On August 22, Zhenkun Hang (NYSE: ZKH) released its Q2 2024 performance report. According to the financial report, Zhenkun Bank achieved a GMV (Gross Merchandise Volume) of 2.75 billion yuan (RMB) in the second quarter, a year-on-year increase of 5.6%; Revenue was 2.25 billion yuan, a year-on-year increase of 8.5%. The company's comprehensive gross profit margin increased from 16.2% in the second quarter of 2023 to 17.0% in the second quarter of this year, with a year-on-year increase of 14.3% to 380 million yuan in gross profit. After adjustment, the net loss was 34.86 million yuan, a decrease of 73.1% compared to the second quarter of 2023. In addition, Zhenkunxing's operating cash flow net inflow in the second quarter of 2024 was RMB 120 million, further improving and enriching the company's cash flow.
As a leading MRO (Maintenance, Repair, Operation) procurement service platform in China, Zhenkun Hang adjusted and upgraded its strategy in the second quarter in response to the constantly changing market environment. In terms of organizational structure and team capacity building, Zhenkunxing has strengthened its lean operation and IT digitalization capabilities, and established and strengthened customer operation teams, product operation teams, and investment promotion teams in its organizational structure.
In terms of product and supply chain strategy, Zhenkunxing extends its competitiveness upstream, participates in product research and development design and intelligent manufacturing processes, and increases investment in its own brand. In the second quarter of 2024, the GMV of Zhenkunxing's own brand increased by 27% year-on-year. In addition, the company is accelerating its transition from a "sales driven" to a "supply driven" model, reducing the business of temporary inquiries and quotations to improve customer experience, product repurchase, operational efficiency, and gross profit margin.
On the sales side, Zhenkunxing has improved customer coverage and service capabilities through organizational design of "service regionalization" and personnel layout of "grid". In the second quarter of 2024, the number of corporate clients served by the company exceeded 48000, a year-on-year increase of 25.8%; The cumulative number of corporate clients served in the first half of the year reached 63000, a year-on-year increase of 32.7%.