ZKH Group losses narrow sharply on 12.9% surge in industrial marketplace volume

ZKH Group (NYSE:ZKH) reported broad top-line expansion and significant structural improvements in profitability for the first quarter of 2026, driven by a steady influx of enterprise buyers using its digital procurement network.

The Shanghai-based company, which operates China's leading business-to-business platform for maintenance, repair, and operations (MRO) supplies, grew its Gross Merchandise Volume (GMV) by 12.9% year-over-year to RMB2.45 billion ($339.2 million) for the three months ended March 31, 2026.

Total net revenues for the quarter rose 9.2% to RMB2.11 billion, underscoring stable transaction momentum within domestic manufacturing and industrial sectors.

Platform scale was bolstered by healthy customer acquisition trends during the period.

The number of transacting enterprise customers on the marketplace increased 11% to reach 66,742, up from the prior year's first-quarter baseline.

Gross profit for the three-month window advanced 6.6% to RMB354 million, yielding a stable gross profit margin of 16.7%.

Simultaneously, the platform achieved significant progress in tightening its overhead structures, reducing total operating expenses by 8.8% year-over-year.

This combination of volume growth and spending discipline allowed ZKH's operating loss to narrow significantly to RMB22.5 million, while its net loss compressed down to RMB10.1 million.

The operational turn became more apparent across non-GAAP financial measurements.

ZKH posted a positive non-GAAP EBITDA of RMB4.2 million for the first quarter, breaking out of negative territory from the same timeframe last year.

Additionally, the industrial supplier crossed over into positive adjusted results, generating a non-GAAP adjusted net profit of RMB1.7 million.

Elsewhere, management sustained its capital management initiatives alongside the operational improvements.

Under its authorized US$50 million share repurchase program, ZKH bought back approximately 1.48 million American Depositary Shares (ADS) during the quarter.