Company: ZK
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001410578-25-000390
Chunk: 31

Company: ZEEKR Intelligent Technology Holding Ltd
Filing Date: 2025-03-20
Form: 20-F
Item: Item 3
Chunk 31
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 may face competition from the market and lose some of our competitive advantages with other brands in Geely Group that have adopted SEA in its development process, which would negatively affect our results of operations.

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Any problems or delays in ramping and maintaining operations of the Vehicle Manufacturing Factories could negatively affect the production of our BEVs.
We have entered into Cooperation Framework Agreements with Geely Group for the manufacturing of our Zeekr vehicles at the Zeekr Factory, the Chengdu Factory, the Meishan Factory and the Chunxiao Factory (together, “Vehicle Manufacturing Factories”). Our future operation and prospects depend on the successful ramping and maintaining of operation in these factories. See “Item 4. Information on the Company—4.B. Business Overview—Manufacturing, Supply Chain and Quality Control.”
There can be no assurance that our oversight on BEV manufacturing will always be effective, as the Vehicle Manufacturing Factories are not owned by us. Vehicle production at such factories may also experience delays or suspensions. For example, vehicle production at the Zeekr Factory was temporarily suspended in early 2022 due to the COVID-19 pandemic, and we also encountered a temporary suspension in production at the Zeekr Factory in the first quarter of 2023 due to production line upgrades. As of the date of this annual report, we have not experienced any material customer complaints caused by the delays or suspensions of vehicle production at the Vehicle Manufacturing Factories. In addition, there will be a negative impact on our business operation if, in the future, such OEM model is limited by applicable laws and regulations, or becomes subject to more stringent regulatory oversight. Given the size and complexity of the manufacturing of BEVs, it is possible that the Vehicle Manufacturing Factories may experience issue or delays in further expanding its production output. If any of these factories experiences any such issues or delays, our business, prospects, operating results and financial condition could be adversely impacted.
We may build or acquire manufacturing facilities in the future, which may significantly increase our capital outlay and adversely impact our operations and financial condition.
Currently, we have partnered with Geely Group to produce our Zeekr vehicles on an OEM basis under the Cooperation Framework Agreements at the Vehicle Manufacturing Factories. If market demand for our Zeekr vehicles increases in the future, we may consider building our own manufacturing factories or acquiring manufacturing facilities from third parties, including Geely Group, to produce our Zeekr vehicles independently. In such a scenario, we would need to significantly increase