ZKH Group Limited announced its unaudited financial results for the third quarter ended September 30, 2024, reporting net revenues of RMB2,280.7 million (US$325.0 million), a slight increase of 0.7% from RMB2,265.0 million in the same period of 2023. Gross Merchandise Value (GMV) for the quarter decreased by 7.2% to RMB2,685,996 from RMB2,894,140 in the prior year period, primarily due to a 35.8% decrease in Marketplace (3P) GMV.
Despite the GMV decline, the company demonstrated progress in profitability metrics, with net loss narrowing by 16.3% to RMB81.8 million (US$11.7 million) compared to RMB97.7 million in Q3 2023. Gross profit increased by 5.1% to RMB388.4 million (US$55.3 million), and gross margin improved to 17.0% from 16.3% in the same period of 2023. This improvement was driven by a higher gross margin in the product sales model and an increased take rate in the marketplace model on the ZKH platform.
A notable financial achievement was the generation of net cash of RMB160.5 million (US$22.9 million) from operating activities in the third quarter of 2024, a significant turnaround from net cash used in operating activities of RMB9.0 million in the prior year period. The total number of customers increased by 16.9% year-over-year, reaching 47,876. Management stated that ongoing optimization efforts enhanced overall business quality and strengthened product capabilities, contributing to narrowed loss margins.
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