ZKH Group Limited Sponsored ADR ( (ZKH) ) has released its Q4 earnings. Here is a breakdown of the information ZKH Group Limited Sponsored ADR presented to its investors.
ZKH Group Limited, a prominent player in China’s maintenance, repair, and operations (MRO) procurement service sector, focuses on digital transformation to enhance industry efficiency and cost-effectiveness. The company recently released its unaudited financial results for the fourth quarter and fiscal year 2024, highlighting a challenging yet resilient performance amidst a dynamic demand landscape.
In the fiscal year 2024, ZKH Group Limited reported a slight increase in net revenues to RMB8.76 billion, driven by growth in product sales despite a decline in marketplace revenues. The gross profit rose by 4% to RMB1.51 billion, with an improved gross margin of 17.2%. However, the company faced a net loss of RMB268 million, reflecting ongoing challenges in the demand environment and strategic business optimizations.
The company’s strategic focus on enhancing profitability was evident through a 26.1% increase in customer numbers and a strengthened cash position, achieving a positive net cash inflow from operating activities for the first full year. Despite a decrease in GMV, particularly in the marketplace model, ZKH Group Limited managed to improve its gross and net margins, supported by business scale expansion and supply chain optimization.
Looking ahead, ZKH Group Limited remains committed to advancing its digitalization and artificial intelligence initiatives, with a focus on enhancing product and supply chain capabilities. The management is optimistic about achieving full-year profitability for domestic operations in 2025, leveraging its solid foundation and growing international presence, particularly in the U.S. market.