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Leo Cheng

Vice President and Equity Research Analyst at Deutsche Bank

Leo Cheng is a Vice President and Equity Research Analyst at Deutsche Bank, specializing in coverage of the internet and technology sectors with a particular focus on companies such as Alibaba, JD.com, Meituan, and Tencent. He has developed a strong reputation for providing actionable investment insights, achieving a success rate above 65% on TipRanks and consistently delivering positive returns for institutional clients. Leo Cheng joined Deutsche Bank in 2021 after holding analyst roles at Citi and HSBC, where he gained extensive experience in Asia-Pacific equity markets. He holds FINRA Series 7 and 63 licenses and is recognized for his in-depth fundamental analysis and comprehensive industry knowledge.

Leo Cheng's questions to ZKH Group (ZKH) leadership

Question · Q3 2025

Leo Cheng with Deutsche Bank inquired about the historical reasons for ZKH Group's unprofitability and how the company plans to balance its new focus on profitability with necessary mid-to-long-term development investments.

Answer

Eric Chen, Founder, Chairman, and CEO, explained that early losses were strategic investments in infrastructure and core capabilities, typical for a startup. He stated ZKH is now entering a new phase focused on profitability, leveraging operating leverage with decreasing expense ratios and rising fulfillment gross margins. He cited a significant reduction in losses from RMB 910 million in 2021 to an estimated much narrower loss in 2025, with Q4 2025 projected to be profitable. He affirmed a commitment to 15-20% GMV growth, balancing expense control and efficiency with continued investment in R&D (product, digital, AI) and overseas expansion to ensure sustainable profitability and long-term growth.

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