AutoBeta(AutoBeta.net)03/27 Report--

On March 25, Zero Auto released its annual results for 2023. According to the financial report, the revenue of zero-running cars in 2023 was 16.75 billion yuan, an increase of 35.2 percent over the same period last year; the gross profit margin for the whole year was 0.5 percent, becoming a regular employee for the first time. As a comparison, the gross profit margin in 2022 was-15.4 percent, and the operating cash flow became a regular employee for the first time for the whole year. 1.08 billion yuan. Zero running car said that it is mainly due to the company's ability to reduce costs, the continuous improvement of product structure and the continuous reduction of costs and efficiency. If you follow the same caliber of the new forces, you need to add the rebate back to the dealer channel, and the adjusted annual gross profit has reached 11.6%. For comparison, Wei Xiaoli's gross profit margin in 2023 was 5.5%, 1.5% and 22.2%, respectively.

Although the revenue of zero-running cars reached a new high in 2023, and the gross profit and cash flow became regular for the first time for the whole year, zero-running cars still had a net loss of 4.216 billion yuan in 2023, narrowing from the net loss of 5.109 billion yuan in 2022. For comparison, in Wei Xiaoli, ideal Automobile has taken the lead in achieving annual profits, with a net profit of 11.81 billion yuan in 2023, making it the third new energy vehicle company in the world to make a profit after Tesla and BYD. Lulai Motor and Xiaopeng Motor still lost 20.72 billion yuan and 10.38 billion yuan respectively.

By the end of 2023, the capital of zero-running cars was 19.39 billion yuan, and the asset-liability structure maintained a healthy level.

In terms of sales volume, a total of 144200 zero-running cars were delivered in 2023, an increase of 29.67 percent over the 111200 in 2022, ranking third among the new car-building companies, ahead of Xiaopeng, but lagging behind ideal cars and Xilai cars.

Among the subdivided models, the C11 is a zero-running car model. Retail data show that the cumulative sales of Zero C11 in 2023 were 80616, accounting for 55.92% of the total sales (144155), followed by Lines T03 and C01, with sales of 38454 and 25085 respectively. Judging from the annual delivery situation, in the car-building new power model camp, the delivery volume of zero-running cars is OK, but it failed to reach the previous annual sales target of 200000 vehicles, and the annual sales target completion rate is 72.08%. There is still room for improvement in the performance of zero-running cars in terms of delivery volume.

Of course, compared with Wei Xiaoli, zero-running cars are actually a new second-tier force. Zero running Automobile, founded in 2015, is a technology-based intelligent electric vehicle brand of Zhejiang Zero running Technology Co., Ltd., jointly invested by Zhejiang Dahua Technology Co., Ltd and its main founders. Is a new energy vehicle company focusing on the research, design, production and sales of new energy vehicles and auto parts and accessories. It has six models: zero run S01, zero run T03, zero run C11, zero run C01, zero run C11 extended range, zero run C10.

As for the development goals for the new year, Zhu Jiangming, founder, chairman and CEO of Zero, said that 2024 will be very challenging for all car companies, and sales and improving gross profit are important goals for Zero in 2024. Among them, sales volume will be its top priority, saying that sales volume comes from the competitiveness of products and is closely related to cost, price, service and quality. Earlier, Zhu Jiangming said that the overall gross profit margin of zero-running cars reached 5% in 2024 and 10% in 2025.

In November 2023, Zero Motor and Stellantis Group jointly announced the completion of the global strategic relationship, which is a shortcut for Zero Automobile to open overseas markets. After working with the Stellantis Group, Zero has launched its first new model, the Zero run C10. In addition, Zero Motor and Huawei held a signing ceremony for Hongmeng cooperation on March 15, announcing that it would launch Hongmeng native app development of Zero car APP based on HarmonyOS NEXT Hongmeng Xinghe version. In this regard, Zhu Jiangming revealed that the cooperation between Zero Motor and Huawei is mainly focused on the field of application software and the mobile phone APP based on Huawei Hongmeng system.

Zhu Jiangming once said that the positioning of zero cars is to "buy cars with configurations of 30 to 400000 yuan at a price of 15 to 200000 yuan." it should be noted that models at the level of 150000 to 200000 yuan are currently in the most competitive price range in the market. this also means that zero cars still need to launch new models that are more popular to boost sales.

According to the retail data of the Federation of passengers, the cumulative sales of new energy passenger vehicles in 2023 was 7.74 million, an increase of 36.3 percent over the same period last year, of which BYD sold 2.7061 million vehicles for the whole year, an increase of 50.3 percent over the same period last year, with a market share of 35.0 percent. People in the industry predict that the penetration rate of new energy vehicles may reach 46% in 2024, but there is not much market share left for zero-running cars. How to seize more market share in the highly competitive new energy market is an important task for zero-running cars.

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