Financial Data and Key Metrics Changes - In Q4 2025, the company achieved a GMV of CNY 2.92 billion, reflecting an 8.5% year-over-year growth and an 11.3% sequential growth [21] - Total revenues for Q4 2025 reached CNY 2.56 billion, marking a 7.9% year-over-year increase and a 9.8% sequential increase [22] - For the full year, GMV declined by 3.3% year-over-year to CNY 10.1 billion, while total revenues increased by 2.6% year-over-year to CNY 9 billion [22] - The company returned to profitability in Q4 2025 with a non-GAAP adjusted net profit of CNY 14.9 million, a significant turnaround from a loss of CNY 50 million in the same period last year [26] Business Line Data and Key Metrics Changes - The number of transacting customers reached approximately 74,000 in Q4, a 60% year-over-year increase, indicating strong growth in the customer base [4] - GMV from key accounts and SME customers both maintained year-over-year growth, with GMV from SME customers increasing by over 20% year-over-year in Q4 [6] - The private label product business saw a 21% year-over-year increase in GMV, contributing to total GMV growth from 6.7% in 2024 to 8.3% in 2025 [9] Market Data and Key Metrics Changes - Internationally, GMV from international business grew by approximately 50% sequentially, with a 20% increase in the number of customers [7] - The fulfillment network expanded to cover 17 countries, enhancing the company's global footprint [7] Company Strategy and Development Direction - The company aims to achieve full-year profitability in 2026 while focusing on high-quality growth, margin expansion, and disciplined execution [28] - Strategic initiatives include enhancing product competitiveness, expanding the SME customer base, and deepening international market penetration [41][42] - The company is committed to increasing the share of private label products to approximately 10% of GMV in 2026 [37] Management's Comments on Operating Environment and Future Outlook - Management noted that the company has moved past transitional effects of strategic optimization and entered a healthier phase of development [3] - The ongoing geopolitical tensions, such as the war in the Middle East, may impact commodity prices but also present opportunities for sales expansion [33] - The company expects to leverage AI capabilities to enhance operational efficiency and drive future growth [18] Other Important Information - The company maintained a strong cash position with CNY 1.92 billion in cash and cash equivalents as of December 31, 2025, providing ample liquidity for operations and strategic initiatives [27] - Operational efficiency improved significantly, with total operating expenses decreasing by 8.7% year-over-year [25] Q&A Session Summary Question: About the decline in gross margin year-over-year in Q4 - Management explained that the decline was primarily due to changes in product mix and increased sales from lower-margin products, but they remain focused on improving overall profitability [32][34] Question: Growth targets for private labels - Management set a target for private labels to grow by 30% in 2026, aiming for a GMV share of approximately 10% [37] Question: Company's objectives and strategies for domestic business in 2026 - The main objective is to achieve full-year profitability, with strategies focusing on product competitiveness, expanding the SME customer base, and enhancing R&D capabilities [40][42][44]

NYSE: ZKH 4Q and Fiscal Year 2025 Earnings Presentation Disclaimer The following document has been prepared by ZKH GROUP LIMITED ("ZKH" or the "Company") solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the basis of ...

Financial Performance - ZKH's Q1 2025 product sales gross margin increased by 580 basis points year-over-year to 166% on the ZKH platform and by 675 basis points to 62% on the GBB platform[13] - The marketplace (3P) take rate increased by 2359 basis points year-over-year to 140%[13] - Private label product revenue increased by 40% year-over-year and is on track to achieve a 50% growth target for FY2025[13] - Operating loss narrowed by 377% year-over-year to RMB 808 million, with a margin improvement of 2791 basis points from -70% to -42%[13] - Net loss narrowed by 266% year-over-year to RMB 667 million, with a margin improvement of 1439 basis points from -49% to -34%[13] Customer and Platform Growth - The customer base exceeded 60000 in Q1 2025, representing a 303% year-over-year increase[13] - GMV in 2024 reached RMB 105 billion, with a 2020-2024 CAGR of 205%[7] - The company has over 83900 customers and 32+ million orders[7] International Expansion and AI - US revenue and customer base nearly doubled each month since January 2025[13] - AI Product Recom Agent helped drive RMB 34 million in revenue growth since launch and is scaling to 14000 customers in FY2025 with target sales growth in the hundreds of millions of RMB[13] - AI Smart Workbench boosted per-customer-service staff order processing volume by 604% quarter-over-quarter in Q1[13]