ZEEKR Intelligent Technology Holding (NYSE: ZK), a leading premium electric vehicle company, delivered impressive financial results for the second quarter of 2024. Revenue surged to 20.04 billion Chinese Yuan ($2.76 billion), marking a 58.4% year-over-year increase and outperforming analyst expectations of $2.60 billion. This strong growth was fueled by robust vehicle sales, driven by increased sales volume and improved vehicle margins.
The company’s adjusted net loss per ADS of $0.75 also beat analyst consensus estimates of $1.40. Total vehicle deliveries for the quarter reached 54,811 units, representing a 100% year-over-year increase and a 66% increase quarter-over-quarter. ZEEKR continued its momentum in July 2024, delivering 15,655 vehicles, a 30% year-over-year rise.
Vehicle sales for the quarter amounted to 13.44 billion Chinese Yuan ($1.85 billion), demonstrating a 59.0% year-over-year increase. This growth was primarily attributed to the rising sales volume of ZEEKR vehicles, with sales increasing 64.4% compared to the first quarter of 2024. The vehicle margin for the quarter climbed to 14.2%, up from 13.6% year over year, primarily driven by procurement savings.
Revenues from the sale of batteries and other components reached 5.3 billion Chinese Yuan ($729.2 million) in the second quarter, signifying a 36.1% year-over-year increase. This growth was mainly attributed to the rising sales volume of battery packs and electric drives. Revenues from research and development services and other services contributed 1.30 billion Chinese Yuan ($179.2 million) to the quarter, representing a substantial 326.8% year-over-year increase.
The company’s gross margin for the quarter climbed to 17.2%, up from 12.3% year over year, primarily driven by improved margins on batteries and other components. As of June-end, ZEEKR held 8.05 billion Chinese Yuan ($1.11 billion) in cash and equivalents.
Despite the impressive second-quarter results, ZEEKR Intelligent Technology stock has faced challenges over the past year, plunging over 46% in the last 12 months. This decline reflects the broader struggles of the Chinese EV industry, which has been grappling with a domestic price war and international protectionist tariffs. However, ZEEKR’s strong financial performance and continued growth in vehicle deliveries suggest the company remains well-positioned to navigate these industry headwinds. The stock traded higher by 8.41% at $16.50 premarket at the last check Wednesday.
