Extreme Krypton’s first semi-annual report after listing： revenue exceeds 34.70 billion yuan, target to achieve break-even within the year
On August 21, Extreme Krypton Automobile announced its unaudited quarterly financial results for the first half of 2024, which is also the first semi-annual report of Extreme Krypton Automobile since its listing on the New York Stock Exchange in May this year.
Overall, with the year-on-year growth in sales and the appearance of the scale effect, the revenue of polar krypton in the first half of the year was 34.78 billion yuan, an increase of 63.5% year-on-year.
From the second quarter, under non-US GAAP, the net loss of Kr 865 million yuan in a single quarter. However, Kr said that under Hong Kong accounting standards, after excluding the impact of share payment, the net loss of Kr narrowed significantly to 70 million yuan in the first half of the year, and turned losses into profits in the second quarter.
Looking forward to the second half of the year, Extreme Krypton reiterated that it still maintains the annual sales target of 230,000 vehicles unchanged, and aims to achieve a full-year turnaround under Hong Kong Financial Reporting Standards.
"Despite the pressure, we remain confident in our full-year sales target of 230,000 vehicles in 2024," An Conghui, president of Geely Holding Group and CEO of Extreme Krypton Intelligent Technology, said on the evening of August 21 during the second-quarter earnings call of Extreme Krypton.
In addition, An Conghui also revealed the relevant information of the flagship SUV of Extreme Krypton for the first time. "It is expected that the large flagship SUV model of Extreme Krypton released in the fourth quarter of 2025 will be equipped with two power forms, one is pure electric and the other is super electric hybrid." This means that Extreme Krypton no longer adheres to pure electric.
The gross profit margin of the whole vehicle in the second quarter is 14.2%.
According to the financial report data, in the second quarter of this year, extreme krypton achieved revenue of 20.04 billion yuan, an increase of 58% year-on-year and a 36% increase month-on-month, setting a record high in a single quarter.
Among them, vehicle sales revenue reached 13.438 billion yuan, an increase of 59% over the same period last year; battery and other component sales revenue was about 5.30 billion yuan, an increase of 36.1%; R & D services and other services revenue was 1.30 billion yuan, an increase of 326.8%.
The increase in sales in the second quarter drove the growth of Extreme Krypton’s revenue in the quarter. From April to June this year, the cumulative delivery of Extreme Krypton doubled year-on-year to 54,800 vehicles.
However, in order to sell more new cars, sales and management fees also increased sharply in the second quarter, up 61.3% year-on-year to 2.605 billion yuan. In addition to the impact of equity incentive fees on listing expenses in May, the expansion of domestic and overseas offline channels also increased expenses.
An Conghui revealed that as of the end of July, there were 438 global Krypton stores, which are expected to expand to more than 520 by the end of the year, further penetrating domestic third- and fourth-tier cities.
In terms of research and development, the R & D expenditure of polar krypton reached 2.624 billion yuan in the second quarter of this year, an increase of nearly 90% year-on-year and an increase of 36% month-on-month; polar krypton said in the performance report that the growth was mainly due to salary distribution.
Affected by the growth in sales expenses and R & D expenses, the gross profit margin of Extreme Krypton’s automobiles in the second quarter increased by only 0.6 percentage points year-on-year to 14.2%, basically the same as that in the first quarter.
After the release of the second quarter performance report, Extreme Krypton reiterated that the annual sales target of 230,000 vehicles remained unchanged.
According to the delivery data released by Extreme Krypton, after the first monthly delivery of 20,000 vehicles in June, its delivery in July fell to about 16,000 vehicles; in the first seven months of this year, Extreme Krypton cars delivered 103,500 vehicles, an increase of 89% year-on-year, 45% of the annual sales target.
This means that in order to meet this year’s sales target, Krypton must achieve an average monthly sales of more than 25,000 units in the next five months, which is still a challenge for Krypton.
The flagship SUV model will be equipped with pure electric and super electric hybrid power forms, and will be released next year
In order to achieve sales targets, JK Auto is expected to launch two new models, JK 7X and JK MIX, in the second half of this year.
An Conghui revealed that the Extreme Krypton 7X will make its world debut at the Chengdu Auto Show at the end of August and is expected to be launched at the end of September. The Extreme Krypton MIX will be officially launched in the fourth quarter. Both models will be equipped with Extreme Krypton’s self-developed Haohan Smart Drive 2.0.
Looking ahead to next year, Extreme Krypton will launch a flagship SUV in the fourth quarter. This new car, Extreme Krypton, will give up the pure electric route and provide two power modes of pure electric and super electric hybrid. An Conghui did not disclose more details of the new power form during the earnings call, only saying that the Extreme Krypton super electric hybrid system will be released in the future. It is a new power form that combines the advantages of pure electric, plug-in hybrid and range extension technology, ensuring that in all pure electric driving experiences, high-speed energy consumption and mileage can be taken into account.
As for how to distinguish the market positioning of Extreme Krypton and Lynk & Co., An Conghui said that there is no conflict between the Extreme Krypton and Lynk & Co brands. "We have a brand management committee within our company to strictly manage each of our brands to ensure that there is no overlap between products." Secondly, from the perspective of brand positioning, Extreme Krypton is positioned as a high-end luxury brand, while Lynk & Co is positioned as a mid-to-high-end brand, so at the brand level, the two have their own characteristics. Extreme Krypton’s large SUV is a product developed based on a vast architecture. The high platform and generalization characteristics of this architecture help to maximize cost-effectiveness.
In addition to the large flagship SUV, Krypton also has a new hunting vehicle based on the 007 architecture, which will be launched next year.
In response to the model replacement controversy: there is no annual iteration plan for three models such as the new polar krypton 009 in the coming year
Geely Automobile also released its semi-annual report on the same day that Geely Automobile disclosed its first-half results. At Geely Automobile’s mid-term results conference, An Conghui publicly responded for the first time to the controversy caused by the replacement of the two models of JK 001 and 007.
"I think people will definitely ask this question today," he admitted. "Before the launch, there was indeed a lack of communication with users, which caused some complaints and complaints from users."
An Conghui said that the new polar krypton 009, as well as the 2025 polar krypton 001,Polar Krypton 007From the date of product release, there is no annual iteration plan for the next year; however, the normal OTA software upgrades or optional configuration changes for vehicles will still be maintained.
In addition, for the Mobileye smart driving system used by Extreme Krypton in the early stage, An Conghui said that "it will continue to develop and iterate", and will retain Mobileye smart driving system products in China.
The model replacement storm originated a week ago. On August 13, Extreme Krypton released 2025 Extreme Krypton 001 and 2025 Extreme Krypton 007. The price was 259,000 yuan and 209,900 yuan respectively, causing controversy.
Since 2023, Krypton 001 has undergone three renovations, and the replacement cycle has been continuously compressed. The 2025 new car has been updated in less than half a year. Among them, the old model cannot be upgraded to Haohan Smart Drive 2.0 because of the Mobileye smart drive solution.
"Extreme Krypton will focus on software iteration next, so that users can have a better intelligent experience, and the smart driving function of the Mobileye solution will continue to develop and iterate." An Conghui explained that the original intention of the rapid iteration of Extreme Krypton products is to hope that users can quickly use the latest technology and better product experience. "How to solve the relationship between product iteration and old users in the future is a difficult and correct thing."
Zhang Bing, Shell Financial Reporter, Beijing News
Editor, Yue Cai Zhou
Proofreading, Mu Xiangtong