| Related party balances and transactions |
21.Related party balances and transactions The principal related parties with which the Group had material transactions during the years presented are as follows: | | | Name of Entity or Individual | | Relationship with the Company | Geely Automobile Holdings Limited (“Geely Auto”) | | Shareholder of the Company | Zhejiang Geely Holding Group Company Limited (“Geely Holding”) | | Shareholder of the Company | Subsidiaries of Geely Auto | | Companies controlled by the Geely Auto | Affiliates of Geely Auto | | Companies significantly influenced by the Geely Auto | Subsidiaries of Geely Holding | | Companies controlled by the Geely Holding, excluding Geely Auto and its subsidiaries | Affiliates of Geely Holding | | Companies significantly influenced by Geely Holding | Entities controlled by ultimate shareholders | | Companies controlled by shareholders of Geely holding | Affiliates of entity controlled by ultimate shareholders | | Companies significantly influenced by entity controlled by ultimate shareholders | Zhejiang Haohan, Time Geely and Xinyueneng | | Equity investees of the Group |
(a)The Group entered into the following significant related party transactions and had the following balances with its related parties: | | | | | | | | | | | | | Year Ended December 31, | Nature of transactions | | Relationship with the Group | | 2022 | | 2023 | | 2024 | | | | | RMB | | RMB | | RMB | Revenue from vehicle sales | | Geely Holding | | 1,350 | | 5,234 | | 698 | | | Subsidiaries of Geely Auto | | 2,649 | | 5,072 | | 120,438 | | | Subsidiaries of Geely Holding | | 6,030 | | 18,488 | | 2,658 | | | Affiliates of Geely Holding | | 28 | | 60,631 | | — | | | Entities controlled by ultimate shareholders | | 44,539 | | 3,674 | | 25,517 | | | Affiliates of entity controlled by ultimate shareholders | | — | | — | | 1,049,299 | | | Equity Investees of the Group | | 249 | | 2,200 | | — | | | | | 54,845 | | 95,299 | | 1,198,610 | | | | | | | | | | Revenue of research and development and other services | | Geely Auto | | — | | — | | 141 | | | Geely Holding | | 156 | | 363,181 | | 168,054 | | | Subsidiaries of Geely Auto | | 7,755 | | 1,776 | | 163,522 | | | Affiliates of Geely Auto | | 87,020 | | 522,292 | | 657,308 | | | Subsidiaries of Geely Holding | | 1,636,799 | | 2,082,185 | | 1,447,201 | | | Affiliates of Geely Holding | | 19,598 | | 50,526 | | 343,084 | | | Entities controlled by ultimate shareholders | | 3,660 | | 1,608 | | — | | | Affiliates of entity controlled by ultimate shareholders | | 330 | | 268 | | 7,270 | | | Equity Investees of the Group | | 1,756 | | — | | — | | | | | 1,757,074 | | 3,021,836 | | 2,786,580 | | | | | | | | | | Revenue of sales of batteries and other components | | Subsidiaries of Geely Auto | | 1,802,779 | | 3,262,575 | | 2,077,267 | | | Affiliates of Geely Auto | | 1,663,519 | | 2,730,324 | | 6,422,130 | | | Subsidiaries of Geely Holding | | 6,410,920 | | 8,435,631 | | 7,990,028 | | | Affiliates of Geely Holding | | — | | 26,206 | | 159,628 | | | Entities controlled by ultimate shareholders | | 256,155 | | — | | 14,743 | | | Equity Investees of the Group | | 102,490 | | 117 | | 8 | | | | | 10,235,863 | | 14,454,853 | | 16,663,804 |
21.Related party balances and transactions (Continued) (a)The Group entered into the following significant related party transactions and had the following balances with its related parties: (Continued) | | | | | | | | | | | As of December 31, | Nature of balances | | Relationship with the Group | | 2023 | | 2024 | | | | | RMB | | RMB | Amounts due from related parties relating to operating activities | | Geely Auto | | — | | 462 | | | Geely Holding | | 589 | | 12,624 | | | Subsidiaries of Geely Auto | | 543,298 | | 749,294 | | | Affiliates of Geely Auto | | 2,301,831 | | 1,313,131 | | | Subsidiaries of Geely Holding | | 3,896,237 | | 3,646,546 | | | Affiliates of Geely Holding | | 281,061 | | 328,923 | | | Entities controlled by ultimate shareholders | | 284 | | 24,132 | | | Affiliates of entity controlled by ultimate shareholders | | 2,523 | | 9,036 | | | Equity Investees of the Group | | 8,923 | | 35,959 | | | | | 7,034,746 | | 6,120,107 | | | | | | | | Amounts due from related parties relating to disposal of PPE | | Subsidiaries of Geely Holding | | 122,115 | | — |
The movement of allowance for uncollectible accounts receivables generated from related parties and recorded as amounts due from related parties for the years ended December 31, 2022, 2023 and 2024 are as follows: | | | | | | | | | Year Ended December 31, | | | 2022 | | 2023 | | 2024 | | | RMB | | RMB | | RMB | Beginning of the year | | 13,232 | | 9,276 | | 4,271 | Provision of allowance for credit loss | | — | | — | | 43,441 | Reversal of allowance for credit loss | | (3,956) | | (5,005) | | (12,244) | End of the year | | 9,276 | | 4,271 | | 35,468 |
| | | | | | | | | | | | | Year Ended December 31, | | | | | 2022 | | 2023 | | 2024 | | | | | RMB | | RMB | | RMB | Loans and advances to related parties | | Subsidiaries of Geely Auto(1) | | 26,223 | | — | | — | | | Equity Investees of the Group(2) | | — | | 100,000 | | — | | | | | 26,223 | | 100,000 | | — |
| (1) | Advances to related parties are non - interest bearing and due on demand. |
| (2) | On January 13, 2023 a subsidiary of the Group entered into a twelve - month loan of RMB100,000 with an equity investee of the Group, bearing the annual interest rate of 3.65%. On September 5, 2024 the loan of RMB 100,000 was fully repaid. |
21.Related party balances and transactions (Continued) (a)The Group entered into the following significant related party transactions and had the following balances with its related parties: (Continued) | | | | | | | | | | | | | Year Ended December 31, | Nature of transactions | | Relationship with the Group | | 2022 | | 2023 | | 2024 | | | | | RMB | | RMB | | RMB | Purchases of vehicles and vehicle related parts | | Subsidiaries of Geely Auto(1) | | — | | — | | 938,462 | | | Affiliates of Geely Auto(1) | | — | | 4,244,910 | | 1,964,618 | | | Subsidiaries of Geely Holding(1) | | 18,605,099 | | 25,550,683 | | 44,179,420 | | | Equity Investees of the Group | | 196,570 | | 147,501 | | 154,551 | | | | | 18,801,669 | | 29,943,094 | | 47,237,051 | | | | | | | | | | Purchase of batteries and other components related | | Subsidiaries of Geely Auto | | — | | 13,190 | | 410 | | | Subsidiaries of Geely Holding | | — | | 3,214,878 | | 4,398,658 | | | Affiliates of Geely Holding | | — | | 273,875 | | — | | | Affiliates of entity controlled by ultimate shareholders | | — | | 5,911 | | 35 | | | Equity Investees of the Group | | — | | 21,292 | | 64,881 | | | | | — | | 3,529,146 | | 4,463,984 | | | | | | | | | | Purchases of property and equipment | | Geely Holding | | 4 | | — | | — | | | Subsidiaries of Geely Auto | | 19,950 | | 26,458 | | 18,319 | | | Affiliates of Geely Auto | | 261 | | 10 | | 10 | | | Subsidiaries of Geely Holding | | 76,093 | | 63,810 | | 72,019 | | | Affiliates of Geely Holding | | — | | 13,086 | | 1,417 | | | Entities controlled by ultimate shareholders | | 10,480 | | 28,534 | | 20,178 | | | Equity Investees of the Group | | 14,486 | | 9,026 | | 4,679 | | | | | 121,274 | | 140,924 | | 116,622 | | | | | | | | | | Purchases of services | | Geely Auto | | — | | — | | 1,487 | | | Geely Holding | | 946 | | 8,356 | | 12,133 | | | Subsidiaries of Geely Auto | | 485,390 | | 224,795 | | 1,383,233 | | | Affiliates of Geely Auto | | 48,210 | | 110,180 | | 193,391 | | | Subsidiaries of Geely Holding | | 2,456,325 | | 2,744,748 | | 902,192 | | | Affiliates of Geely Holding | | 2,851 | | — | | 22,739 | | | Entities controlled by ultimate shareholders | | 78,933 | | 121,001 | | 396,737 | | | Affiliates of entity controlled by ultimate shareholders | | 719 | | 29,322 | | 504,895 | | | Equity Investees of the Group | | 3,041 | | 27,559 | | 182,319 | | | | | 3,076,415 | | 3,265,961 | | 3,599,126 | | | | | | | | | | Interest expense | | Geely Holding | | 11,976 | | 2,926 | | — | | | Subsidiaries of Geely Auto | | — | | 2,680 | | — | | | Subsidiaries of Geely Holding | | 187,435 | | 169,636 | | 36,673 | | | Equity Investees of the Group | | — | | 762 | | — | | | | | 199,411 | | 176,004 | | 36,673 |
| (1) | The Group has entered into cooperation framework arrangements with Ningbo Hangzhou Bay Geely Auto Parts Co., Ltd. (“Zeekr Factory”), and Zhejiang Jirun Meishan Automobile Parts Co., Ltd. (“Meishan Factory”), subsidiaries of Geely Holding, Sichuan Lynk&Co Automobile Manufacturing Co., Ltd (“Chengdu Factory”), an affiliate of Geely Auto, and Zhejiang Jirun Automobile Co.,Ltd (“Chunxiao Factory”), a subsidiary of Geely Auto, for the manufacturing of Zeekr Models. The Group purchased vehicles at a price made up of costs of direct materials, overheads plus fixed mark-ups. |
21.Related party balances and transactions (Continued) (a)The Group entered into the following significant related party transactions and had the following balances with its related parties: (Continued) | | | | | | | | | | | As of December 31, | Nature of balances | | Relationship with the Group | | 2023 | | 2024 | | | | | RMB | | RMB | Amounts due to related parties relating to operating activities | | Geely Auto | | — | | 1,908 | | | Geely Holding | | 4,417 | | 5,790 | | | Subsidiaries of Geely Auto | | 400,079 | | 1,059,107 | | | Affiliates of Geely Auto | | 1,914,689 | | 217,232 | | | Subsidiaries of Geely Holding(1) | | 13,569,206 | | 12,948,159 | | | Affiliates of Geely Holding | | 331,400 | | 23,578 | | | Entities controlled by ultimate shareholders | | 51,965 | | 85,617 | | | Affiliates of entity controlled by ultimate shareholders | | 11,460 | | 15,198 | | | Equity Investees of the Group | | 54,362 | | 108,812 | | | | | 16,337,578 | | 14,465,401 | | | | | | | | Amounts due to related parties relating to financing activities | | Subsidiaries of Geely Holding(2) | | 1,100,000 | | — | | | | | | | | Amounts due to related parties in connection with acquisition of long-term investments and purchases of property and equipment | | Subsidiaries of Geely Auto | | 1,028 | | 16,907 | | | Subsidiaries of Geely Holding | | 17,296 | | 27,320 | | | | | 18,324 | | 44,227 |
(1) | As of December 31, 2023 and 2024, RMB11,970,679 and RMB11,833,393 were recorded in relation to the purchase of vehicles, respectively. |
| (2) | On November 30, 2022, the Group through a subsidiary entered into another ten-year loan of RMB1.6 billion with a subsidiary of Geely Holding and repaid RMB400,000 and RMB100,000 in June and July 2023, respectively. The ten-year loans bear the annual interest rate of 4.5%. In 2024, the Group has fully repaid all the remaining RMB1,100,000 with no outstanding balance as of December 31, 2024. |
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