ZEEKR’s Q1 2024 revenues surge 71% YoY, but dip 9.9% QoQ

Shanghai (Gasgoo)- ZEEKR Intelligent Technology Holding Limited ("ZEEKR"), a intelligent battery electric vehicle (BEV) technology company under Geely Holding, has announced its unaudited financial results for the first quarter of 2024 (Q1 2024).

The company's total revenues for Q1 2024 reached 14,736.8 million yuan (US$2,041.0 million), marking a substantial 71% surge from the previous year. This performance, however, indicates a 9.9% decline compared to the previous quarter.

Revenues from vehicle sales were recorded at 8,174.1 million yuan (US$1,132.1 million) for Q1 2024, reflecting a significant 73% year-over-year spike, but showing a 22.8% decrease from a quarter ago. The robust year-over-year growth is attributed to a surge in ZEEKR vehicle sales volume, while the quarter-over-quarter decline is linked to seasonal delivery variations and a lower average selling price resulting from a change in the product mix, said the company.

ZEEKR delivered a total of 33,059 vehicles in Q1 2024, representing an impressive 117% year-over-year hike.

The company reported a gross profit of 1,739.4 million yuan (US$240.9 million) for Q1 2024, a remarkable 154.9% soar over the year-ago period, though this reflected a 25.3% decline from the previous quarter.

ZEEKR's gross margin stood at 11.8% for Q1 2024, up from 7.9% in Q1 2023 but down from 14.2% in Q4 2023. The year-over-year margin improvement was driven by higher vehicle margins, whereas the quarter-over-quarter decrease was due to lower vehicle margins and a higher proportion of revenue from battery and component sales, which have lower margins than vehicle sales.

ZEEKR announced its vehicle margin was 14% for Q1 2024, compared to 10.1% in Q1 2023 and 15.3% in Q4 2023. The year-over-year increase was mainly due to cost savings in auto parts and materials, while the quarter-over-quarter decline was due to new vehicle model deliveries and product mix changes.

During the quarter, ZEEKR's R&D expenses totaled 1,925.3 million yuan (US$266.6 million), up 6.7% from a year earlier but down 39.1% from the previous quarter. The year-over-year rise was due to higher employee compensation and increased spending on expanding product portfolios and intelligent technologies. The quarter-over-quarter decrease was attributed to the varying stages of new product and technology development.

In addition, ZEEKR faced a net loss of 2,022.1 million yuan (US$280.1 million) for Q1 2024, a reduction of 18% from the 2,465.4 million yuan in Q1 2023 and 31.2% from the 2,937.9 million yuan in Q4 2023.

Founded in March 2021, ZEEKR has focused on innovative BEV architecture, hardware, software, and new technology applications. Its product lineup includes the ZEEKR 001, a five-seater crossover shooting brake; ZEEKR 001 FR, the latest crossover shooting brake; ZEEKR 009, a luxury six-seater MPV; ZEEKR 009 Grand, a four-seat deluxe MPV; ZEEKR X, a compact SUV; and an upscale sedan model.