ZKH Group Limited reported its first quarterly operating profit on Friday, posting net income of RMB 26.7 million for the second quarter of 2026, a turnaround from a RMB 53.5 million loss in the same period last year. The company also posted its fastest gross merchandise value growth in two years, rising 18.9% year-over-year to RMB 2.9 billion.
Non-GAAP adjusted net profit reached RMB 38.5 million, compared with a loss of RMB 36.5 million in Q2 2025, while non-GAAP EBITDA totaled RMB 41.9 million versus a loss of RMB 38.7 million a year earlier. Gross profit expanded 20.3% to RMB 430 million, lifting gross margin to 17.6% from 16.5% in the prior-year quarter. Net revenue grew 12.8% to RMB 2.4 billion, supported by a 25% increase in private-label product sales, which now account for roughly 10% of total GMV.
Operating expenses declined 0.8% year-over-year to RMB 426 million, with the expense ratio improving by 240 basis points to 17.4% of revenue. Fulfillment, sales and marketing, and research and development costs all decreased as a percentage of revenue, while general and administrative expenses fell to 1.4% from 1.9%.
International GMV surged tenfold in the first half of 2026, though it remains a small share of overall volume. Regional SME customer GMV increased approximately 30% year-over-year. Management guided for full-year GMV growth of 15% to 20%, with Chief Executive Eric Chen noting expectations for more meaningful profitability improvement in the second half of 2026. The company also anticipates international business profitability in H2 2026, driven by customer mix improvements, higher private-label penetration, and efficiency gains.
Cash and equivalents fell to RMB 1.67 billion at the end of June from RMB 1.92 billion at year-end 2025, as operating cash usage totaled RMB 122 million in the quarter. The current ratio stood at 1.77 as of June 30, with total liabilities of RMB 3.61 billion against shareholders' equity of RMB 2.90 billion.
ZKH also highlighted progress on its AI-driven platforms, including the AI Materials Manager, which now serves more than 8,000 users and has processed over 24 million rows of material data. The company plans to launch its Linglong Huiyan industrial vision edge model in October 2026.
