Zhao Dan Zhang

Zhao Dan Zhang from CICC asked about the competitive barriers and moats ZKH has built in the China MRO sector beyond just scale, and requested details on specific long-term investments and their business impact.

Answer

An executive from ZKH Group detailed three core competitive moats. First, superior product capabilities in industrial-grade MROs, supported by a 600-person expert team and the new Taicang smart manufacturing facility. Second, advanced digitization and AI capabilities, highlighted by a proprietary 'ZKH Data Dictionary' built on 17 million SKUs and a large, specialized IT team. Third, a first-mover advantage in overseas expansion, with established operations in the U.S., plans for Europe, and a global sourcing network, positioning ZKH to become a truly global, AI-enabled MRO company.

Zhao Dan Zhang from CICC asked about the future competitive barriers and moats ZKH has built in the Chinese MRO sector beyond just scale, and requested details on specific long-term investments and their business impact.

Answer

An executive detailed three primary competitive advantages. First, superior product capabilities in industrial-grade MROs, supported by a 600-person expert team and the new Taicang smart manufacturing base. Second, advanced digitization and AI capabilities, including a proprietary 'ZKH Data Dictionary' built on 17 million SKUs and one of China's largest MRO IT teams. Third, a first-mover advantage in overseas expansion, with established operations in the U.S., upcoming entry into Europe, and a strategy of following major Chinese clients globally.

Zhao Dan Zhang from CICC asked about the competitive barriers and moats ZKH has built in the China MRO sector beyond just scale, seeking specifics on long-term investments and their impact on business development.

Answer

An executive, likely CEO Eric Chen, detailed three core competitive advantages. First, superior product capabilities in industrial-grade MROs, supported by a 600-person expert team and the new Taicang smart manufacturing base. Second, advanced digitization and AI capabilities, highlighted by a proprietary 'ZKH Data Dictionary' built on 17 million SKUs and one of the largest IT teams in the sector. Third, pioneering overseas expansion capabilities, being the first Chinese MRO to establish operations in the U.S. and Europe. The executive asserted that these long-term investments in product, data, and global reach create a moat that is difficult for competitors to replicate.