ZKH Group Ltd. Reports 4% Increase in Q1 2025 Net Revenues, Despite 0.6% Decline in Gross Profit

Reuters
20 May
ZKH Group Ltd. Reports 4% Increase in Q1 2025 Net Revenues, Despite 0.6% Decline in Gross Profit

ZKH Group Ltd., a leading MRO procurement service platform in China, announced its unaudited financial results for the first quarter of 2025. The company reported net revenues of RMB1.935 billion (US$266.7 million), marking a 4.0% increase from RMB1.860 billion in the same period of 2024. This growth was driven by a 6.2% increase in net product revenues, which reached RMB1.885 billion. The ZKH Platform contributed significantly with a 7.4% rise in net product revenues. However, net service revenues and other revenues saw declines of 43.1% and 32.7%, respectively. The gross profit for the quarter slightly decreased by 0.6% to RMB332.1 million, with a gross margin of 17.2%, down from 18.0% in the first quarter of 2024. This reduction was mainly attributed to a lower revenue contribution from the marketplace model, despite improvements in gross margin for the product sales model and an increase in the take rate of the marketplace model. ZKH also witnessed a 30.3% increase in the number of customers, totaling 60,102. The company's international expansion, particularly in the U.S., showed robust progress, with revenue and customer base nearly doubling each month since January 2025. Moving forward, ZKH plans to focus on enhancing its product offerings and supply chain capabilities overseas, alongside integrating digitalization and big data analytics to drive growth and efficiency.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. ZKH Group Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: CN91837) on May 20, 2025, and is solely responsible for the information contained therein.

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