ZKH Group (ZKH) Q4 2024 earnings summary

Executive summary

• FY2024 net revenues rose 0.5% year-over-year to RMB8,761.3 million, with gross margin up to 17.2% from 16.7%, driven by procurement optimization and private label growth.

• Adjusted net loss for FY2024 narrowed 44.5% year-over-year to RMB159.5 million, with margin improving from -3.3% to -1.8%.

• Operating cash flow turned positive for the first full year, with RMB229.1 million net inflow in 2024 and three consecutive quarters of positive cash flow.

• Customer base expanded to 84,000 in 2024, up 26% year-over-year, with strong retention among top customers.

• U.S. subsidiary and standalone website launched in Q4 2024, advancing international expansion.

Financial highlights

• FY2024 net revenues were RMB8,761 million, up slightly from RMB8,721 million in FY2023; Q4 2024 net revenues declined 3% year-over-year to RMB2,370 million.

• FY2024 gross profit was RMB1.5 billion, with gross margin at 17.2%; Q4 gross profit was RMB405 million, margin steady at 17.1%.

• FY2024 net loss narrowed to RMB268 million from RMB305 million in FY2023; Q4 net loss was RMB29 million.

• FY2024 non-GAAP adjusted net loss was RMB159.5 million (1.8% margin), a 44.5% improvement year-over-year.

• Cash and cash equivalents rose to RMB2.06 billion at year-end 2024 from RMB1.09 billion a year earlier.

Outlook and guidance

• Management anticipates achieving full-year profitability for domestic operations in 2025 as business optimization effects subside.

• Strategic business optimizations are largely complete, with their impact on revenue growth expected to diminish.

• Focus remains on enhancing product and supply chain capabilities, digitalization, and AI initiatives.

• 2025 business growth expected to accelerate significantly compared to 2024.

• Gross margin for 1P business expected to rise 1–1.5 percentage points annually, with a long-term target above 20%.