SHANGHAI, April 17, 2025 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 with the U.S. Securities and Exchange Commission ("SEC") on April 17, 2025. The annual report in electronic format is accessible on the Company's investor relations website at https://ir.zkh.com as well as on the SEC's websi ...

Company Structure and Regulatory Environment - ZKH Group Limited is a Cayman Islands holding company with operations primarily through its mainland China subsidiaries, posing unique risks to investors regarding foreign ownership limitations[29]. - The company has completed the necessary permissions and filings for its initial public offering, including a cybersecurity review by the Cyberspace Administration of China[44]. - Future securities offerings outside of mainland China will be subject to CSRC filing requirements, and failure to comply may result in sanctions, including fines and operational limitations[49]. - Under the Holding Foreign Companies Accountable Act, if the SEC determines the company has filed audit reports from a non-inspected firm for two consecutive years, trading of its shares may be prohibited in the U.S.[51]. - The PCAOB has not issued new determinations regarding its ability to inspect audit firms in mainland China, which may affect the company's status under the HFCAA[53]. - The PRC Enterprise Income Tax Law imposes a 10% withholding tax on dividends distributed by foreign-invested enterprises to their immediate holding company outside of mainland China[41]. - The regulatory framework for data protection is rapidly evolving, with significant implications for the company's operations and compliance costs[82]. - The PRC Cybersecurity Law requires network operators to implement security measures to protect against unauthorized access and data breaches, necessitating substantial resources for compliance[84]. - The PRC Personal Information Protection Law, effective November 2021, imposes strict rules on processing sensitive personal information, which may impact the company's data handling practices[92]. - The evolving regulatory landscape may require the company to adapt its business practices, potentially incurring substantial costs[99]. - The company has not been involved in any investigations related to cybersecurity review as of the date of the annual report, indicating a current lack of regulatory scrutiny[88]. - Uncertainties exist regarding the impact of the PRC Foreign Investment Law on the company's corporate structure and operations, which could affect business viability[223]. Financial Performance and Challenges - The company incurred net losses of RMB731.1 million in 2022, RMB304.9 million in 2023, and RMB268.0 million (US$36.7 million) in 2024, indicating ongoing financial challenges[103]. - The ability to achieve profitability will depend on increasing gross margin by growing revenues faster than the cost of revenues or reducing costs as a percentage of net revenues[103]. - Net revenues increased from RMB 8,315.2 million in 2022 to RMB 8,721.2 million in 2023, and further increased to RMB 8,761.3 million (US$1,200.3 million) in 2024[68]. - Operating cash flow improved by RMB 797.0 million to a gain of RMB 229.1 million in 2024, compared to negative cash flow in previous years[104]. - Net cash used in operating activities was RMB 504.2 million in 2022, RMB 567.9 million in 2023, and net cash provided was RMB 229.1 million (US$31.4 million) in 2024[104]. - The company may need to raise additional funds to support its growth strategy, which could lead to significant additional funding needs if financing is not available on satisfactory terms[127]. - Future financing may be uncertain, impacting the ability to support business growth and operational needs[109]. Operational Risks and Challenges - The company faces significant risks related to customer retention and satisfaction, which are critical for its financial performance[61]. - The company faces challenges in maintaining customer experience and service quality, which could adversely affect customer retention and acquisition[64]. - The company is vulnerable to fluctuations in supply and demand for MRO products, which could impact trading volume and pricing on its platform[59]. - The online MRO procurement service industry in China is still in its early stages, with uncertainties regarding growth and profitability[66]. - The company operates under two business models: a product sales model and a marketplace model, with higher gross margins observed in the marketplace model[77]. - The company anticipates further expansion into overseas markets, which will increase operational complexity and resource strain[71]. - The company must continuously enhance its technology infrastructure to support growth and maintain system security[69]. - The company is exposed to risks related to geopolitical tensions and regulatory changes that could impact its operations and financial performance[66]. - The company faces risks related to the fulfillment of hazardous products, including potential liabilities from third-party service providers[115]. - The company relies on third-party suppliers for product sales, which poses risks to business performance if relationships are not maintained[105]. - The company is subject to potential government enforcement actions and investigations if it fails to comply with cybersecurity and data privacy requirements[88]. - The company faces risks related to the availability of products from foreign markets, which could adversely affect inventory levels and operating results[179]. - The company has limited insurance coverage, which may expose it to significant costs and business disruptions[204]. Market and Competitive Environment - The MRO procurement service industry in China is large and fragmented, with increased competition potentially leading to loss of market share and reduced profitability[128]. - Seasonal fluctuations in customer purchases have been observed, with generally fewer orders during public holidays, particularly during the Chinese New Year[141]. - Pricing decisions may adversely affect the company's financial performance and ability to attract and retain suppliers and customers[150]. - The company faces risks related to third-party online payment platforms, which could impact customer trust and result in a material adverse effect on business operations[138]. - The company is increasingly sensitive to environmental, social, and governance (ESG) issues, which may impose additional costs and risks, potentially affecting business operations and financial condition[218]. Technology and Data Management - The integration of artificial intelligence technologies is ongoing, but presents operational, compliance, and reputational risks due to the unpredictable nature of AI[120]. - The company has invested substantial resources in developing complex and innovative technology systems to enhance customer service and operational efficiency[153]. - The performance of the company's technologies is critical for supporting key functions such as online ordering and logistics information, but stability cannot be assured[153]. - The company relies heavily on internet infrastructure and telecommunications networks in China, with almost all access provided by state-owned operators[198]. - The company has processes in place to mitigate risks associated with open source software, but cannot guarantee all risks are managed effectively[196]. - The company is subject to evolving laws regarding online service provider liability, which could lead to potential legal challenges and financial penalties[201]. Human Resources and Internal Controls - Key employee retention is critical for success, with competition for talent in the MRO procurement service industry being intense[123]. - A significant risk exists due to the lack of sufficient and competent accounting personnel, leading to material weaknesses in internal control over financial reporting[206]. - The company has identified a material weakness in internal controls, which could affect investor confidence and market price of its ADSs[205]. Economic and Political Factors - Economic conditions in China and globally, including the impact of COVID-19 and geopolitical conflicts, could materially affect the company's financial condition[172]. - Changes in U.S. and international trade policies, particularly regarding China, may adversely impact the company's business and operating results[173]. - The slowing growth rate of the Chinese economy since 2012 may reduce demand for the company's products and services, adversely impacting business results[227]. - The PRC government maintains significant control over economic growth and resource allocation, which could introduce uncertainties for the company[226]. - Changes in China's economic, political, or social conditions could materially adversely affect the company's business and financial results[224].

Thank you, Operator. Thank you, everyone, and welcome to our call today. Joining us today are Mr. Eric Chun, our Founder, Chairman, and Chief Executive Officer, and Mr. Max Lai, our Chief Financial Officer. Before turning the call over to Eric, I would like to briefly review our Safe Harbor provision. Please note that the comments made during today's call represent management management view as of today and may include forward-looking statements. For further details, please refer to our latest Safe Harbor S ...

Core Insights - Deutsche Bank's report indicates that Zhenkunhang (ZKH.US) exceeded expectations for Q4 2024, with total revenue and adjusted net profit surpassing market forecasts by 4% and 19% respectively [1] - Based on strong Q4 performance, Deutsche Bank raised Zhenkunhang's revenue and adjusted net profit forecasts for 2025 by 3% and 55%, anticipating an 11% year-on-year revenue growth and an increase in adjusted net profit margin by 0.4% [1] - The management expressed confidence in rapid revenue recovery and achieving profitability for the full year 2025, following the completion of business adjustments [2] Revenue and Profitability - For FY 2024, total GMV is expected to decline by 5% year-on-year, with net income remaining flat; however, excluding the impact of business adjustments, total GMV is projected to achieve double-digit growth [1] - Key verticals such as electrical, electronics and communications, new energy vehicles, transportation, and public utilities are expected to perform well, with GMV growth exceeding 20% year-on-year in 2024 [1] Margin and Growth Drivers - The company anticipates a 1-1.5 percentage point increase in gross margin for its 1P business over the next few years, aiming for a long-term target of 20% (16% in 2024), while the commission rate for 3P business is expected to remain around 11% [2] - Key drivers for margin improvement include economies of scale, increased share of private label products, and overseas expansion [2] Artificial Intelligence and Digitalization - Zhenkunhang's "AI Material Manager" has standardized over 2 million material entries with an accuracy rate exceeding 90%, while the "AI Expert Assistant" has improved order processing efficiency by 23% for over 12,000 enterprises [2] - The growth of AI technology is expected to continue benefiting the company by enhancing service efficiency and accelerating customer penetration [2] Overseas Expansion - Since the launch of ZKH's independent website in the U.S. in December 2024, the number of registered customers has surpassed 1,500, with 412 SKUs currently available and an additional 1,800 SKUs set to launch [2] Private Label Growth - In 2024, Zhenkunhang's private label GMV grew by 29%, accounting for 6.7% of total GMV (up from 4.9% in 2023), with a long-term goal of increasing this share to 30% [3] - The company aims to enhance its product innovation and research capabilities to support this growth [3] Industry Positioning - Zhenkunhang is recognized as a leading industrial procurement service platform in China, providing one-stop procurement and management services while facilitating digital transformation in the supply chain for the manufacturing sector [3]

壳牌行家优选产品系列上市，携手震坤行打造工业润滑全场景解决方案 3月10日，全球能源巨头壳牌与数字化工业用品服务平台震坤行强强联手，于震坤行上海总部举办"壳牌行家优选 产品系列"新品揭幕仪式。这一系列产品基于客户场景需求精准研发，全面覆盖多工况应用场景；同时依托工邦邦 成熟的渠道网络与深度客户洞察力，进一步赋能产品实现精准市场适配与需求覆盖。 全网首发：壳牌行家优选产品2025年3月10日，"壳牌行家优选产品系列"新品揭幕仪式于震坤行上海总部启幕。壳 牌中国工业润滑油总经理杨搏，壳牌中国润滑油技术部总经理崔大龙，震坤行产品规划及化学品事业部总经理张 蕊，工邦邦总经理张瑞共同出席活动，为联名产品揭幕。杨搏在致辞中强调："本次行家优选产品是壳牌工业油探 索电商模式的新尝试、新征程。我们秉承着为终端客户提供高性价比、全场景、行业领先、有质量保证的油品解 决方案的理念，希望通过新模式、新产品更深入拉近壳牌和中国工业从业者的距离。"张蕊回溯双方二十年合作历 程时表示："此次行家优选产品的发布将双方的战略合作带向一个新的里程碑。""此次合作绝非简单的产品联 名"，张瑞阐释服务模式的创新："我们将通过全国经销商网络和数字化 ...

震坤行美国业务现状方面，华兴资本表示，目前震坤行在美国拥有高达412个SKU，另外还有1,300个 SKU即将上线，主要涉及个人防护用品(PPE)、手动工具、电动工具、包装材料、HVAC以及办公用品 等领域。该公司的电子商务网站于2024年12月推出，目前已拥有超过1,500名注册用户，客户增长是其 2025年的主要目标之一。 智通财经APP获悉，华兴资本近日发布研报称，震坤行(ZKH.US)2024年第四季度GMV符合预期，营收 以及净利润表现均超出该机构预期，华兴资本预计震坤行2025年GMV、营收和净利润将全部实现同比 转正增长，因此华兴资本维持对于震坤行股票的"买入"评级(BUY)以及目标价4.50美元。 华兴资本在研报中提到，震坤行业绩报告显示2024年第四季度总交易额(GMV)为人民币26.9亿元，其中 ZKH平台/GBB平台分别贡献GMV人民币大约24.4亿元/2.55亿元，分别同比下降16.1%/16.2%/14.9%，整 体符合该机构此前预期；按业务模式划分，市场(3P)模式的GMV组合占比在第四季度为13.6%(2023年第 四季度为27.6%)；华兴资本表示，按品类划分，电子产品、能源、 ...

SHANGHAI, March 4, 2025 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, today announced that it will release its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, on Tuesday, March 18, 2025, before the open of the U.S. markets.The Company's management will hold an earnings conference call on Tuesday, March 18, 2025 at 8:00 A.M. U.S. Eastern Time (8:00 ...

SHANGHAI, Nov. 22, 2024 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, today announced that it has entered into a comprehensive strategic partnership agreement (the "Agreement") with Zhejiang Tmall Technology Co., Ltd. ("Tmall") with respect to the cooperation between the Company's GBB Platform and Tmall's industrial product platform. The Agreement will be effective until October 31, 2026 whe ...

SHANGHAI, Nov. 22, 2024 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.Third Quarter 2024 Operational and Financial Highlights  in thousand RMB, except for number of customers, percentage and basis points ("bps") Third Quarter 2023 2024 Change GMV[1] 2,894,140 2,685,996 -7.2 % GMV b ...

SHANGHAI, Nov. 8, 2024 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, today announced that it will release its unaudited financial results for the third quarter of 2024, on Friday, November 22, 2024, before the open of the U.S. markets.The Company's management will hold an earnings conference call on Friday, November 22, 2024 at 7:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong Time) t ...