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ZKH Group Limited Reports Q2 2025 Financial Results

ZKH Group Limited, a prominent player in MRO (Maintenance, Repair and Operations) procurement services in China, has shared its unaudited financial outcomes for the second quarter of 2025, ending June 30th. Notably, despite encountering operational challenges traced back to macroeconomic pressures, the organization boasts significant advancements in customer acquisition and operational efficiency.

Operational Highlights

In the second quarter of 2025, ZKH Group witnessed a total Gross Merchandise Volume (GMV) of RMB 2,420 million, marking a decrease of 12.1% from RMB 2,755 million in Q2 2024. This decline was primarily influenced by the comparative high base from the previous year. The first-party sales model contributed RMB 2,134 million to the GMV, while the marketplace model generated RMB 286 million.

Interestingly, customer count surged by 53.5%, reaching 74,854 compared to 48,766 in Q2 2024. The impressive growth was primarily attributed to the GBB platform, which saw a remarkable 160.9% increase in active customers.

Financial Overview

The financial records reveal that net revenues dipped by 3.7%, amounting to RMB 2,167 million against RMB 2,250 million reported the previous year. This slight downturn reflects the adjustments made to optimize low-margin businesses which were affecting profitability.

Moreover, the net loss narrowed to RMB 53.5 million compared to RMB 66.3 million the previous year, demonstrating the company's effective cost management strategies. The management remains optimistic about cultivating high-quality revenue growth, emphasizing the importance of their evolving business model which now prioritizes higher-margin private label products.

Strategic Developments

A significant milestone this quarter was the inauguration of ZKH’s Taicang facility, aimed at improving R&D and production capabilities. This strategic move establishes a foundation for enhanced competitiveness in private-label offerings and bolsters the company’s growth trajectory into international markets.

CEO Eric Long Chen articulated, ‘Our commitment to operational excellence remains steadfast, directing us towards sustainable growth. The establishment of our new strategic hub is pivotal for our service offerings, promising efficiency and quality improvements for our clients.’

Looking Forward

The CFO, Max Chun Chiu Lai, noted that while the company faced challenges in the marketplace model, the transition towards a healthier revenue mix was evident, with improved margins. ZKH remains dedicated to generating sustained value for shareholders, as it strategically navigates the evolving landscape of MRO services.

In conclusion, while the recent financial results showcased some hurdles, they also highlighted ZKH's resilience and commitment to growth. The company stands prepared to enhance its service quality, customer base, and operational functionality as it progresses through 2025.

For those interested, ZKH Group Limited’s management will host a conference call to elaborate further on these results, inviting discussions on operational strategies and future outlooks.