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    Liu Chang

    Research Analyst at Deutsche Bank

    Liu Chang's questions to ZKH Group (ZKH) leadership

    Liu Chang's questions to ZKH Group (ZKH) leadership • Q2 2025

    Question

    Liu Chang of Deutsche Bank inquired about ZKH Group's short, mid, and long-term growth strategies as the negative impact from the State-Owned Enterprise (SOE) business optimization subsides, and requested a business outlook for the second half of 2025.

    Answer

    An executive from ZKH Group explained that while the strategic reduction in low-value SOE business (formerly over 20% of GMV) pressured recent growth, this was largely offset by strong performance from new large customers and SMEs. The executive outlined that future growth will be driven by increasing wallet share with key accounts, expanding the GBB platform's focus on construction materials, and accelerating overseas expansion. They noted the SOE business bottomed out in June and July, expressing confidence in a return to positive growth in the second half of the year.

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    Liu Chang's questions to ZKH Group (ZKH) leadership • Q2 2025

    Question

    Liu Chang of Deutsche Bank inquired about ZKH Group's growth strategy for the short, mid, and long term, particularly as the impact from the State-Owned Enterprise (SOE) business optimization diminishes, and asked for the business outlook for the second half of the year.

    Answer

    An executive explained that the SOE business optimization, which affected over 20% of GMV, is now complete and the segment has bottomed out, with a rebound expected in the second half. Growth is now driven by acquiring new large customers and SMEs, with a focus on increasing wallet share among the top 1,000 manufacturers. The GBB platform is sharpening its focus on construction materials. Mid-to-long-term growth is expected to come from overseas markets in Europe and America, with performance improvements anticipated in the second half of the year.

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    Liu Chang's questions to ZKH Group (ZKH) leadership • Q2 2025

    Question

    Liu Chang from Deutsche Bank inquired about ZKH Group's short, mid, and long-term growth strategies, particularly as the negative impact from the State-Owned Enterprise (SOE) business optimization diminishes, and asked for a business outlook for the second half of the year.

    Answer

    An executive, likely CEO Eric Chen, explained that the recent GMV pressure was a deliberate result of phasing out low-value SOE business, which previously constituted over 20% of GMV. This decline was offset by strong growth from new large enterprise customers and SMEs. The company has covered 670 of China's top 1,000 manufacturers and is increasing wallet share. Future growth drivers include the GBB platform's focus on construction materials and, crucially, overseas expansion. The executive expressed strong confidence in a return to positive growth in the second half of the year, noting the SOE business had bottomed out in June and July.

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