ZKH Group (ZKH) investor relations material

Executive summary

• Achieved strong business development and operational efficiency in Q2 2025, with high customer activity, a 53.5% YoY increase in customer base to over 74,000, and high retention among top customers.

• Net revenues for Q2 2025 were RMB2.17 billion, down 3.7% YoY, mainly due to SOE business optimization and exit from low-margin, extended-credit businesses.

• Net loss narrowed by 19.3% YoY to RMB53.5 million, with net loss margin improving to 2.5% from 2.9%, and monthly breakeven achieved in June.

• Operational efficiency improved through AI adoption, process streamlining, and cost management, with order processing per customer service rep up 48% and warehouse fulfillment cost down 18%.

• International expansion accelerated, with U.S. revenue up 260% QoQ, new initiatives in Europe and Southeast Asia, and the operational launch of the Taicang facility to enhance R&D and private-label growth.

Financial highlights

• GMV declined 12.1% YoY to RMB2.42 billion due to SOE business optimization and exit from low-margin businesses, but underlying GMV excluding this impact grew.

• Gross margin was 16.5%, slightly down from 17% last year, but gross margin on GMV basis improved to 14.8%.

• Non-GAAP EBITDA loss narrowed to RMB38.7 million from RMB47.1 million, with margin improving to -1.8% from -2.1%.

• Private-label product GMV grew 25% YoY to RMB210 million, now 8.7% of total GMV.

• Marketplace (3P) take rate increased 206.7bps YoY to 14.2%.

Outlook and guidance

• Management anticipates easing of SOE-related challenges and a potential turnaround in top-line growth in the second half of 2025, with Europe business and standalone site launch targeted by year-end.

• Focus remains on financial stability, near-term profitability in China, and sustainable long-term growth through international expansion and AI/data infrastructure.

• Strategic initiatives may weigh on short-term results but are expected to drive sustainable, long-term value.