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ZKH Group Limited Announces First Quarter 2026 Unaudited Financial Results

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ZKH Group (NYSE:ZKH) reported first quarter 2026 unaudited results with solid top-line growth and sharply improved profitability. GMV rose 12.9% to RMB2.45 billion, customers grew 11% to 66,742, and net revenues increased 9.2% to RMB2.11 billion.

Gross profit grew 6.6% to RMB354.0 million with a 16.7% gross margin. Operating loss narrowed to RMB22.5 million and net loss to RMB10.1 million. Non-GAAP EBITDA turned positive at RMB4.2 million, and non-GAAP adjusted net profit reached RMB1.7 million. Operating expenses fell 8.8%, and the company repurchased about 1.48 million ADSs under its US$50 million program.

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Positive

  • GMV up 12.9% year over year to RMB2,452.8 million
  • Net revenues up 9.2% year over year to RMB2,113.8 million
  • Customers up 11.0% year over year to 66,742
  • Operating loss reduced from RMB80.8 million to RMB22.5 million
  • Net loss reduced from RMB66.7 million to RMB10.1 million
  • Non-GAAP EBITDA turned positive to RMB4.2 million (0.2% margin)
  • Non-GAAP adjusted net profit RMB1.7 million vs. RMB50.2 million loss
  • Operating expenses down 8.8% to RMB376.5 million
  • Fulfillment expenses down 16.8% and 3.7% of net revenues
  • Marketplace GMV up 18.3%; GBB platform GMV up 30.6%
  • Operating cash outflow improved to RMB34.0 million from RMB97.1 million
  • Repurchased ~1.48 million ADSs for about US$4.76 million

Negative

  • Gross margin declined from 17.2% to 16.7% of net revenues
  • Gross profit as % of GMV fell from 15.3% to 14.4%
  • Marketplace take rate decreased from 14.0% to 12.9%
  • Company still reported a net loss of RMB10.1 million
  • Operating cash flow remained negative at RMB34.0 million used
  • Other revenues declined 13.2% to RMB10.9 million

News Market Reaction – ZKH

-0.68%
12 alerts
-0.68% Session close to close
+4.7% Peak Tracked
-7.8% Trough Tracked
$447.33M Market Cap
0.2x Rel. Volume

In the May 21 session, ZKH declined 0.68%, reflecting a mild negative market reaction. Argus tracked a peak move of +4.7% during that session. Argus tracked a trough of -7.8% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights Q1 2026 acceleration in GMV and net revenues, alongside a notable shift...
Analysis

This announcement highlights Q1 2026 acceleration in GMV and net revenues, alongside a notable shift to non-GAAP profitability and sharply narrower GAAP losses. Historically, earnings have produced mixed share-price reactions despite gradual operational improvement. Investors may focus on gross margin trends, operating efficiency, cash of RMB1.84B, and execution of AI and private-label initiatives, while monitoring future quarters for sustained double-digit GMV growth and consistent profitability.

Key Figures

GMV: RMB2,452,783k Net revenues: RMB2,113.8M Gross profit: RMB354.0M +5 more
8 metrics
GMV RMB2,452,783k Q1 2026, +12.9% YoY vs RMB2,171,997k in Q1 2025
Net revenues RMB2,113.8M Q1 2026, +9.2% YoY vs RMB1,935.4M
Gross profit RMB354.0M Q1 2026, +6.6% YoY vs RMB332.1M
Operating loss RMB22.5M Q1 2026, improved from RMB80.8M loss in Q1 2025
Net loss RMB10.1M Q1 2026, narrowed from RMB66.7M in Q1 2025
Non-GAAP adjusted net profit RMB1.7M Q1 2026, vs non-GAAP adjusted net loss RMB50.2M in Q1 2025
Cash & equivalents RMB1.84B As of Mar 31, 2026; vs RMB1.92B at Dec 31, 2025
Share repurchases US$4.76M / 1.48M ADSs Under US$50M program through Mar 31, 2026

Previous Earnings Reports

5 past events · Latest: Mar 19 (Positive)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Mar 19 Q4/FY25 earnings Positive -28.7% Q4 2025 net revenues grew and company returned to GAAP profitability.
Nov 20 Q3 2025 earnings Positive +1.6% Q3 2025 results showed higher revenues, gross profit and narrower operating loss.
Aug 22 Q2 2025 earnings Neutral +0.7% Q2 2025 delivered mixed trends with lower revenues but improved net loss.
May 20 Q1 2025 earnings Neutral -3.3% Q1 2025 showed revenue growth, more customers and narrower operating loss.
Mar 18 Q4/FY24 earnings Neutral +0.3% Q4/FY2024 results were mixed, with flat margin but improved cash flow.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases often triggered volatile reactions, skewed negative on average despite generally improving fundamentals and narrowing losses.

Recent Company History

Over the past year, ZKH’s earnings updates showed steady operational improvement: GMV and net revenues grew while losses narrowed and cash balances remained solid. Events on Aug 22, 2025 and Nov 20, 2025 highlighted customer growth and cost control, with mostly positive or mixed reactions. The sharp selloff after the Mar 19, 2026 earnings, despite a return to quarterly profitability, contrasts with the company’s continued focus on AI, efficiency, and expanding SKUs, setting the backdrop for today’s Q1 2026 results.

Key Terms

gmv, mro, non-gaap ebidta, basis points, +4 more
8 terms
gmv financial
"GMV [1] | 2,171,997 | 2,452,783 | 12.9 %"
Gross merchandise value (GMV) is the total dollar value of all goods and services sold through a platform or marketplace over a given period, measured before deducting fees, returns, or discounts. Investors watch GMV to gauge the raw size and growth of customer activity—like counting every ticket sold at a concert before subtracting organizer costs—while remembering it is not the same as revenue or profit.
mro technical
"a leading maintenance, repair, and operations ("MRO") procurement service platform in China"
MRO stands for Maintenance, Repair, and Operations, referring to the supplies and services companies provide to keep machinery, buildings, and infrastructure functioning smoothly. These essentials are vital for ongoing business activities, much like routine car maintenance keeps a vehicle running reliably. Investors pay attention to MRO companies because their performance reflects the health of industries that rely heavily on regular upkeep and support services.
non-gaap ebidta financial
"Non-GAAP EBITDA [4] | (51,959) | 4,237 | -"
Non-GAAP EBITDA is a company-reported measure of operating profit that starts with earnings before interest, taxes, depreciation and amortization and then removes or adjusts items that standard accounting rules (GAAP) would normally include. Think of it like a household’s monthly cash flow excluding mortgage interest, taxes and one-off repairs to show how the core business performs; investors use it to judge underlying profitability and cash-generating ability, but it can vary between firms and may be shaped to look more favorable.
basis points financial
"except for percentage and basis points ("bps")"
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
take rate financial
"% of GMV from the Marketplace Model (Take Rate [6] ) | 14.0 % | 12.9 %"
Take rate is the share of a platform’s total transaction volume that the platform keeps as revenue, usually expressed as a percentage of the money that passes through it. Investors watch take rate because it shows how well a business converts activity into income — like a marketplace owner keeping a slice of every sale — and changes in the take rate can signal improving monetization, pricing power, or margin pressure.
ads financial
"Basic and diluted net loss per ADS was RMB0.06 (US$0.01)"
Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.
american depositary shares financial
"ADSs are American depositary shares, each of which represents thirty-five (35)"
American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.
exchange rate financial
"all translations from RMB to US$ were made at a rate of RMB6.8980 to US$1.00, the exchange rate in effect"
Exchange rate is the price of one currency expressed in another—for example, how many euros you receive for one US dollar. It matters to investors because changes in that price alter the reported profits, costs and value of assets for companies and portfolios that operate or hold money across borders; think of it like switching measurement units, where the same item can look bigger or smaller depending on the unit used.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SHANGHAI, May 21, 2026 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair, and operations ("MRO") procurement service platform in China, today announced its unaudited financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Operational and Financial Highlights 


First Quarter


2025

2026

Change


(in thousand RMB, except for number of customers, percentage and basis
points("bps"))

GMV[1]

2,171,997

2,452,783

12.9 %

GMV by Platform





ZKH Platform

1,966,210

2,183,957

11.1 %


GBB Platform

205,787

268,826

30.6 %

GMV by Business Model





Product Sales (1P)

1,901,196

2,132,441

12.2 %


Marketplace (3P)[2]

270,800

320,342

18.3 %

Number of Customers[3]

60,102

66,742

11.0 %

Net Revenues

1,935,372

2,113,819

9.2 %

Gross Profit

332,118

354,027

6.6 %


% of Net Revenues

17.2 %

16.7 %

-41.2bps

Operating Loss

(80,813)

(22,497)

-72.2 %


% of Net Revenues

-4.2 %

-1.1 %

311.1bps

Non-GAAP EBITDA[4]

(51,959)

4,237

-


% of Net Revenues

-2.7 %

0.2 %

288.5bps

Net (Loss)/Profit

(66,723)

(10,103)

-84.9 %


% of Net Revenues

-3.4 %

-0.5 %

297.0bps

Non-GAAP Adjusted Net (Loss)/Profit[5]

(50,176)

1,690

-


% of Net Revenues

-2.6 %

0.1 %

267.3bps

 

Mr. Eric Long Chen, Chairman and Chief Executive Officer of ZKH, stated, "We are off to a strong start in 2026, with GMV and revenue growth accelerating year over year for the second consecutive quarter. GMV and revenues delivered their highest quarterly year-over-year growth in recent quarters, reflecting robust customer demand and strengthening execution across our platform. Momentum remained broad-based across key customer segments, with small and mid-sized enterprises (SMEs) sustaining over 20% GMV growth and central state-owned enterprises (SOEs) returning to double-digit year-over-year GMV growth. More importantly, the quality of our growth continued to improve, driving significant earnings improvement on both a GAAP and non-GAAP basis. Underpinning this performance was our continued progress in strengthening our product ecosystem, fulfillment network, and AI-powered digitalization, which improved our customer penetration, execution capabilities, and platform scalability. Looking ahead, we believe the solid operational foundation we have built positions us well to further scale the business, improve profitability, and create long-term value for our shareholders."

Mr. Max Chun Chiu Lai, Chief Financial Officer of ZKH, added, "Our financial profile improved meaningfully during the quarter. Gross profit achieved year-over-year growth, while gross margin on a GMV basis improved by 0.9 percentage points sequentially. At the same time, operating loss and net loss narrowed significantly year over year, reflecting ongoing enhancement in our operating efficiency and business quality. Notably, non-GAAP adjusted net profit increased by approximately 103.4% year over year, representing a significant turnaround and marking the first time we achieved non-GAAP profitability in a seasonally soft first quarter. These encouraging results further strengthened our confidence in achieving double-digit GMV growth and full-year profitability in 2026. In addition, operating cash flow continued to improve year over year, further reinforcing our financial resilience."

[1] GMV is the total transaction value of orders placed on the Company's platform and shipped to customers, excluding taxes, net of the returned amount.

[2] The marketplace model accounted for 13.1% of GMV in the first quarter of 2026, compared with 12.5% in the corresponding periods of 2025.

[3] Customers are customers that transacted with the Company during the reporting period, mainly comprised of enterprise customers in various industries.

[4] Non-GAAP EBITDA is defined as net profit/(loss) before interest expenses, income tax expenses/(benefits) and depreciation and amortization expenses.

[5] Non-GAAP adjusted net (loss)/profit is defined as net (loss)/profit excluding share-based compensation expenses.

First Quarter 2026 Business Highlights

  • Business Momentum. The Company continued to build on its growth momentum during the quarter, with total GMV increasing 12.9% year over year, accelerating from both the previous quarter and the same period last year. The ZKH platform deepened penetration across its diversified customer segments: GMV from SME customers was up 20% year over year and GMV from central SOE customers returned to double-digit growth. The GBB platform achieved over 30% year-over-year GMV growth, further expanding its customer reach and reinforcing the Company's complementary dual-platform growth strategy.

  • Product Capabilities. The Company strengthened product capabilities across high-value and highly specialized industrial scenarios, with increased investments in ten key product lines, including factory automation, electrical automation, and cutting tools. GMV from key industries such as electrical manufacturing, steel and non-ferrous metals, and communications electronics grew by over 20% year over year, while professional MRO categories such as factory automation components and chemical reagents achieved double-digit growth. During the quarter, the Company added roughly 4 million sellable SKUs, bringing the total to approximately 27 million. At the same time, GMV from higher-margin private-label products grew by over 20% year over year and accounted for approximately 9.7% of total GMV in the first quarter of 2026, with over 400 new products launched during the quarter.

  • Fulfillment Network. The Company enhanced its fulfillment capacity and operational efficiency, supported by the continued expansion of its self-operated delivery fleet and a 36% year-over-year improvement in warehouse utilization efficiency. Continued optimization across its end-to-end fulfillment network drove a 17% year-over-year decrease in fulfillment expenses.

  • AI Capabilities. The Company continued to advance its full-stack AI capabilities, further strengthening its integrated AI infrastructure and accelerating AI adoption across both internal and external business scenarios.

    • At the data layer, the Company continued to strengthen its industrial product data infrastructure. In 2026, the Company targets building the industry's first hundred-million-scale industrial product data dictionary. The enhanced data capabilities are expected to further accelerate AI adoption across key workflows. In business scenarios involving product search and quotations from customers, AI currently handles roughly 30% of product matching and identification tasks that previously required manual processing. This percentage is expected to increase meaningfully in 2026, with key product lines such as fasteners, pipes and valves, and hand tools potentially achieving even higher levels, further improving quotation efficiency and sales conversion.
    • At the model layer, the Company upgraded its proprietary MRO large language model, "Hangjia Linglong (行家玲珑)," with enhanced multimodal capabilities, and launched "Hangjia Huiyan (行家慧眼)," the industry's first intelligent visual search engine for industrial products. Powered by advanced image recognition and multimodal AI capabilities, Hangjia Huiyan enables intelligent product identification, scenario understanding and demand diagnosis across complex industrial environments, significantly improving communication, product matching and procurement efficiency.
    • At the application layer, the Company continued to optimize key AI applications across core business functions, unlocking greater operational efficiency and commercial value across key industrial supply chain scenarios. The ProductRecom Agent (AI推品大脑), which generated over RMB200 million in sales in 2025, is expected to further scale its impact and commercial contribution in 2026.
  • International Expansion. The Company maintained solid momentum in serving Chinese manufacturers expanding overseas, with continued growth in both customers served and geographic coverage during the quarter. In the U.S. market, the Company further optimized its product development, sales channels, and fulfillment capabilities, strengthening its localized service and operations.

First Quarter 2026 Financial Results

Net Revenues. Net revenues were RMB2,113.8 million (US$306.4 million), representing an increase of 9.2% from RMB1,935.4 million in the same period of 2025. 



First Quarter



2025

2026

Change



(in thousand RMB, except for percentage)

Net Revenues


1,935,372

2,113,819

9.2 %


Net Product Revenues


1,884,860

2,061,621

9.4 %



From ZKH Platform


1,679,343

1,803,055

7.4 %



From GBB Platform


205,517

258,566

25.8 %


Net Service Revenues


37,894

41,251

8.9 %


Other Revenues


12,618

10,947

-13.2 %

 

Cost of Revenues. Cost of revenues was RMB1,759.8 million (US$255.1 million), representing an increase of 9.8% from RMB1,603.3 million in the same period of 2025.

Gross Profit and Gross Margin. Gross profit was RMB354.0 million (US$51.3 million), representing an increase of 6.6% from RMB332.1 million in the same period of 2025. Gross margin was 16.7%, compared with 17.2% in the same period of 2025.





First Quarter





2025

2026

Change





(in thousand RMB, except for percentage and
basis points ("bps"))

Gross Profit

332,118

354,027

6.6 %


% of Net Revenues

17.2 %

16.7 %

-41.2bps


% of GMV

15.3 %

14.4 %

-85.7bps


Under Product Sales (1P)






ZKH Platform

278,618

295,205

6.0 %




% of Net Product Revenues from
ZKH Platform

16.6 %

16.4 %

-21.8bps



GBB Platform

12,687

15,669

23.5 %




% of Net Product Revenues from
GBB Platform

6.2 %

6.1 %

-11.3bps


Under Marketplace (3P)

37,894

41,251

8.9 %



% of Net Service Revenues

100.0 %

100.0 %

-



% of GMV from the Marketplace Model
(Take Rate[6])

14.0 %

12.9 %

-111.6bps


Others

2,918

1,902

-34.8 %



% of Other Revenues

23.1 %

17.4 %

-575.1bps

 

Operating Expenses. Operating expenses were RMB376.5 million (US$54.6 million), down 8.8% from RMB412.9 million in the same period of 2025. Operating expenses were 17.8% of net revenues, compared with 21.3% in the same period of 2025.

  • Fulfillment Expenses. Fulfillment expenses were RMB77.6 million (US$11.3 million), down 16.8% from RMB93.3 million in the same period of 2025, primarily due to lower distribution expenses, employee benefits expenses and rental and property management fees. Fulfillment expenses were 3.7% of net revenues, compared with 4.8% in the same period of 2025.

  • Sales and Marketing Expenses. Sales and marketing expenses were RMB137.6 million (US$20.0 million), up 0.6% from RMB136.8 million in the same period of 2025, primarily due to higher employee benefits expenses, partially offset by lower marketing and promotion expenses, as well as traveling expenses. Sales and marketing expenses were 6.5% of net revenues, compared with 7.1% in the same period of 2025.

  • Research and Development Expenses. Research and development expenses were RMB29.3 million (US$4.3 million), down 25.9% from RMB39.6 million in the same period of 2025, primarily due to lower employee benefits expenses. Research and development expenses were 1.4% of net revenues, compared with 2.0% in the same period of 2025.

  • General and Administrative Expenses. General and administrative expenses were RMB131.9 million (US$19.1 million), down 7.9% from RMB143.2 million in the same period of 2025, primarily due to lower employee benefits expenses and loss on inventory write-down and disposal, partially offset by higher service fee. General and administrative were 6.2% of net revenues, compared with 7.4 % in the same period of 2025.

Loss from Operations. Loss from operations was RMB22.5 million (US$3.3 million), compared with RMB80.8 million in the same period of 2025. Operating loss margin was 1.1%, compared with 4.2% in the same period of 2025.

Non-GAAP EBITDA. Non-GAAP EBITDA was RMB4.2 million (US$0.6 million), compared with negative RMB52.0 million in the same period of 2025. Non-GAAP EBITDA margin was 0.2%, compared with negative 2.7% in the same period of 2025.

Net Loss. Net loss was RMB10.1 million (US$1.5 million), compared with RMB66.7 million in the same period of 2025. Net loss margin was 0.5%, compared with 3.4% in the same period of 2025.

Non-GAAP Adjusted Net Profit/(Loss). Non-GAAP adjusted net profit was RMB1.7 million (US$0.2 million), compared with non-GAAP adjusted net loss of RMB50.2 million in the same period of 2025. Non-GAAP adjusted net profit margin was 0.1%, compared with non-GAAP adjusted net loss margin of 2.6% in the same period of 2025.

Basic and Diluted Net Profit/(Loss) per ADS[7] and Non-GAAP Adjusted Basic and Diluted Net Profit/(Loss) per ADS[8]. Basic and diluted net loss per ADS was RMB0.06 (US$0.01), compared with RMB0.41 in the same period of 2025. Non-GAAP adjusted basic and diluted net profit per ADS were RMB0.01 (US$0.002), compared with basic and diluted net loss per ADS of RMB0.31 in the same period of 2025.

Balance Sheet and Cash Flow

As of March 31, 2026, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB1.84 billion (US$266.1 million), compared with RMB1.92 billion as of December 31, 2025.

Net cash used in operating activities was RMB34.0 million (US$4.9 million) in the first quarter of 2026, compared with net cash used in operating activities of RMB97.1 million in the same period of 2025. 

Share Repurchase Update

Pursuant to the Company's share repurchase program of up to US$50 million, adopted on June 13, 2025 and effective through June 13, 2026, the Company repurchased an aggregate of approximately 1.48 million ADSs for approximately US$4.76 million from the open market as of March 31, 2026.

Exchange Rate

This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB6.8980 to US$1.00, the exchange rate in effect as of March 31, 2026, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

[6] Take rate of the marketplace model represents gross profit from the marketplace model divided by GMV from the marketplace model.

[7] ADSs are American depositary shares, each of which represents thirty-five (35) Class A ordinary shares of the Company.

[8] Non-GAAP adjusted basic and diluted net profit/(loss) per ADS is a non-GAAP financial measure, which is calculated by dividing non-GAAP adjusted net profit/(loss) attributable to the Company's ordinary shareholders by the weighted average number of ADSs.

Conference Call Information

The Company's management will hold a conference call on Thursday, May 21, 2026, at 7:00 A.M. U.S. Eastern Time or 7:00 P.M. Beijing Time to discuss its financial results and operating performance for the first quarter of 2026.

United States (toll free):

+1-888-317-6003

International:

+1-412-317-6061

Mainland China (toll free):

400-120-6115

Hong Kong (toll free):

800-963-976

Hong Kong:

+852-5808-1995

Access Code:

2335796

The replay will be accessible through May 28, 2026 by dialing the following numbers:

United States:

+1-855-669-9658

International:

+1-412-317-0088

Replay Access Code:

6840038

A live and archived webcast of the conference call will also be available on the Company's investor relations website at https://ir.zkh.com.

About ZKH Group Limited

ZKH Group Limited (NYSE: ZKH) is a leading MRO procurement service platform in China, underpinned by robust supply chain capabilities and dedicated to serving customers globally through a product-led, agentic AI-driven approach. Through its primary online platforms, the ZKH platform, the GBB platform and the Northsky platform, along with innovative technology and extensive industry expertise, the Company provides bespoke MRO procurement solutions to a diverse and loyal customer base. These solutions encompass hyper-personalized product curation from a comprehensive selection of quality products at competitive prices. Additionally, the Company ensures timely and reliable product delivery through professional fulfillment services. By focusing on reducing procurement costs and addressing management efficiency challenges, ZKH is transforming the opaque MRO procurement process and empowering all stakeholders across the value chain.

For more information, please visit: https://ir.zkh.com.

Use of Non-GAAP Financial Measures 

This press release contains the following non-GAAP financial measures: non-GAAP adjusted net (loss)/profit, non-GAAP adjusted net (loss)/profit per ADS, basic and diluted, and non-GAAP EBITDA. The non-GAAP financial measures should not be considered in isolation from or construed as alternatives to their most directly comparable financial measures prepared in accordance with accounting principles generally accepted in the United States of America. Investors are encouraged to review the historical non-GAAP financial measures in reconciliation to their most directly comparable GAAP financial measures. 

The Company defines non-GAAP adjusted net (loss)/profit for a specific period as net loss in the same period excluding share-based compensation expenses. The Company defines non-GAAP EBITDA as net loss before interest expenses, income tax expenses/(benefits) and depreciation and amortization expenses. Non-GAAP adjusted net (loss)/profit per ADS is calculated by dividing adjusted net (loss)/profit attributable to the Company's ordinary shareholders by the weighted average number of ordinary shares during the periods and then multiplied by 35.

The Company presents these non-GAAP financial measures because they are used by the management to evaluate the Company's operating performance and formulate business plans. The Company believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in net loss and certain expenses that are not expected to result in future cash payments or that are non-recurring in nature. The Company also believes that the use of these non-GAAP financial measures facilitates investors' assessment of its operating performance, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by the management in financial and operational decision making.

The non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider the non-GAAP financial measures as substitutes for, or superior to, their most directly comparable financial measures prepared in accordance with GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" set forth at the end of this press release.

Safe Harbor Statement 

This press release contains forward-looking statements. These statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aim," "estimates," "intends," "plans," "believes," "is/are likely to," "potential," "continue," and similar statements. Among other things, the quotations from management in this press release and ZKH's strategic and operational plans contain forward-looking statements. ZKH may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press release and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ZKH's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ZKH's mission, goals and strategies; ZKH's future business development, financial condition and results of operations; the expected changes in its revenues, expenses or expenditures; the expected growth of the MRO procurement service industry in China and globally; changes in customer or product mix; ZKH's expectations regarding the prospects of its business model and the demand for and market acceptance of its products and services; ZKH's expectations regarding its relationships with customers, suppliers, and service providers on its platform; competition in the Company's industry; government policies and regulations relating to ZKH's industry; general economic and business conditions in China and globally; the outcome of any current and future legal or administrative proceedings; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ZKH's filings with the SEC. All information provided herein is as of the date of this announcement, and ZKH undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

ZKH Group Limited
IR Department
E-mail: IR@zkh.com

Christensen Advisory
Email: zkh@christensencomms.com

 

 

ZKH GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except share, ADS, per share and per ADS data)



As of December 31,


As of March 31,



2025


2026



RMB


RMB


US$

Assets







Current assets:







Cash and cash equivalents


1,030,573


1,074,095


155,711

Restricted cash


61,871


50,891


7,378

Short-term investments


825,289


710,454


102,994

Accounts receivable (net of allowance

   for credit losses of RMB159,923 and

   RMB162,340 as of December 31,

   2025 and March 31, 2026, respectively)


3,257,162


3,078,948


446,354

Notes receivable


113,291


142,929


20,720

Inventories


669,825


642,102


93,085

Prepayments and other current assets


180,188


179,508


26,023

Total current assets


6,138,199


5,878,927


852,265








Non-current assets:







Property and equipment, net


186,185


183,313


26,575

Land use right


10,582


10,526


1,526

Operating lease right-of-use assets, net


142,205


130,844


18,968

Intangible assets, net


21,871


27,057


3,922

Goodwill


30,807


30,807


4,466

Total non-current assets


391,650


382,547


55,457

Total assets


6,529,849


6,261,474


907,722








Liabilities







Current liabilities:







Short-term borrowings


240,000


230,000


33,343

Current portion of long-term borrowings


2,305


2,305


334

Accounts and notes payable


2,718,941


2,487,578


360,623

Operating lease liabilities


50,202


47,083


6,826

Advance from customers


27,152


37,805


5,481

Accrued expenses and other current liabilities


378,566


390,097


56,552

Derivatives


8,624


-


-

Total current liabilities


3,425,790


3,194,868


463,159








Non-current liabilities:







Long-term borrowings


42,651


42,651


6,183

Non-current operating lease liabilities


91,894


83,247


12,068

Other non-current liabilities


28,181


34,969


5,069

Total non-current liabilities


162,726


160,867


23,320

Total liabilities


3,588,516


3,355,735


486,479
























As of December 31,


As of March 31,



2025


2026



RMB


RMB


US$

ZKH Group Limited shareholders' equity:







Ordinary shares (USD0.0000001 par value;
   500,000,000,000 and 500,000,000,000
   shares authorized; 5,682,357,714 and
   5,687,307,274 shares issued and
   5,563,528,436 and 5,555,047,923 shares
   outstanding as of December 31, 2025 and
   March 31, 2026, respectively)


4


4


1

Additional paid-in capital


8,370,941


8,385,264


1,215,607

Statutory reserves


6,566


6,566


952

Accumulated other comprehensive income/(loss)


(37,288)


(67,426)


(9,775)

Accumulated deficit


(5,317,131)


(5,327,234)


(772,287)

Treasury stock


(81,759)


(91,435)


(13,255)

Total ZKH Group Limited shareholders' equity


2,941,333


2,905,739


421,243

Total liabilities and shareholders' deficit


6,529,849


6,261,474


907,722

 

 

ZKH GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF (LOSS)/PROFIT

(All amounts in thousands, except share, ADS, per share and per ADS data)


For the three months ended


March 31, 2025


March 31, 2026


RMB


RMB


US$

Net revenues






Net product revenues

1,884,860


2,061,621


298,872

Net service revenues

37,894


41,251


5,980

Other revenues

12,618


10,947


1,587

Total net revenues

1,935,372


2,113,819


306,439

Cost of revenues

(1,603,254)


(1,759,792)


(255,116)

Operating expenses






Fulfillment

(93,307)


(77,608)


(11,251)

Sales and marketing

(136,835)


(137,640)


(19,954)

Research and development  

(39,613)


(29,342)


(4,254)

General and administrative

(143,176)


(131,934)


(19,126)

Loss from operations

(80,813)


(22,497)


(3,262)

Interest and investment income

13,279


8,407


1,219

Interest expense

(2,350)


(2,263)


(328)

Others, net

3,408


6,765


981

Loss before income tax

(66,476)


(9,588)


(1,390)

Income tax expenses

(247)


(515)


(75)

Net loss

(66,723)


(10,103)


(1,465)

Less: net income attributable to non-controlling
  interests

-


-


-

Less: net loss attributable to redeemable non-
  controlling interests

-


-


-

Net loss attributable to ZKH Group Limited

(66,723)


(10,103)


(1,465)

Accretion on preferred shares to redemption
  value

-


-


-

Net loss attributable to ZKH Group Limited's
   ordinary shareholders

(66,723)


(10,103)


(1,465)








For the three months ended


March 31, 2025


March 31, 2026


RMB


RMB


US$







Net loss

(66,723)


(10,103)


(1,465)

Other comprehensive loss:






Foreign currency translation adjustments

(3,008)


(30,138)


(4,369)

Total comprehensive loss

(69,731)


(40,241)


(5,834)

Less: comprehensive income attributable to non-
   controlling interests

-


-


-

Less: comprehensive loss attributable to
   redeemable non-controlling interests

-


-


-

Comprehensive loss attributable to ZKH
    Group Limited

(69,731)


(40,241)


(5,834)

Accretion on Preferred Shares to redemption
   value

-


-


-

Total comprehensive loss attributable to ZKH
     Group Limited's ordinary shareholders

(69,731)


(40,241)


(5,834)







Net loss per ordinary share attributable to
     ordinary shareholders






Basic

(0.01)


(0.00)


(0.00)

Diluted

(0.01)


(0.00)


(0.00)

Weighted average number of shares






Basic

5,695,083,577


5,641,256,369


5,641,256,369

Diluted

5,695,083,577


5,641,256,369


5,641,256,369







Net loss per ADS attributable to ordinary
    shareholders






Basic

(0.41)


(0.06)


(0.01)

Diluted

(0.41)


(0.06)


(0.01)

Weighted average number of ADS (35 Class A
    ordinary shares equal to 1 ADS)






Basic

162,716,674


161,178,753


161,178,753

Diluted

162,716,674


161,178,753


161,178,753

 

 

ZKH GROUP LIMITED

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except share, ADS, per share and per ADS data)


For the three months ended


March 31, 2025


March 31, 2026


RMB


RMB


US$

Net loss

(66,723)


(10,103)


(1,465)

Income tax expenses

247


515


75

Interest expenses

2,350


2,263


328

Depreciation and amortization expense

12,167


11,562


1,676

Non-GAAP EBITDA

(51,959)


4,237


614












For the three months ended


March 31, 2025


March 31, 2026


RMB


RMB


US$







Net loss

(66,723)


(10,103)


(1,465)

Add:






Share-based compensation expenses

16,547


11,793


1,709

Non-GAAP adjusted net (loss)/profit

(50,176)


1,690


244







Non-GAAP adjusted net (loss)/profit
   attributable to ordinary shareholders per share






Basic

(0.01)


0.00


0.00

Diluted

(0.01)


0.00


0.00

Weighted average number of ordinary shares






Basic

5,695,083,577


5,641,256,369


5,641,256,369

Diluted

5,695,083,577


5,641,256,369


5,641,256,369







Non-GAAP adjusted net (loss)/profit
   attributable to ordinary shareholders per
   ADS






Basic

(0.31)


0.01


0.00

Diluted

(0.31)


0.01


0.00

Weighted average number of ADS (35 Class A
   ordinary shares equal to 1 ADS)






Basic

162,716,674


161,178,753


161,178,753

Diluted

162,716,674


161,178,753


161,178,753

 

Cision View original content:https://www.prnewswire.com/news-releases/zkh-group-limited-announces-first-quarter-2026-unaudited-financial-results-302778804.html

SOURCE ZKH Group Limited

FAQ

How did ZKH (NYSE:ZKH) perform in Q1 2026 in terms of revenue and GMV?

ZKH reported higher revenue and GMV in Q1 2026. According to ZKH, GMV rose 12.9% to RMB2,452.8 million and net revenues increased 9.2% to RMB2,113.8 million compared with the first quarter of 2025.

Did ZKH achieve profitability on a non-GAAP basis in the first quarter of 2026?

ZKH achieved non-GAAP profitability in Q1 2026. According to ZKH, non-GAAP EBITDA turned positive at RMB4.2 million and non-GAAP adjusted net profit reached RMB1.7 million, compared with significant non-GAAP losses in the prior-year quarter.

What were ZKH Group’s net loss and operating loss for Q1 2026 (NYSE:ZKH)?

ZKH reduced both net and operating losses in Q1 2026. According to ZKH, net loss narrowed to RMB10.1 million and loss from operations to RMB22.5 million, down from RMB66.7 million and RMB80.8 million respectively a year earlier.

How did gross margin and take rate change for ZKH in Q1 2026?

ZKH’s margins softened slightly in Q1 2026. According to ZKH, gross margin declined to 16.7% from 17.2%, while the marketplace model take rate decreased to 12.9% of GMV from 14.0% in the first quarter of 2025.

What does the Q1 2026 cash position and cash flow indicate for ZKH (ZKH stock)?

ZKH maintained a sizable cash position but still used cash in operations. According to ZKH, cash and equivalents plus short-term investments were RMB1.84 billion, while net cash used in operating activities improved to RMB34.0 million from RMB97.1 million a year earlier.

How many ADSs did ZKH repurchase under its buyback program by March 31, 2026?

ZKH continued its share repurchase program during Q1 2026. According to ZKH, the company had repurchased approximately 1.48 million ADSs from the open market for about US$4.76 million as part of its up-to-US$50 million authorization.

What key operating metrics improved for ZKH in Q1 2026, including customers and platforms?

Several operating metrics improved for ZKH in Q1 2026. According to ZKH, the number of customers grew 11.0% to 66,742, ZKH platform GMV increased 11.1%, and GBB platform GMV rose 30.6%, supporting the company’s dual-platform strategy.