Q3 2025 ZKH Group Ltd Earnings Call Transcript
Key Points
- The number of transacting customers exceeded 70,000, reaching a new quarterly high, indicating strong customer engagement.
- Gross margin continued its upward trend, contributing to improved profitability.
- Operating expenses were reduced by 14% year-over-year, enhancing operational efficiency.
- The company achieved monthly breakeven in September and is on track for quarterly profitability in the fourth quarter.
- AI integration has significantly improved operational efficiency, with customer service productivity increasing by 42% and procurement productivity by 52% year-over-year.
- GMV decreased by 2.3% year-over-year, indicating some challenges in maintaining sales volume.
- Despite improvements, the company still reported an adjusted net loss of RMB14 million for the quarter.
- Gross margin for product sales on the ZKH Platform slightly decreased compared to the previous year.
- The company is still in the process of balancing profitability with long-term growth investments, which may delay consistent profitability.
- Overseas expansion, particularly in the U.S., is expected to be a mid- to long-term play, requiring controlled investment and patience.
Ladies and gentlemen, good day, and welcome to ZKH Group Limited third-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 third-quarter earnings conference call. 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 purpose 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. Eric, please go ahead.
(interpreted) Hello, everyone. Thank you for joining the Third Quarter 2025
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