What is the impact of the pandemic on Zeekr's business in 2024?
The company's gross profit increased by 81.7% from RMB6,850.5 million in 2023 to RMB12,447.5 million (US$1,705.3 million) in 2024, which was primarily due to (i) an increase in gross profit from vehicle sales from RMB5,080.2 million in 2023 to RMB8,650.3 million (US$1,185.1 million) in 2024; (ii) an increase in gross profit from sales of batteries and other components from RMB884.5 million in 2023 to RMB2,312.7 million (US$316.8 million) in 2024; and (iii) an increase in gross profit from research and development services from RMB885.8 million in 2023 to RMB1,484.5 million (US$203.4 million) in 2024. The company's gross profit margin increased from 13.3% in 2023 to 16.4% in 2024. The increase was mainly attributable to the slight growth of the company's vehicle sales business, which had a higher gross profit margin at 15.6% in 2024. The gross profit and gross profit margin for the company in 2024 were RMB9,948.7 million (US$1,363.0 million) and 17.0%, respectively, compared with RMB5,791.9 million and 16.3% in 2023. The increase was primarily attributed to (i) the increase in delivery volume of the company's vehicles together with changes in pricing strategy to align with market dynamics and (ii) procurement savings due to the declining average costs in auto parts and other materials. For the Viridi Segment, the company recorded RMB954.2 million and RMB2,386.6 million (US$327.0 million) in gross profit and recorded gross profit margins of 5.2% and 13.3% in 2023 and 2024, respectively. The increase was primarily due to the growth in overseas sales of battery components, which had higher average gross margins. 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 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 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 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 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.”
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.” [Table Level]
- Table Title: Loss per Share Analysis for the Years Ended December 31, 2022, 2023, and 2024
- Table Summary: This table presents the financial outcomes related to the company's net loss per share for the fiscal years 2022, 2023, and 2024. It details figures for net losses from consolidated entities, net income attributable to non-controlling interests, and the net losses attributable to ordinary shareholders. Additionally, it demonstrates the weighted average number of shares and calculates both basic and diluted net loss per share.
- Context: The context discusses significant financial activities of the Group, including related party transactions and loans, along with their completion and outstanding balances. It also explains the net loss from consolidated entities and provides background on excluded share units and preferred shares affecting net loss per share calculations.
- Special Notes: The amounts are presented in thousands; share data and per share data use specific formatting. The negative values indicate net losses.

[Row Level]
Row 1: In 2022, the net loss from consolidated entities amounted to RMB 7,651,854, which increased to RMB 8,264,191 in 2023, and then decreased to RMB 5,790,649 in 2024.
Row 2: Net income attributable to Ningbo Viridi as a non-controlling interest (NCI) was RMB 278,633 in 2022, then reduced to RMB 82,789 in 2023, and increased significantly to RMB 632,921 in 2024.
Row 3: The net loss attributable to ordinary shareholders of the company was recorded as RMB 7,930,487 in 2022, increased to RMB 8,346,980 in 2023, and reduced to RMB 6,423,570 in 2024.
Row 4: The weighted average number of ordinary shares outstanding, both basic and diluted, remained constant at 2,000,000,000 shares in 2022 and 2023, increasing to 2,353,015,830 shares by 2024.
Row 5: The basic net loss per share attributable to ordinary shareholders of the company was RMB (3.97) in 2022, increased to RMB (4.17) in 2023, and then improved to RMB (2.73) in 2024.
Row 6: Similarly, the diluted net loss per share for ordinary shareholders of the company mirrored the basic calculation: RMB (3.97) in 2022, rising to RMB (4.17) in 2023, and decreasing to RMB (2.73) in 2024. Net loss from consolidated entities represents the net loss generated by each entity acquired as part of the company's Reorganization since the dates of their respective acquisitions. 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.”