ZKH Group Ltd Files 20-F Annual Report for Fiscal Year 2023

TL;DR

<b>ZKH Group Ltd has submitted its 2023 annual report on Form 20-F, detailing its financial performance and operations.</b>

AI Summary

ZKH Group Ltd (ZKH) filed a Foreign Annual Report (20-F) with the SEC on April 19, 2024. ZKH Group Ltd filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The filing includes financial data for the period ending December 31, 2023. The company's principal executive offices are located in Shanghai, China. The report covers the fiscal year 2023, with a filing date of April 19, 2024. The SIC code for ZKH Group Ltd is 5200 (Retail - Building Materials, Hardware, Garden Supply).

Why It Matters

For investors and stakeholders tracking ZKH Group Ltd, this filing contains several important signals. This filing provides investors with a comprehensive overview of ZKH Group's financial health and strategic positioning for the past fiscal year. As a public document, it allows for scrutiny of the company's performance, risks, and future outlook by stakeholders and the market.

Risk Assessment

Risk Level: medium — ZKH Group Ltd shows moderate risk based on this filing. The company's financial performance and future prospects are subject to the inherent risks associated with operating in the retail building materials sector, as detailed in its 20-F filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors outlined in the 20-F filing to assess ZKH Group's performance and potential investment risks.

Financial Highlights

debt To Equity

N/A

revenue

1528540765

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

N/A

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Key Numbers

• 20231231 — Fiscal Year End (The report covers the fiscal year ending on this date.)
• 20240419 — Filing Date (The date the 20-F form was filed with the SEC.)
• 001-41885 — SEC File Number (The SEC file number assigned to ZKH Group Ltd.)
• 5200 — SIC Code (Standard Industrial Classification code for the company's industry.)

Key Players & Entities

• ZKH Group Ltd (company) — Filer of the 20-F report
• 0001104659-24-049024 (filing_id) — Accession number for the filing
• 20240419 (date) — Filing date
• 20231231 (date) — Conformed period of report
• 0001862044 (company_id) — Central Index Key for ZKH Group Ltd
• 5200 (industry_code) — Standard Industrial Classification code
• Shanghai (location) — City of business and mail address
• 86 21 50809696 (phone) — Business phone number

FAQ

Risk Factors

• Market Risks [medium — market]: The company is subject to risks associated with the building materials and hardware retail market, including competition and economic fluctuations.
• Operational Risks [medium — operational]: Operational challenges may arise from supply chain disruptions, inventory management, and the execution of business strategies.
• Financial Risks [medium — financial]: Financial risks include currency fluctuations, credit risks, and the ability to manage debt and capital effectively.
• Regulatory Compliance [low — regulatory]: The company must comply with various regulations in the jurisdictions where it operates, including those related to e-commerce and business practices.

Key Dates

• 2024-04-19: Filing Date — Submission of the annual 20-F report for the fiscal year 2023.

Key Financial Figures

• $0.0000001 — ) Class A ordinary shares, par value US$0.0000001 per share) ZKH New York Stock Excha
• $ — , par value US$0.0000001 per share; "US$," "U.S. dollars," "$," and "dollars" ar
• $1 — rs are made at a rate of RMB7.0999 to US$1.00, the exchange rate in effect as of D
• $833 million — ZKH Hong Kong Limited an aggregate of US$833 million consisting of the proceeds from the iss
• $0.2 million — imited. ZKH Group Limited transferred US$0.2 million in April 2023 and US$1.5 million in Jul
• $1.5 million — rred US$0.2 million in April 2023 and US$1.5 million in July 2023 to ZKH Hong Kong Limited,
• $1.6 million — and ZKH Hong Kong Limited transferred US$1.6 million to ZKH Group Limited in July 2023, as o
• $57.7 million — nsfers. ZKH Group Limited transferred US$57.7 million in December 2023 and US$6.6 million in
• $6.6 million — US$57.7 million in December 2023 and US$6.6 million in January 2024, the net proceeds from

Filing Documents

• zkh-20231231x20f.htm (20-F) — 3885KB
• zkh-20231231xex2d5.htm (EX-2.5) — 147KB
• zkh-20231231xex8d1.htm (EX-8.1) — 6KB
• zkh-20231231xex12d1.htm (EX-12.1) — 9KB
• zkh-20231231xex12d2.htm (EX-12.2) — 9KB
• zkh-20231231xex13d1.htm (EX-13.1) — 6KB
• zkh-20231231xex13d2.htm (EX-13.2) — 5KB
• zkh-20231231xex15d1.htm (EX-15.1) — 10KB
• zkh-20231231xex15d2.htm (EX-15.2) — 6KB
• zkh-20231231xex15d3.htm (EX-15.3) — 2KB
• zkh-20231231xex97d1.htm (EX-97.1) — 34KB
• zkh-20231231x20f002.jpg (GRAPHIC) — 48KB
• zkh-20231231xex15d1001.jpg (GRAPHIC) — 8KB
• zkh-20231231xex15d1002.jpg (GRAPHIC) — 14KB
• 0001104659-24-049024.txt (&nbsp;) — 15402KB
• zkh-20231231.xsd (EX-101.SCH) — 95KB
• zkh-20231231_cal.xml (EX-101.CAL) — 93KB
• zkh-20231231_def.xml (EX-101.DEF) — 341KB
• zkh-20231231_lab.xml (EX-101.LAB) — 743KB
• zkh-20231231_pre.xml (EX-101.PRE) — 626KB
• zkh-20231231x20f_htm.xml (XML) — 2774KB

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 143 ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 144 PART II 147 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 147 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 147 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 147 ITEM 16. [RESERVED] 149 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 149 ITEM 16B. CODE OF ETHICS 149 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 149 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 149 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 149 ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT 149 ITEM 16G. CORPORATE GOVERNANCE 150 ITEM 16H. MINE SAFETY DISCLOSURE 150 ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 150 ITEM 16J. CYBERSECURITY 150 PART III 152 ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 152 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 152 ITEM 19. EXHIBITS 152

SIGNATURES

SIGNATURES 154 i Table of Contents INTRODUCTION Unless otherwise indicated or the context otherwise requires, references in this annual report on Form 20-F to: "ADRs" are to the American depositary receipts that may evidence the ADSs; "ADSs" are to the American depositary shares, each of which represents thirty-five (35) Class A ordinary shares; "China" or "the PRC" are to the People's Republic of China , including Hong Kong, Macau and Taiwan; and "mainland China" refers to the People's Republic of China, excluding Hong Kong, Macau and Taiwan; "Class A ordinary shares" are to the Class A ordinary shares of ZKH Group Limited, par value US$0.0000001 per share; "Class B ordinary shares" are to the Class B ordinary shares of ZKH Group Limited, par value US$0.0000001 per share; " GBB customers" are to customers that we serve on our GBB platform , which mainly include micro businesses such as trading companies, distributors, local hardware stores, and small businesses which are end users; "GMV" are to the total transaction value of orders placed on our platform and shipped to customers, excluding taxes, net of the returned amount. We believe that GMV, as a key operating metric, provides a measure of the overall volume of transactions that took place on our platform in a given period; "MRO" or "maintenance, repair and operations" are to materials used for maintenance, repair and operation purposes and that do not directly constitute final products; "order" are to an order placed on our platform by our customer, regardless of whether any product in such order is ultimately sold or shipped or whether any product in such order is returned; "our platform" are to our ZKH platform , our GBB platform , and a variety of digital tools and intelligent services that we provide. Our ZKH platform includes our ZKH official website at www.zkh . com, mobile app, Weixin Mini-Program and various interfaces. Our GBB platform includes our GBB official website at www.gongbangb

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION Our Holding Company Structure and Risks Related to Doing Business in China ZKH Group Limited is not a Chinese operating company but a Cayman Islands holding company with operations primarily conducted through our mainland China subsidiaries. Under this holding company structure, investors in the ADSs are purchasing equity interests in the Cayman Islands holding company and obtaining indirect ownership interests in the operating companies in mainland China. This holding company structure involves unique risks to investors and investors may never hold equity interests in our operating companies in mainland China. While we do not operate in an industry that is currently subject to foreign ownership limitations in mainland China, PRC regulatory authorities could decide to limit foreign ownership in our industry in the future, in which case there could be a risk that we would be unable to do business in mainland China as we are currently structured. In such event, despite our efforts to restructure to comply with the then applicable laws and regulations in mainland China in order to continue our operations in mainland China, we may experience material changes in our business and results of operations, our attempts may prove to be futile due to factors beyond our control, and the value of the ADSs you invest in may significantly decline or become worthless. See "Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Uncertainties exist with respect to how the PRC Foreign Investment Law may impact the viability of our current corporate structure and operations." Unless otherwise indicated or the context otherwise requires, references in this annual report to "ZKH" are to ZKH Group Limited, our Cayman Islands holding company; "ZKH Industrial Supply" are to ZKH Industrial Supply (Shanghai) Co., Ltd., the wholly foreign owned subsidiary of ZKH Group Limited in mainland China; "we," "us," "our company," and "our" are to ZKH G

View Full Filing

View this 20-F filing on SEC EDGAR