Breakeven & Synergies
Q: What conditions ensure break-even in 2025?
A: Management explained that strong integration of Lynk & Co and Zeekr with tightened R&D and SG&A controls, along with cost‐saving initiatives, will underpin their path to breakeven and improved margins (targeting 15% vehicle margin).

2026 Outlook
Q: What are 2026 product and CapEx targets?
A: They projected forming a luxury group with nearly 1 million global sales, modest CapEx increases through synergy realizations, and continued margin improvements.

Sales Target
Q: Can 710,000 unit sales be met in 2025?
A: The management remains confident in achieving the target with a split of 390K Lynk & Co and 320K Zeekr units, supported by new model launches and robust product competitiveness.

Gross Margin Guidance
Q: How will margins improve by Q4 2025?
A: They are aiming for a consolidated 15% vehicle margin—about a 3% uplift over the previous year’s level—driven by supply chain synergies and operational efficiency.

R&D Budget
Q: What is the R&D spend outlook?
A: R&D expenses are expected to show a slight single-digit increase from last year’s RMB1.2–1.3 billion, reflecting continued platform investments and efficiency improvements.

ADAS & Infotainment
Q: When will unified ADAS solutions be deployed?
A: Efforts are underway to integrate a unified ADAS and infotainment platform across both brands, enhancing technology sharing and cost efficiencies in the near term.

Powertrain Strategy
Q: Will Lynk & Co adopt super hybrid tech?
A: While Zeekr is set to deploy advanced super electric hybrid technology for higher margins, Lynk & Co will continue with its EM-P platform, with any transition remaining gradual and not definitively outlined.

Export Strategy
Q: How will exports support growth?
A: The group targets overseas sales to comprise over 10% of total global volume, with clear brand differentiation to avoid internal competition and bolster growth.

Battery Sales
Q: What caused battery sales decline in Q4 2024?
A: The decline was linked mainly to shifts in key customers’ sourcing strategies and adjustments in supply channels, particularly involving changes with Nimble and related suppliers.

Waymo Partnership
Q: Any update on vehicles for Waymo?
A: Shipments to Waymo remain on track, with vehicles built in China and later outfitted with necessary ADAS and software in California to ensure full U.S. regulatory compliance.

Controller and Chips
Q: Are self-developed controllers used for both brands?
A: Yes, both Lynk & Co and Zeekr will utilize the same advanced main controller, and the longstanding cooperation with mobile chip partners will persist.

Model Pipeline Optimization
Q: Will less popular models be cut?
A: Management has streamlined the pipeline by cutting about 20% of projects to prevent internal competition and focus on developing standout hit products.

Platform Investment Benefits
Q: How do platform investments impact costs?
A: Investments in platform technologies—including mechanical, electrical, and ADAS architectures—are expected to yield sustainable cost efficiencies and temper future expenditure.