On May 20th, Red Star Capital Bureau reported that Zero Run Motors (09863. HK) recently released its Q1 2024 report, achieving a revenue of 3.486 billion yuan, a year-on-year increase of 141.7% and a month on month decrease of 33.9%; The net loss was 1.013 billion yuan, compared to 1.133 billion yuan in the same period last year and 955 million yuan in the fourth quarter of 2023.
Zero Run Motors stated that its year-on-year revenue growth was mainly due to the gradual market recognition of its products and the sales increase brought about by a richer product matrix; The month on month decline is due to the first quarter's facelift and upgrading of all models, adjustments to the production and sales of existing models, and the seasonal impact brought by the Spring Festival holiday.
In the first quarter of this year, Zero Run Automobile delivered a total of 33400 new cars, an increase of 217.9% year-on-year and a decrease of 39.6% month on month.
Due to the decline in sales leading to an increase in the cost of manufacturing bicycles, as well as the impact of promotions for old car models, the gross profit margin of Zero Run Motors has fallen back to negative levels, at -1.4%; In the first quarter of 2023, it was -7.8%, in the fourth quarter of 2023 it was 6.7%, and for the entire year of 2023 it was 0.5%.
The research and development expenses of Zero Run Automobile in the first quarter were 520 million yuan, an increase of 26.1% year-on-year and a decrease of 16.5% month on month; Sales expenses were 430 million yuan, an increase of 8.8% year-on-year and a decrease of 19.8% month on month; Administrative expenses were 140 million yuan, a year-on-year decrease of 22.9% and a month on month decrease of 44.6%.
As of March 31, 2024, the cash and cash equivalents, restricted cash, financial assets recognized in profit or loss at fair value, and bank fixed deposits held by Lingpao Automobile amounted to RMB 17.584 billion, a decrease of RMB 1.8 billion from the end of 2023.
It is worth noting that Zero Run Motors is about to embark on a large-scale sea voyage. After nearly 200 days of strategic cooperation with Stellantis Group, the joint venture company Zero Run International was officially established on May 14th. Except for Greater China, the joint venture company has the exclusive right to export and sell to all other markets worldwide, as well as the exclusive right to manufacture Zero Run automotive products locally.
Lingpao International is owned by Stellantis Group and Lingpao Automobile, with 51% and 49% respectively, and is led by Stellantis Group. It will start sales in 9 European countries in September this year and plans to expand its sales outlets in Europe to 200 by the end of this year and 500 by 2026. In terms of vehicle models, the Zero Run C10 and T03 will be the first to enter the European market this year, and at least one new car will be launched every year for the next three years. The company also plans to launch the above-mentioned models in the Indian and Asia Pacific, Middle East and Africa, and South American markets starting from the fourth quarter of this year.
Zero Run Automobile Chairman Zhu Jiangming stated that overseas markets will contribute to the company's financial performance. The company will still incur certain losses in 2024, with the goal of achieving positive operating cash flow and plans to achieve profitability by 2025.
Red Star News reporter Wu Danruo