Zeekr saw its net loss decline 37.0 percent in the third quarter, while lower battery sales dragged down revenue.
Zeekr (NYSE:ZK) saw its net loss shrink significantly in the third quarter, despite a slight decline in revenue, as vehicle deliveries were essentially flat from the previous quarter.
The Chinese electric vehicle (EV) maker reported revenue of CNY18.36 billion (US$2.62 billion) in the third quarter, falling short of analyst estimates of CNY19.71 billion in a Bloomberg survey, according to its unaudited results announced today.
This represents an increase of 30.71 percent from the third quarter of 2023 but down 8.39 percent from the second quarter of 2024. The company did not previously provide guidance on revenues or deliveries for the third quarter.
Zeekr delivered a record 55,003 vehicles in the third quarter, up 51.13 percent year over year and up 0.35 percent from the second quarter, according to data compiled by CnEVPost.
It achieved record revenues of RMB14.4 billion from vehicle sales in the third quarter, an increase of 42.0 percent over the third quarter of 2023 and an increase of 7.2 percent over the second quarter of 2024.
Zeekr said the increase was due to higher new product deliveries, the launch of the new Zeekr 7X model in the third quarter, and higher average selling prices due to changes in product mix.
Revenue from sales of batteries and other components for the third quarter was CNY3.25 billion, a decrease of 1.3 percent from the third quarter of 2023 and a decrease of 38.8 percent from the second quarter of 2024.
Zicker said the sequential decline was mainly due to lower battery sales in the domestic market.
Zeker’s net loss for the third quarter amounted to 1.14 billion Chinese yuan, a decrease of 21.75 percent from the third quarter of 2023 and a decrease of 37.02 percent from the second quarter of 2024.
Excluding stock incentive expenses, adjusted non-GAAP net loss for the third quarter was RMB1.09 billion, a decrease of 23.4 percent from the third quarter of 2023 and an increase of 26.3 percent from the second quarter of 2024.
Zeekr reported a gross margin of 16.0 percent in the third quarter, higher than analysts’ expectations of 15.3 percent in a Bloomberg survey. The number reached 16.3 percent in the third quarter of 2023 and 17.2 percent in the second quarter of 2024.
The company said the sequential decline in gross margin was mainly attributable to lower profit margins on batteries and other components.
Vehicle margin was 15.7 percent in the third quarter, compared to 18.1 percent in the third quarter of 2023 and 14.2 percent in the second quarter of 2024.
The year-over-year decrease was primarily due to lower average vehicle selling prices, partially offset by purchase savings resulting from lower auto parts and materials costs. The sequential increase is primarily due to changes in product mix.
R&D expenditures for the third quarter amounted to RMB 1.97 billion, a decrease of 2.6 percent from the third quarter of 2023 and a decrease of 25.1 percent from the second quarter of 2024.
The decrease compared to the second quarter was mainly due to the large one-time stock incentive fee in the second quarter, which was related to the company’s initial public offering.
As of September 30, 2024, Zeekr had cash, cash equivalents and restricted cash of RMB8.3 billion.
Zeekr, as before, did not provide delivery or revenue guidance for the next quarter.
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