Electric vehicle manufacturer Zeekr (ZK, Financial) is gearing up to enter the German market, following a delay of more than a year in its plans. The company is reportedly aiming to make its debut through a traditional retail model, leveraging partnerships with local dealership networks to facilitate entry.
The strategic move to collaborate with existing dealerships is intended to maximize Zeekr's market penetration in Germany, a key market in Europe for electric vehicles. This approach marks a significant step for the brand as it expands its presence in the European automotive industry.
ZK Key Business Developments
Release Date: March 20, 2025
- Total Vehicle Sales: 500,000 vehicles in 2024.
- Lynk & Co Sales: 280,000 units, nearly 30% year-over-year increase.
- Zeekr Brand Sales: 222,000 vehicles, 87% year-over-year increase.
- Total Revenue: RMB75.9 billion in 2024, 46.9% year-over-year increase.
- Vehicle Revenue: RMB55.5 billion, 63% year-over-year increase.
- Vehicle Gross Margin: 17.3% in Q4 2024, 15.6% for the full year.
- R&D Expense: RMB9.7 billion in 2024, 16.1% year-over-year increase.
- Net Loss Reduction: Decreased from RMB82.6 billion in 2023 to RMB57.9 billion in 2024, 30% decline.
- Free Cash Flow: RMB1.5 billion in 2024.
- Pro Forma Revenue: RMB130.9 billion for combined Zeekr Group in 2024.
- Pro Forma Vehicle Margin: 12.5% for Zeekr Group in 2024.
- Pro Forma Free Cash Flow: RMB1.1 billion inflow for full year 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ZEEKR Intelligent Technology Holding Ltd (ZK, Financial) achieved a total sales of 500,000 vehicles in 2024, with a significant year-over-year increase in sales for both the Lynk & Co and Zeekr brands.
- The company reported a remarkable 87% year-over-year increase in deliveries for the Zeekr brand, making it the best-selling premium battery electric vehicle brand in China.
- ZEEKR's vehicle revenue grew substantially by 63% year-over-year, reaching RMB55 billion, with a total revenue of RMB75 billion in 2024.
- The company achieved a vehicle gross margin of 17.3% in the fourth quarter and 15.6% for the full year, indicating improved profitability.
- ZEEKR plans to launch several new models in 2025, including premium SUVs with advanced technology, aiming to further strengthen its market position and expand its product portfolio.
Negative Points
- The company faces intense competition in the Chinese new energy vehicle market, which could impact its sales targets and market share.
- ZEEKR's first quarter sales volume in 2025 was not satisfactory according to management, although it was in line with expectations.
- The integration of Lynk & Co and Zeekr brands presents challenges, including the need to reduce R&D expenses and streamline operations.
- Despite improvements, ZEEKR still reported a net loss of RMB57.9 billion in 2024, although this was a 30% reduction from the previous year.
- The company is targeting a 15% vehicle margin for 2025, but achieving this depends on realizing synergies and market conditions, which remain uncertain.
