In This Article:
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GMV: RMB2.69 billion in Q3 2024, a slight year-over-year decline.
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Revenue: RMB2.28 billion in Q3 2024, a 0.7% year-over-year increase.
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Gross Margin: Increased from 16.3% to 17% year over year in Q3 2024.
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Adjusted Net Loss Margin: Improved from 4.4% to 2.9% year over year in Q3 2024.
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Net Product Revenues: RMB2.21 billion, a 2% increase from the prior year period.
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Net Service Revenues: RMB57.7 million, a 27.8% decrease from the prior year period.
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Operating Expenses: RMB493.8 million, representing 21.6% of net revenues.
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Fulfillment Expenses: RMB100.2 million, an 11.8% decrease from the prior year period.
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Sales and Marketing Expenses: RMB168.2 million, a 7.7% decrease from the prior year period.
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Research and Development Expenses: RMB49.8 million, a 12.2% increase from the prior year period.
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General and Administrative Expenses: RMB175.6 million, a 16.6% increase from the prior year period.
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Net Loss: RMB81.8 million compared with RMB97.7 million in the prior year period.
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Non-GAAP Adjusted Net Loss: RMB66.2 million compared with RMB98.7 million in the prior year period.
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Cash Flow from Operating Activities: RMB160.5 million generated in Q3 2024.
Release Date: November 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) reported improvements in business structure, quality, and resilience, driven by strategic optimization efforts.
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The company achieved a gross margin increase from 16.3% to 17% year over year in the third quarter.
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ZKH Group Ltd (NYSE:ZKH) substantially narrowed its adjusted net loss margin from 4.4% to 2.9% year over year.
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The company successfully catered to over 75,000 customers from January to September, marking a year-over-year increase of over 30%.
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ZKH Group Ltd (NYSE:ZKH) is expanding into the US market with a standalone site launching on December 1, focusing on high-value products for manufacturing SMEs.
Negative Points
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Overall GMV decreased by 7.2% year over year due to business optimization initiatives.
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Net service revenues decreased by 27.8% year over year, primarily due to a lower proportion of GMV from the marketplace model.
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Operating expenses as a percentage of net revenues remained high at 21.6%, only a slight decrease from the previous year.
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Research and development expenses increased by 12.2% year over year, impacting overall profitability.
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The company faces potential geopolitical risks and tariffs in its US market expansion, necessitating supplier diversification efforts.