On March 19 | Beijing time, on March 19, China's leading MRO procurement service platform, ZKH.US (ZKH.US), released the fourth quarter and full year results report of the 2023 fiscal year ahead of the US stock market. Looking at the annual performance, Zhenkun Bank's GMV reached 11.083 billion yuan (RMB, same below) in 2023, an increase of 18.2% over the previous year. Among them, the platform model (3P) grew strongly, achieving GMV of 2,746 billion yuan, an increase of 90.2% over the previous year. Gross margin increased steadily from 15.8% in 2022 to 16.7% in 2023. The adjusted net loss for the whole year narrowed sharply to $287.5 million, compared to $626.1 million last year, thanks to higher gross margin, lower management fee ratio, and lower performance fee ratio. The adjusted net loss ratio for the full year decreased from 7.5% in 2022 to 3.3% in 2023, and the overall profit trend is positive. In the fourth quarter of 2023, Zhenkun's GMV was 3.207 billion yuan, an increase of 20.2% over the previous year. Gross margin was 17.1% compared to 16.7% in the same period last year. It is worth mentioning that Zhenkun achieved profit in the fourth quarter, with an adjusted net profit of 27.54 million yuan. In terms of customer numbers, the number of customers reached a record high of 66,562 in 2023, an increase of 8,558 over 2022. It is worth emphasizing that the 2022 Top 500 customer retention rate reached 97% in 2023, reflecting Zhenkun's high-quality and high-stickiness customer base. Zhenkun is a leading industrial goods procurement service platform in China, providing customers with one-stop industrial goods procurement and management services, and digital and contract fulfillment solutions for participants in the industry value chain. In terms of product strength, Zhenkun has continuously enriched the number of SKUs and made the product “broad”. Up to now, the number of SKUs has reached approximately 17 million. At the same time, we continue to cultivate products. In 2023, the share of Zhenkun Xing's own brands will gradually increase to 5%. In terms of overseas market development, Zhen Kun Hong plans to officially launch overseas business in the US in the second half of 2024. At the same time, management revealed that it is actively exploring opportunities for overseas mergers and acquisitions to accelerate the layout of the global market. Chen Long, Chairman and CEO of Zhen Kun Hong, said, “Although the macro environment is still full of challenges, we achieved steady growth in 2023, increased gross margin, and narrowed losses, especially in the fourth quarter. This shows the resilience and continued growth of the industrial supplies industry, as well as the strong management ability of Zhenkun Bank to drive business development.