ZKH Group Limited · NYSE:ZKH
ZKH — Q3 2024 Earnings Presentation
19 slides from ZKH's earnings presentation, Nov 22, 2024
Slide 1: 3Q2024 Earnings Presentation
NYSE: ZKH 3Q2024 Earnings Presentation
Slide 2: Disclaimer
Disclaimer The following document has been prepared by ZKH GROUP LIMITED (“ZKH” or the “Company”) solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitati
Slide 3: ZKH Today
ZKH Today Leading MRO Procurement Service Platform with One-stop Services and Offerings RMB11.1bn GMV1 66,500+ 2.5+mm Customers1 30.7% Orders1 2020-2023 CAGR 32 97% Product Lines3 3,400+ Top Customers Retention1, 2 17+mm Team Members3 SKU3 30 22,000+ Distribution Centers3 ~250 4,100+ Suppliers1 96 F
Slide 4: 3Q2024 Highlights
ZK Riss 01 3Q2024 Highlights
Slide 5: 3Q2024 Highlights
3Q2024 Highlights Strategic Focus and Operational Execution Driving Business Forward Solid performance with sustained year-over-year profitability improvement: Advanced strategic focus across the business, improving business quality and structure Continued investment in and strengthening of core com
Slide 6: How We Performed?
ZK Riss 03 How We Performed? P|
Slide 7: Sources of Revenues
Sources of Revenues Business Model Revenue Stream Revenue Recognition • ZKH platform and GBB platform purchase products from suppliers and sell them directly to customers, acting as the principal in these Product Sales Model Net Product Revenues transactions (1P Model) (Gross Basis) • Net product re
Slide 8: GMV and Revenue Growth
GMV and Revenue Growth GMV Net Revenues (RMB mm) (RMB mm) By Platform: ZKH Platform %1 88.6% 91.4% 91.2% 91.5% 90.4% 90.5% 90.2% Net Product Revenues %3 98.0% 97.3% 95.6% 95.8% 96.2% 95.5% 96.8% GBB Platform %1 11.4% 8.6% 8.8% 8.5% 9.6% 9.5% 9.8% Net Service Revenues %3,4 1.5% 2.2% 3.5% 3.3% 3.0% 3.
Slide 9: Gross Profit and Gross Margin
Gross Profit and Gross Margin Gross Profit and Gross Margin1 ZKH Platform – Product Sales (1P) (RMB mm) (RMB mm) Gross Gross 12.7% 14.4% 14.2% 14.1% 15.9% 13.9% 16.0% Margin 13.6% 15.8% 16.7% 16.5% 17.3% 16.3% 17.0% Margin 1,045 1,046 830 754 856 263 312 2021 2022 2023 9M2023 9M2024 3Q2023 3Q2024 1,
Slide 10: Operating Leverage
Operating Leverage Operating Expenses (RMB mm, as % of Total Net Revenues) 2,150 (28.1%) 2,003 (24.1%) 2023 vs. 2022 3Q2024 vs. 3Q2023 1,851 Operating Leverage Operating Leverage 445 (21.2%) Improvement Improvement (5.8%) 467 (5.6%) 439 (5.0%) 1,427 1,412 -2.9 pts -0.1 pts (22.7%) (22.1%) 690 (9.0%)
Slide 11: Path to Profitability
Path to Profitability Operating Loss Adjusted Net Loss1 (RMB mm) (RMB mm) As % of Net As % of Net (14.5%) (8.2%) (4.6%) (6.2%) (4.8%) (5.4%) (4.6%) (11.9%) (7.5%) (3.3%) (5.0%) (2.3%) (4.4%) (2.9%) Revenues Revenues As % of GMV (12.9%) (7.3%) (3.6%) (5.0%) (3.9%) (4.2%) (3.9%) As % of GMV (10.6%) (6
Slide 12: Quarterly Performance
Quarterly Performance (RMB mm) 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 2,578 2,669 2,373 2,609 2,894 3,207 2,349 2,755 2,686 1,894 2,232 GMV 1,988 2,333 2,260 2,073 2,265 2,444 2,250 2,281 Net 1,734 1,939 1,860 Revenues Gross 18.0% 16.7% 17.1% 17.1% 17.0% 17.0% M
Slide 13: Cashflows
Cashflows Net Cash (Used in)/Provided Net Cash (Used in)/Provided Net Cash Provided by/(Used Cash and Cash Equivalents, by Operating Activities by Investing Activities in) Financing Activities Restricted Cash and Short- Term Investments (RMB mm) (RMB mm) (RMB mm) (RMB mm) 2,125 2,006 2,031 2,040 2,0
Slide 14: Appendix
ZK Riss 04 Appendix PF
Slide 15: Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss)
Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) (All amounts in thousands) For the three months ended September 30, For the nine months ended September 30, 2023 2024 2023 2024 RMB RMB USD RMB RMB USD Net revenues 2,265,001 2,280,690 324,995 6,277,214 6,391,095 910,724 Net p
Slide 16: Reconciliation of GAAP and Non-GAAP Results
Reconciliation of GAAP and Non-GAAP Results (All amounts in thousands) For the three months ended September 30, For the nine months ended September 30, 2023 2024 2023 2024 RMB RMB USD RMB RMB USD Net loss (97,686) (81,751) (11,650) (325,129) (238,941) (34,048) Add: Income tax expenses 74 591 84 255
Slide 17: Unaudited Condensed Consolidated Balance Sheet
Unaudited Condensed Consolidated Balance Sheet (All amounts in thousands) As of Dec 31, 2023 As of September 30, 2024 RMB RMB USD Assets Cash and cash equivalents 1,090,621 1,460,075 208,059 Restricted cash 159,751 78,964 11,252 Short-term investments 874,210 525,402 74,869 Accounts receivable (net
Slide 18: Unaudited Condensed Consolidated Balance Sheet (Continued)
Unaudited Condensed Consolidated Balance Sheet (Continued) (All amounts in thousands) As of Dec 31, 2023 As of September 30, 2024 RMB RMB USD Liabilities Short-term borrowings 585,000 495,000 70,537 Accounts and notes payable 2,883,370 2,522,559 359,462 Operating lease liabilities 91,230 82,122 11,7
Slide 19: For investor and media inquiries, please contact:
For investor and media inquiries, please contact: In China: ZKH Group Limited IR Department E-mail: IR@zkh.com Piacente Financial Communications Hui Fan Tel: +86-10-6508-0677 E-mail: zkh@thepiacentegroup.com In the United States: Piacente Financial Communications Brandi Piacente Tel: +1-212-481-2050