Zeekr reports big reduction in net loss in 1st earnings report after US IPO
Zeekr posted a sharply narrower first-quarter loss in its first earnings report since its IPO in the US, driving shares up in pre-market trading.
The company reported a net loss of RMB 2.02 billion (YSD280 million) in the first quarter, down 18% from the first quarter of 2023 and down 31.2% from the fourth quarter of 2023, according to its unaudited financial results announced today.
Zeekr's non-GAAP net loss excluding equity incentive expense for the first quarter was RMB 2.02 billion, a decrease of 17% from the first quarter of 2023 and a decrease of 30.4% from the fourth quarter of 2023.
It reported both basic and diluted net loss per share of RMB 1.01 in the first quarter, compared to RMB 1.2 in the first quarter of 2023 and RMB 1.49 in the fourth quarter of 2023.
Zeekr reported non-GAAP basic and diluted net loss per share of RMB 1.01 in the first quarter, better than analysts' expectations of a loss of RMB 11.73 in a Bloomberg survey. The figure was RMB 1.18 in the first quarter of 2023 and RMB 1.48 in the fourth quarter of 2023.
Zeekr delivered 33,059 vehicles in the first quarter, up 117.01% year-on-year, though down 16.64% from last year's fourth quarter.
This resulted in first quarter revenue of RMB 14.74 billion, which was higher than Wall Street's estimate of RMB 12.16 billion. This represents a 71% increase from the first quarter of 2023, but a 9.9% decrease from the fourth quarter of 2023.
Zeekr's revenue from vehicle sales in the first quarter was RMB 8.17 billion, an increase of 73% from the first quarter of 2023 and a decrease of 22.8% from the fourth quarter of 2023.
The year-on-year increase was due to an increase in Zeekr's vehicle sales, and the year-on-year decrease was due to seasonal factors impacting deliveries and lower average selling prices, primarily due to changes in product mix, the company said.
Zeekr reported revenue from sales of batteries and other components of RMB 6.32 billion in the first quarter, an increase of 82% from the first quarter of 2023 and 56.5 percent from the fourth quarter of 2023.
The increase was primarily attributable to higher sales of battery packs and electric drives, as well as growth in overseas battery components, Zeekr said.
Zeekr's gross margin was 11.8% in the first quarter, compared with 7.9% in the first quarter of 2023 and 14.2% in the fourth quarter of 2023.
It had a vehicle margin of 14% in the first quarter, compared with 10.1% in the first quarter of 2023 and 15.3% in the fourth quarter of 2023.
The year-on-year increase was primarily attributable to purchase savings as automotive parts and materials costs declined. The year-on-year decline was primarily due to new model deliveries and changes in product mix, according to the company.
Zeekr's research and development expenses amounted to RMB 1.93 billion in the first quarter, an increase of 6.7% from the first quarter of 2023 and a decrease of 39.1% from the fourth quarter of 2023.
The year-on-year increase was attributable to higher employee compensation due to an increase in headcount, as well as higher expenses to support an expanding product portfolio and smart technologies, Zeekr said, adding that the sequential decrease reflected fluctuations caused by different design and development stages of new products and technologies.
As of Mar 31, Zeekr's cash and cash equivalents and restricted cash stood at RMB 3.79 billion.
Zeekr did not announce its delivery or revenue guidance for the second quarter.
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