ZKH Group Limited

ZKH

Equity

ISIN US98877R1041 / Valor 131494734

New York Stock Exchange, Inc (2024-12-24)

USD 3.34-2.05%

ZKH Group Limited
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About company

ZKH Group Limited (NYSE: ZKH) is a prominent provider of maintenance, repair, and operations (MRO) procurement services in China. The company offers a comprehensive suite of one-stop MRO procurement and management services, catering to a wide range of enterprise customers. ZKH's platform integrates digital and fulfillment solutions, aiming to enhance efficiency and reduce costs across the industry value chain. The company's market leadership is demonstrated by its significant gross merchandise value (GMV), extensive customer base, and a vast array of stock-keeping units (SKUs). Additionally, ZKH boasts a robust fulfillment network, further solidifying its position in the MRO sector.

Summarized from source with an LLMView SourceSector: Finance

Revenue Overview

ZKH Group Limited reported net revenues of RMB 1,860.4 million (US$257.7 million) for the first quarter of 2024, marking a decrease of 4.0% from RMB 1,938.8 million in the first quarter of 2023. This decline was primarily attributed to a focus on high-quality revenues and the impact of lower seasonal demand due to the late timing of the Chinese New Year in 2024.

Gross Profit and Margin

For the first quarter of 2024, ZKH Group Limited achieved a gross profit of RMB 334.1 million (US$46.3 million), which is an increase of 1.0% compared to RMB 330.8 million in the same period last year. The gross margin also improved to 18.0% in 2024 from 17.1% in 2023, driven by higher margins in both the product sales and marketplace models on the ZKH platform.

Operating Expenses and Loss

ZKH Group Limited's operating expenses for the first quarter of 2024 totaled RMB 463.7 million (US$64.2 million), a decrease of 3.0% from RMB 478.2 million in the first quarter of 2023. Despite this reduction, the operating loss was RMB 129.6 million (US$18.0 million), improving from a loss of RMB 147.4 million in the previous year, with the operating loss margin narrowing to 7.0% from 7.6%.

Net Loss and Adjusted Net Loss

The net loss for ZKH Group Limited in the first quarter of 2024 was RMB 90.9 million (US$12.6 million), an improvement from a net loss of RMB 97.9 million in the first quarter of 2023. The net loss margin slightly improved to 4.9% from 5.0%. Additionally, the non-GAAP adjusted net loss was reduced to RMB 43.5 million (US$6.0 million) from RMB 86.9 million, with the corresponding margin improving significantly to 2.3% from 4.5%.

Future Outlook

ZKH Group Limited remains committed to enhancing operational efficiencies and customer experience to drive sustainable and profitable growth. The company's focus on high-quality growth through sales scale expansion, solid margins, and operational efficiency is expected to continue yielding positive results in the upcoming quarters.

Summarized from source with an LLMView Source

Key figures

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