ZKH Group Limited Sponsored ADR (ZKH.US) 2025 Financial Report: Deeply Cultivating Core MRO, Double Turning Point in Scale and Profit, Customer Increase by 85.6% to Record High.

On March 19, ZKH Group Limited Sponsored ADR (ZKH.US), the leading MRO procurement service platform in China, announced its fourth quarter and full-year performance for 2025. The financial report shows that the company's operating performance has stabilized and improved in the second half of the year, successfully turning losses into profits on a quarterly basis. Key financial and operational indicators have reached a turning point, indicating that the company has emerged from a period of phased adjustment and entered a new stage of high-quality growth. Double turning points in scale and profitability In the fourth quarter of 2025, ZKH Group Limited Sponsored ADR achieved a year-on-year growth of 8.5% in GMV to 2.92 billion RMB, and a year-on-year growth of 7.9% in revenue to 2.56 billion RMB. The adjusted net profit reached 14.86 million RMB, achieving a profit at the quarterly level and balancing profits and losses for the half year. The operating quality continues to improve, with net cash flow from operating activities in both the fourth quarter and the full year, further enhancing financial stability and operational flexibility. The company expects the year-on-year growth rate of GMV in the first quarter of 2026 to further increase to double digits. Historic high in customer scale Rapid expansion of customers has become a key driver for growth recovery. In the fourth quarter, the company attracted nearly 74,000 transactional customers, an increase of around 60% year-on-year. The number of customers for the full year exceeded 15,500, an 85.6% year-on-year increase and a record high. In terms of customer structure, both large customers and SME customers maintained growth momentum. ZKH Group Limited Sponsored ADR currently covers over 680 domestic top 1000 manufacturing groups, with GMV year-on-year growth rates of over 20% in key industries such as electrical equipment manufacturing, chemical industry, metallurgy and transportation. State-owned enterprise customers, which were previously affected by business optimization adjustments, also saw significant recovery in this quarter, with GMV growth of over 20% compared to the previous quarter. SME customer growth momentum is strong, with GMV increasing by over 20% in the fourth quarter, mainly benefiting from the continuous expansion of regional service networks, enhanced online digital marketing capabilities, and effective empowerment of AI tools in customer identification and demand matching. In terms of overseas business, ZKH Group Limited Sponsored ADR continues to promote services for Chinese manufacturing companies going global, with a quarter-over-quarter growth of around 50% in related business GMV, a 20% increase in customer numbers, and fulfillment delivery networks expanded to 17 countries. AI scaling becomes a key engine for efficiency improvement The company has launched the MRO industry's first vertical large model "Xingjia Linglong," which has completed record-filings with the National Internet Information Office and entered the stage of large-scale application. The company has achieved multiple breakthroughs in AI applications. At the data base level, the "ZKH Group Limited Sponsored ADR Data Dictionary" has made significant progress, with total data assets reaching the petabyte level, and the current monthly token call volume exceeding 80 billion times. In terms of outsourced services, the "AI Material Steward" has helped nearly 10,000 customers complete over 15 million material classifications. Previously, it took an average of about 15 person-days to classify every thousand materials, but now AI can complete this in about 3 minutes. The "AI Merchandising Brain" has served over 30,000 customers in 2025, generating sales of over 200 million RMB. Internally, the company has deployed over 5,000 RPA digital employees, saving nearly a million hours of manual labor hours. The AI intelligent work platform autonomously completed system operations over 520,000 times throughout the year, leading to a 45% increase in customer service efficiency and a 50% increase in procurement efficiency. Continued deepening of product and supply chain capabilities In terms of supply-side capacity building, as of the end of 2025, the platform's SKU number has reached 23 million, a 33% year-on-year increase, with new products mainly concentrated in areas such as factory automation, chemical reagents, and instrumentation. The business of proprietary brands has maintained steady growth, with GMV of self-owned brands growing by 21% for the full year in 2025, increasing from 6.7% to 8.3% of the overall GMV. In terms of fulfillment networks, the company has formed a multi-level warehousing system consisting of 30 main warehouses and over 100 transfer warehouses, operating over 200 self-owned delivery vehicles. The fourth quarter warehousing fee rate decreased by about 13% year-on-year, achieving double-digit declines for eight consecutive quarters. ZKH Group Limited Sponsored ADR Chairman and CEO Chen Long said, "As the impact of business structure adjustment gradually dissipates, the company has emerged from a period of phased adjustment. In the future, we will continue to build long-term competitive barriers around product strength, delivery capability, and AI capability, driving ZKH Group Limited Sponsored ADR towards a more stable phase of high-quality growth, and striving to achieve the full-year profit target in 2026, developing into a trusted important infrastructure in China's manufacturing MRO procurement field."