ZKH Group (ZKH) Q2 2026 earnings call transcript

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 relief for definitions of these measures and a reconsideration of GAAP to non-GAAP results.

With that, I will turn the call over to Eric. Eric, please go ahead.

Welcome to the show. The second stage is the second stage. The customer and product structure will continue to improve and increase the production and production效果. The company will perform the economic growth rate of the economy and the economy will improve the economic growth rate of the economy.

Hello everyone, thank you for joining DKH's second quarter 2026 earnings call. Building on a 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 up to a place 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 GMB 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.

The current year of the good performance has been a strong and strong. It has been a strong and strong and strong. In terms of the current year of the growth of the market, we will expect the future of the GMV增速 will be more than a more. The growth of the GMV will be more than a higher level. 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 GMB growth to accelerate further in the second half of the year. with profitability improving more meaningfully.

From the customer's perspective, the customer's perspective has been a different way to the customer. 也相对较高 这位客户群的快速发展 不仅为公司注入了更强的增长功能 也有助于优化客户结构 改善整体劳力率水平 Next, let me walk you through some of the business highlights in the quarter Starting with GMB Second quarter GMB grew by 19% year over year While GMB on the ZKH platform increased by 23%, accelerating further from the first quarter.

Based on current trends, we expect GMB 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 GMB 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 growth margins are higher. Rapid expansion in this segment not only adds momentum to our overall growth, but also improves our customer mix and overall growth margin.

and the service ability is now earning a lot of money, which is helping many of the most important industries to make a faster growth. The other hand-to-date, the steel steel steel is very bright. The GMAs are over-to-date. The digital technology, technology, the medical technology, and the medical industry are over 30%.

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 non-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.

One way, we have a global company in the future. We have developed a good product for the market. 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 North Sky 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.

First, in the product, we will continue to expand the different ML product, and through the increase in the first-time ML product, to continue to increase the product product product and the product product product. In the季度, we will be able to expand the product product and the product product product. The company's power supply will be 1.6倍 of the growth. On the other side of the product, we are to support the security of customers' security and security, the interaction of the internet and the internet is to ensure that we are to provide a more efficient, the security and security and security. The company has a high-end system of the company's technology and technology. 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 AI. 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 depths of our services in specialized categories and further differentiated our offerings. During the quarter, GMB 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 a hundredfold 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.

其次,自由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个自由品牌SQ,带动自由品牌GMV同比增长超过25%, GMV占比升值约10%,在供欠增量收入的同时,也追踪了整体毛利率的改善。 随到自有品牌产品矩阵的丰富,我们已在持续完善从产品开发到测试验证的体系化能力 目前,我们的制度测试体系已覆盖多条核心产线,为了性能、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 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.

This is a production of the U. S. 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 Changzhou, 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, from 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 share as a percentage of net revenues declined to 3.7% from 4.2% a year ago. In AI and AI, we will continue to look at the first-time and second-time technology of AI. 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。 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 a 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. In this basis, we will continue to grow the business of the business and the business of the business. 商品搜索与选行,企业知识协同及仓储实货等关键环节 其中AI物料管家已服务超过8600家客户 落地超过15个国阳级案例 累计完成2400万行物料治理 有效帮助客户提升物料管理效率,降低库存成本 In terms of marketing, we continue to推進 AI in the business and business of business and business. We will continue to increase the business of business and business. In the year, the company's business of AI is to reduce the cost of 1.2 hours. AI's support of the business is to increase the 70% of the business. We will also encourage the business of business and business.

Currently, there are 22 of the EG staff, over 200 of the employees, who participate in AI-based communication, and the ability to create AI-based communication.

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, Linlong Hui Sou, Linlong Hui Yuan, 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. Thank you. 参会企业超过1000家,会聚众多行业领袖、企业高管及产业链专家,参会规模与嘉宾层,层级精创行业记录。 This event has further increased the business sector's impact on the business sector, and has provided a key platform for our business and business development.

In the future, we will continue to develop the platform's advantage, to strengthen business knowledge and knowledge of the business, and to create a more valuable value for the business sector. Beyond strengthening our own capabilities, we are also actively contributing to the broader industry ecosystem. In June, we co-hosted the inaugural China Industrial Supply 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 VKH'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. 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,改下扎实的基础。 下面,我就把电话交给我们的CFO,Jerry Wang,为大家详细介绍公司的财务表现。 谢谢大家。 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 Wong, to walk you through our financial results.

Thank you. 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 key financial metrics in the second quarter. GMB growth accelerated to its fastest pace in the past few quarters, while our growth's 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 recovery that began in the second half of last year gained further momentum in the second quarter with GMV and revenue posting accelerated year growth GMV increased 18 year to RMB 2 billion while net revenues grew 12 to RMB 2 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 GMB growth accelerated, growth profit grew even faster, increasing 20.3% year-over-year, from RMB 357 million to RMB 430 million. As a result, gross profit as a percentage of GMB 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 GMB 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 a 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 151 million, representing 6.2% of net revenues, down from 6.9% in the same period last year. RMB 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 GMB 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 focus 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 greater operating leverage drove a significant year-over-year improvement in profitability.

In the second quarter, our operating profit, NGAP EBITDA and NGAP adjusted net profit all turned positive. In particular, NGAP's EBITDA reached RMB 42 million compared with negative RMB 39 million in the same period last year, while NGAP adjusted net profit reached RMB 39 million compared with negative 37 million a year ago.

Turning to our balance sheet, we continued to maintain a solid liquidity position. As of June 30, 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 the gap-adjusted net profit.

Based on current trends, we expect to maintain high-tink 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.

好的,谢谢. 较过去几个季度进步加快 是我们在中国高度分散的 ML市场持续赢得市场份额的印证 我们可以从行业 客户和自由品牌产品 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 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行业 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% 食品農夫增长了37% 通讯电子增长了35% 同时公司在一些战略新型行业 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 Thank you very much for that question So indeed, we achieved acceleration in terms of our GMB growth in the second quarter, 2026, and it's faster than any past quarters. And 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. So firstly, let's talk about industries. We have been continually investigating or rather investing in high-growth industries. So the following are some of the industries that have been growing over 30% in Q2 this year from a GMV perspective. And they are steel and non-ferric metals, primarily non-ferric metals, 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. 请继续。 其次,关于客户的组合,区域中小客户,那我们这里讲的中小客户呢,主要是指体量在10亿规模左右的客户,相比较央国企啊,行业那些大客户呢,我们在这里定义是中小客户。 The second year of the customer is the second year of the big deal.

GMV-1% is the 30% of the customer. We expect the customer will continue to maintain the GMV-1% of the customer.

As we said before, the customer will continue to maintain the customer's product and service. 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 煮货 现在我们更有能力 因为产品能力的提升 客户根据我们已经有的产品 to choose to buy so the effect will be achieved with a higher increase with this same time the customer's cost is higher to be higher so the customer's cost is higher will be higher to the company's cost and the customer's cost is higher as well, the customer's cost often in the city's边缘 and the交付 is more convenient in the future In the past, our small customers' GMAs are about 30%. The big customers, including the business owners' head customers, CA and the local customers, GMAs are about 60%.

In the future, we expect the small customers' average will continue to increase. Please, please. So secondly, in terms of our custom mix, I would like to talk about how we perform on the SME customers' front. And just to clarify the definition of what we mean by an SME customer, we're talking about a customer with a revenue of over 1 billion RMB. So it's not technically a small customer or a small company, right? But relatively speaking, it's small compared to some of the large guys or central and local SLEs. And so a big highlight of Q2 is that the GMB for these SMEs have reached 30%. And so the GMB growth for this segment is outperforming the company's overall GMB growth.

And like discussed earlier, we believe this type of customers can reflect the improvement of the product and service capabilities of the VKH more than any other types of customers. Because these customers are getting increasingly demanding in terms of their requirements for services. So as a result, traditional and conventional trading companies are being eliminated. And secondly, the business, our business is evolving from sales driven to supply driven or supply chain driven. I'll explain what I mean by this. So 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's available on our part.

and that's definitely a huge increase in terms of efficiency and productivity. At the same time, the growth margins on the part of the SMEs are higher than large customers. So the growth of SMEs outstripping the overall company is definitely conducive to the improvement of our overall growth margins. And these SMEs are usually located in the outskirts of cities, which means delivery and the fulfillment for them is easier.

And GMB-wise, these SME customers are accounting for about 30% of total GMB, while large customers, and by large customers, I mean key accounts or leading companies of various sectors and those SOEs. So these larger customers account for 60% GMB-wise, and we expect SME GMB share to continue to rise in the future. Let's continue.

The market price is higher than the non-自由品牌. It's about 10% higher. So, the自由品牌's price will also affect the market price. Please, please.

Thirdly my last point is private labels For Q2 private labels achieved a growth of over 25 out overall growth And its GMV share has reached 10%, marching towards our long-term goal of 30% for it. And the growth margins for private labels are higher than non-private labels. It's usually 10% higher. So this trend of private labels as a share of overall GMB increasing will also be conducive to the overall growth margins improving. Thank you.

And the year-old, especially in the 12th, is the total price of the year. So we have faith in the current year's increase in the year's increase in the year's G&B. I'll answer all the questions. Thank you. Looking out to the second half of this year and the entire year's G&B, If you look at the order trend July, August this year, we expect GMB growth for Q3 is going to be higher than Q2's 18.9%. So it's going to continue to accelerate. And the Q4, especially the month of December, is a peak month or peak quarter for orders throughout the year. And we are confident that we are able to sustain this growth and be able to achieve our overall growth of 15% to 20% growth for GMB this year.

And that was my answer to your question. Thank you.

I'm is using the digital language to get the needs, even by the app, the environment, the environment, the data, the user, and the user, and the user, and to help it to achieve the needs of the needs of the AI. The second point is to the company's high-duty data will be more clear to increase. The following AI is to be able to do the needs of AI, the key is to use the data, the data, the data, the data, the data, the data, the data, 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主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 那么在降低服务成本的同时提升客户体验 请帮我翻译 So this is the CTO of the company and I'll take this question. So indeed, we have observed some incremental changes in customer purchasing behavior as AI applications gradually mature.

So 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, 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 customers' 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.

Please continue. We will also be able to build a new product to the AI industry. and the design of the product and other companies in the world, to develop a deep-distance collaboration. Please, 3.

We're also continuing to build a competitive mode around our four-stack AI capabilities for MRO products. In September or rather October this year, we plan to work with Intel, a leading global chipmaker, to launch our Linlong Huian, which is an industry-leading edge model and solution for industrial vision. We also intend to establish deeper collaboration with leading domestic chipmakers, integrating AI material manager and the Linlong model with their technologies at both the model and agent layers. Thank you.

关于AI子公司,公司确定设立之后,也确实感受到了来自剧场的多专关注。 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。 and the company is a deep-duty relationship with the company in the industry, the customer experience and the company's resources. We have a deep-duty relationship with the company. The AI company's goal is to become a technology-based company. That's what I've answered to this question. Thank you.

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 a smart infrastructure company serving the industrial sector.

And that was my answer to your question. Thank you.

How about that? 关于国际化方面呢 我们上半年的GMA增速呢 是实现了差不多十倍的增长 做到了九千五百万 预计下半年会进入的增加 海外业务呢 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 另外一个是在本地化的业务开展 那这个我们现在主要聚焦在美国 并且聚焦在美国的德州 In general, we are more focused on the market market. 李宗在下半年实现了海外有的利润转正。 那请翻译。 international business has always been part of our long-term strategy, and we will continue to make investments into it. And 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. And 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. So overall, we are valuing efficiency more when it comes to making investments in our overseas business. and we will avoid front-loading expenses ahead of business needs and we will try to turn profit for sometime in the second half of this year for our international business. 请继续 关于股东回报呢 公司在2025年6月批准了5000万美元的回购额度 那有效期一直到2027年的6月 截至今年第二季度 在该回购计划下 公司累计回购了约240万股ADS 最佣金额约767万美金 我们会持续加大回购的力度 同时呢 在我们加快公司又发展的同时呢 随着利润的进一步的增加 我们在考虑呢 给我们的股东呢 进行分红 这是我对这个问题的回答 谢谢 When it comes to shareholder returns, in June 2025, the company authorized a $50 million USD worth of the shareback 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 set up the pace, or rather 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. And that was my answer to your question. Thank you.

Thank you once again for joining us today. You can find the webcast of today's call on ir. dks. 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.