New York-listed ZKH Group released its earnings report for the first quarter of 2026 before the US market opened on May 21.
According to the report, ZKH’s first-quarter gross merchandise value (GMV), rose 12.9% year-on-year (YoY) to RMB 2.45 billion (USD 359.7 million), its fastest growth rate in recent quarters. Eric Chen, ZKH’s chairman and CEO, said during the earnings call that, based on current order and shipment trends, the company expects GMV growth to accelerate further in the second quarter.
The number of transacting customers rose 11% YoY to 66,000 in the first quarter. The increase reflected continued adoption of online procurement among Chinese manufacturers and provided a base for longer-term growth.
ZKH also reported momentum across customer segments. GMV from small and midsize customers on its platform grew by more than 20% YoY. The company said the segment’s fragmented and diverse procurement needs continued to support demand for its platform-based services. GMV from central state-owned enterprise customers returned to double-digit growth, improving significantly from the same period last year.
The company’s deeper engagement with major industry customers also delivered growth across four key areas: electrical equipment manufacturing, communications and electronics, new energy, and steel and nonferrous metals. GMV from all four grew by more than 20% YoY.
ZKH said it continued to expand its presence in fast-growing fields including semiconductors, energy storage, optical modules, and robotics, with coverage among leading customers reportedly increasing.
Its Gongbangbang, or GBB, platform maintained rapid growth, with GMV rising by more than 30% YoY. Through a standardized e-commerce model, GBB serves downstream distribution customers and small and midsize enterprises. It complements ZKH’s main platform, extends the company’s service reach, and adds another growth driver.
On the financial side, ZKH’s net revenue rose 9.2% YoY to RMB 2.114 billion (USD 310.4 million) in the first quarter. Its overseas business recorded a sharp increase, with first-quarter revenue growing more than sixfold YoY as its customer base and geographic coverage expanded. Management said on the earnings call that ZKH is pursuing a two-pronged overseas strategy: serving Chinese manufacturers as they expand abroad and building a local business presence in the US. In 2026, the company said it will place greater emphasis on investment efficiency, with the goal of reaching full-year breakeven.
ZKH’s first-quarter non-GAAP adjusted net profit improved 103% YoY, and the company achieved non-GAAP adjusted profitability in the first quarter for the first time.
Because the first quarter is typically slower for the MRO (maintenance, repair, and operations) industry, ZKH’s results provide a robust foundation for its 2026 performance.
In terms of cash flow, ZKH’s net cash used in operating activities narrowed significantly from the same period in 2025. The improvement came as the company continued measures introduced over the past several quarters, including customer structure adjustments and efforts to improve operational efficiency.
During the earnings call, Chen said ZKH will continue investing in product, delivery, and artificial intelligence capabilities to strengthen its services and build a more defensible position in complex industrial procurement settings.
On the product side, ZKH is focusing on key industries and highly specialized industrial procurement scenarios while continuing to deepen its product lines. In the first quarter, the company selected ten priority product lines, including factory automation; electrical automation; pumps, pipes, and valves; and cutting tools. It increased investment in these lines and sought to improve competitiveness by strengthening sales and production coordination, consolidating procurement volumes, and improving specialized operational capabilities. The factory automation product line was the clearest example, according to the company. ZKH is also building a digital procurement and technical service platform for the automation industry chain.
As of March 31, the number of SKUs on ZKH’s platform had increased to 27 million from 23 million. Building on that catalog expansion, the company accelerated development of its private-label products. In the first quarter, it reportedly launched more than 400 new products across use cases including personal protection, tools, cleaning, and office supplies. GMV from private-label products grew by more than 20%, with private-label products’ share of total GMV rising to about 9.7%.
On fulfillment, ZKH continued developing its warehousing network and last-mile delivery capabilities, further strengthening its multilayer warehousing system. In the first quarter, the company expanded its self-operated delivery capacity, improving both last-mile delivery coverage and response times.
Following earlier warehouse layout optimization and continued investment in automation equipment, warehouse space productivity rose 36% YoY. Total fulfillment expenses fell 17% YoY in the first quarter, supported by more refined operations across warehousing, transportation, and delivery. Management said further optimization of warehousing operations and capacity scheduling could lower the company’s fulfillment expense ratio.
ZKH is also deploying AI across several business scenarios.
In data infrastructure, ZKH continues to improve its “data dictionary” and industry knowledge graph capabilities, aiming to standardize and upgrade MRO data for specific use cases. This year, the company plans to launch what it described as the industry’s first knowledge graph covering industrial product entries, creating a data foundation for AI applications in industrial product scenarios.
At the model layer, ZKH’s self-developed MRO-focused large language model, Hangjia Linglong, continues to upgrade its multimodal capabilities. The company has also launched Hangjia Huiyan, a visual search engine for industrial products. Using image recognition technology, Hangjia Huiyan can identify material types and specification parameters, combine that information with relevant use cases to infer procurement needs, support product selection, and improve procurement efficiency in complex industrial settings.
At the tools and applications layer, ZKH has built a developer platform and rolled out a companywide digitalization program that enables business teams to develop AI tools independently. In the first quarter, it launched more than 60 AI agents and RPA (robotic process automation) tools, saving more than 2,000 labor hours each month, according to the company. ZKH said the R&D efficiency of its IT team also continued to improve. In 2026, the company aims to raise its AI code generation rate to 80% from 30% currently.
ZKH has built an integrated AI application system covering core business processes including products, sales, operations, and customer service. It has also formed a portfolio of AI agents, including an inquiry and quotation tool, a materials manager, and a product recommender. The company said these tools are beginning to show commercial value.
This article was adapted based on a feature originally written by Stone Jin and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.81 = USD 1 based on estimates as of May 22, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.