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ZKH Group Limited's Financial Performance for Q4 and FY 2024

SHANGHAI, March 18, 2025 — ZKH Group Limited, a prominent player in MRO (maintenance, repair, and operations) procurement services in China, has unveiled its unaudited financial performance for the fourth quarter and the entire fiscal year ending December 31, 2024. The reports highlight a turbulent market yet reflect the company's strategic responsiveness to industry demands.

Financial Highlights

During Q4 2024, ZKH achieved a total Gross Merchandise Value (GMV) of RMB 2.69 billion, representing a notable 16.1% decline from the previous year's quarterly figure of RMB 3.21 billion. For the fiscal year, the company's GMV totaled RMB 10.48 billion, a drop of 5.4% compared to the prior year. This reduction reflects growing market competition and the tightening of budgetary constraints among clients.

The company reported net revenues of RMB 2.37 billion for Q4 2024, down 3% from RMB 2.44 billion in the corresponding quarter of 2023. Over the fiscal year, revenues slightly increased to RMB 8.76 billion, marking a minimal growth of 0.5%. The company also highlighted a shift in revenue generation, where product sales accounted for RMB 2.32 billion in Q4 and RMB 8.45 billion for the fiscal year.

Despite experiencing slight overall growth in product revenues, ZKH has faced challenges under its marketplace model, contributing to an operational loss of RMB 32.59 million in Q4 2024 compared to a loss of RMB 6.78 million in Q4 2023.

Customer Base Expansion

A positive aspect of the report was the increase in the company's customer base. ZKH saw a 9.4% growth in the number of customers in Q4 2024, reaching 46,192, and a significant 26.1% increase in total customers for the year, totaling 83,958, showcasing the company's commitment to enhancing customer loyalty and satisfaction.

Profitability and Operational Adjustments

ZKH Group's Chairman and CEO, Eric Long Chen, noted, “The dynamic demand landscape in 2024 brought considerable challenges; however, our performance illustrates our resilience and leadership within China's MRO sector.” The company continues to focus on profitability through expanded digitalization and operational efficiency, as seen in their cash flow reports indicating net cash generation of RMB 170.7 million during Q4 2024.

The financial overview reveals net loss figures standing at RMB 29.1 million for Q4 2024 versus a net profit of RMB 20.2 million in Q4 2023, emphasizing the need for ongoing strategic optimizations as the company seeks to return to a profitable trajectory in 2025.

Looking Ahead

ZKH's CFO, Max Chun Chiu Lai, remarked on the necessity of business optimization efforts despite short-term setbacks in GMV. “We believe that the measures taken will position us for sustainability and profitability moving forward,” he stated. ZKH Group remains resolute in advancing digitalization and supply chain capabilities, aiming to capitalize on future growth potential in the MRO market.

As ZKH Group Limited prepares for a future bolstered by improved technology and operational frameworks, the company continues to remain a crucial player in China's burgeoning MRO procurement landscape. Stakeholders await the company's next strategic moves in the face of evolving market demands and competitive pressures.