ZKH Group Limited · NYSE:ZKH

ZKH — Q1 2024 Earnings Presentation

17 slides from ZKH's earnings presentation, May 21, 2024

  1. Slide 1: 1Q2024 Earnings Presentation

    NYSE: ZKH 1Q2024 Earnings Presentation

  2. 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

  3. 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

  4. Slide 4: 1Q2024 Highlights

    ZK Riss 01 1Q2024 Highlights

  5. Slide 5: 1Q2024 Highlights

    1Q2024 Highlights Driving Strategy Forward Through Focused Execution A solid performance with sustained year-over-year profitability improvement: Commenced operation on our first smart and automated warehousing facilities for the fasteners product line to elevate warehousing and fulfillment efficien

  6. Slide 6: 1Q2024 Financial Results

    ZK Riss 02 1Q2024 Financial Results Ft

  7. 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

  8. Slide 8: GMV and Revenue Growth

    GMV and Revenue Growth GMV Net Revenues (RMB mm) (RMB mm) By Platform: ZKH Platform %1 88.3% 88.6% 91.4% 91.2% 93.1% 91.0% Net Product Revenues %3 98.6% 98.0% 97.3% 95.6% 96.3% 95.4% GBB Platform %1 11.7% 11.4% 8.6% 8.8% 6.9% 9.0% Net Service Revenues %3,4 0.9% 1.5% 2.2% 3.5% 3.0% 3.6% By Business M

  9. 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 14.3% 12.7% 14.4% 14.2% 14.7% 16.0% Margin 14.5% 13.6% 15.8% 16.7% 17.1% 18.0% Margin 1,045 1,046 830 581 251 250 28.8% CAGR 2020 2021 2022 2023 1Q2023 1Q2024 1,452 1,318 ZKH

  10. Slide 10: Path to Profitability

    Path to Profitability Operating Loss Adjusted Net Loss1 (RMB mm) (RMB mm) As % of Net As % of Net Revenues (8.5%) (14.5%) (8.2%) (4.6%) (7.6%) (7.0%) (6.5%) (11.9%) (7.5%) (3.3%) (4.5%) (2.3%) Revenues As % of GMV (8.0%) (12.9%) (7.3%) (3.6%) (6.2%) (5.5%) As % of GMV (6.1%) (10.6%) (6.7%) (2.6%) (3

  11. Slide 11: Quarterly Performance

    Quarterly Performance (RMB mm) 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2,578 2,669 2,373 2,609 2,894 3,207 2,349 1,894 2,232 GMV 1,988 2,333 2,260 2,073 2,265 2,444 Net 1,734 1,939 1,860 Revenues 16.0% 15.5% 16.7% 17.1% 16.2% 16.3% 17.1% 18.0% Gross 15.1% Margin1 (7.6%) (3.9%)

  12. Slide 12: Appendix

    ZK Riss 03 Appendix PF

  13. Slide 13: 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 Mar 31, 2023 2024 RMB RMB USD Net revenues 1,938,760 1,860,409 257,663 Net product revenues 1,866,659 1,775,019 245,837 Net service revenues 59,068 66,654 9,231 Other reven

  14. Slide 14: Reconciliation of GAAP and Non-GAAP Results

    Reconciliation of GAAP and Non-GAAP Results (All amounts in thousands) For the three months ended Mar 31, 2023 2024 RMB RMB USD Net loss (97,863) (90,901) (12,591) Add: Income tax expenses 132 88 12 Interest expenses 3,093 5,695 789 Depreciation and amortization expenses 23,413 15,070 2,087 Non-GAAP

  15. Slide 15: Unaudited Condensed Consolidated Balance Sheet

    Unaudited Condensed Consolidated Balance Sheet (All amounts in thousands) As of Dec 31, 2023 As of Mar 31, 2024 RMB RMB USD Assets Cash and cash equivalents 1,090,621 1,095,500 151,725 Restricted cash 159,751 146,178 20,245 Short-term investments 874,210 789,682 109,370 Accounts receivable (net of a

  16. Slide 16: Unaudited Condensed Consolidated Balance Sheet (Continued)

    Unaudited Condensed Consolidated Balance Sheet (Continued) (All amounts in thousands) As of Dec 31, 2023 As of Mar 31, 2024 RMB RMB USD Liabilities Short-term borrowings 585,000 701,000 97,087 Accounts and notes payable 2,883,370 2,353,758 325,992 Operating lease liabilities 91,230 83,005 11,496 Adv

  17. Slide 17: 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

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