Gross margin widened 120 bps, cash flow turned positive. The industrial MRO platform added 1,200 customers and raised its full-year outlook to 16-18% growth.
Alpha Score of 49 reflects weak overall profile with poor momentum, strong value, weak quality, weak sentiment.
ZKH Group raised its full-year revenue guidance after second-quarter revenue reached 2.65 billion yuan, up 21% from a year earlier. That acceleration followed 17% growth in the first quarter.
Gross margin widened 120 basis points to 18.4%. CEO Eric Chen said the improvement reflected a richer product mix and better procurement pricing. The industrial MRO platform added 1,200 net new enterprise customers in the quarter, bringing the total to 14,800. Average spending per active customer rose 8% from a year earlier.
“We are seeing manufacturing clients upgrade from spot buying to contract-based procurement, which locks in volume for longer periods,” Chen said on the earnings call.
Operating cash flow turned positive at 120 million yuan. CFO Jerry Wang contrasted that with a 40 million yuan outflow in the same period a year earlier. Days sales outstanding fell to 38 from 44. Wang attributed the improvement to tighter inventory management and a shift toward faster-paying segments.
Selling and marketing expenses rose 14%, slower than revenue growth. The company leaned on its digital catalog tools rather than new sales headcount to reach buyers. Research and development spending held flat at 4.2% of revenue.
Non-GAAP net income was 18 million yuan, reversing a 6 million yuan loss in the year-ago quarter. GAAP net income swung to 2 million yuan from a 15 million yuan loss.
The company now expects full-year revenue growth of 16% to 18%, up from an earlier range of 14% to 16%. For the third quarter, ZKH guided revenue of 2.7 billion to 2.75 billion yuan, implying growth of 17% to 19% from a year earlier.
Chen argued that ZKH's focus on industrial-grade specifications and same-day delivery for factory-floor parts creates a moat against generalist e-commerce rivals such as JD Industrial and Alibaba's 1688 platform. “A missing bolt on a production line costs more than the bolt. Our logistics partners understand that,” he said.
The stock has risen 14% since the company's first-quarter results in May, outperforming the broader China technology index by roughly 10 percentage points over the same stretch.
ZKH ended the quarter with 1.1 billion yuan in cash and short-term investments. The company carries no bank debt.
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