Interview | Insights from ZKTeco Europe’s Financial Team
In this exclusive interview, we sit down with the financial experts from ZKTeco Europe to gain insights into their strategic approach to economic management. César Cabezón, CFO, Joana Mota, International Financial Controller, Juan Gordillo, Financial Coordinator, and Sandra López, Financial Controller, share their insights into the company’s financial strategy, challenges, and future outlook.
Inside the ZKTeco Europe Financial Team
ZKTeco has experienced a remarkable international expansion, how have you managed the growth in different global markets from a financial point of view?
César Cabezon: International expansion has been an essential part of our growth strategy. From the financial area, we have implemented a risk management and resource control system that allows us to adapt to different local economies and regulations. Our established headquarters in the UK has served as a strategic foundation for our European expansion.
Building upon this success, we are strategically expanding our operations to Lisbon and Warsaw. This expansion involves a meticulous analysis of operating costs, tax incentives, and potential synergies within the region to ensure long-term profitability and growth.
In the photo from left to right: Sandra López, Financial Controller, Juan Gordillo, Financial Coordinator, Joana Mota, International Financial Controller, and César Cabezón, CFO.
When expanding into new markets, how do you select the location of your new sites and what financial factors do you consider most relevant in this process?
Joana Mota: The selection of new sites is made after a rigorous strategic and financial study. Factors such as operating costs, regulatory environment, tax incentives and available infrastructure are critical in our decision-making.
In the case of our upcoming openings in Lisbon and Warsaw, we consider the ease of access to key markets in Europe, as well as the ability to recruit qualified local talent. In addition, we look at the long-term growth potential and how each location can complement our current operations to ensure efficient and sustainable expansion.
ZKTeco Europe has grown significantly in recent years, what have been the main financial challenges you have faced during this period of accelerated growth?
César Cabezon: One of the biggest challenges has been balancing investment in new markets with maintaining financial stability. Expansion requires significant resources, and we have had to carefully manage our liquidity needs to fund openings in new locations without compromising existing operations.
We have also faced the need to adapt to different regulatory and fiscal environments, which has involved constant work to mitigate financial risks, especially with regard to currency fluctuation and inflation in some emerging markets.
How have you ensured that ZKTeco Europe's international expansion maintains a balance between growth and profitability?
Juan Gordillo: Maintaining a balance between growth and profitability has been possible thanks to a financial strategy focused on operational efficiency and risk management. Before deciding to open new locations, such as Lisbon and Warsaw, we conducted a thorough return on investment (ROI) analysis.
We target markets with high growth potential that also offer competitive advantages, such as tax incentives or lower operating costs. In this way, we ensure that initial investments generate solid returns in the medium to long term without compromising our ability to generate cash flow.
How do you ensure the efficiency and accuracy of ZKTeco's financial systems and processes?
Sandra López: At ZKTeco, we prioritize efficiency and accuracy in our financial operations. To achieve this, we implement a combination of robust internal controls, advanced financial software, and ongoing training for our finance team.
Here are some key strategies we employ:
- Internal Controls: We have established a strong framework of internal controls to safeguard our assets, ensure data accuracy, and prevent fraud. Regular reviews and updates of these controls help maintain their effectiveness.
- Financial Software: We utilize financial software and tools that automate many manual tasks, reduce errors, and provide real-time insights into our financial performance.
- Team Training: We invest in continuous training and development for our finance team to enhance their skills and knowledge. This ensures they are equipped with the latest best practices and can effectively utilize our financial systems.
- Regular Audits: We conduct regular internal and external audits to assess the effectiveness of our financial systems and processes. These audits help identify areas for improvement and maintain compliance with relevant regulations.
Looking ahead, how do you see ZKTeco growing in Europe and what are the long-term financial plans to support expansion into new regions?
Joana Mota: In Europe, we continue to see great growth potential, especially in the field of security and access control technology. Financially and strategically, we plan to continue to invest in innovation and expansion into new markets. We are focused on sustainable growth, so part of our long-term strategy includes reinvesting earnings and diversifying our sources of financing.
In addition, we will continue to consolidate our operations in key markets, such as the UK, while looking for opportunities to expand in other areas with high development potential.
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