ZKH Group Limited Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
- Significant growth in GMV by 20.2% in Q4 2023 compared to the previous year.
- Net revenue increased by 8.2% in Q4 2023, reaching RMB 2,443.9 million.
- Gross profit improved by 10.9% in Q4 2023, with a gross margin of 17.1%.
- Operating loss reduced by 92.4% in Q4 2023, showcasing improved operational efficiency.
- Non-GAAP EBITDA margin increased to 1.8% in Q4 2023 from negative 2.5% in the previous year.
- The company aims to launch its overseas business in the US in the second half of 2024.
- None.
Insights
The reported growth in GMV and the transition towards profitability for ZKH Group Limited indicate a positive trajectory in the MRO procurement service industry. Specifically, the 18.2% year-over-year increase in GMV and the shift from an operating loss to profitability in the fourth quarter are indicative of a successful adaptation to market conditions and an effective business strategy.
The substantial growth in the marketplace model (3P) by 90.2% suggests a strategic pivot towards a platform-centric approach, which typically yields higher margins and scalability. This is further corroborated by the improved gross margin and reduced operating loss margin. The expansion of the customer base by 14.8% aligns with the revenue growth, reinforcing the company's market penetration efforts.
However, it's important to note the modest 4.9% increase in net revenue compared to the GMV growth. This discrepancy could reflect a higher proportion of marketplace (3P) sales, which are recognized on a net basis and could potentially mask underlying profitability challenges. The reported net loss margin reduction and the move towards a positive EBITDA are encouraging, yet investors should monitor the sustainability of these metrics, especially as the company plans to expand overseas.
Analyzing ZKH Group's financial performance reveals a significant improvement in operational efficiency, as evidenced by the decrease in operating expenses as a percentage of net revenue from 24.1% to 21.2%. This suggests effective cost management and potential economies of scale as the business grows.
The reported net profit in Q4 2023, following a history of net losses, is a key milestone. It reflects not only the company's growth but also its ability to control costs and improve margins. The adjusted net profit margin turning positive is a strong signal to investors regarding the company's potential for sustainable profitability.
Investors should consider the company's liquidity position, with cash and equivalents showing a slight increase from the previous year. However, the increase in net cash used in operating activities could raise questions about the company's cash flow management. As ZKH Group prepares for its U.S. expansion, the capital allocation and the impact of this move on its financial stability will be critical areas to watch.
The MRO procurement service sector is often viewed as a bellwether for industrial activity. ZKH Group's performance can be seen as a reflection of broader economic trends in China, including the recovery of industrial sectors post-pandemic. The company's growth amidst a challenging macro environment suggests resilience and could be a positive indicator for the sector's outlook.
The company's investment in digitalization and AI capabilities is a strategic move that aligns with the global trend towards digital transformation in supply chain management. This could enhance operational efficiencies and customer service, providing a competitive edge in both domestic and international markets.
With plans to enter the U.S. market, ZKH Group will be subject to exchange rate risks and trade dynamics between the U.S. and China. The success of this expansion will depend on the company's ability to navigate these complexities and leverage its technological investments to gain market share abroad.
Fourth Quarter and Fiscal Year 2023 Operational and Financial Highlights
in thousand RMB, except for | Fourth Quarter | Fiscal Year | |||||
2022 | 2023 | Change | 2022 | 2023 | Change | ||
GMV[1] | 2,669,138 | 3,207,139 | 20.2 % | 9,372,961 | 11,083,035 | 18.2 % | |
GMV by Platform | |||||||
ZKH Platform | 2,457,580 | 2,907,077 | 18.3 % | 8,563,478 | 10,112,872 | 18.1 % | |
GBB Platform | 211,558 | 300,062 | 41.8 % | 809,483 | 970,163 | 19.8 % | |
GMV by Business Model | |||||||
Product Sales (1P) | 2,173,506 | 2,321,861 | 6.8 % | 7,928,804 | 8,336,846 | 5.1 % | |
Marketplace (3P) | 495,632 | 885,279 | 78.6 % | 1,444,159 | 2,746,189 | 90.2 % | |
Number of Customers | 36,401 | 42,220 | 16.0 % | 58,004 | 66,562 | 14.8 % | |
ZKH Platform | 26,319 | 31,174 | 18.4 % | 40,495 | 48,211 | 19.1 % | |
GBB Platform | 10,082 | 11,046 | 9.6 % | 17,509 | 18,351 | 4.8 % | |
Net Revenue[2] | 2,259,750 | 2,443,961 | 8.2 % | 8,315,236 | 8,721,175 | 4.9 % | |
Gross Profit | 376,265 | 417,151 | 10.9 % | 1,317,670 | 1,452,434 | 10.2 % | |
% of Net Revenue | 16.7 % | 17.1 % | 41.8bps | 15.8 % | 16.7 % | 80.8bps | |
Operating Loss | (89,078) | (6,779) | -92.4 % | (685,706) | (398,724) | -41.9 % | |
% of Net Revenue | -3.9 % | -0.3 % | 366.5bps | -8.2 % | -4.6 % | 367.4bps | |
Non-GAAP EBITDA[3] | (56,741) | 43,272 | -176.3 % | (561,337) | (211,896) | -62.3 % | |
% of Net Revenue | -2.5 % | 1.8 % | 428.2bps | -6.8 % | -2.4 % | 432.1bps | |
Net (Loss)/Profit | (83,531) | 20,229 | -124.2 % | (731,121) | (304,900) | -58.3 % | |
% of Net Revenue | -3.7 % | 0.8 % | 452.4bps | -8.8 % | -3.5 % | 529.6bps | |
Non-GAAP Adjusted Net | (82,224) | 27,538 | -133.5 % | (626,141) | (287,507) | -54.1 % | |
% of Net Revenue | -3.6 % | 1.1 % | 476.5bps | -7.5 % | -3.3 % | 423.3bps | |
Mr. Eric Long Chen, Chairman and Chief Executive Officer of ZKH, stated, "Despite a challenging macro environment, we ended 2023 with solid growth, an improved gross margin, reduced losses, and, importantly, profitability in the fourth quarter, demonstrating the resilience and continued growth of the MRO industry and our strong execution to drive our business forward. We have invested and strengthened our advantages in (i) product capabilities through product category expansion and product line extension, (ii) client coverage and servicing capabilities by optimizing sales team's structure, and (iii) digitalization and artificial intelligence capabilities by integrating our industry know-how, data assets, and IT talents. As we look ahead to 2024, brimming with both challenges and opportunities, we will continue to invest, refine, and optimize our operations to propel long-term growth. In addition, we are aiming to officially launch our overseas business in
Mr. Max Chun Chiu Lai, Chief Financial Officer of ZKH, added, "We are delighted with our fourth quarter operational and financial performance, which enabled us to finish 2023 on a strong note, especially as we mark our first quarter as a public company. Powered by our growth from both the ZKH Platform and the GBB Platform, our full-year GMV increased by
[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] Net revenue under the marketplace model is recognized on a net basis. Therefore, a higher proportion of GMV generated by the marketplace model tends to increase the difference in growth rate between GMV and net revenue. The proportion of GMV generated by the marketplace model was |
[3] Non-GAAP EBITDA is defined as profit/(loss) before interest expenses, income tax expenses/(benefits) and depreciation and amortization expenses. |
[4] Non-GAAP adjusted net (loss)/profit is defined as net (loss)/profit excluding share-based compensation expenses and interest expenses due to the issuance of Series F Convertible Notes, which have been fully converted into Series F preferred shares without payment of interest. |
Fourth Quarter 2023 Financial Results
Net Revenues. Net revenues were
in thousand RMB, except for percentage | Fourth Quarter | ||||
2022 | 2023 | Change | |||
Net Revenue | 2,259,750 | 2,443,961 | 8.2 % | ||
Net Product Revenues | 2,188,957 | 2,324,986 | 6.2 % | ||
From ZKH Platform | 1,978,830 | 2,028,986 | 2.5 % | ||
From GBB Platform | 210,127 | 296,000 | 40.9 % | ||
Net Service Revenues | 56,942 | 98,592 | 73.1 % | ||
Other Revenues | 13,851 | 20,383 | 47.2 % | ||
- Net Product Revenues. Net product revenues were
RMB2,325.0 million (US ), representing an increase of$327.5 million 6.2% fromRMB2,189.0 million in the same period of 2022. The increase was mainly attributable to higher revenues generated from the ZKH platform and the GBB platform, primarily driven by increased customer numbers. - Net Service Revenues. Net service revenues were
RMB98.6 million (US ), an increase of$13.9 million 73.1% fromRMB56.9 million in the same period of 2022, primarily due to the growth of the marketplace model on the ZKH platform. - Other Revenues. Other revenues were
RMB20.4 million (US ), an increase of$2.9 million 47.2% fromRMB13.9 million in the same period of 2022, mainly attributable to higher revenues generated from the Company's warehousing and logistic services.
Cost of Revenues. Cost of revenues was
Gross Profit and Gross Margin. Gross profit was
in thousand RMB, except for percentage and basis points ("bps") | Fourth Quarter | |||||
2022 | 2023 | Change | ||||
Gross Profit | 376,265 | 417,151 | 10.9 % | |||
% of Net Revenue | 16.7 % | 17.1 % | 41.8bps | |||
Under Product Sales (1P) | ||||||
ZKH Platform | 297,317 | 291,915 | -1.8 % | |||
% of Net Product Revenues from ZKH Platform | 15.0 % | 14.4 % | -63.8bps | |||
GBB Platform | 14,752 | 18,688 | 26.7 % | |||
% of Net Product Revenues from GBB Platform | 7.0 % | 6.3 % | -70.7bps | |||
Under Marketplace (3P) | 56,942 | 98,592 | 73.1 % | |||
% of Net Service Revenues | 100 % | 100.0 % | - | |||
Others | 7,254 | 7,956 | 9.7 % | |||
% of Other Revenues | 52.4 % | 39.0 % | -1,333.9bps | |||
Operating Expenses. Operating expenses were
- Fulfillment Expenses. Fulfillment expenses were
RMB107.8 million (US ), an increase of$15.2 million 9.8% fromRMB98.2 million in the same period of 2022. The increase was primarily attributable to higher employee benefit costs. Fulfillment expenses as a percentage of net revenues were4.4% , compared with4.3% in the same period of 2022. - Sales and Marketing Expenses. Sales and marketing expenses were
RMB170.0 million (US ), an increase of$23.9 million 3.2% fromRMB164.7 million in the same period of 2022. The increase was primarily attributable to increased travel as well as marketing and promotion expenses as business travel and marketing and promotion activities resumed after COVID-19 restrictions were lifted. Sales and marketing expenses as a percentage of net revenues were7.0% , compared with7.3% in the same period of 2022. - Research and Development Expenses. Research and development expenses were
RMB37.8 million (US ), a decrease of$5.3 million 36.4% fromRMB59.5 million in the same period of 2022. The decrease was primarily attributable to lower employee benefit costs as a result of a reduced average research and development headcount. Research and development expenses as a percentage of net revenues were1.5% , compared with2.6% in the same period of 2022. - General and Administrative Expenses. General and administrative expenses were
RMB108.2 million (US ), a decrease of$15.2 million 24.2% fromRMB142.8 million in the same period of 2022. The decrease was primarily attributable to lower employee benefit costs as a result of a reduced average headcount. General and administrative expenses as a percentage of net revenues were4.4% , compared with6.3% in the same period of 2022.
Loss from Operations. Loss from operations was
Non-GAAP EBITDA. Non-GAAP EBITDA was
Net Profit/(Loss). Net profit was
Non-GAAP Adjusted Net Profit/(Loss). Non-GAAP adjusted net profit was
Basic and Diluted Net Profit/(Loss) per ADS[5] and Non-GAAP Adjusted Basic and Diluted Net Profit/(Loss) per ADS[6]. Basic and diluted net profit per ADS were
[5] ADSs are American depositary shares, each of which represents thirty-five (35) Class A ordinary shares of the Company. |
[6] Non-GAAP adjusted basic and diluted net profit/(loss) per ADS is a non-GAAP financial measure, which is calculated by dividing non-GAAP net profit/(loss) attributable to the Company's ordinary shareholders by the weighted average number of ADSs. |
Fiscal Year 2023 Financial Results
Net Revenues. Net revenues were
in thousand RMB, except for percentage | Fiscal Year | ||||
2022 | 2023 | Change | |||
Net Revenue | 8,315,236 | 8,721,175 | 4.9 % | ||
Net Product Revenues | 8,086,920 | 8,341,603 | 3.1 % | ||
From ZKH Platform | 7,277,260 | 7,381,501 | 1.4 % | ||
From GBB Platform | 809,660 | 960,102 | 18.6 % | ||
Net Service Revenues | 179,508 | 307,412 | 71.3 % | ||
Other Revenues | 48,808 | 72,160 | 47.8 % | ||
- Net Product Revenues. Net product revenues were
RMB8,341.6 million (US ), representing an increase of$1,174.9 million 3.1% fromRMB8,086.9 million in 2022. The increase was mainly attributable to higher revenues generated from the ZKH platform and the GBB platform, primarily driven by increased customer numbers. - Net Service Revenues. Net service revenues were
RMB307.4 million (US ), an increase of$43.3 million 71.3% fromRMB179.5 million in 2022, primarily due to the significant growth of the marketplace model on the ZKH platform. - Other Revenues. Other revenues were
RMB72.2 million (US ), an increase of$10.2 million 47.8% fromRMB48.8 million in 2022, mainly attributable to higher revenues generated from the Company's warehousing and logistic services.
Cost of Revenues. Cost of revenues was
Gross Profit and Gross Margin. Gross profit was
in thousand RMB, except for percentage and basis points ("bps") | Fiscal Year | |||||
2022 | 2023 | Change | ||||
Gross Profit | 1,317,669 | 1,452,434 | 10.2 % | |||
% of Net Revenue | 15.8 % | 16.7 % | 80.8bps | |||
Under Product Sales (1P) | ||||||
ZKH Platform | 1,045,024 | 1,046,209 | 0.1 % | |||
% of Net Product Revenues from ZKH Platform | 14.4 % | 14.2 % | -18.7bps | |||
GBB Platform | 55,756 | 61,789 | 10.8 % | |||
% of Net Product Revenues from GBB Platform | 6.9 % | 6.4 % | -45.1bps | |||
Under Marketplace (3P) | 179,508 | 307,412 | 71.3 % | |||
% of Net Service Revenues | 100.0 % | 100.0 % | - | |||
Others | 37,381 | 37,024 | -1.0 % | |||
% of Other Revenues | 76.6 % | 51.3 % | -2,528.0bps | |||
Operating Expenses. Total operating expenses were
- Fulfillment Expenses. Fulfillment expenses were
RMB439.0 million (US ), a decrease of$61.8 million 6.1% fromRMB467.4 million in 2022. The decrease was primarily attributable to (i) the decrease in distribution expenses as the Company switched to more distribution service providers that can offer competitive rates and increased direct cooperation with local transportation fleets instead of relying on distribution service providers as intermediaries, and (ii) the decrease in rental expenses. Fulfillment expenses as a percentage of net revenues were5.0% , compared with5.6% in 2022. - Sales and Marketing Expenses. Sales and marketing expenses were
RMB700.8 million (US ), an increase of$98.7 million 2.6% fromRMB683.2 million in 2022. The increase was primarily attributable to increased travel as well as marketing and promotion expenses as business travel and marketing and promotion activities resumed after COVID-19 restrictions were lifted, partially offset by lower employee benefit costs as a result of a reduced average sales and marketing headcount. Sales and marketing expenses as a percentage of net revenues were8.0% , compared with8.2% in 2022. - Research and Development Expenses. Research and development expenses were
RMB175.9 million (US ), a decrease of$24.8 million 26.9% fromRMB240.5 million in 2022. The decrease was primarily attributable to lower employee benefit costs as a result of a reduced average research and development headcount. Research and development expenses as a percentage of net revenues were2.0% , compared with2.9% in 2022. - General and Administrative Expenses. General and administrative expenses were
RMB535.5 million (US ), a decrease of$75.4 million 12.5% fromRMB612.3 million in 2022. The decrease was primarily attributable to lower employee benefit costs as a result of a reduced average headcount, partially offset by increased travel expenses. General and administrative expenses as a percentage of net revenues were6.1% , compared with7.4% in the same period of 2022.
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 and Non-GAAP Adjusted Basic and Diluted Net Loss per ADS. Basic and diluted net loss per ADS were
Balance Sheet and Cash Flow
As of December 31, 2023, the Company had cash and cash equivalents, restricted cash and short-term investments of
Net cash used in 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 Tuesday, March 19, 2024, at 8:00 A.M.
+1-888-317-6003 | |
International: | +1-412-317-6061 |
Mainland | 400-120-6115 |
800-963-976 | |
+852-5808-1995 | |
Access Code: | 3148822 |
The replay will be accessible through March 26, 2024, by dialing the following numbers:
United States: | +1-877-344-7529 |
International: | +1-412-317-0088 |
Replay Access Code: | 4272788 |
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 ZKH Group Limited
ZKH Group Limited (NYSE: ZKH) is a leading MRO procurement service platform in
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 and interest expense due to the issuance of Series F Convertible Notes, which have been fully converted into Series F preferred shares without payment of interests. 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
ZKH Group Limited
IR Department
E-mail: IR@zkh.com
Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: zkh@thepiacentegroup.com
In
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: zkh@thepiacentegroup.com
ZKH GROUP LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(All amounts in thousands, except share, ADS, per share and per ADS data) | ||||||
As of December 31, | ||||||
2022 | 2023 | |||||
RMB | RMB | US$ | ||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | 1,954,246 | 1,090,621 | 153,641 | |||
Restricted cash | 51,610 | 159,751 | 22,470 | |||
Short-term investments | - | 874,210 | 123,130 | |||
Accounts receivable (net of allowance for credit | 3,067,064 | 3,639,794 | 512,654 | |||
Notes receivable | 310,708 | 352,997 | 49,719 | |||
Inventories | 655,997 | 668,984 | 94,224 | |||
Prepayments and other current assets | 243,630 | 168,117 | 23,679 | |||
Total current assets | 6,283,255 | 6,954,474 | 979,517 | |||
Non-current assets: | ||||||
Property and equipment, net | 166,740 | 145,288 | 20,463 | |||
Land use right | 10,930 | 11,033 | 1,554 | |||
Operating lease right-of-use assets, net | 297,937 | 224,930 | 31,681 | |||
Intangible assets, net | 24,051 | 20,096 | 2,830 | |||
Goodwill | 30,807 | 30,807 | 4,339 | |||
Total non-current assets | 530,465 | 432,154 | 60,867 | |||
Total assets | 6,813,720 | 7,386,628 | 1,040,384 | |||
Liabilities | ||||||
Current liabilities: | ||||||
Short-term borrowings | 250,000 | 585,000 | 82,396 | |||
Accounts and notes payable | 2,566,136 | 2,883,370 | 406,114 | |||
Operating lease liabilities | 95,775 | 91,230 | 12,849 | |||
Advance from customers | 31,131 | 19,907 | 2,804 | |||
Accrued expenses and other current liabilities | 539,191 | 448,225 | 63,131 | |||
Total current liabilities | 3,482,233 | 4,027,732 | 567,294 | |||
Non-current liabilities: | ||||||
Non-current operating lease liabilities | 214,427 | 146,970 | 20,700 | |||
Other non-current liabilities | 782 | 507 | 71 | |||
Total non-current liabilities | 215,209 | 147,477 | 20,771 | |||
Total liabilities | 3,697,442 | 4,175,209 | 588,065 | |||
Mezzanine equity: | ||||||
Series A convertible redeemable preferred shares | 26,934 | - | - | |||
Series A+ convertible redeemable preferred | 40,608 | - | - | |||
Series B convertible redeemable preferred shares | 389,960 | - | - | |||
Series B+ convertible redeemable preferred shares | 240,033 | - | - | |||
Series C1 convertible redeemable preferred shares | 769,548 | - | - | |||
Series C2 convertible redeemable preferred shares | 458,503 | - | - | |||
Series D1 convertible redeemable preferred shares issued and outstanding as of December 31, 2022, | 1,219,370 | - | - | |||
Series D2 convertible redeemable preferred shares | 179,429 | - | - | |||
Series E convertible redeemable preferred shares | 2,226,911 | - | - | |||
Series F convertible redeemable preferred shares | 1,631,477 | - | - | |||
Total mezzanine equity | 7,182,773 | - | - | |||
ZKH Group Limited shareholders' | ||||||
Ordinary shares ( | 1 | 4 | 1 | |||
Additional paid-in capital | - | 8,139,349 | 1,146,403 | |||
Statutory reserves | 5,278 | 6,013 | 847 | |||
Accumulated other comprehensive loss | (51,910) | (25,154) | (3,543) | |||
Accumulated deficit | (4,024,102) | (4,908,793) | (691,389) | |||
Total ZKH Group Limited shareholders' | (4,070,733) | 3,211,419 | 452,319 | |||
Non-controlling interests | 4,238 | - | - | |||
Total shareholders' (deficit)/equity | (4,066,495) | 3,211,419 | 452,319 | |||
Total liabilities, mezzanine equity and | 6,813,720 | 7,386,628 | 1,040,384 | |||
ZKH GROUP LIMITED | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) | |||||||||||
(All amounts in thousands, except share, ADS, per share and per ADS data) | |||||||||||
For the three months ended December 31, | For the year ended December 31, | ||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Net revenues | |||||||||||
Net product revenues | 2,188,957 | 2,324,986 | 327,467 | 8,086,920 | 8,341,603 | 1,174,890 | |||||
Net service revenues | 56,942 | 98,592 | 13,886 | 179,508 | 307,412 | 43,298 | |||||
Other revenues | 13,851 | 20,383 | 2,871 | 48,808 | 72,160 | 10,164 | |||||
Total net revenues | 2,259,750 | 2,443,961 | 344,224 | 8,315,236 | 8,721,175 | 1,228,352 | |||||
Cost of revenues | (1,883,485) | (2,026,810) | (285,470) | (6,997,566) | (7,268,741) | (1,023,781) | |||||
Operating expenses | |||||||||||
Fulfillment | (98,231) | (107,823) | (15,187) | (467,384) | (438,959) | (61,826) | |||||
Sales and marketing | (164,749) | (170,026) | (23,948) | (683,206) | (700,791) | (98,704) | |||||
Research and development | (59,517) | (37,841) | (5,330) | (240,534) | (175,915) | (24,777) | |||||
General and administrative | (142,846) | (108,240) | (15,245) | (612,252) | (535,493) | (75,423) | |||||
Loss from operations | (89,078) | (6,779) | (956) | (685,706) | (398,724) | (56,159) | |||||
Interest and investment income | 7,935 | 10,418 | 1,467 | 14,559 | 53,703 | 7,564 | |||||
Interest expense | (7,590) | (6,556) | (923) | (94,182) | (19,343) | (2,724) | |||||
Others, net | 5,366 | 23,086 | 3,252 | 33,737 | 59,659 | 8,403 | |||||
(Loss)/profit before income tax | (83,367) | 20,169 | 2,840 | (731,592) | (304,705) | (42,916) | |||||
Income tax (expenses)/benefits | (164) | 60 | 8 | 471 | (195) | (27) | |||||
Net (loss)/profit | (83,531) | 20,229 | 2,848 | (731,121) | (304,900) | (42,943) | |||||
Less: net income/(loss) attributable to non- | 35 | (44) | (6) | 333 | (393) | (55) | |||||
Less: net income/(loss) attributable to redeemable | 3,101 | - | - | 4,227 | (193) | (27) | |||||
Net (loss)/profit attributable to ZKH Group | (86,667) | 20,273 | 2,854 | (735,681) | (304,314) | (42,861) | |||||
Accretion on preferred shares to redemption value | (73,281) | (79,870) | (11,249) | (509,281) | (660,070) | (92,969) | |||||
Net loss attributable to ZKH Group Limited's | (159,948) | (59,597) | (8,395) | (1,244,962) | (964,384) | (135,830) | |||||
Net (loss)/profit | (83,531) | 20,229 | 2,848 | (731,121) | (304,900) | (42,944) | |||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustments | (23,052) | 76,369 | 10,756 | (50,980) | 26,756 | 3,769 | |||||
Total comprehensive (loss)/profit | (106,583) | 96,598 | 13,604 | (782,101) | (278,144) | (39,175) | |||||
Less: comprehensive income/(loss) attributable to | 35 | (44) | (6) | 333 | (393) | (55) | |||||
Less: comprehensive income/(loss) attributable to | 3,101 | - | - | 4,227 | (193) | (27) | |||||
Total comprehensive (loss)/profit attributable to | (109,719) | 96,642 | 13,610 | (786,661) | (277,558) | (39,093) | |||||
Accretion on Preferred Shares to redemption value | (73,281) | (79,870) | (11,249) | (509,281) | (660,070) | (92,969) | |||||
Total comprehensive (loss)/profit attributable to | (183,000) | 16,772 | 2,361 | (1,295,942) | (937,628) | (132,062) | |||||
Net loss per ordinary share attributable to | |||||||||||
Basic and diluted | (0.12) | (0.03) | (0.00) | (0.94) | (0.63) | (0.09) | |||||
Weighted average number of shares | |||||||||||
Basic and diluted | 1,325,036,140 | 2,138,210,789 | 2,138,210,789 | 1,325,036,140 | 1,528,540,765 | 1,528,540,765 | |||||
Net loss per ADS attributable to ordinary | |||||||||||
Basic and diluted | (4.22) | (0.98) | (0.14) | (32.88) | (22.08) | (3.11) | |||||
Weighted average number of ADS (35 Class A | |||||||||||
Basic and diluted | 37,858,175 | 61,091,737 | 61,091,737 | 37,858,175 | 43,672,593 | 43,672,593 | |||||
ZKH GROUP LIMITED | |||||||||||
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | |||||||||||
(All amounts in thousands, except share, ADS, per share and per ADS data) | |||||||||||
For the three months ended December 31, | For the year ended December 31, | ||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Net (loss)/profit | (83,531) | 20,229 | 2,849 | (731,121) | (304,900) | (42,944) | |||||
Income tax | 164 | (60) | (8) | (471) | 195 | 27 | |||||
Interest expenses | 7,590 | 6,556 | 923 | 94,182 | 19,343 | 2,724 | |||||
Depreciation and | 19,036 | 16,547 | 2,331 | 76,073 | 73,466 | 10,347 | |||||
Non-GAAP EBITDA | (56,741) | 43,272 | 6,095 | (561,337) | (211,896) | (29,846) | |||||
For the three months ended December 31, | For the year ended December 31, | ||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Net (loss)/profit | (83,531) | 20,229 | 2,849 | (731,121) | (304,900) | (42,944) | |||||
Add: | |||||||||||
Share-based compensation | (1,109) | 7,309 | 1,029 | 31,899 | 17,393 | 2,448 | |||||
Interest expense due to the | 2,416 | - | - | 73,081 | - | - | |||||
Adjusted net (loss)/profit | (82,224) | 27,538 | 3,878 | (626,141) | (287,507) | (40,496) | |||||
Non-GAAP net (loss)/profit | |||||||||||
Basic and diluted | (0.06) | 0.01 | 0.00 | (0.47) | (0.19) | (0.03) | |||||
Weighted average number of | |||||||||||
Basic and diluted | 1,325,036,140 | 2,138,210,789 | 2,138,210,789 | 1,325,036,140 | 1,528,540,765 | 1,528,540,765 | |||||
Non-GAAP net (loss)/profit | |||||||||||
Basic and diluted | (2.17) | 0.45 | 0.06 | (16.54) | (6.58) | (0.93) | |||||
Weighted average number of | |||||||||||
Basic and diluted | 37,858,175 | 61,091,737 | 61,091,737 | 37,858,175 | 43,672,593 | 43,672,593 | |||||
View original content:https://www.prnewswire.com/news-releases/zkh-group-limited-announces-fourth-quarter-and-fiscal-year-2023-unaudited-financial-results-302092733.html
SOURCE ZKH Group Limited
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