Core Viewpoint - Zeekr has reported a strong performance in vehicle deliveries and revenue for the first half of 2025, but it faces significant challenges regarding profitability and market perception due to the "zero-kilometer used car" controversy [2][19]. Financial Performance - In the first half of 2025, Zeekr delivered a total of 244,877 vehicles, marking a year-on-year increase of 14.5% [2]. - Total revenue reached 49.45 billion yuan, with a year-on-year growth of 8% [2][13]. - In Q2 2025, total revenue was 27.43 billion yuan, and the comprehensive gross margin reached 20.6%, an increase of 2.6 percentage points year-on-year, setting a historical high [2][7][14]. - Vehicle sales revenue for Q2 was 22.92 billion yuan, reflecting a year-on-year growth of 2.2% [2][11][10]. Cost Management - The R&D expense ratio and sales expense ratio both decreased year-on-year, indicating improved cost control [19][12]. - Despite these improvements, Zeekr still reported a net loss in Q2, although the loss amount has narrowed compared to previous periods [19]. Market Challenges - Zeekr is currently embroiled in controversy regarding "zero-kilometer used cars," which has raised concerns about the legitimacy of its vehicle sales [19]. - The controversy is particularly sensitive as Zeekr is in the process of privatization, with Geely Auto signing a merger agreement to take Zeekr private [19]. - The combination of delivery growth and profitability challenges, along with the "zero-kilometer used car" issue, poses a risk to Zeekr's market trust and future performance [19].

Core Viewpoint - The recent financial disclosures from Zeekr indicate a mixed performance amidst ongoing privatization efforts, highlighting both revenue growth and challenges related to profitability and sales practices [1][2][3] Financial Performance - In Q2 2025, Zeekr reported total revenue of 27.431 billion yuan, with a gross margin of 20.6%, marking a year-on-year increase of 2.6 percentage points, achieving a historical high [1] - Vehicle sales revenue reached 22.916 billion yuan, reflecting a year-on-year growth of 2.2% [1] - For the first half of the year, Zeekr delivered a total of 244,877 vehicles, representing a year-on-year increase of 14.5%, with total revenue amounting to 49.450 billion yuan and vehicle revenue growing by 8% [1] Profitability Challenges - Despite a decrease in both R&D and sales expense ratios, Zeekr recorded a net loss in Q2, although the loss amount showed a reduction compared to previous periods [1] - The company continues to face profitability issues that are common among many new energy vehicle manufacturers [1] Sales Practices Concerns - The "zero-kilometer used car" issue has emerged as a significant concern, with reports of dealers being pressured to meet sales targets through questionable practices, such as selling vehicles that are technically classified as used but are essentially new [2][3] - This practice has led to consumer complaints regarding the loss of benefits associated with being the first owner, such as battery warranties and free charging [3] Market Context - The phenomenon of "zero-kilometer used cars" is seen as a response to industry pressures, including inventory buildup and intense market competition [3] - Zeekr's increasing inventory levels, as indicated in financial disclosures, reflect broader industry challenges [3] Privatization Developments - Zeekr is currently undergoing a privatization process, with Geely Automobile Holdings announcing a merger agreement to acquire all outstanding shares of Zeekr, which has raised concerns about potential discrepancies in sales and financial data [3]

Core Viewpoint - The article highlights the significant depreciation of electric vehicles (EVs) in the second-hand market, leading to financial losses for both car owners and dealers, exacerbated by rapid technological advancements and aggressive pricing strategies in the new car market [6][12][28]. Group 1: Depreciation and Market Dynamics - Tesla Model 3 and Model Y owners are experiencing substantial losses, with depreciation rates reaching 65% over three years for some models, and in extreme cases, vehicles losing up to 70% of their value within a year [7][12]. - The average inventory cycle for second-hand car dealers is reported to be 43 days, with a significant portion of dealers facing longer cycles, indicating a challenging operating environment [9][10]. - The second-hand EV market is characterized by a lack of trust and transparency, with many consumers feeling their rights are not adequately protected due to the rapid depreciation and unclear valuation models [10][28]. Group 2: Technological Impact and Consumer Behavior - Rapid technological advancements in EVs, particularly in battery technology, are causing older models to lose value quickly, with some vehicles depreciating by 40% shortly after new models are released [20][23]. - A survey indicated that 87% of respondents believe the depreciation rate of EVs exceeds their tolerance, leading to 23% of potential buyers abandoning their purchase plans [15][16]. - The introduction of "zero-kilometer second-hand cars" is disrupting the market, as these vehicles are often priced lower than used cars, further driving down the value of traditional second-hand vehicles [30][31]. Group 3: Recommendations for Stakeholders - To address the depreciation crisis, stakeholders suggest implementing equal subsidies for new and second-hand vehicles and eliminating the practice of zero-kilometer second-hand cars, which distort market pricing [30][31]. - Innovations such as AI-based residual value assessment systems and battery rental models are being explored to mitigate depreciation risks and enhance consumer confidence [34]. - Consumers are advised to choose brands that offer official value retention guarantees and to avoid brands with aggressive technological iterations that could lead to rapid depreciation [36][37].

Core Viewpoint - A recent Reuters investigation revealed that some Chinese car manufacturers are inflating sales figures through "pre-insurance" practices, which have become increasingly common in the industry, involving both domestic and foreign brands such as BYD, Volkswagen, Toyota, and Buick [1] Group 1: Consumer Complaints - The investigation identified 97 consumer complaints regarding the practice of pre-insurance, where vehicles were insured under someone else's name before being sold [1] - Dealers admitted that this practice is aimed at meeting monthly sales targets [1] - Affected brands include Neta, Zeekr, Li Auto, Changan, Geely, and FAW-Volkswagen, with many vehicles counted as "sold" before official sales, referred to as "zero-kilometer used cars" [1] Group 2: Company Responses - Volkswagen China stated it will investigate the complaints and emphasized that it does not use insurance to boost sales [1] - SAIC-GM clarified that its sales data is based on actual deliveries [1] - BYD and Geely did not respond to requests for comment [1] Group 3: Legal Actions and Industry Implications - Court records indicate that since 2023, consumers have filed lawsuits against dealers for concealing pre-insurance practices, with some cases resulting in consumer victories and compensation [1] - Industry insiders noted that such practices could mislead the market's understanding of actual demand and pose risks in production capacity allocation [1]

Core Viewpoint - The article highlights the controversy surrounding "0-kilometer used cars," particularly focusing on the practices of Zeekr and Neta Auto, which allegedly inflate sales figures by insuring vehicles before they are sold, thus allowing manufacturers to record these as sales [1][2][10]. Group 1: Definition and Context - "0-kilometer used cars" refer to vehicles that have been registered but have minimal usage, typically with mileage close to 0 kilometers, and are entering the market [7]. - These vehicles often include older models cleared from inventory, "performance boost cars" from dealers, and display vehicles used for customer test drives [7]. - The rapid growth of the "0-kilometer used car" market is evident, with data showing that in 2024, vehicles registered within three months and with mileage under 50 kilometers accounted for 12.7% of the used car market, with over 60% being electric vehicles [7]. Group 2: Industry Practices - Zeekr has publicly opposed the practice of selling "0-kilometer used cars," emphasizing the need to maintain industry order [2]. - In contrast, Neta Auto reportedly inflated its sales figures by over 60,000 vehicles through unconventional methods, which accounted for more than half of its total reported sales during a specific period [2][12]. - Neta Auto's approach involved insuring vehicles before they were sold, allowing them to count these as sales, which misleads consumers relying on sales data for purchasing decisions [12][14]. Group 3: Implications for Consumers - The practice of selling "0-kilometer used cars" can distort sales data, leading to consumer misjudgment when selecting vehicles based on inflated sales figures [10][15]. - Consumers purchasing these vehicles may lose out on manufacturer warranties and benefits typically associated with new cars, as these rights are often tied to the first owner [17]. - There is a lack of regulatory framework in China specifically addressing "0-kilometer used cars," which raises concerns about consumer rights and potential deception in transactions [17][18].

Core Viewpoint - The article discusses the controversy surrounding the sale of "zero-kilometer used cars" by Zeekr, clarifying that these vehicles are actually exhibition cars that have not been registered or sold as used cars, despite media reports suggesting otherwise [1][2]. Group 1: Market Context - The term "zero-kilometer used cars" refers to vehicles that have completed registration but have very low or zero mileage, often sold at lower prices to meet sales targets in a competitive market [2]. - The phenomenon has been criticized by industry leaders, including Great Wall Motors' chairman, who highlighted the issue of new cars being sold as used cars shortly after registration [2]. - The Ministry of Commerce has convened discussions to address and regulate this market anomaly to promote a healthy used car market [2]. Group 2: Zeekr's Response - Zeekr issued a statement clarifying that the vehicles in question are exhibition cars, which are insured but have never been registered or issued retail invoices, maintaining their status as new cars [1][3]. - The company has established a special team to investigate and address the concerns raised about the sales processes and vehicle classifications [3]. Group 3: Distinctions Between Vehicle Types - The primary distinction between exhibition cars and "zero-kilometer used cars" is whether they have been registered; exhibition cars remain unregistered and owned by dealers, while "zero-kilometer used cars" have been registered and previously owned [5]. - Insurance practices differ, with "zero-kilometer used cars" typically insured as new vehicles, while exhibition cars may not always be insured, depending on dealer practices [6]. - Consumers can differentiate between the two types based on documentation, such as registration dates and ownership history, which are clearly indicated on the vehicle's registration certificate [7].

Core Viewpoint - The controversy surrounding "zero-kilometer used cars" has intensified, with Zeekr clarifying that the vehicles in question are exhibition cars and not registered as used cars [1][2]. Group 1: Company Response - Zeekr stated that the vehicles reported by the media are exhibition cars that have never been registered or issued retail invoices, maintaining their status as new cars [1]. - The company emphasized that exhibition cars are insured but have not been registered, thus retaining their classification as new vehicles [1][5]. - Zeekr has established a special team to investigate and address the concerns raised regarding the sales processes [2]. Group 2: Industry Context - The phenomenon of "zero-kilometer used cars" is prevalent in the domestic market, particularly in the electric vehicle sector, where it is seen as a significant issue [2]. - The practice involves new cars being registered and then sold as used cars at lower prices to meet sales targets, contributing to market confusion [1][2]. - The Ministry of Commerce has convened discussions with industry stakeholders to regulate and improve the second-hand car market [2]. Group 3: Distinction Between Vehicle Types - The primary difference between exhibition cars and "zero-kilometer used cars" is whether they have been registered; exhibition cars remain under the dealership's ownership and have not been registered [4]. - "Zero-kilometer used cars" have completed initial sales and registration, requiring a transfer of ownership during resale [4][6]. - Consumers can identify the type of vehicle based on documentation, such as the registration certificate indicating the first registration date and previous owner information [6].

Core Viewpoint - The emergence of "zero-kilometer used cars" in the Chinese automotive market is a response to inventory pressure and sales targets faced by manufacturers and dealers, leading to significant price reductions in the second-hand car market [2][3][24]. Group 1: Definition and Characteristics - "Zero-kilometer used cars" refer to vehicles that have completed registration but have extremely low mileage, often less than 100 kilometers, making them almost new [2][21]. - These vehicles are typically sold by manufacturers directly to used car dealerships, which then resell them to consumers [6][12]. Group 2: Market Dynamics - The current market for "zero-kilometer used cars" is driven by a price war and an imbalance in supply and demand, with these cars serving as a "release valve" for manufacturers and dealers to manage excess inventory [3][24]. - The sales volume of "zero-kilometer used cars" is estimated to account for 5%-10% of the total used car market, translating to approximately 1-2 million units based on projected total used car transactions in 2024 [21][24]. Group 3: Sources and Distribution - The sources of "zero-kilometer used cars" include excess inventory from 4S dealerships, vehicles from rental companies, and those produced to exploit subsidy loopholes [14][15]. - Many used car dealers find it challenging to access these vehicles directly from manufacturers, often relying on established relationships or group purchases to acquire them [15][16]. Group 4: Market Impact - The rise of "zero-kilometer used cars" is expected to intensify competition in the used car market, particularly affecting the sales of "quasi-new cars" [27][28]. - The phenomenon may lead to a decline in the perceived value of traditional used cars, as consumers may prefer the nearly new condition of "zero-kilometer used cars" at similar price points [28][29]. Group 5: Regulatory Considerations - Experts suggest that the lack of regulatory measures for "zero-kilometer used cars" could lead to potential market manipulation, and there are calls for improved oversight from government bodies [32][33]. - Recent discussions among industry stakeholders, including the Ministry of Commerce, aim to address the implications of "zero-kilometer used cars" on the market [33].

Core Viewpoint - The emergence of "zero-kilometer used cars" has sparked controversy in the automotive industry, with some viewing it as a beneficial option for consumers while others see it as a market anomaly driven by excess inventory and sales manipulation [2][19]. Group 1: Industry Dynamics - A chairman of a domestic car company labeled zero-kilometer used cars as an "industry chaos," claiming they are not genuine used cars but rather new cars sold to dealers to improve sales figures [2][4]. - The zero-kilometer used car phenomenon is linked to high inventory levels among car manufacturers, with dealers facing pressure to sell vehicles quickly to avoid losses and secure rebates from manufacturers [8][9]. - The China Automobile Dealers Association reported that the inventory coefficient for car dealers remained above 1.4, indicating ongoing inventory challenges in the industry [8]. Group 2: Consumer Perspective - Consumers generally view zero-kilometer used cars positively, as they offer the opportunity to purchase nearly new vehicles at lower prices compared to traditional new cars [2][4]. - Examples of significant price reductions for zero-kilometer used cars were provided, showing savings of nearly 10,000 yuan or more compared to new car prices from dealerships [4]. - The existence of zero-kilometer used cars allows consumers to benefit from lower prices while still obtaining vehicles that are effectively new [19]. Group 3: Market Implications - The practice of selling zero-kilometer used cars may distort sales data reported by manufacturers, leading to inaccuracies in production planning and market strategy [19][20]. - Industry experts suggest that the zero-kilometer used car market could lead to consumer protection disputes if dealers do not transparently disclose the nature of these vehicles [20]. - The phenomenon raises concerns about the long-term health of the automotive market, as it may encourage unsustainable practices among manufacturers and dealers [21]. Group 4: Recommendations and Solutions - To address the underlying issues leading to the rise of zero-kilometer used cars, manufacturers should optimize production strategies to better align supply with demand, thereby reducing excess inventory [21]. - Experts recommend enhancing the profitability and service levels of existing sales channels rather than relying on aggressive discounting and inventory-clearing tactics [21].

Core Viewpoint - The automotive industry is facing significant scrutiny regarding its payment practices and the phenomenon of "zero-kilometer used cars," which have been used to inflate sales figures and extend payment terms to suppliers. This has led to a collective movement among major car manufacturers to shorten payment periods to comply with new regulations [1][4][5]. Group 1: Payment Practices and Regulations - Major car manufacturers have announced a commitment to shorten payment terms to no more than 60 days, aligning with the newly implemented "Regulations on Payment to Small and Medium Enterprises" [4][10]. - Historically, payment periods for suppliers often exceeded six months, with an average accounts payable turnover days of 182 days for listed car companies in 2024 [10][16]. - The automotive industry has been criticized for its long payment cycles, which have been a common practice to manage cash flow and reduce financing costs [15][20]. Group 2: Zero-Kilometer Used Cars - The practice of selling "zero-kilometer used cars," which are essentially new cars sold as used, has been prevalent in the industry, allowing manufacturers to manipulate inventory and sales figures [24][31]. - This practice has created a dual pricing system that undermines consumer confidence and distorts the new car pricing structure [35][40]. - The zero-kilometer used car phenomenon has been linked to various financial manipulations, including the exploitation of government subsidies intended for genuine used car transactions [32][35]. Group 3: Industry Response and Challenges - Despite the regulatory push, many car manufacturers remain hesitant to fully abandon these practices, indicating a reluctance to change entrenched behaviors [38][51]. - The competitive landscape, characterized by aggressive price wars, has exacerbated the reliance on these financial maneuvers, making it difficult for companies to pivot away from them [39][50]. - The industry's long-standing practices of extending payment terms and utilizing zero-kilometer used cars are seen as symptoms of deeper issues related to market competition and financial health [37][49].