ZEEKR Intelligent Technology (ZK) Q1 2025 Earnings Call May 15, 2025 08:00 AM ET Company Participants Jing Yuan - CFO Conference Call Participants Tina Hou - AnalystTim Hsiao - AnalystMing-Hsun Lee - Analyst Operator Hello, ladies and gentlemen. Thank you for standing by for Zika Group's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Jing Huang, the C ...

Financial Data and Key Metrics Changes - Zika Group reported first quarter revenue of RMB22 billion, with vehicle revenue reaching RMB19.1 billion, marking a 21% year-over-year increase in vehicle deliveries to 114,000 units [8][9][25] - The overall vehicle gross margin rose to 16.5%, with the Zika brand's margin increasing to 21.2% [9][25] - Net loss narrowed by 60% year-over-year to RMB763 million for the first quarter of 2025, indicating significant progress towards sustainable profitability [27] Business Line Data and Key Metrics Changes - The Zika brand's vehicle deliveries increased by 21% year-over-year, while the Lincoln Co brand also contributed to overall growth [8][25] - The Zika 9X and Zika 8X are expected to have impressive margin performance, with both models positioned in the luxury segment and equipped with super electric hybrid technology [42][44] Market Data and Key Metrics Changes - Zika Group's global user base surpassed 1,900,000, with a target of reaching 2,000,000 users [7] - The company has entered over 60 major international markets, with a global retail footprint of over 1,200 stores [21] Company Strategy and Development Direction - The company aims to redefine luxury through exceptional service and cutting-edge technologies, focusing on innovation and expanding its presence in the global premium market [7][22] - Strategic integration of Zika and Lincoln Co brands has led to joint product R&D and enhanced user engagement, driving profitability improvements [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that sales performance in April was not satisfactory but aligned with expectations, maintaining a sales target of 710,000 vehicles for 2025 [31] - The launch of new models such as the Zika 9X and Lincoln Co 900 is expected to positively impact sales performance in the coming months [32][40] Other Important Information - The company is implementing internal management reforms to enhance efficiency and align with trends in the new energy era [22] - A special committee has been established to evaluate a privatization offer, and the company will not comment on this matter during the call [27][35] Q&A Session Summary Question: Sales volume expectations for the first four months and updated targets for 2025 - Management confirmed that April's sales performance was in line with expectations, maintaining a target of 320,000 vehicles for Zika and 390,000 for Lincoln Co, totaling 710,000 vehicles for the year [31][32] Question: Comments on JD Auto's provisional offering - Management refrained from commenting on the privatization offer, emphasizing compliance with disclosure regulations and the establishment of a special committee for evaluation [34][35] Question: Volume contribution and margin expectations for the Zika 9X and 8X - Management expressed confidence in the Zika 9X and 8X, highlighting their unique positioning and expected strong market performance [42][44] Question: Advantages of the super hybrid technology and expected sales volume - Management detailed the benefits of the super hybrid technology, including performance, fuel efficiency, and lower maintenance costs, with a target of contributing 150,000 to 200,000 vehicles annually [50]