Q2 2025 ZKH Group Ltd Earnings Call Transcript
Key Points
- ZKH Group Ltd (ZKH) achieved a 0.8 percentage point year-over-year increase in gross margin, marking the sixth consecutive quarter of gross margin expansion.
- The company successfully narrowed its net loss by 20% year-over-year to approximately RMB53 million, achieving monthly breakeven in June.
- ZKH Group Ltd (ZKH) reported a 25% year-over-year growth in GMV from private label products, contributing 8.7% to total GMV.
- The company demonstrated strong operational efficiency, with a 48% year-over-year increase in the average number of orders processed per customer service representative.
- ZKH Group Ltd (ZKH) achieved a 260% increase in US revenue in the second quarter compared to the first quarter, indicating strong growth in its overseas business.
- The company's GMV declined by 12.1% year-over-year to RMB2.42 billion, and total revenues decreased by 3.7% to RMB2.17 billion.
- ZKH Group Ltd (ZKH) experienced a significant decline in GMV from SOE and central SOE customers, with a drop of over 50% year-over-year.
- Operating expenses remained high, with fulfillment expenses at RMB90.8 million and sales and marketing expenses at RMB149.3 million.
- The company's loss from operations increased modestly to RMB72 million, despite improvements in other financial metrics.
- ZKH Group Ltd (ZKH) faces challenges in building its brand and reputation in overseas markets, particularly in advanced economies.
Ladies and gentlemen, good day and welcome to ZKH Group Limited second-quarter 2025 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jin Li, Head of Investor Relations. Please go ahead.
Good morning, and welcome to our call today. With me are Mr. Eric Chen, our Founder, Chairman, and CEO; and Max Lai, our CFO.
Today's discussion may include forward-looking statements. Related factors are described in our today's press release. And we will also discuss certain non-GAAP financial measures for comparison focus only. Please refer to the earnings release for definitions of these measures and a reconciliation of GAAP to non-GAAP results.
With that, I will turn the call over to Eric, please go ahead.
(interpreted)
Hello, everyone. Thank you for joining our second-quarter 2025 earnings conference
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