Core Insights - Zhenkunhang (NYSE: ZKH) reported a significant reduction in adjusted net loss for Q3 2025, narrowing to approximately 14 million RMB, a 78% decrease from about 66 million RMB in the same period last year, exceeding market expectations of 30 to 40 million RMB loss [1] - The company achieved a monthly breakeven point in September and is confident in achieving quarterly profitability in Q4 2025, marking a transition into a "profitability growth phase" [1][7] Business Performance - The average daily order volume increased from approximately 37 million RMB in July to about 52 million RMB in November, representing a growth of over 40% [2] - The number of customers surpassed 70,000, setting a new quarterly record, which lays a solid foundation for future growth [2] - Total expenses decreased by 14.4% year-on-year to approximately 420 million RMB, showcasing effective cost control and operational optimization [2] Product and AI Development - Zhenkunhang expanded its product matrix by adding over 2.3 million SKUs in Q3, bringing the total to over 19 million SKUs, with a goal to increase the share of its proprietary brand business from 8% to 30% [3] - The company launched its self-developed "Xingjialinglong" AI model, which automates 45 process scenarios, leading to a 42% increase in customer service efficiency and a 52% increase in procurement efficiency [4] - The AI-driven "AI Recommendation Brain" has generated over 100 million RMB in incremental sales since its launch, demonstrating the effectiveness of AI in enhancing sales performance [4] Future Outlook - Management plans to focus on strengthening its competitive edge in core industrial products, including spare parts and chemicals, to solidify its leadership position in the "hardcore" industrial goods sector [6] - Strategic partnerships with leading equipment manufacturers and core component suppliers are being established to enhance product offerings and customer service [7] - The company has successfully completed a phase of adjustment, indicating a stable recovery in overall operations and a transition to a new stage of high-quality growth [7]

Group 1: Core Insights - The 8th China International Import Expo officially opened in Shanghai, showcasing Zhenkunhang's innovative capabilities in empowering advanced manufacturing and revitalizing the global industrial supply chain [1] - Zhenkunhang launched its self-developed "Xingjialinglong" AI model and intelligent agent family, marking a breakthrough in the intelligentization of industrial procurement [3][5] Group 2: AI Model and Intelligent Agents - The "Xingjialinglong" AI model leverages extensive product data and industry expertise accumulated from serving over 100,000 clients, focusing on the complexities and core pain points in procurement scenarios [5] - The intelligent agent family includes various functions such as AI Material Butler for data processing, AI Assistant for 24/7 inquiries, and AI Product Brain for demand prediction and product recommendations, enhancing efficiency in the supply chain [5] Group 3: ESG Report and Sustainability Initiatives - Zhenkunhang released its 2024 ESG report, emphasizing "responsibility as the foundation for value co-creation," covering governance, product responsibility, green initiatives, employee care, responsible procurement, and charity [7] - The company set ambitious carbon reduction goals, aiming for a 50% reduction in operational carbon by 2025, carbon neutrality by 2030, and full carbon neutrality by 2050 [9] Group 4: Innovation and R&D - The company announced the full operation of its Innovation R&D Center in Suzhou, focusing on new materials and intelligent equipment, enhancing its role in the innovation of industrial products [15][16] Group 5: Industry Collaboration and Influence - Zhenkunhang actively participated in high-end forums and events during the expo, expanding its industry collaboration and influence, and was recognized for its digital supply chain model [20][22] - The company shared its practices in AI technology at various dialogues, promoting the evolution of industrial cross-border services towards intelligence and efficiency [24] Group 6: Future Outlook - Zhenkunhang's participation in the expo reflects its commitment to deepening its service to China's advanced manufacturing and enhancing the resilience of the industrial supply chain through digitalization [25]