Zeekr reports a large reduction in net loss in its first post-IPO earnings report in the US

At press time, Zeekr was up 8.2 percent to $25.6 in pre-market trading.

Zeekr (NYSE: ZK) in its first earnings report reported a sharply narrower loss for the first quarter since its U.S. initial public offering (IPO), sending the company’s shares higher in pre-market trading.

According to unaudited financial results announced today, the company posted a net loss of RMB2.02 billion ($280 million) in the first quarter, down 18 percent from the first quarter of 2023 and down 31.2 percent in compared to the fourth quarter of 2023.

Zeekr’s non-GAAP net loss, excluding equity incentive costs, for the first quarter was RMB 2.02 billion, down 17 percent from Q1 2023 and down 30.4 percent from Q4 2023 r.

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 RMB1.01 in the first quarter, better than analysts’ expectations for a loss of RMB11.73 in a Bloomberg survey. The figure was RMB 1.18 in Q1 2023 and RMB 1.48 in Q4 2023.

Zeekr went public on the New York Stock Exchange on May 10, and its current market capitalization is approximately $5.9 billion.

Zeekr delivered 33,059 vehicles in the first quarter, up 117.01 percent year-over-year, although down 16.64 percent compared to last year’s fourth quarter.

This brought first-quarter revenue to RMB 14.74 billion, up 71 percent from Q1 2023 but down 9.9 percent from Q4 2023.

Zeekr’s first-quarter vehicle sales revenue was RMB 8.17 billion, an increase of 73 percent compared to the first quarter of 2023 and a decrease of 22.8 percent compared to the fourth quarter of 2023.

The year-over-year increase was due to an increase in Zeekr vehicle sales, while the year-over-year decline was due to seasonal factors affecting 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 percent compared to the first quarter of 2023 and 56.5 percent compared to the fourth quarter of 2023.

Zeekr said the increase was primarily due to higher sales of batteries and electric drives, as well as an increase in sales of foreign battery components.

Zeekr gross margin was 11.8% in the first quarter compared to 7.9% in the first quarter of 2023 and 14.2% in the fourth quarter of 2023.

In the first quarter, vehicle margin was 14 percent compared to 10.1 percent in the first quarter of 2023 and 15.3 percent in the fourth quarter of 2023.

The year-on-year increase was primarily due to savings on purchases due to a decrease in the costs of car parts and materials. According to the company, the year-on-year decline was primarily due to deliveries of new models and changes in the product range.

Zeekr’s R&D expenditure was RMB 1.93 billion in the first quarter, an increase of 6.7% compared to the first quarter of 2023 and a decrease of 39.1% compared to the fourth quarter of 2023.

The year-over-year increase can be attributed to higher employee compensation due to job growth, as well as higher spending to support an expanding portfolio of products and smart technologies, Zeekr said, adding that the subsequent decline reflects fluctuations due to various projects and development stages of new products and technologies.

As of March 31, Zeekr’s cash, cash equivalents and restricted cash was RMB3.79 billion.

Zeekr did not announce delivery or revenue forecasts for the second quarter.

At press time, Zeekr was up 8.2 percent to $25.60 in pre-market trading.

In May, Zeekr delivered a record 18,616 cars