ZKH Group Limited

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.

Good morning and welcome to ZKF's 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. Hello, everyone. Welcome to Zhengfeng Hang.

In the second quarter of 2026, we had a good development trend since the beginning of the year, and the overall business performance continued to improve. Since the growth of the fourth quarter last year, our GMV and revenue have achieved the same growth in the third quarter in a row, and the increase of the second quarter has created a new high in the past few quarters. At the same time, and the core customer group showed steady performance. The growth base of the business has been further expanded. While the business scale continues to expand, our growth quality and profitability are also improving. In the second quarter, the net profit growth is higher than that of GMV. The net profit rate of the net profit and net return have been increased. As the scale effect is further released, customers and product structures continue to optimize, Hello everyone, thank you for joining DKH's second quarter 2026 earnings call. Drowning on a strong start to the year, our business gained further momentum in the second quarter.