ZKH Group Limited

Second-quarter GMV increased 18.9% year over year to RMB 2.9 billion, and net revenue grew 12.8% to RMB 2.4 billion. Gross profit rose 20.3% to RMB 430 million, with gross profit as a percentage of GMV at 14.9% versus 14.8% a year ago and 14.4% in Q1 2026. Total operating expenses declined 0.8% year over year to RMB 425 million, or 17.4% of net revenue versus 19.8% a year ago. The company achieved positive operating profit for the first time; non-GAAP EBITDA was RMB 42 million versus negative RMB 39 million last year, and non-GAAP adjusted net profit was RMB 39 million versus negative RMB 37 million last year. Cash, restricted cash, and short-term investments totaled RMB 1.7 billion as of June 30, 2026. For the second half, management expects GMV growth to accelerate further, with high-teens GMV growth and continued profitability improvement; for the full year, management said it remains confident in achieving 15% to 20% GMV growth.

The CEO framed the quarter as evidence that ZKH is gaining share in a fragmented MRO market while improving quality of growth. He highlighted broad-based momentum across industries and customer groups, especially SMEs, state-owned enterprises, and private label, and said these shifts are improving both scale and margins. He also emphasized ongoing capability-building in products, fulfillment, and AI as the foundation for the next phase of growth.

The CFO focused on the improvement in operating leverage and profitability. He said gross profit increased to RMB 430 million, operating expenses fell to RMB 425 million, and expense ratios improved across fulfillment, sales and marketing, R&D, and G&A. He also noted that the company ended the quarter with RMB 1.7 billion of cash, restricted cash, and short-term investments, and said first-half operating cash outflow improved to RMB 156 million from RMB 208 million a year ago. He added that international GMV exceeded RMB 95 million in the first half and that the international business is expected to turn profitable in the second half of the year.

Analysts focused on the GMV acceleration, AI-related changes in customer behavior, international expansion, and capital returns. Management said growth was driven by strong momentum in industries like nonferrous metals, utilities, chemicals, electronics, and semiconductors, plus SME customers and private label, and reiterated confidence in full-year GMV growth of 15% to 20%. On AI, management said customers are increasingly using natural language to express procurement needs, AI Materials Manager has served more than 8,600 customers and is now generating revenue, and an AI subsidiary is being set up to provide a more flexible structure. On shareholder returns, management said the USD 50 million buyback authorization remains in place through June 2027, about 2.49 million ADSs had been repurchased for roughly USD 7.67 million, and future dividends could be considered as profits scale.