In a landmark disclosure marking its debut as a consolidated entity, Zeekr Technology Group has released its inaugural financial results, revealing a robust performance that underscores its accelerating influence in the global electric vehicle (EV) sector. The report, covering the fourth quarter and full year ending December 31, 2024, highlights the group’s strategic consolidation of the Zeekr and Lynk & Co brands under a unified corporate structure—a move analysts describe as emblematic of broader shifts within China’s automotive industry.
Financial Performance and Operational Metrics
The combined entity reported annual revenue of CNY 113.89 billion (£12.7 billion), a 39% year-on-year increase, driven primarily by vehicle sales contributing CNY 94.56 billion (£10.5 billion), up 48% from 2023. Annual deliveries surpassed 500,000 units, with Zeekr-branded vehicles accounting for over 220,000 units—an 87% surge—while Lynk & Co maintained steady growth with 280,000 units delivered, up nearly 30%.
Notably, Zeekr’s standalone financials demonstrated remarkable resilience, with annual operating revenue reaching CNY 75.9 billion (£8.4 billion), a 47% increase. The brand achieved a quarterly vehicle gross margin of 17.3% in Q4, culminating in an annual figure of 15.6%. Under Hong Kong Financial Reporting Standards, excluding share-based compensation, Zeekr recorded a net profit of CNY 214 million (£23.8 million), signaling its transition toward sustainable profitability.
Strategic Consolidation and Market Positioning
The financial update follows November 2023’s announcement by parent company Geely Holding Group to merge Zeekr and Lynk & Co into a single operational framework. Completed within three months, the restructuring establishes Zeekr Technology Group as a dual-brand powerhouse targeting premium and mass-market EV segments. Industry observers view this as a strategic response to intensifying competition, where scalability and technological synergies are critical for long-term viability.
This consolidation mirrors broader trends across China’s automotive landscape. For instance, Great Wall Motor’s ORA brand recently migrated its digital services to the parent company’s platform, while SAIC Motor reabsorbed its Flying Auto subsidiary after three years of independent operation. Such moves reflect an industry-wide recognition that fragmented brand architectures and overlapping product portfolios dilute competitive edge in an era where innovation cycles are accelerating.
Technological Differentiation and R&D Focus
A central theme emerging from Zeekr’s report is its emphasis on proprietary technology development. The group has prioritized investments in its Sustainable Experience Architecture (SEA), a modular EV platform designed to accommodate multiple vehicle classes and propulsion systems. This architecture underpins Zeekr’s recently launched models, including the 009 multi-purpose vehicle and the redesigned 001 shooting brake, both lauded for energy efficiency and advanced driver-assistance systems.
Lynk & Co, meanwhile, continues to leverage its CMA (Compact Modular Architecture) platform, shared with Volvo Cars, to deliver hybrid and fully electric variants. The brand’s latest offering, the Lynk & Co 08 EM-P plug-in hybrid, has gained traction in European markets, particularly in Norway and Sweden, where subscription-based ownership models resonate with younger demographics.
Global Expansion and Infrastructure Readiness
While domestic sales remain the cornerstone of Zeekr’s growth, international expansion features prominently in its roadmap. The brand entered 15 new markets in 2024, including Germany, the UAE, and Australia, supported by partnerships with local charging networks. In Europe, Zeekr has joined the Ionity consortium, granting users access to over 2,500 high-power charging stations. Simultaneously, Lynk & Co has expanded its “Care by Lynk & Co” subscription service to 12 additional countries, emphasizing flexible ownership models tailored to urban mobility needs.
The group’s manufacturing footprint is equally strategic. Its Ningbo facility, operating at 95% capacity utilization, specializes in Zeekr’s premium models, while the Hangzhou plant focuses on Lynk & Co’s volume-oriented vehicles. A newly announced gigafactory in Chongqing, slated for completion in 2026, will integrate battery cell production, reducing reliance on external suppliers and aligning with China’s push for vertical integration in EV supply chains.
Challenges in a Hypercompetitive Landscape
Despite these advances, Zeekr Technology Group navigates a sector where parity in hardware capabilities is eroding traditional differentiators. The company’s leadership acknowledges that software-defined vehicles (SDVs) represent the next battleground. Its in-house development of ZEEKR OS, an Android-based infotainment system, and collaborations with Mobileye for autonomous driving technologies aim to address this shift. However, rivals like NIO and Xpeng are making parallel strides, with the latter’s XNGP advanced driver-assistance system now operational in 52 Chinese cities.
Supply chain volatility presents another hurdle. While lithium carbonate prices have stabilized at CNY 100,000 (£11,100) per tonne—down from 2022 peaks—experts caution that geopolitical tensions and trade restrictions could disrupt battery material flows. Zeekr’s decision to dual-source lithium iron phosphate (LFP) batteries from CATL and CALB, alongside nickel-manganese-cobalt (NMC) cells from Farasis Energy, reflects a risk-mitigation strategy increasingly adopted industry-wide.
Regulatory Tailwinds and Policy Alignment
China’s regulatory environment continues to favor EV adoption, with the Ministry of Industry and Information Technology (MIIT) extending purchase tax exemptions through 2027. Provincial governments have supplemented these measures; Shanghai, for example, offers free license plates for battery electric vehicles (BEVs), a significant incentive in a city where combustion-engine permits auction for over CNY 90,000 (£10,000).
Zeekr’s product cadence aligns with these policies. Its upcoming mid-size SUV, internally codenamed CX1e, targets subsidies-eligible categories with a sub-4.8-meter length and 600 km CLTC range. Lynk & Co’s focus on plug-in hybrids (PHEVs) capitalizes on China’s classification of PHEVs as “new energy vehicles,” granting them access to green license plates and urban driving privileges.
Sustainability Commitments and Circular Economy Initiatives
Environmental, social, and governance (ESG) metrics feature prominently in the group’s disclosures. Zeekr has achieved a 34% reduction in per-vehicle production emissions since 2022 through renewable energy procurement and closed-loop aluminum recycling. Its battery recycling joint venture with GEM Co. has expanded to 12 collection centers nationwide, aiming for 95% material recovery efficiency.
Lynk & Co’s “Design for Disassembly” initiative, which enables component reuse across vehicle lifecycles, has garnered ISO 22628 certification. The brand now offers remanufactured electric drive units with warranties matching new units, appealing to cost-conscious fleets and rental operators.
Workforce Development and Talent Retention
As technological complexity escalates, attracting skilled personnel remains critical. Zeekr Technology Group’s R&D headcount grew 22% year-on-year to 8,500 engineers, with particular emphasis on software and AI specialists. The company has established partnerships with 14 universities, including Tsinghua and Zhejiang University, funding research into solid-state batteries and vehicle-to-grid (V2G) integration.
To curb talent poaching by tech giants and startups, the group implemented equity incentive programs covering 15% of employees. Retention rates improved to 89% in 2024, up from 78% the previous year, though industry-wide shortages in chip design and machine learning persist.
Outlook and Forward-Looking Strategies
Management’s guidance for 2025 projects deliveries between 650,000 and 700,000 units, predicated on the launch of four new models: Zeekr’s CC1e coupe and a Lynk & Co minivan, alongside refreshes of legacy products. Production capacity is expected to reach 800,000 units annually by Q3, with the Chongqing gigafactory commencing pilot output.
Internationally, the group plans to establish CKD (completely knocked-down) facilities in Southeast Asia and Eastern Europe, circumventing trade barriers and localization requirements. A memorandum of understanding with Saudi Arabia’s Public Investment Fund (PIF) explores joint ventures for EV manufacturing in Neom, aligning with the kingdom’s Vision 2030 diversification goals.
Broader Industry Implications
Zeekr Technology Group’s trajectory encapsulates the transformation gripping China’s automotive sector—from fission to fusion, as companies consolidate resources to tackle technological disruption. The success of this model hinges on balancing platform synergies with brand distinctiveness, a challenge evident in Volkswagen Group’s MEB platform strategy and Toyota’s recent restructuring.
For global competitors, the group’s ascent underscores the imperative of matching China’s pace in electrification and digitalization. With legacy automakers like Stellantis and Renault scaling back EV investments in Europe, the window to counter Chinese OEMs’ cost and innovation advantages may be narrowing.
In this context, Zeekr Technology Group’s maiden financial report serves not merely as a corporate milestone but as a bellwether for an industry in flux—where agility, integration, and relentless innovation separate the disruptors from the disrupted. The coming years will test whether its dual-brand strategy can sustain momentum amid economic headwinds, but for now, the numbers suggest a formidable contender has entered the arena.
