Technology

Group-IB reveals Hi-Tech Crime Trends 23/24: surge in ransomware against backdrop of growing AI, macOS threats

Published

9 months ago

February 29, 2024

SINGAPORE, Feb. 29, 2024 /PRNewswire/ — Group-IB, a leading creator of cybersecurity technologies to investigate, prevent, and fight digital crime, is proud to announce the launch of its new report Hi-Tech Crime Trends 2023/2024, the latest edition of the company’s annual round-up of the most pressing global cyber threats to organizations and individuals. In the research, Group-IB analysts reveal how the unholy alliance between ransomware groups and Initial Access Brokers (IABs) is still the powerful engine for cybercriminal industry, evidenced by the 74% year-on-year increase in the number of companies that had their data uploaded on dedicated leak sites (DLS). Global threat actors also demonstrated increased interest in Apple platforms, exemplified by the fivefold increase in underground sales related to macOS information stealers.

The growing appetite of nation-state sponsored threat actors, also known as advanced persistent threat (APT) groups, has shown that no region is immune to cyber threats. Group-IB experts discovered a 70% increase in the number of public posts offering zero-day exploits for sale, and also identified cybercriminals’ malicious use of legitimate services and artificial intelligence (AI) infused technologies as the main cyber risks for 2024.

The first edition of Hi-Tech Crime Trends was launched 12 years ago, and the information contained in the report enables businesses, NGOs, governments, and law enforcement agencies around the world to fight cybercrime and help potential victims. For the first time, Hi-Tech Crime Trends includes a section outlining the intricate relationship between artificial intelligence (AI) and cybersecurity threats, outlining how this new technology is being leveraged by cybercriminals, including the misuse of large language models (LLM) such as ChatGPT, and the potential risks to corporate data through AI integration.

Nothing artificial about this threat

Threat actors have already shown how AI can help them develop malware only with a limited knowledge of programming languages, brainstorm new TTPs, compose convincing text to be used in social engineering attacks, and also increase their operational productivity.

Large language models (LLM) such as ChatGPT remain in widespread use, and Group-IB analysts have observed continued interest on underground forums in ChatGPT jailbreaking and specialized generative pre-trained transformer (GPT) development, looking for ways to bypass ChatGPT’s security controls. Group-IB experts have also noticed how, since mid-2023, four ChatGPT-style tools have been developed for the purpose of assisting cybercriminal activity: WolfGPT, DarkBARD, FraudGPT, and WormGPT – all with different functionalities.

FraudGPT and WormGPT are highly discussed tools on underground forums and Telegram channels, tailored for social engineering and phishing. Conversely, tools like WolfGPT, focusing on code or exploits, are less popular due to training complexities and usability issues. Yet, their advancement poses risks for sophisticated attacks.

Group-IB’s Hi-Tech Crime Trends 2023/2024 also highlighted the sale of compromised ChatGPT credentials on the dark web, building upon past research. With more employees relying on ChatGPT for work optimization and its storage of past interactions, compromised logins could expose sensitive information, posing significant security risks for businesses.

From January 2023 to October 2023, Group-IB detected more than 225,000 logs up for sale on the dark web containing compromised ChatGPT credentials. Group-IB’s Threat Intelligence platform found these compromised credentials within the logs of information-stealing malware traded on illicit dark web marketplaces.

Notably, the number of compromised hosts with access to ChatGPT detected by Threat Intelligence between June 2023 and October 2023 was more than 130,000, an increase of 36% compared to the preceding five-month period (January-May 2023). The number of available logs containing ChatGPT logs peaked in the final month of the study – in October 2023 – when 33,080 were registered. Group-IB’s analysis found that the majority of the logs containing ChatGPT accounts were breached by the LummaC2 information stealer.

Double trouble: ransomware gangs and initial access brokers wreak havoc

Group-IB’s Threat Intelligence unit constantly monitors all ransomware activity and detected 4,583 companies that had their information, files, and data published on ransomware DLSs in 2023. This marks a growth of 74% compared to the previous year, when 2,629 such posts were made. Group-IB researchers note that the number of total ransomware attacks worldwide is likely to be much larger, with probable instances of organizations paying the ransom or groups deciding not to go ahead with their threat of publishing data on a DLS.

Companies based in North America most commonly appeared in the DLS posts of ransomware groups, accounting for 2,487 (or 54%) of the annual total, and more than double the corresponding figure in 2022 (1,192 companies). Roughly 26% of posts on ransomware DLSs related to companies from Europe (1,186, up 52% YoY) and 10% were from the APAC region (463, up 39% YoY).

The United States was the most common target for ransomware groups, as 1,060 US-based companies were the subject of ransomware DLS posts in 2023. The next most affected countries were Germany (129), Canada (115), France (103), and Italy (100).

In terms of affected industries, attacks as per ransomware DLS on manufacturing (580 instances) and real estate (429) companies rose year-on-year by 125% and 165%, respectively, and these key sectors were the two most targeted worldwide. Notably, Group-IB observed a 88% year-on-year increase in ransomware DLS posts related to healthcare companies, and a 65% rise in posts concerning government and military organizations.

Throughout the reporting period, Group-IB experts uncovered 27 new advertisements for ransomware-as-a-service programs on dark web forums, including well-known groups such as Qilin, as well as other collectives that have yet to be seen in the wild. As was the case in 2022, LockBit was 2023’s most prominent ransomware-as-a-service group with 1,079 posts on its DLS (24% of the annual total). In second place was BlackCat with 427 posts (9% of annual total) and third was Clop (385 posts or 9%).

Researchers also found that Initial Access Brokers (IABs) are continuing to play a significant role in the ransomware market. In 2023, they found 2,675 instances of corporate put up for sale – almost an identical figure compared with 2022, when 2,702 offers were found.

Notably, Group-IB data shows that the average price for corporate access in 2023 was $2,470, which represents a 27% reduction compared to the preceding year. Group-IB analysts believe that this drop in average price is due to a rise in the number of new sellers entering the market that have lowered the price of their offers in order to attract buyers.

Companies in the United States (29%), the United Kingdom (4%) and Brazil (4%) were the most commonly featured in IAB offers. Professional services, government and military organizations, financial services, manufacturing, and real estate were the verticals that appeared most frequently.

APTitude test

Group-IB researchers discovered that the Asia-Pacific region was the world’s main battleground for nation-state sponsored threat actors, also known as advanced persistent threat (APT) groups last year. In sum, Group-IB attributed 523 attacks to nation-state actors across the globe in 2023.

Attacks on APAC organizations accounted for 34% of the global total, with Group-IB experts asserting that this may be due to the high level of financial technology development in this global economic hub in addition to geopolitical tensions. Europe was the second-most targeted region, accounting for 22% of all APT attacks, and the Middle East and Africa (MEA) was third (16% of APT attacks in 2023).

Unsurprisingly, government and military entities were the prime target of APT attacks in 2023, accounting for 28% of the annual figure. This strengthens the theory of Group-IB’s Threat Intelligence unit that APT actors are predominantly striving to gain access to strategically important evidence and weaken government entities in their country or region of target. Financial services (6%), telecommunications (5%), manufacturing, IT and media (all 4%) were also heavily affected, Group-IB researchers found.

In the past year, prominent APT groups, including the North Korean collective Lazarus, launched new tactics. Lazarus executed the first-ever double supply chain attack, exploiting a vulnerability in X_TRADER, a software by Trading Technologies. This allowed access to the network of the widely-used 3CX Desktop App for VoIP calls, compromising a wide range of 3CX clients. Group-IB researchers also noted APT groups’ ongoing malicious use of legitimate services like Dropbox, OneDrive, Google Drive, and messengers like Telegram.

Turbulence ahead

In 2023, cyber threats shifted focus from Windows and Android to Apple platforms due to their rising popularity and market share, with iOS becoming increasingly targeted. Malware spread through the App Store, alongside increased use of Apple cloud services, contributed to this trend. By March 6, 2024, Apple is expected to allow third-party app stores for iOS apps in Europe, posing security concerns amidst 1.7 million app rejections in 2022. Threat actors have already adapted Android schemes to iOS, exemplified by GoldFactory and the GoldPickaxe.iOS malware – аctive in Thailand and Vietnam – which prompts victims to record videos of their faces and submit them to the threat actors, which could be used by the latter to gain unauthorized access to the victim’s banking accounts. Additionally, the number of sales posts on the most popular underground forums (xss[.]is and exploit[.]in) for information stealers designed to operate on macOS increased fivefold in 2023, from 8 in 2022 to 49.

Javascript sniffers, also known as malicious JavaScript code implanted in compromised websites designed to intercept payment card details from customers who make online transactions, are also likely to pose a risk to online store owners, consumers, and banks in 2024. Group-IB researchers discovered 5,037 websites compromised with JS-sniffers in 2023, of which 2,474 were unique. A total of 14 new JS-sniffer families were also discovered in 2023, highlighting the continued development of this threat.

“As highlighted by Group-IB’s Hi-Tech Crime Trends 2023/2024 report, the rise of AI in both legitimate businesses and the cybercriminal underworld was a critical trend of 2023. With the increased misuse of ChatGPT and the development of underground LLM tools, the potential for sophisticated attacks has escalated, compounded by the alarming surge in compromised ChatGPT credentials. This along with cybercriminals’ increased interest in malware designed for macOS demonstrates that it is imperative for organizations to recognize and address this evolving threat landscape, safeguarding sensitive information and fortifying cybersecurity measures to mitigate risks posed by AI-driven cybercrime,” Dmitry Volkov, CEO at Group-IB, said.

A full round-up of the top global threats and invaluable insights from the Group-IB Threat Intelligence unit can be found in the full Hi-Tech Crime Trends 2023/2024 report.

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SOURCE Group-IB

Technology

Avathon Partners with CP PLUS, Largest CCTV Manufacturer in India, to Enhance Public Safety while Strengthening Community Bonds

Published

7 minutes ago

November 14, 2024

PLEASANTON, Calif., Nov. 13, 2024 /PRNewswire/ — Avathon, provider of the leading AI platform for industrial operations, has partnered with CP PLUS, one of the largest manufacturers of CCTV cameras, to create safer, more connected societies by bundling Avathon’s computer vision technology with each camera. The companies are bringing Avathon’s computer vision AI capabilities to small and medium-sized businesses (SMBs) across India, turning their cameras into intelligent assets that enable more secure workplaces, factories and facilities.

In today’s fast-paced world, it’s hard to keep an eye on every single detail, every minute of the day. Computer vision AI technology gives users the freedom and control to go about their daily lives knowing they will receive proactive alerts identifying safety and security issues in real time.

“Increasing demand for advanced public safety tools, smart home devices and integrated AI-powered cameras is fueling massive industry growth,” said Aditya Khemka, Managing Director, CP PLUS, a subsidiary of Aditya Group. “Our partnership with Avathon will help us to better deliver state-of-the-art AI-powered solutions that feature advanced functions like real-time anomaly detection and intelligent monitoring.”

Avathon’s computer vision AI automatically detects and alerts unsafe conditions and incidents in real time, allowing users to proactively take the right actions. Avathon enables business owners using valuable resources to monitor CCTV camera feeds to get back to focusing on operations. The company partners with OEM camera manufacturers by providing AI technology that enables end customers to quickly and accurately address processes, behaviors, and conditions that cause unacceptable risk. Through its partnership with CP PLUS, Avathon has democratized this technology, giving access to large organizations and small businesses alike.

CP PLUS is India’s leading surveillance brand with the most extensive portfolio in the entire global industry. Representing a major share of the Indian CCTV market, CP PLUS offers a range of products and services to meet the varied needs of government, commercial, residential, and industrial customers and its products are successfully deployed in every nook and corner of India and many countries across verticals and industry.

“AI cameras are paving the path forward in India toward smart-city initiatives and enhanced public safety improvements. In this sometimes disconnected world, it’s comforting to rely on a technology that instantly alerts users to potential dangers and other anomalies,” said Pervinder Johar, CEO of Avathon. “We’re proud to partner with CP PLUS to provide the AI innovations needed to push India to the leading edge of technological advancement.”

About Avathon

Avathon, a leader in Industrial AI, extends the life of critical infrastructure while advancing the journey toward full autonomy. Avathon’s Industrial AI platform empowers commercial and government customers with scalable, secure, and value-driven solutions that enhance efficiency and resilience across heavy industry.

Media contact:

Jon Ross
Sr. PR & Communications Manager
Avathon
jross@avathon.com

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SOURCE Avathon

Technology

Belgian Unicorn Odoo Celebrates Remarkable First Anniversary in Indonesia

Published

7 minutes ago

November 14, 2024

JAKARTA, Indonesia, Nov. 14, 2024 /PRNewswire/ — This November, Belgian business management software company Odoo celebrates 1st anniversary of the Indonesian office with esteemed partners and customers like Ismaya, Pertamina Energy Terminal, DORÉ, Dekoruma, Abuba Steak, Perum Bulog and Arista Group, to name a few.

With a mission to help more businesses to become digitally organized, the software company started actively developing the Indonesian market five years ago and has reached record-breaking milestones one after another—91.2% average annual growth and a quadrupled 189 active local partners—making Indonesia the best-performing market in APAC for six consecutive years.

The now locally based Odoo Indonesia is confident in extending services and helping businesses of all sizes in the country to digitally transform business management to contribute to optimized workflow efficiency and national economic growth.

To support rapid market expansion, Odoo will base its operations in BSD as the area embodies the start-up environment the Belgian firm always strives for—vibrant & dynamic—a choice affirmed by its sustained success in digital transformation endeavors across Indonesia.

Odoo opens first SEA office in BSD.

From a squad of 3, Odoo Indonesia has expanded into an over 80-strong team. In 2024, it engaged the community at 41 events in major cities, including Medan, Bandung, Surabaya, and Makassar, and around the archipelago in Java, Sumatra, Kalimantan, and Sulawesi, providing countless on-site support. Within a year of opening, the company introduced multiple landmark integrations and regionalized upgrades.

Odoo-Xendit Integration

Integration with Indonesian-based payment solution provider Xendit is made standard in Odoo to facilitate effortless transactions in Indonesia and across Southeast Asia through QRIS, e-Wallets, convenience stores, and other major payment methods in the region.

e-Faktur Submission

To support the Tax Office e-Faktur application, Odoo now collects necessary data to automate documents to assist users in completing the submission process in compliance with local regulations and is in the last stages of integrating with Pajak.io for direct submission from Odoo.

QRIS Features

The team introduced QRIS into the system to maximize ways to receive payments, facilitating a more convenient and localized payment process for Indonesian Odoo users.

Odoo-Shopee Integration

In October, Odoo announced upcoming integration with Shopee, the leading eCommerce platform in Southeast Asia.

“The opening of Odoo’s new office in BSD marks a significant milestone in our effort to penetrate the Indonesia market. Looking at our journey so far, I am also extremely proud of my team for their relentless contributions in helping our customers become more efficient, one app at a time. Moving forward, we aim to expand the team even more and the best part is: we are always looking for top talents to join us!” — Benny Putra Sugito, Director of Odoo (Indonesia)

Odoo is committed to leading the Indonesian business scene. While its expansion also aims to generate employment opportunities to offer the country a professional workforce in tech and business management, Odoo is resolute in educating the market about the significance of utilizing the right business tools and is dedicated to offering a comprehensive and integrable yet approachable solution to facilitate an easy digital transformation process for 64.2 million businesses of all sizes in Indonesia.

About Odoo

Odoo is a Belgian online business management software with a complete suite of business modules. The open-source service provider operates in 19 locations worldwide, including Indonesia, the United States, Hong Kong SAR, and Dubai. With 80+ official apps and 49k+ third-party apps, Odoo manages businesses’ finance, sales, inventory & manufacturing processes, human resources, marketing, team productivity, and more.

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SOURCE PT Odoo Software Indonesia

Technology

ZEEKR Reports Third Quarter 2024 Unaudited Financial Results

Published

7 minutes ago

November 14, 2024

HANGZHOU, China, Nov. 14, 2024 /PRNewswire/ — ZEEKR Intelligent Technology Holding Limited (“ZEEKR” or the “Company”) (NYSE: ZK), a global premium electric mobility technology company, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Operating Highlights for the Third Quarter of 2024

Total vehicle deliveries were 55,003 units for the third quarter of 2024, representing a 51% year-over-year increase.

Deliveries

2024 Q3

2024 Q2

2024 Q1

2023 Q4

55,003

54,811

33,059

39,657

Deliveries

2023 Q3

2023 Q2

2023 Q1

2022 Q4

36,395

27,399

15,234

32,467

Financial Highlights for the Third Quarter of 2024

Vehicle sales were RMB14,401.3 million (US$2,052.2 million)[1] for the third quarter of 2024, representing an increase of 42.0% from the third quarter of 2023 and an increase of 7.2% from the second quarter of 2024.

Vehicle margin[2] was 15.7% for the third quarter of 2024, compared with 18.1% for the third quarter of 2023 and 14.2% for the second quarter of 2024.

Total revenues were RMB18,358.0 million (US$2,616.0 million) for the third quarter of 2024, representing an increase of 30.7% from the third quarter of 2023 and a decrease of 8.4% from the second quarter of 2024.

Gross profit was RMB2,941.8 million (US$419.2 million) for the third quarter of 2024, representing an increase of 28.5% from the third quarter of 2023 and a decrease of 14.7% from the second quarter of 2024.

Gross margin was 16.0% for the third quarter of 2024, compared with 16.3% for the third quarter of 2023 and 17.2% for the second quarter of 2024.

Loss from operations was RMB1,216.4 million (US$173.3 million) for the third quarter of 2024, representing a decrease of 19.3% from the third quarter of 2023 and a decrease of 29.3% from the second quarter of 2024. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP)[3] was RMB1,169.8 million (US$166.7 million) for the third quarter of 2024, representing a decrease of 20.8% from the third quarter of 2023 and an increase of 50.5% from the second quarter of 2024.

Net loss was RMB1,139.1 million (US$162.3 million) for the third quarter of 2024, representing a decrease of 21.7% from the third quarter of 2023 and a decrease of 37.0% from the second quarter of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB1,092.6 million (US$155.7 million) for the third quarter of 2024, representing a decrease of 23.4% from the third quarter of 2023 and an increase of 26.3% from the second quarter of 2024.

[1] All conversions from Renminbi(“RMB”) to U.S. dollars (“US$”) are made at an exchange rate of RMB7.0176 to US$1.00, set forth in the H.10 statistical release of the Federal Reserve Board on September 30, 2024.

[2] Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of revenues derived from vehicle sales only.

[3] The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this announcement.

Key Financial Results

(in RMB millions, except for percentages)

2024 Q3

2024 Q2

2023 Q3

% Change i

YoY

QoQ

Vehicle sales

14,401.3

13,438.2

10,143.7

42.0 %

7.2 %

Vehicle margin

15.7 %

14.2 %

18.1 %

(2.4)pts

1.5pts

Total revenues

18,358.0

20,040.1

14,044.6

30.7 %

(8.4) %

Gross profit

2,941.8

3,449.8

2,289.4

28.5 %

(14.7) %

Gross margin

16.0 %

17.2 %

16.3 %

(0.3)pts

(1.2)pts

Loss from operations

(1,216.4)

(1,721.0)

(1,507.8)

(19.3) %

(29.3) %

Non-GAAP loss from operations

(1,169.8)

(777.1)

(1,477.6)

(20.8) %

50.5 %

Net loss

(1,139.1)

(1,808.8)

(1,455.7)

(21.7) %

(37.0) %

Non-GAAP net loss

(1,092.6)

(864.9)

(1,425.6)

(23.4) %

26.3 %

Except for vehicle margin and gross margin, absolute changes instead of percentage changes are presented.

Recent Developments

Delivery Update

In October 2024, the Company delivered 25,049 vehicles, representing an increase of 92% from October 2023.

New Model Launches

On October 23, 2024, ZEEKR officially launched and commenced deliveries of the ZEEKR MIX, a five-seat, family-oriented vehicle. The ZEEKR MIX redefines the concept of an everyday driver, seamlessly combining ample space, outstanding safety, and agile handling. As the first model built on the Company’s SEA-M architecture, the ZEEKR MIX boasts up to 93% in-cabin space utilization, maximizing interior space through innovative packaging and a capsule-style exterior. Two front-row seats that can swivel 270 degrees and a movable central console enhance cabin versatility, enabling “9+N” cabin scenario modes and flexible seating arrangements.

CEO and CFO Comments

“Our performance remained strong and resilient this quarter, marked by record-high deliveries and successful new model launches,” said Mr. Andy An, ZEEKR’s chief executive officer. “In the third quarter, we set a new record with 55,003 vehicle deliveries, representing a 51% year-over-year increase, and reached an additional milestone in October with monthly deliveries of 25,049 units. Notably, the ZEEKR 7X’s deliveries exceeded 20,000 units within 50 days since its launch, marking a robust achievement in the highly competitive mainstream SUV market. As we expand our product lineup and strengthen each model’s position in its respective category, we are delivering ZEEKR’s ultimate driving experience to more users, further cementing ZEEKR’s industry leadership.”

Mr. Jing Yuan, ZEEKR’s chief financial officer, added, “Our disciplined cost control measures, coupled with ongoing optimization of product structure, economies of scale, and technological innovation, drove a 30.7% year-over-year increase in revenue. Vehicle sales for the quarter grew by 42.0% and 7.2% year-over-year and quarter-over-quarter, respectively. Meanwhile, vehicle margin remained on an upward trajectory, rising to 15.7% in the third quarter of 2024, highlighting our consistent progress in profitability enhancement. Looking ahead, we will continue to consolidate resources, strengthen product capabilities, and expand our industry presence to propel our sustainable growth.”

Financial Results for the Third Quarter of 2024

Revenues

Total revenues were RMB18,358.0 million (US$2,616.0 million) for the third quarter of 2024, representing an increase of 30.7% from RMB14,044.6 million for the third quarter of 2023 and a decrease of 8.4% from RMB20,040.1 million for the second quarter of 2024.

Revenues from vehicle sales were RMB14,401.3 million (US$2,052.2 million) for the third quarter of 2024, representing an increase of 42.0% from RMB10,143.7 million for the third quarter of 2023, and an increase of 7.2% from RMB13,438.2 million for the second quarter of 2024. The year-over-year increase was due to the increase in new product delivery volume, partially offset by the lower average selling price due to the different product mix and pricing strategy changes between the two quarters. The quarter-over-quarter increase was mainly attributable to the launch of the ZEEKR 7X new model in the third quarter of 2024 and the higher average selling price resulting from changes in product mix.

Revenues from sales of batteries and other components were RMB3,245.3 million (US$462.5 million) for the third quarter of 2024, representing a decrease of 1.3% from RMB3,288.8 million for the third quarter of 2023 and a decrease of 38.8% from RMB5,299.2 million for the second quarter of 2024. The revenues from sales of batteries and other components remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly driven by lower sales volume of battery packs in the domestic market.

Revenues from research and development service and other services were RMB711.4 million (US$101.4 million) for the third quarter of 2024, representing an increase of 16.2% from RMB612.1 million for the third quarter of 2023 and a decrease of 45.4% from RMB1,302.6 million for the second quarter of 2024. The year-over-year increase was mainly due to the increased sales of after-sales vehicle services. The quarter-over-quarter decrease was mainly due to the decreased sales of research and development services to related parties.

Cost of Revenues and Gross Margin

Cost of revenues was RMB15,416.2 million (US$2,196.8 million) for the third quarter of 2024, representing an increase of 31.1% from RMB11,755.2 million for the third quarter of 2023 and a decrease of 7.1% from RMB16,590.2 million for the second quarter of 2024. The year-over-year increase was mainly attributable to the increase in vehicle delivery volume and the quarter-over-quarter decrease was mainly attributable to the decrease in sales of batteries and other components.

Gross profit was RMB2,941.8 million (US$419.2 million) for the third quarter of 2024, representing an increase of 28.5% from RMB2,289.4 million for the third quarter of 2023 and a decrease of 14.7% from RMB3,449.8 million for the second quarter of 2024.

Gross margin was 16.0% for the third quarter of 2024, compared with 16.3% for the third quarter of 2023 and 17.2% for the second quarter of 2024. The gross margin remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly attributable to the decreased margins on batteries and other components.

Vehicle margin was 15.7% for the third quarter of 2024, compared with 18.1% for the third quarter of 2023 and 14.2% for the second quarter of 2024. The year-over-year decrease was primarily attributed to the lower average selling price of ZEEKR vehicles due to the different product mix and pricing strategy changes between the two quarters, partially offset by the procurement savings as the cost of auto parts and materials decreased. The quarter-over-quarter increase was mainly due to the change in product mix.

Operating Expenses

Research and development expenses were RMB1,966.2 million (US$280.2 million) for the third quarter of 2024, representing a decrease of 2.6% from RMB2,018.1 million for the third quarter of 2023 and a decrease of 25.1% from RMB2,623.5 million for the second quarter of 2024. Research and development expenses remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly due to a one-off, large quantity of share-based compensation expenses in the second quarter, conditioned on the Company’s initial public offering.

Selling, general and administrative expenses were RMB2,274.8 million (US$324.1 million) for the third quarter of 2024, representing an increase of 25.4% from RMB1,813.9 million for the third quarter of 2023 and a decrease of 12.7% from RMB2,604.7 million for the second quarter of 2024. The year-over-year increase was mainly due to increased expenses related to the expansion of offline channels in China and overseas as well as the marketing activities of the launch of new models. The quarter-over-quarter decrease was mainly due to a one-off, large quantity of share-based compensation expenses in the second quarter, conditioned on the Company’s initial public offering.

Loss from Operations

Loss from operations was RMB1,216.4 million (US$173.3 million) for the third quarter of 2024, representing a decrease of 19.3% from RMB1.507.8 million for the third quarter of 2023 and a decrease of 29.3% from RMB1,721.0 million for the second quarter of 2024.

Non-GAAP loss from operations, which excludes share-based compensation expenses from loss from operations, was RMB1,169.8 million (US$166.7 million) for the third quarter of 2024, representing a decrease of 20.8% from RMB1,477.6 million for the third quarter of 2023 and an increase of 50.5% from RMB777.1 million for the second quarter of 2024.

Net Loss and Net Loss Per Share

Net loss was RMB1,139.1 million (US$162.3 million) for the third quarter of 2024, representing a decrease of 21.7% from RMB1,455.7 million for the third quarter of 2023 and a decrease of 37.0% from RMB1,808.8 million for the second quarter of 2024.

Non-GAAP net loss, which excludes share-based compensation expenses from net loss, was RMB1,092.6 million (US$155.7 million) for the third quarter of 2024, representing a decrease of 23.4% from RMB1,425.6 million for the third quarter of 2023 and an increase of 26.3% from RMB864.9 million for the second quarter of 2024.

Net loss attributable to ordinary shareholders of ZEEKR was RMB1,226.3 million (US$174.7 million) for the third quarter of 2024, representing a decrease of 16.9% from RMB1,476.1 million for the third quarter of 2023 and a decrease of 44.0% from RMB2,190.2 million for the second quarter of 2024.

Non-GAAP net loss attributable to ordinary shareholders of ZEEKR, which excludes share-based compensation expenses from net loss attributable to ordinary shareholders, was RMB1,179.7 million (US$168.1 million) for the third quarter of 2024, representing a decrease of 18.4% from RMB1,445.9 million for the third quarter of 2023 and a decrease of 5.3% from RMB1,246.3 million for the second quarter of 2024.

Basic and diluted net loss per share attributed to ordinary shareholders were RMB0.48 (US$0.07) each for the third quarter of 2024, compared with RMB0.74 each for the third quarter of 2023 and RMB0.95 each for the second quarter of 2024.

Non-GAAP basic and diluted net loss per share attributed to ordinary shareholders were both RMB0.46 (US$0.07) each for the third quarter of 2024, compared with RMB0.72 each for the third quarter of 2023 and RMB0.54 each for the second quarter of 2024.

Basic and diluted net loss per American Depositary Share (“ADS[4]”) attributed to ordinary shareholders were RMB4.80 (US$0.68) each for the third quarter of 2024, compared with RMB9.51 each for the second quarter of 2024.

Non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders were RMB4.62 (US$0.66) each for the third quarter of 2024, compared with RMB5.41 each for the second quarter of 2024.

[4] Each ADS represents ten ordinary shares.

Balance Sheets

Cash and cash equivalents and restricted cash was RMB8,297.7 million (US$1,182.4 million) as of September 30, 2024.

Conference Call

The Company’s management will host an earnings conference call on Thursday, November 14, 2024, at 7:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day).

All participants who wish to join the call are requested to complete the online registration using the link provided below. After registration, each participant will receive by email a set of dial-in numbers, a passcode and a unique access PIN to join the conference call. Participants may pre-register at any time, including up to and after the call start time.

Participant Online Registration: https://dpregister.com/sreg/10194063/fdd5d5735e

A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.zeekrlife.com/.

About ZEEKR

ZEEKR (NYSE: ZK) is a global premium electric mobility technology brand from Geely Holding Group. ZEEKR aims to create a fully integrated user ecosystem with innovation as a standard. ZEEKR utilizes Sustainable Experience Architecture (SEA) and develops its own battery technologies, battery management systems, electric motor technologies, and electric vehicle supply chains. ZEEKR’s value is equality, diversity, and sustainability. Its ambition is to become a true mobility solution provider.

ZEEKR operates its R&D centers and design studios in Ningbo, Hangzhou, Gothenburg, and Shanghai and boasts state-of-the-art facilities and world-class expertise. Since ZEEKR began delivering vehicles in October 2021, the brand has developed a diversified product portfolio that primarily includes the ZEEKR 001, a luxury shooting brake; the ZEEKR 001 FR, a hyper-performing electric shooting brake; the ZEEKR 009, a pure electric luxury MPV; the ZEEKR 009 Grand, a four-seat ultra-luxury flagship MPV; the ZEEKR X, a compact SUV; the ZEEKR 7X, a premium electric five-seater SUV; the ZEEKR MIX; and an upscale sedan model. ZEEKR has announced plans to sell vehicles in global markets, and has an ambitious roll-out plan over the next 5 years to satisfy the rapidly expanding global EV demand.

For more information, please visit https://ir.zeekrlife.com/.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic and diluted net loss per ordinary share attributed to ordinary shareholders, non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth in this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “future,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law.

For Investor Enquiries
ZEEKR
Investor Relations
Email: ir@zeekrlife.com

For Media Enquiries
ZEEKR
Media Relations
Email: Globalcomms@zeekrlife.com

ZEEKR INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

As of

December 31

September 30

2023

2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

3,260,670

5,640,993

803,835

Restricted cash

844,079

2,656,734

378,582

Notes receivable

487,851

952,108

135,674

Accounts receivable

1,104,450

2,096,355

298,728

Inventories

5,228,689

4,745,085

676,169

Amounts due from related parties

7,256,861

6,535,623

931,319

Prepayments and other current assets

2,294,508

2,711,024

386,317

Total current assets

20,477,108

25,337,922

3,610,624

Property, plant and equipment, net

2,914,274

3,265,370

465,312

Intangible assets, net

410,912

624,404

88,977

Land use rights, net

51,755

62,185

8,861

Operating lease right-of-use assets

2,443,545

2,225,175

317,085

Deferred tax assets

86,395

195,175

27,812

Long-term investments

459,794

629,383

89,686

Other non-current assets

273,717

367,752

52,404

Total non-current assets

6,640,392

7,369,444

1,050,137

TOTAL ASSETS

27,117,500

32,707,366

4,660,761

ZEEKR INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands)

As of

December 31

September 30

2023

2024

RMB

US$

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Short-term Borrowings

–

30,000

4,275

Accounts payable

4,104,717

3,589,418

511,488

Notes payable

5,504,945

12,474,151

1,777,552

Amounts due to related parties

16,355,902

15,008,230

2,138,656

Income tax payable

108,083

172,826

24,628

Accruals and other current liabilities

6,243,956

8,114,841

1,156,354

Total current liabilities

32,317,603

39,389,466

5,612,953

Long-term borrowings

–

414,630

59,084

Operating lease liabilities, non-current

1,807,159

1,577,950

224,856

Amounts due to related parties, non-current

1,100,000

–

Other non-current liabilities

563,001

540,082

76,961

Deferred tax liability

8,337

8,224

1,172

Total non-current liabilities

3,478,497

2,540,886

362,073

TOTAL LIABILITIES

35,796,100

41,930,352

5,975,026

SHAREHOLDERS’ EQUITY

Ordinary shares

2,584

3,361

479

Convertible preferred shares

362

–

Shares subscription receivable

–

(66)

(9)

Additional paid-in capital

11,213,798

15,683,094

2,234,823

Accumulated deficits

(20,865,686)

(26,296,475)

(3,747,218)

Accumulated other comprehensive income/(loss)

17,555

(26,402)

(3,762)

Total ZEEKR shareholders’ deficit

(9,631,387)

(10,636,488)

(1,515,687)

Non-controlling interest

952,787

1,413,502

201,422

TOTAL SHAREHOLDERS’ DEFICIT

(8,678,600)

(9,222,986)

(1,314,265)

TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY

27,117,500

32,707,366

4,660,761

ZEEKR INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS)/INCOME

(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)

Three Months Ended

September 30

June 30

September 30

2023

2024

RMB

US$

Revenues:

Vehicle sales

10,143,742

13,438,241

14,401,309

2,052,170

Sales of batteries and other components

3,288,766

5,299,171

3,245,331

462,456

Research and development service and
other services

612,103

1,302,639

711,362

101,368

Total revenues

14,044,611

20,040,051

18,358,002

2,615,994

Cost of revenues:

Vehicle sales

(8,308,327)

(11,533,020)

(12,146,781)

(1,730,902)

Sales of batteries and other components

(3,050,588)

(4,223,452)

(2,808,646)

(400,229)

Research and development service and
other services

(396,289)

(833,756)

(460,775)

(65,660)

Total cost of revenues

(11,755,204)

(16,590,228)

(15,416,202)

(2,196,791)

Gross profit

2,289,407

3,449,823

2,941,800

419,203

Operating expenses:

Research and development expenses

(2,018,136)

(2,623,471)

(1,966,167)

(280,177)

Selling, general and administrative
expenses

(1,813,890)

(2,604,665)

(2,274,751)

(324,149)

Other operating income, net

34,851

57,287

82,747

11,791

Total operating expenses

(3,797,175)

(5,170,849)

(4,158,171)

(592,535)

Loss from operations

(1,507,768)

(1,721,026)

(1,216,371)

(173,332)

Interest expense

(28,186)

(23,396)

(8,088)

(1,153)

Interest income

27,614

42,537

43,255

6,163

Other income/(expense), net

6,020

(7,809)

54,967

7,833

Loss before income tax expense and
share of losses in equity method
investments

(1,502,320)

(1,709,694)

(1,126,237)

(160,489)

Share of income in equity method
investments

33,021

85,852

81,500

11,614

Income tax benefits/(expense)

13,605

(184,980)

(94,409)

(13,453)

Net loss

(1,455,694)

(1,808,822)

(1,139,146)

(162,328)

Less: income attributable to non-
controlling interest

20,368

381,363

87,134

12,416

Net loss attributable to shareholders
of ZEEKR

(1,476,062)

(2,190,185)

(1,226,280)

(174,744)

ZEEKR INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS)/INCOME (CONTINUED)

(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)

Three Months Ended

September 30

June 30

September 30

2023

2024

RMB

US$

Net loss per share attributed to
ordinary shareholders:

Basic and diluted

(0.74)

(0.95)

(0.48)

(0.07)

Weighted average shares used in
calculating net loss per share:

Basic and diluted

2,000,000,000

2,301,866,887

2,552,901,668

Net loss per ADS attributed to
ordinary shareholders:

Basic and diluted

–

(9.51)

(4.80)

(0.68)

Weighted average ADS used in
calculating net loss per ADS:

Basic and diluted

–

230,186,689

255,290,167

Net loss

(1,455,694)

(1,808,822)

(1,139,146)

(162,328)

Other comprehensive income/(loss),
net of tax of nil:

Foreign currency translation
adjustments

(35,240)

74,670

(75,858)

(10,810)

Comprehensive loss

(1,490,934)

(1,734,152)

(1,215,004)

(173,138)

Less: comprehensive income/(loss)
attributable to non-controlling interest

20,368

381,363

87,134

12,416

Comprehensive loss attributable to
shareholders of ZEEKR

(1,511,302)

(2,115,515)

(1,302,138)

(185,554)

ZEEKR INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)

Three Months Ended

September 30

June 30

September 30

2023

2024

RMB

US$

Loss from operations

(1,507,768)

(1,721,026)

(1,216,371)

(173,332)

Share-based compensation expenses

30,142

943,921

46,595

6,640

Non-GAAP loss from operations

(1,477,626)

(777,105)

(1,169,776)

(166,692)

Net loss

(1,455,694)

(1,808,822)

(1,139,146)

(162,328)

Share-based compensation expenses

30,142

943,921

46,595

6,640

Non-GAAP net loss

(1,425,552)

(864,901)

(1,092,551)

(155,688)

Net loss attributable to ordinary
shareholders

(1,476,062)

(2,190,185)

(1,226,280)

(174,744)

Share-based compensation expenses

30,142

943,921

46,595

6,640

Non-GAAP net loss attributable to
ordinary shareholders of ZEEKR

(1,445,920)

(1,246,264)

(1,179,685)

(168,104)

Weighted average number of
ordinary shares used in calculating
Non-GAAP net loss per share

Basic and diluted

2,000,000,000

2,301,866,887

2,552,901,668

Non-GAAP net loss per ordinary
share attributed to ordinary
shareholders

Basic and diluted

(0.72)

(0.54)

(0.46)

(0.07)

Weighted average number of ADS
used in calculating Non-GAAP net
loss per ADS

Basic and diluted

–

230,186,689

255,290,167

Non-GAAP net loss per ADS
attributed to ordinary shareholders

Basic and diluted

–

(5.41)

(4.62)

(0.66)

View original content:https://www.prnewswire.com/news-releases/zeekr-reports-third-quarter-2024-unaudited-financial-results-302305084.html

SOURCE ZEEKR Intelligent Technology Holding Limited

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