Operator: Ladies and gentlemen, good day and welcome to ZKH Group Limited second quarter 2026 earnings conference call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Daisy Xu, Head of Investor Relations. Please go ahead, ma’am.

Daisy Xu, Head of Investor Relations, ZKH Group Limited: Good morning and welcome to ZKH second quarter 2026 earnings conference call. With me are Mr. Eric Chen, our founder, Chairman and CEO, Mr. Jerry Wang, our CFO, and Mr. David Liu, our CTO. Eric will begin with an overview of our quarterly performance and business strategy, followed by Jerry, who will review our financial highlights. After the prepared remarks, we will open the call for Q&A, and David will join us for the Q&A session. Today’s discussion may include forward-looking statements. Related factors are described in our today’s press release, and we will also discuss certain non-GAAP financial measures for comparison purposes only. Please refer to the earning release for definitions of these measures and a reconciliation of GAAP to non-GAAP results. With that, I will turn the call over to Eric. Eric, please go ahead.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 好的。大家好，欢迎各位参加震坤行2026年第二季度业绩发布会。本季度我们延续年初以来良好的发展势头，整体经营表现持续改善。从去年四季度重拾增长以来，我们的GMV和收入已连续第三个季度实现同比增长，且二季度的增速创近几个季度以来的新高。同时，重点行业与核心客户群体表现稳健，业务增长基础进一步夯实。在业务规模持续扩大的同时，我们的增长质量和盈利能力也在同步改善。二季度毛利额的同比增长高于GMV，毛利率同比和环比均有所提升。随着规模效应进一步释放，客户和产品结构持续优化以及运营效率稳步提升，公司首次实现季度经营利润转正，且经营调整净利润也较去年同期实现显著的扭亏为盈。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Hello everyone, thank you for joining ZKH’s second quarter 2026 earnings call. Building on the strong start to the year, our business gained further momentum in the second quarter, extending the growth trajectory that we returned to in the fourth quarter of last year. Both GMV and revenue grew year-over-year for a third consecutive quarter, hosting their fastest growth in recent quarters. Growth was brought by pace with our key industries and core customer segments, further reinforcing our foundation for sustained growth. As our business continued to scale, the quality of growth and profitability improved in tandem. Growth profit grew faster than GMV in the quarter, lifting growth margin both year-over-year and sequentially. Supported by greater economies of scale, a more favorable customer and product mix, and steady gains in operating efficiency, we achieved quarterly operating profitability for the first time.

Adjusted net income also delivered a significant turnaround, reversing from a loss in the same period last year.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 本季度的良好表现进一步巩固了公司基本面持续向好的态势，也体现了前期战略布局和能力建设正在加快转化为经营成果。基于当前业务的积极趋势，我们预计下半年公司GMV增速有望进一步加快，盈利将得到更大规模的释放。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: These results reinforce the steady improvement in our fundamentals and demonstrate that our strategic initiatives and capability building efforts are translating more quickly into operating results. Based on current business trends, we expect GMV growth to accelerate further in the second half of the year, with profitability improving more meaningfully.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 接下来我将重点介绍一下我们在业务层面的主要进展。二季度公司GMV同比增长19%，其中正宽平台GMV同比增长23%，增速较一季度进一步加快。按目前趋势来看，三季度GMV增长有望较二季度实现进一步的加速。从客户维度来看，季度内多个客户群体协同发力，增长格局更加均衡。其中区域中小客延续去年四季度以来的强劲表现，GMV同比增长达30%，体现了公司在中小企业市场覆盖和服务能力的持续提升。中小企业市场空间广阔，客户需求往往更分散，采购场景也更多元，毛利率也相对较高。这一客户群的快速发展，不仅为公司注入了更强的增长动能，也有助于优化客户结构，改善整体毛利率水平。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Next, let me walk you through some of the business highlights in the quarter. Starting with GMV. Second quarter GMV grew by 19% year-over-year, while GMV on the ZKH platform increased by 23%, accelerating further from the first quarter. Based on current trends, we expect GMV growth to pick up further in the third quarter. Multiple customer segments drove growth in tandem this quarter, creating a more balanced growth profile. Regional SME customers maintained the strong momentum that began in the fourth quarter of last year, with GMV up 30% year-over-year, reflecting continued improvements in our coverage of and service capabilities for the SME market. The SME market offers significant growth potential. Demand is fragmented, procurement needs are diverse, and gross margins are higher. Rapid expansion in this segment not only adds momentum to our overall growth, but also improves our customer mix and overall gross margin.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 同时央企和行业大客户保持稳健，GMV实现双位数的同比增长。尤其国央企企业在经过去年的调整后，重新实现了季度GMV同比增长突破20%。从行业维度来看，公司围绕不同工业场景长期沉淀的专业化产品与服务能力正在获得丰收，带动多个重点行业实现较快增长。其中钢铁有色表现尤为亮眼，GMV同比翻番。通信、电子、精细化工及医药、公共事业等行业GMV同比增幅也均超过30%。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Meanwhile, our business with central SOEs and industry key accounts remained solid, delivering double-digit GMV growth year-over-year. Notably, following adjustments last year, GMV from state-owned enterprises, including centrally administered SOEs, returned to growth of more than 20% year-over-year this quarter. Performance was also strong across key industries. Our specialized product and service capabilities, built over years of serving a wide range of industrial use cases, are increasingly translating into strong results. Steel and ferrous metals led the way, with GMV doubling year-over-year. Communications and electronics, fine chemicals and pharmaceuticals and utilities also delivered strong growth, with GMV in each sector increasing by more than 30% year-over-year.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 在持续深耕国内业务的同时，我们海外布局较一季度进一步加速。上半年GMV实现了超过10倍的同比增长。季度内我们继续沿着伴随中国制造业出海和深化海外本土经营两条路径推进。一方面，我们围绕中国制造企业的出海需求，提供覆盖境内外产品供应协同、合规支持及本地履约的一站式解决方案。另一方面，我们不断完善海外本地化能力建设，首先聚焦仓储供应链MRO场景，业务模式已得到验证。此外，Northsky平台自有品牌已在亚马逊为主的线上渠道起量，尤其在搬运叉车、工业风扇等细分产品取得了相当不错的销售进展和客户认可。我们围绕重点品类建立了境内外双源供应体系，进一步增强了海外供应链韧性。随着各项布局逐步落地，我们的海外业务已从前期的市场探索迈入能力积累与业务拓展并进的新阶段，未来的发展路径也更加清晰。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: While we continued to deepen our domestic business, our overseas expansion accelerated further from the first quarter, with first half GMV increasing more than tenfold year-over-year. During the quarter, we continued to advance our international business on two fronts: supporting Chinese manufacturers as they expand globally and deepening localized operations in key overseas markets. On the first front, we provide Chinese manufacturers expanding overseas with one-stop MRO solutions spanning coordinated product sourcing in China and abroad, compliance support and local fulfillment. On the second front, we continued to build out our localized operations, starting with MRO use cases in warehousing and supply chains, where our business model has been validated. Our Northsky private label products also gained traction through online channels, primarily Amazon, with categories such as material handling forklifts and industrial fans delivering encouraging sales and earning strong customer recognition.

We also established a dual sourcing system for key product categories with sources in China and overseas, further strengthening the resilience of our international supply chain. As these initiatives take hold, our overseas business is moving beyond early market exploration into a new stage in which capability building and business expansion are advancing in parallel with an increasingly clear path forward.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 公司各项业务取得的积极进展，离不开核心能力的持续积累。本季度，我们继续围绕产品力、交付力和AI三方面深化能力建设，为公司的可持续发展筑牢根基。首先，产品力方面，我们继续深化硬核MRO品类布局，并通过加强与头部原厂的合作，持续提升专业品类的服务深度和差异化优势。本季度，得益于品类深耕和行业聚焦策略的兑现，公司电气自动化业务实现1.6倍高速增长。品类端，我们围绕客户智能产线控制、安全、传感互联全链路需求，重点做深传感器、PLC、工业安全、工业物联网及机器人等产品，形成完整的自动化产品矩阵。行业端，我们前瞻性布局新能源、半导体及通讯电子三大高自动化密集赛道，精准承接其产能扩张与产线智能化升级需求，尤其高景气度的半导体行业客户的同比增速达百倍量级。同时，公司联合英特尔针对边缘控制领域持续加码视觉检测与工业控制产品解决方案，培育继控制、安全、传感之后的下一个增长曲线。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: The progress we achieved across our businesses was underpinned by the continued strengthening of our core capabilities. During the quarter, we remained focused on three areas central to our long-term competitiveness: products, fulfillment and AIs. Starting with products, we continue to deepen our presence in specialized high-barrier MRO categories and strengthen collaborations with leading manufacturers. These efforts enhanced the depth of our services in specialized categories and further differentiated our offerings. During the quarter, GMV from electrical automation customers grew 160% year-over-year, driven by our strategy of focusing on key product categories and high-potential industries. To address customers’ end-to-end needs across control, safety, sensing, and connectivity for intelligent production lines, we deepened our offerings in sensors, PLCs, industrial safety, industrial IoT, and robotics, forming a comprehensive automation product portfolio.

At the industry level, we positioned ourselves early in three sectors with high automation intensity: new energy, semiconductors, and communications and electronics. This enabled us to capture growing demand arising from capacity expansion and intelligent product line upgrades. Growth among semiconductor customers was particularly strong, with GMV up more than 100-fold year-over-year. We also expanded our collaboration with Intel in edge control, jointly advancing visual inspection and industrial control product solutions as we cultivate our next growth curve beyond control, safety, and sensing.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 其次，自有品牌是我们持续提升差异化竞争力和盈利能力的重要抓手。本季度，我们新增加超过700个自有品牌SKU，带动自有品牌GMV同比增长超过25%，GMV占比升至约10%，在贡献增量收入的同时，也推动了整体毛利率的改善。随着自有品牌产品矩阵的丰富，我们也持续完善从产品开发到测试验证的体系化能力。目前，我们的自助测试体系已覆盖多条核心产线，围绕性能、安全合规和可靠性等关键环节开展验证，进一步强化了产品的研发效率和质量稳定性，为自有品牌的规模化发展提供有力支撑。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Meanwhile, our private label business is an important driver of both competitive differentiation and profitability. During the quarter, we added more than 700 private label SKUs, driving private label GMV growth up more than 25% year-over-year, and lifting private label products’ share of total GMV to approximately 10%. In addition to contributing incremental revenue, this also improved our overall gross margin. As we broaden the portfolio, we are also building out end-to-end capabilities from product development through testing and validation. Our in-house testing system now covers multiple core product lines with rigorous validation across performance, safety, compliance, and reliability. These capabilities further improve product development efficiencies and quality consistency, providing strong support for scaling our private label business.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 在履约侧，我们进一步优化多层级仓网运营体系，并持续提升专业品类的供给能力和客户体验。本季度，河北沧州危险品仓完成筹建，进一步增强了我们在危化品领域的合规仓储和供应保障能力。截至季度末，我们的全国履约网络涵盖30多个配送中心、109个中转仓，及超过200辆自营配送车，并在客户生产现场部署超过6,000台EVM智能小仓库，不断强化从区域备货、末端配送到现场按需领用的端到端履约能力。在网络覆盖持续深化的同时，我们进一步提升仓储运营和运力调度效率，推动经营杠杆进一步改善。履约费率从去年同期的4.2%下降到3.7%。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Turning to fulfillment. We continue to optimize our multi-tiered warehousing and distribution network while enhancing supply capabilities and customer experience in specialized MRO categories. During the quarter, we completed the build out of a dedicated hazardous materials warehouse in Cangzhou, Hebei Province, further strengthening our compliance, storage and supply assurance capabilities for hazardous chemicals. As of quarter end, our nationwide fulfillment network comprised more than 30 distribution centers, 109 transit warehouses, more than 200 company-operated delivery vehicles, and more than 6,000 EVM smart vending machines deployed at customer production sites. This integrated network strengthens our end-to-end fulfillment capabilities for regional inventory deployment and last mile delivery to on-site, on-demand product access. As we expanded our network coverage, we also improved warehouse operations and transportation scheduling, further improving operating leverage. In the quarter, fulfillment expenses as a percentage of net revenues declined to 3.7% from 4.2% a year ago.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 在AI与数字化方面，我们继续围绕打造工业用品行业领先的全栈式AI能力这一方向，持续推进体系化建设，同时深化AI在内外部业务场景中的应用落地，将积累的行业数据和技术优势加速转化为切实的客户价值和业务经营成果。6月份，我们正式发布多米诺工业用品大数据引擎，该引擎覆盖10亿级商品参数，具备自动标注、持续学习和全链路溯源等能力，为客户开展工业用品数据治理、模型训练以及智能化应用提供高质量的数据基础。通过这一平台，我们进一步释放工业用品数据价值，推动系统内部资源进一步升级为可对外输出的产业基础设施。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: We also made solid progress on the AI and digitalization front, guided by our goal of building industry leading full stack AI capabilities for industrial supplies. We continue to strengthen our technology stack and expand AI adoption across customer facing and internal use cases. These efforts are accelerating the conversion of our extensive industry data and technological expertise into tangible customer value and operating results. A key milestone this quarter was the June launch of Domino, our industrial supplies big data engine. Powered by more than 1 billion product parameters, Domino features automated data labeling, self-learning, and end-to-end traceability. This provides customers with a high quality data foundation for MRO data governance, model training, and intelligent applications. Through this platform, we are further unlocking the value of MRO data and enabling it to evolve from an internal resource to industry infrastructure that can be offered externally.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 在此基础上，我们持续拓展行家玲珑行业大模型和智能体智能体系阵的应用场景，加快AI与客户业务流程的深度融合。目前，AI物料管家、玲珑汇搜、玲珑汇眼以及AI商城等产品已在制造、化工、港口、汽车等多个行业实现应用，覆盖物料治理、商品搜索与选型、企业知识协同及仓储识货等关键环节。其中，AI物料管家已服务超过8,600家客户，落地超过15个国央企案例，累计完成2,400万行物料治理，有效帮助客户提升物料管理效率，降低库存成本。内部运营方面，我们继续推进AI在组织和业务流程中的规模化应用，进一步提升运营效率。季度内，公司内部AI应用累计节省工时超过1.2万小时，AI辅助编程占比超过70%。同时，我们积极鼓励业务团队参与AI应用创新和场景共建。目前已有22个一级部门，超过200名员工参与AI应用共创，推动AI能力在更多业务环节落地。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Building on this foundation, we continued to expand the use cases for our Linglong MRO industry specific foundation model and its suite of AI agents, integrating AI more deeply into customers’ business processes. Today, solutions such as AI Materials Manager, Linglong Huisou, Linglong Huiyan, and AI Marketplace are already deployed across manufacturing, chemicals, ports, and automotive, covering key workflows such as materials data governance, product search and selection, enterprise knowledge management and collaboration, and warehouse item recognition. Notably, AI Materials Manager has served more than 8,600 customers and has been implemented in more than 15 cases involving state-owned enterprises, including centrally administered SOEs. To date, it has processed more than 24 million rows of materials data, helping customers streamline materials management and reduce inventory costs. Internally, we continue to scale AI adoption across our organization and business processes to improve operating efficiency.

During the quarter, internal AI applications saved more than 12,000 employee hours, and AI-assisted coding accounted for over 70% of our coding activity. We also continue to encourage business teams to participate in AI innovation and the co-development of new use cases. More than 200 employees across 22 departments are now actively involved, bringing AI capabilities into a growing range of new business processes.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 在持续强化自身能力的同时，我们也在积极参与行业生态建设。六月份，我们联合多家全国性行业协会及产业机构，共同举办首届CISS工业用品大会。作为国内首个聚焦产业协同与价值创新的工业用品行业峰会，本次大会参加者超过2000人，参会企业超过1000家，汇聚众多行业领袖、企业高管及产业链专家，参会规模与嘉宾层级均创行业纪录。此次大会进一步提升了震坤行的行业影响力，也为我们深化与产业链各方面的合作提供了重要平台。未来，我们将继续发挥平台优势，促进产业知识共享与上下游协同，为产业链的长期发展创造更大价值。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Beyond strengthening our own capabilities, we are also actively contributing to the broader industry ecosystem. In June, we co-hosted the inaugural China Industrial Supplies Summit, or CISS, with several national trade associations and industry organizations. As China’s first MRO industry summit focused on collaboration and value creation, the event brought together more than 2,000 attendees from over 1,000 companies, including many industry leaders, senior executives, and experts from across the value chain. The event set industry records for both attendance and the seniority of its guests. Its success further enhanced ZKH’s influence within the industry and provided an important platform for deeper engagement with key stakeholders. Going forward, we will continue to leverage our platform strengths to promote knowledge sharing and coordination across the value chain, creating greater long-term value for the industry as a whole.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 展望下半年，我们将继续专注于核心能力的建设，包括持续提升产品供应能力、履约效率、加强团队建设，这些都是企业长久竞争力的基石，将为我们业务规模的持续增长和盈利进一步释放打下扎实的基础。下面我将把电话交给我们的CFO杰瑞王，为大家详细介绍公司的财务表现。谢谢大家。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Looking ahead to the second half, we will remain focused on strengthening our core competencies, including enhancing product supply capabilities, improving fulfillment efficiency, and building greater organizational strengths. These are the cornerstones of our long-term competitiveness and will lay a solid foundation for sustained growth in business scale and further improvements in profitability. With that, I will turn the call over to our CFO, Jerry Wang, to walk you through our financial results. Thank you.

Jerry Wang, Chief Financial Officer (CFO), ZKH Group Limited: Okay. Thank you, Eric, and thank you everyone for joining our earnings conference call today. Now let me walk you through our financial performance for the second quarter of 2026. Building on a strong start to the year, we delivered continued improvement across key financial metrics in the second quarter. GMV growth accelerated to its fastest pace in the past few quarters, while our gross profit margin expanded even further. As operating leverage became increasingly evident, our profitability also improved significantly. Notably, we achieved operating profitability for the first time, marking an important financial milestone for the company. Together, these results demonstrate our ability to maintain growth momentum while improving operational quality, supported by the increasing benefits of scale and the disciplined execution of our strategic priorities. Let’s now take a closer look at the second quarter financial performance, starting with GMV and revenue.

The growth recoveries that began in the second half of last year gained further momentum in the second quarter, with GMV and revenue posting accelerated year-over-year growth. GMV increased 18.9% year-over-year to CNY 2.9 billion, while net revenues grew 12.8% to CNY 2.4 billion, representing the fastest growth for both metrics in recent quarters. This strong performance was primarily driven by robust growth among SME customers and key accounts across our core industries, along with a continued recovery in business with central SOEs. As GMV growth accelerated, gross profit grew even faster, increasing 20.3% year-over-year from CNY 357 million to CNY 430 million. As a result, gross profit as a percentage of GMV edged up to 14.9%, compared with 14.8% in the same period last year and 14.4% in the first quarter of 2026.

This improvement reflected the continued optimization of our customer and product mix, as well as the increasing GMV contribution from private label offerings. Driven by improved operating leverage and operating efficiency, total operating expenses decreased 0.8% year-over-year to RMB 425 million in the quarter. Operating expenses as a percentage of net revenues improved notably, declining from 19.8% in the same period last year to 17.4%. Breaking it down, fulfillment expenses were RMB 90 million, representing 3.7% of net revenues, down from 4.2% in the same period last year. Sales and marketing expenses were RMB 151 million, representing 6.2% of net revenues, down from 6.9% in the same period last year. R&D expenses were RMB 35 million, representing 1.4% of net revenues, down from 1.9% in the same period last year.

General and administrative expenses were RMB 150 million, representing 6.1% of net revenues, down from 6.8% in the same period last year. Looking ahead, we expect GMV and revenue growth to accelerate further in the second half of the year. Combined with our continued focus on operating efficiency, this should drive further improvements in our operating expense ratios and strengthen our operating leverage. On the international front, as we noted previously, overseas expansion remains an important long-term strategic priority for the company. In the first half of this year, international GMV exceeded RMB 95 million, marking a significant step up in scale. As we continue to grow this business, we remain disciplined in managing expenses and focused on return on investment. Going forward, we expect our international business to turn profitable in the second half of this year.

Our faster GMV growth, improving operating efficiency, and a greater operating leverage drove a significant year-over-year improvement in profitability. In the second quarter, our operating profit, non-GAAP EBITDA, and non-GAAP adjusted net profit all turned positive. In particular, non-GAAP EBITDA reached RMB 42 million, compared with negative RMB 39 million in the same period last year. While non-GAAP adjusted net profit reached RMB 39 million, compared with negative RMB 37 million a year ago. Turning to our balance sheet, we continued to maintain a solid liquidity position. As of June 30th, 2026, cash and cash equivalents, restricted cash, and short-term investments totaled RMB 1.7 billion, providing ample financial flexibility to support our day-to-day operations and strategic priorities.

Operating cash flow followed a seasonal pattern that is similar to last year, with net outflows in the first half and net inflows in the second half as customer collections accelerate. For the first half of 2026, net cash used in operating activities decreased to RMB 156 million from RMB 208 million in the first half of 2025, reflecting continued improvement in our working capital management. To conclude, the second quarter of 2026 marked an important financial milestone for the company as we achieved positive operating profit for the first time and delivered a significant improvement in non-GAAP adjusted net profit. Based on current trends, we expect to maintain heightened GMV growth in the second half of the year, while continuing to improve profitability. This should put us in a solid position to achieve our full year business and profitability targets, and lay a solid foundation for even stronger performance in 2027.

Okay, this concludes our prepared remarks. Thank you. We can now open for Q&A.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. For the benefit of all participants on today’s call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. The first question comes from Jing Wan with CICC. Please go ahead.

Jing Wan, Analyst, CICC: 管理层晚上好。首先恭喜这个季度取得了不错的业绩，然后我的问题是关于我们的top line的。我们看到这个季度公司的GMV增速还是比较快的，同比增长18.9%，然后也是过去几个季度最快的增长。想请问一下管理层增长背后的驱动因素是什么？然后详细一点说的话，哪些子行业客户或者产品的景气度比较高？对于下半年以及全年的GMV增速，管理层是如何展望的？我快速翻译一下。Good evening management.

We noticed that the company’s GMV growth accelerated to around 80% this quarter year-over-year. Could management walk us through the key drivers behind this acceleration and which subsectors, customer segments or product line are seeing stronger momentum? What is your outlook for GMV growth in the second half and full year? Thanks.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 好的，谢谢。2024年二季度公司GMV增速较过去几个季度进一步加快，是我们在中国高度分散的MRO市场持续赢得市场份额的印证。我们可以从行业、客户和自有品牌产品三个维度来看。一，首先我们持续布局快速增长的高景气度行业。二季度GMV增速超过30%的行业包括钢铁有色。这个钢铁有色主要是指有色金属行业，增长了103%。公用事业增长了57%，精细化工和医药增长了37%，食品农副增长了37%，通信电子增长了35%。同时，公司在一些战略新兴行业，比如半导体、机器人、光通信等产业领域持续拓展客户资源。请翻译。

Jerry Wang, Chief Financial Officer (CFO), ZKH Group Limited: Thank you very much for that question. Indeed, we achieved acceleration in terms of our GMV growth in the second quarter 2026, and it is faster than any past quarters. This goes to show how we are gaining share in this highly fragmented MRO market in China. We can approach this question from three perspectives, namely industries, customers and private labels. Firstly, let us talk about industries. We have been continually investing in high growth industries. The following are some of the industries that have been growing over 30% in Q2 this year from a GMV perspective. They are steel and non-ferric metals, primarily non-ferric metals are growing at over 103%. Utilities grew 57%, fine chemicals and pharmaceuticals grew 37%, food and agricultural products 37%, communication and electronics 35%.

And we have also been consistently gaining customers from emerging and strategic industries such as semiconductors, robotics and optical communications. [Foreign language].

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 其次，关于客户的组合区域中小客户。我们这里讲的中小客户主要是指体量在10亿规模左右的客户，相比较央国企、行业那些大客户，我们在这里定义是中小客户。中小客户是第二季度的一大亮点，GMV增速达到了30%。我们预期该部分客户将会持续维持超过公司大盘的GMV增速。如我们先前所说，该部分客户的持续渗透更能体现震坤行产品和服务能力的提升。一方面是客户对服务的要求越来越高，传统贸易公司被淘汰；另一方面，是从销售驱动转向供应驱动。也就是我们原来是客户要什么，我们提供什么，对吧？我们去找货、组货。现在呢，我们更有能力，因为产品能力的提升，客户根据我们已经有的产品来选择购买，这样效率就会得到极大的提升。与此同时，中小客户的毛利率要比大客户来得高。所以中小客户的增长比大盘更快，有利于公司整体毛利率的趋势。此外，中小客户往往在城市边缘，履约交付也更为方便。目前我们中小客户GMV占比约30%，大客户，这个大客户包括行业的头部客户和这些央国企客户，GMV占比约60%。未来我们预计中小客户的占比会进一步提升。请翻译。

Jerry Wang, Chief Financial Officer (CFO), ZKH Group Limited: Secondly, in terms of our customer mix, I would like to talk about how we perform on the SME customers front. Just to clarify the definition of what we mean by an SME customer. We are talking about a customer with a revenue of over CNY 1 billion. So it is not technically a small customer or a small company, right? But relatively speaking, it is small compared to some of the large guys or central and local SOEs. A big highlight of Q2 is that the GMV for these SMEs have reached 30%. The GMV growth for this segment is outperforming the company’s overall GMV growth.

Like discussed earlier, we believe this type of customers can reflect the improvement of the product and service capabilities of ZKH more than any other types of customers, because these customers are getting increasingly demanding in terms of their requirements for services. As a result, traditional and conventional trading companies are being eliminated. Secondly, our business is evolving from sales-driven to supply-driven or supply chain-driven. I will explain what I mean by this. Before we were basically selling whatever the customers wanted and demanded, right? But now, with the capabilities of our product improving, we are more in a position to sell what we recommend and what is available on our part. That is definitely a huge increase in terms of efficiency and productivity. At the same time, the gross margins on the part of the SMEs are higher than large customers.

The growth of SMEs outstripping the overall company is definitely conducive to the improvement of our overall gross margins. These SMEs are usually located in the outskirts of cities, which means delivery and fulfillment for them is easier. GMV wise, these SME customers are accounting for about 30% of total GMV, while large customers, and by large customers, I mean key accounts or leading companies of various sectors and those SOEs. These larger customers account for 60% GMV wise, and we expect SME GMV share to continue to rise in the future. [Foreign language].

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 最后是关于自有品牌。第二季度我们自有品牌同比增速超过了25%，增速较整体更快一些，GMV占比达到了10%，继续向着长期目标30%迈进。自有品牌的毛利率比非自有品牌来得高一些，大约高10%。所以自有品牌占比趋势也会正面影响整体毛利率的趋势。请翻译。

Jerry Wang, Chief Financial Officer (CFO), ZKH Group Limited: Thirdly, my last point is on private labels. For Q2, private labels achieved a growth of over 25%, outstripping overall growth. Its GMV share has reached 10%, marching towards our long term goal of 30% for it. The gross margins for private labels are higher than non-private labels. It is usually 10% higher. This trend of private labels as a share of overall GMV increasing will also be conducive to the overall gross margins improving. [Foreign language].

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 关于下半年和全年的GMV增速的预期，从目前的7到8月份至今的订单趋势来看，我们预计三季度的GMV增速会比第二季度的18.9%有进一步加快的趋势。而四季度，尤其是12月，一般是全年订单高峰，所以我们有信心目前的增速能得以维持，并达成全年GMV 15%到20%的增长目标。我所有的问题都回答完毕，谢谢。

Jerry Wang, Chief Financial Officer (CFO), ZKH Group Limited: Looking out to the second half of this year and the entire year’s GMV. If you look at the order trend, July, August this year, we expect GMV growth for Q3 is going to be higher than Q2’s 18.9%, so it is going to continue to accelerate. Q4, especially the month of December, is a peak month or peak quarter for orders throughout the year. We are confident that we are able to sustain this growth and be able to achieve our overall growth of 15%-20% of growth for GMV this year. That was my answer to your question. Thank you.

Operator: Thank you. [Foreign language], thank you. Thank you. The next question comes from Zhuoming Zhao, with Huatai Securities. Please go ahead.

Zhuoming Zhao, Analyst, Huatai Securities: 感谢关先生给我提问的机会。我的问题主要是关于AI相关的几个小问题。那在AI浪潮的这样一个大背景下，不同类型的客户的采购行为和习惯是否有发生一些边际变化？那我们将如何针对相关的机会去抓住这一个机遇呢？另外，此前推出的AI相关应用，比如AI物料管家，最近是否有一些更多的进展可以分享？那最后关于之前咱们有提到过的AI子公司设立的进展情况，目前大概是一个什么样的规划，那后续的节奏大概会是怎么样的一个情况？谢谢。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Question, against the backdrop of ongoing AI wave, have you observed any incremental changes in purchasing behavior and habits of different customer groups? How will ZKH capture the opportunities? Have AI applications launched previously, such as the AI Materials Manager, made further progress recently? In addition, what is the latest progress on establishing the AI subsidiary as alluded to earlier?

David Liu, Chief Technology Officer (CTO), ZKH Group Limited: 好，我来回答这个问题，我是震坤行的CTO。我们确实观察到随着AI技术的普及，客户的采购行为出现了一些边际的变化，主要有三个潜在的趋势。第一个趋势，有需求表达的习惯和采购入口的变化。过去工业品采购更多依赖于传统的搜索、目录筛选或者人工询价。那现在呢，越来越多的从业者第一反应是用自然语言直接描述需求，甚至于把设备型号、使用场景、技术参数直接交给AI，希望由AI来帮助他完成需求澄清、选型和商品推荐。那第二个趋势，就是企业对于高质量数据的需求在明显的提升。那随着AI真正进入采购决策流程，其中一个必要的前提就是商品参数、规格、替代关系、配套使用关系等等，这些关键的数据要足够的准确。所以我们认为，AI时代的高质量、结构化、专业化的数据将变得至关重要。第三个趋势，企业，尤其是中小企业，对于更加自助化、智能化采购方式的接受度在提高。未来相当一部分标准化的工作有机会由AI来完成，在降低服务成本的同时提升客户体验。请帮我翻译。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: This is the CTO of the company, and I will take this question. Indeed, we have observed some incremental changes in customer purchasing behavior as AI applications gradually mature. We observed three trends that are quite notable. First, customers are changing how they express their needs and access procurement services. In the past, MRO products procurement relied primarily on keyword searches, catalog filters, or manual requests for quotations. Increasingly, customers are becoming accustomed to describing their requirements directly in a natural language. Some provide AI systems with equipment models, use cases, and technical specifications, and expect the systems to clarify their needs, select suitable product models, or recommend the right products to them. The second trend we observe is that the demand for high-quality data is increasing.

For AI to participate meaningfully in procurement decisions, data such as product parameters, specifications, product alternatives, brands, and materials, these things must be sufficiently accurate. We therefore believe that high-quality, structured, and specialized data will become even more important in the era of AI. Third, SMEs are becoming more receptive to self-service and smart procurement. In the past, many procurement services required repeated communication between our sales representatives and the customer’s procurement people. In the future, AI may be able to handle a significant portion of this standardized work, reducing service costs while improving the customer service, or rather customer service experience. [Foreign language].

David Liu, Chief Technology Officer (CTO), ZKH Group Limited: 我们此前推出的AI物料管家也在持续地迭代，目前AI物料管家已经累计服务了8600家客户，而且客户数相比去年同期增长了93%，而且已经形成了商业化收入。同时，我们也在持续从数据层、模型层和智能体层构建工业用品全栈AI能力的行业壁垒。我们将在今年的10月份，联合全球头部的芯片厂家Intel，推出灵龙慧眼工业视觉的端侧模型和解决方案，赋能供应链的仓储、物流、签收等场景。那后续我们也会把AI物料管家以及灵龙工业模型与更多的国内外的头部芯片厂家开展深度的研发合作。请翻译。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: As regards to AI Materials Manager, which we launched previously, it continues to evolve. It has now served more than 8,600 customers, representing a year-over-year growth of 93% in terms of customer count, and has begun generating revenue. We are also continuing to build a competitive mode around our full stack AI capabilities for MRO products. In September or rather October this year, we plan to work with Intel, a leading global chip maker, to launch our Linglong Huiyan, which is an industry leading edge model and solution for industrial vision. We also intend to establish deeper collaboration with leading domestic chip makers, integrating AI Materials Manager and the Linglong model with their technologies at both the model and agent layers. [Foreign language].

David Liu, Chief Technology Officer (CTO), ZKH Group Limited: 那关于AI子公司，公司确定设立之后，也确实感受到了来自市场的多方关注。我们目前正在按照既定的计划推进相关设立工作。独立子公司是希望给予更加独立灵活的组织机制、人才机制以及未来的资本运作空间，同时与震坤行在工业数据、客户场景和供应链资源方面形成深度的协同。那AI公司的目标是成为工业领域的智能基础设施公司。这是我对这个问题的所有答复。谢谢。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: Regarding the AI subsidiary you were asking about, we are proceeding with this establishment according to plan. The primary reason for setting up an independent company is to give the business a more independent and flexible organizational structure, talent model, and greater flexibility for future capital activities. At the same time, the subsidiary will maintain deep synergy with ZKH in industrial data, customer use cases and supply chain resources. Our goal is to develop it into an smart infrastructure company serving the industrial sector. That was my answer to your question. Thank you.

Operator: Thank you. The next question comes from Leo Chiang with Deutsche Bank. Please go ahead.

Leo Chiang, Analyst, Deutsche Bank: [Foreign language] Good evening management, thanks for taking my question and congrats on the strong results. I have two questions. The first one is regarding our international business. Could management update us on the company’s internationalization progress, including GMV contribution, customer expansion, and your outlook for future international markets?

The second question is could management provide an update on the shareholder return plan such as share repurchase program or other related initiatives? Thank you.

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: 好的。那关于国际化方面，我们上半年的GMV增速是实现了差不多10倍的增长，做到了9500万。预计下半年会继续增加。海外业务是我们的长期战略，我们未来会持续投入。海外业务我们分成两个方面，一个是中国企业的伴随式出海，基于现有的中国客户关系，撬动更多海外的订单，同时强化海外不同国家地区的末端交付能力。那另外一个是在本地化的业务的开展。那这个我们现在主要聚焦在美国，并且聚焦在美国的德州。具体的品类上，我们更加聚焦在仓储物流企业的需要的MRO的产品。同时，我们线上的包括Amazon这类的平台的销售也有了大幅的提升。总体来说，在海外业务拓展同时，我们更加注重投入效率，不做超前费用的投入，力争在下半年实现了海外业务的利润转正。那请翻译。

Eric Chen, Founder, Chairman and CEO, ZKH Group Limited: In terms of our international business, growth wise, revenue has been growing very strongly, a tenfold increase compared to the same period last year. For the first half of this year, GMV was CNY 95 million, and we expect the second half to continue this strong growth. Secondly, international business has always been part of our long-term strategy, and we will continue to make investments into it. There’s two parts to our international business. Part one is we will continue to support Chinese businesses as they expand their business in overseas markets. Based on existing customer relations, we will leverage more overseas orders and at the same time strengthen our last mile fulfillment capabilities in different locales, geographies, and regions. The second part to our international business is localized business, which is happening primarily in the U.S. and Texas specifically as we speak.

At the same time, as was talked about in the prepared remarks, our online sales by way of Amazon is also increasing greatly. Overall, we are valuing efficiency more when it comes to making investments in our overseas business. We will avoid front-loading expenses ahead of business needs, and we will try to turn a profit sometime in the second half of this year for our international business. Continue. When it comes to shareholder returns, in June 2025, the company authorized a $50 million USD worth of share buyback program, which remains valid through June of 2027. As of the end of the Q2 this year, the company had accumulatively repurchased approximately 2.49 million ADSs, which translates into about $7.67 million USD.

We intend to step up the pace of share buybacks, and once our profits begin to scale more meaningfully, we will also consider starting to pay dividends to our shareholders. That was my answer to your question. Thank you.

Operator: That concludes the question and answer session. I would like to turn the conference back over to management for closing remarks.

Daisy Xu, Head of Investor Relations, ZKH Group Limited: Thank you once again for joining us today. You can find a webcast of today’s call on ir.zkh.com. If you have any further questions, please feel free to contact us. Our contact information can be found in today’s press release. Thank you and have a great day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.