ZKH Group Limited Reports Third Quarter 2025 Financial Results

On November 20, 2025, ZKH Group Limited, a prominent MRO procurement service platform in China, announced its unaudited financial results for the third quarter ending on September 30, 2025. This report uncovers indicative growth trends and strategic advancements that have defined the company's performance in recent months.

Operational and Financial Highlights

The third quarter of 2025 marked an operational recovery for ZKH Group, with the Gross Merchandise Volume (GMV) totaling RMB 2.62 billion. Although this represented a 2.3% decrease compared to Q3 2024, several key metrics have shown significant positive shifts. Among them, the number of customers surged by 48%, reaching 70,800, indicating a robust expansion in the customer base.

Net revenues climbed to RMB 2.33 billion, translating into a 2.1% year-over-year increase. Amidst a competitive MRO landscape, ZKH's strategic enhancements have resulted in a noticeable reduction in operating losses from RMB 105.4 million in Q3 2024 to RMB 32.3 million in Q3 2025, showcasing a disciplined approach to cost management and operational efficiency.

Business Developments and Strategic Investments

Business Momentum

ZKH Group reported that it has entered a phase of recovery after nearly four quarters of strategic optimization. The increase in GMV was noted across large corporations and small- to medium-sized enterprises. The consolidation of central warehouses in Wuxi and Shanghai has contributed to operational efficiency by reducing fulfillment costs by about 13% year-over-year.

Product Capabilities

The recent quarter witnessed a strategic focus on expanding product offerings. Over 2.3 million new SKUs were added, bringing the total count to more than 19 million. Moreover, higher-margin private-label products saw a 16.7% year-over-year growth, now constituting 8.2% of total GMV. This indicates a strong emphasis on the profitability mix which is crucial for future growth.

AI Integration

ZKH has significantly leveraged AI technologies across various operational domains, including material management and sales conversions. The introduction of the ProductRecom Agent generated over RMB 100 million in incremental revenue, highlighting the effectiveness of AI-driven solutions in enhancing business operations.

Looking Forward: Growth Strategies

ZKH’s leadership emphasized commitment to advancing AI applications and enhancing overseas business ventures. The strategic focus remains on building a diverse customer portfolio through strengthened supplier partnerships, creating a robust foundation for sustainable growth. The expansion into international distribution channels, including platforms like Amazon, presents exciting opportunities for ZKH to broaden its market reach.

Financial Performance Insights

ZKH's financial performance demonstrated resilience, with net product revenues increasing to RMB 2.27 billion, up 3% from the previous year. Operating expenses decreased considerably, which is a positive indicator of ZKH’s strategic cost control mechanisms. The net loss also narrowed significantly, reflecting a promising trajectory towards profitability.

The completion of share repurchase programs signals confidence in ZKH's long-term value enhancement strategies, which are expected to resonate positively with investors and market stakeholders alike.

Conclusion

The third quarter of 2025 was marked by pivotal developments for ZKH Group Limited as it navigated challenges and capitalized on growth opportunities. As the company diligently focuses on AI advancements and continuous operational optimization, the coming quarters promise to be critical in solidifying ZKH’s leading position within the competitive MRO landscape in China and globally.