ZKH Group Limited Announces New Share Repurchase Program

Rhea-AI Summary

ZKH Group Limited (NYSE: ZKH), China's leading MRO procurement service platform, has announced a significant share repurchase program of up to US$50 million worth of shares over a 12-month period ending June 13, 2026. The company plans to execute these repurchases through various means including open market transactions, private negotiations, and block trades, subject to market conditions and applicable regulations. The buyback will be funded from existing cash reserves. CEO Eric Long Chen expressed confidence in the company's intrinsic value and growth prospects, citing strong financial and operational performance as well as a robust business model.

Positive

• Authorization of substantial US$50 million share repurchase program demonstrates confidence in company's value
• Company has sufficient cash balance to fund the buyback program
• Strong recent financial and operational performance reported by management
• Healthy balance sheet and cash flows support growth initiatives

Negative

• Significant cash allocation to buyback could limit funds available for operational growth
• 12-month timeframe may create selling pressure if executed in concentrated periods

News Market Reaction – ZKH

+1.30%

1 alert

+1.30% News Effect

On the day this news was published, ZKH gained 1.30%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SHANGHAI, June 13, 2025 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, today announced that its board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$50 million worth of its shares (including American Depositary Shares) over the next 12 months, ending on June 13, 2026.

The share repurchases may be effected from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions, and will be implemented in accordance with applicable rules and regulations. The Company expects to fund the repurchases out of its existing cash balance.

Mr. Eric Long Chen, Chairman and Chief Executive Officer of ZKH, commented, "The launch of our new share repurchase program underscores our strong confidence in ZKH's intrinsic value and long-term growth prospects. Our recent financial and operational results highlight the strength and resilience of our business model, providing a solid foundation for our sustainable development. Supported by a healthy balance sheet and cash flows, and effective strategic execution, we're well-positioned to drive continued growth and create greater value for all of our stakeholders."

About ZKH Group Limited

ZKH Group Limited (NYSE: ZKH) is a leading MRO procurement service platform in China, underpinned by robust supply chain capabilities and dedicated to serving customers globally through a product-led, agentic AI-driven approach. Through its primary online platforms, the ZKH platform, the GBB platform and the Northsky platform, along with innovative technology and extensive industry expertise, the Company provides bespoke MRO procurement solutions to a diverse and loyal customer base. These solutions encompass hyper-personalized product curation from a comprehensive selection of quality products at competitive prices. Additionally, the Company ensures timely and reliable product delivery through professional fulfillment services. By focusing on reducing procurement costs and addressing management efficiency challenges, ZKH is transforming the opaque MRO procurement process and empowering all stakeholders across the value chain.

For more information, please visit: https://ir.zkh.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aim," "estimates," "intends," "plans," "believes," "is/are likely to," "potential," "continue," and similar statements. Among other things, the quotations from management in this press release and ZKH's strategic and operational plans contain forward-looking statements. ZKH may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ZKH's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ZKH's mission, goals and strategies; ZKH's future business development, financial condition and results of operations; the expected changes in its revenues, expenses or expenditures; the expected growth of the MRO procurement service industry in China and globally; changes in customer or product mix; ZKH's expectations regarding the prospects of its business model and the demand for and market acceptance of its products and services; ZKH's expectations regarding its relationships with customers, suppliers, and service providers on its platform; competition in the Company's industry; government policies and regulations relating to ZKH's industry; general economic and business conditions in China and globally; the outcome of any current and future legal or administrative proceedings; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ZKH's filings with the SEC. All information provided herein is as of the date of this announcement, and ZKH undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

ZKH Group Limited
IR Department
E-mail: IR@zkh.com

Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: zkh@thepiacentegroup.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: zkh@thepiacentegroup.com

View original content:https://www.prnewswire.com/news-releases/zkh-group-limited-announces-new-share-repurchase-program-302480993.html

SOURCE ZKH Group Limited

FAQ

What is the size of ZKH's new share repurchase program?

ZKH's new share repurchase program authorizes the company to repurchase up to US$50 million worth of its shares, including American Depositary Shares.

When does ZKH's share buyback program end?

The share repurchase program will end on June 13, 2026, running for a 12-month period from its announcement.

How will ZKH fund its share repurchase program?

ZKH plans to fund the share repurchases from its existing cash balance.

How will ZKH implement its share buyback program?

The company will implement the buyback through open market purchases at prevailing prices, privately negotiated transactions, block trades, and other legally permissible means, depending on market conditions.

What did ZKH's CEO say about the share repurchase program?

CEO Eric Long Chen stated that the program demonstrates strong confidence in ZKH's intrinsic value and long-term growth prospects, highlighting the company's strong business model and financial results.