AutoBeta(AutoBeta.net)05/31 Report--

Zero Auto recently adjusted its internal marketing system, merging the original three major sales departments, namely, the channel sales department, the industry sales department and the retail management team into a single "sales department", according to a report by 21 Caijing. The head of the sales department reported to Xu Jun, chief operating officer (COO). At the same time, Zero Automobile also abolished the company's overseas development department, the company no longer set up a separate overseas business, the relevant team members were transferred to the vehicle product line, service department and management and marketing operation department.

Zero-running car has something to do with its weak performance in the domestic market. In addition, in November last year, Zero announced the completion of a global strategic relationship with the Stellantis Group, which industry insiders said was a shortcut for Zero to open overseas markets. On May 14 this year, Zero Motor and Stellantis Group jointly held a press conference to announce the formal establishment of Leapmotor International B.V. (Zero International) joint venture company, headquartered in Amsterdam, the Netherlands, in which Zero Motor owns 49% of the shares held by the Stellantis Group. It is understood that the first new model launched by Zero car after cooperation with Stellantis Group is Zero run C10, which is defined as the first touchstone for the success of the cooperation between the two sides.

Zero running Automobile, which was founded in 2015 and has been nine years old, 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. In September 2022, zero-running cars were listed on the Hong Kong Stock Exchange. Although zero-running cars have become another new car-building force after Wei Xiaoli, zero-running cars are actually a new second-tier force compared with Wei Xiaoli. And there are obvious differences with the first three.

According to the financial report, the revenue of zero-running cars in 2023 was 16.75 billion yuan, an increase of 35.2% over the same period last year; the gross profit margin for the whole year was 0.5%, becoming a regular employee for the first time. As a comparison, the gross profit margin in 2022 was-15.4%; and the operating cash flow became a regular employee for the first time for the whole year, 1.08 billion yuan. For comparison, Wei Xiaoli's gross profit margin in 2023 was 5.5%, 1.5% and 22.2%, respectively.

For the realization of a positive gross profit margin, Zero cars said that it was 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%.

It is worth mentioning that although zero-running cars' revenue reached a new high in 2023, and the gross profit and cash flow became regular for the first time in the whole year, zero-running cars still had a net loss of 4.216 billion yuan in 2023, narrowing compared with 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.

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. Up to now, Zero car has six models: zero run S01, zero run T03, zero run C11, zero run C01, zero run C11 extended range, zero run C10.

Zhu Jiangming, founder, chairman and CEO of Zero Automobile, said that 2024 will be very challenging for all car companies, and sales and improving gross margin are important goals for Zero Automobile 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. As for the "big knife" on the marketing system, whether it can help zero-running cars achieve their goals faster remains to be tested by the market.

According to the latest financial report, revenue from zero-running cars in the first quarter of 2024 was 3.4862 billion yuan, an increase of 141.7% over the same period last year, but a net loss of 1.013 billion yuan and a gross profit margin of-1.4%. The total car delivery volume was 33410, an increase of 217.9% over the same period last year.

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