Shocking Technology Stock Surges 9.44% on Strong Q1 Earnings

Shocking Technology (ZKH.US) saw a notable increase in its stock price, closing at $3.13, up 9.44% on Tuesday. This surge was fueled by the company's strong first-quarter financial results, which surpassed market expectations. The company reported revenue of 19.4 billion yuan, marking a 4% year-over-year increase, with a gross margin of 17.2%. Both operating and net losses narrowed significantly, by 37.7% and 26.6% respectively, compared to the same period last year.

The robust performance was driven by strong demand from small and medium-sized enterprises (SMEs) and key industry clients, which outperformed market projections. Analysts noted that the company's AI-driven product recommendation system, known as the "AI Product Brain," has played a crucial role in this success. Since its launch, the system has served over 200 clients, contributing approximately 340 million yuan to revenue growth. The company plans to expand this service to 14,000 clients, leveraging AI to enhance operational efficiency.

The introduction of an AI-powered workstation has also significantly improved the productivity of the customer service team. The average order processing capacity per team member increased by 60.4% compared to the previous quarter. This AI integration is expected to accelerate the release of operational leverage, further driving the company's growth and profitability. The company's management highlighted that the AI Product Brain has been a key driver of revenue growth and plans to continue promoting it to a broader client base. This strategic move is aimed at capitalizing on the increasing demand for AI-driven solutions in the market, positioning the company for sustained growth in the coming quarters.