Latest news with #RMB4
The Sun
4 days ago
- Business
- The Sun
China Tower (788.HK) Announces 2025 Interim Results
Steady Improvement in Business Quality Continuously Enhancing Shareholder Returns HONG KONG SAR - Media OutReach Newswire - 5 August 2025 - The world's largest telecommunications infrastructure service provider China Tower Corporation Limited ('China Tower', or the 'Company') (Stock Code: is pleased to announce its interim results for the six months ended 30 June 2025. In the first half of 2025, the Company's operating revenue maintained steady growth, reaching RMB49,601 million, an increase of 2.8% year-on-year. EBITDA reached RMB34,227 million, an increase of 3.6% year-on-year, with an EBITDA margin[3] of 69.0%. Profit attributable to the owners of the Company reached RMB5,757 million, an increase of 8.0% year-on-year, with a net profit margin of 11.6%, demonstrating a continuous improvement in profitability. Net cash generated from operating activities amounted to RMB28,679 million, a decrease of RMB4,151 million year-on-year. Capital expenditures stood at RMB12,392 million, with free cash flow[4] reaching RMB16,287 million, down by RMB2,814 million year-on-year. As at 30 June 2025, our total assets amounted to RMB331,127 million, with interest-bearing liabilities of RMB92,639 million and a gearing ratio[5] of 29.5%, representing a decrease of 1.5 percentage points from the end of 2024. Financial position remains healthy and stable. The Company attaches great importance to shareholder returns. After considering our profitability, cash flow and future development needs, the board of directors of the Company has resolved to distribute an interim dividend of RMB0.13250 per share (pre-tax). We will work towards realizing healthy growth in annual dividend payment per share and creating greater value for shareholders. Strong foundation helped maintain stable performance in TSP business The Company fully delivered on its role as part of a nationwide consortium of telecommunication infrastructure developers and as the leading force in new 5G infrastructure construction. We further overcame challenges in the Dual-Gigabit network joint-entry, as well as implementing special projects such as upgrading signal strength and extending broadband coverage to all border areas. We were able to capture opportunities presented by the continuous expansion of 5G network penetration and coverage in China. By working to improve resource coordination and sharing, and enhancing our professional operations, we were able to fully satisfy customer network construction needs and maintain stable growth in the TSP business. In the first half of 2025, our TSP business recorded revenues of RMB42,461 million, an increase of 0.8% year-on-year. Tower business. We implemented an embedded service mechanism to strengthen customer communications and engagement with a focus on TSPs' network construction planning. By doing so we were able to acquire orders by customer types and by network standards/frequency bands. Based on site resource data, we proactively conducted network coverage analysis to identify weak coverage areas, enabling the development of comprehensive solutions and regional products to meet customer needs. We focused on resolving customer pain points, continuously tackling difficult sites to gain customer recognition while fully acquiring and addressing customer demands. By adhering to a customer-oriented philosophy, we constantly optimized our business processes, standardized business management, and improved the efficiency of order acquisition and delivery as well as billing and payment collection, in order to enhance service capabilities and customer satisfaction. In the first half of 2025, our Tower business revenue reached RMB37,797 million, maintaining at about the same level year-on-year. As of 30 June 2025, the Company managed a total of 2.119 million tower sites, an increase of 25,000 sites compared to the end of 2024. We gained 35,000 new TSP tenants since the end of 2024, bringing the total number of TSP tenants to 3.579 million. Our TSP tenancy ratio was 1.72. DAS business. Maintaining a clear focus on high-value scenarios, the Company continued to strengthen its resource coordination and sharing capabilities for key sites such as large transportation hubs, subways, large venues, Grade 3A hospitals, tertiary institutions, and landmark buildings. We collaborated with TSPs to accelerate 5G network upgrades on high-speed railways, achieving a larger share of high-value scenario orders. By furthering joint construction and shared development, we have improved coverage efficiency and unleashed our advantages in coordinated site entry and construction. We supported TSPs in swiftly and economically expanding network coverage to improve people's livelihoods through scale deployment of shared repeaters in elevators, underground parking lots, highway tunnels, residential properties and other sites. We accelerated 5G upgrades and continuously optimized active and passive DAS sharing solutions to enhance product competitiveness. We piloted shared frequency-shifting solutions during the 5G upgrades of existing DAS to ensure that the network quality improves in line with customer requirements. In the first half of 2025, our revenue from DAS business reached RMB4,664 million, an increase of 12.0% compared to the same period last year, maintaining relatively high growth. As of 30 June 2025, we had covered buildings with a cumulative area of 13.85 billion square meters, up by 20.0% year-on-year, while the coverage in high-speed railway tunnels and subways reached a cumulative length of 30,878 kilometers, representing an increase of 17.0% year-on-year. Refined operations to boost rapid development of Two Wings business We continued to strengthen product innovation and optimized business planning to improve our core competencies and promote further development of our Two Wings business, realizing rapid revenue and scale expansion. In the first half of 2025, revenues from our Two Wings business reached RMB6,935 million, accounting for 14.0% of our overall operating revenue and representing an increase of 1.6 percentage points over the same period last year. Smart Tower business. Focusing on spatial digital intelligence governance, we leveraged our rich resources and capabilities to transform 'telecommunication towers' to 'digital towers', which supported national strategies and major projects while improving the quality of our Smart Tower business. In terms of identifying customer demands, we further developed the Smart Tower business across vertical sectors and promoted strategic cooperation with a list-based approach. Our market share expanded and leadership consolidated across key scenarios such as farmland protection, fisheries law enforcement, bushfire prevention, disaster alert, and emergency rescue. In terms of refining our products, we advanced the construction and operations of the distributed platform and optimized our distinctive algorithm warehouse for mid-to-high points. We developed high-quality data sets for digital intelligent governance, further improving the competitiveness of products in key service scenarios. In terms of upgrading service delivery, we continued to elevate the service quality for customers in key industries, centering around the development of high-standard service systems. We reinforced service process management and advanced service upgrades for major projects and key service scenarios. We reinforced our local support and service teams to ensure swift response to customers' incremental development requirements, continuously enhancing our 'companion' service capabilities. In terms of strengthening security, we solidified measures by deepening closed-loop management of network information security risks and improving the technical protection system. We carried out special initiatives to comprehensively enhance technical protection capabilities for network information security across data, terminals, platforms, and cloud networks. In the first half of 2025, our Smart Tower business achieved revenue of RMB4,726 million, a year-on-year increase of 18.7%. Of which, RMB2,822 million was generated from Tower Monitoring business, accounting for 59.7% of our Smart Tower business. Energy business. We focused on key business segments such as battery exchange and power backup, leveraging core competitiveness in product, service, and platform. We carried out refined operation and turned our Energy business into a specialized business stream. For the battery exchange business, we strengthened our presence in the consumer food delivery market while accelerating expansion among corporate customers. We established a VIP user management system to improve service capabilities and customer retention, driving rapid growth in our user base. As of 30 June 2025, we had approximately 1.470 million battery exchange users, an increase of 166,000 from the end of 2024, further maintaining our leading position in battery exchange for low-speed electric vehicles. Drawing on effective resource allocations, we accelerated the construction of a community charging infrastructure network system, improved operation and management capabilities, provided safe charging services for low-speed electric vehicles to the community, and continuously expanded the scale of service users. For the power backup business, we tapped into pivotal industries such as telecommunications and finance, along with key scenarios, to expand our premium customer base, analyze customer needs, strengthen capabilities, promot a comprehensive 'power backup +' industry solution and forge China Tower 'energy butler' brand. In the first half of 2025, our Energy business achieved revenue of RMB2,209 million, a year-on-year increase of 9.2%. Of which, the battery exchange business accounted for RMB1,323 million, contributing to 59.9% of the Energy business revenue. Technological innovation steadily generated positive impact In the first half of the year, we continued to strengthen technological innovation, building robust momentum for sustainable development. We intensified R&D efforts in critical technologies, including next-generation mobile communications, AI, edge computing, 5G + BeiDou integration, 5G shared DAS, new energy solutions and Internet of Things. We focused on establishing major projects and technical standards with international and industrial impact. By releasing a series of achievement lists, smoothing transformation channels, conducting scientific and technological achievement evaluations, and promoting transformation through categorized measures, we accelerated the channeling of technological achievements into production. We further promoted the management of the 'four lists', namely competencies and capabilities, task and project planning, resource allocation, and the commercialization of research outcomes, to steadily improve the efficiency and performance of innovation. In the first half of 2025, our R&D team size increased by 29%, compared to the same period last year, while the cumulative number of patent authorizations rose by 16% since the end of 2024. Mr. Zhang Zhiyong, Chairman of China Tower said, 'During the first half of 2025, we continued to optimize resource allocation, deepen reform and innovation, promote stable and high-quality operations and development, and improve corporate efficiency, further enhancing our core competitiveness. Looking ahead, we will continue to uphold the philosophy of resource sharing and adhere to the 'One Core and Two Wings' strategy to further enhance our core competitiveness, promote high-quality development, and maximize value for shareholders, customers, and society.' [1] EBITDA is calculated by operating profit plus depreciation and amortization. [2] The Company's share consolidation and capital reduction took effect on 20 February 2025. The Company's total issued share capital was reduced from 176,008,471,024 shares to 17,600,847,102 shares. Taking into account the aforementioned change in total issued share capital, the growth rate is calculated based on the total amount of dividends. [3] EBITDA margin is calculated by dividing EBITDA by operating revenue, and multiplying the resulting value by 100%. [4] Free cash flow is the net cash generated from operating activities minus the capital expenditures. [5] Gearing ratio is calculated as net debt (Interest-bearing liabilities minus the amount of cash and cash equivalents) divided by the sum of total equity and net debt, then multiplied by 100%. About China Tower (Stock Code: China Tower is the world's largest telecommunications tower infrastructure service provider, and the Company always adheres to the philosophy of shared development and implements the 'One Core and Two Wings' strategy. The Company is principally engaged in the construction, maintenance and operation of base station ancillary facilities such as telecommunications towers, public network coverage in high-speed railways and subways, and large-scale indoor Distributed Antenna Systems (DAS). Meanwhile, relying on unique resources to provide energy application services such as information application and intelligent battery exchange and power backup to the society, the Company strives to build itself into a world-class integrated digital infrastructure service provider, and a highly competitive information and new energy applications provider. As of the end of June 2025, the Company's total assets amounted to RMB331,127 million. China Tower operated and managed 2.119 million tower sites across 31 provinces, municipalities and autonomous regions in the PRC, and served over 3.844 million tenants with the tenancy ratio of 1.81.
Yahoo
14-07-2025
- Automotive
- Yahoo
ZEEKR Intelligent Technology (ZK) Released its June 2025 Delivery Update
ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) is one of the . On July 1, ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) provided a delivery update for June 2025. The company reported delivering 43,102 vehicles across both its Zeekr and Lynk & Co brands. The Zeekr brand delivered 16,702 vehicles, whereas Lynk & Co delivered 26,310 vehicles during the month. Management noted that the company has around 1.99 million cumulative users. ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) has delivered 244,877 vehicles on a year-to-date basis, which reflects a 14.5% year-over-year growth. Photo by Kumpan Electric on Unsplash Moreover, ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) during the fiscal first quarter of 2025 delivered 19,096 vehicles, up 16.1% year-over-year. The total revenue reached RMB22,019 million, reflecting a 1.1% increase year-over-year. Notably, the gross profits remained strong at RMB4,213 million, reflecting an 18.8% increase during the same time. ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) develops and sells battery electric vehicles. While we acknowledge the potential of ZK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
ATRenew Inc (RERE) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Expansion
Total Net Revenue: RMB4,653.5 million, a 27.5% increase year over year. Non-GAAP Operating Income: Over RMB110 million, a 39.5% increase year over year. Non-GAAP Operating Margin: 2.4%, up from the previous year. 1P Business Revenue Growth: 28.8% year over year. 1P2C Revenue Growth: 73.5% year over year. Retail Revenue Contribution: 33% of 1P revenue. Net Product Revenues: RMB4,260 million, a 28.8% increase year over year. Net Service Revenues: RMB390 million, a 14.2% increase year over year. Gross Profit Margin for 1P Business: 15.2%, up from 10.9% last year. Fulfillment Expenses: RMB430 million, a 38.1% increase year over year. Selling and Marketing Expenses: RMB420 million, a 30.4% increase year over year. Cash and Cash Equivalents: RMB2.78 billion as of March 30, 2025. Store Network Expansion: Net addition of 458 AHS stores year over year. Share Repurchase: Approximately 0.4 million ADS for USD1.2 million in Q1 2025. Q2 2025 Revenue Outlook: Between RMB4,710 million and RMB4,801 million, a 24.7% to 27.4% increase year over year. Warning! GuruFocus has detected 1 Warning Sign with RERE. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total net revenues for the first quarter exceeded the high end of guidance, increasing 27.5% year over year to RMB4,653.5 million. Non-GAAP property income increased by 39.5% year over year to over RMB110 million, with a non-GAAP operating margin reaching 2.4%. 1P business revenue grew by 28.8% year over year, with product revenue increasing by over 50%. The strategic partnership with has strengthened, improving the trade-in supply chain and user experience. The number of registered merchants in PJT exceeded 1 million, with a double-digit year over year increase in active trading merchants. Fulfillment expenses increased by 38.1% to RMB430 million, with non-GAAP fulfillment expenses rising by 40.2%. Selling and marketing expenses increased by 30.4% to RMB420 million, with non-GAAP selling and marketing expenses rising by 72.8%. Revenue from Apple's official trading business declined year over year due to high base effects from previous pricing strategies. The non-GAAP fulfillment expense ratio rose by 0.9% year over year due to increased staff and operational costs. Non-GAAP selling expenses ratio increased by 2.2%, driven by higher promotion and advertising expenses. Q: How effective has the national subsidy been in promoting recycling and trading programs? Do you see the same growth momentum in your secondhand recycling and resale business as a result? A: Xuefeng Chen, CEO: The national subsidy has been effective in promoting recycling and trading programs. The shipment of new smartphones increased by 9% year over year, and consumer electronic sales on showed strong growth. The subsidy cap for mobile phone trade-in is RMB500, while our average recycling price is RMB1500, creating a strong incentive for users. We expect the penetration rate for recycling and trading programs to rise significantly in the long term. Q: Could you explain the increase in the non-GAAP fulfillment margin and self-marketing margin? Is there any adjustment to this year's total revenue and margins target? A: Chen Chen, CFO: The improvement in non-GAAP operating profit margin was due to optimized pricing strategies and balanced expense control. The profit margin for Apple's trading program and overseas business improved significantly. We increased fulfillment and marketing expenses to support business growth. We remain committed to accelerating revenue growth and improving non-GAAP operating profit margin. Q: Can you share details on the progress of store openings in the first quarter? A: Xuefeng Chen, CEO: As of March 30, 2025, we had 1,886 AHS recycled stores, including 917 self-operated and 969 joint-operated stores, a net increase of 458 stores year over year. We transitioned some joint-operated stores to self-operated models to handle increased trading volumes and improve user satisfaction. Our fulfillment team expanded by 360 people to strengthen capabilities. Q: How much traction have you seen from your increased focus on marketing and advertising for the AHS recycle brand? A: Xuefeng Chen, CEO: AHS Recycle has solidified its position as a leading brand by providing high-quality services. We use new media campaigns to enhance brand awareness and guide users to stores. Product revenue from AHS mini programs and websites grew faster than the overall 1P business. We will continue to strengthen the brand and capture greater market share. Q: What is the outlook for the second quarter of 2025? A: Chen Chen, CFO: We anticipate total revenues to be between RMB4710 million and RMB4801 million, representing a year-over-year increase of 24.7% to 27.4%. This forecast reflects our current views on market and operational conditions, which are subject to change. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Q1 2025 ATRenew Inc Earnings Call
Jeremy Ji; Director of Corporate Development, Investor Relations; ATRenew Inc Xuefeng Chen; Chairman of the Board, Chief Executive Officer, Founder; ATRenew Inc Chen Chen; Chief Financial Officer, Director; ATRenew Inc Joyce Ju; Analyst; Bank of America Michael Kim; Analyst; Zacks Investment Research Operator Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to ATRenew Inc's first quarter 2025 earnings conference call. (Operator Instructions) I will now turn the call over to the first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the Company. Please go ahead, sir. Jeremy Ji Thank you. Hello everyone, and welcome to ATRenew first quarter 2025 earnings conference call. Speaking first today is Kerry Chen, our Founder, Chairman and CEO, and he will be followed by Rex Chen, our CFO. After that, we'll open the call to questions from analysts. The first quarter 2025 financial results were released early today. The earnings press release and investors slides accompanying this call are now available at our website dotcom. There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will participate during the Q&A session. Please note that our safe harbor statements. Some of the information you hear during our discussions today will consist of forward-looking statements, and I refer you to our safe harbor statements in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and that ATRenew does not take any obligations to upgrade our assumptions on these statements. Also this call includes discussions of certain non-GAAP financial measures, please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB and all comparisons on a year to year basis. And now I'd like to turn the call over to Kerry for business and strategy updates. Xuefeng Chen (interpreted) Hello everyone and thank you for joining ATRenew first quarter 2025 earnings conference call. We are excited to share the updates of our performance and business developments and to address your questions about the company's recent progress. Firstly, in terms of operating results, total net revenues for the first quarter once again exceeded the high end of our guidance range, increasing 27.5% year over year to RMB4,653.5 million. On the profitability side, our non-GAAP property income increased by 39.5% year over year to over RMB110 million. Non-GAAP operating margin reached 2.4%, indicating healthy progress compared to the first quarter of last year. The strong and stable growth of total revenue was primarily driven by the accelerated growth of our 1P business. We continue to invest in our 1P business and recycling fulfillment capabilities, enhance supply access and strengthen AHS recycle brand recognition among consumers to further improve the penetration of our 1PtoC retail sales in our sales mix. Let me provide more color for the three key drivers of the 1P business. Firstly, in the first quarter, 1P business revenue grew by 28.8% year over year, excluding the high base impact from Apple's official trading program and overseas business as mentioned during the fourth quarter earnings call. Product revenue in the first quarter increased by over 50% year over year, exceeding our expectations. In terms of trends, supported by the national subsidies for smartphones and digital products, as well as increased demand for user upgrades in the scenario of our strategic partner platform, our C2B consumer electronics recycling value grew by over 50% year over year. We are committed to advancing strategies on direct engagement with consumers at the front of recycling and retailing. On the capability side, we continue to enhance offline fulfillment capabilities, achieving a net addition of 458 AHS stores year on year by the end of March 2025 and broadening our door to door fulfillment coverage with more prompt service. The effort improves multiple metrics indicating C2B recycling customer satisfaction and ensures a high quality experience for trading users via national subsidies. In terms of our strategic partnership with we've strengthened the long-term development supply chain, delivering best in class user experience and efficient fulfillment. By optimizing the trading process, we've reduced barriers to national subsidies, enabling customers to trade in new devices for new ones in a better and cheaper way. This not only stimulates demand but also improves supplies of high quality pre-owned consumer electronics to boost recycling penetration. As a result, the growth of the trade-in segment continues to outpace. Looking ahead, we will continue to enhance our trade-in supply chain and services to expand our market share in the pre-owned consumer electronics industry. Through new media channels with creative marketing and influencer partnerships, encouraging users to experience AHS recycle's wide range of recycling services and accelerating the growth of our recycling channels. We have launched the revived Environmental Protection initiative under the AHS Recycle brand and fully integrated it with our existing initiatives. This encourages more consumer brands to collaborate with us, enhancing user recognition of AHS recycled value proposition and increasing engagement with our services. In April, while celebrating the Earth Day, we collaborated with 12 leading domestic consumer brands to promote initiatives focused on recycling and the circular economy through joint campaigns across online and offline channels. We enhanced our direct to consumer retail operations under the one business. In the first quarter, 1P2C revenue grew by 73.5% year over year. Retail revenue accounted for 33% of 1P revenue, representing an upward trend. Backed by our refurbishment capabilities, we've seen the pilot program of on-demand refurbishment effectively leverage retail capabilities, creating strong synergies with our in-house compliant refurbishment operations. This approach allows us to offer competitively priced, quality assured 1P refurbished products to users across Paipai, AHS selection, and other retail partner channels. As a result, GMV has shown a healthy upward trend quarter over quarter. Additionally, the retail capability of AHS recycles official store network continued to expand, with revenue growing by over 160% year over year. This amplified our product accessibility to consumers. Looking specifically at the Apple official trading business, as mentioned in previous earnings costs, revenue declined year by year in the first quarter due to the high base driven by early stage pricing strategies. However, benefiting from our management capability and operational efficiencies, the margin in this segment improved significantly. For overseas revenues, as we adjusted our business scale, there was a notable improvement in margin as well. Regarding our marketplace businesses, we've seen a marked rise in trading service acceptance among both online and offline users alongside positive shift in merchant demands. In response, we have enhanced our B2B, B2C, and multi-category recycling services to deliver best in class user experience, thereby boosting user loyalty. We've strengthened our industry capabilities as fundamental infrastructure and enhanced services for merchants. As of the end of the first quarter, the number of registered merchants in PJT exceeded 1 million, with a double-digit year over year increase in active trading merchants. The proportion of higher fee OPT services, i.e., shipping quality inspection services, grew, raising PJT marketplaces take rate for the secondhand consumer electronic transactions by 24 basis points. This reflects PJT's growing nationwide prominence as an essential infrastructure within the industry and as a leading exchange for secondhand electronic products. PGT is pioneering the innovation of secondhand sales models by expanding diverse online and offline sales channels for merchants. In March, we launched our first offline flagship store in Shenzhen's Huaqiangbei, driving transparency in the pre-owned consumer electronics industry. The 1,200 square meter store displays nearly 10,000 secondhand phones that have undergone professional inspections. The flagship store operates under a warehouse to retail model, seamlessly integrating storage and sales functions by offering all in one browse intact purchase experience, it significantly reduces the traditional three to five days of restocking cycle, helping merchants reduce inventory costs and minimize logistics delays. On-site procurement also reduces after sales disputes. We will continue to empower more industry merchants, open up our local and national merchant resources to enrich the offline product selection. In addition, we recently began piloting compact authentication warehouses within our self-operated city to streamline the quality inspection process for merchants. These compact warehouses located closer to major trading hubs allow us to operate at lower costs while offering more convenient and accessible services to merchants. At the same time, we are exploring collaborations with influencers on live streaming platforms. We opened our 10 and 3D inventory and supply chain on the PJT marketplace to those influencers, which enables them to help users find high quality and cost effective devices, creating the specialty buyer model and enhancing the service loop between PJT and consumers. Moving forward, we will open up more platform capabilities to merchants to boost quality product sales and promote distribution capabilities and compliant growth of pre-owned consumer electronics across regional centers. This includes expanding merchants to increase the variety and volume of products, strengthening backend systems to improve greater accuracy in pricing and the overall merchant experience while driving higher product turnover. In terms of scale, sales across all categories in the i i consignment business grew by 2.2 times year over year in the first quarter. Looking ahead, we plan to further integrate consignment products into more of our self-operated distribution channels, providing small and medium sized merchants with broader access to retail opportunities. Throughout the development of multi-category recycling services, both gross transaction value and revenue nearly tripled year over year in the first quarter. Gold recycling saw faster growth, while the recycling service fee for luxury goods increased slightly. As a result of these combined factors, the overall multi recycling take rate remains stable year over year. In terms of user experience, we have continued to optimize our SOPs and internal capabilities across multiple areas, including pre-recycling consultation, pricing, and delivery. As a result, overall customer satisfaction and user experience have improved meaningfully. In summary, our core businesses achieved faster than expected growth in the first quarter of this year. We seized growth opportunities arising from national subsidies by providing best in class trad in experience. As we enter the second quarter, we are confident in further strengthening our fulfillment capabilities and brand influence. This will enhance users' awareness of trade in and recycling, enabling us to seize the industry growth opportunities. In the long run, as user recognition of recycling and secondhand products continues to rise, the industry is on a positive growth trajectory. With our long term and steadfast scenarios plus supply chain strategy, we are committed to obtaining growth, more user mindshare. Enhancing user experience, ensuring the efficient circulation of secondhand products, and creating greater value. Now I'd like to turn the call over to CFO Rex, for financial updates. Chen Chen (interpreted) Hello everyone. We are pleased to report strong financial performance in the first quarter of 2025, driven by the national subsidy policies or enhanced fulfillment capabilities and expanded retail network. Total revenue in the first quarter once again exceeded the high end of our guidance, increasing by 27.5% to over RMB4650 million, and adjusted operating income increased by 39.5% to over RMB110 million. Before taking a detailed look at the financials, please note that all amounts are in RMB and all comparisons are on a year over year basis unless otherwise stated. In the first quarter, the growth of total revenues was primarily driven by sustained growth in our net product revenues. Net product revenues increased by 28.8% to RMB4260 million, primarily due to an increase in the sales of free on consumer electronics through our online channels. Net service revenues were 390 million, representing an increase of 14.2%. The increase was primarily due to an increase in the service revenue generated from multicultural recycling business and PJT marketplace. The growth in service revenue went along with the upward trend in our marketplaces overall gross transaction value, delivering an overall marketplace take rate of 5.25% in the first quarter of 2025. During the quarter. Our multi-category recycling business contributed over RMB50 million of revenue, accounting for 13.3% of service revenues. The percentage significantly increased from 5.6% in the same period of 2024. Now let's discuss our operating expenses to provide greater clarity on the trends in our actual operating-based expenses, we will mainly discuss our non-GAAP operating expenses, which better reflect how management views our results of operations. The reconciliation of GAAP and non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the U.S. SEC. Merchandise costs increased by 22.7% to RMB3620 million in line with the growth of revenue product sales. Gross profit margin for our 1P business was 15.2% compared with 10.9% in the same period last year. The improvement of gross margin in our 1P business was primarily due to our C2B recycling supply chain capabilities, compliant refurbishment capabilities, and diversified retail channels. In addition, we optimize the business strategy of Apple's official trade-in program. Despite a decrease in business scale from the high base in the first quarter of 2024. The growth margin in the first quarter of 2025 achieved a significant turnaround from losses compared to the same period last year. Fulfillment expenses increased by 38.1% to RMB430 million. Non-GAAP fulfillment expenses increased by 40.2% to RMB430 million. Under the non-GAAP measures, the increase was primarily due to an increase in personnel costs and logistics expenses as we conducted more recycling and transaction activities compared with the same period of 2024 and an increase in operation related expenses as we expanded our store networks and operation center cap capacity in the first quarter of 2025. Then get fulfillment senses as a percentage of total revenues increased to 9.1% from 8.3%. Selling and marketing expenses increased by 30.4% to RMB420 million. Non-GAAP selling and marketing expenses increased by 72.8% to 390 million. The increase was primarily due to an increase in advertising expenses and promotional campaign related expenses, and an increase in commission expenses in relation to channel service fees. Non-GAAP selling and marketing expenses as a percentage of total revenues increased to 8.3% from 6.1%. And administrative expenses decreased by 14.1% to RMB6 million non-GAAP G&A expenses increased by 2.2% to RMB59 million primarily due to an increase in personnel costs. Non- GAAP G&A expenses as a percentage of total revenues decrease to 1.3% from 1.6%. Technology and content expenses increased by 9.6% to RMB55 million. Non-GAAP technology and content expenses increased by 16.5% to RMB53 million. The increase was primarily due to an increase in personnel costs. Non-GAAP technology and content expenses as a percentage of total revenues decreased to 1.1% from 1.2%. As a result, our non-GAAP operating income was RMB110 million in the first quarter of 2025, representing an increase of 39.5% year over year. Non-GAAP operating profit margin was 2.4% compared to 2.2% in the first quarter of 2024. During the first quarter of 2025, we repurchased a total of approximately 0.4 million ADS for approximately USD1.2 million and our current share repurchase program, which authorizes us to repurchase up to USD50 million worth of our shares including ADSs through June 27, 2025. As of March 31, 2025, we had repurchased a total of approximately 10.7 million ADSs for approximately USD27.1 million under this share repurchase. As of March 30, 2025, cash and cash equivalents restricted cash, short-term investment, and funds receivable from third party payment service providers totaled RMB2.78 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns. Now turning to business outlook for the second quarter of 2025, we anticipate total revenues to be between RMB4710 million and RMB4801 million. Representing a year over year increase of 24.7% to 27.4%. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions which are subject to change. This concludes our prepared remarks, operator, we are now ready to take questions. Operator We will now begin the question-and-answer session. (Operator Instructions) Joyce Ju, Bank of America. Joyce Ju (spoken in foreign language) Thanks, management, for taking my questions and congrats for achieving a strong quarter. My first question is on the national subsidy. How effective has the national subsidy been in promoting recycling and trading programs? Do you see the same growth momentum in your secondhand recycling and resale business as a result? Secondly, in the first quarter, we see that both revenue and non-GAAP operating margins showed strong performance. Could you please help to explain the increase in the non-GAAP fulfillment margin and self-marketing margin? Is there any adjustment to this year's total revenue and margins target? Thank you. Xuefeng Chen (interpreted) Thank you for the questions. I will take the first and Rex will take the second. Regarding your first question, according to industry research, the shipment of new smartphones in the domestic market increased by 9% year by year in the first quarter, marking positive growth for the fifth consecutive quarter. Meanwhile, new consumer electronic sales on our partner platform has strong growth momentum. The subsidies for trade-in programs combined with our strong positioning in key recycling channels have jointly driven the accelerated growth of our one business. We have previously shared the view that the national subsidies will definitely boost the mobile phone recycling business. That's why industry leading brand awareness, fulfillment capabilities, and unique advantages in essential application scenarios in recycling. AHS recycle is well positioned to benefit from the increasing adoption of recycling in mainstream channels. Currently, the national subsidy cap for mobile phone trade-in is RMB500. However, our average recycling price in one business is approximately RMB1500. This creates a stronger incentive for users to not only take up the national subsidy but also leverage the trade-in service as of AHS recycle. Looking ahead to the medium to long term, we remain confident in China's strong and consistent commitment to stimulating consumption. In our total transaction volume for pre-owned consumer electronics, mobile phones are the largest category, accounting for approximately 70%. The average replacement cycle for phones is about two years, and there are approximately 300 million new phones and 10million of new laptops and digital devices being shipped annually in China. Currently, the penetration rate for recycling and trading program remains in single digits, but in the long run, we believe there is potential for domestic penetration to raise to over 20%. The main brands and e-commerce platforms we've collaborated with are participating in national subsidy programs with more flexible pricing strategies. Therefore, during the June 18 shopping festival this year, we expect to maintain business growth through trade in services and are committed to strengthening our delivery capabilities to better serve users in recycling and trading. Chen Chen (interpreted) Regarding the second question, the year-on-year improvement of non-GAAP operating profit margin in the first quarter was mainly due to our pricing strategy and balanced control of the overall expense ratio. As Kerry noted in the first quarter of 2024, Apple's official trading program and our overseas business reported high revenue and losses. However, in the first quarter of 2025, as we optimize business and pricing strategies, the profit margin of the two businesses has significantly improved. Meanwhile, by leveraging our supply chain strengths, the proportion of 1P2C retail revenue increased by 8% year over year. During the same period, as our 1P business expanded rapidly, we strategically focused on self-operated stores and increased staff in fulfillment and operation functions. Thus, the non-gap fulfillment expense ratio rose by 0.9% year over year. The non-GAAP selling expenses ratio has increased by 2.2%, mainly due to higher promotion and advertising expenses. With rising business demands, we increased coupon-related promotion expenses this quarter. Meanwhile, to raise brand awareness, we made investments aligned with business growth, such as a new media platform of AHS recycle brand. Additionally, in strengthening recycling and trading collaboration with channel commissions rose as it's expected. Benefiting from our refined management of general and administrative expenses as well as technology and content expenses, both non-GAAP expenses ratios decrease in the first quarter. As a result, the non-gap operating profit margin for the first quarter increased by 0.2% year over year. Looking at the full year of 2025, we remain committed to our goal of accelerating total revenue growth. We will continue to strengthen our fulfillment capacity and brand influence to support growth in trade in volumes driven by national subsidy programs and maintain competitive pricing strategy. In the future, we aim to gradually improve our non-gap operating profit margin, reflecting our effective operating leverage. Operator [Xiao Wang], CICC. (spoken in foreign language) Thank you for taking my question. As you mentioned earlier, your goal is to accelerate store openings this year with a target of 9 out of 800 HS recycled stores. Can you share details on the progress of store opening in the first quarter? Thank you. Xuefeng Chen (interpreted) As of March 30, 2025, there were a total of 1,886 NHS recycled stores nationwide, including 917 self-operated stores and 969 joint operated stores. The total number of stores has increased by a net of 458 compared to the same period last year. Compared to the end of 2024, in certain areas of three high tier cities, we transitioned some of our joint operated stores to a self-operated model to effectively handle the incremental trading volumes from national subsidies and improve user satisfaction. This change allows us to leverage the more efficient self-management, a self-managed operational capabilities to quickly boost the recycling performance of these stores. Over the same period, our two door fulfillment team expanded by 360 people year over year to 1,000 people, strengthening our fulfillment capabilities in more markets. We are increasing the proportion of face-to-face services by extending both in-store and two-door services. In our NPS service, users are much more satisfied with those, with these two face to face offline services featuring instant confirmation than with logistics-based pickup. We will continue to enhance our offline fulfillment capabilities to provide the best in class trade-in experience. Thank you for the question. Operator Michael Kim, Zacks Small Cap Research. Michael Kim Great, good morning and good evening, everyone. Just one question from me, just in terms of your initiatives to enhance the AHS recycle brand, can you discuss how much traction you've seen as a result of your increased focus on marketing and advertising and then just related to that. How should we be thinking about incremental expenses or customer acquisition costs as you continue to prioritize improving brand awareness and loyalty. Thanks. Xuefeng Chen Okay, thank you for your question. (interpreted) AHS Recycle has solidified its position as a leading brand in recycling by providing best of fulfillment services. We believe that high quality services and proactive response to user feedback are the cornerstones of brand reputation. Given the current low penetration rate of recycling services, we have strategically employed well planned new media campaigns to promote our services and enhance brand awareness. On the one hand, we introduce engaging content, showcasing our recycling services, emphasizing AHS recycles competitive pricing, security, and convenience. On the other hand, by leveraging geo targeting, we guide users to nearby AHS recycled stores, driving orders through our mini program, official website, and AHS stores. Furthermore, we enhance the new media presence of our joint operated stores by co-creating content that resonates with local users, thereby attracting more customers to the stores. As a result, in the first quarter, the product revenue from AHS mini program and official websites grew faster than our overall 1P business. The national subsidy has also played a role in increasing user awareness and adoption of our services. Looking ahead, we will continue to strengthen the AHS recycle brand and refine our industry leading recycling service offerings to capture greater market share and reinforce user perception. Michael Kim Okay, thank you. Operator As there are no further questions at this time, I'd like to turn the conference back to management for closing remarks. Jeremy Ji Thank you. Thank you again for joining us. A reply with today's call will be available on our website shortly, followed by a transcript ready. If you have any additional questions, please feel free to email us at ir@ Have a good day. Operator The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Automotive
- Yahoo
Zeekr Group Reports First Quarter 2025 Unaudited Financial Results
HANGZHOU, China, May 15, 2025 /PRNewswire/ -- ZEEKR Intelligent Technology Holding Limited ("Zeekr Group" or the "Company") (NYSE: ZK), the world's leading premium new energy vehicle group, today announced its unaudited financial results for the first quarter ended March 31, 2025[1]. Operating Highlights for the First Quarter of 2025 Total vehicle deliveries were 114,011 units for the first quarter of 2025, representing a 21.1% year-over-year increase. The Zeekr brand delivered 41,403 vehicles, an increase of 25.2% year-over-year. Meanwhile, the Lynk & Co brand delivered 72,608 vehicles, recording growth of 18.9% year-over-year, with 52.4% of deliveries coming from NEV models. Deliveries2025 Q12024 Q42024 Q32024 Q2 114,011169,088124,606119,755Deliveries2024 Q12023 Q42023 Q32023 Q2 94,115120,11494,15172,276 Financial Highlights for the First Quarter of 2025 Vehicle sales were RMB19,096 million (US$2,631 million)[2] for the first quarter of 2025, representing an increase of 16.1% from the first quarter of 2024 and a decrease of 38.4% from the fourth quarter of 2024. Vehicle margin[3] was 16.5% for the first quarter of 2025, compared with 13.1% for the first quarter of 2024 and 14.3% for the fourth quarter of 2024. Total revenues were RMB22,019 million (US$3,034 million) for the first quarter of 2025, representing an increase of 1.1% from the first quarter of 2024 and a decrease of 37.8% from the fourth quarter of 2024. Gross profit was RMB4,213 million (US$580 million) for the first quarter of 2025, representing an increase of 18.8% from the first quarter of 2024 and a decrease of 33.8% from the fourth quarter of 2024. Gross margin was 19.1% for the first quarter of 2025, compared with 16.3% for the first quarter of 2024 and 18.0% for the fourth quarter of 2024. Loss from operations was RMB1,259 million (US$174 million) for the first quarter of 2025, representing a decrease of 25.7% from the first quarter of 2024 and an increase of 16.3% from the fourth quarter of 2024. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP)[4] was RMB1,136 million (US$157 million) for the first quarter of 2025, representing a decrease of 32.8% from the first quarter of 2024 and an increase of 14.3% from the fourth quarter of 2024. Net loss was RMB763 million (US$105 million) for the first quarter of 2025, representing a decrease of 60.2% from the first quarter of 2024 and an increase of 21.3% from the fourth quarter of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB640 million (US$88 million) for the first quarter of 2025, representing a decrease of 66.5% from the first quarter of 2024 and an increase of 18.5% from the fourth quarter of 2024. [1] All disclosed data (including historical periods) are recast to reflect common-control accounting treatment related to Lynk & Co's acquisition. [2] All conversions from Renminbi("RMB") to U.S. dollars ("US$") are made at an exchange rate of RMB7.2567 to US$1.00, set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 2025. [3] Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of revenues derived from vehicle sales only. [4] The Company's non-GAAP financial measures exclude share-based compensation expenses. See "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement. Key Financial Results for the First Quarter of 2025 (in RMB millions, except for percentages)2025 Q1 2024 Q4 2024 Q1 % Change i YoY QoQ Vehicle sales 19,096 31,015 16,450 16.1 % (38.4) % - Zeekr 9,987 19,302 8,174 22.2 % (48.3) % - Lynk & Co 9,109 11,713 8,276 10.1 % (22.2) % Vehicle margin 16.5 % 14.3 % 13.1 % 3.4pts 2.2pts - Zeekr 21.2 % 17.3 % 14.4 % 6.8pts 3.9pts - Lynk & Co 11.4 % 9.3 % 11.8 % (0.4)pts 2.1pts Total revenues 22,019 35,377 21,781 1.1 % (37.8) % Gross profit 4,213 6,365 3,545 18.8 % (33.8) % Gross margin 19.1 % 18.0 % 16.3 % 2.8pts 1.1pts Loss from operations (1,259) (1,083) (1,694) (25.7) % 16.3 % Non-GAAP loss from operations (1,136) (994) (1,691) (32.8) % 14.3 % Net loss (763) (629) (1,915) (60.2) % 21.3 % Non-GAAP net loss (640) (540) (1,912) (66.5) % 18.5 % i Except for vehicle margin and gross margin, absolute changes instead of percentage changes are presented. Recent Developments Delivery Update In April, Zeekr Group delivered a total of 41,316 vehicles across its Zeekr and Lynk & Co brands, marking a 1.5% increase compared to the previous month. This achievement was made possible by the trust and support of over 1.9 million users. Specifically, the Zeekr brand delivered 13,727 vehicles, while Lynk & Co brand delivered 27,589 vehicles. New Model Launches The Zeekr 7GT, the brand's second shooting brake, was launched in China on April 15, 2025. Equipped with advanced silicon carbide-powered e-motors, the vehicle achieves 0-100 km/h acceleration in merely 2.95 seconds under rolling start conditions. Exceptional performance and world-class safety features position the Zeekr 7GT for a strong showing in global markets. Zeekr Group also unveiled its flagship luxury SUV, the Zeekr 9X, at the Shanghai Auto Show. As the first hybrid model under the Zeekr brand, the Zeekr 9X sets new benchmarks in design, performance, and electrification, marking a major leap forward for the brand. This groundbreaking model is slated for a global launch in the third quarter of 2025. On April 28, the Lynk & Co brand commenced deliveries of the Lynk & Co 900, a large six-seater family SUV. Built on the powerful SPA Evo platform, the top-tier variant is equipped with the G-Pilot H7 package, featuring NVIDIA's DRIVE AGX Thor computing platform with an industry-leading 700 TOPS of processing power. With its expansive interior, cutting-edge technology, and thrilling performance, the model has already garnered over 40,000 pre-orders since its debut in December. CEO and CFO Comments "We achieved a major milestone during the first quarter with the full integration of Zeekr and Lynk & Co, which expanded our global user base to over 1.9 million," said Mr. Andy An, Zeekr Group's Chief Executive Officer. "The two brands' initial technological consolidation has already boosted profitability through optimized R&D and shared platforms. As we accelerate into our next growth phase, we will continue to redefine premium mobility through technology-driven experiences and luxury service, strengthening our position as the world's leading premium new energy vehicle group." Mr. Jing Yuan, Zeekr Group's Chief Financial Officer, added, "In the first quarter of 2025, enhanced platform synergies and disciplined supply chain management drove record profitability, with our overall vehicle margin reaching 16.5% and the Zeekr brand's margin rising to an unprecedented 21.2%. Looking ahead, we will remain laser-focused on deepening resource integration and unlocking greater synergistic value to deliver enhanced returns for our shareholders and build enduring value." Financial Results for the First Quarter of 2025 Revenues Total revenues were RMB22,019 million (US$3,034 million) for the first quarter of 2025, representing an increase of 1.1% from RMB21,781 million for the first quarter of 2024 and a decrease of 37.8% from RMB35,377 million for the fourth quarter of 2024. Revenues from vehicle sales were RMB19,096 million (US$2,631 million) for the first quarter of 2025, representing an increase of 16.1% from RMB16,450 million for the first quarter of 2024, and a decrease of 38.4% from RMB31,015 million for the fourth quarter of 2024. The year-over-year increase was attributable to the increase in new model delivery volume, partially offset by the lower average selling price due to changes in product mix and pricing strategy between the two quarters. The quarter-over-quarter decrease was mainly attributable to a decrease in delivery volume, which was affected by seasonal factors. Revenues from other sales and services were RMB2,923 million (US$403 million) for the first quarter of 2025, representing a decrease of 45.2% from RMB5,331 million for the first quarter of 2024 and a decrease of 33.0% from RMB4,362 million for the fourth quarter of 2024. The year-over-year decrease was mainly due to the decreased sales volume and unit price of battery packs and electric drives. The quarter-over-quarter decrease was mainly due to a decrease in sales of R&D services to our related parties and reduced OEM production volumes at Lynk & Co's manufacturing facilities in the first quarter of 2025. Cost of Revenues and Gross Margin Cost of revenues was RMB17,806 million (US$2,454 million) for the first quarter of 2025, representing a decrease of 2.4% from RMB18,236 million for the first quarter of 2024 and a decrease of 38.6% from RMB29,012 million for the fourth quarter of 2024. The slight year-over-year decrease was primarily attributable to the ongoing vehicle cost-saving initiatives, partially offset by increased vehicle deliveries, as well as reductions stemming from lower sales of battery packs and other components. The quarter-over-quarter decrease was mainly due to the reduced vehicle delivery volume combined with sustained vehicle cost-saving initiatives. Gross profit was RMB4,213 million (US$580 million) for the first quarter of 2025, representing an increase of 18.8% from RMB3,545 million for the first quarter of 2024 and a decrease of 33.8% from RMB6,365 million for the fourth quarter of 2024. Gross margin was 19.1% for the first quarter of 2025, compared with 16.3% for the first quarter of 2024 and 18.0% for the fourth quarter of 2024. Vehicle margin was 16.5% for the first quarter of 2025, compared with 13.1% for the first quarter of 2024 and 14.3% for the fourth quarter of 2024. The year-over-year and quarter-over-quarter increases were primarily attributed to sustained cost-saving initiatives, partly offset by the lower average selling price of vehicles. Operating Expenses Research and development expenses were RMB2,908 million (US$401 million) for the first quarter of 2025, representing an increase of 25.0% from RMB2,326 million for the first quarter of 2024 and a decrease of 25.6% from RMB3,910 million for the fourth quarter of 2024. The year-over-year increase was mainly attributable to incremental costs associated with the development of our new vehicle platform. The quarter-over-quarter decrease was mainly driven by accelerated progressing of R&D projects in Q4 2024 to align with the 2025 product launch timelines. Selling, general and administrative expenses were RMB2,645 million (US$364 million) for the first quarter of 2025, representing a decrease of 9.2% from RMB2,913 million for the first quarter of 2024 and a decrease of 35.8% from RMB4,123 million for the fourth quarter of 2024. The year-over-year and quarter-over-quarter decreases were mainly attributable to higher marketing and advertising expenses to support new vehicle model launches in Q1 2024 and Q4 2024, as well as stringent cost discipline implemented under the Company's 2025 efficiency enhancement program. Loss from Operations Loss from operations was RMB1,259 million (US$174 million) for the first quarter of 2025, representing a decrease of 25.7% from RMB1,694 million for the first quarter of 2024 and an increase of 16.3% from RMB1,083 million for the fourth quarter of 2024. Non-GAAP loss from operations, which excludes share-based compensation expenses from loss from operations, was RMB1,136 million (US$157 million) for the first quarter of 2025, representing a decrease of 32.8% from RMB1,691 million for the first quarter of 2024 and an increase of 14.3% from RMB994 million for the fourth quarter of 2024. Net Loss and Net Loss Per Share Net loss was RMB763 million (US$105 million) for the first quarter of 2025, representing a decrease of 60.2% from RMB1,915 million for the first quarter of 2024 and an increase of 21.3% from RMB629 million for the fourth quarter of 2024. Non-GAAP net loss, which excludes share-based compensation expenses from net loss, was RMB640 million (US$88 million) for the first quarter of 2025, representing a decrease of 66.5% from RMB1,912 million for the first quarter of 2024 and an increase of 18.5% from RMB540 million for the fourth quarter of 2024. Net loss attributable to ordinary shareholders of Zeekr Group was RMB718 million (US$99 million) for the first quarter of 2025, representing a decrease of 63.8% from RMB1,982 million for the first quarter of 2024 and a decrease of 18.1% from RMB877 million for the fourth quarter of 2024. Non-GAAP net loss attributable to ordinary shareholders of Zeekr Group, which excludes share-based compensation expenses from net loss attributable to ordinary shareholders, was RMB595 million (US$82 million) for the first quarter of 2025, representing a decrease of 69.9% from RMB1,979 million for the first quarter of 2024 and a decrease of 24.5% from RMB788 million for the fourth quarter of 2024. Basic and diluted net loss per share attributed to ordinary shareholders were both RMB0.28 (US$0.04) for the first quarter of 2025, compared with RMB0.99 each for the first quarter of 2024 and RMB0.34 each for the fourth quarter of 2024. Non-GAAP basic and diluted net loss per share attributed to ordinary shareholders were both RMB0.23 (US$0.03) for the first quarter of 2025, compared with RMB0.99 each for the first quarter of 2024 and RMB0.31 each for the fourth quarter of 2024. Basic and diluted net loss per American Depositary Share ("ADS[5]") attributed to ordinary shareholders were both RMB2.81 (US$0.39) for the first quarter of 2025, compared with RMB3.44 each for the fourth quarter of 2024. Non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders were both RMB2.33 (US$0.32) for the first quarter of 2025, compared with RMB3.09 each for the fourth quarter of 2024. [5] Each ADS represents ten ordinary shares. Balance Sheets Cash and cash equivalents and restricted cash was RMB9,898 million (US$1,364 million) as of March 31, 2025. Conference Call The Company's management will host an earnings conference call on Thursday, May 15, 2025, at 8:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day). All participants who wish to join the call are requested to complete the online registration using the link provided below. After registration, each participant will receive by email a set of dial-in numbers, a passcode and a unique access PIN to join the conference call. Participants may pre-register at any time, including up to and after the call start time. Participant Online Registration: A live webcast of the conference call will be available on the Company's investor relations website at About Zeekr Group Zeekr Group, headquartered in Zhejiang, China, is the world's leading premium new energy vehicle group from Geely Holding Group. With two brands, Lynk & Co and Zeekr, Zeekr Group aims to create a fully integrated user ecosystem with innovation as a standard. Utilizing its state-of-the-art facilities and world-class expertise, Zeekr Group is developing its own software systems, e-powertrain, and electric vehicle supply chain. Zeekr Group's values are equality, diversity, and sustainability. Its ambition is to become a true global new energy mobility solution provider. For more information, please visit Non-GAAP Financial Measures The Company uses non-GAAP financial measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic and diluted net loss per ordinary share attributed to ordinary shareholders, non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company's operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and non-GAAP Results" set forth in this announcement. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.2567 to US$1.00, the exchange rate on March 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "future," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law. Investor Relations Contact In China:ZEEKR Intelligent Technology Holding LimitedInvestor RelationsEmail: ir@ Piacente Financial CommunicationsTel: +86-10-6508-0677Email: Zeekr@ In the United States:Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050Email: Zeekr@ Media Contact Email: Globalcomms@ ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in million)As ofDecember 31March 31March 31202420252025RMBRMBUS$ ASSETSCurrent assets:Cash and cash equivalents 9,8977,4961,033 Restricted cash 1,4912,402331 Notes receivable 12,2685,370740 Accounts receivable 2,3442,447337 Inventories 10,38810,2551,413 Amounts due from related parties 9,8219,7371,342 Prepayments and other current assets 4,6546,319871 Total current assets 50,86344,0266,067 Property, plant and equipment, net 10,98410,6531,468 Intangible assets, net 1,3461,380190 Land use rights, net 50650369 Operating lease right-of-use assets 3,0082,852393 Deferred tax assets 34034948 Long-term investments 688816112 Other non-current assets 47753274 Total non-current assets 17,34917,0852,354 TOTAL ASSETS 68,21261,1118,421 ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in million)As ofDecember 31March 31March 31202420252025RMBRMBUS$ LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Short-term borrowings 1,3539,4261,299 Accounts payable 15,89915,3522,116 Notes payable and others 23,39118,4682,545 Amounts due to related parties 19,09917,9342,471 Income tax payable 9816222 Accruals and other current liabilities 15,45513,0841,803 Total current liabilities 75,29574,42610,256 Long-term borrowings 2,7276,553903 Operating lease liabilities, non-current 2,1372,333321 Other non-current liabilities 2,1912,712374 Deferred tax liability 57588 Total non-current liabilities 7,11211,6561,606 TOTAL LIABILITIES 82,40786,08211,862 SHAREHOLDERS' EQUITYOrdinary shares 33- Paid-in capital in combined companies 7,669-- Additional paid-in capital 15,76310,5131,450 Treasury Stock (187)(187)(26) Accumulated deficits (38,894)(33,953)(4,679) Accumulated other comprehensive income (142)(41)(6) Total Zeekr Group shareholders' deficit (15,788)(23,665)(3,261) Non-controlling interest 1,593(1,306)(180) TOTAL SHAREHOLDERS' DEFICIT (14,195)(24,971)(3,441) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 68,21261,1118,421 ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (Amounts in million, except share/ADS and per share/ADS data and otherwise noted)Three Months EndedMarch 31December 31March 31March 312024202420252025RMBRMBRMBUS$ Revenues:Vehicle sales 16,45031,01519,0962,631 Other sales and services 5,3314,3622,923403 Total revenues 21,78135,37722,0193,034 Cost of revenues:Vehicle sales (14,297)(26,583)(15,948)(2,198) Other sales and services (3,939)(2,429)(1,858)(256) Total cost of revenues (18,236)(29,012)(17,806)(2,454) Gross profit 3,5456,3654,213580 Operating expenses:Research and development expenses (2,326)(3,910)(2,908)(401) Selling, general and administrative expenses (2,913)(4,123)(2,645)(364) Other operating income, net 05858111 Total operating expenses (5,239)(7,448)(5,472)(754) Loss from operations (1,694)(1,083)(1,259)(174) Interest expense (148)(187)(116)(16) Interest income 78159456 Investment income 072700 Other income/(expense), net (140)(189)59382 Loss before income tax expense and share of losses in equity method investments (1,904)(573)(737)(102) Share of income/(loss) in equity method investments 91(134)12818 Income tax benefit/(expense) (102)78(154)(21) Net loss (1,915)(629)(763)(105) Less: income/(loss) attributable to non- controlling interest 67248(45)(6) Net loss attributable to shareholders of Zeekr Group (1,982)(877)(718)(99) ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (CONTINUED) (Amounts in million, except share/ADS and per share/ADS data and otherwise noted) Three Months EndedMarch 31December 31March 31March 312024202420252025RMBRMBRMBUS$ Net loss per share attributed to ordinary shareholders:Basic and diluted (0.99)(0.34)(0.28)(0.04) Weighted average shares used in calculating net loss per share:Basic and diluted 2,000,000,0002,552,901,6682,552,901,6682,552,901,668 Net loss per ADS attributed to ordinary shareholders:Basic and diluted -(3.44)(2.81)(0.39) Weighted average ADS used in calculating net loss per ADS:Basic and diluted -255,290,167255,290,167255,290,167 Net loss (1,915)(629)(763)(105) Other comprehensive income/(loss), net of tax of nil:Foreign currency translation adjustments 138(41)193 Comprehensive loss (1,777)(670)(744)(102) Less: comprehensive income/(loss) attributable to non-controlling interest 156226(68)(9) Comprehensive loss attributable to shareholders of Zeekr Group (1,933)(896)(676)(93) ZEEKR INC. UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amounts in million, except share/ADS and per share/ADS data and otherwise noted)Three Months EndedMarch 31December 31March 31March 312024202420252025RMBRMBRMBUS$ Loss from operations (1,694)(1,083)(1,259)(174) Share-based compensation expenses 38912317 Non-GAAP loss from operations (1,691)(994)(1,136)(157) Net loss (1,915)(629)(763)(105) Share-based compensation expenses 38912317 Non-GAAP net loss (1,912)(540)(640)(88) Net loss attributable to ordinary shareholders (1,982)(877)(718)(99) Share-based compensation expenses 38912317 Non-GAAP net loss attributable to ordinary shareholders of Zeekr Group (1,979)(788)(595)(82) Weighted average number of ordinary shares used in calculating Non-GAAP net loss per shareBasic and diluted 2,000,000,0002,552,901,6682,552,901,6682,552,901,668 Non-GAAP net loss per ordinary share attributed to ordinary shareholdersBasic and diluted (0.99)(0.31)(0.23)(0.03) Weighted average number of ADS used in calculating Non-GAAP net loss per ADSBasic and diluted -255,290,167255,290,167255,290,167 Non-GAAP net loss per ADS attributed to ordinary shareholdersBasic and diluted -(3.09)(2.33)(0.32) View original content: SOURCE ZEEKR Intelligent Technology Holding Limited
