Core Insights - ZKH Group Limited reported a strong performance in the fourth quarter of fiscal year 2025, achieving year-over-year growth in GMV and net revenues, and returning to profitability, indicating a healthier growth phase for the company [5][15][20]. Financial Highlights - **Fourth Quarter 2025 Performance**: - GMV reached RMB 2,918.3 million, an increase of 8.5% from RMB 2,690.3 million in Q4 2024 [1]. - Net revenues were RMB 2,557.2 million, up 7.9% from RMB 2,370.2 million in Q4 2024 [9]. - Gross profit was RMB 396.4 million, a decrease of 2.1% from RMB 404.998 million in Q4 2024, with a gross margin of 15.5% [11]. - The company reported a net profit of RMB 4.8 million, compared to a net loss of RMB 29.1 million in Q4 2024 [15]. - **Fiscal Year 2025 Performance**: - Total net revenues for the year were RMB 8,987.7 million, representing a 2.6% increase from RMB 8,761.3 million in 2024 [20]. - Gross profit for the year was RMB 1,475.7 million, down 2.3% from RMB 1,510.5 million in 2024, with a gross margin of 16.4% [23]. - The net loss for the year was RMB 139.7 million, an improvement from a net loss of RMB 268.0 million in 2024 [27]. Operational Highlights - The company expanded its customer base significantly, with the number of customers increasing by 59.8% year-over-year in Q4 2025 [2]. - The international business saw approximately 50% sequential GMV growth and a 20% increase in customer count during the quarter, with global fulfillment now covering 17 countries [8]. AI and Technology Integration - ZKH Group continued to enhance its AI capabilities, embedding AI across operations, which contributed to improved productivity and operational efficiency [7]. - The ProductRecom Agent (AI) generated over RMB 200 million in cumulative sales by improving supply and demand matching [8]. - The company launched the industry's first MRO vertical large language model, "H-Nimble," in 2025, which supports ongoing AI development [9]. Cost Management and Efficiency - Operating expenses decreased by 3.0% year-over-year in Q4 2025, reflecting disciplined cost management and broader AI adoption [14]. - General and administrative expenses were down 6.4% from the previous year, primarily due to lower share-based compensation and credit loss allowances [16].