ZKH Group Limited Surpasses Strategic Optimization Milestones as Fourth Quarter Results Show Promising Signs of Stabilization and Growth
The ZKH Group Limited recently reported its fourth quarter and full year 2025 earnings, which have shown promising signs of stabilization and growth. During the conference call, Eric Chen, founder, chairman, and CEO, shared that the company has surpassed strategic optimization milestones.
According to Chen, key accounts now covered over 680 of China's top 1,000 manufacturers with several core industry verticals delivering strong momentum. Specifically, GMV from customers in electrical equipment manufacturing, chemicals, steel, and non-ferrous metals as well as transportation increased by more than 20% year-over-year.
Notably, certain state-owned enterprise (SOE) customers previously affected by strategic optimization showed clear recovery with GMV returning to year-over-year growth and expanding by over 20% sequentially. This suggests that the company's efforts to optimize its operations have started to bear fruit.
In addition, SME customers continue to show strong growth momentum, with GMV increasing by more than 20% year-over-year in the fourth quarter. This growth was primarily driven by the continued expansion of ZKH Group's regional service network, strengthening of digital marketing capabilities, and broader application of AI tools that enhance customer identification, demand matching, and conversion efficiency.
Chen highlighted that beyond reinforcing its growth trajectory, rapid SME expansion also contributes positively to its margin profile. As this segment continues to scale, the company believes it will become an increasingly meaningful driver of both overall growth and margin expansion.
