Zeekr Group published on Thursday its first quarter earnings results posting a 1.1% revenue increase to 22 billion yuan ($3.05 billion) while narrowing net losses by 60%.
Since the final quarter of last year, the group’s earnings now combine financial results from both the Zeekr and Lynk&Co brands. The merging process was finalized in February.
Its main brand’s revenue in the first quarter was 14,737 million yuan ($2.04 billion), while the group reported a revenue total of $3.02 billion (21.781 billion yuan) revenue — including Lynk&Co.
The company, backed by China’s Geely Holding Group, reported a gross margin of 19.1% — up from 16.3% a year earlier and an increase from the 18% in the last quarter.
Gross profit was up 18.8% year over year to 4.21 million yuan ($580 million) — down 33.8% from the last quarter.
Vehicle sales represented 19.1 million yuan ($2.63 million) between January and March, also up 16.1% from a year ago. The figures marked a 38.4% decline from the fourth quarter of 2024.
The vehicle margin was 16.5% for the first quarter, compared with 13.1% in the previous one and 14.3% in the fourth quarter. In the first quarter, Zeekr brand delivered 41,403 vehicles, while Lynk&Co delivered 72,608 units.
Zeekr reported a 60.2% narrower net loss of 763 million yuan ($105 million) when compared to the same period a year earlier.
Jing Yuan, the group’s chief financial officer (CFO), said in a statement on Thursday that “enhanced platform synergies” between both brands and “disciplined supply chain management drove record profitability.”
Zeekr Group’s chief executive Andy An mentioned that the group has expanded its “global user base to over 1.9 million” and that “technological consolidation has already boosted profitability through optimized R&D and shared platforms” for the two brands.
Last week, Geely Group — which controls about 65.7% of Zeekr — announced its intent to acquire all the remaining public shares in the brand, with an intent to merge the two companies.
The company called for synergies in “innovative architecture, hardware, software and connected technologies” as competition in the new energy vehicle market continues to become fiercer.
The group aims to deliver 710,000 vehicles in 2025, a 40% increase from the previous year. Zeekr brand is targeting 320,000 units. In the first four months of the year, the Group reached 21.9% of its annual target with 155,327 units delivered.
Earlier on Thursday, the group announced the delivery of the 10,000th Zeekr 007 GT. The shooting brake model, launched in China on April 15, has not yet been given an international release date.
However, it will be marketed overseas under the name Zeekr 7 GT.
