Shares of Zeekr Intelligent Technology tumbled despite the electric vehicle subsidiary of Chinese auto giant Geely Holding Group reporting its loss shrank 18 percent in the first quarter thanks to record high deliveries.
Zeekr [NYSE: ZK] closed 6.5 percent lower at USD22.12 a share in New York yesterday, after plunging by as much as 9.5 percent at one point.
Net loss was CNY2 billion (USD281.5 million) in the three months ended March 31, the Ningbo-based firm said in its first quarterly financial report since going public last month released yesterday. Revenue totaled CNY14.7 billion (USD2 billion), up 71 percent from a year earlier but down 9.9 percent from the prior quarter.
Zeekr's gross margin stood at 11.8 percent in the first quarter, compared with 7.9 percent a year ago and 14.2 percent in the fourth quarter of last year. The quarter on quarter drop was mainly because of seasonal factors impacting deliveries, while the lower average sales price was mainly due to a change in product mix and fierce competition.
"We started our journey as a public company on a strong note with an excellent operational and financial performance for the first quarter of 2024," said Andy An, chief executive of Zeekr. "First quarter deliveries soared to 33,059 vehicles, up 117 percent year-over-year to reach a new quarterly record high and propelling our progress toward our full-year goal of 230,000 vehicles."
Revenue from car sales surged 73 percent to CNY8.2 billion, with a profit margin of 14 percent, up 3.9 percentage points from a year earlier and down 1.3 points from the prior quarter, Zeekr pointed out. The average selling price of its autos fell by CNY20,000 (USD2,810) to CNY248,000 (USD34,880) quarter-on-quarter.
Zeekr's revenue from the sale of batteries and other components surged 82 percent to CNY6.3 billion in the first three months of the year from a year ago, while that from research and development services tumbled 42 percent to CNY244.1 million (USD34.3 million).
Zeekr commits to electric vehicles with no plan to launch extended-range EVs, it noted. It will enhance its product offerings, expand distribution channels, and bolster its ultra-fast charging infrastructure to better compete in the market, it noted, adding that it has entered over 20 countries and regions and aims to further expand its overseas presence.
Zeekr's deliveries surged 115 percent to 18,616 units last month from a year earlier, while its total deliveries reached 264,397 units as of the end of May.
