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SHANGHAI - ZKH Group Limited (NYSE: ZKH), a maintenance, repair and operations procurement service platform in China, announced today a new share repurchase program authorizing the buyback of up to $50 million worth of its shares over the next 12 months, ending on June 13, 2026. The buyback represents approximately 10% of the company’s current market capitalization of $493 million. According to InvestingPro analysis, ZKH currently trades at attractive valuations with a price-to-book ratio of 1.16x.
The company may execute the repurchases through open market transactions at prevailing market prices, privately negotiated transactions, block trades, or other legally permissible means, depending on market conditions. ZKH plans to fund the repurchases from its existing cash balance. InvestingPro data shows the company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 1.96x.
With the stock trading near $3.08, down about 12% year-to-date, "The launch of our new share repurchase program underscores our strong confidence in ZKH’s intrinsic value and long-term growth prospects," said Eric Long Chen, Chairman and Chief Executive Officer of ZKH. Discover more insights about ZKH’s valuation and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
The repurchase program will be implemented in accordance with applicable rules and regulations, according to the company.
ZKH Group Limited operates through its online platforms - the ZKH platform, the GBB platform, and the Northsky platform - providing MRO procurement solutions to customers. The company focuses on reducing procurement costs and addressing management efficiency challenges in the MRO sector.
This announcement was made in a press release statement issued by the company.
In other recent news, ZKH Group Limited reported a wider adjusted net loss for the first quarter of 2025, despite an increase in revenue. The company posted a non-GAAP adjusted net loss of RMB50.2 million, compared to a loss of RMB43.5 million in the same period last year. Revenue rose 4% year-over-year to RMB1.94 billion, driven by higher product sales. However, the company experienced a 43.1% decline in service revenues due to the optimization of low-margin businesses. The gross margin also contracted to 17.2% from 18% a year ago. Despite the wider loss, ZKH highlighted improvements in profitability metrics, with its net operating loss margin narrowing by 279.1 basis points to -4.2%. ZKH ended the quarter with RMB1.80 billion in cash and short-term investments, down from RMB2.06 billion at the end of 2024. The company is focusing on international expansion, particularly in the U.S. market, where revenue and customer base have nearly doubled each month since January 2025.
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