零跑汽车（9863.HK）2025年第一季度业绩电话会
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会议摘要
Leading Car's performance in the first quarter of 2025 is remarkable, with a 187.1% year-on-year increase in revenue, a record high gross profit margin of 14.9%, and a narrowing of losses. Sales volume increased by 162.1%, leading among China's new energy vehicle brands. The company maintains a stable gross profit margin through cost optimization, collaborates with strategic partners to develop new products, and implements a strategy of adding features and reducing prices for the redesigned C series. Rapid expansion in overseas markets with localization production projects in Malaysia and Europe expected to start production within the year, pricing strategy focuses on market development and brand building. The goal is to expand the channel to over 1000 stores, strengthening terminal marketing capabilities. The issue of battery supply for the B10 model is expected to be resolved soon, without affecting the production of new vehicles. There is a strong focus on European regulations and advancing localization strategies.
会议速览
Leading Automobile's Q1 2025 Performance Conference CallAt the quarterly performance conference call held by Leading Car on May 20, 2025, Yin Xincheng, the automotive industry analyst at Citic Securities, presided over the meeting. Attendees included Kang Kai, an automotive industry analyst at Citic Securities, as well as Leading Car's CFO Li Tengfei, co-presidents Wu Qiang and the board secretary Shen Ke. Before the meeting started, Shen Ke read out a disclaimer, emphasizing that the content of the meeting includes forward-looking statements based on the company's existing and future business development strategies. However, there are known and unknown risks and uncertainties that may cause actual performance to differ from the statements. Therefore, investors should not overly rely on these forward-looking statements, and the company does not take responsibility for updating or revising the statements. In addition, the content of the meeting does not constitute investment advice or a basis for investment decisions. Shareholders and potential investors should make rational judgments and act prudently.
Ling Pao Motors' performance report for the first quarter of 2025.In the first quarter of 2025, Zeekr Auto's revenue was 10.02 billion yuan, a year-on-year increase of 187.1%, mainly benefiting from the increase in sales volume and optimization of product mix. The gross profit margin reached a historic high of 14.9%, with year-on-year improvement mainly due to the increase in sales volume, cost management, and product mix optimization. The first quarter net loss attributable to equity holders was 130 million yuan, with the loss narrowing mainly due to the improvement in gross profit. As of March 31, 2025, cash and cash equivalents totaled 25.7 billion yuan. The first quarter delivery volume was 87,552 units, a year-on-year increase of 162.1%. As of April 9, cumulative deliveries exceeded 700,000 units. The first model on the all-new B platform has delivered over 10,000 units after standard listing, with orders exceeding 18,000 units from May 1 to May 5, and over 3,700 units in orders received on May 5 alone.
Leading Car: Innovative Technology Sets a New Benchmark for SUVsLeading Car has created the B10 model based on the new P3.5 architecture, setting a new benchmark for the value of 120,000-level SUVs with leading configurations such as advanced LiDAR, Qualcomm 8650 support chips, and Qualcomm 8295 intelligent cabin chips. The B10 has gained the trust and good reputation of young users, winning 18 awards within the first month of its launch. The B series' first sedan, the B01, debuted at the 2025 Shanghai International Auto Show, showcasing a globalized young lifestyle focusing on technology, nature, and aesthetics, with a 650 km range and the strongest intelligent configuration in its class. The 2026 model 410 features the latest electronic and electrical architecture, being the only product in its class with a pure electric 600 km range and a universal 800V high-voltage fast charging platform. Leading Car continues to innovate in research and development, with the deep 3.5 technology architecture achieving super integration and super intelligence of software and hardware, significantly improving research and development efficiency and fund utilization with its self-developed capabilities.
Leading Automobile's 2025 First Quarter Sales and Service Performance ReportAs of March 31, 2025, the company has established 756 sales outlets and 449 service outlets, covering 279 cities, with new coverage of 97 cities. The single-sided telesales ratio in the first quarter increased by 50% compared to the first quarter of 2024, user experience indicators continued to improve, core operational indicators steadily increased, effective market share increased by 9.3%, providing an average of 15,000 consulting services per day and 3,300 test drive services. In terms of service, by improving service process standards and spare parts supply guarantee, basic service capabilities have been comprehensively upgraded, with a 97.8% one-time repair rate for vehicle maintenance and a 90.8% 48-hour spare parts delivery rate. Overseas market expansion is accelerating, with exports reaching 13,632 units, establishing over 500 overseas sales and service points, with over 450 in Europe and nearly 50 in the Asia-Pacific market.
Leading the way, the 410 Malaysia assembly project launches and maintains a continuous lead in ESG.The company and Selantis Group announced that they will launch the flagship 410 assembly project in Johor, Malaysia by the end of 2025, and plan to achieve European localization manufacturing in 2026 to expand the European market. The company has received the MSCIESGAAG international authoritative rating for the second consecutive year, demonstrating its industry-leading position in environmental, social, and governance aspects. In addition, the company donated 5 million RMB to the Zhejiang Provincial Disabled Welfare Foundation in the first quarter, supporting technology-assisted public welfare projects for the disabled, aiming to improve the quality of life and social participation of disabled people. In the future, the company will deepen the integration of ESG with its core business, actively respond to global sustainable development trends, and create long-term value for all stakeholders.
Financial performance report for the first quarter of 2025.In the first quarter of 2025, the company's revenue was 10.02 billion yuan, with a year-on-year and quarter-on-quarter decrease, mainly due to the impact of the Spring Festival holiday. Sales costs were 8.53 billion yuan, with a gross profit margin of 14.9%, both due to increased sales volume and improved cost management. In terms of operating expenses, research and development, sales, and administrative expenses all increased. Operating profit was negative 1.5 billion yuan, with a net profit attributable to equity holders of 1.3 billion yuan, with the narrowed loss mainly due to improved gross profit. Cash and cash equivalents were 25.7 billion yuan, with free cash flow of negative 3.6 billion yuan.
Better-than-expected performance in the first quarter of 2025 and outlook for the full year.In the first quarter of 2025, the company's performance significantly exceeded market expectations, especially in terms of gross profit margin, which shone brightly, mainly due to the increase in gross profit brought by strategic cooperation. Although it is expected that the gross profit margin will slightly decline in the second quarter, the company aims to achieve breakeven in the second quarter with the launch of new car models and good sales expectations. The annual sales target is set at 500,000 to 600,000 units, with a gross profit margin expected to be between 10% and 12%. The company is confident in achieving the annual sales target.
CITIC automotive analysts and management discuss the first quarter performance and future outlook for 2025.In this discussion, the China Automotive analyst and the company management delved into the performance and strategic cooperation revenue ratio for the first quarter of 2025, as well as the full-year revenue guidance and profit situation. The management pointed out that, despite a slight decline in sales in the first quarter, the gross profit margin remained stable due to cost optimization. In addition, regarding the redesign of the C series models, the management stated that through a strategy of adding options and lowering prices, they are practicing the concept of passing on benefits to consumers while ensuring the achievement of the annual gross profit margin target. In the second quarter, with the launch of new products, it is expected that the gross profit margin will return to the desired level.
Discussion on the first quarter performance and gross profit margin of export business of ZTE Automobile.In the discussion on May 20, 2025, the management team provided detailed answers to questions regarding the company's first quarter strategic partnerships, product development, and export business gross profit margin. They emphasized that current strategic partnerships are mainly focused on jointly developing more competitive new products with partners, which had a positive impact on gross profit in the first quarter. Additionally, although the gross profit margin of the export business is not high, it is sufficient to cover R&D expenses. Regarding feedback from the test drive market and pricing strategy, the management team stated that the user feedback is good, with a large order volume, and emphasized the importance of product maturity and safety. They also mentioned that the pricing strategy is not influenced by competitors and will remain consistent.
Bank of America Securities inquires about product strategy and progress in overseas markets.The dialogue mainly revolves around two key issues: one is how to optimize the company's SUV product line (including 410, 411, and 416) strategies to reduce internal competition and maximize total sales; the second is the latest progress of overseas production capacity, strategies to deal with tariffs, pricing strategies, and expected profits in overseas markets. For the SUV product line, the company has successfully achieved good performance of multiple products in their respective segmented markets through precise market segmentation and differentiation positioning. In terms of overseas markets, the company has initiated projects in Malaysia and plans to achieve localized mass production in Europe. Meanwhile, the overseas pricing strategy aims to balance revenue and market share, with initial focus on market development rather than high profits.
Impressive first quarter performance and overseas market layout of the automobile company.During the discussion, it was mentioned that the company achieved impressive results in the first quarter, with a particular emphasis on the outstanding performance of overseas wholesale data in April, around 6000 units. Additionally, it was mentioned that global terminal sales in April were at a level of around 3000 units. Furthermore, the discussion delved into the differentiated adjustments for different markets in order to adapt to the various consumption characteristics, user habits, climate conditions, and infrastructure of different automotive markets around the world.
Differentiated development of global car models and market adaptability adjustments.In the context of globalization, the company is making differentiated adjustments to the car models being developed to meet the legal regulations and special requirements of different markets. These adjustments are not limited to the European market, but also include major target markets such as South America, the Middle East, and Asia-Pacific. The scope of adjustments involves air conditioning efficiency, emission standards, etc., to adapt to local market specific requirements and legal regulations. By collaborating with local partners who have been deeply rooted in the market for many years, the company is able to better collect user demand information and make products more suitable for the target market. With the development experience of models from 903 to C10, B10 to B03, etc., the company has become increasingly adept at developing car models for different markets globally.
Analysis of Company's Strategic Partnerships and Gross Margin Issues.During the discussion, the management explained that the types of products developed in collaboration with strategic partners cannot be disclosed due to confidentiality agreements, and emphasized that different strategic partnerships have a huge impact on profit margins and should not be compared with each other. The company values long-term and in-depth cooperation with strategic partners, as well as enhancing competitiveness through complementary advantages, rather than focusing on short-term high profits. Despite the possible differences in profit margins with some competitors, the company insists that cooperation should be mutually beneficial in order to better cope with fierce market competition.
Impressive business performance and channel and supply chain strategies in the first quarter of 2025.The company's performance in the first quarter was impressive, and the management team shared their strategies for channel construction and supply chain management. This year, the goal for opening new stores is to exceed 1000, with nearly 800 stores currently open, and there is a strong emphasis on win-win and profitability with distributors. By utilizing a new retail model, the company has strengthened its terminal marketing capabilities through online systems, and the efficiency of telemarketing is significantly improved. The issue with the battery supplier is expected to be resolved by the end of May, which will not affect the launch and production of new vehicles. The level of telemarketing in first, second, and third-tier cities is relatively evenly matched.
Hua Xi Automobile Consultation on Progress of European Minimum Price Regulations.At the meeting on May 20, 2025, participants of HuaXi Motors inquired about the specific details of the minimum pricing regulations in Europe. The management responded that the regulations have not been officially implemented yet, and with changes in international relations, the situation is constantly evolving. The company is closely monitoring and relying on the expertise of their partner, Lanz Group, to timely receive and respond to updates on relevant laws and regulations. At the same time, the company emphasized that localization strategy is key to overseas expansion, and regardless of how regulations may change in the future, localization is essential.
Leading car 3.5 architecture cost savings and leading international operation mode analysisThis meeting discussed the cost savings of the LePao Automotive 3.5 architecture compared to the 3.0 architecture, pointing out that the cost savings brought by high integration can reach 30% to 40%. At the same time, it detailed the operational model of LePao International as a sales and future manufacturing integrated company, emphasizing that its initial focus is on global brand promotion and market expansion, rather than immediately pursuing high profits. Management stated that with the achievement of strategic goals, the profit prospects of LePao International are promising. At the end of the meeting, management thanked investors and analysts for their participation and invited them to continue to pay attention to the development of LePao Automotive.
要点回答
Q：What is the revenue in the first quarter of 2025 in RMB? What is the year-on-year growth rate?
A：In the first quarter of 2025, the revenue was 10.02 billion RMB, an increase of 187.1% year-on-year.
Q：What is the gross profit margin in the first quarter of 2025, setting a new historical high? What are the gross profit margins in the same period of 2024 and the fourth quarter of 2024, respectively?
A：In the first quarter of 2025, the gross profit margin reached a historic high of 14.9%, compared to -1.4% in the same period of 2024 and 13.3% in the fourth quarter of 2024.
Q：How many cars were delivered in the first quarter of 2025? How much did it increase compared to the same period in 2024?
A：In the first quarter of 2025, the number of car deliveries was 87,552, an increase of 162.1% compared to the same period in 2024.
Q：When will the first model of the brand new B platform be launched? How is the delivery situation after the launch?
A：The first model of the all-new B platform will be officially launched on April 10, 2025, with over ten thousand units delivered after its launch.
Q：When did the first sedan of the B series, B01, make its appearance at the Shanghai International Auto Show? What are the key highlights of the B01?
A：The first sedan in the B series, B01, will debut at the Shanghai International Auto Show on April 23, 2025. The key highlights of B01 include global aesthetic design, class-leading 650km range, the strongest intelligent features in its class, and the best quality in its class.
Q：What architecture is carried by the 410 model launched on May 15, 2025, and what are its highlights?
A：The 410 model launched on May 15th, 2025 is equipped with the latest live 3.5 electronic electrical architecture. It is the only product in its class with a pure electric range of 600 kilometers and a universal 800-volt high-voltage fast charging platform. The chassis hardware has been re-calibrated and upgraded.
Q：On March 10, 2025, the Japanese company announced what technology architecture? What upgrades were achieved on the deep 3.0 technology?
A：On March 10, 2025, the company announced the deep 3.5 technology architecture, which achieved super integration of software and hardware and super intelligent upgrades based on deep 3.0 technology. It adopted the combination solution of Qualcomm 8650 support chip and Qualcomm 8295 intelligent cockpit chip, realizing functions such as integrated auxiliary driving and cockpit driving.
Q：What competitive advantages has the company gained in research and development efficiency and capital utilization through global independent research and development?
A：The company adheres to independent research and development in all areas, gradually expanding its competitive advantage in R&D and capital utilization efficiency. For example, it only took six months to achieve the Qualcomm 8650 assisted driving solution on the Deep 3.5 architecture, and will continue to increase resource allocation. It is expected to invest over 800 million RMB in the bracket support by 2025.
Q：In terms of sales channels, as of March 31, 2025, what is the company's store layout situation? What are the specific plans for channel construction in 2025?
A：As of March 31, 2025, our company has established 756 sales stores and 449 service stores, covering 279 cities. Compared to March 2024, we have expanded our coverage to an additional 97 cities. The effectiveness of the One Plus N model is significant, with a total of 289 excellent flagship stores and 467 experience stores in Japan. In addition, in the first quarter of 2025, the single-side telemarketing has increased by 50% compared to the first quarter of 2024.
In 2025, the company will continue to deepen channel construction in first and second-tier cities, improve channel quality and operational capabilities, and is expected to add coverage to 80 blank counties and cities by the end of the year, with a coverage rate of cities at the prefecture level or above reaching 90%. At the same time, we will accelerate the layout speed of flagship stores and city showrooms to further penetrate core automotive business districts. In terms of retail, we are committed to optimizing key user experience indicators, steadily increasing core operational indicators, such as a 4% increase in effective follow-up rate and a 9.3% increase in effective market share, while continuing to provide consultation and test drive services.
Q：What progress has the company made in its globalization strategy?
A：In the first quarter of 2025, the company's expansion in overseas markets accelerated, with exports reaching 13,632 units, making it the car company with the largest export volume among new energy vehicle brands. The company has established over 500 outlets worldwide, each providing sales and after-sales services, with over 450 in Europe and nearly 50 in the Asia-Pacific market. Compared to the previous period, the company has added over 100 overseas stores.
Q：What are the highlights in terms of service in 2025?
A：In 2025, the company will create a sophisticated user service system with the core service concept of "saving 3.2 yuan". By increasing service process standards, establishing a spare parts supply guarantee system, and enriching the variety of original accessories, it will rely on a digital service matrix to achieve a comprehensive upgrade of basic service capabilities. In the first quarter, the service response was rapid, with a response rate of 99.4% within 15 minutes by the exclusive service group, a vehicle repair success rate of 97.8% on the first attempt, and a spare parts delivery rate of 90.8% within 48 hours.
Q：What are the plans for the future of manufacturing and production? How is the company performing in terms of environment, social, and governance aspects?
A：On April 18, 2025, the company announced that it will launch the leading assembly project in Malaysia with the Atlantis Group at its factory in Kedah state, Malaysia, aiming to assemble 410 units by the end of 2025. The company also plans to achieve localization manufacturing in Europe in 2026 to accelerate expansion in the European market. This quarter, the company has been awarded the MSCIESGAAG international authority rating, demonstrating the company's continued efforts and industry-leading position in environmental, social, and governance aspects for the second consecutive year.
Q：How is the investment situation regarding social responsibility?
A：In the first quarter of 2025, the company donated 5 million RMB to the Zhejiang Provincial Disabled Persons' Welfare Foundation to support technology-assisted public welfare projects for disabled individuals, improve their quality of life and social participation.
Q：In terms of financial performance, how did the first quarter of 2025 perform specifically?
A：In the first quarter of 2025, revenue was RMB 100.2 billion, a decrease of 18.71% compared to the same period in 2024 and a decrease of 25.6% compared to the fourth quarter of 2024. This decrease was mainly due to a seasonal sales decline caused by the Spring Festival holiday offsetting the growth brought by increased sales volume. There were corresponding changes in sales costs, gross profit margin, research and development expenses, sales expenses, and administrative expenses. The operating profit was negative RMB 1.5 billion, compared to negative RMB 11.3 billion in the same period last year. The main reason for the return to profit in this period is that the improvement in gross profit level exceeded the increase in expenses.
Q：How is the cash and free cash flow situation?
A：As of March 31, 2025, the total amount of cash and cash equivalents was RMB 25.7 billion. The net cash generated from operating activities in the first quarter of 2025 was RMB 340 million, a year-on-year increase mainly due to an increase in product delivery volume, optimization of gross margin, and enhanced management of operating cash flow. Free cash flow was negative RMB 360 million, a year-on-year decrease mainly due to the decrease in delivery volume resulting in a decrease in operating cash flow and the impact of payment term rhythm.
Q：Based on the gross profit margin in the first quarter, what are our expectations for the gross profit margin and performance in the second quarter? Does the company anticipate an increase in gross profit margin guidance for the full year?
A：From the overall performance in the first quarter, our performance was impressive, especially with a significant improvement compared to the same period last year. The gross profit margin in the first quarter increased compared to the fourth quarter of 2024, and this high gross profit margin was mainly due to the increase in gross profit brought by strategic cooperation. However, the gross profit margin at the vehicle end has slightly declined compared to the level in the fourth quarter of 2024. Looking ahead to the second quarter, with new and old products (models 410, 416, and the C11 mid-term facelift) scheduled to be launched one after another, we will face issues related to the combination of new and old products. It is expected that the gross profit margin in the second quarter will have a slight decrease compared to the first quarter.
Q：What are our expectations for second quarter sales? Considering the gross profit margin level in the second quarter, how do we anticipate the level of net profit? Will the full-year sales guidance be adjusted?
A：The overall trend of sales in the second quarter is good, with the estimated sales ranging from 130,000 units to 131,400 units. Therefore, we are confident in the second quarter sales. Based on this sales and gross profit margin expectations, the target is to achieve breakeven in the second quarter. The annual sales guidance is 500,000 to 600,000 units, with an overall gross profit margin of 10% to 12%. The annual goal is to achieve breakeven. The performance in the first quarter has further strengthened our confidence in achieving the annual guidance, and there are currently no plans to adjust the annual guidance.
Q：Could you provide a breakdown of the revenue generated through strategic partnerships in the first quarter, as well as a framework guidance for annual revenue from strategic partnerships or parts-related revenue, and profit guidance?
A：Due to agreements with partners, we are unable to provide specific data. However, we can state that the gross profit of complete vehicles in the first quarter, excluding the strategic cooperation portion, remained relatively stable compared to the fourth quarter of 2024, with a slight decrease. The main reason for this is the increase in fixed expenses due to lower overall sales compared to the fourth quarter. Although we have promotional activities on some models, we have offset the impact of these promotions through cost optimization, and the overall gross profit level has been consistent with the fourth quarter of 2023. As for the strategic cooperation projects throughout the year, progress has been smooth, and negotiations for future projects are actively ongoing.
Q：How do you determine the price for exporting new energy vehicles to Europe with regard to tariff issues?
A：We follow market rules and determine product prices based on market price fluctuations. Overall pricing is based on the positioning of leading brands in overseas markets and the local competitive environment. While ensuring the flexibility of IPMI logical income, we also focus on opening up overseas markets and establishing brand image. Therefore, overseas pricing pays more attention to the overall boutique pricing level.
Q：What are the company's expectations for investment returns from leading international companies?
A：In the early days of Zero International, we did not expect to make huge profits immediately, but rather hoped to invest more of the funds earned into market development to accelerate overall market promotion and expand global sales and influence. Therefore, there may not be particularly large profits in international investment returns this year and next year.
Q：Can you share some of the terminal data for the overseas market that Leading International wholesaled in April?
A：Wholesale data in April was around six thousand units, influenced by the launch of new products (such as the 410 model) and sales entering new markets. The overall end sales volume in the international market in April was approximately 3000 units.
Q：Will we make differentiated adjustments when laying out different markets based on the consumption characteristics of different global automobile markets?
A：Overall, there will be some differentiated adjustments, but the size of the adjustments varies depending on the legal requirements of different markets. The models we are developing are global vehicles, and will make certain adjustments for major target markets such as Europe, South America, the Middle East, and the Asia-Pacific region. For example, specific adjustments will be made for the Middle Eastern market to the air conditioning cooling effect and efficiency, while for the Brazilian market, adaptations and developments will be made for extended-range models to meet emission standards.
Q：What type of products have we developed with our strategic partners? Can you provide a range of gross profit margin levels?
A：Due to confidentiality requirements, it is not convenient to disclose the specific product types developed jointly with strategic partners. Regarding the level of gross profit margin, we believe that different forms of strategic cooperation, purposes, and cooperative relationships have a significant impact on gross profit, so we do not refer to the gross profit margin levels of other companies in the industry. Our cooperation with strategic partners focuses on a win-win situation and long-term in-depth cooperative relationships, rather than solely pursuing high gross profit. What we value is enhancing competitiveness through complementary advantages to deal with the intense market competition environment.
Q：What is our overall channel store opening target for this year?
A：Our channel goal this year is to surpass 1000 stores. Currently, in this quarter, we have nearly 800 stores, which is close to the target number of 1000. We always adhere to the principle of cooperation and symbiosis, making the profitability of distributors the top priority in channel management. Currently, the profitability of distributors is leading in the industry, and the usage rate of phone sales in new stores is higher, supporting rapid growth.
Q：In terms of production scheduling, how are the issues related to B10 orders and supply chain production scheduling being resolved?
A：The battery supply issues encountered during the B10 production scheduling will be resolved by the end of May, involving suppliers and announcement schedules. By June, the battery supply will return to normal and will not affect the launch plan of the B10 model.
Q：Is there a significant difference in our telemarketing performance between first-tier, second-tier, and third-tier cities?
A：Relatively speaking, the average telemarketing level of first, second, and third-tier cities is relatively close because our channel layout progresses from top to bottom, mainly focusing on cities above fourth-tier and third-tier, and maintains relatively uniform coverage in the downward process, adhering to the concept of "opening one store, making it profitable, increasing quantity, and making money".
Q：Is the specific situation of the European minimum pricing regulations clear?
A：Currently, the regulation has not yet been clearly issued in written form. However, with the changes in US-Europe and China-Europe relations, we will closely monitor relevant laws and regulations and stay in sync with the professional team of our partner, Lanze Group, to develop corresponding strategies. We firmly believe that localization is the only way to go international.
Q：Compared to the 3.0 architecture, what improvements does the 3.5 architecture have in terms of cost savings, and approximately how much is the level of savings?
A：The 3.5 architecture has achieved a cost reduction of approximately 30% to 40% through overall integration enhancement and adjustment of intelligent assistance driving solutions.
Q：What is the current gross profit margin and sales research and development expenses of Leading the Way International, and how is the breakeven point defined?
A：At present, Leading International operates as a sales company, but in the future, it will become a company that integrates sales and manufacturing. Regarding gross profit margin, Leading International has maintained a good situation since it started selling in September last year, and it has also remained stable from January to April of this year. Although there is a certain level of gross profit margin for both vehicle sales and spare parts sales, we focus more on its rapid promotion in the global market and increasing sales volume. As for the breakeven point, due to its positioning and strategic considerations, Leading International currently focuses more on market expansion rather than pursuing short-term profits.
