Sign in

    Diying Ji • China Renaissance

    Diying Ji's questions to ZKH Group Ltd (ZKH) leadership

    Diying Ji's questions to ZKH Group Ltd (ZKH) leadership • Q4 2024

    Question

    Diying Ji (Ella Ji) of China Renaissance asked for the company's 2025 gross profit margin outlook and for the CEO to outline the top three corporate focuses and targets for the year.

    Answer

    CEO Eric Chen (via interpreter) projected that the gross margin for the 1P ZKH platform would increase by 1-1.5 percentage points annually, with a goal to exceed 20%. This growth will be driven by increased scale, expanding private label products from 6% to over 30% of sales, and higher-margin international sales. The top three priorities for 2025 are: 1) strengthening product competitiveness through R&D and private labels, 2) increasing market share by growing wallet share and acquiring new customers, and 3) improving operational efficiency via AI, talent development, and better management.

    Ask Fintool Equity Research AI

    Diying Ji's questions to ZKH Group Ltd (ZKH) leadership • Q3 2024

    Question

    Diying Ji from China Renaissance asked about the potential impact of higher U.S.-China tariffs on ZKH's business and what measures the company is taking to address the situation.

    Answer

    Executive Long Chen explained that ZKH's U.S. strategy is to compete as a 'Costco for industrial sectors' by offering a curated selection of high-quality, low-cost products, with a U.S. site launching December 1. To mitigate geopolitical and tariff risks, Chen stated the company is actively diversifying its supplier base on a global scale to ensure supply chain resilience and circumvent potential trade barriers.

    Ask Fintool Equity Research AI

    Diying Ji's questions to ZKH Group Ltd (ZKH) leadership • Q1 2024

    Question

    Diying Ji of China Renaissance asked for management's business and financial outlook for the upcoming quarters.

    Answer

    Founder, Chairman, and CEO Long Chen reported that Q1 results slightly exceeded targets and that the optimization of the SOE business is now complete, paving the way for acceleration. He projected double-digit GMV growth for Q3 and Q4, a breakeven for Q2, and profitability in Q3 and Q4. For the full year, Mr. Chen guided for positive year-over-year GMV growth, profitability for the domestic business, and an overall breakeven for the entire group, including its overseas investments.

    Ask Fintool Equity Research AI

    Diying Ji's questions to ZKH Group Ltd (ZKH) leadership • Q1 2025

    Question

    Diying Ji of China Renaissance requested that management provide an update on the company's business and financial outlook for the upcoming quarters of 2025.

    Answer

    Long Chen, Founder, Chairman, and CEO, reported that Q1 results slightly exceeded targets and that the optimization of the SOE business is now complete. He projected an acceleration in performance, with double-digit GMV growth expected in Q3 and Q4. For profitability, Mr. Chen forecasted a single-quarter breakeven in Q2, positive profitability in Q3 and Q4, and positive profitability for the domestic business for the full year. The entire group is expected to achieve breakeven for the full year 2025.

    Ask Fintool Equity Research AI