operating Highlights In Q2 2025, Zeekr Group's total deliveries reached 130,866 units, growing 9.3% year-over-year and 14.8% quarter-over-quarter, with Lynk & Co NEV models accounting for 58.8% of its deliveries Q2 2025 Vehicle Deliveries | Brand | Q2 2025 Deliveries | | :--- | :--- | | Total | 130,866 units | | Zeekr | 49,337 units | | Lynk & Co | 81,529 units | - Total deliveries increased by 9.3% year-over-year and 14.8% quarter-over-quarter, indicating robust growth[1] - New Energy Vehicles (NEVs) accounted for 58.8% of Lynk & Co's deliveries, demonstrating significant progress in NEV transition[1] Financial Highlights In Q2 2025, the company achieved significant financial improvement with total revenue of RMB 27.43 billion, a 24.6% quarter-over-quarter increase, and a gross margin of 20.6%, marking its first positive operating profit of RMB 0.285 billion and an 88.8% year-over-year reduction in net loss Q2 2025 Key Financial Metrics | Metric | Q2 2025 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Total Revenue | 27.43 billion RMB | -0.9% | +24.6% | | Vehicle Sales Revenue | 22.92 billion RMB | +2.2% | +20.0% | | Vehicle Gross Margin | 17.3% | +5.8 percentage points | +0.8 percentage points | | Overall Gross Margin | 20.6% | +2.6 percentage points | +1.5 percentage points | | Operating Profit/(Loss) | 0.285 billion RMB | Turned Profitable | Turned Profitable | | Net Loss | (0.287) billion RMB | -88.8% | -62.4% | - The company achieved its first positive operating profit of RMB 0.285 billion, a significant milestone compared to a RMB 2.269 billion loss in the prior year period[5] Recent Developments In July 2025, total deliveries continued to grow to 44,193 units, up 2.7% quarter-over-quarter, while the company launched its innovative 'Super Hybrid Technology' and the Zeekr 9X, expected to begin deliveries in Q3 2025 - In July 2025, total deliveries for Zeekr and Lynk & Co brands reached 44,193 units, representing a 2.7% quarter-over-quarter increase and maintaining growth momentum[9] - The company unveiled revolutionary Super Hybrid Technology based on the SEA-S platform, featuring a 900V high-voltage architecture to set new standards for long-range plug-in hybrid technology[10] - The new Zeekr 9X, the first model to feature this technology, includes a 70kWh battery pack and a 2.0T engine with over 46% thermal efficiency, with deliveries planned to commence in Q3 2025[11] Detailed Financial Analysis This section provides an in-depth analysis of the company's Q2 2025 financial results, covering revenue, cost, operating expenses, and profitability metrics Revenue Analysis In Q2 2025, total revenue was RMB 27.43 billion, a slight 0.9% year-over-year decrease but a 24.6% quarter-over-quarter increase, driven by vehicle sales growth from Lynk & Co despite a decline in Zeekr sales and reduced related-party R&D income Revenue Breakdown (in billions of RMB) | Revenue Category | Q2 2025 | YoY Change | QoQ Change | Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Vehicle Sales | 22.92 | +2.2% | +20.0% | YoY growth primarily due to increased Lynk & Co sales; QoQ growth due to new model launches | | Other Sales and Services | 4.52 | -13.8% | +54.5% | YoY decrease due to reduced related-party R&D income; QoQ growth due to increased overseas sales of battery packs and electric drive systems | | Total Revenue | 27.43 | -0.9% | +24.6% | | Cost and Gross Margin Analysis This quarter, gross profit reached RMB 5.66 billion, a 13.3% year-over-year increase, with overall gross margin improving to 20.6% and vehicle gross margin significantly rising to 17.3% due to continuous cost-saving initiatives Gross Profit and Gross Margin Performance | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Gross Profit | 5.66 billion RMB | 4.99 billion RMB | 4.21 billion RMB | | Gross Margin | 20.6% | 18.0% | 19.1% | | Vehicle Gross Margin | 17.3% | 11.5% | 16.5% | - The year-over-year and quarter-over-quarter growth in vehicle gross margin is primarily attributed to continuous cost-saving measures[17] Operating Expense Analysis Operating expenses were effectively controlled this quarter, with R&D expenses significantly decreasing by 42.9% year-over-year to RMB 2.15 billion and selling, general, and administrative expenses declining by 9.7% year-over-year to RMB 3.36 billion, primarily due to economies of scale from business integration Operating Expense Details (in billions of RMB) | Expense Category | Q2 2025 | YoY Change | QoQ Change | Primary Reasons | | :--- | :--- | :--- | :--- | :--- | | R&D Expenses | 2.15 | -42.9% | -26.2% | Economies of scale from business integration | | Selling, General & Administrative Expenses | 3.36 | -9.7% | +27.2% | YoY decrease due to economies of scale; QoQ increase due to higher marketing expenses for new vehicle launches | Operating Profit Analysis In Q2 2025, the company achieved an operating profit of RMB 0.285 billion, successfully turning profitable compared to an operating loss of RMB 2.269 billion in the prior year period and RMB 1.259 billion in the previous quarter, marking a significant improvement in profitability - This quarter, operating profit reached RMB 0.285 billion, a critical turnaround from losses of RMB 2.269 billion in Q2 2024 and RMB 1.259 billion in Q1 2025[16] - Non-GAAP operating profit, excluding share-based compensation expenses, also turned profitable at RMB 0.315 billion[18] Net Loss and Net Loss Per Share Analysis This quarter's net loss significantly narrowed by 88.8% year-over-year to RMB 0.287 billion and by 62.4% quarter-over-quarter, with basic and diluted net loss per ADS improving to RMB 1.54 from RMB 12.49 in the prior year period Net Loss and Loss Per Share | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Net Loss | (0.287) billion RMB | (2.57) billion RMB | (0.763) billion RMB | | Non-GAAP Net Loss | (0.257) billion RMB | (1.63) billion RMB | (0.640) billion RMB | | Basic & Diluted Net Loss Per ADS | (1.54) RMB | (12.49) RMB | (2.81) RMB | Balance Sheet Analysis As of June 30, 2025, the company held RMB 10.21 billion (approximately USD 1.425 billion) in cash, cash equivalents, and restricted cash, providing strong liquidity for operations and development - As of June 30, 2025, cash, cash equivalents, and restricted cash totaled RMB 10.21 billion (USD 1.425 billion)[22] Financial Statements Appendix This appendix contains the unaudited condensed consolidated financial statements, including balance sheets and statements of comprehensive (loss)/income, along with GAAP to Non-GAAP reconciliations Unaudited Condensed Consolidated Balance Sheets This section presents detailed balance sheet data as of December 31, 2024, and June 30, 2025, outlining the composition of assets, liabilities, and shareholders' equity Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income This section provides detailed consolidated statements of comprehensive (loss)/income for Q2 2025, Q1 2025, and the prior year period, detailing revenues, costs, expenses, and profit/loss items Unaudited Reconciliations of GAAP and Non-GAAP Results This section provides reconciliation tables between GAAP and Non-GAAP financial measures, primarily adjusting for share-based compensation expenses to offer investors a clearer understanding of core operating performance