ZKH Group Limited · NYSE:ZKH
ZKH — Q2 2024 Earnings Presentation
19 slides from ZKH's earnings presentation, Aug 22, 2024
Slide 1: 2Q2024 Earnings Presentation
NYSE: ZKH 2Q2024 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: 2Q2024 Highlights
ZK +t Rift 1 2Q2024 Highlights
Slide 5: 2Q2024 Highlights
2Q2024 Highlights Steadfastly Committed to Doing What is Right for Long-Term Business Success A solid performance with sustained year-over-year profitability improvement: Accelerated digital and AI transformation across business areas, leading to improved employee productivity in 2Q2024 Strengthened
Slide 6: 2Q2024 Financial Results
ZK +t Rift 02 2Q2024 Financial Results Fe
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% 93.1% 91.0% 91.1% 90.0% Net Product Revenues % 3 98.0% 97.3% 95.6% 96.3% 95.4% 95.8% 96.2% GBB Platform % 1 11.4% 8.6% 8.8% 6.9% 9.0% 8.9% 10.0% Net Service Revenues % 3,4 1.5% 2.2% 3.5% 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% 14.7% 16.0% 13.7% 15.5% Margin 13.6% 15.8% 16.7% 17.1% 18.0% 16.2% 17.0% Margin 1,045 1,046 830 251 250 241 294 2021 2022 2023 1Q2023 1Q2024 2Q2023 2Q2024 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 2Q2024 vs. 2Q2023 1,851 Operating Leverage Operating Leverage 445 (21.2%) Improvement Improvement (5.8%) 467 (5.6%) 439 -2.9 pts -1.9 pts (5.0%) 690 (9.0%) 683 -0.6 pts -0.7 pts (8.2%
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%) (7.6%) (7.0%) (5.9%) (3.2%) (11.9%) (7.5%) (3.3%) (4.5%) (2.3%) (6.2%) (1.5%) Revenues Revenues As % of GMV (12.9%) (7.3%) (3.6%) (6.2%) (5.5%) (4.7%) (2.6%) As % of GMV (10.6%) (6
Slide 12: Quarterly Performance
Quarterly Performance (RMB mm) 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 2,578 2,669 2,373 2,609 2,894 3,207 2,349 2,755 1,894 2,232 GMV 1,988 2,333 2,260 2,073 2,265 2,444 2,250 Net 1,734 1,939 1,860 Revenues Gross 18.0% 16.7% 17.1% 17.1% 17.0% Margin 16.0% 16.2% 16.3% 1
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) 2,006 2,125 2,040 2,031 1,3
Slide 14: Appendix
03 Appendix ZK +t Rift
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 June 30, For the six months ended June 30, 2023 2024 2023 2024 RMB RMB USD RMB RMB USD Net revenues 2,073,453 2,249,996 309,610 4,012,213 4,110,405 565,611 Net product reve
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 June 30, For the six months ended June 30, 2023 2024 2023 2024 RMB RMB USD RMB RMB USD Net loss (129,580) (66,289) (9,120) (227,443) (157,190) (21,630) Add: Income tax expenses 49 66 9 181 154 12 Intere
Slide 17: Unaudited Condensed Consolidated Balance Sheet
Unaudited Condensed Consolidated Balance Sheet (All amounts in thousands) As of Dec 31, 2023 As of June 30, 2024 RMB RMB USD Assets Cash and cash equivalents 1,090,621 1,308,972 180,121 Restricted cash 159,751 150,305 20,683 Short-term investments 874,210 581,203 79,976 Accounts receivable (net of a
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 June 30, 2024 RMB RMB USD Liabilities Short-term borrowings 585,000 591,000 81,324 Accounts and notes payable 2,883,370 2,599,001 357,634 Operating lease liabilities 91,230 86,940 11,963 Ad
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