ZKH Group Ltd reported continued net losses for fiscal 2025, improving operating income yet still negative, underscoring persistent profitability challenges in a nascent but competitive Chinese MRO procurement industry. The company pursues growth by expanding its dual business model—direct product sales and a higher-margin marketplace—and investing in fulfillment facilities in industrial hubs to enhance delivery reliability and customer experience. However, operational complexities, quality control issues, pricing pressures, and evolving regulatory risks pose material constraints. ZKH’s solid liquidity position supports planned capital expenditures, including a committed industrial facility project aimed at bolstering technical support and quality assurance.