ZEEKR Intelligent Technology (ZK) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached CNY 20 billion (RMB20,040.1 million), up 58% year-over-year and 36% quarter-over-quarter.

• Vehicle sales revenue was CNY 13.4 billion (RMB13,438.2 million), up nearly 60% year-over-year and 65% quarter-over-quarter.

• Record Q2 vehicle deliveries of 54,811 units, up 100% year-over-year and 66% quarter-over-quarter.

• Net loss for the quarter was CNY 1.8 billion (RMB1,808.8 million), with non-GAAP net loss at CNY 865 million (RMB864.9 million), down 36% year-over-year and 57% quarter-over-quarter.

• Strong order growth for upgraded and new models, with 30%+ increase in orders for 001, 007, and 009.

Financial highlights

• Gross margin rose to 17.2% in Q2, up from 12.3% a year ago, driven by higher margins on batteries and components.

• Vehicle sales gross margin improved to 14.2% in Q2.

• Battery and components revenue was CNY 5.3 billion (RMB5,299.2 million), up 36% year-over-year but down 16% quarter-over-quarter; segment gross margin exceeded 20% due to supplier cost reductions.

• R&D service revenue reached CNY 1.2 billion (RMB1,302.6 million), up 300% year-over-year and 400% quarter-over-quarter.

• R&D expenses were CNY 2.6 billion, up 90% year-over-year, mainly due to share-based compensation.

Outlook and guidance

• Full-year vehicle segment gross margin guidance remains at 15.5%.

• Battery and components segment gross margin expected at 10-12% for the year.

• CapEx guidance for 2024 is CNY 1.9-2.1 billion.

• Management remains confident in achieving the 230,000 unit sales target for 2024, supported by new models and overseas growth.

• Focus on R&D investment, product quality, and global expansion to drive long-term value.