| Segment reporting |
23.Segment reporting The Company continually monitors and reviews its segment reporting structure in accordance with Topic 280 to determine whether any changes have occurred that would impact its reportable segments. The Chief Executive Officer is identified as the chief operating decision maker (CODM). The Group reports segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Group’s reportable segments. The Group organized its operations into three segments: Zeekr Segment: Consists of the vehicle operations and distribution located domestically and overseas, and certain electric vehicle research and development services primarily operate within PRC. Viridi Segment: Consists of the batteries and other components manufacturing operations located in PRC, with batteries and other component distributed to Europe and PRC. Viridi segment also provides research and development services on batteries within PRC. ZTE Segment: Consists of research and development operation located in Sweden, with service delivered primarily to related parties in China. The Group evaluates the performance of its reportable segments and decides to allocate resources (including employees and financial or capital resources) based on segment gross profits. Segment gross profit for each segment includes net revenues, cost of revenues directly attributable to the segment. The Group does not include intercompany transfers between segments for management reporting purposes. 23.Segment reporting (Continued) The table below provides a summary of the Group’s reportable segment results for the year ended December 31, 2022. | | | | | | | | | | | Year Ended December 31, 2022 | | | Zeekr | | Viridi | | ZTE | | | | | Segment | | Segment | | Segment | | Total | Revenue from external customers | | 20,577,054 | | 10,391,787 | | 930,607 | | 31,899,448 | Intersegment revenues(1) | | 52,987 | | 2,407,337 | | 1,509,320 | | 3,969,644 | | | 20,630,041 | | 12,799,124 | | 2,439,927 | | 35,869,092 | Reconciliation of revenue | | | | | | | | | Elimination of intersegment revenues | | | | | | | | (3,969,644) | Total consolidated revenues | | | | | | | | 31,899,448 | Less: | | | | | | | | | Cost of revenue(2) | | 19,587,442 | | 11,628,709 | | 1,958,945 | | 33,175,096 | Segment gross profit | | 1,042,599 | | 1,170,415 | | 480,982 | | 2,693,996 | | | | | | | | | | Reconciliation of segment gross profit | | | | | | | | | Total segment gross profit | | | | | | | | 2,693,996 | Research and development expense | | | | | | | | (5,446,320) | Selling, general and administrative expense | | | | | | | | (4,245,317) | Other operating income, net | | | | | | | | 67,764 | Interest expense | | | | | | | | (283,731) | Interest income | | | | | | | | 112,142 | Other (expenses) income, net | | | | | | | | (31,679) | Elimination of intersegment profits | | | | | | | | (221,946) | Loss before income tax expense and share of losses in equity method investments | | | | | | | | (7,355,091) | | | | | | | | | | Other segment disclosures(3) | | | | | | | | | Research and development expense | | (5,554,174) | | (111,521) | | — | | (5,665,695) | Selling, general and administrative expense | | (3,628,867) | | (432,271) | | (184,179) | | (4,245,317) |
The table below provides a summary of the Group’s reportable segment results for the year ended December 31, 2023. | | | | | | | | | | | Year Ended December 31, 2023 | | | Zeekr | | Viridi | | ZTE | | | | | Segment | | Segment | | Segment | | Total | Revenue from external customers | | 35,614,648 | | 15,268,315 | | 789,655 | | 51,672,618 | Intersegment revenues(1) | | — | | 2,934,885 | | 1,469,472 | | 4,404,357 | | | 35,614,648 | | 18,203,200 | | 2,259,127 | | 56,076,975 | Reconciliation of revenue | | | | | | | | | Elimination of intersegment revenues | | | | | | | | (4,404,357) | Total consolidated revenues | | | | | | | | 51,672,618 | Less: | | | | | | | | | Cost of revenue(2) | | 29,822,710 | | 17,248,985 | | 1,994,036 | | 49,065,731 | Segment gross profit | | 5,791,938 | | 954,215 | | 265,091 | | 7,011,244 | | | | | | | | | | Reconciliation of profit or loss (segment gross profit) | | | | | | | | | Total segment gross profit | | | | | | | | 7,011,244 | Research and development expense | | | | | | | | (8,369,207) | Selling, general and administrative expense | | | | | | | | (6,920,561) | Other operating income, net | | | | | | | | 261,188 | Interest expense | | | | | | | | (256,081) | Interest income | | | | | | | | 94,624 | Other (expenses) income, net | | | | | | | | 50,587 | Elimination of intersegment profits | | | | | | | | (160,714) | Loss before income tax expense and share of losses in equity method investments | | | | | | | | (8,288,920) | | | | | | | | | | Other segment disclosures(3) | | | | | | | | | Research and development expense | | (8,027,863) | | (258,396) | | — | | (8,286,259) | Selling, general and administrative expense | | (6,212,764) | | (549,456) | | (158,341) | | (6,920,561) |
23.Segment reporting (Continued) The table below provides a summary of the Group’s reportable segment results for the year ended December 31, 2024. | | | | | | | | | | | Year Ended December 31, 2024 | | | Zeekr | | Viridi | | ZTE | | | | | Segment | | Segment | | Segment | | Total | Revenue from external customers | | 58,051,686 | | 17,029,492 | | 831,473 | | 75,912,651 | Intersegment revenues(1) | | 530,456 | | 981,952 | | 1,518,871 | | 3,031,279 | | | 58,582,142 | | 18,011,444 | | 2,350,344 | | 78,943,930 | Reconciliation of revenue | | | | | | | | | Elimination of intersegment revenues | | | | | | | | (3,031,279) | Total consolidated revenues | | | | | | | | 75,912,651 | Less: | | | | | | | | | Cost of revenue(2) | | 48,633,475 | | 15,624,844 | | 1,848,630 | | 66,106,949 | Segment gross profit | | 9,948,667 | | 2,386,600 | | 501,714 | | 12,836,981 | | | | | | | | | | Reconciliation of profit or loss (segment gross profit) | | | | | | | | | Total segment gross profit | | | | | | | | 12,836,981 | Research and development expense | | | | | | | | (9,720,213) | Selling, general and administrative expense | | | | | | | | (9,647,404) | Other operating income, net | | | | | | | | 459,743 | Interest expense | | | | | | | | (69,906) | Interest income | | | | | | | | 171,030 | Investment income | | | | | | | | 726,973 | Other (expenses) income, net | | | | | | | | (105,849) | Elimination of intersegment profits | | | | | | | | (389,530) | Loss before income tax expense and share of losses in equity method investments | | | | | | | | (5,738,175) | | | | | | | | | | Other segment disclosures(3) | | | | | | | | | Research and development expense | | (9,314,259) | | (1,021,330) | | (35,603) | | (10,371,192) | Selling, general and administrative expense | | (8,666,793) | | (646,905) | | (333,706) | | (9,647,404) |
(1) | Included in the revenue recorded by the Viridi Segment above, sales of battery packs and components were made to Zeekr Factory and the Chengdu Factory for the manufacturing of Zeekr models on an OEM basis in the amount of RMB2,402,657, RMB2,871,045 and RMB662,124 for the years ended 31, 2022, 2023 and 2024, respectively. |
(2) | Cost of revenue is easily computable and the only significant segment expense. |
(3) | The other segment disclosures are the items regularly provided to the CODM but not be included in the segment gross profit. Intersegment expenses are included within the amounts shown. |
23.Segment reporting (Continued) The table below provides a summary of the Group’s reportable segment assets as of December 31, 2022, 2023 and 2024: | | | | | | | | | Year Ended December 31, | | | 2022 | | 2023 | | 2024 | | | RMB | | RMB | | RMB | Total Assets | | | | | | | Zeekr Segment | | 9,618,203 | | 16,746,231 | | 24,393,390 | Viridi Segment | | 9,708,876 | | 12,058,165 | | 11,291,598 | ZTE Segment | | 3,567,993 | | 3,189,275 | | 2,701,888 |
The following tables represent revenues by geographic area based on the sales location: | | | | | | | | | Year Ended December 31, 2022 | | | China | | Europe | | Other | | | RMB | | RMB | | RMB | Vehicle | | 19,671,247 | | — | | — | Batteries and other components | | 7,463,851 | | 2,759,550 | | 94,421 | Research and development and others | | 1,713,272 | | 44,017 | | 153,090 | Total | | 28,848,370 | | 2,803,567 | | 247,511 |
| | | | | | | | | Year Ended December 31, 2023 | | | China | | Europe | | Other | | | RMB | | RMB | | RMB | Vehicle | | 32,889,346 | | 44,315 | | 978,101 | Batteries and other components | | 10,388,319 | | 4,194,542 | | 109,756 | Research and development and others | | 2,697,682 | | 368,166 | | 2,391 | Total | | 45,975,347 | | 4,607,023 | | 1,090,248 |
| | | | | | | | | Year Ended December 31, 2024 | | | China | | Europe | | Other | | | RMB | | RMB | | RMB | Vehicle | | 52,035,381 | | 729,442 | | 2,550,483 | Batteries and other components | | 11,166,201 | | 5,581,185 | | 46,432 | Research and development and others | | 3,297,411 | | 471,356 | | 34,760 | Total | | 66,498,993 | | 6,781,983 | | 2,631,675 |
23.Segment reporting (Continued) The following table summarized the Group’s long-term assets, including property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and other non-current asset by geographical region: | | | | | | | | | Year Ended December 31, 2023 | | | China | | Sweden | | Other | | | RMB | | RMB | | RMB | Total long-term assets | | 5,248,201 | | 706,906 | | 139,095 |
| | | | | | | | | Year Ended December 31, 2024 | | | China | | Sweden | | Other | | | RMB | | RMB | | RMB | Total long-term assets | | 5,675,293 | | 656,404 | | 155,562 |
Other than China, there were no countries that individually represented more than 10% of the total revenue for the years ended December 31, 2022, 2023 and 2024. Other than China and Sweden, there were no countries that individually represented more than 10% of the total long-lived assets as of December 31, 2023 and 2024.
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