Q4 2024 ZKH Group Ltd Earnings Call Transcript
Key Points
- ZKH Group Ltd (ZKH) achieved a GMV of RMB2.69 billion in Q4, contributing to a full-year GMV of RMB10.48 billion, with double-digit year-on-year growth when excluding business optimizations.
- The company narrowed its adjusted net loss by approximately 44% year-over-year, improving the adjusted net loss margin from 3.3% in 2023 to 1.8% in 2024.
- ZKH Group Ltd (ZKH) achieved positive operating cash flow for the full year 2024, with a net cash inflow from operating activities totaling RMB229 million.
- The company reported over 20% GMV growth in key industries such as electricals, electronics, telecommunications, new energy vehicles, transportation, and public utilities.
- ZKH Group Ltd (ZKH) launched a US independent website in December 2024, which has shown rapid month-over-month growth in transacting customers, indicating strong potential in the US market.
- The total GMV for Q4 and the full year 2024 experienced a year-over-year decrease of 16.1% and 5.4%, respectively, due to business optimization effects.
- Total revenue experienced a slight decrease of 3% in Q4, primarily due to lower revenues from the marketplace model.
- Operating expenses increased to 18.5% of net revenues in Q4, up from 17.3% in the same period of 2023, mainly due to higher share-based compensation expenses.
- The company reported a loss from operations of RMB32.6 million in Q4, resulting in an operating loss margin of 1.4%.
- Despite improvements, the company still reported a non-GAAP adjusted net loss of RMB15 million in Q4, indicating ongoing challenges in achieving profitability.
Ladies and gentlemen, good day and welcome to ZKH Group Limited's fourth quarter and fiscal year 2024 earnings conference call.
Today's conference is being recorded. At this time, I would like to turn the conference over to Jin Li, head of investor relations. Please go ahead.
Thank you, operator. Thank you, everyone, and welcome to our call today.
Joining us today, I'm Mr. Eric Chen, our Founder, Chairman and Chief Executive Officer and Mr. Max Lai our Chief Financial Officer. Before turning the call over to Eric, I'd like to briefly review our safe harbor provision.
Please note that the moment the comments made during today's call represent management views as of today and may include forward-looking statements. For further details, please refer to our latest safe harbor statement in the earnest release on our IR website. We will also discuss certain non-GAAP financial measures for comparison purpose only.
Please refer to the earnings release for definitions of these
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