ZKH Group Limited Enters Strategically Comprehensive Cooperation Agreement with Tmall

Rhea-AI Summary

ZKH Group (NYSE: ZKH), a leading MRO procurement service platform in China, has signed a comprehensive strategic partnership agreement with Tmall. The agreement, effective until October 31, 2026, focuses on cooperation between ZKH's GBB Platform and Tmall's industrial product platform. Under the partnership, ZKH will facilitate flagship stores of leading industrial product brands joining Tmall's platform, while Tmall will provide tailored services and support. The agreement will automatically renew unless either party objects.

Positive

• Strategic partnership with major e-commerce platform Tmall expands market reach
• Access to Tmall's established customer base and infrastructure
• Long-term agreement (until October 2026) with automatic renewal option

Negative

• None.

Insights

Market Research Analyst

This strategic partnership marks a significant expansion of ZKH's digital distribution channels through Tmall's massive e-commerce infrastructure. The collaboration will likely enhance ZKH's market penetration in China's industrial MRO sector, which is currently valued at over $350 billion. By leveraging Tmall's established platform and user base, ZKH can potentially accelerate its digital transformation and expand its customer reach beyond traditional B2B channels.

The arrangement to bring flagship stores of leading industrial brands to Tmall's platform suggests a multi-brand strategy that could significantly increase transaction volume and market share. This move aligns with the industry trend toward digital procurement solutions and could help ZKH capture a larger portion of the growing industrial e-commerce market. The two-year agreement with automatic renewal provides stability for long-term strategic planning and investment in the partnership.

SHANGHAI, Nov. 22, 2024 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, today announced that it has entered into a comprehensive strategic partnership agreement (the "Agreement") with Zhejiang Tmall Technology Co., Ltd. ("Tmall") with respect to the cooperation between the Company's GBB Platform and Tmall's industrial product platform. The Agreement will be effective until October 31, 2026 when it will be automatically renewed unless either party objects.

Under the Agreement, the Company and Tmall will cooperate to explore commercialization models for the market of industrial products, and facilitate the upgrade and expansion of both parties' industrial product supplies. In particular, the Company will arrange for flagship stores of leading industrial product brands to join Tmall's industrial product platform, and Tmall will provide tailored services to the stores and coordinate with its various internal teams to offer support.

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. The Company 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, the Company 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 management in this press release and ZKH's strategic and operational plans contain forward-looking statements. ZKH may also 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, including but not limited to the following: ZKH's mission, goals and strategies; ZKH's future business development, financial condition and results of operations; the expected changes in its revenues, expenses or expenditures; the expected growth of the MRO procurement service industry in China and globally; changes in customer or product mix; ZKH's expectations regarding the prospects of its business model and the demand for and market acceptance of its products and services; ZKH's expectations regarding its relationships with customers, suppliers, and service providers on its platform; competition in the Company's industry; government policies and regulations relating to ZKH's industry; general economic and business conditions in China and globally; the outcome of any current and future legal or administrative proceedings; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ZKH's filings with the SEC. All information provided herein is as of the date of this announcement, 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-enters-strategically-comprehensive-cooperation-agreement-with-tmall-302314021.html

SOURCE ZKH Group Limited

FAQ

What is the duration of ZKH Group's (NYSE: ZKH) partnership agreement with Tmall?

The agreement is effective until October 31, 2026, with automatic renewal unless either party objects.

What are the main components of ZKH Group's (NYSE: ZKH) strategic partnership with Tmall?

The partnership involves ZKH arranging flagship stores of leading industrial product brands to join Tmall's industrial product platform, while Tmall provides tailored services and support.

Which platforms are involved in the ZKH Group (NYSE: ZKH) and Tmall cooperation agreement?

The cooperation is between ZKH's GBB Platform and Tmall's industrial product platform.