STOCK TITAN

ZKH Group Limited Announces Fourth Quarter and Fiscal Year 2025 Unaudited Financial Results

(Neutral)
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ZKH (NYSE: ZKH) reported Q4 2025 net revenues of RMB2,557.2M (+7.9% YoY) and returned to GAAP profitability with Q4 net profit of RMB4.8M. Fiscal 2025 net revenues were RMB8,987.7M (+2.6% YoY) with gross profit of RMB1,475.7M (-2.3% YoY). Key shifts: marketplace GMV fell and SME customer counts expanded significantly, while AI investments and fulfillment efficiency drove margin and productivity improvements.

Operational highlights include ~23 million SKUs, 5.7 million SKUs added in 2025, 30 distribution centers, through-warehouse fees down ~13%, and broad AI deployment including a vertical LLM and >5,000 RPAs.

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Positive

  • Number of customers +85.6% year-over-year (FY2025)
  • Non-GAAP EBITDA improved by 58.9% year-over-year (FY2025)
  • Added ~5.7 million sellable SKUs, totaling ~23 million SKUs
  • Through-warehouse fulfillment fees down ~13% year-over-year
  • Q4 GAAP net profit of RMB4.8M, returned to profitability

Negative

  • Marketplace (3P) GMV declined 33.1% year-over-year (FY2025)
  • Gross profit decreased 2.3% year-over-year (FY2025)
  • Net loss remained for FY2025 at RMB139.7M despite improvement

News Market Reaction – ZKH

-28.66% 6.9x vol
23 alerts
-28.66% Session close to close
-39.2% Trough in 6 hr 37 min
$532.27M Market Cap
6.9x Rel. Volume

In the Mar 19 session, ZKH declined 28.66%, reflecting a significant negative market reaction. Argus tracked a trough of -39.2% from its starting point during tracking. Our momentum scanner triggered 23 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 6.9x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -28.7% in the session following this news. A negative reaction despite the return ...
Analysis

The stock dropped -28.7% in the session following this news. A negative reaction despite the return to profitability would fit prior instances where improving metrics did not prevent downside moves, as seen after some past earnings despite narrowing losses and customer growth. Q4 2025 showed net revenues up 7.9% and a small net profit of RMB4.8M, but gross margin declined to 15.5%. Markets may have focused on margin pressure or GMV mix shifts, and past average post-earnings moves of -0.69% illustrate that optimism has often been tempered.

Key Figures

Q4 2025 GMV: RMB2,918,297K Q4 2025 net revenues: RMB2,557.2M Q4 2025 gross margin: 15.5% +5 more
8 metrics
Q4 2025 GMV RMB2,918,297K Q4 2025 GMV, up 8.5% vs Q4 2024
Q4 2025 net revenues RMB2,557.2M Q4 2025 net revenues, +7.9% YoY
Q4 2025 gross margin 15.5% Down from 17.1% in Q4 2024
Q4 2025 net profit RMB4.8M Returned to profit vs RMB29.1M loss in Q4 2024
FY 2025 net revenues RMB8,987.7M Full-year 2025 net revenues, +2.6% YoY
FY 2025 gross margin 16.4% Down from 17.2% in 2024
Q4 2025 customers 73,803 Number of customers in Q4 2025, +59.8% YoY
Private-label GMV mix 8.3% Share of total GMV in 2025, up from 6.7% in 2024

Previous Earnings Reports

5 past events · Latest: Nov 20 (Positive)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Nov 20 Q3 2025 earnings Positive +1.6% Q3 2025 showed revenue growth, narrowed losses and customer expansion.
Aug 22 Q2 2025 earnings Neutral +0.7% Q2 2025 saw lower revenues but improved net loss and strong customer growth.
May 20 Q1 2025 earnings Positive -3.3% Q1 2025 delivered revenue growth and narrower losses despite GMV decline.
Mar 18 Q4/FY 2024 earnings Neutral +0.3% Q4/FY 2024 reported slight revenue growth and better cash flow with ongoing losses.
Nov 22 Q3 2024 earnings Positive -2.9% Q3 2024 improved margins and cash flow amid GMV pressure and smaller loss.

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

Pattern Detected

Earnings releases have often produced modest moves, with a mix of positive and negative reactions; markets have sometimes sold off despite operational improvement.

Recent Company History

Across the last five earnings releases since Nov 2024, ZKH has shown steady customer growth and a consistent narrowing of losses, supported by improving cash generation and margin initiatives. GMV was pressured in early 2025 by strategic optimization, but revenues generally grew modestly and profitability metrics trended better. The latest Q4/FY 2025 report extends this pattern by returning to quarterly profitability and sustaining revenue growth, while margins compressed somewhat versus prior periods.

Key Terms

gmv, bps, non-gaap ebidta, take rate, +4 more
8 terms
gmv financial
"GMV [1] | 2,690,311 | 2,918,297 | 8.5 %"
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.
bps financial
"basis points("bps"))"
bps stands for "basis points," a unit equal to one hundredth of a percentage point (0.01%). Investors and analysts use bps to describe small changes in interest rates, yields, fees, or margins without confusing decimals — for example, a 50 bps move means a 0.50% change. Using bps makes it easier to compare and communicate tiny but meaningful shifts that can significantly affect bond prices, loan costs, or investment returns.
non-gaap ebidta financial
"Non-GAAP EBITDA [4] | (13,330) | 19,725"
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.
take rate financial
"% of GMV from the Marketplace Model (Take Rate [6] )"
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 profit per ADS was RMB0.03"
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"
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.
robotic process automation technical
"deployed more than 5,000 robotic process automation (RPA) digital employees"
Robotic process automation uses software “robots” to perform repetitive digital tasks—like copying data between systems, filling forms, and routing approvals—so people can focus on exceptions and higher-value work. For investors, RPA can lower operating costs, speed up transactions, reduce errors and scale activity without hiring many more staff, which can improve profit margins and cash flow and reduce the chance of process-related mistakes—like swapping manual data entry for a reliable machine.
rpa technical
"5,000 robotic process automation (RPA) digital employees"
Robotic Process Automation (RPA) is software that imitates routine human tasks on computers, such as moving data between systems, filling forms, or checking records, like a digital assistant that follows predictable rules. Investors care because RPA can cut labor costs, speed up operations, and reduce errors, which may improve profit margins and scalability; adoption trends can signal efficiency gains or lower running costs for a business.

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

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SHANGHAI, March 19, 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 fourth quarter and fiscal year ended December 31, 2025.

Fourth Quarter and Fiscal Year 2025 Operational and Financial Highlights


Fourth Quarter


Fiscal Year


2024

2025

Change


2024

2025

Change


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

GMV[1]

2,690,311

2,918,297

8.5 %


10,479,461

10,133,428

-3.3 %

GMV by Platform









ZKH Platform

2,435,037

2,638,242

8.3 %


9,475,550

9,103,399

-3.9 %


GBB Platform

255,274

280,055

9.7 %


1,003,911

1,030,029

2.6 %

GMV by Business Model









Product Sales (1P)

2,324,005

2,499,633

7.6 %


8,530,328

8,828,963

3.5 %


Marketplace (3P)[2]

366,306

418,664

14.3 %


1,949,133

1,304,465

-33.1 %

Number of Customers[3]

46,192

73,803

59.8 %


83,958

155,829

85.6 %

Net Revenues

2,370,223

2,557,238

7.9 %


8,761,318

8,987,738

2.6 %

Gross Profit

404,998

396,380

-2.1 %


1,510,471

1,475,662

-2.3 %


% of Net Revenues

17.1 %

15.5 %

-158.7bps


17.2 %

16.4 %

-82.2bps

Operating Loss

(32,589)

(28,229)

-13.4 %


(338,770)

(213,337)

-37.0 %


% of Net Revenues

-1.4 %

-1.1 %

27.1bps


-3.9 %

-2.4 %

149.3bps

Non-GAAP EBITDA[4]

(13,330)

19,725

-


(193,258)

(79,347)

-58.9 %


% of Net Revenues

-0.6 %

0.8 %

133.4bps


-2.2 %

-0.9 %

132.3bps

Net (Loss)/Profit

(29,102)

4,797

-


(268,043)

(139,742)

-47.9 %


% of Net Revenues

-1.2 %

0.2 %

141.5bps


-3.1 %

-1.6 %

150.5bps

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

(15,033)

14,860

-


(159,527)

(85,923)

-46.1 %


% of Net Revenues

-0.6 %

0.6 %

121.5bps


-1.8 %

-1.0 %

86.5bps

Mr. Eric Long Chen, Chairman and Chief Executive Officer of ZKH, stated, "In the fourth quarter, we achieved accelerated year-over-year GMV and revenue growth and returned to profitability, closing the year on a strong note. This performance marks the start of a fundamentally healthier, more resilient growth phase for the Company. Our momentum was powered by a broad-based expansion of our customer base, particularly among small and medium-sized enterprises (SMEs) underpinned by an increasingly diverse product portfolio, a stronger supplier network, and enhanced fulfillment capabilities. Notably, our ongoing investments in AI are already delivering measurable commercial impact and meaningful productivity gains across our operations. With a solid foundation and durable growth drivers firmly in place, we are well positioned to deliver sustainable, high-quality growth over the long term."

Mr. Max Chun Chiu Lai, Chief Financial Officer of ZKH, added, "We delivered solid revenue growth and achieved profitability on both a GAAP and non-GAAP basis during the fourth quarter, marking a significant improvement in our earnings profile. Operational efficiency continued to improve, with disciplined cost management, expanding scale and broader AI adoption driving down operating expenses year-over-year in both absolute terms and as a percentage of revenue. At the same time, an expanding SME customer base and the growing contribution from private-label products are strengthening our margin foundation. Looking ahead, we remain focused on enhancing operational efficiency and driving profitability to build a more resilient, sustainable foundation for future growth."

 

[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 14.3% of GMV in the fourth quarter and 12.9% for full year 2025, compared with 13.6% and 18.6% in the corresponding periods of 2024.

[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.

                                                 

Fourth Quarter and Fiscal Year 2025 Business Highlights

  • Business Momentum. Following proactive strategic optimization implemented over the past several quarters, the Company's operating performance showed clear signs of inflection point in the second half of 2025. Overall GMV largely recovered to prior-year levels in the third quarter, and accelerated in the fourth quarter on a year-over-year basis. This performance was supported by continued expansion across both SME and key accounts segments. GMV from SME customers on the ZKH platform sustained strong double-digit growth in the fourth quarter, while certain SOE customers previously impacted by strategic optimization returned to year-over-year growth and achieved a sequential expansion of over 20%.

  • Product Capabilities. The Company added more than 5.7 million sellable SKUs during the year, bringing the total to approximately 23 million and further expanding coverage of professional MRO categories such as fasteners, factory automation components, chemical reagents, and test instruments. At the same time, higher-margin private-label products accounted for approximately 8.3% of total GMV in 2025, up from 6.7% in 2024, with 349 new products launched during the quarter.

  • Fulfillment Network. The Company continued to optimize its multi-tier fulfillment infrastructure to enhance operational efficiency and service capabilities. The Company established a new Chengdu (成都) chemical warehouse in the fourth quarter. The fulfillment network now comprises 30 distribution centers and more than 100 transit warehouses, supported by over 200 self-operated delivery vehicles and more than 5,500 EVM smart vending machines deployed at customer production sites. Through-warehouse fulfillment fees fell for the eighth consecutive quarter, decreasing by approximately 13% year-over-year, reflecting continued improvements in the Company's warehousing efficiency.

  • AI Capabilities. The Company continued to execute on its AI strategy, embedding AI more deeply across operations and accelerating the translation of technological innovation into tangible commercial value.
    • At the data layer, the Company's proprietary data assets expanded to petabyte scale, supporting the Company's AI model with billions of parameters and providing a robust foundation for ongoing AI development. In 2025, token usage nearly doubled, with monthly usage exceeding 80 billion tokens, reflecting the rapid scaling of AI-powered capabilities across the Company's operations. Looking ahead, the Company expects token usage to increase by at least tenfold over the next two to three years. Meanwhile, the average cost per million tokens decreased year over year, driven by ongoing improvements in infrastructure efficiency.

    • At the model layer, the Company launched the industry's first MRO vertical large language model, "H-Nimble (行家玲珑)", in 2025, which completed regulatory filing with the Cyberspace Administration of China in September.

    • At the application layer, AI has been increasingly embedded into core business workflows, supporting both revenue generation and operational efficiency improvements. Key applications include:

-  The ProductRecom Agent (AI推品大脑), launched in the fourth quarter of 2024, served more than 30,000 customers in 2025 and generated over RMB200 million in cumulative sales by improving supply and demand matching and conversion efficiency.

-  The Company deployed more than 5,000 robotic process automation (RPA) digital employees, which exceeded the size of its human workforce and have become core infrastructure supporting scalable intelligent operations. Together, they saved a substantial amount of labor hours during the year.

-  The AI Smart Workbench (AI智能工作台) significantly reduced cross-system manual operations and enabled the transition of business processes from a high-touch to a low-touch operating model. In 2025, the AI Smart Workbench autonomously executed more than 520,000 system operations and improved productivity in process-intensive roles, with customer service and procurement productivity up approximately 45% and 50%, respectively, year over year.

  • International Expansion. Capitalizing on the overseas expansion of Chinese manufacturers, the Company's international business delivered approximately 50% sequential GMV growth and a 20% increase in customer count during the quarter. Global fulfillment coverage now extends to 17 countries.

Fourth Quarter 2025 Financial Results

Net Revenues. Net revenues were RMB2,557.2 million (US$365.7 million), representing an increase of 7.9% from RMB2,370.2 million in the same period of 2024.



Fourth Quarter



2024

2025

Change



(in thousand RMB, except for percentage)

Net Revenues


2,370,223

2,557,238

7.9 %


Net Product Revenues


2,303,451

2,493,894

8.3 %



From ZKH Platform


2,049,520

2,219,273

8.3 %



From GBB Platform


253,931

274,621

8.1 %


Net Service Revenues


51,226

49,700

-3.0 %


Other Revenues


15,546

13,644

-12.2 %

Cost of Revenues. Cost of revenues was RMB2,160.9 million (US$309.0 million), representing an increase of 10.0% from RMB1,965.2 million in the same period of 2024. 

Gross Profit and Gross Margin. Gross profit was RMB396.4 million (US$56.7 million), representing a decrease of 2.1% from RMB405.0 million in the same period of 2024. Gross margin was 15.5%, compared with 17.1% in the same period of 2024. The decrease was primarily attributable to changes in product mix that diluted gross profit margin, partially offset by an increased contribution from higher-margin private-label products.





Fourth Quarter





2024

2025

Change





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

Gross Profit

404,998

396,380

-2.1 %


% of Net Revenues

17.1 %

15.5 %

-158.7bps


% of GMV

15.1 %

13.6 %

-147.1bps


Under Product Sales (1P)






ZKH Platform

335,894

331,613

-1.3 %




% of Net Product Revenues from
ZKH Platform

16.4 %

14.9 %

-144.6bps



GBB Platform

13,958

14,131

1.2 %




% of Net Product Revenues from
GBB Platform

5.5 %

5.1 %

-35.1bps


Under Marketplace (3P)

51,226

49,700

-3.0 %



% of Net Service Revenues

100.0 %

100.0 %

-



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

14.0 %

11.9 %

-211.3bps


Others

3,920

936

-76.1 %



% of Other Revenues

25.2 %

6.9 %

-1,835.5bps

Operating Expenses. Operating expenses were RMB424.6 million (US$60.7 million), down 3.0% from RMB437.6 million in the same period of 2024. Operating expenses were 16.6% of net revenues, compared with 18.5% in the same period of 2024.

  • Fulfillment Expenses. Fulfillment expenses were RMB87.6 million (US$12.5 million), down 7.8% from RMB95.1 million in the same period of 2024, primarily due to lower warehouse rental costs and employee benefit expenses. Fulfillment expenses were 3.4% of net revenues, compared with 4.0% in the same period of 2024.

  • Sales and Marketing Expenses. Sales and marketing expenses were RMB153.0 million (US$21.9 million), up 0.9% from RMB151.6 million in the same period of 2024, primarily due to higher employee benefit expenses, partially offset by lower travel, marketing and promotion expenses. Sales and marketing expenses were 6.0% of net revenues, compared with 6.4% in the same period of 2024.

  • Research and Development Expenses. Research and development expenses were RMB44.1 million (US$6.3 million), up 6.4% from RMB41.4 million in the same period of 2024, primarily due to higher employee benefit expenses. Research and development expenses were 1.7% of net revenues, flat year over year.

  • General and Administrative Expenses. General and administrative expenses were RMB139.9 million (US$20.0 million), down 6.4% from RMB149.5 million in the same period of 2024, primarily due to lower loss on inventory write down and disposal, share-based compensation expenses, and employee benefit expenses, partially offset by higher credit loss allowances. General and administrative were 5.5% of net revenues, compared with 6.3% in the same period of 2024.

Loss from Operations. Loss from operations was RMB28.2 million (US$4.0 million), compared with RMB32.6 million in the same period of 2024. Operating loss margin was 1.1%, compared with 1.4% in the same period of 2024.

Non-GAAP EBITDA. Non-GAAP EBITDA was RMB19.7 million (US$2.8 million), compared with negative RMB13.3 million in the same period of 2024. Non-GAAP EBITDA margin was 0.8%, compared with negative 0.6% in the same period of 2024.

Net Profit/(Loss). Net profit was RMB4.8 million (US$0.7 million), compared with net loss of RMB29.1 million in the same period of 2024. Net profit margin was 0.2%, compared with net loss margin of 1.2% in the same period of 2024.

Non-GAAP Adjusted Net Profit/(Loss). Non-GAAP adjusted net profit was RMB14.9 million (US$2.1 million), compared with non-GAAP adjusted net loss of RMB15.0 million in the same period of 2024. Non-GAAP adjusted net profit margin was 0.6%, compared with non-GAAP adjusted net loss margin of 0.6% in the same period of 2024.

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 profit per ADS was RMB0.03 (US$0.004), compared with basic and diluted net loss per ADS of RMB0.18 in the same period of 2024. Non-GAAP adjusted basic and diluted net profit per ADS were RMB0.09 (US$0.01), compared with basic and diluted net loss per ADS of RMB0.09 in the same period of 2024.

 

[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.

 

Fiscal Year 2025 Financial Results

Net Revenues. Net revenues were RMB8,987.7 million (US$1,285.2 million), representing an increase of 2.6% from RMB8,761.3 million in 2024.



Fiscal Year



2024

2025

Change



(in thousand RMB, except for percentage)

Net Revenues


8,761,318

8,987,738

2.6 %


Net Product Revenues


8,449,468

8,766,751

3.8 %



From ZKH Platform


7,450,211

7,757,464

4.1 %



From GBB Platform


999,257

1,009,287

1.0 %


Net Service Revenues


244,707

171,264

-30.0 %


Other Revenues


67,143

49,723

-25.9 %

Cost of Revenues. Cost of revenues was RMB7,512.1 million (US$1,074.2 million), representing an increase of 3.6% from RMB7,250.8 million in 2024. The increase was in line with the growth in product revenues.

Gross Profit and Gross Margin. Gross profit was RMB1,475.7 million (US$211.0 million), representing a decrease of 2.3% from RMB1,510.5 million in 2024. Gross margin was 16.4%, compared with 17.2% in 2024, mainly due to a lower revenue contribution from the marketplace model, which yields a 100% gross margin under the net revenue recognition. Nevertheless, gross profit as a percentage of GMV was 14.6%, compared with 14.4% in 2024. 





Fiscal Year





2024

2025

Change





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

Gross Profit

1,510,471

1,475,662

-2.3 %


% of Net Revenues

17.2 %

16.4 %

-82.2bps


% of GMV

14.4 %

14.6 %

14.9bps


Under Product Sales (1P)






ZKH Platform

1,192,189

1,230,515

3.2 %




% of Net Product Revenues from
ZKH Platform

16.0 %

15.9 %

-14.0bps



GBB Platform

55,243

65,752

19.0 %




% of Net Product Revenues from
GBB Platform

5.5 %

6.5 %

98.6bps


Under Marketplace (3P)

244,707

171,264

-30.0 %



% of Net Service Revenues

100.0 %

100.0 %

-



% of GMV from the Marketplace Model (Take Rate)

12.6 %

13.1 %

57.4bps


Others

18,332

8,131

-55.6 %



% of Other Revenues

27.3 %

16.4 %

-1,095.0bps

Operating Expenses. Operating expenses were RMB1,689.0 million (US$241.5 million), a decrease of 8.7% from RMB1,849.2 million in 2024. Operating expenses as a percentage of net revenues were 18.8%, compared with 21.1% in 2024.

  • Fulfillment Expenses. Fulfillment expenses were RMB362.2 million (US$51.8 million), a decrease of 7.5% from RMB391.7 million in 2024. The decrease was primarily attributable to lower warehouse rental costs and employee benefit expenses. Fulfillment expenses as a percentage of net revenues were 4.0%, compared with 4.5% in 2024.

  • Sales and Marketing Expenses. Sales and marketing expenses were RMB585.0 million (US$83.7 million), a decrease of 8.8% from RMB641.5 million in 2024. The decrease was primarily attributable to lower travel expenses and employee benefit expenses. Sales and marketing expenses as a percentage of net revenues were 6.5%, compared with 7.3% in 2024.

  • Research and Development Expenses. Research and development expenses were RMB165.5 million (US$23.7 million), a decrease of 2.3% from RMB169.5 million in 2024. The decrease was primarily attributable to lower employee benefit expenses. Research and development expenses as a percentage of net revenues were 1.8%, compared with 1.9% in 2024.

  • General and Administrative Expenses. General and administrative expenses were RMB576.3 million (US$82.4 million), a decrease of 10.9% from RMB646.5 million in 2024. The decrease was primarily attributable to lower share-based compensation expenses and credit loss allowances. General and administrative expenses as a percentage of net revenues were 6.4%, compared with 7.4% in 2024.

Loss from Operations. Loss from operations was RMB213.3 million (US$30.5 million), compared with RMB338.8 million in 2024. Operating loss margin was 2.4%, compared with 3.9% in 2024.

Non-GAAP EBITDA. Non-GAAP EBITDA was negative RMB79.3 million (US$11.3 million), compared with negative RMB193.3 million in 2024. Non-GAAP EBITDA margin was negative 0.9%, compared with negative 2.2% in 2024.

Net Loss. Net loss was RMB139.7 million (US$20.0 million), compared with RMB268.0 million in 2024. Net loss margin was 1.6%, compared with 3.1% in 2024.

Non-GAAP Adjusted Net Loss. Non-GAAP adjusted net loss was RMB85.9 million (US$12.3 million), compared with RMB159.5 million in 2024. Non-GAAP adjusted net loss margin was 1.0%, compared with 1.8% in 2024.

Basic and Diluted Net Loss per ADS and Non-GAAP Adjusted Basic and Diluted Net Loss per ADS. Basic and diluted net loss per ADS were RMB0.86 (US$0.12), compared with RMB1.64 in 2024. Non-GAAP adjusted basic and diluted net loss per ADS were RMB0.53 (US$0.08), compared with RMB0.97 in 2024.

Balance Sheet and Cash Flow

As of December 31, 2025, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB1.92 billion (US$274.2 million), compared with RMB2.06 billion as of December 31, 2024.

Net cash generated from operating activities was RMB116.1 million (US$16.6 million) in the fourth quarter of 2025, compared with RMB170.7 million in the same period of 2024. For full-year 2025, net cash generated from operating activities was RMB13.7 million (US$2.0 million), compared with RMB229.1 million in 2024.

Share Repurchase Update

Pursuant to the Company's share repurchase program of up to US$50 million, adopted on June 13, 2025 and effective through June 13, 2026, the Company repurchased an aggregate of approximately 1.4 million ADSs for approximately US$ 4.4 million from the open market as of February 28, 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 RMB6.9931 to US$1.00, the exchange rate in effect as of December 31, 2025, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

Conference Call Information

The Company's management will hold a conference call on Thursday, March 19, 2026, at 8:00 A.M. U.S. Eastern Time or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the fourth quarter and fiscal year of 2025.

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:

0749989

The replay will be accessible through March 26, 2026 by dialing the following numbers:

United States:



+1-855-669-9658

International:



+1-412-317-0088

Replay Access Code:



5742991

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 December 31



2024


2025



RMB


RMB


US$

Assets







Current assets:







Cash and cash equivalents


1,423,943


1,030,573


147,370

Restricted cash 


92,939


61,871


8,847

Short-term investments


543,978


825,289


118,015

Accounts receivable (net of allowance for credit
losses of RMB145,789 and RMB159,923 as of
December 31, 2024 and December 31, 2025,
respectively)


3,090,323


3,257,162


465,768

Notes receivable


234,213


113,291


16,200

Inventories 


625,390


669,825


95,784

Prepayments and other current assets


179,387


180,188


25,767

Total current assets


6,190,173


6,138,199


877,751








Non-current assets:







Property and equipment, net


183,572


186,185


26,624

Land use right


10,808


10,582


1,513

Operating lease right-of-use assets, net


179,945


142,205


20,335

Intangible assets, net


15,931


21,871


3,128

Goodwill


30,807


30,807


4,405

Total non-current assets


421,063


391,650


56,005

Total assets


6,611,236


6,529,849


933,756








Liabilities







Current liabilities:







Short-term borrowings


311,000


240,000


34,320

Current portion of long-term borrowings 


997


2,305


330

Accounts and notes payable


2,553,396


2,718,941


388,803

Operating lease liabilities


81,379


50,202


7,179

Advance from customers


27,433


27,152


3,883

Accrued expenses and other current
   liabilities


365,333


378,566


54,134

Derivatives


-


8,624


1,232

Total current liabilities


3,339,538


3,425,790


489,881








Non-current liabilities:







Long-term borrowings


38,887


42,651


6,099

Non-current operating lease liabilities


109,096


91,894


13,141

Other non-current liabilities


25,224


28,181


4,030

Total non-current liabilities


173,207


162,726


23,270

Total liabilities


3,512,745


3,588,516


513,151








ZKH Group Limited shareholders' equity:







Ordinary shares (USD0.0000001 par value;
500,000,000,000 and 500,000,000,000 shares
authorized; 5,658,952,794 and 5,682,357,714 shares
issued and 5,601,860,619 and 5,563,528,436 shares
outstanding as of December 31, 2024 and December
31, 2025, respectively)


4


4


1

Additional paid-in capital


8,305,304


8,370,941


1,197,028

Statutory reserves


6,303


6,566


939

Accumulated other comprehensive
   income/(loss)


4,764


(37,288)


(5,332)

Accumulated deficit


(5,177,126)


(5,317,131)


(760,340)

Treasury stock


(40,758)


(81,759)


(11,691)

Total ZKH Group Limited shareholders'
      equity


3,098,491


2,941,333


420,605

Total liabilities and shareholders' deficit


6,611,236


6,529,849


933,756

 

 

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


For the year ended


December 31, 2024


December 31, 2025


December 31, 2024


December 31, 2025


RMB


RMB


US$


RMB


RMB


US$

Net revenues












Net product revenues

2,303,451


2,493,894


356,622


8,449,468


8,766,751


1,253,629

Net service revenues

51,226


49,700


7,107


244,707


171,264


24,490

Other revenues

15,546


13,644


1,951


67,143


49,723


7,110

Total net revenues

2,370,223


2,557,238


365,680


8,761,318


8,987,738


1,285,229

Cost of revenues

(1,965,225)


(2,160,858)


(308,999)


(7,250,847)


(7,512,076)


(1,074,213)













Operating expenses












Fulfillment

(95,066)


(87,647)


(12,533)


(391,687)


(362,173)


(51,790)

Sales and marketing

(151,556)


(152,951)


(21,872)


(641,519)


(585,039)


(83,659)

Research and development   

(41,444)


(44,095)


(6,306)


(169,496)


(165,518)


(23,669)

General and administrative

(149,521)


(139,916)


(20,008)


(646,539)


(576,269)


(82,405)

Loss from operations

(32,589)


(28,229)


(4,038)


(338,770)


(213,337)


(30,507)

Interest and investment income

14,467


11,400


1,630


64,246


50,088


7,162

Interest expense

(2,819)


(2,617)


(374)


(19,003)


(11,350)


(1,623)

Others, net

(7,893)


24,730


3,536


26,497


35,546


5,083

(Loss)/profit before income tax 

(28,834)


5,284


754


(267,030)


(139,053)


(19,885)

Income tax expenses

(268)


(487)


(70)


(1,013)


(689)


(99)

Net (loss)/profit

(29,102)


4,797


684


(268,043)


(139,742)


(19,984)

Less: net income attributable to non-
   controlling interests

-


-


-


-


-


-

Less: net loss attributable to redeemable
   non-controlling interests

-


-


-


-


-


-

Net (loss)/profit attributable to ZKH Group
      Limited

(29,102)


4,797


684


(268,043)


(139,742)


(19,984)

Accretion on preferred shares to
  redemption value

-


-


-


-


-


-

Net (loss)/profit attributable to ZKH Group
      Limited's ordinary shareholders

(29,102)


4,797


684


(268,043)


(139,742)


(19,984)

























Net (loss)/profit

(29,102)


4,797


684


(268,043)


(139,742)


(19,984)

Other comprehensive income/(loss):












Foreign currency translation adjustments

51,569


(20,276)


(2,899)


29,918


(42,052)


(6,013)

Total comprehensive income/(loss)

22,467


(15,479)


(2,215)


(238,125)


(181,794)


(25,997)

Less: comprehensive income attributable
   to non-controlling interests

-


-


-


-


-


-

Less: comprehensive loss attributable to
   redeemable non-controlling interests

-


-


-


-


-


-

Comprehensive income/(loss) attributable 
       to ZKH  Group Limited

22,467


(15,479)


(2,215)


(238,125)


(181,794)


(25,997)

Accretion on Preferred Shares to 
   redemption value

-


-


-


-


-


-

Total comprehensive income/(loss)
        attributable to ZKH Group Limited's
        ordinary shareholders

22,467


(15,479)


(2,215)


(238,125)


(181,794)


(25,997)













Net (loss)/profit per ordinary share attributable
      to ordinary shareholders












Basic

(0.01)


0.00


0.00


(0.05)


(0.02)


(0.00)

Diluted

(0.01)


0.00


0.00


(0.05)


(0.02)


(0.00)

Weighted average number of shares 












Basic

5,713,526,267


5,666,794,694


5,666,794,694


5,736,262,553


5,686,064,402


5,686,064,402

Diluted

5,713,526,267


5,669,349,811


5,669,349,811


5,736,262,553


5,686,064,402


5,686,064,402













Net (loss)/profit per ADS attributable to
      ordinary shareholders












Basic

(0.18)


0.03


0.00


(1.64)


(0.86)


(0.12)

Diluted

(0.18)


0.03


0.00


(1.64)


(0.86)


(0.12)

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












Basic

163,243,608


161,908,420


161,908,420


163,893,216


162,458,983


162,458,983

Diluted

163,243,608


161,981,423


161,981,423


163,893,216


162,458,983


162,458,983

 

 

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


For the year ended


December 31, 2024


December 31, 2025


December 31, 2024


December 31, 2025


RMB


RMB


US$


RMB


RMB


US$

Net (loss)/profit

(29,102)


4,797


684


(268,043)


(139,742)


(19,984)

Income tax expenses

268


487


70


1,013


689


99

Interest expenses

2,819


2,617


374


19,003


11,350


1,623

Depreciation and amortization expense

12,685


11,824


1,691


54,769


48,356


6,915

Non-GAAP EBITDA

(13,330)


19,725


2,819


(193,258)


(79,347)


(11,347)






For the three months ended


For the year ended


December 31, 2024


December 31, 2025


December 31, 2024


December 31, 2025


RMB


RMB


US$


RMB


RMB


US$

Net (loss)/profit

(29,102)


4,797


684


(268,043)


(139,742)


(19,984)

Add: 












Share-based compensation expenses

14,069


10,063


1,440


108,516


53,819


7,695

Non-GAAP adjusted net (loss)/profit

(15,033)


14,860


2,124


(159,527)


(85,923)


(12,289)













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












Basic

(0.00)


0.00


0.00


(0.03)


(0.02)


(0.00)

Diluted

(0.00)


0.00


0.00


(0.03)


(0.02)


(0.00)

Weighted average number of ordinary
      shares












Basic

5,713,526,267


5,666,794,694


5,666,794,694


5,736,262,553


5,686,064,402


5,686,064,402

Diluted

5,713,526,267


5,669,349,811


5,669,349,811


5,736,262,553


5,686,064,402


5,686,064,402

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












Basic

(0.09)


0.09


0.01


(0.97)


(0.53)


(0.08)

Diluted

(0.09)


0.09


0.01


(0.97)


(0.53)


(0.08)

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












Basic

163,243,608


161,908,420


161,908,420


163,893,216


162,458,983


162,458,983

Diluted

163,243,608


161,981,423


161,981,423


163,893,216


162,458,983


162,458,983

 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/zkh-group-limited-announces-fourth-quarter-and-fiscal-year-2025-unaudited-financial-results-302718579.html

SOURCE ZKH Group Limited

FAQ

What were ZKH (NYSE: ZKH) Q4 2025 net revenues and profitability?

ZKH reported Q4 2025 net revenues of RMB2,557.2M and a GAAP net profit of RMB4.8M. According to the company, revenue rose 7.9% year-over-year and operational improvements plus AI adoption drove the return to quarterly profitability.

Why did ZKH's marketplace GMV fall in fiscal 2025 (NYSE: ZKH)?

The marketplace (3P) GMV for fiscal 2025 fell by 33.1% year-over-year. According to the company, this reflected shifts in product mix and strategic platform optimization that reduced marketplace contribution compared with 2024.

How much did ZKH grow its customer base in 2025 (NYSE: ZKH)?

ZKH expanded its customer base substantially, with fiscal 2025 customers rising by 85.6% year-over-year. According to the company, growth was driven by SME expansion, broader product coverage, and enhanced fulfillment capabilities.

What AI initiatives did ZKH (NYSE: ZKH) highlight in the Q4 2025 results?

ZKH reported large-scale AI deployment including a vertical LLM, >5,000 RPAs, and petabyte-scale data assets. According to the company, these drove productivity gains, token usage growth, and commercial impact across recommendation, service and procurement workflows.

How did ZKH's fulfillment costs change in Q4 2025 and why (NYSE: ZKH)?

Through-warehouse fulfillment fees fell about 13% year-over-year in Q4 2025. According to the company, lower warehouse rental costs, network optimization and improved warehousing efficiency reduced fulfillment expenses.