ZKH Group Limited reported second-quarter adjusted earnings of $0.04 per American Depositary Share (ADS), marking the company’s first-ever operating profit, and sent shares up 6.86% in premarket trading.
Revenue for the quarter reached $360.2 million, an increase of 12.8% year-over-year from $302.1 million in the same period last year, while gross merchandise value climbed 18.9% to RMB2.88 billion. The company’s gross profit rose 20.3% to RMB429.6 million, lifting gross margin to 17.6% from 16.5% a year earlier. Operating expenses declined 0.8% to RMB425.6 million, representing 17.4% of net revenues compared with 19.8% in the prior-year period.
Net profit under GAAP totaled RMB26.7 million, a reversal from a net loss of RMB53.5 million in the second quarter of 2025. Non-GAAP adjusted net profit stood at RMB38.5 million, up from a loss of RMB36.5 million in the prior-year period. Operating profit reached RMB4.0 million, compared with an operating loss of RMB72.0 million a year earlier.
The company attributed the turnaround to scale expansion and improved operating leverage. Gross merchandise value growth was driven by a 30% year-over-year increase in the SME segment and continued double-digit gains from key accounts and central state-owned enterprises.
Jerry Qian Wang, Chief Financial Officer, said the quarter represented an important milestone in the company’s earnings trajectory, noting that profitability was supported by stronger operating leverage and deeper market penetration.
