How did COVID-19 impact Zeekr?
During the COVID-19 pandemic, especially the outbreak of the Omicron variant in the first half of 2022, the company's production and delivery experienced temporary delays. For details, see “— Impact of COVID-19 on Our Operations and Financial Performance.” The COVID-19 pandemic has negatively impacted the company's business operations and financial performance. In particular, the company has experienced occasional delays, interruptions, suspensions, and temporary closures in production, delivery, sales and marketing, research and development efforts, and the supply chain due to travel, workplace, or social restrictions. • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores had been adversely affected. In January, February, and March 2022, the company's vehicle deliveries were 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to travel difficulties worldwide, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D talents in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain raw materials for the company's production and the delivery of certain auto parts experienced fluctuation due to COVID-19. Due to the company's advanced planning and effective supply chain management, the company has not experienced significant disruptions to its supply chain or significant increases in its costs as a result of the COVID-19 pandemic. However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain will be affected by the COVID-19 pandemic in the future. The COVID-19 pandemic has negatively impacted the company's business operations and financial performance. In particular, the company has experienced occasional delays, interruptions, suspensions, and temporary closures in production, delivery, sales and marketing, R&D efforts, and supply chain activities due to travel, workplace, or social restrictions. • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores had been adversely affected. In January, February, and March 2022, the company's vehicle deliveries were 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to travel difficulties worldwide, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D talents in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain raw materials for the company's production and the delivery of certain auto parts experienced fluctuation due to COVID-19. Due to the company's advanced planning and effective supply chain management, the company has not experienced significant disruptions to its supply chain or significant increases in costs as a result of the COVID-19 pandemic. However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain will be affected by the COVID-19 pandemic in the future. The COVID-19 pandemic has negatively impacted the company's business operations and financial performance. In particular, the company has experienced occasional delays, interruptions, suspensions, and temporary closures in production, delivery, sales and marketing, R&D efforts, and the supply chain due to travel, workplace, or social restrictions. • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores had been adversely affected. In January, February, and March 2022, the company's vehicle deliveries were 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to travel difficulties worldwide, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D talents in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain raw materials for the company's production and the delivery of certain auto parts experienced fluctuation due to COVID-19. Due to the company's advanced planning and effective supply chain management, the company has not experienced significant disruptions to its supply chain or significant increases in costs as a result of the COVID-19 pandemic. However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain will be affected by the COVID-19 pandemic in the future. The COVID-19 pandemic has negatively impacted the company's business operations and financial performance. In particular, the company has experienced occasional delays, interruptions, suspensions, and temporary closures of production, delivery, sales and marketing, R&D efforts, and the supply chain due to travel, workplace, or social restrictions. • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores had been adversely affected. In January, February, and March 2022, the company's vehicle deliveries were 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to travel difficulties worldwide, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D talents in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain raw materials for the company's production and the delivery of certain auto parts experienced fluctuation due to COVID-19. Due to the company's advanced planning and effective supply chain management, the company has not experienced significant disruptions to its supply chain or significant increases in costs as a result of the COVID-19 pandemic. However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain will be affected by the COVID-19 pandemic in the future. The COVID-19 pandemic has negatively impacted the company's business operations and financial performance. In particular, the company has experienced occasional delays, interruptions, suspensions, and temporary closures in production, delivery, sales and marketing, research and development efforts, and the supply chain due to travel, workplace, or social restrictions. • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores had been adversely affected. In January, February, and March 2022, the company's vehicle deliveries were 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to travel difficulties worldwide, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D talents in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain raw materials for the company's production and the delivery of certain auto parts experienced fluctuation due to COVID-19. Due to the company's advanced planning and effective supply chain management, the company has not experienced significant disruptions to its supply chain or significant increases in its costs as a result of the COVID-19 pandemic. However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain may be affected by COVID-19 and other disease outbreaks and pandemics in the future. The COVID-19 pandemic has negatively impacted the company's business operations and financial performance. In particular, the company has experienced occasional delays, interruptions, suspensions, and temporary closures in production, delivery, sales and marketing, R&D efforts, and the supply chain due to travel, workplace, or social restrictions. • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores had been adversely affected. In January, February, and March 2022, the company's vehicle deliveries were 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to travel difficulties worldwide, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D talents in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain raw materials for the company's production and the delivery of certain auto parts experienced fluctuation due to COVID-19. Due to the company's advanced planning and effective supply chain management, the company has not experienced significant disruptions to its supply chain or significant increases in costs as a result of the COVID-19 pandemic. However, uncertainties remain as to whether and to what extent market demand and the battery electric vehicle (BEV) supply chain may be affected by COVID-19 and other disease outbreaks and pandemics in the future. The COVID-19 pandemic has negatively impacted the company's business operations and financial performance. In particular, the company has experienced occasional delays, interruptions, suspensions, and temporary closures in production, delivery, sales and marketing, R&D efforts, and the supply chain due to travel, workplace, or social restrictions. • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores had been adversely affected. In January, February, and March 2022, the company's vehicle deliveries were 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to travel difficulties worldwide, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D talents in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain raw materials for the company's production and the delivery of certain auto parts experienced fluctuation due to COVID-19. Due to the company's advanced planning and effective supply chain management, the company has not experienced significant disruptions to its supply chain or significant increases in its costs as a result of the COVID-19 pandemic. However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain may be affected by COVID-19 and other disease outbreaks and pandemics in the future. The COVID-19 pandemic has negatively impacted the company's business operations and financial performance. In particular, the company has experienced occasional delays, interruptions, suspensions, and temporary closures of production, delivery, sales and marketing, R&D efforts, and supply chain activities due to travel, workplace, or social restrictions. • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores had been adversely affected. In January, February, and March 2022, the company's vehicle deliveries were 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to travel difficulties worldwide, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D talents in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain raw materials for the company's production and the delivery of certain auto parts experienced fluctuation due to COVID-19. Due to the company's advanced planning and effective supply chain management, the company has not experienced significant disruptions to its supply chain or significant increases in its costs as a result of the COVID-19 pandemic. However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain may be affected by COVID-19 and other disease outbreaks and pandemics in the future. In light of the uncertainties in the global market and economic conditions due to the COVID-19 pandemic, the company will continue to evaluate the nature and extent of the impact of the pandemic on its financial condition and liquidity. See also “Risk Factors — Risks Related to Our Business and Industry — The COVID-19 outbreak has adversely affected, and may continue to adversely affect, the company's results of operations.” In light of the uncertainties in the global market and economic conditions due to the COVID-19 pandemic, the company will continue to evaluate the nature and extent of the impact of the pandemic on its financial condition and liquidity. See also “Risk Factors — Risks Related to the company's Business and Industry — The COVID-19 outbreak has adversely affected, and may continue to adversely affect, the company's results of operations.” In light of the uncertainties in the global market and economic conditions that can be created by future disease outbreaks and pandemics, the company will continue to monitor and evaluate such matters and take appropriate measures to reduce their impact on its business operations. See also “Risk Factors — Risks Related to the company's Business and Industry — The COVID-19 outbreak has adversely affected, and may continue to adversely affect, the company's results of operations. The COVID-19 outbreak has become a global pandemic since 2020. The pandemic has affected many regions across the world, including locations where the company has its headquarters, production facilities, supply chain, sales network, and R&D centers. In particular, there were certain disruptions in the company's operations, including but not limited to the following: • Vehicle production in the company's factory was temporarily suspended in early 2022. • In the beginning of 2022, the company temporarily closed the retail stores and delivery centers in Shanghai, Shenzhen, and Xi’an. The company's vehicle delivery, marketing, and the expansion of retail stores have been adversely affected. In January, February, and March 2022, the company's vehicle delivery amounted to 3,530 units, 2,916 units, and 1,795 units, respectively. • Due to the worldwide travel difficulties, the company had to suspend the usual face-to-face interaction and testing with Sweden-based R&D personnel in CEVT, which adversely affected the company's R&D efficiency. • In early 2022, the supply of certain auto parts for the company's production and the delivery of certain raw materials experienced fluctuation due to COVID-19. If the COVID-19 outbreak continues or worsens, it could materially and adversely impact the company's results of operations and financial performance. At this point, the company cannot accurately predict what effects these conditions would have on its business, which will depend on, among other factors, the ultimate geographic spread of the virus, the duration of the outbreak, and the corresponding travel restrictions and business closures imposed by government authorities.
However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain will be affected by the COVID-19 pandemic in the future. In light of the uncertainties in the global market and economic conditions due to the COVID-19 pandemic, the company will continue to evaluate the nature and extent of the impact of the pandemic on its financial condition and liquidity. See also “Risk Factors — Risks Related to the company's Business and Industry — The COVID-19 outbreak has adversely affected, and may continue to adversely affect, the company's results of operations.” However, uncertainties remain as to whether and to what extent the market demand and the battery electric vehicle (BEV) supply chain will be affected by the COVID-19 pandemic in the future. In light of the uncertainties in the global market and economic conditions due to the COVID-19 pandemic, the company will continue to evaluate the nature and extent of the impact of the pandemic on its financial condition and liquidity. See also “Risk Factors — Risks Related to Our Business and Industry — The COVID-19 outbreak has adversely affected, and may continue to adversely affect, the company's results of operations.” If the COVID-19 outbreak continues or worsens, it could materially and adversely impact the company's results of operations and financial performance. At this point, the company cannot accurately predict what effects these conditions would have on the business, which will depend on, among other factors, the ultimate geographic spread of the virus, the duration of the outbreak and the corresponding travel restrictions and business closures imposed by government authorities. Concerns about the COVID-19 outbreak and its potential impact on the Chinese and global economy have created uncertainty about the overall demand for automobile products, which could have negative implications for the demand of the company's battery electric vehicles (BEVs). If the COVID-19 outbreak continues or worsens, the situation could materially and adversely impact the company's results of operations and financial performance. At this point, the company cannot accurately predict what effects these conditions would have on the business, which will depend on, among other factors, the ultimate geographic spread of the virus, the duration of the outbreak, and the corresponding travel restrictions and business closures imposed by government authorities. Concerns about the COVID-19 outbreak and its potential impact on the Chinese and global economy have created uncertainty about the overall demand for automobile products, which could have negative implications for the demand for the company's battery electric vehicles (BEVs).