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Chinese Luxury EV Company Zeekr Clocks 100% Growth in Q2 Deliveries, Margin Boost Amid Domestic Price War, Tariffs

Benzinga ·  Aug 21 06:14

ZEEKR Intelligent Technology Holding (NYSE: ZK) reported fiscal second-quarter revenue of 20.04 billion Chinese Yuan ($2.76 billion), representing an increase of 58.4% year-on-year, quashing the analyst consensus estimate of $2.60 billion.

The premium electric vehicle company's adjusted net loss per ADS of $0.75 beat the analyst consensus loss estimate of $1.40.

Total vehicle deliveries were 54,811 units for the second quarter of 2024, up 100% year over year and a 66% increase quarter-over-quarter.

In July 2024, the company delivered 15,655 vehicles, up 30% year over year.

Vehicle sales were 13.44 billion Chinese Yuan ($1.85 billion) for the quarter, representing an increase of 59.0% year over year due to the increased sales volume of ZEEKR vehicles. Vehicle sales increased 64.4% versus the first quarter of 2024.

The vehicle margin was 14.2% for the quarter, up from 13.6% year over year, primarily due to procurement savings.

Revenues from sales of batteries and other components were 5.3 billion Chinese Yuan ($729.2 million) for the quarter of 2024, representing an increase of 36.1%, mainly attributable to the increasing sales volume of battery packs and electric drives.

Revenues from research and development services and other services were 1.30 billion Chinese Yuan ($179.2 million) for the quarter, representing an increase of 326.8% year over year.

The gross margin climbed to 17.2% for the quarter, up from 12.3% Y/Y, attributable to increased margins on batteries and other components.

The company held 8.05 billion Chinese Yuan ($1.11 billion) in cash and equivalents as of June-end.

ZEEKR Intelligent Technology stock plunged over 46% in the last 12 months as the Chinese EV industry grappled with a domestic price war and international protectionist tariffs.

Price Action: ZK stock traded higher by 8.41% at $16.50 premarket at the last check Wednesday.

Image Credits – Shutterstock

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