AutoBeta(AutoBeta.net)08/16 Report--

On the evening of August 15, Zero released its results for the first half of 2024. Financial data show that in the first half of 2024, the operating income of zero-running cars was 8.85 billion yuan, an increase of 52.2 percent over the same period last year, ranking at the forefront of new forces; the net loss was 2.212 billion yuan, narrowing 2.8 percent from the same period last year; and the gross profit margin was 1.1 percent, a sharp improvement over the same period last year. As a reference, the gross profit margin of zero-running cars was-1.4% in the first quarter and 2.8% in the second quarter.

Zero said that the increase in gross profit margin was mainly due to the economies of scale brought about by sales growth and continued cost control, and is expected to perform better in the second half of the year. As for the increase in gross profit during the reporting period, but the loss did not narrow significantly, it was due to increased R & D investment in the first half of the year, especially in the second quarter, including the future development of new models and increased investment in smart driving technology. Of this total, R & D expenditure was 1.221 billion yuan, an increase of 48.4% over the same period in 2023.

As of the end of June, the net cash inflow of zero-running car operation was 270 million yuan, the funds on hand reached 16.49 billion yuan, and the asset-liability structure maintained a healthy level.

As a car manufacturer, the revenue performance of zero-running cars is closely related to its delivery performance. In the first half of the year, a total of 86696 zero-running cars were delivered, an increase of 94.8 percent over the same period last year, setting an all-time high in the first half of the year. According to the plan, the annual sales target of zero-running cars this year is 250000-300000, which means that the target completion rate of zero-running cars in the first half of the year is 34.68%.

Reviewing the development process of zero-running car, it has been 9 years since its establishment in 2015, but the real development is in recent years. In September 2022, Zero Auto was listed on the Hong Kong Stock Exchange, becoming another new car-building force after Wei Xiaoli. By contrast, the current zero-running cars are still losing money. According to the financial report, the net loss of zero-running cars in 2023 was 4.216 billion yuan, which was smaller than the net loss of 5.109 billion yuan in 2022.

So far, Zero cars on sale include Zero S01, Zero T03, Zero C11, Zero running C01, Zero running C11 extended range, Zero running C10, Zero running C16. Among them, Zero C10 launched seven models with a price range of 12.88-168800 yuan on March 2, and Zero C16 launched six models with a price range of 155800-185800 yuan on June 28th. The car is positioned as a medium-and large-sized SUV with 6 seats, with two options of extended range and pure electric. The C16 has totaled more than 10,000 cars in its first month on the market, making it the largest number of zero-running cars ordered in the first month, officials said.

In addition to the layout of new products, zero-running cars are also actively exploring 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 running International) joint venture company, in which Zero Motor owns 49% of the shares held by the Leapmotor International Stellantis Group. According to the plan, Zero International Plan will begin to sell and deliver C10 and T03 in Europe from September 2024. So far, nearly 2000 C10 and T03 have been shipped to Europe by sea.

It is understood that in the next two years, zero-running cars will further launch competitive models. Zhu Jiangming, founder and chairman of Zero Automobile and CEO, disclosed at the 2024 interim results conference call that Zero aims to become the top eight auto groups in the Chinese market by sales this year. It should be noted that with the increasing competition in the new energy track, zero-running cars are bound to face fierce competition.

According to the latest data, the number of zero-running cars delivered in July was 22100, up 54.12% from a year earlier, setting an all-time high for next month. It also delivered more than 20, 000 vehicles for two consecutive months, and zero-running cars are expected to meet their sales targets on schedule. However, compared with other new car-building forces, zero-running cars still have room for improvement in terms of delivery volume. As a reference, the ideal car delivery volume in July is 51000, an increase of 49.41% over the same period last year, setting an all-time high for monthly delivery.

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