ZKH Group Limited · NYSE:ZKH
ZKH — Q4 2023 Earnings Presentation
17 slides from ZKH's earnings presentation, Mar 19, 2024
Slide 1: 4Q2023 and Fiscal-Year 2023 Earnings Presentation
NYSE: ZKH 4Q2023 and Fiscal-Year 2023 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: Business Overview
ZK Riss 0 Business Overview |
Slide 5: Our Mission, Our Vision, What We Do
Our Mission Our Vision Transparency and efficiency, To be a world leading industrial for better commerce supplies company offering superior customer value What We Do? MRO: Maintenance, Repair, and Operations Spare Parts Chemicals Manufacturing Parts General Consumables Office Supplies Bearing Pneuma
Slide 6: Dual-Platform Model to Serve Varied Customer Needs
Dual-Platform Model to Serve Varied Customer Needs (ZKH Platform) (GBB Platform) Customers Type Customers Type Large to mid-size enterprise Micro businesses with less complex customers with highly complex operations and procurement Platforms and operations and procurement processes and who are willi
Slide 7: Dual Business Model to Scale Up Business
Dual Business Model to Scale Up Business Product Sales at Core Supply Chain Customer Capabilities Accumulation Marketplace to Fuel Growth Product and Product Service Offering Scale Sales (1P) Expansion Accretion Empower Industry Stakeholders Value-added Digital Services Transformation 7
Slide 8: 2023 Business Highlights
2023 Business Highlights Continued to invest, refine and optimize operations for long-term growth Invested and Strengthened Our Advantages in: % of GMV From Digital Footprint1 68% Digitalization and Artificial Intelligence Capabilities Employees Productivity2 39% by integrating our industry know-how
Slide 9: 2023 Financial Highlights
2023 Financial Highlights Solid and Resilient Financial Performance Reaccelerated 18.2% 24.8% 10.2% +81bps Business Growth GMV Growth1 Marketplace Model (3P) Gross Profit Gross Margin1 with Margin Contribution2 Expansion 1 Improvement Versus 9.2% in 2022 Fast expansion of 3P model Continued to impro
Slide 10: Long-term Growth Drivers
Long-term Growth Drivers Digital Marketplace One-stop Solution Multi-pronged Migration Model + Private Label Growth Areas n Trillion-RMB MRO n Enhance scale and n Indispensable needs n Broad coverage of market in China capabilities for one-stop solution different types of customers n Growing needs f
Slide 11: 4Q2023 and FY2023 Financial Results
02 4Q2023 and FY2023 Financial Results
Slide 12: 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 13: 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% 92.1% Net Product Revenues %3 98.6% 98.0% 97.3% 95.6% 96.9% 95.1% 90.6% GBB Platform %1 11.7% 11.4% 8.6% 8.8% 7.9% 9.4% Net Service Revenues %3,4 0.9% 1.5% 2.2% 3.5% 2.5% 4.0% By Business M
Slide 14: 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% 15.0% 14.4% Margin 14.5% 13.6% 15.8% 16.7% 16.7% 17.1% Margin 1,045 1,046 830 581 297 292 28.8% CAGR 2020 2021 2022 2023 4Q2022 4Q2023 1,452 1,318 ZKH
Slide 15: Path to Profitability
Path to Profitability Operating Loss Adjusted Net (Loss)/ Profit1 (RMB mm) (RMB mm) As % of Net As % of Net (8.5%) (14.5%) (8.2%) (4.6%) (3.9%) (0.3%) (6.5%) (11.9%) (7.5%) (3.3%) (3.6%) 1.1% Revenues Revenues As % of GMV (8.0%) (12.9%) (7.3%) (3.6%) (3.3%) (0.2%) As % of GMV (6.1%) (10.6%) (6.7%) (
Slide 16: Quarterly Performance
Quarterly Performance (RMB mm) 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 2,640 2,578 2,669 2,373 2,609 2,894 3,207 1,894 2,232 GMV 2,254 1,988 2,333 2,260 2,073 2,265 2,444 Net 1,734 1,939 Revenues 16.0% 15.5% 16.7% 17.1% 16.2% 16.3% 17.1% Gross 15.1% Margin1 13.4% (7.6%) (3.9%)
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