Why did ZKH's EPS decline in Q1-Q2 2024?

The decline in ZKH's EPS from Q1 to Q2 2024 can be attributed to several factors:

1. Revenue Decline: There was a 3% decrease in revenue from Q1 to Q2 2024, which was primarily due to the optimization of certain low-margin businesses with long customer credit terms under its marketplace model. This reduction in revenue likely led to a decrease in profitability and, consequently, a decline in EPS.
2. Business Optimization: The company's focus on business optimization, which involved streamlining operations and improving efficiency, may have had an initial negative impact on financial performance as it involved restructuring and reducing certain low-margin businesses. Such initiatives can lead to a temporary dip in profitability as they are implemented.
3. Market Conditions: The dynamic demand landscape in 2024, which presented challenges for the company, could have contributed to the decline in revenue and, subsequently, EPS. Economic conditions, competition, and market trends can all influence the financial performance of a company.

In summary, the decline in ZKH's EPS from Q1 to Q2 2024 was likely a result of a combination of revenue decline, business optimization, and market conditions.