Zeekr reports 1.1% year-on-year revenue growth, 19.1% gross margin in Q1

Zeekr Group's revenue for the first quarter was RMB22.0 billion ($3.03 billion), an increase of 1.1 percent year-on-year and a decrease of 37.8 percent from the fourth quarter.

Zeekr Group's gross margin was 19.1 percent in the first quarter, compared to 16.3 percent in the first quarter of 2024 and 18.0 percent in the fourth quarter.

(A Zeekr 009 on display at the April 2025 Shanghai auto show. Image credit: CnEVPost)

Zeekr Group (NYSE: ZK) reported slightly higher revenue than in the year-ago quarter, and an increased gross margin.

The company posted revenue of RMB 22 billion ($3.03 billion) in the first quarter, up 1.1 percent from RMB 21.8 billion in the first quarter of 2024 while down 37.8 percent from RMB 35.4 billion in the fourth quarter of 2024, according to its unaudited financial report released today.

Zeekr Group has Zeekr and Lynk & Co brands, and the integration of the two brands was completed on February 14.

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The initial technological consolidation of the two brands has already boosted profitability through optimized R&D and shared platforms, Zeekr Group CEO Andy An said.

In the first quarter, Zeekr Group's revenue from vehicle sales amounted to RMB 19.1 billion, an increase of 16.1 percent from RMB 16.5 billion in the first quarter of 2024 and a decrease of 38.4 percent from RMB 31 billion in the fourth quarter of 2024.

The sequential decline was mainly due to lower deliveries due to seasonal factors, the company said.

In the first quarter, Zeekr Group delivered 114,011 vehicles, up 21.14 percent from the combined deliveries of the Zeekr and Lynk & Co brands in the same period last year, but down 32.57 percent from the fourth quarter of 2024.

The Zeekr brand delivered 41,403 vehicles in the first quarter, an increase of 25.24 percent year-on-year, but a decrease of 47.76 percent from the fourth quarter of 2024.

Lynk & Co delivered 72,608 vehicles in the first quarter, an increase of 18.92 percent year-on-year but a decrease of 19.18 percent from the fourth quarter of 2024.

Zeekr Group's gross margin was 19.1 percent in the first quarter, compared to 16.3 percent in the first quarter of 2024 and 18.0 percent in the fourth quarter of 2024.

Vehicle margin was 16.5 percent in the first quarter of 2025, compared to 13.1 percent and 14.3 percent in the first quarter of 2024 and the fourth quarter of 2024, respectively.

The year-on-year and quarter-on-quarter increases were primarily attributable to continued cost-savings initiatives, partially offset by lower average vehicle selling prices.

Zeekr Group's R&D expenses for the first quarter were RMB 2.91 billion, an increase of 25.0 percent from RMB 2.33 billion in the first quarter of 2024, and a decrease of 25.6 percent from the same period of last year.