ZKH Group Earnings Call Transcripts
Fiscal Year 2026
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Double-digit GMV and revenue growth marked Q1 2026, with adjusted net profit turning positive and strong gains in operational efficiency. Private label and SME segments led growth, while AI and digital initiatives drove further productivity improvements.
Fiscal Year 2025
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Q4 2025 saw a return to profitability, with GMV and revenue accelerating year-over-year and strong cash flow. Growth was driven by SME and private label expansion, international gains, and AI-driven efficiency, despite margin pressure from product mix and commodity prices.
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Business stabilized with revenue up 2.1% and gross margin at 16.8%. Adjusted net loss narrowed 78% year-over-year, and monthly break-even was achieved in September. AI initiatives and private label growth drove efficiency and margin gains.
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Q2 2025 saw underlying GMV growth excluding SOE impact, with gross margin expansion and a narrowed net loss. Overseas business accelerated, especially in the U.S., and a share buyback program was launched. Management expects a return to growth in the second half.
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Revenue grew 4% year-over-year to RMB 1.94 billion, with improved profitability and strong customer growth, especially in key accounts and SMEs. AI-driven efficiencies and global expansion, including U.S. and upcoming European entry, support a positive outlook for 2025.
Fiscal Year 2024
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Q4 and FY2024 saw improved profitability, positive operating cash flow, and strong private label and overseas growth, despite headline GMV declines due to business optimization. 2025 guidance calls for accelerated revenue growth and full-year profitability, with gross margin expansion driven by private label and global markets.
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Q3 2024 saw improved gross margin and narrowed adjusted net loss, despite a year-over-year GMV decline due to business optimization. Core customer segments and high-margin product categories grew, while strategic partnerships and overseas expansion drive future growth.
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Q2 2024 saw revenue up 8.5% and gross margin rise to 17%, with adjusted net loss sharply reduced. Business optimization and digital investments continue, while full-year growth is expected in the high single to low double digits and break-even is anticipated.