ZK — ZEEKR Intelligent Technology Holding Limited

ZEEKR Group Q1 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: RMB 22 billion, with vehicle revenue at RMB 19.1 billion.
• Vehicle Deliveries: 114,000 units, a 21% year-over-year increase.
• Gross Margin: 19.1%, up from 16.3% year-over-year; vehicle gross margin at 16.5%, with ZEEKR brand margin at 21.2%.
• Net Loss: Narrowed to RMB 763 million, a 60% reduction year-over-year.
• R&D Expenses: RMB 2.9 billion, a 25% increase year-over-year but a 25.6% decrease quarter-over-quarter.
• SG&A Expenses: RMB 2.65 billion, down 9.2% year-over-year and 35.8% quarter-over-quarter.

2. Strategic Updates and Business Highlights

• User Growth: Global user base surpassed 1.9 million, nearing 2 million.
• Product Launches: Introduced the ZEEKR 70T and Lynk & Co 900, with strong pre-orders and initial sales.
• Technological Advancements: Launched G-Pilot driving assistance systems and introduced the super electric hybrid technology.
• Global Expansion: Entered over 60 international markets with a retail footprint of over 1,200 stores.
• Integration: Successful strategic integration of ZEEKR and Lynk & Co brands, enhancing product R&D and operational efficiencies.

3. Forward Guidance and Outlook

• Sales Targets: Aiming for over 320,000 vehicle sales for ZEEKR and 390,000 for Lynk & Co in 2025, totaling 710,000 vehicles.
• New Model Contributions: Anticipated positive impact from upcoming models, including the ZEEKR 9X and ZEEKR 8X, expected to drive sales growth in the latter half of the year.
• Market Positioning: Focus on luxury and hybrid segments to capture evolving consumer preferences.

4. Bad News, Challenges, or Points of Concern

• Sales Performance: April sales were below expectations, attributed to a lack of new product launches in Q1 and unchanged sales policies.
• Privatization Offer: Ongoing evaluation of a privatization offer, which may create uncertainty among investors.
• Market Competition: Increased competition in the premium EV segment could pressure margins and market share.

5. Notable Q&A Insights

• Sales Volume Expectations: Management confirmed that April's sales were in line with expectations, despite being lower than desired.
• Future Product Launches: The introduction of new models is expected to improve sales performance in the upcoming months.
• Hybrid Technology Advantages: The super electric hybrid technology is anticipated to enhance driving performance and reduce maintenance costs, with a target of contributing 150,000 to 200,000 vehicles annually in the future.
• Privatization Communication: Management emphasized compliance with regulations regarding the privatization offer and stated that a special committee is evaluating it.

Overall, ZEEKR Group reported strong financial performance in Q1 2025, driven by robust vehicle deliveries and improved margins, while also outlining strategic initiatives for future growth amidst some challenges in sales performance and market competition.