Zeekr released its first financial report after listing: revenue soared and stock price plummeted, what are the market concerns?

On June 11, Zeekr Auto released its first quarter financial report for 2024, which is its first financial report after its listing. Data shows that Zeekr achieved revenue of 14.737 billion yuan in the first quarter, a year-on-year increase of 71%, and delivered 33,059 new cars, a year-on-year increase of 117%, surpassing NIO and Xpeng.

This seems to be a very good report card, but the capital market does not seem to buy it. On the day the financial report was released, Zeekr's stock price plummeted 6.51%, and the intraday decline was close to 10%, and then it continued to fall for three consecutive days.

Why can't such a seemingly good report card convince investors?

First of all, the real highlight of this financial report is the substantial growth in revenue and sales, but this is based on the relatively low sales of Zeekr in the same period last year. 33,000 vehicles were delivered in the first quarter, equivalent to monthly sales of about 10,000 vehicles. This result is only equivalent to the passing line in the domestic new energy market.

At the same time, Zeekr's loss problem is also quite serious. The net loss in the first quarter was 2.22 billion yuan. Although it has narrowed year-on-year and month-on-month, long-term losses are always a risk in a highly competitive market environment.

Of course, unlike new forces such as NIO and Xpeng, Zeekr’s losses are controllable rather than a bottomless pit. With the support of Geely, it can provide sufficient support at critical moments.

However, common sense tells us that financial reports only represent the past, not to mention that the second quarter is almost over. What really worries investors about Zeekr is not the "superficial" financial reports, but its development prospects.

Zeekr's annual delivery target for 2024 is 230,000 vehicles. Based on the current growth rate, this goal is difficult to achieve. So what kind of hidden dangers make the capital market so panic about Zeekr?

Let's first take a look at the current product structure of the Zeekr brand. There are currently four Zeekr models on sale. In May, the sales volume of Zeekr 001 was 13,480 units, the sales volume of Zeekr 007 was 4,308 units, the sales volume of Zeekr 009 was 450 units, and the price of Zeekr X was only 378 units.

In other words, from its establishment to now, the only model that can be called a hit of Zeekr is the Zeekr 001, a pure electric mid-to-large sedan. Its performance looks good, but judging from the performance of other new energy brands, there is an upper limit for pure electric mid-to-large sedans. It would be considered good if the monthly sales of Zeekr 001 can be stable at more than 10,000 units.

The performance of the other three models is relatively average, especially the highly anticipated Zeekr X, which has a starting price of only 189,800 yuan, but its monthly sales have never exceeded 800 since 2024, which can be said to be a flash in the pan. This is not good news for Zeekr. Once the Zeekr 001 turns downward, the sales of the Zeekr brand will soon collapse.

Secondly, the Zeekr brand looks very individual, but in fact it has no clear brand positioning. When you mention Zeekr, what do you think of first? Personalized appearance? Pure electric system? These are not enough to constitute core competitiveness.

Geely's performance in new energy core technology is still good. It has a complete set of new energy solutions, and its sales volume is second only to BYD in China. But if you say that Geely has any shocking technology, it seems that it does not have any. It has not yet come up with BYD's fifth-generation DM technology or Huawei's ADS3.0 advanced intelligent driving assistance system and other artifacts, and cannot provide continuous technical support to Zeekr. Not only that, it can't even come up with core selling points such as Weilai's battery replacement mode or Ideal's extended-range electric.

It should be said that Zeekr's overall performance is still good, but it is still far from a mature brand. It currently relies on one popular model to conquer the world, and its sales volume is increasing at a slow rate. It has also not established its own technological "moat".

This is actually a common problem for many new car manufacturers. The "parts optimization" method was acceptable in the past because the new car manufacturers at that time had unstable foundations. But now it is different. If a new brand wants to gain a foothold in the market, it must have something that "it can do but others can't". From this point of view, Zeekr does not seem to have done it.

If the Zeekr brand wants to achieve a breakthrough, it must first come up with something solid in terms of technology, so that it can have long-term appeal. Over the past year or so, new energy vehicle manufacturers have gone through several rounds in the fields of smart driving, smart cockpits, and 800V high-voltage platforms, but the Zeekr brand is not the main force.

At present, the most realistic option for the Zeekr brand is to expand its product lineup. In the second half of this year, the Zeekr brand is expected to launch the pure electric MPV Zeekr MIX, in addition to a pure electric medium and large SUV. If these models can be recognized by users, then Zeekr may be able to break through the current bottleneck.

Again, you need core technology, only this can form a real selling point. Zeekr can make efforts in multiple technical fields, but it must have a strong point. In this regard, Wenjie is a good example, and its main selling point is the Huawei N-piece set. The Zeekr brand is the same. With the support of Geely Auto, it does not worry about survival in the short term, but it must find the right path for itself. Geely Auto has invested a lot of resources in the Zeekr brand. It is time for the capital dad to see the real return of Zeekr.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.