In This Article:
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Revenue: RMB2.25 billion, up 8.5% year-over-year.
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Gross Profit: RMB380 million, increased by 14.3% year-over-year.
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Gross Margin: 17%, up from 16.2% in the same period last year.
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Adjusted Net Loss: RMB34.86 million, narrowed from RMB130 million in the second quarter of 2023.
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Adjusted Net Loss Margin: Improved from 6.2% in Q2 2023 to 1.5% in Q2 2024.
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Net Operating Cash Inflow: RMB120 million in the second quarter of 2024.
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GMV: RMB2.75 billion, up 5.6% year-over-year.
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Customer Growth: Over 48,000 customers served in Q2 2024, a year-over-year increase of 25.8%.
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Operating Expenses: RMB454.2 million, 20.2% of net revenues, down from 22.1% in the prior year period.
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Cash and Cash Equivalents: RMB2.04 billion as of June 30, 2024.
Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ZKH Group Ltd (NYSE:ZKH) achieved a solid revenue growth of 8.5% year-over-year in the second quarter of 2024, reaching RMB2.25 billion.
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The company's gross profit increased by 14.3% year-over-year, with a gross margin improvement from 16.2% to 17%.
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ZKH Group Ltd (NYSE:ZKH) significantly narrowed its adjusted net loss by RMB95 million, marking the ninth consecutive quarter of year-over-year improvement in adjusted net loss margin.
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The company reported a net operating cash inflow of RMB120 million in the second quarter, strengthening its cash position.
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ZKH Group Ltd (NYSE:ZKH) served over 48,000 customers in the second quarter, representing a year-over-year growth of 25.8%.
Negative Points
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ZKH Group Ltd (NYSE:ZKH) faced ongoing macroeconomic headwinds, which impacted certain industries and product categories.
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The company strategically stepped back from certain businesses, which may impact short-term growth.
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Operating expenses as a percentage of net revenues were 20.2%, indicating room for further efficiency improvements.
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The company's general and administrative expenses increased by 16.1% year-over-year, primarily due to higher share-based compensation expenses.
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Despite improvements, ZKH Group Ltd (NYSE:ZKH) still reported a non-GAAP adjusted net loss of RMB34.9 million in the second quarter.
Q & A Highlights
Q: Can management provide an update on customer standing by industry verticals and product category? A: (Long Chen, CEO) Industries like EVs, chemicals, electric and equipment manufacturing, and communications electronics are showing strong procurement growth on our platform. For example, EVs and chemicals both saw a 36% year-over-year growth in Q2. Conversely, traditional industries like ICE vehicles and steel have seen flat or declining procurement. Product categories such as chemicals and factory automation are also experiencing rapid growth.