Q2 2026 ZKH Group Ltd Earnings Call Transcript
Key Points
- ZKH Group Ltd (ZKH) achieved its first-ever quarterly operating profit, marking a significant financial milestone.
- GMV growth accelerated to 18.9% year-over-year, with expectations for further acceleration in the second half of 2026.
- Gross margin improved to 14.9% of GMV, driven by a favorable customer mix and higher private label contribution.
- International business showed strong momentum, with first-half GMV exceeding RMB95 million, a tenfold year-over-year increase.
- AI initiatives, such as the AI Materials Manager, gained traction, serving over 8,600 customers and generating revenue.
- Operating cash flow remained negative in the first half of 2026, with net outflows of RMB156 million.
- The company's international business is still in early stages, with profitability only expected in the second half of 2026.
- Despite growth, the company's net revenue growth (12.8%) lagged behind GMV growth (18.9%), indicating potential pricing pressure.
- The company's share repurchase program has been slow, with only USD7.67 million utilized out of the USD50 million authorized.
- The company faces intense competition in the fragmented MRO market, requiring continuous investment in capabilities and AI.
Ladies and gentlemen, good day and welcome to ZKH Group Limited second quarter 2026 earnings conference call. Today's conference is being recorded.
At this time, I would like to turn the conference over to [Daecy Xu], Head of Investor Relations. Please go ahead, ma'am.
Good morning, and welcome to ZKH second quarter 2020 earnings conference call. With me are Mr. Eric Chen, our Founder, Chairman and CEO; Mr. Jerry Wang, our CFO; and Mr. David Liu, our CEO.
Eric will begin with an overview of our quarterly performance and business strategy, followed by Jerry, who will review our financial highlights. After the prepared remarks, we will open the call for Q&A, and David will join us for a Q&A session.
Today's discussion may include forward-looking statements. Related factors are described in our today's press release. and we'll also discuss certain non-GAAP financial measures for comparison purposes only. Please refer to the earnings release for definitions of these
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