1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. đť•Ź Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. đť•Ź Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
ZKH
Event Date
2023-12-15
Sector
Consumer
Subsector
Specialty Retail
Offer Range
$15.50
Shares Offered
4M
$2.5B
Implied Upside vs Midpoint
Description
Our Mission Transparency and efficiency, for better commerce. Our Vision To be a world leading industrial supplies company offering superior customer value. We are a leading MRO procurement service platform in China. We provide one-stop MRO procurement and management services for our customers, and offer digital and fulfillment solutions for participants along the industry value chain. We spearhead digital transformation of the MRO industry for cost reduction and efficiency improvement. Our leadership is evidenced by our GMV, the number of enterprise customers, the number of SKUs, as well as our comprehensive fulfillment network. We achieved continuous growth in GMV from 2020 to 2022 at a CAGR of 37.3%. We served over 58,000 customers in 2022 and over 64,000 customers in the twelve months ended September 30, 2023. In addition, our product offerings covered approximately 17.2 million SKUs and all major MRO product lines as of September 30, 2023. MRO procurement services are indispensable in addressing the essential needs in manufacturing enterprises’ daily operations, yet also challenging because MRO procurement is highly fragmented in supply and demand, involving a vast array of items typically in small volume with recurring purchases. In China, MRO procurement service market is vast and fast-growing, presenting significant market opportunities. To directly address the industry pain points and capture the market opportunities, we provide digitalized, one-stop MRO procurement solutions that allow customers to access a wide selection of quality products at competitive prices, powered by our strong product selection and recommendation capabilities, through a transparent and efficient process, and have such products delivered in a timely and reliable manner with professional fulfillment services. With the digital infrastructure that we have built for MRO suppliers and customers, we empower all value chain participants to achieve cost reduction and efficiency improvement. Our market leadership is underpinned by our customer-centric approach, superior product capabilities, specialized fulfillment network, and robust technology infrastructure. We have developed a coveted and loyal customer base through our relentless focus on customer experience. In 2022, we directly served over 40,000 ZKH customers and over 17,000 GBB customers. In the twelve months ended September 30, 2023, we directly served over 46,000 ZKH customers and approximately 18,000 GBB customers. We have witnessed a continuous increase in the average spending from our top 500 customers from 2020 to 2022 at a CAGR of 30.5%. Approximately 91% of our top 500 customers in terms of GMV in 2020 transacted with us in 2022. --- Our principal executive offices are located at 7/F, Tower 4, Libao Plaza, No. 36 Shenbin Road, Minhang District, Shanghai, 201106, People’s Republic of China. Our telephone number at this address is +86 (21) 5080-9696. Our registered office in the Cayman Islands is located at 4th Floor, Harbour Place, 103 South Church Street, PO Box 10240, Grand Cayman, KY1-1002, Cayman Islands. Our main websites are www.zkh.com and www.gongbangbang.com. Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168.