Core Insights - ZKH Group Limited reported a 4.0% increase in net revenues for Q1 2025, reaching RMB1,935.4 million (US$266.7 million) compared to RMB1,860.4 million in Q1 2024, driven primarily by growth in product sales [5][12] - The company experienced a decrease in Gross Merchandise Volume (GMV) by 7.5% to RMB2,171.997 million, with the ZKH platform GMV declining by 8.0% [2][5] - ZKH's international expansion, particularly in the U.S., has shown significant momentum, with revenue and customer base nearly doubling each month since January 2025 [2][5] Financial Performance - Net product revenues increased by 6.2% to RMB1,884.9 million (US$259.7 million), while net service revenues decreased by 43.1% to RMB37.9 million (US$5.2 million) [9][12] - Gross profit was RMB332.1 million (US$45.8 million), a slight decrease of 0.6% from RMB334.1 million in Q1 2024, resulting in a gross margin of 17.2% [7][12] - Operating loss narrowed to RMB80.8 million (US$11.1 million) from RMB129.6 million in the same period last year, with an operating loss margin of 4.2% [11][12] Customer Growth and Market Dynamics - The number of customers increased by 30.3% year-over-year to 60,102, with notable growth in the GBB platform customer base, which rose by 73.0% [2][5] - The marketplace model's contribution to GMV decreased significantly from 24.4% in Q1 2024 to 12.5% in Q1 2025, reflecting a strategic shift towards higher-margin product sales [3][10] Cost Management and Operational Efficiency - Operating expenses decreased by 10.9% to RMB412.9 million (US$56.9 million), with all categories of operating expenses showing reductions [10][12] - Fulfillment expenses decreased by 4.2% to RMB93.3 million (US$12.9 million), while sales and marketing expenses fell by 16.6% to RMB136.8 million (US$18.9 million) [15][12] Future Outlook - The company aims to enhance its product offerings and supply chain capabilities internationally while leveraging digitalization and big data analytics to meet evolving customer needs [2][5] - ZKH Group Limited remains committed to investing in its products, supply chain, AI capabilities, and global footprint to drive sustainable growth and reinforce its industry leadership [2][5]

Core Viewpoint - ZKH Group Limited, a leading MRO procurement service platform in China, is set to release its unaudited financial results for Q1 2025 on May 20, 2025, before U.S. market opening [1] Group 1: Financial Results Announcement - The unaudited financial results for the first quarter of 2025 will be announced on May 20, 2025 [1] - An earnings conference call will be held on the same day at 8:00 A.M. U.S. Eastern Time to discuss the financial results [2] Group 2: Company Overview - ZKH Group Limited operates as a leading MRO procurement service platform in China, leveraging strong supply chain capabilities and an AI-driven approach [3] - The company offers customized MRO procurement solutions through its online platforms, focusing on product curation and competitive pricing [3] - ZKH aims to enhance procurement efficiency and reduce costs, transforming the MRO procurement process for stakeholders [3]

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]

Core Insights - Shell has launched the "Shell Expert Selected Product Series" in collaboration with Zhenkunhang, aiming to provide comprehensive industrial lubrication solutions tailored to various operational scenarios [1][3] Group 1: Product Launch and Collaboration - The product series was unveiled at Zhenkunhang's Shanghai headquarters, emphasizing the partnership's strategic significance and the innovative service model [3][5] - Shell's General Manager for Industrial Lubricants in China highlighted the initiative as a new attempt in the e-commerce model for industrial oils, focusing on high cost-performance and quality assurance [3][5] - The collaboration aims to leverage Zhenkunhang's extensive distribution network and digital platform to deliver quality products efficiently to customers [3][5] Group 2: Strategic Meetings and Global Cooperation - Prior to the product launch, Shell's global market team visited Zhenkunhang to discuss industry trends and global market dynamics [5] - The meeting underscored China's strategic importance in the global industrial lubricant market and aligned Zhenkunhang's 2025 strategy with Shell's global insights [5] - Both companies plan to enhance their global presence and digital procurement processes, aiming to integrate technology resources and improve supply chain efficiency [5]

Core Viewpoint - Huaxing Capital reports that Zhenkunhang (ZKH.US) has met expectations for GMV in Q4 2024, with revenue and net profit exceeding forecasts, leading to a "Buy" rating and a target price of $4.50 per share [1][3]. Financial Performance - In Q4 2024, ZKH's total GMV was RMB 2.69 billion, with contributions from ZKH platform and GBB platform at approximately RMB 2.44 billion and RMB 255 million, respectively, showing year-on-year declines of 16.1%, 16.2%, and 14.9% [1]. - The non-GAAP operating loss for Q4 was RMB 19 million, with a net loss of RMB 15 million; operating profit margin (OPM) and net profit margin (NPM) were -0.8% and -0.6%, respectively, showing improvement from Q3 2024 due to a focus on high-margin businesses and cost control [2]. Business Expansion - ZKH currently has 412 SKUs in the U.S. market, with an additional 1,300 SKUs set to launch, covering areas such as PPE, hand tools, power tools, packaging materials, HVAC, and office supplies [2]. - The company aims to enhance customer growth, with over 1,500 registered users on its e-commerce site launched in December 2024 [2]. Supply Chain and Pricing Strategy - Approximately 20% of SKUs for the U.S. market can be sourced from outside China, including South Korea, Vietnam, and Malaysia, mitigating potential tariff impacts [2]. - Despite tariff considerations, ZKH's products maintain a significant price advantage in the U.S. market [2]. AI Development - ZKH has integrated 2 million material items with an accuracy rate exceeding 90%, aiming to improve material management efficiency for customers [3]. - The internal AI assistant enhances order processing efficiency by approximately 23% [3]. Future Projections - Huaxing Capital adjusts ZKH's Q1 2025 GMV growth forecast to -10.1% and full-year growth to +7.0%, with revenue forecasts of -0.8% for Q1 and +11.1% for the full year [3]. - Expected gross margins for Q1 and full year 2025 are 17.9% and 18.2%, respectively, with non-GAAP net profit margins projected at -3.0% for Q1 and +0.4% for the full year [3]. - ZKH is anticipated to achieve positive GMV and revenue growth in Q2 2025, with net profit expected in the second half of 2025 [3].

Core Viewpoint - ZKH Group Limited, a leading MRO procurement service platform in China, is set to release its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, on March 18, 2025, before U.S. market opening [1] Group 1: Financial Results Announcement - The unaudited financial results will be announced on March 18, 2025 [1] - An earnings conference call will be held on the same day at 8:00 A.M. U.S. Eastern Time to discuss the financial results [2] - The call will be accessible via multiple international phone numbers and will also be available as a live and archived webcast on the company's investor relations website [2] Group 2: Company Overview - ZKH Group Limited is focused on the digital transformation of the MRO industry, aiming to reduce costs and improve efficiency [3] - The company offers digitalized, one-stop MRO procurement solutions, providing customers with access to a wide selection of quality products at competitive prices [3] - ZKH Group Limited enhances product delivery through professional fulfillment services, catering specifically to the needs of MRO suppliers and customers [3]

微信公众号｜ipozaozhidao 据IPO早知道消息，震坤行（NYSE：ZKH）于11月22日美股盘前发布了2024第三季度业绩报告。 盈利能力持续改善，多维度战略推进效果显著。 本文为IPO早知道原创 作者｜Stone Jin 财报显示， 震坤行 第三季度营收 22.8亿 元（人民币，下同）， 毛利率从 2 023年 同期 的 16.3%提升17.0% ， 经调整亏损率 则 从 2 023年 同期的 4.4%下降至2.9%，继续实现季度同比 改善。值得一提的是，震坤行本季度继续录得经营性现金流净流入1.6亿 元 ，现金流进一步充实 。 面对不断变化的市场环境，震坤行战略聚焦成长质量，持续推动业务结构优化，以及产品力、供应链 能力和数字化AI能力的提升，为实现可持续的长远发展奠定坚实基础。目前，震坤行的多维度战略推 进效果显著。 客户开发层面。 震坤行第三季度服务客户数量47876家，同比增长16.9%，今年1 至 9月，服务客 户数超过75000家，同比增加超过30%。目前，在中国制造业千强集团中，震坤行已服务超过600 家集团企业 。电话会议上，管理层强调将持续围绕高质量客户和区域，布局人员和资源投放 ...