ZEEKR Clocks 51% Surge In Q3 Deliveries But Faces Lower Margins Amid Pricing Shifts: Deails

Benzinga11-14

ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) shares traded lower premarket on Thursday. On Wednesday, the company reported fiscal third-quarter revenue of 18.36 billion Chinese Yuan ($2.62 billion), representing an increase of 30.7% year-on-year, missing the analyst consensus estimate of $2.81 billion.

The premium electric vehicle company’s adjusted net loss per ADS of $0.66 beat the analyst consensus loss estimate of $1.26.

Total vehicle deliveries were 55,003 units for the third quarter of 2024, up 51% year over year. In October 2024, the company delivered 25,049 vehicles, up 92% year over year.

Vehicle sales were 14.40 billion Chinese Yuan ($2.05 billion) for the quarter, representing an increase of 42.0% year over year, led by an increase in new product delivery volume.

The vehicle margin was 15.7%, down from 18.1% year-over-year, reflecting a lower average selling price due to changes in ZEEKR’s product mix and pricing strategy.

Revenues from sales of batteries and other components were 3.25 billion Chinese Yuan ($462.5 million) for the quarter of 2024, representing a decline of 1.3% on year.

Revenues from research and development services and other services were 711.4 million Chinese Yuan ($101.4 million) for the quarter, representing an increase of 16.2% year over year.

The gross margin contracted to 16.0% for the quarter from 16.3% a year ago. The quarter-over-quarter decrease in gross margins was mainly attributable to the decreased margins on batteries and other components.

The company held 8.30 billion Chinese Yuan ($1.18 billion) in cash and equivalents as of September 30, 2024.

Andy An, ZEEKR’s chief executive officer, said, “Notably, the ZEEKR 7X’s deliveries exceeded 20,000 units within 50 days since its launch, marking a robust achievement in the highly competitive mainstream SUV market. As we expand our product lineup and strengthen each model’s position in its respective category, we are delivering ZEEKR’s ultimate driving experience to more users, further cementing ZEEKR’s industry leadership.”

In a separate release, ZEEKR announced strategic integration transactions with several Geely entities, including Geely Holding, Volvo Cars (China), Ningbo Geely, and LYNK & CO.

Price Action: ZK shares are down 7.34% at $27.00 premarket at the last check Thursday.

Image Credits – Shutterstock

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