00:00Good set of results so far.
00:02Yes.
00:02Positive.
00:03Back to positive.
00:04Yeah, make positive.
00:05What do you think drove that and do you think we can,
00:07is that something we can and should expect from the company?
00:10Yes.
00:11Before I give highlights about our Q4 results,
00:15maybe I can give one or two minutes to introduce our company.
00:18Sure, go ahead.
00:18EZKH is a leading MRO procurement service company in China
00:23and MRO stands for Maintenance, Operations and Repairs.
00:27They are the materials used for maintenance, repair and operations for the factories,
00:34but they do not constitute final products.
00:39Our customers are industrial enterprises in China,
00:45including multinational corporations such as Tesla
00:49and also leading private enterprises such as BYD
00:53and also state-owned enterprises and SME customers.
00:56Traditionally, these customers buy products from local hardware,
01:02distributors and agents.
01:05Now they have a better choice to procure these products from our platforms.
01:09Yeah.
01:10Yeah, so this is the background about our company.
01:14In the fourth quarter of 2025, we delivered accelerated top-back growth
01:21and also improved operational efficiency and also the return to the probability in the fourth quarter.
01:28And this reflects our improvements in our core business operations and also the benefits,
01:36the growing benefits from the operation optimization and business optimization
01:42we implemented over the past several quarters.
01:45In the fourth quarter of 2025, our GMB grew by 8.7% year-over-year and also 11.3
01:54% sequentially up to 2.9 billion,
01:592.9 billion and also our revenues also grew by high single digit.
02:03This reflects supporters by our expanding, continued expanding customer base and also as well as
02:12enhanced product offerings and also the last-mile-to-way-free capabilities.
02:19Yeah, I was going to get your take on just the news.
02:22I mean, this Iran conflicts have basically upended a lot of global supply chains up there.
02:29And when it comes to manufacturers that you do, we talk about some of the big customers that you have.
02:33Yeah.
02:34They're definitely facing higher raw material prices, higher freight fees right now.
02:39Are you seeing any of that across your platforms right now?
02:42Yeah.
02:45Due to the recent Middle East conflicts, we do see there is some commodities prices increase in movement.
02:53And we do see some of our products such as the lubricant, such as the adhesive and price growth,
03:03the prices are increasing.
03:04But to my understanding, to our analysis, the impact is very limited and manageable.
03:11This is because we have over 23 million SKU and also…
03:18What's SKU?
03:19SKU products.
03:21Products.
03:21Products.
03:22Products.
03:23We have over 23 million products for the customers to choose.
03:27There is no single product categories account for more than 5% of our GMV order revenues.
03:33So the concentration is very well.
03:36And also, we have a very diversified supplier profile.
03:42At the same time, we are doing very good in private label products and also SME customers.
03:49They usually have a higher margin.
03:51So expanding the contribution from our private label and also expanding contribution from our SME customers
03:59will offset partially the negative impact of the commodity price increases.
04:06Okay.
04:06So folks effectively have more options.
04:09Yeah.
04:09And I guess you're expanding.
04:10You're diversifying, of course, the base of revenues.
04:12How does that go into…
04:15Do you have as much visibility this year compared to the start of the year?
04:19Yes.
04:19Sure.
04:20In terms of your revenue, do you have any of those plans get upended in some way or is
04:25it still stable as it goes?
04:29First of all, the total dressable market size in ML products, ML coping with services industry
04:39in China is very huge.
04:42About RMB 3 to 4 trillion.
04:45And also, the online penetration rate is still very low.
04:48It's used in the early stage.
04:49So there is still a lot of room for us to make customers.
04:54What's your market share now?
04:54I'm curious.
04:55The demand share is still very low.
04:57Okay.
04:58It's in single digit.
04:58But what I want to say is that there is plenty of room for us to grow.
05:03Sure.
05:04Our strategy is very clear.
05:06Firstly, we will cover and to increase the water share of KEA, key account customers,
05:15by covering more of their factories and also do more cross-selling.
05:20Secondly, we will expand our SME customer coverage.
05:25There are about three million SME enterprises, manufacturing enterprises in China.
05:31There's still plenty of room for us to expand, to cover the SME customers.
05:36Yeah.
05:37I know you also have plans to expand overseas.
05:42Yeah.
05:42And this certainly is a trend that we're seeing across a lot of Chinese companies going global.
05:46Can you tell us a little more about those plans and does this Iran conflict affect the pace of that
05:50expansion in any way?
05:51Yeah.
05:52Going global, global is our key strategy over the past two years.
05:58We started to go overseas starting from 2025.
06:05The rationale behind international expansion is that China MRO not only serves the domestic market in China but also serve
06:13globally.
06:13Because most of these products, the U.S. will not produce them and Europe will not produce them.
06:19Most of them will import China MRO products to the local markets to sell.
06:26And also over the past two or three years, a lot of Chinese companies moved overseas to build their manufacturing
06:34factories outside.
06:35So what markets are you looking at now?
06:37Yeah.
06:38We are now looking for a U.S. market.
06:41We have already established a subsidiary and also local team in U.S.
06:44And registered customer number reaches more than 9,000.
06:50And also the SKU we sell in the U.S. is more than 700 SKU.
06:56Yeah.
06:57Another market is Southeast Asia and also South America because a lot of Chinese manufacturers go over there to set
07:05up their factories.
07:06The local factories also need the MRO procurement services.
07:10So we consolidate the demand in China and then shift the products to the local factories.
07:16Yeah.
07:17How much top line growth are you expecting this year for the full year?
07:21And I have a follow up to that too.
07:23So you're back to profits on a quarterly basis.
07:25Yes.
07:25But on a net basis for the entire year that you're still down.
07:28Correct me if I'm wrong, net loss.
07:29Does that turn also positive in 2026?
07:32For the 2026, we are working on mid to high single digit worldwide growth in terms of GMB.
07:39Yeah.
07:40And also for the for the gross margin, we will have a gradual increase in the gross margin.
07:47And also the operating expenses ratio will improve, continue to improve in 2026.
07:53That means in 2026, we are working on a meaningful full year profit.
08:01Given the geopolitics, obviously, you are a U.S. listed Chinese company.
08:06I'm just wondering, you know, there was a time when people started talking about this homecoming, right?
08:11Coming back to list in Hong Kong or the mainland.
08:14I think that was initial plans for you.
08:16Is that still the case for you guys?
08:18This is still the case for both of us because we see that a lot of very favorable,
08:23positive policies issued by the stock change of Hong Kong and also CSRC give a green channel for the U
08:33.S. listed companies go back to Hong Kong.
08:35We have been discussing with our investment bankers and also legal councils and the IPO, the Hong Kong IPO proposal
08:43is on the table.
08:44OK.
08:44So we are going to the exact timing to be decided.
08:49OK.
08:49Just to clarify, the proposal from the bankers are on the table or have you filed an application with the
08:54exchange?
08:54The proposal on the table from the bankers and also legal councils.
08:59I see.
08:59OK.
08:59So the pitch is there for you.
09:01The pitch is in.
09:02OK.
09:03The bankers are really on their game these days.
09:05OK.
09:05OK.
