1. ZKH's Q4 2024 net revenues decreased by 3%, reflecting market challenges. 2. Total GMV dropped 16.1% in Q4 2024, primarily from marketplace model. 3. Operational loss increased significantly, indicating ongoing financial challenges. 4. Net cash inflow reached RMB170.7 million, signaling improved liquidity. 5. Management remains optimistic on future profitability for 2025.
ZKH faces declining revenues and significant operational losses, historically affecting stock prices negatively.
The decline in key financial metrics and losses are critical for investor confidence and future performance.
The immediate financial performance and losses indicate potential short-term pressure on stock prices until improvement is visible.
/PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.
in thousand RMB, except for number of customers, percentage and basis points ("bps")
| Metric | Fourth Quarter 2023 | Fourth Quarter 2024 | Change |
|---|---|---|---|
| GMV[1] | 3,207,139 | 2,690,311 | -16.1 % |
| Net Revenues | 2,443,961 | 2,370,223 | -3.0 % |
| Net Profit/(Loss) | 20,229 | (29,102) | -243.9 % |
"2024 presented a dynamic demand landscape, yet we delivered robust performance, further solidifying our leadership in China's MRO industry and expanding our global footprint," stated Mr. Eric Long Chen, Chairman and Chief Executive Officer of ZKH. "During the past year, we continued to enhance our profitability, bolstered by a growing customer base, increased customer loyalty, and advancements in digitalization and artificial intelligence."
The Company's management will hold a conference call on Tuesday, March 18, 2025, at 8:00 A.M. U.S. Eastern Time or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the fourth quarter and fiscal year 2024.
ZKH Group Limited (NYSE: ZKH) is a leading MRO procurement service platform in China, dedicated to propelling the MRO industry's digital transformation to drive cost reduction and efficiency improvement industry-wide.
For more information, please visit: https://ir.zkh.com.