Zeekr saw a record revenue in the second quarter, net loss narrowed further, and gross margins improved, as deliveries hit a record high.
Zeekr (NYSE: ZK) saw a record revenue last quarter, with net loss narrowing further and gross margin improving as deliveries hit a record high.
The electric vehicle (EV) maker reported revenue of RMB 20.04 billion ($2.76 billion) in the second quarter, beating analysts' estimates of RMB 18.8 billion in a Bloomberg survey, according to unaudited financial results released today.
That's up 58.4 percent from RMB 12.65 billion in the second quarter of 2023 and up 36 percent from RMB 14.74 billion in the first quarter of 2024.
This is Zeekr's second earnings report since it went public on the New York Stock Exchange in May of this year.
Zeekr's revenue from vehicle sales in the second quarter was RMB 13.44 billion, an increase of 59 percent from RMB 8.45 billion in the second quarter of 2023 and an increase of 64.4 percent from RMB 8.17 billion in the first quarter of 2024.
The increase was due to higher sales of Zeekr vehicles, partially offset by lower average selling prices due to different product mix and pricing strategy changes between the two quarters, the company said.
Zeekr delivered a record 54,811 vehicles in the second quarter, an increase of 100.05 percent year-on-year and up 65.80 percent from the first quarter, according to previously announced data.
The company reported revenue from sales of batteries and other components of RMB 5.3 billion in the second quarter, up 36.1 percent from RMB 3.89 billion in the second quarter of 2023 while down 16.1 percent from RMB 6.32 billion in the first quarter of 2024.
The year-on-year growth was mainly attributable to increased sales of battery packs and electric drives, as well as increased sales of battery components overseas, while the sequential decline was mainly attributable to lower sales of battery modules in the domestic market compared with the previous period, Zeekr said.
Zeekr reported a gross margin of 17.2 percent in the second quarter, compared to a gross margin of 12.3 percent in the second quarter of 2023 and 11.8 percent in the first quarter of 2024.
The year-on-year and sequential increases were mainly attributed to higher margins on batteries and other components, the company said.
It reported a vehicle margin of 14.2 percent in the second quarter, compared with 13.6 percent in the second quarter of 2023 and 14.0 percent in the first quarter of 2024.
The year-on-year increase was primarily attributable to procurement savings due to lower auto parts and materials costs, partially offset by lower average selling prices for Zeekr vehicles. The sequential increase was primarily due to changes in product mix.
Zeekr reported a net loss of RMB 1.81 billion in the second quarter, an increase of 28.7 percent from RMB 1.41 billion in the second quarter of 2023 and a decrease of 10.5 percent from RMB 2.02 billion in the first quarter of 2024.
Non-GAAP net loss for the second quarter of 2024 was RMB 865 million, a decrease of 36.8 percent from RMB 1.37 billion in the second quarter of 2023 and a decrease of 57.2 percent from RMB 2.02 billion in the first quarter of 2024.
The company's R&D expenses amounted to RMB 2.62 billion in the second quarter, an increase of 89.6 percent from RMB1.38 billion in the second quarter of 2023 and an increase of 36.3 percent from RMB 1.93 billion in the first quarter of 2024.
The year-on-year increase was primarily attributable to an increase in employee compensation due to an increase in the number of research and development personnel, as well as equity incentive expenses. The sequential increase was primarily attributable to an increase in employee compensation due to the equity incentive expense.
As of June 30, Zeekr had cash, cash equivalents and restricted cash of RMB 8.05 billion.
Zeekr did not provide guidance on deliveries and revenue for the next quarter, as other local peers have done.
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