ZKH Group Limited Announces US$50 Million Share Repurchase Program

Rhea-AI Summary

ZKH Group (NYSE: ZKH) announced a US$50 million share repurchase program authorized by its board, allowing the repurchase of US$50 million of its American Depositary Shares over the next 12 months, ending June 13, 2025. The repurchases will be funded from the company's existing cash balance and may occur through various methods, including open market purchases, private negotiations, and block trades, depending on market conditions. Chairman and CEO Eric Long Chen stated that this move reflects the company's confidence in its business growth and future value creation, emphasizing a commitment to sustainable, profitable growth and enhancing shareholder value.

Positive

• ZKH Group has announced a US$50 million share repurchase program, which can indicate strong financial health and confidence in future performance.
• The share repurchase program is expected to enhance shareholder value by potentially increasing the stock price and reducing the number of outstanding shares.
• The funding for the repurchases will come from the company's existing cash balance, suggesting robust liquidity.
• The repurchase program may positively impact market perception, signaling management's belief in the company's undervalued stock.

Negative

• There is no guarantee that the share repurchase program will significantly impact the stock price or enhance shareholder value.
• The repurchase program might limit the company's cash reserves, potentially impacting its ability to invest in other growth opportunities or navigate financial downturns.
• Relying on market conditions for executing the repurchases introduces uncertainty regarding the timing and effectiveness of the program.

SHANGHAI, June 13, 2024 /PRNewswire/ -- ZKH Group Limited (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$50 million of its American Depositary Shares over the next 12 months, ending on June 13, 2025.

The share repurchases may be effected from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and will be implemented in accordance with applicable rules and regulations. The Company expects to fund the repurchases out of its existing cash balance. ‎

Mr. Eric Long Chen, Chairman and Chief Executive Officer of ZKH, said, "The share repurchase program underscores our confidence in ZKH's business growth and future value creation potential. We will remain committed to delivering sustainable, profitable growth and enhancing shareholder value."

About ZKH Group Limited

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. Leveraging its outstanding product selection and recommendation capabilities, ZKH provides digitalized, one-stop MRO procurement solutions that enable its customers to transparently and efficiently access a wide selection of quality products at competitive prices. ZKH also facilitates timely and reliable product delivery with professional fulfillment services. By catering specifically to the needs of MRO suppliers and customers through its unmatched digital infrastructure, ZKH empowers all participants in the value chain to achieve more.

For more information, please visit: https://ir.zkh.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aim," "estimates," "intends," "plans," "believes," "is/are likely to," "potential," "continue," and similar statements. Among other things, the quotations from ZKH's management in this press release contain forward-looking statements. ZKH may make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press release and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ZKH's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in ZKH's annual report on Form 20-F and other documents filed with the SEC. All information provided herein is as of the date of this press release, and ZKH undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

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 the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: zkh@thepiacentegroup.com

View original content:https://www.prnewswire.com/news-releases/zkh-group-limited-announces-us50-million-share-repurchase-program-302172240.html

SOURCE ZKH Group Limited

FAQ

What is the ZKH Group 's share repurchase program?

ZKH Group announced a US$50 million share repurchase program allowing the company to buy back its American Depositary Shares over the next 12 months.

When will the ZKH Group share repurchase program end?

The share repurchase program will end on June 13, 2025.

How will ZKH Group fund its share repurchase program?

ZKH Group will fund the share repurchase program from its existing cash balance.

What methods will ZKH Group use for its share repurchases?

The repurchases may be made on the open market, through privately negotiated transactions, block trades, and other legally permissible means.

What is the stock symbol for ZKH Group ?

The stock symbol for ZKH Group is 'ZKH'.

Why is ZKH Group initiating a share repurchase program?

According to CEO Eric Long Chen, the program reflects confidence in the company's business growth and future value creation.