ZKH Group Limited Announces Second Quarter 2024 Unaudited Financial Results
Second Quarter 2024 Operational and Financial Highlights
in thousand RMB, except for number of |
Second Quarter |
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2023 |
2024 |
Change |
|
GMV[1] |
2,608,851 |
2,754,591 |
5.6 % |
GMV by Platform |
|
|
|
ZKH Platform |
2,375,584 |
2,479,915 |
4.4 % |
GBB Platform |
233,267 |
274,676 |
17.8 % |
GMV by Business Model |
|
|
|
Product Sales (1P) |
1,995,108 |
2,185,351 |
9.5 % |
Marketplace (3P) |
613,743 |
569,240 |
-7.3 % |
Number of Customers[2] |
38,980 |
48,766 |
25.1 % |
ZKH Platform |
28,909 |
34,360 |
18.9 % |
GBB Platform |
10,071 |
14,406 |
43.0 % |
Net Revenues[3] |
2,073,453 |
2,249,996 |
8.5 % |
Gross Profit |
335,071 |
382,991 |
14.3 % |
% of Net Revenues |
16.2 % |
17.0 % |
86.2bps |
Operating Loss |
(123,093) |
(71,213) |
-42.1 % |
% of Net Revenues |
-5.9 % |
-3.2 % |
277.2bps |
Non-GAAP EBITDA[4] |
(107,851) |
(47,068) |
-56.4 % |
% of Net Revenues |
-5.2 % |
-2.1 % |
311.0bps |
Net Loss |
(129,580) |
(66,289) |
-48.8 % |
% of Net Revenues |
-6.2 % |
-2.9 % |
330.3bps |
Non-GAAP Adjusted Net Loss[5] |
(129,498) |
(34,857) |
-73.1 % |
% of Net Revenues |
-6.2 % |
-1.5 % |
469.6bps |
Mr.
Mr.
[1] GMV is the total transaction value of orders placed on the Company's platform and shipped to customers, excluding taxes, net of the returned amount. |
[2] Customers are customers that transacted with the Company during the period of time, which mainly include enterprise customers in various industries. |
[3] The proportion of GMV generated by the marketplace model was 23.5% and 20.7% for the second quarter of 2023 and 2024, respectively. |
[4] Non-GAAP EBITDA is defined as net loss before interest expenses, income tax expenses/(benefits) and depreciation and amortization expenses. |
[5] Non-GAAP adjusted net loss is defined as net loss excluding share-based compensation expenses. |
Second Quarter 2024 Financial Results
Net Revenues.
Net revenues were
in thousand RMB, except for percentage |
Second Quarter |
||
2023 |
2024 |
Change |
|
Net Revenues |
2,073,453 |
2,249,996 |
8.5 % |
Net Product Revenues |
1,986,555 |
2,163,721 |
8.9 % |
From ZKH Platform |
1,756,114 |
1,893,447 |
7.8 % |
From GBB Platform |
230,441 |
270,274 |
17.3 % |
Net Service Revenues |
69,865 |
69,161 |
-1.0 % |
Other Revenues |
17,033 |
17,114 |
0.5 % |
-
Net Product Revenues.
Net product revenues were
RMB2,163.7 million (US$297.7 million ), representing an increase of 8.9% fromRMB1,986.6 million in the same period of 2023. The increase was mainly due to higher net product revenues generated from both the ZKH and GBB platforms, primarily driven by the strong increase in customer numbers. -
Net Service Revenues.
Net service revenues were
RMB69.2 million (US$9.5 million ), a decrease of 1.0% fromRMB69.9 million in the same period of 2023, primarily due to lower proportion of GMV generated by the marketplace model on the ZKH platform. -
Other Revenues.
Other revenues were
RMB17.1 million (US$2.4 million ), compared with RMB17.0 million in the same period of 2023.
Cost of Revenues.
Cost of revenues was
Gross Profit and Gross Margin.
Gross profit was
in thousand RMB, except for percentage and |
Second Quarter |
||
2023 |
2024 |
Change |
|
Gross Profit |
335,071 |
382,991 |
14.3 % |
% of Net Revenues |
16.2 % |
17.0 % |
86.2bps |
Under Product Sales (1P) |
|
|
|
ZKH Platform |
240,896 |
294,022 |
22.1 % |
% of Net Product Revenues from ZKH Platform |
13.7 % |
15.5 % |
181.1bps |
GBB Platform |
13,565 |
15,133 |
11.6 % |
% of Net Product Revenues from GBB Platform |
5.9 % |
5.6 % |
-28.7bps |
|
69,865 |
69,161 |
-1.0 % |
% of Net Service Revenues |
100.0 % |
100.0 % |
- |
Others |
10,745 |
4,675 |
-56.5 % |
% of Other Revenues |
63.1 % |
27.3 % |
-3,576.7bps |
|
[6] Take rate of marketplace model was 12.2% and 11.4% for the second quarter of 2024 and 2023, respectively. Take rate of market place model represents gross profit from marketplace model divided by GMV from marketplace model. |
Operating Expenses.
Operating expenses were
-
Fulfillment Expenses.
Fulfillment expenses were
RMB99.1 million (US$13.6 million ), a decrease of 7.1% fromRMB106.7 million in the same period of 2023. The decrease was primarily attributable to lower employee benefit costs and warehouse rental costs, partially offset by higher distribution expenses. Fulfillment expenses as a percentage of net revenues were 4.4%, compared with 5.1% in the same period of 2023. -
Sales and Marketing Expenses.
Sales and marketing expenses were
RMB157.7 million (US$21.7 million ), a decrease of 6.5% fromRMB168.6 million in the same period of 2023. The decrease was primarily attributable to lower travel expenses and employee benefit costs. Sales and marketing expenses as a percentage of net revenues were 7.0%, compared with 8.1% in the same period of 2023. -
Research and Development Expenses
. Research and development expenses were
RMB38.4 million (US$5.3 million ), a decrease of 16.4% fromRMB46.0 million in the same period of 2023. The decrease was primarily attributable to lower employee benefit costs. Research and development expenses as a percentage of net revenues were 1.7%, compared with 2.2% in the same period of 2023. -
General and Administrative Expenses.
General and administrative expenses were
RMB159.0 million (US$21.9 million ), an increase of 16.1% fromRMB136.9 million in the same period of 2023. The increase was primarily attributable to higher share-based compensation expenses, partially offset by the decrease in employee benefit costs. General and administrative expenses as a percentage of net revenues were 7.1%, compared with 6.6% in the same period of 2023.
Loss from Operations.
Loss from operations was
Non-GAAP EBITDA.
Non-GAAP EBITDA was negative
Net Loss.
Net loss was
Non-GAAP Adjusted Net Loss.
Non-GAAP adjusted net loss was
Basic and Diluted Net Loss per ADS[7] and Non-GAAP Adjusted Basic and Diluted Net Loss per ADS[8].
Basic and diluted net loss per ADS were
[7] ADSs are American depositary shares, each of which represents thirty-five (35) Class A ordinary shares of the Company. |
[8] Non-GAAP adjusted basic and diluted net loss per ADS is a non-GAAP financial measure, which is calculated by dividing non-GAAP net loss attributable to the Company's ordinary shareholders by the weighted average number of ADSs. |
Balance Sheet and Cash Flow
As of
Net cash generated from operating activities was
Exchange Rate
This announcement contains translations of certain Renminbi ("RMB") amounts into
Conference Call Information
The Company's management will hold a conference call on
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+1-888-317-6003 |
International: |
+1-412-317-6061 |
Mainland |
400-120-6115 |
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800-963-976 |
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+852-5808-1995 |
Access Code: |
7845776 |
The replay will be accessible through
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+1-877-344-7529 |
International: |
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+1-412-317-0088 |
Replay Access Code: |
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2271132 |
A live and archived webcast of the conference call will also be available on the Company's investor relations website at https://ir.zkh.com.
About
For more information, please visit: https://ir.zkh.com.
Use of Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: non-GAAP adjusted net profit/(loss), non-GAAP adjusted net profit/(loss) per ADS, basic and diluted, and non-GAAP EBITDA. The non-GAAP financial measures should not be considered in isolation from or construed as alternatives to their most directly comparable financial measures prepared in accordance with accounting principles generally accepted in
The Company defines non-GAAP adjusted net profit/(loss) for a specific period as net profit/(loss) in the same period excluding share-based compensation expenses. The Company defines non-GAAP EBITDA as profit/(loss) before interest expenses, income tax expenses/(benefits) and depreciation and amortization expenses. Non-GAAP adjusted net profit/(loss) per ADS is calculated by dividing adjusted net profit/(loss) attributable to the Company's ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods and then multiplied by 35.
The Company presents these non-GAAP financial measures because they are used by the management to evaluate the Company's operating performance and formulate business plans. The Company believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in net profit/(loss) and certain expenses that are not expected to result in future cash payments or that are non-recurring in nature. The Company also believes that the use of these non-GAAP financial measures facilitates investors' assessment of its operating performance, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by the management in financial and operational decision making.
The non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider the non-GAAP financial measures as substitutes for, or superior to, their most directly comparable financial measures prepared in accordance with GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" set forth at the end of this press release.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made pursuant to the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
IR Department
E-mail: IR@zkh.com
Tel: +86-10-6508-0677
E-mail: zkh@thepiacentegroup.com
In
Tel: +1-212-481-2050
E-mail: zkh@thepiacentegroup.com
ZKH GROUP LIMITED |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(All amounts in thousands, except share, ADS, per share and per ADS data) |
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As of
|
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As of
|
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2023 |
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2024 |
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RMB |
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RMB |
|
US$ |
Assets |
|
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|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
1,090,621 |
|
1,308,972 |
|
180,121 |
Restricted cash |
|
159,751 |
|
150,305 |
|
20,683 |
Short-term investments |
|
874,210 |
|
581,203 |
|
79,976 |
Accounts receivable (net of allowance |
|
3,639,794 |
|
3,398,738 |
|
467,682 |
Notes receivable |
|
352,997 |
|
274,726 |
|
37,804 |
Inventories |
|
668,984 |
|
672,534 |
|
92,544 |
Prepayments and other current assets |
|
168,117 |
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182,692 |
|
25,138 |
Total current assets |
|
6,954,474 |
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6,569,170 |
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903,948 |
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Non-current assets: |
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Property and equipment, net |
|
145,288 |
|
173,586 |
|
23,886 |
Land use right |
|
11,033 |
|
10,920 |
|
1,503 |
Operating lease right-of-use assets, net |
|
224,930 |
|
196,811 |
|
27,082 |
Intangible assets, net |
|
20,096 |
|
17,918 |
|
2,466 |
|
|
30,807 |
|
30,807 |
|
4,239 |
Total non-current assets |
|
432,154 |
|
430,042 |
|
59,176 |
Total assets |
|
7,386,628 |
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6,999,212 |
|
963,124 |
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|
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Liabilities |
|
|
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Current liabilities: |
|
|
|
|
|
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Short-term borrowings |
|
585,000 |
|
591,000 |
|
81,324 |
Accounts and notes payable |
|
2,883,370 |
|
2,599,001 |
|
357,634 |
Operating lease liabilities |
|
91,230 |
|
86,940 |
|
11,963 |
Advance from customers |
|
19,907 |
|
19,095 |
|
2,628 |
Accrued expenses and other current |
|
448,225 |
|
362,294 |
|
49,854 |
Total current liabilities |
|
4,027,732 |
|
3,658,330 |
|
503,403 |
|
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Non-current liabilities: |
|
|
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Long-term borrowings |
|
- |
|
19,813 |
|
2,726 |
Non-current operating lease liabilities |
|
146,970 |
|
122,024 |
|
16,791 |
Other non-current liabilities |
|
507 |
|
441 |
|
61 |
Total non-current liabilities |
|
147,477 |
|
142,278 |
|
19,578 |
Total liabilities |
|
4,175,209 |
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3,800,608 |
|
522,981 |
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Ordinary shares ( |
|
4 |
|
4 |
|
1 |
Additional paid-in capital |
|
8,139,349 |
|
8,274,123 |
|
1,138,557 |
Statutory reserves |
|
6,013 |
|
6,013 |
|
827 |
Accumulated other comprehensive loss |
|
(25,154) |
|
(12,683) |
|
(1,745) |
Accumulated deficit |
|
(4,908,793) |
|
(5,065,983) |
|
(697,102) |
|
|
- |
|
(2,870) |
|
(395) |
|
|
3,211,419 |
|
3,198,604 |
|
440,143 |
Non-controlling interests |
|
- |
|
- |
|
- |
Total shareholders' equity |
|
3,211,419 |
|
3,198,604 |
|
440,143 |
Total liabilities and shareholders' deficit |
|
7,386,628 |
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6,999,212 |
|
963,124 |
ZKH GROUP LIMITED |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(All amounts in thousands, except share, ADS, per share and per ADS data) |
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For the three months ended |
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For the six months ended |
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RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Net revenues |
|
|
|
|
|
|
|
|
|
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Net product revenues |
1,986,555 |
|
2,163,721 |
|
297,738 |
|
3,853,214 |
|
3,938,740 |
|
541,989 |
Net service revenues |
69,865 |
|
69,161 |
|
9,517 |
|
128,933 |
|
135,815 |
|
18,689 |
Other revenues |
17,033 |
|
17,114 |
|
2,355 |
|
30,066 |
|
35,850 |
|
4,933 |
Total net revenues |
2,073,453 |
|
2,249,996 |
|
309,610 |
|
4,012,213 |
|
4,110,405 |
|
565,611 |
Cost of revenues |
(1,738,382) |
|
(1,867,005) |
|
(256,908) |
|
(3,346,344) |
|
(3,393,338) |
|
(466,939) |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Fulfillment |
(106,674) |
|
(99,097) |
|
(13,636) |
|
(217,582) |
|
(196,445) |
|
(27,032) |
Sales and marketing |
(168,620) |
|
(157,689) |
|
(21,699) |
|
(348,496) |
|
(321,802) |
|
(44,281) |
Research and development |
(45,977) |
|
(38,431) |
|
(5,288) |
|
(93,718) |
|
(78,267) |
|
(10,770) |
General and administrative |
(136,893) |
|
(158,987) |
|
(21,877) |
|
(276,584) |
|
(321,380) |
|
(44,223) |
Loss from operations |
(123,093) |
|
(71,213) |
|
(9,798) |
|
(270,511) |
|
(200,827) |
|
(27,634) |
Interest and investment income |
17,606 |
|
14,446 |
|
1,988 |
|
29,417 |
|
32,500 |
|
4,472 |
Interest expense |
(4,507) |
|
(5,522) |
|
(760) |
|
(7,600) |
|
(11,217) |
|
(1,544) |
Others, net |
(19,537) |
|
(3,934) |
|
(541) |
|
21,432 |
|
22,508 |
|
3,097 |
Loss before income tax |
(129,531) |
|
(66,223) |
|
(9,111) |
|
(227,262) |
|
(157,036) |
|
(21,609) |
Income tax expenses |
(49) |
|
(66) |
|
(9) |
|
(181) |
|
(154) |
|
(21) |
Net loss |
(129,580) |
|
(66,289) |
|
(9,120) |
|
(227,443) |
|
(157,190) |
|
(21,630) |
Less: net income attributable to non- |
(33) |
|
- |
|
- |
|
238 |
|
- |
|
- |
Less: net income attributable to redeemable |
(7) |
|
- |
|
- |
|
(193) |
|
- |
|
- |
Net loss attributable to |
(129,540) |
|
(66,289) |
|
(9,120) |
|
(227,488) |
|
(157,190) |
|
(21,630) |
Accretion on preferred shares to |
(419,425) |
|
- |
|
- |
|
(475,803) |
|
- |
|
- |
Net loss attributable to |
(548,965) |
|
(66,289) |
|
(9,120) |
|
(703,291) |
|
(157,190) |
|
(21,630) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
(129,580) |
|
(66,289) |
|
(9,120) |
|
(227,443) |
|
(157,190) |
|
(21,630) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
(81,370) |
|
(9,121) |
|
(1,255) |
|
(60,220) |
|
(12,471) |
|
(1,716) |
Total comprehensive loss |
(210,950) |
|
(75,410) |
|
(10,375) |
|
(287,663) |
|
(169,661) |
|
(23,346) |
Less: comprehensive income attributable |
(33) |
|
- |
|
- |
|
238 |
|
- |
|
- |
Less: comprehensive loss attributable to |
(7) |
|
- |
|
- |
|
(193) |
|
- |
|
- |
Comprehensive loss attributable to ZKH
|
(210,910) |
|
(75,410) |
|
(10,375) |
|
(287,708) |
|
(169,661) |
|
(23,346) |
Accretion on Preferred Shares to |
(419,425) |
|
- |
|
- |
|
(475,803) |
|
- |
|
- |
Total comprehensive loss attributable to
|
(630,335) |
|
(75,410) |
|
(10,375) |
|
(763,511) |
|
(169,661) |
|
(23,346) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ordinary share attributable
|
|
|
|
|
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|
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Basic and diluted |
(0.41) |
|
(0.01) |
|
(0.00) |
|
(0.53) |
|
(0.03) |
|
(0.00) |
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
1,322,841,307 |
|
5,747,591,752 |
|
5,747,591,752 |
|
1,322,841,307 |
|
5,745,856,349 |
|
5,745,856,349 |
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Net loss per ADS attributable to
|
|
|
|
|
|
|
|
|
|
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Basic and diluted |
(14.52) |
|
(0.40) |
|
(0.06) |
|
(18.61) |
|
(0.96) |
|
(0.13) |
Weighted average number of ADS (35
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|
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|
|
|
|
|
|
|
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Basic and diluted |
37,795,466 |
|
164,216,907 |
|
164,216,907 |
|
37,795,466 |
|
164,167,324 |
|
164,167,324 |
ZKH GROUP LIMITED |
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RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
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(All amounts in thousands, except share, ADS, per share and per ADS data) |
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For the three months ended |
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For the six months ended |
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RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Net loss |
(129,580) |
|
(66,289) |
|
(9,120) |
|
(227,443) |
|
(157,190) |
|
(21,630) |
Income tax expenses |
49 |
|
66 |
|
9 |
|
181 |
|
154 |
|
12 |
Interest expense |
4,507 |
|
5,522 |
|
760 |
|
7,600 |
|
11,217 |
|
1,544 |
Depreciation and amortization expense |
17,173 |
|
13,633 |
|
1,876 |
|
40,586 |
|
28,703 |
|
3,950 |
Non-GAAP EBITDA |
(107,851) |
|
(47,068) |
|
(6,475) |
|
(179,076) |
|
(117,116) |
|
(16,124) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
||||||||
|
|
|
|
|
|
|
|
||||
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Net loss |
(129,580) |
|
(66,289) |
|
(9,120) |
|
(227,443) |
|
(157,190) |
|
(21,630) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expenses |
82 |
|
31,432 |
|
4,325 |
|
11,072 |
|
78,874 |
|
10,853 |
Non-GAAP adjusted net loss |
(129,498) |
|
(34,857) |
|
(4,796) |
|
(216,371) |
|
(78,316) |
|
(10,777) |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net loss
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
(0.10) |
|
(0.01) |
|
(0.00) |
|
(0.16) |
|
(0.01) |
|
(0.00) |
Weighted average number of ordinary
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
1,322,841,307 |
|
5,747,591,752 |
|
5,747,591,752 |
|
1,322,841,307 |
|
5,745,856,349 |
|
5,745,856,349 |
Non-GAAP adjusted net loss
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
(3.43) |
|
(0.21) |
|
(0.03) |
|
(5.72) |
|
(0.48) |
|
(0.07) |
Weighted average number of ADS (35
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
37,795,466 |
|
164,216,907 |
|
164,216,907 |
|
37,795,466 |
|
164,167,324 |
|
164,167,324 |
View original content:https://www.prnewswire.com/news-releases/zkh-group-limited-announces-second-quarter-2024-unaudited-financial-results-302228436.html
SOURCE