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ZEEKR Intelligent Technology Holding (NYSE:ZK) shares are climbing in Tuesday’s premarket trading as a 117% year-over-year increase in vehicle deliveries and 70% gain in vehicle sales from the same quarter last year fueled a 7% rally Tuesday morning.
The Chinese battery-electric company, which is a division of Geely Automotive Holdings (GELYF, GELYY), reported total revenue of $2.04B, a 71% increase year-over-year and $360M more than what the street expected. Gross profit was up 154.9% to $240.9M and the company’s net loss narrowed by 18% to ($280M), contributing to a wider gross margin of 11.8%, from 7.9%, year-over-year, but down from 14.2% in the previous quarter. The quarter-over-quarter decline was attributed to a greater percentage of battery and component sales which have a lower gross margin than that for vehicle sales. On a per-share basis, an adjusted net loss of $0.14 narrowed from a year ago and was better than Wall Street expected.
Adjusted loss from operations narrowed by 10% from a year ago to ($288.7M) and was 28.5% narrower than the previous quarter.
Recent deliveries included a 99% increase in April year-over-year, while May deliveries were 115% higher from a year ago.
“This sustained growth in deliveries secured our position as the best-selling brand in the battery electric vehicle market segment priced over RMB200,000 in China," CEO Andy An said.
ZEEKR (ZK) debuted on the New York Stock Exchange in May at $26 per share from its initial public offering price of $21 per share. The stock rallied to $29.20 driving its market capitalization to more than $6B, which made it comparable to XPeng (XPEV) and Lucid (LCID).
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