What kind of services does Zeekr provide other than vehicle sales?
Company vehicle sales company generates revenue from sales of vehicles together with a number of embedded products and services. The series of contracts and documents in relation to vehicle sales may, depending on the specific type of vehicle being sold and the time of the order, include terms and conditions for the sale of the vehicle, the sale of charging piles, the provision of vehicle lifetime internet connectivity, lifetime roadside assistance, extended lifetime warranty, and lifetime free charging. For these arrangements, company generally determines standalone selling prices for each individual distinct performance obligation identified based on the prices charged to customers. Alternatively, if no corresponding service is provided to customers separately, company uses a cost plus margin approach to determine the estimated standalone selling price for each individual distinct performance obligation identified, considering company's pricing policies and practices, and the data utilized in making pricing decisions. The overall contract price is allocated to each distinct performance obligation based on the relative estimated standalone selling price in accordance with ASC 606. As for lifetime free charging and extended lifetime warranty, revenue is recognized over time based on a straight-line method over the estimated benefit period the customer enjoys, which is determined based on the useful life of the vehicles as company has a stand-ready obligation to deliver such services to the customer. The standard warranty provided by company is accounted for in accordance with ASC 460, Guarantees, and the estimated costs are recorded as a liability when company transfers the control of the vehicle to a user. The company's after-sales services comprise a suite of lifetime caretaking packages for customers that cover the entire product lifecycle, such as quality assurance, roadside assistance, 5G data packages, and recharge services. • Warranty policies. Currently, the company's warranty for its BEV models provides (i) a six-year or 150,000 kilometer, whichever is earlier, limited warranty for BEVs owned by the first owner for non-business use, (ii) a four-year or 100,000 kilometer, whichever is earlier, limited warranty for BEVs owned by subsequent owners for non-business use, (iii) a one-year or 100,000 kilometer, whichever is earlier, limited warranty for BEVs for business use, (iv) a lifetime warranty for battery packs, electric drive systems, and high and low voltage charging system assemblies for BEVs owned by the first owner for non-business use, and (v) an eight-year or 200,000 kilometer, whichever is earlier, limited warranty for battery packs, electric drive systems, and high and low voltage charging system assemblies for BEVs owned by subsequent owners or for business use. • Customer Care. Customer Care is the company's customer support initiative. It uses intelligent solutions to remotely monitor vehicle conditions and diagnose potential technical issues. If a vehicle malfunctions, drivers may request immediate roadside assistance online and the 24/7 user companion through the company's nationwide service network. Customer Care covered 208 cities in 31 provinces across China as of December 31, 2023. In 2023, Customer Care had performed approximately 4,800 instances of accident assistance. • Other customer services. The company's after-sales services comprise a suite of lifetime caretaking packages for customers that cover the entire product lifecycle, such as quality assurance, roadside assistance, 5G data packages, and recharge services. • Warranty policies. Currently, the company's warranty for ZEEKR 001 provides (i) a four-year or 100,000-kilometer limited warranty for battery electric vehicles (BEVs) for non-business use, (ii) a one-year or 100,000-kilometer limited warranty for BEVs for business use, and (iii) an eight-year or 200,000-kilometer limited warranty for battery packs, electric drive systems, and system assembly—high and low voltage charging. Currently, the company's warranty for ZEEKR 009 provides (i) a six-year or 150,000-kilometer limited warranty for BEVs owned by the first owner for non-business use, (ii) a one-year or 100,000-kilometer limited warranty for BEVs for business use, and (iii) a lifetime warranty for battery packs, electric motors, and electric motor controllers for BEVs owned by the first owner for non-business use. • ZEEKR Care. ZEEKR Care is the company's customer support initiative. It uses intelligent solutions to remotely monitor the vehicle conditions and diagnose potential technical issues. If the vehicle malfunctions, drivers may request immediate roadside assistance online and the 24/7 user companion through the company's nationwide service network. ZEEKR Care covered 208 cities in 31 provinces across China as of June 30, 2023. In the six months ended June 30, 2023, ZEEKR Care had performed approximately 2,000 instances of accident assistance. • Other customer services. The company also provides a suite of customer services that are brought to customers' homes, such as doorstep maintenance, through the “Carefree Packages.” In addition, Power began to offer “Power Delivery” services since the fourth quarter of 2021. Upon request, the company drives customers’ BEVs to nearby charging stations and brings them back to customers’ designated places when the charging is finished. As of December 31, 2023, Power Delivery services had covered 44 cities in China. The company offers a variety of value-added services to serve and engage its customers. For instance, the company plans to offer short to long-term vehicle subscriptions to attract users to drive its BEVs. The company also offers certification services for users’ pre-owned vehicles in connection with their vehicle trade-ins. The company provides a variety of products relating to mobility life that it sells through its online community. The company collaborates with Genius Auto Finance, a vehicle financing solution provider under Geely Auto, as well as a number of commercial banks, such as China Construction Bank, Industrial Bank, Bank of China, and Industrial and Commercial Bank of China, which have quality service capabilities, to facilitate auto finance for its customers. The company does not charge any financing service fees and is not obligated to facilitate any financing, and the company does not bear credit risk for such financing. Prior to delivery, the company will open the application portal on the APP or at Delivery Centers, through which customers can submit loan applications. The company's customers may make repayments directly to financial institutions. The company also provides a suite of customer services that are brought to customers' homes, such as doorstep maintenance, through the “Carefree Packages.” In addition, the company began to offer “Power Delivery” services since the fourth quarter of 2021. Upon request, the company drives customers’ BEVs to nearby charging stations and brings them back to customers’ designated places when the charging is finished. As of December 31, 2023, Power Delivery services had covered 44 cities in China. The company offers a variety of value-added services to serve and engage its customers. For instance, the company plans to offer short to long-term vehicle subscriptions to attract users to drive its BEVs. The company also offers certification services for users’ pre-owned vehicles in connection with their vehicle trade-ins. The company provides a variety of products relating to mobility life that it sells through its online community. The company collaborates with Genius Auto Finance, a vehicle financing solution provider under Geely Auto, as well as a number of commercial banks, such as China Construction Bank, Industrial Bank, Bank of China, and Industrial and Commercial Bank of China, with quality service capabilities, to facilitate auto finance for its customers. The company does not charge any financing service fees and is not obligated to facilitate any financing, and the company does not bear credit risk for such financing. Prior to delivery, the company will open the application portal on the company APP or at the company Delivery Centers, through which customers can submit loan applications. The company's customers may make repayments directly to financial institutions. The company also provides a suite of customer services that are brought to customers' homes, such as doorstep maintenance, through the company's “Carefree Packages.” In addition, the company began to offer “Power Delivery” services since the fourth quarter of 2021. Upon request, the company drives customers’ BEVs to nearby charging stations and brings them back to customers’ designated places when the charging is finished. As of December 31, 2023, Power Delivery services had covered 44 cities in China. The company offers a variety of value-added services to serve and engage its customers. For instance, the company plans to offer short to long-term vehicle subscriptions to attract users to drive its BEVs. The company also offers certification services for users’ pre-owned vehicles in connection with their vehicle trade-ins. The company provides a variety of products relating to mobility life that it sells through its online community. The company collaborates with Genius Auto Finance, a vehicle financing solution provider under Geely Auto, as well as a number of commercial banks, such as China Construction Bank, Industrial Bank, Bank of China, and Industrial and Commercial Bank of China, which have quality service capabilities, to facilitate auto finance for its customers. The company does not charge any financing service fees and is not obligated to facilitate any financing, and the company does not bear credit risk for such financing. Prior to delivery, the company will open the application portal on the APP or at Delivery Centers, through which customers can submit loan applications. The company's customers may make repayments directly to financial institutions. The company also provides a suite of customer services that are brought to customers' homes, such as doorstep maintenance, through the “Carefree Packages.” In addition, Power Delivery services began to be offered since the fourth quarter of 2021. Upon request, the company drives customers’ BEVs to nearby charging stations and brings them back to customers’ designated places when the charging is finished. As of December 31, 2023, Power Delivery services had covered 44 cities in China. The company offers a variety of value-added services to serve and engage its customers. For instance, the company plans to offer short to long-term vehicle subscriptions to attract users to drive its battery electric vehicles (BEVs). The company also offers certification services for users’ pre-owned vehicles in connection with their vehicle trade-ins. The company provides a variety of products relating to mobility life that it sells through its online community. The company collaborates with Genius Auto Finance, a vehicle financing solution provider under Geely Auto, as well as a number of commercial banks, such as China Construction Bank, Industrial Bank, Bank of China, and Industrial and Commercial Bank of China, which have quality service capabilities, to facilitate auto finance for its customers. The company does not charge any financing service fees and is not obligated to facilitate any financing, and the company does not bear credit risk for such financing. Prior to delivery, the company will open the application portal on the APP or at Delivery Centers, through which customers can submit loan applications. The company's customers may make repayments directly to financial institutions. The company also provides a suite of customer services that are brought to customers' homes, such as doorstep maintenance, through the “Carefree Packages.” In addition, the company began to offer “Power Delivery” services since the fourth quarter of 2021. Upon request, the company drives customers’ BEVs to nearby charging stations and brings them back to customers’ designated places when the charging is finished. As of June 30, 2023, Power Delivery services had covered 44 cities in China. The company offers a variety of value-added services to serve and engage its customers. For instance, the company plans to offer short to long-term vehicle subscriptions to attract users to drive its battery electric vehicles (BEVs). The company also offers certification services for users’ pre-owned vehicles in connection with their vehicle trade-ins. The company provides a variety of products relating to mobility life that it sells through its online community. The company also collaborates with Genius Auto Finance, a vehicle financing solution provider under Geely Auto, as well as a number of commercial banks, such as China Construction Bank, Industrial Bank, Bank of China, and Industrial and Commercial Bank of China, with quality service capabilities, to facilitate auto finance for its customers. The company does not charge any financing service fees and is not obligated to facilitate any financing, and the company does not bear credit risk for such financing. Prior to delivery, the company will open the application portal on the APP or at Delivery Centers, through which customers can submit loan applications. The company's customers may make repayments directly to financial institutions. The company also provides a suite of customer services that are brought to customers' homes, such as doorstep maintenance, through the “Carefree Packages.” In addition, Power began to offer “Power Delivery” services since the fourth quarter of 2021. Upon request, the company drives customers’ BEVs to nearby charging stations and brings them back to customers’ designated places when the charging is finished. As of December 31, 2023, Power Delivery services had covered 44 cities in China. The company offers a variety of value-added services to serve and engage its customers. For instance, the company plans to offer short to long-term vehicle subscriptions to attract users to drive its battery electric vehicles (BEVs). The company also offers certification services for users’ pre-owned vehicles in connection with their vehicle trade-ins. The company provides a variety of products relating to mobility life that it sells through its online community. The company also collaborates with Genius Auto Finance, a vehicle financing solution provider under Geely Auto, as well as a number of commercial banks, such as China Construction Bank, Industrial Bank, Bank of China, and Industrial and Commercial Bank of China, which have quality service capabilities, to facilitate auto finance for its customers. The company does not charge any financing service fees and is not obligated to facilitate any financing, and the company does not bear credit risk for such financing. Prior to delivery, the company will open the application portal on the APP or at Delivery Centers, through which customers can submit loan applications. The company's customers may make repayments directly to financial institutions. The company also provides a suite of customer services that are brought to customers' homes, such as doorstep maintenance, through the company's “Carefree Packages.” In addition, the company's Power division began to offer “Power Delivery” services since the fourth quarter of 2021. Upon request, the company drives customers’ BEVs to nearby charging stations and brings them back to customers’ designated places when the charging is finished. As of June 30, 2023, Power Delivery services had covered 44 cities in China. The company offers a variety of value-added services to serve and engage its customers. For instance, the company plans to offer short to long-term vehicle subscriptions to attract users to drive its battery electric vehicles (BEVs). The company also offers certification services for users’ pre-owned vehicles in connection with their vehicle trade-ins. The company provides a variety of products relating to mobility life that it sells through its online community. The company collaborates with Genius Auto Finance, a vehicle financing solution provider under Geely Auto, as well as a number of commercial banks, such as China Construction Bank, Industrial Bank, Bank of China, and Industrial and Commercial Bank of China, with quality service capabilities, to facilitate auto finance for its customers. The company does not charge any financing service fees and is not obligated to facilitate any financing, and the company does not bear credit risk for such financing. Prior to delivery, the company will open the application portal on the company's app or at delivery centers, through which customers can submit loan applications. The company's customers may make repayments directly to financial institutions. The company's co-founder and CEO Conghui An has over 25 years’ experience in multiple executive management positions in Geely Group and accumulated profound industry insights and senior management experience with an excellent track record. In addition to the company, Mr. An has successfully established, developed, and operated both Geely and Lynk&Co, two well-established vehicle brands of Geely Group. The company is guided by its customer-oriented principle to provide customers with service and experience in every aspect of their journey with the company. The company adopts a customer-oriented DTC sales model with a focus on innovative and interactive engagement with its customers. The company has established extensive customer touchpoints including 15 Centers, 195 Spaces, 26 Delivery Centers, and 24 Houses as of December 31, 2022. In addition, the company closely interacts with customers through building an integrated online and offline customer community to provide a holistic experience that goes beyond the purchase of intelligent BEVs. Within the APP, customers can enjoy one-stop car purchase, charging solutions, financial services, roadside assistance, intelligent car control, online shopping of lifestyle products, social interaction, and seamless communication with the customer services team. The company also holds a variety of offline customer events to nurture a vibrant user community. The company's customer engagement efforts enable the company to better understand customer needs to be incorporated into future product design and continuously strengthen customer loyalty and stickiness. Within the company APP, customers can enjoy one-stop car purchase, charging solutions, financial services, roadside assistance, intelligent car control, online shopping of company lifestyle products, social interaction, and seamless communication with the customer services team. The company also holds a variety of offline customer events to nurture a vibrant user community. The company's customer engagement efforts enable it to better understand customer needs to be incorporated into future product design, and continuously strengthen customer loyalty and stickiness. Underpinned by the company's superior capability in supply chain and manufacturing planning and management, it is also able to offer a wide range of customized options in terms of vehicle designs and functionalities, which are highly appreciated by its customers. The company's revenue from vehicle sales amounted to RMB1,544.3 million and RMB19,671.2 million (US$2,852.1 million) in 2021 and 2022, respectively, with a gross profit margin of 1.8% and 4.7%, respectively. In addition to vehicle sales, the company generated revenues from research and development services, as well as other services and sales of batteries and other components. The company's total revenue amounted to RMB6,527.5 million and RMB31,899.4 million (US$4,625.0 million) in 2021 and 2022, respectively, with a gross profit margin of 15.9% and 7.7%, respectively. The company recorded a net loss of RMB4,514.3 million and RMB7,655.1 million (US$1,109.9 million) in 2021 and 2022, respectively. The company's customers try out the company's products and technologies, as well as a wide range of events in the company's Space, which usually occupies 100 square meters to 300 square meters in commercial areas. As of September 30, 2022, the company has 171 Spaces in China. Among those, the company has launched 29 Pop-Up Spaces in China, which have more flexible leasing terms than the usual Space and help the company connect with an expanded customer base. • Delivery Center. The company uses Delivery Centers for product delivery. As of September 30, 2022, the company has 22 Delivery Centers in China, most of which are located at facilities with large areas outside urban commercial centers to allow for vehicle storage and simultaneous delivery. • House. The company launches additional Houses in areas where car dealer shops are located across different tiers of cities in China, which allows the company to utilize the cluster effect and provide customers with a superior one-stop experience. Leveraging the service network of the company's sister brands in Geely Group, the company plans to develop Houses cost-effectively and rapidly, with the company's own brand and design, and the company's own staff to be in charge of House’s daily operation. As of September 30, 2022, the company has one House in China. Through the company's App, prospective customers can place orders by (i) for Model 001, paying a nonrefundable deposit of RMB5,000, and (ii) for Model 009, paying a refundable deposit of RMB5,000 or a non-refundable order deposit of RMB10,000. Customers try out the company's products and technologies, as well as participate in a wide range of events in the company's spaces, which usually occupy 100 square meters to 300 square meters in commercial areas. As of December 31, 2023, the company had 240 such spaces in China. Among those, the company has launched 42 Pop-Up spaces in China, which have more flexible leasing terms than the usual spaces and help the company connect with an expanded customer base. • Delivery Centers. The company uses delivery centers for product delivery. As of December 31, 2023, the company had 31 delivery centers in China, most of which are located at facilities with large areas outside urban commercial centers to allow for vehicle storage and simultaneous delivery. • Additional Spaces. The company launches additional spaces in areas where car dealer shops are located across different tiers of cities in China, which allow the company to utilize the cluster effect and provide customers with a superior one-stop experience. Leveraging the service network of sister brands in the parent group, the company plans to develop these spaces cost-effectively and rapidly, with the company's brand and design, and the company's own staff in charge of daily operation. As of December 31, 2023, the company had 45 such spaces in China. The company depends on Geely Holding to allow the company to continue to utilize SEA, which is currently the most suitable platform for the company. The widely compatible SEA enables robust R&D capabilities, execution efficiency, cost efficiency, and control consistency in the vehicle development process, giving the company's BEVs significant advantages. competitive advantages in the market. The SEA platform also offers the flexibility to quickly adopt and accommodate the latest and most advanced technology improvements. For example, the company was able to equip the ZEEKR 009 with CATL’s latest Qilin battery thanks to the structural flexibility of the SEA platform. Together with the company's proprietary advanced battery solutions and highly efficient electric drive system, the extended range version of the ZEEKR 009 is expected to be the world’s first pure-electric MPV model with an over 800 km CLTC range and the longest all-electric range in the MPV market, according to Frost & Sullivan. The company is guided by its customer-oriented principle to provide customers with service and experience in every aspect of their journey with the company. The company adopts a customer-oriented direct-to-consumer (DTC) sales model with a focus on innovative and interactive engagement with its customers. The company has established extensive customer touchpoints including 15 ZEEKR Centers, 195 ZEEKR Spaces, 26 ZEEKR Delivery Centers, and 24 ZEEKR Houses as of December 31, 2022. In addition, the company closely interacts with customers by building an integrated online and offline customer community to provide a holistic experience that goes beyond the purchase of intelligent battery electric vehicles (BEVs). The company adopts a customer-oriented and go-to-market philosophy. The company's professional, efficient in-house sales and marketing team is in charge of the company's direct-to-consumer (DTC) sales network, especially in key aspects such as site selection, construction, and operation of the company's sales centers, as well as a series of delivery and after-sales services. The company is committed to building a DTC sales model to provide customers with a full lifecycle superior experience and value-added services. As of September 30, 2022, approximately 62.7% of the company's sales and marketing team employees have extensive backgrounds in new energy and retail. The company's sales network consists of ZEEKR Center, ZEEKR Space, ZEEKR Delivery Center, and ZEEKR House. The following diagram illustrates the geographic allocation of the company's sales network as of September 30, 2022. • ZEEKR Center. The company's ZEEKR Center, the high-end showroom of the company's brand and products and the hub for customer community, events, and interaction, is conveniently located in urban commercial centers where the company directly engages and interacts with customers. The ZEEKR Center is the key touchpoint in the company's sales and service network, through which the company interacts with prospective or existing customers to build the community, enhance the brand reputation, and understand customer demands. Each ZEEKR Center typically occupies 300 square meters to 600 square meters, providing customers with ample space to hold offline events or enjoy leisure time. As of September 30, 2022, the company has seven ZEEKR Centers in China. • ZEEKR Space. The company adopts a customer-oriented and go-to-market philosophy. The company's professional, efficient in-house sales and marketing team is in charge of the company's direct-to-consumer (DTC) sales network, especially in key aspects such as site selection, construction, and operation of the company's sales centers, as well as a series of delivery and after-sales services. The company is committed to building a DTC sales model to provide customers with a full lifecycle superior experience and value-added services. As of June 30, 2023, approximately 73.7% of the company's sales and marketing team had extensive backgrounds in the automobile and retail industries. The company's sales network consists of company Center, company Space, company Delivery Center, and company House. The following diagram illustrates the geographic allocation of the company's sales network as of June 30, 2023. • company Center. The company's company Center, the high-end showroom of the company brand and products and the hub for customer community, events, and interaction, is conveniently located in urban commercial centers where the company directly engages and interacts with customers. company Center is the key touchpoint. in the company's sales and service network, through which the company interacts with prospective or existing customers to build the community, enhance the brand reputation, and understand customer demands. Each company Center typically takes up 300 square meters to 600 square meters, giving customers ample space to hold offline events or enjoy leisure time. As of June 30, 2023, the company had 18 company Centers in China. • company Space. The company adopts a customer-oriented and go-to-market philosophy. The company's professional, efficient in-house sales and marketing team is in charge of the company's direct-to-consumer (DTC) sales network, especially in key aspects such as site selection, construction, and operation of the company's sales centers, as well as a series of delivery and after-sales services. The company is committed to building a DTC sales model to provide customers with a full lifecycle superior experience and value-added services. As of December 31, 2023, approximately 84.8% of the company's sales and marketing team employees had extensive backgrounds in the automobile and retail industries. The company's sales network consists of ZEEKR Center, ZEEKR Space, ZEEKR Delivery Center, and ZEEKR House. The following diagram illustrates the geographic allocation of the company's sales network as of December 31, 2023. • ZEEKR Center. The company's ZEEKR Center, the high-end showroom of the company brand and products and the hub for customer community, events, and interaction, is conveniently located in urban commercial centers where the company directly engages and interacts with customers. The ZEEKR Center is the key touchpoint in the company's sales and service network, through which the company interacts with prospective or existing customers to build the community, enhance brand reputation, and understand customer demands. Each ZEEKR Center typically occupies 300 square meters to 600 square meters, providing customers with ample space to hold offline events or enjoy leisure time. As of December 31, 2023, the company had 24 ZEEKR Centers in China and two ZEEKR Centers overseas. • ZEEKR Space. In the future, the company strives to enhance customers’ experience with the company, primarily by launching a series of flexible value-added services and ancillary services catering to their needs during the entire product lifecycle. For instance, the company offers long-term and short-term vehicle subscriptions to attract users to drive the company's battery electric vehicles (BEVs), thus generating customer leads and increasing brand awareness. For existing customers, the company enhances its value-added services, such as convenient 24/7 charging services and certified pre-owned programs, to enhance customer loyalty and stickiness. The company also plans to offer subscription-based software and services to meet diverse customer needs and create more monetization opportunities. In the future, company strives to enhance customers’ experience with the company, primarily by launching a series of flexible value-added services and ancillary services catering to their needs during the entire product lifecycle. For instance, company offers long-term and short-term vehicle subscriptions to attract users to drive company's battery electric vehicles (BEVs), thus generating customer leads and increasing brand awareness. For existing customers, company enhances value-added services, such as convenient 24/7 charging services and certified pre-owned programs, to improve customer loyalty and stickiness. company also plans to offer subscription-based software and services to meet diverse customer needs and create more monetization opportunities. In the future, the company strives to enhance customers’ experience with the company, primarily by launching a series of flexible value-added services and ancillary services catering to their needs during the entire product lifecycle. For instance, the company offers long-term and short-term vehicle subscriptions to attract users to drive the company's battery electric vehicles (BEVs), thus generating customer leads and increasing brand awareness. For existing customers, the company enhances value-added services, such as convenient 24/7 charging services and certified pre-owned programs, to improve their loyalty and stickiness. The company also plans to offer subscription-based software and services to meet diverse customer needs and create more monetization opportunities. In the future, the company strives to enhance customers’ experience with the company, primarily by launching a series of flexible value-added services and ancillary services catering to their needs during the entire product lifecycle. For instance, the company offers long-term and short-term vehicle subscriptions to attract users to drive the company's battery electric vehicles (BEVs), thus generating customer leads and increasing brand awareness. For existing customers, the company will further enhance value-added services, such as convenient 24/7 charging services and certified preowned programs, to enhance their loyalty and stickiness. The company also plans to offer subscription-based software and services to meet diverse customer needs and create more monetization opportunities. In the future, the company strives to enhance its customers’ experience, primarily by launching a series of flexible value-added services and ancillary services catering to their needs during the entire product lifecycle. For instance, the company offers long-term and short-term vehicle subscriptions to attract users to drive its battery electric vehicles (BEVs), thus generating customer leads and increasing brand awareness. For existing customers, the company enhances its value-added services, such as convenient 24/7 charging services and certified pre-owned programs, to improve customer loyalty and retention. The company also plans to offer subscription-based software and services to meet diverse customer needs and create more monetization opportunities.
The company is a fast-growing BEV technology company developing and offering next-generation premium BEVs and technology-driven solutions to lead the electrification, intelligentization, and innovation of the automobile industry. The company is an independently-run startup-style company relying on its in-house R&D capabilities and self-owned sales and marketing network, among others. The company adopts a flat and efficient organizational structure led by key management with diversified backgrounds. Since inception, the company has been managed and directed by its executive officers, and save for Conghui An, who is currently an executive director of Geely Auto, none of the company's executive officers are members of management of Geely Auto. Additionally, Mr. An is expected to not hold any positions in Geely Auto prior to or upon the completion of the offering. While the company's chairman, Shufu Li, is also the chairman of Geely Auto, upon the completion of the offering, the directors that the company shares in common with Geely Auto will not have executive roles at the company. The company has been dedicated to serving its customers leveraging top-notch technology, advanced product concepts, and an enriched entrepreneurial spirit that embraces creativity and innovation. The company is strategically positioned as a premium BEV brand that delivers an ultimate experience covering driving, charging, after-sale service, and customer community engagement. The company’s product family meets a wide spectrum of customer needs in different mobility and travel scenarios and is highly customized with a wide selection of vehicle configurations. The company is a fast-growing BEV technology company. Through developing and offering next-generation premium BEVs and technology-driven solutions, the company aspires to lead the electrification, intelligentization, and innovation of the automobile industry. Since its inception, the company has focused on innovation in BEV architecture, hardware, software, and application of new technologies. The company's efforts are backed by strong in-house R&D capabilities, deep understanding of products, high operational flexibility, and a flat, efficient organizational structure. Together, these features enable fast product development, launch, and iteration, and a series of customer-oriented products and go-to-market strategies. Thus, the company is able to rapidly expand even with a limited operating history. The company strategically spearheaded the premium intelligent BEV market with unique positioning, featuring a strong sense of technology, in-house R&D capabilities, stylish design, high-caliber performance, and a premium user experience. The company's current product portfolio includes Model 001 and Model 009. The company's current and future BEV models will define the company's success. Model 001. With an unwavering commitment to its mission, the company released Model 001 on April 15, 2021, a five-seater, cross-over hatchback vehicle model with superior performance and functionality. Targeting the premium BEV market, Model 001 is the company's first vehicle model and the world’s first mass-produced pure electric shooting brake, according to Frost & Sullivan. The company began the delivery of Model 001 on October 23, 2021. • Model 009. On November 1, 2022, the company launched its second model, Model 009, a luxury six-seater MPV model providing a comfortable, ultra-luxury mobility experience for both families and business uses. The company 009 is the world’s first premium MPV based on a pure-electric platform, according to Frost & Sullivan. The company 009 has enjoyed wide popularity since launch, and the company started to deliver the company 009 to its customers in January 2023. Going forward, the company plans to capture the extensive potential of the premium BEV market globally through an expanding portfolio of vehicles. For instance, the company plans to launch SUV and sedan models targeting tech-savvy adults and families in the future. The company and Waymo are collaborating on the development of a purpose-built TaaS vehicle built on SEA-M, which will be deployed in the United States over the coming years. SEA-M is an advanced version of SEA that is a high-tech mobility solution to support a range of future mobility products including robotaxis and logistics vehicles, laying a solid and flexible foundation for global autonomous driving technology or ride-sharing companies to develop. Through these future models, the company intends to provide premium mobility solutions of innovation, comfort, and intelligence, as well as a spacious and luxurious high-tech experience with enhanced performance. As a testament to the popularity of the company's current products and capabilities, the company has achieved a total delivery of 10,000 units of the company 001 in less than four months after the initial delivery, which, according to Frost & Sullivan, sets a new record among the major mid- to high-end NEV models and premium BEV models in China. In October 2022, the company delivered 10,119 units of ZEEKR 001 to the market, making it the first pure-electric premium vehicle model manufactured by a Chinese BEV brand with over 10,000 units of single-month delivery volume, according to Frost & Sullivan. The company has delivered a cumulative 86,519 units of ZEEKR vehicles as of February 28, 2023, and achieved among the fastest delivery in the premium BEV market in China from October 2021 to December 2022, according to Frost & Sullivan. The development of the company's BEV models is powered by SEA, a set of open-source, electric and modularized platforms owned by Geely Holding compatible with A segment to E segment, covering sedan, SUV, MPV, hatchback, roadster, pickup truck, and robotaxi, which have a wheelbase mainly between 1,800 mm to 3,300 mm. The company depends on Geely Holding to allow it to continue to utilize SEA, which is currently the most suitable platform for the company. The widely compatible SEA enables robust R&D capabilities, execution efficiency, cost efficiency, and control consistency in the vehicle development process, giving the company's BEVs significant competitive advantages in the market. SEA also offers the flexibility to quickly adopt and accommodate the latest and most advanced technology improvements. For example, the company was able to equip ZEEKR 009 with CATL’s latest Qilin battery thanks to the structural flexibility of SEA. Together with the company's proprietary advanced battery solutions and highly efficient electric drive system, the extended range version is expected to be the world’s first pure-electric MPV model with an over 800 km CLTC range and the longest all-electric range in the MPV market, according to Frost & Sullivan. As a premium BEV brand incubated by Geely Group, the company inherits unique competitive edges from Geely Group that are developed through years of execution experience at the frontier of the industry, such as innovative and agile engineering capabilities, robust R&D capabilities, deep industry expertise, extreme attention to safety, top-notch professionals, strong supply chain and manufacturing management capabilities, and operational know-how. Geely Group’s powerful and world-class brand equity also echoes product innovation, performance, and reliability in its broad customer base, which, in turn, contributes to the significant consumer interest and demand for the brand. These competitive advantages enable the company to quickly incorporate customer needs and concepts into its products and manage the complex operation process to achieve the fast ramp-up of production and deliveries. The company also leverages Geely Group’s advanced and well-established manufacturing capacity, which helps retain effective oversight over key steps in procurement, manufacturing, and product quality control with minimal capital outlay. At the same time, the company's BEVs are manufactured in the factory, which is owned and operated by Geely Holding, and Geely Holding was the company's largest supplier for 2022. Furthermore, before the launch of ZEEKR 001, a significant portion of the company's revenue has historically been derived from the sales of batteries and other components and research and development services to Geely Group. The company has strong in-house technological capabilities focusing on electrification and intelligentization. The company's in-house design, engineering, and R&D enable it to achieve high product development efficiency and rapid product iteration, as well as to provide engineering services to external parties. In particular, the company's in-house capabilities are also supported by (i) the company's Sweden-based R&D center CEVT in the research and development of intelligent mobility solutions, and (ii) Ningbo Viridi, the company's PRC subsidiary focused on the products and systems relating to battery, motor and electric control, power solutions, and energy storage. Leveraging the company's in-house E/E Architecture design and operating system, ZEEKR OS, the company continuously updates its BEV functions through effective and efficient FOTA. The company deploys cutting-edge autonomous driving technology into its BEVs by world-leading players such as Mobileye and has also announced plans to integrate NVIDIA DRIVE Thor, the 2,000 TOPS AV superchip, into its centralized vehicle computer for the next generation of intelligent BEVs. The company also offers an intelligent cockpit to deliver interactive, immersive, and enjoyable driving experiences. To successfully achieve the company's mission, the company assembled a top-notch management team with diversified yet complementary backgrounds and experiences. The company's management team possesses entrepreneurial spirit, deep automotive and technology sector expertise along with customer-centric operation experience, which are essential to driving the company's future development. Underpinned by the company's superior capability in supply chain and manufacturing planning and management, the company is also able to offer a wide range of customized options in terms of vehicle designs and functionalities, which are highly appreciated by its customers. The company has established a comprehensive charging network and provided hassle-free charging services through at-home charging solutions, on-the-road charging solutions, and 24/7 charging fleets. The ultra charging stations, in particular, provide users with an ultimate charging experience through the company's proprietary ultra-fast charging technology developed by Ningbo Viridi. As of December 31, 2022, there were 607 charging stations with different charging capabilities, including 200 ultra charging stations, 292 super charging stations, and 115 light charging stations, covering 113 cities in China, further supported by third-party charging stations that cover 336 cities in China with approximately 380 thousand charging piles in total. The company has established in-depth partnerships with a number of internationally renowned smart mobility companies, laying a solid foundation for the company's business development and global expansion. For example, the company collaborates with Mobileye, a subsidiary of Intel and one of the company's strategic investors, for consumer-ready autonomous driving solutions. The company and Waymo are collaborating on the development of a purpose-built TaaS vehicle built on the SEA-M platform which will be deployed in the United States over the coming years. Furthermore, the company has deep relationships with a range of leading suppliers, such as CATL, Bosch, and Aptiv. The company operates in a rapidly growing market with extensive potential. Driven by improving battery and smart technologies, supportive regulatory policies, and enhancement of charging infrastructure, China’s BEV market has substantial room for growth in both volume and BEV penetration. China’s BEV sales volume is expected to be more than quadrupled to 11.3 million units in 2026 from 2021, according to Frost & Sullivan. The premium BEV market is expected to experience even faster growth, almost increasing to five times the volume in 2021 by 2026, according to Frost & Sullivan. The European BEV market has significant size and growth potential, which is expected to reach 4.4 million units in sales volume in 2026, representing a CAGR of 29.4% from 2022 to 2026, according to Frost & Sullivan. In the future, the company also plans to tap into the BEV market in Europe and the robotaxi market in the United States. The company started to deliver its first model in October 2021. The company's revenue from vehicle sales amounted to RMB1,544.3 million and RMB19,671.2 million (US$2,852.1 million) in 2021 and 2022, respectively, with a gross profit margin of 1.8% and 4.7%, respectively. In addition to vehicle sales, the company generated revenues from research and development services, as well as other services and sales of batteries and other components. The company's total revenue amounted to RMB6,527.5 million and RMB31,899.4 million (US$4,625.0 million) in 2021 and 2022, respectively, with a gross profit margin of 15.9% and 7.7%, respectively. The company recorded a net loss of RMB4,514.3 million and RMB7,655.1 million (US$1,109.9 million) in 2021 and 2022, respectively. The company is a fast-growing BEV technology company. Through developing and offering next-generation premium BEVs and technology-driven solutions, the company aspires to lead the electrification, intelligentization, and innovation of the automobile industry. Since its inception, the company has focused on innovation and technological advancement in BEV architecture, hardware, software, and application of new technologies. The company's efforts are backed by strong in-house R&D capabilities, high operational flexibility, and a flat, efficient organizational structure. Together, these features enable fast product development, launch, and iteration, and a series of customer-oriented products and go-to-market strategies. Thus, the company is able to rapidly expand even with a limited operating history. The company's total revenue from vehicle sales amounted to RMB1,544.3 million and RMB19,671.2 million (US$2,852.1 million) in 2021 and 2022, respectively, with a gross profit margin of 1.8% and 4.7%, respectively. In addition to vehicle sales, the company generated revenues from research and development services, as well as other services and sales of batteries and other components. The company's total revenue amounted to RMB6,527.5 million and RMB31,899.4 million (US$4,625.0 million) in 2021 and 2022, respectively, with a gross profit margin of 15.9% and 7.7%, respectively. The company recorded a net loss of RMB4,514.3 million and RMB7,655.1 million (US$1,109.9 million) in 2021 and 2022, respectively. The development of the company's BEV models is powered by SEA, a set of open-source, electric and modularized platforms owned by Geely Holding compatible with A segment to E segment, covering sedan, SUV, MPV, hatchback, roadster, pickup truck, and robotaxi, which have a wheelbase mainly between 1,800 mm to 3,300 mm. The company is a fast-growing battery electric vehicle (BEV) technology company developing and offering next-generation premium BEVs and technology-driven solutions to lead the electrification, intelligentization, and innovation of the automobile industry. The company is an independently-run startup-style company relying on its in-house research and development (R&D) capabilities and self-owned sales and marketing network, among others. The company adopts a flat and efficient organizational structure led by key management with diversified backgrounds. Since inception, the company has been managed and directed by its executive officers, and save for Conghui An, who is currently an executive director of Geely Auto, none of the company's executive officers are members of management of Geely Auto. Additionally, Mr. An is expected to not hold any positions in Geely Auto prior to or upon the completion of the offering. While the company's chairman, Shufu Li, is also the chairman of Geely Auto, upon the completion of the offering, the directors that the company shares in common with Geely Auto will not have executive roles at the company. The company has been dedicated to serving its customers by leveraging top-notch technology, advanced product concepts, and an enriched entrepreneurial spirit that embraces creativity and innovation. The company is strategically positioned as a premium BEV brand that delivers an ultimate experience covering driving, charging, after-sale service, and customer community engagement. The company’s product family meets a wide spectrum of customer needs in different mobility and travel scenarios and is highly customized with a wide selection of vehicle configurations. The company's products have been well received by the market, achieving a total delivery of 10,000 units of Model A in less than four months since its initial delivery in October 2021, which, according to Frost & Sullivan, is one of the fastest among the major mid- to high-end NEV models and premium BEV models in China. The company's current and future models will be primarily based on Geely Holding’s proprietary SEA, which is highly agile, compatible, and enables the company to quickly build and launch a wide range of vehicle models catering to different demands in the premium BEV segment. Developed based on SEA, the company's vehicles embody impressive vehicle performance, FOTA-enabled upgrades, superior driving and riding experiences, as well as striking and trendy designs that provide a comprehensive smart mobility experience to the company's customers. • Outstanding battery and range performance. The up-to- $100 \mathrm{kWh}$ battery supports a maximum CLTC range of $741 \mathrm{km}$ on Model A and $750 \mathrm{km}$ on Model A (2024 model), respectively, which is ahead of most of the BEV models of the company's peers, according to Frost & Sullivan. According to Frost & Sullivan, Model B is the world’s first pure-electric MPV model with over $800 \mathrm{km}$ CLTC range, and it has the longest all-electric range in the MPV market by the end of February 2024. • State-of-the-art autonomous driving expertise. Model A, Model B, and Model C are equipped with 7nm Mobileye EyeQ5H high-performance chips and Falcon Eye Vidar systems, all of which bring out the full potential of the company’s autonomous driving suite. The upscale sedan model adopts the NVIDIA DRIVE Orin platform to power the company's proprietary intelligent autonomous driving systems. In addition, the 001 (2024 model) incorporates the latest Mobileye EVO domain control platform, which enables bolstered performance and heightened system stability. • Extensive customization options with fast launch pace enabled by SEA. The company offers customers a large number of different setup combinations and customization options.  
• Maverick driving performance that stands out among its peers. Equipped with industry-leading driving metrics, the company's battery electric vehicles (BEVs) hold the leading position in the industry based on key performance metrics, according to Frost & Sullivan. See “Industry Overview — Competitive Landscape.”  
• Premium in-vehicle configurations and distinct exterior design to enhance user experience and meet demands for individuality. The company offers drivers and passengers a suite of in-vehicle configurations featuring comfort and pleasure. According to Frost & Sullivan, the 001 offers more competitive specifications compared with BEVs of similar price ranges. The 001 also embodies a stylish exterior, which is suitable for customers with bold and expressive lifestyles. For instance, the 009 Grand offers two separate rear seats, each equipped with electric adjustments, heating and massage functions, ensuring comprehensive comfort for passengers. Additionally, the 009 Grand features a 43-inch ultra-large 4K screen and an 8-inch smart control screen running OS 6.0, which is paired with a 31-speaker YAMAHA premium sound system. Such setup not only satisfies passengers’ entertainment needs but also supports quality online conferencing. While the company is still in the process of preparing its financial statements for the three months ended March 31, 2024, the company estimates its vehicle sales revenue in the first quarter of 2024 to be higher than in the first quarter of 2023, but lower than in the fourth quarter of 2023 due to seasonality that impacted delivery volume, as well as the lower average selling price primarily caused by the change in the company's product mix. The company estimates its total revenue in the first quarter of 2024 to be higher than in the first quarter of 2023, but lower than in the fourth quarter of 2023 due to the above-mentioned quarter-over-quarter decrease in vehicle sales revenue and a significant quarter-over-quarter decrease in revenue generated from research and development services and other services, despite the estimated quarter-over-quarter increase in revenue from sales of batteries and other components. In addition, the company estimates its gross profit margin in the first quarter of 2024 to be lower than in the fourth quarter of 2023 because of the negative effect from the delivery of new vehicle models as well as the change in product mix, and the increase in the percentage of revenue contribution from sales of batteries and other components that have a lower gross profit margin than vehicle sales. Because the company does not have final results for the first quarter of 2024, the company's actual results could differ from the company's expected results discussed above when they become available. The company made capital expenditures of RMB847.5 million, RMB754.8 million, and RMB919.5 million in 2020, 2021, and 2022, respectively. In these periods, the company's capital expenditures were used primarily for property, plant, and equipment, as well as facilities related to sales and marketing activities. Going forward, the company expects to make capital expenditures primarily on properties and manufacturing facilities related to Ningbo Viridi and leasehold improvements for retail stores. Other than what has been included in the capital commitments and contractual obligations discussed below, the company does not expect to incur material costs to accomplish these goals. The company made capital expenditures of RMB754.8 million, RMB919.5 million, and RMB1,913.4 million in 2021, 2022, and 2023, respectively. In these periods, the company's capital expenditures were used primarily for property, plant, and equipment, as well as facilities related to sales and marketing activities. Going forward, the company expects to make capital expenditures primarily on properties and manufacturing facilities related to Ningbo Viridi and leasehold improvements for retail stores. Other than what has been included in the capital commitments and contractual obligations discussed below, the company does not expect to incur material costs to accomplish these goals. The company made capital expenditures of RMB919.5 million, RMB1,913.4 million, and RMB1,715.4 million in 2022, 2023, and 2024, respectively. In these periods, the company's capital expenditures were used primarily for property, plant, and equipment, as well as facilities related to sales and marketing activities. Going forward, the company expects to make capital expenditures primarily on properties and manufacturing facilities related to Ningbo Viridi and leasehold improvements for retail stores. Other than what has been included in the capital commitments and contractual obligations discussed below, the company does not expect to incur material costs to accomplish these goals. The company made capital expenditures of RMB847.5 million, RMB754.8 million, and RMB703.1 million in 2020, 2021, and the nine months ended September 30, 2022, respectively. In these periods, the company's capital expenditures were used primarily for property, plant, and equipment, as well as facilities related to sales and marketing activities. Going forward, the company expects to make capital expenditures primarily on properties and manufacturing facilities related to Ningbo Viridi and leasehold improvements for retail stores. Other than what has been included in the capital commitments and contractual obligations discussed below, the company does not expect to incur material costs to accomplish these goals. The company made capital expenditures of RMB847.5 million, RMB754.8 million, RMB919.5 million, and RMB744.4 million in 2020, 2021, 2022, and the six months ended June 30, 2023, respectively. In these periods, the company's capital expenditures were used primarily for property, plant, and equipment, as well as facilities related to sales and marketing activities. Going forward, the company expects to make capital expenditures primarily on properties and manufacturing facilities related to Ningbo Viridi and leasehold improvements for retail stores. Other than what has been included in the capital commitments and contractual obligations discussed below, the company does not expect to incur material costs to accomplish these goals. The company made capital expenditures of RMB847.5 million, RMB754.8 million, RMB919.5 million, and RMB1,116.9 million in 2020, 2021, 2022, and the nine months ended September 30, 2023, respectively. In these periods, the company's capital expenditures were used primarily for property, plant, and equipment, as well as facilities related to sales and marketing activities. Going forward, the company expects to make capital expenditures primarily on properties and manufacturing facilities related to Ningbo Viridi and leasehold improvements for retail stores. Other than what has been included in the capital commitments and contractual obligations discussed below, the company does not expect to incur material costs to accomplish these goals. Any consideration received prior to the transfer of goods or services by the company, the company records a contract liability (deferred revenue) in accruals and other current liabilities and other non-current liabilities in the combined and consolidated balance sheets for the amount allocated to unsatisfied performance obligations. The Group’s contract liabilities primarily result from the multiple performance obligations identified in the vehicle sales contract, which are recorded as deferred revenue and recognized as revenue based on the consumption of the services or the delivery of the vehicles. Batteries and other vehicle components The Group generates revenue from sales of batteries and other vehicle components, such as motors and electric control system products. Product sales generally require customer acceptance due to performance acceptance criteria that are considered more than a formality. Thus, the revenue is recognized upon customer acceptance after the quality inspection. The company typically provides three-year standard product warranties on batteries and other vehicle components. Standard warranties are considered to be assurance-type warranties and are not accounted for as separate performance obligations, and the company accounts for the standard warranties in accordance with ASC 460, Guarantees. The company's research and development and other services The company also generates revenues by providing research and development and other services to customers. Revenue under research and development and other service contracts is recognized when the service is performed and the company has an enforceable right to payment. Any consideration received prior to the transfer of goods or services by the company, the company records a contract liability (deferred revenue) in accruals and other current liabilities and other non-current liabilities in the combined and consolidated balance sheets for the amount allocated to unsatisfied performance obligations. The Group’s contract liabilities primarily result from the multiple performance obligations identified in the vehicle sales contracts, which are recorded as deferred revenue and recognized as revenue based on the consumption of the services or the delivery of the vehicles. Batteries and other components of the company's vehicles The Group generates revenue from sales of batteries and other components, such as motors and electric control system products. Sales of these products generally require customer acceptance due to performance acceptance criteria that are considered more than a formality. Thus, the revenue is recognized upon customer acceptance after the quality inspection. The Group typically provides three-year standard product warranties on batteries and other components. Standard warranties are considered to be assurance-type warranties and are not accounted for as separate performance obligations, and the Group accounts for the standard warranties in accordance with ASC 460, Guarantees. Research and development services and other services The company also generates revenues by providing research and development and other services to customers. Revenue under research and development and other service contracts is recognized when the service is performed and the company has an enforceable right to payment. A change in one or more of the factors described above may have a material adverse effect on the company's business, financial condition, and results of operations. the availability of after-sales service for new energy vehicles (NEVs); the environmental consciousness of consumers; access to charging stations, standardization of battery electric vehicle (BEV) charging systems, and consumers’ perceptions about convenience and cost for charging a BEV; the availability of tax and other governmental incentives to purchase and operate NEVs or future regulations requiring increased use of nonpolluting vehicles; perceptions about and the actual cost of alternative fuel; and   
macroeconomic factors. Any of the factors described above may cause current or potential customers not to purchase the company's battery electric vehicles (BEVs) and use the company's services. If the market for new energy vehicles (NEVs) does not develop in the way the company expects or develops more slowly than the company expects, the company's business, prospects, financial condition, and operating results will be affected. announcements by the company or its competitors of new product and service offerings, acquisitions, strategic relationships, joint ventures, capital raisings or capital commitments; additions to or departures of the company's senior management; fluctuations of exchange rates between the Renminbi and the U.S. dollar; release or expiry of lock-up or other transfer restrictions on the company's issued shares or ADSs; and   
sales or perceived potential sales of additional ordinary shares or ADSs.