Kanzhun Ltd (BZ) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, welcome to the Kanzhun Limited Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call.

女士們，先生們，感謝大家的支持，歡迎參加 Kanzhun Limited 2023 財年第四季和財務業績電話會議。

(Operator Instructions) Today's conference is being recorded.

（操作員指示）今天的會議正在錄音。

At this time, I'd like to turn the conference over to Ms. Wenbei Wang, Head of Investor Relations.

現在，我想將會議交給投資人關係主管王文貝女士。

Please go ahead, ma'am.

請繼續，女士。

Thank you, operator.

謝謝您，接線生。

Good evening and good morning, everyone.

大家晚上好，早安。

Welcome to our Fourth Quarter and Full Year 2023 Earnings Conference Call.

歡迎參加我們的 2023 年第四季和全年財報電話會議。

Joining me today are our Founder, Chairman and CEO, Mr. Jonathan Peng Zhao, and our Director and CFO, Mr. Phil Yu Zhang.

今天與我一起出席的還有我們的創辦人、董事長兼執行長趙鵬先生和我們的董事兼財務長張宇先生。

Before we start, we would like to remind you that today's discussion may contain forward-looking statements, which are based on management's current expectations and observations that involve known and unknown risks, uncertainties and other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different.

在開始之前，我們想提醒您，今天的討論可能包含前瞻性陳述，這些陳述基於管理層當前的預期和觀察，涉及已知和未知的風險、不確定性和其他不受公司控制的因素，這可能會導致公司的實際結果、業績或成就產生重大差異。

The Company cautions you not to place undue reliance on forward-looking statements and do not undertake any obligation to update this forward-looking information except as required by law.

本公司提醒您不要過度依賴前瞻性陳述，並且除非法律要求，否則不承擔更新此前瞻性資訊的任何義務。

During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only.

在現今的電話會議上，管理階層還將討論某些非 GAAP 財務指標，僅供比較之用。

For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier.

有關非公認會計準則 (GAAP) 財務指標的定義以及公認會計準則 (GAAP) 與非公認會計準則 (非 GAAP) 財務結果的對照表，請參閱先前發布的收益報告。

In addition, a webcast replay of this conference call will be available on our website at ir.zhipin.com. With that, I will now turn the call to Jonathan, our Founder, Chairman and CEO.

此外，本次電話會議的網路重播將在我們的網站ir.zhipin.com上提供。現在，我將電話轉給我們的創辦人、董事長兼執行長喬納森。

(interpreted) Hello, everyone.

（譯）大家好。

Welcome to our Fourth Quarter and Full Year 2023 Earnings Conference Call.

歡迎參加我們的 2023 年第四季和全年財報電話會議。

On behalf of the company and our employees, management team and Board of Directors, I would like to express our sincere gratitude to our users and investors who trust and support us.

我謹代表公司和我們的員工、管理團隊和董事會，向信任和支持我們的用戶和投資者表示誠摯的感謝。

First, I would like to share our performance with you.

首先，我想與大家分享我們的業績。

In the fourth quarter, the Company achieved a calculated cash billings of RMB1.78 billion, up 61% year on year and 9% quarter on quarter.

第四季度，公司實現現金流量17.8億元，年增61%，季增9%。

Our GAAP revenue reached RMB1.58 billion, up 46% year on year and remained flattish with last quarter.

我們的GAAP營業收入達到15.8億元人民幣，較去年同期成長46%，與上季持平。

Our adjusted net income, which excludes share-based compensation expenses, was RMB630 million.

扣除股權激勵費用後，我們的調整後淨利為6.3億元。

In the fourth quarter, the average verified MAU on the BOSS Zhipin app reached 41.2 million, representing a 33% year-over-year increase.

第四季度，BOSS直聘應用程式的平均驗證月活躍用戶數達到4,120萬，較去年同期成長33%。

In the fourth quarter, we noted an improving ratio between the demands from active enterprise users and the supplies from job seekers.

在第四季度，我們注意到活躍企業用戶的需求與求職者的供給之間的比例有所改善。

We also noted continued steady recovery of medium- and large-scale enterprises since the third quarter, all of which, contributing to our cash billings, GAAP revenue and profit level in the fourth quarter to exceed our expectations.

我們還注意到，自第三季以來，大中型企業繼續穩步復甦，這些因素推動我們第四季度的現金流、GAAP收入和利潤水平超出了我們的預期。

Let's take a look for the full year of 2023.

讓我們來展望一下2023年全年。

The company achieved a calculated cash billing of RMB6.69 billion, up by 45% year on year; and a GAAP revenue of RMB5.95 billion, up by 32% year on year.

公司實現核算現金流66.9億元，較去年成長45%；依美國通用會計準則，營業收入59.5億元，較去年成長32%。

Excluding share-based compensation expenses, the adjusted net income for the year reached RMB2.16 billion.

剔除股權激勵費用，全年調整後淨利達21.6億元。

Furthermore, excluding other income such as wealth management income, the adjusted operating income for 2023 was RMB1.64 billion, reflecting a remarkable 191% year-on-year increase.

此外，剔除理財收入等其他收入，2023年調整後營業收入為16.4億元，較去年同期成長191%。

This resulted in a 27.5% adjusted operating margin, underscoring the company's robust profitability capability.

調整後的營業利益率達到27.5%，凸顯了公司強勁的獲利能力。

In 2023, we attracted more than 49 million newly added verified users, representing the largest annual growth in user base since the company's inception.

2023年，我們新增驗證用戶超過4,900萬，是公司成立以來用戶群最大的年度成長。

This year, the number of users we serve has increased by nearly a half of 100 million, and we have been able to help them with our products, which we are quite deeply proud of.

今年我們服務的用戶數量增加了近半億，我們能夠用我們的產品幫助他們，對此我們深感自豪。

As of December 31, 2023, the Company has served a total of over 178 million individual users and 13.3 million enterprises.

截至2023年12月31日，本公司共服務超過1.78億個個人用戶及1,330萬企業用戶。

The average verified MAU on the BOSS Zhipin APP was 42.27 million in 2023, representing a year-on-year increase of 47%.

2023年BOSS直聘APP平均驗證月活躍用戶數為4,227萬，較去年同期成長47%。

Approximately 1.5 billion mutual achievements between job seekers and recruiters have been accomplished on our platform throughout the year.

全年透過我們的平台，求職者與招募人員之間共達成約15億次求職成果。

In 2023, the number of paid enterprise customers increased by 44% year on year to 5.2 million.

2023年付費企業客戶數量年增44%至520萬人。

Moreover, both the number of paid enterprise users and the paying ratio of active users continued to achieve record highs.

此外，付費企業用戶數和活躍用戶付費佔比均持續創下歷史新高。

As the Company continues to expand our user coverage, both the user and revenue structure undergo constant evolution, highlighted by the following key points.

隨著公司用戶覆蓋範圍不斷擴大，用戶結構和收入結構不斷演變，主要體現在以下幾個方面：

First, in 2023, the scale of newly added blue-collar users matched that of white-collar users, with revenue contribution of the whole year from blue-collar users exceeding 34%.

第一，2023年新增藍領用戶規模與白領用戶規模持平，藍領用戶全年營收貢獻將超過34%。

Second, revenue contribution from second and the lower tier cities exceeded 60%, a 5-percentage-point increase year on year.

二是二線及以下城市收入貢獻超過60%，較去年同期增加5個百分點。

Third, revenue contribution from enterprises with less than 100 employees also increased by more than 5-percentage-points year on year.

三是100人以下企業收入貢獻年比也增加了5個百分點以上。

All this changes further demonstrated that we are confident that our product can serve different users and also our service can cover different kind of users.

所有這些變化進一步表明，我們有信心我們的產品可以服務不同的用戶，並且我們的服務可以覆蓋不同類型的用戶。

This is mainly based on the down-to-earth research on actual detailed needs from different kind of users and our continuous efforts in technology investment

這主要基於對不同類型用戶的實際詳細需求的深入研究以及我們在技術投入上的持續努力

.

。

In January this year, our company's proprietary Big Model, which we named it Nanbeige, big large language model, which is believed to be the first large language model designed specifically for the recruitment industry, has successfully completed its online registration for generative artificial intelligence.

今年1月，我們公司自主研發的Big Model（大模型），我們把它命名為南貝格，大大語言模型，據信是第一個專門針對招聘行業設計的大語言模型，已經成功完成了生成式人工智能的線上報名。

Effect of this model has reached the industry-leading level on some public benchmarks and have gradually been applied in some recruiting and Job seeking scenarios.

該模型的效果在一些公開的基準測試上已經達到業界領先水平，並逐漸在一些招募、求職場景中得到應用。

For example, for those young entrepreneurs who is starting up their companies we provide them with rapid job postings function, and for those young people or fresh graduate job seekers we provide them with resume polish function et cetera.

例如，針對剛開始創業的年輕創業家我們為他們提供快速發布職位的功能，針對年輕人或剛畢業的求職者我們為他們提供履歷潤飾功能等等。

The company's investment in AIGC mainly focuses on two principles.

該公司對AIGC的投資主要遵循兩個原則。

First, we keep track of the cutting edge technology to avoid the generational gap in knowledge.

首先，我們緊跟著尖端技術，避免知識的代溝。

Second, focus on industrial implementation and not make big investment blindly.

二是注重產業落地，不盲目大投入。

Next, we will briefly update the situation for this spring.

接下來，我們簡單介紹一下今年春天的情況。

Following the Spring Festival, the company's various user metrics continue to hit historical highs, with the peak DAU on the BOSS Zhipin APP approaching 17 million, for example.

春節後，公司各項用戶指標不斷創歷史新高，BOSS直聘APP日活躍用戶高峰已接近1,700萬。

From those data we also identified several characteristics which are notably different from the same period last year, including the following keywords.

從這些數據中我們也發現了幾個與去年同期明顯不同的特點，包括這些關鍵字。

First, recruiters.

首先，招募人員。

Since the Spring Festival the daily average number of newly posted job positions and active job positions have both reached historical highs compared with the same period in the previous year.

春節以來，每日平均新增就業人數和活躍就業崗位數均創下去年同期歷史新高。

The daily average number of active job positions increased by 20% year-on-year.

日均活躍職位數量較去年同期成長20%。

The second keyword is large enterprises.

第二個關鍵字是大企業。

Since Spring Festival, the average daily active position from enterprises with more than 10,000 employees increased by 24% compared with the same period of 2023.

春節以來，萬人以上企業日均活躍部位較2023年同期成長24%。

The third key word is industry.

第三個關鍵字是產業。

The daily average number of newly added job positions and active job positions across all industries has shown positive growth since this year's Spring Festival compared with the same period of 2023.

今年春節以來，各行業日均新增就業人數和活躍就業崗位數與2023年同期相比均呈正增長。

Among which, the blue-collar industry has once again reached a new record high driven by the continuous expansion of urban-service sector.

其中，受城市服務業持續擴張帶動，藍領產業收入再創新高。

Additionally, the manufacturing and the supply chain logistics sector have shown accelerated year on year growth rate.

此外，製造業和供應鏈物流行業的年成長率也加快了。

Within the white-collar industry sectors such as consumer goods, medical equipment, automotive, and advertising and media are leading the growth.

在白領產業中，消費品、醫療設備、汽車、廣告和媒體等產業引領成長。

The fourth keyword is business.

第四個關鍵字是商業。

There has been a noticeable shift in the types of job position compared with last year.

與去年相比，職位類型發生了明顯的變化。

Positions focusing on the development and growth of the enterprise business, such as sales guys, human resource services, finance and the related positions have experienced a clear rebound in growth rates.

銷售、人力資源、財務等關注企業業務發展及成長的職位及相關職位的成長率均出現明顯反彈。

So we anticipate our quarter-on-quarter increase in both cash billing and GAAP revenue for the first quarter.

因此，我們預計第一季的現金帳單和 GAAP 收入都將較上季成長。

I'm pleased to announce the company's Board of Directors approved a new share repurchase plan today, upsizing to repurchase up to USD200 million of the company's shares over the next 12 months.

我很高興地宣布，該公司董事會今天批准了一項新的股票回購計劃，計劃在未來 12 個月內回購最多 2 億美元的公司股票。

This marks our third share repurchase plan, alongside the USD80 million special cash dividend issued in last November, demonstrating the management's commitment and sincerity towards long-term shareholder returns.

這是我們第三次股份回購計劃，此前我們於去年11月派發了8000萬美元特別現金股息，體現了管理層對長期股東回報的承諾和誠意。

That concluded my part of the call.

我的通話部分到此結束。

I'll now turn it over to our CFO, Phil, for the review of our financial.

我現在將把它交給我們的財務長菲爾，以審查我們的財務狀況。

Thank you.

謝謝。

Thanks, Jonathan.

謝謝，喬納森。

Hello, everyone, now let me walk through the details of our financial results of the fourth quarter and full year of 2023.

大家好，現在我來詳細介紹一下我們2023年第四季和全年的財務表現。

We are pleased to deliver a strong set of results for the fourth quarter and the full year 2023.

我們很高興能夠取得 2023 年第四季和全年的強勁業績。

For the fourth quarter, our calculated cash billings reached a historical high of RMB1.8 billion, grew by 61% year over year and notably 9% quarter on quarter, beating our expectations.

第四季度，我們計算的現金支出達到人民幣18億元的歷史新高，年增61％，季增9％，超出我們的預期。

Revenues increased by 46% to RMB1.6 billion compared to the same period last year and stayed relatively stable sequentially due to the lower seasonality, confirmed our observation of a gradual recovery, especially at medium and large size companies.

收入較去年同期增長46%，至人民幣16億元，由於季節性因素較低，收入環比保持相對穩定，證實了我們觀察到的逐步復甦，尤其是在中大型公司。

Revenue contribution from key accounts and their ARPU also recovered sequentially in this quarter.

本季來自重點客戶的營收貢獻及其 ARPU 也較上季回升。

For the full year of 2023, our calculated cash billings and revenues increased by 45% and 32%, respectively.

2023 年全年，我們計算的現金帳單和收入分別增加了 45% 和 32%。

Number of paid enterprise customers reached 5.2 million in 2023, up by 44% year-over-year, marking another new high level of paying ratio among active enterprise users and demonstrated our ample space and flexibility in monetization.

2023年付費企業客戶數達520萬，較去年成長44%，活躍企業用戶付費率再創新高，彰顯我們充裕的貨幣化空間及彈性。

Moving to the cost side, total operating costs and expenses decreased by 4% year-over-year to RMB1.4 billion in the fourth quarter and increased by 16% year-on-year to RMB5.4 billion in 2023.

成本方面，第四季總營運成本及費用年減4%至人民幣14億元，2023年年增16%至人民幣54億元。

This year, we managed to achieve a robust user growth while still seeing margin expansion.

今年，我們成功實現了用戶數的強勁成長，同時利潤率也持續擴大。

The annual adjusted operating margin improved from 12.5% in 2022 to a record level of 27.5% in 2023 up by 15-percentage-points.

年度調整後營業利潤率從 2022 年的 12.5% 提高到 2023 年的創紀錄水準 27.5%，上升了 15 個百分點。

Cost of revenues increased by 36% year-over-year to RMB275 million in the fourth quarter, and 40% year-over-year to RMB1.1 billion in 2023.

第四季營收成本年增36%至人民幣2.75億元，2023年營收成本年增40%至人民幣11億元。

This increase was primarily driven by increased server and bandwidth costs and payment processing costs in line with the growth of user engagement and the transaction volume.

這一增長主要是由於隨著用戶參與度和交易量的增長，伺服器和頻寬成本以及支付處理成本的增加。

Our sales and marketing expenses decreased by 36% year-over-year to RMB433 million in the fourth quarter as we didn't have a similar marketing campaigns like 2022 FIFA World Cup sponsorship in the year and remained stable with last year at RMB2.0 billion for the full year of 2023.

由於今年我們沒有進行類似2022年FIFA世界盃贊助的行銷活動，我們的銷售和行銷費用在第四季同比下降36%至人民幣4.33億元，並且與去年保持穩定，2023年全年為人民幣20億元。

Even excluding the World Cup sponsor fees, adjusted sales and marketing expenses as percentage of revenue went down by 7-percentage-points this year compared to 2022, when at that time, we could only have user growth for half of the year.

即使不包括世界盃贊助商費用，今年調整後的銷售和行銷費用佔收入的百分比與 2022 年相比下降了 7 個百分點，而當時我們只能在半年內實現用戶成長。

This proves the effectiveness of our marketing strategy which emphasizes more towards branding campaign.

這證明了我們更加重視品牌宣傳活動的行銷策略的有效性。

Our R&D expenses increased by 46% year-over-year to RMB430 million in the fourth quarter and 31% year-over-year to RMB1.5 billion in 2023.

我們的研發費用在第四季年增46%至人民幣4.3億元，2023年年增31%至人民幣15億元。

Excluding share-based compensation expenses, adjusted R&D expenses increased by 62% year-over-year to RMB316 million in the fourth quarter and the 25% year over year to RMB1.1 billion in 2023.

剔除股權激勵費用，第四季調整後研發費用年增62%至人民幣3.16億元，2023年調整後研發費用年增25%至人民幣11億元。

This increase was mainly driven by our further investments in talents and AI technology developments which incurred AI related server and cloud service fees.

這一增長主要由於我們對人才和人工智慧技術開發的進一步投資，從而產生了與人工智慧相關的伺服器和雲端服務費用。

Our G&A expenses decreased by 9% year-over-year to RMB225 million in the fourth quarter and increased by 13% year-over-year to RMB812 million in 2023.

我們的一般及行政開支在第四季度同比下降 9% 至人民幣 2.25 億元，在 2023 年同比增長 13% 至人民幣 8.12 億元。

Excluding share-based compensation expenses, adjusted G&A expenses decreased by 32% year-over-year to RMB122 million in the fourth quarter and 8% year-over-year to RMB482 million in 2023, mainly due to decreased professional service fees.

不包括股權激勵費用，調整後的一般及行政費用在第四季度同比下降 32% 至人民幣 1.22 億元，2023 年同比下降 8% 至人民幣 4.82 億元，主要由於專業服務費減少。

Our net income was RMB331 million in the fourth quarter and RMB1.1 billion in 2023 full year.

我們第四季的淨收入為人民幣3.31億元，2023年全年的淨收入為人民幣11億元。

Adjusted net income increased from RMB59 million in the fourth quarter of 2022 to RMB629 million, and increase from RMB799 million in 2022 full year to RMB2.2 billion for full year 2023, representing a significantly year-over-year increase.

調整後淨利由2022年第四季的5,900萬元增加至6.29億元，由2022年全年的7.99億元增至2023年全年的22億元，較去年同期大幅成長。

Adjusted net margin for the full year of 2023 reached a record high of 36.2%, up by 18.5-percentage-points.

2023年全年調整後淨利率達36.2%歷史新高，較去年同期上漲18.5個百分點。

Net cash provided by operating activities was RMB927 million for the fourth quarter and RMB3.0 billion for the full year 2023.

2023年第四季經營活動淨現金為人民幣9.27億元，全年營業活動淨現金為30億元人民幣。

As of December 31, 2023, our cash and cash equivalents, time deposits and short-term investments totaled RMB12.9 billion and long-term investments in fixed rate notes and wealth management products or RMB2.3 billion.

截至 2023 年 12 月 31 日，我們的現金及現金等價物、定期存款及短期投資總額為人民幣 129 億元，固定利率票據及理財產品的長期投資為人民幣 23 億元。

With our commitment to share our success with shareholders and supported by our robust cash reserve, we paid a cash dividend of RMB563 million in December 2023.

我們致力於與股東分享成功，並在雄厚現金儲備的支持下，於2023年12月派發了人民幣5.63億元的現金股利。

Additionally, our Board has approved a new share repurchase program over the next 12 months and upsized the program to USD200 million, demonstrating our strong commitment to shareholder returns.

此外，我們的董事會批准了未來 12 個月的新股票回購計劃，並將計劃規模提高至 2 億美元，這表明我們對股東回報的堅定承諾。

And now, for our business outlook, we have seen encouraging trend of recovered recruitment demand post Chinese New Year, and we are confident to deliver better than expected results for the current quarter.

現在，就我們的業務前景而言，我們看到農曆新年後招聘需求恢復的令人鼓舞的趨勢，我們有信心本季度取得好於預期的業績。

In the first quarter of 2024, we expect our calculated cash billings to increase sequentially by at least 12% and revenues to be between RMB1.64 billion and RMB1.67 billion with a year-over-year increase of 28.3% to 30.7%.

2024年第一季，我們預計計算的現金帳單將比上一季成長至少12%，營收將在人民幣16.4億元至人民幣16.7億元之間，年增28.3%至30.7%。

That concludes our prepared remarks, and now we would like to answer your questions.

我們的準備好的演講到此結束，現在我們想回答大家的問題。

Operator, please go ahead with the questions.

接線員，請繼續提問。

Thank you.

謝謝。

We will now begin the question and answer session.

我們現在開始問答環節。

(Operator Instructions)

（操作員指令）

Eddy Wang, Morgan Stanley.

摩根士丹利的 Eddy Wang。

(spoken in foreign language)

（用外語說）

Thank you for taking my question.

感謝您回答我的問題。

My first question is about the recruitment demand situation after the Chinese New Year.

第一個問題是關於春節後招募需求的情況。

Can you give us more details in terms of the different industries, by different enterprise sizes on this supply demand situation compare with last year?

您能否詳細介紹不同產業、不同企業規模的供需情況與去年同期相比的情況？

And my second question is: what's your forecast or expectation for the revenue growth of the company for this year?

我的第二個問題是：您對公司今年的營收成長有何預測或期望？

Thank you.

謝謝。

(interpreted) Thank you for your question.

（翻譯）感謝您的提問。

Regarding the first question, we are not suitable to comment on the entire job market, but we as a platform, we have our own data and as one of the players we would like to share with you our observation, first is about the enterprise side, which we have witnessed year-over-year growth from the enterprise side, higher compared to the job seeker side which result in the ratio between jobseekers and enterprise users continued to improve.

關於第一個問題，我們不太適合對整個就業市場發表評論，但是我們作為平台，我們有自己的數據，作為其中的參與者之一，我們想與大家分享我們的觀察，首先是關於企業端，我們看到企業端的同比增長高於求職者端，導致求職者與企業用戶之間的比例持續改善。

I have been in this industry for quite a long time, and within any detailed industries, the ratio between enterprise users and jobseekers, the relative balance, have been quite significant to me.

我在這個行業已經相當長一段時間了，在任何一個細分行業裡面，企業用戶和求職者之間的比例，相對的平衡，對我來說都是相當重要的。

Since the Spring Festival this year, my observation is that the ratio between enterprise users and jobseekers, it has been rebalancing towards relatively normal situation.

今年春節以來，我的觀察是，企業用戶和求職者的比例，已經逐漸趨於平衡，趨向於比較正常的情況。

Regarding whether the enterprises have restored the confidence for the market and for the future, the data we just mentioned is that both newly posted jobs and online active jobs have reached a record new high and very significant year-on-year growth.

至於企業對市場的信心、對未來的信心是否恢復了，剛才我們講到的數據是，無論是新增崗位發布量，還是網上活躍崗位，都創下了歷史新高，同比增長非常顯著。

And to share with you some detailed trend on particular sectors, for example, for manufacturing workers, logistics, urban-service related blue-collar sectors have recovered quite well after the Spring Festival.

和大家分享一些具體產業的具體趨勢，比如說製造業工人、物流業、城市服務業相關的藍領產業在春節後都恢復得相當好。

Another angle is that for those cities along the sea, which is more external related economic, it shows better user growth after the Spring Festival, which implies the manufacturing related to export have been performing quite well recently.

另一個角度是，沿海地區這些經濟對外關聯度較高的城市，春節後用戶成長較好，顯示出口相關的製造業近期表現較好。

Another observation we discussed last spring is that the small and micro companies recovered much better after Spring Festival last year.

我們去年春天討論過的另一個觀察結果是，小型和微型企業在去年春節後恢復得更好。

The larger companies had a postponed recovery trend, However, this year, as we just said, enterprises with more than 10,000 employees grow much better compared to those medium-sized enterprises.

大企業復甦的趨勢有所推遲，但今年我們剛才講了1萬以上規模的企業的成長速度比中型企業好得多。

And this situation has been starting since August last year and continued after the Spring Festival, which show the continuity of the white-collar recovery.

而這狀況從去年8月開始，一直延續到春節後，體現出白領復甦的連續性。

Regarding your second question for our outlook for this year, I would start with reviewing the performance for last year.

關於你提到的第二個問題，也就是我們對今年的展望，我想先回顧去年的表現。

So since the beginning of 2023, what we witnessed was that we have seen improvement sequentially from Q1 to Q4, until Q1 of this year, for the consecutive five quarters.

因此，自 2023 年初以來，我們看到從第一季到第四季度，一直到今年第一季度，連續五個季度都在不斷改善。

And that observation has been proved by our quarter-on-quarter sequential growth data, and we hope that trend can continue within this year.

我們的季度環比成長數據證實了這一觀察結果，我們希望這一趨勢今年能夠繼續下去。

And for the first quarter this year, as Phil just discussed, we are expecting our calculated cash billings to have at least 12% of quarter-over-quarter growth compared to the fourth quarter last year.

正如菲爾剛才所討論的，今年第一季度，我們預計計算出的現金帳單將與去年第四季相比至少成長 12%。

And given my experience and observations for the operation, I'm pretty sure that in the second quarter, we will continue to have sequential growth.

根據我的經驗和營運觀察，我確信第二季我們將繼續實現連續成長。

And that concludes my answer to your question.

這就是我對你的問題的回答。

Thank you.

謝謝。

Timothy Zhao, Goldman Sachs.

高盛的趙蒂姆（Timothy Zhao）

(spoken in foreign language)

（用外語說）

Thank you for taking my questions and congrats on the very strong results.

感謝您回答我的問題，並祝賀您取得如此優異的成績。

I have two questions here.

我有兩個問題。

First, we noticed that some of our competitors have increased marketing spending post the Chinese New Year.

首先，我們注意到我們的一些競爭對手在農曆新年後增加了行銷支出。

Could management share your growth strategy for this year's user growth and marketing campaigns.

管理層能否分享今年的用戶成長和行銷活動的成長策略。

Have you observed any incremental change in the competitive landscape?

您是否觀察到競爭格局有任何漸進的變化？

And second question is your outlook regarding this year's operating expenses as well as a profitability margin?

第二個問題是您對今年的營運費用以及盈利率的展望？

Thank you.

謝謝。

Thank you for your question.

感謝您的提問。

Regarding the competitive landscape, yes, we have noticed the newly published third party data.

關於競爭格局，是的，我們注意到了新發布的第三方數據。

And we are quite aware of our own data.

我們非常了解我們自己的數據。

The conclusion is that we don't notice any fundamental changes regarding the competitiveness landscape.

結論是我們沒有註意到競爭格局有任何根本變化。

And for some of our peers who increased their investment in marketing after Spring Festival this year, because some of them are not public companies, we cannot have their data.

還有我們一些同行，今年春節後加大了行銷投入，因為他們有些不是上市公司，我們無法拿到他們的數據。

But I have been within this industry for a long time.

但我在這個行業已經工作很久了。

So I know that because there are some signs of improvement from the revenue side, people are more willing to invest in the marketing to spend more, which I believe is a reasonable explanation and also echoed by our own data.

所以我知道，因為從收入來看有一些改善的跡象，人們更願意在行銷上投入更多的錢，我相信這是一個合理的解釋，也得到了我們自己的數據的呼應。

So this is actually a positive sign for me because not only us but whole industry are recovering or moving up.

所以這對我來說實際上是一個積極的信號，因為不僅我們，而且整個行業都在復甦或上升。

So we are not the only duck within the warming water and for our user growth target, we are still targeting for at least 40 million newly verified users this year.

因此，我們並不是唯一一家處於升溫狀態的公司，對於我們的用戶成長目標，我們今年仍將目標定為至少新增 4,000 萬驗證用戶。

Because, as you said, our peers have increased their investment on marketing.

因為正如您所說，我們的同行加大了對行銷的投入。

So I will not discuss too much on the detail, but I can guarantee you that we will still spend money reasonably.

所以我不會在細節上討論太多，但我可以向你保證，我們仍然會合理地花錢。

I don't have the feeling to increase a lot of our marketing expenses, so it's not actually necessary.

我並不覺得需要增加太多的行銷費用，所以其實沒有必要。

So we will spend reasonably in a reasonable range.

所以我們會在合理的範圍內合理地花錢。

At the same time, we will maintain our strong competitive edge in terms of user penetration, in terms of market share, and the whole leading position, and that's the answer to your first question.

同時，我們將在用戶滲透率、市場份額以及整體領先地位方面保持強大的競爭優勢，這就是你第一個問題的答案。

So regarding the user acquisition, definitely there will be expenses.

所以對於用戶獲取來說，一定會有費用。

So simply speaking, we would like to keep our user growth at a quick or fast pace, but meanwhile, we would like to keep selling and marketing as a percentage of revenue at most flat or in better scenario would be slightly lower than 2023.

因此簡單地說，我們希望保持用戶快速成長，但同時，我們希望銷售和行銷佔收入的百分比最多保持平穩，或者在更好的情況下略低於 2023 年。

So this is the selling and marketing percentage of revenue.

這是銷售和行銷收入的百分比。

So regarding the gross margin trend, in the short term due to seasonality, Q4 is a low quarter.

因此就毛利率趨勢而言，短期內由於季節性原因，第四季度是一個較低的季度。

So gross margin was affected slightly.

因此毛利率受到輕微影響。

So Q1, the gross margin to be flat.

因此第一季的毛利率將保持持平。

And this is mainly because of the high online revenue contribution, which involves higher payment processing fees in short term.

這主要是因為線上收入貢獻較高，導致短期內支付處理費用較高。

But for the full year of 2024, we would like to see gross margin improvement mainly due to the leverage from a personnel cost backed by a quick revenue growth.

但就 2024 年全年而言，我們希望看到毛利率改善，這主要得益於快速收入成長帶來的人員成本槓桿作用。

So basically, simply speaking, gross margins are to be further improving in 2024.

因此，基本上，簡單地說，毛利率將在 2024 年進一步提高。

As I just mentioned, selling and marketing expenses, so rest of other items like R&D and G&A, we won't expect to increase these expenses aggressively.

正如我剛才提到的，銷售和行銷費用，以及研發和一般行政費用等其他項目，我們不會大幅增加這些費用。

So operating margin and bottom line will continue to see up trends.

因此營業利益率和利潤將持續呈上升趨勢。

So basically, we would like to keep most of the costs or expenses lines in the self-disciplined manner.

所以基本上，我們希望以自律的方式保持大部分成本或費用線。

So therefore we can leverage and drive by our faster business or revenue growth for the full year.

因此，我們可以利用並推動全年更快的業務或收入成長。

And that concludes our answer to the question.

這就是我們對這個問題的回答。

Operator, let's proceed to the next question.

接線員，我們繼續下一個問題。

Thank you.

謝謝。

Yang Bai, CICC.

白楊，中金公司。

(spoken in foreign language)

（用外語說）

My first question is what's your company strategy of commercialization this year?

我第一個問題是，貴公司今年的商業化策略是什麼？

And what are the expected trends in the payment ratio and ARPU?

預計付費比例和ARPU趨勢如何？

And my second question is what is the progress of the Company on the blue-collar business and what is the future planning and direction for the blue-collar sector?

第二個問題，公司在藍領業務的進展怎麼樣，未來在藍領領域的規劃和方向是什麼？

Thank you.

謝謝。

I'll answer the first question regarding the monetization or commercialization for our business.

我將回答有關我們業務的貨幣化或商業化的第一個問題。

So we just reported that for the latest quarter, there was 5.2 million, trailing 12 months paid enterprise customers.

我們剛剛報告稱，最新季度，過去 12 個月付費企業客戶數量為 520 萬。

So this was a historical high.

因此，這是一個歷史最高紀錄。

Regarding our commercialization, there were two components.

關於我們的商業化，有兩個組成部分。

One is the paying ratio, another is ARPU.

一個是付費率，一個是ARPU。

So we expect that in terms of the paid enterprise customers in 2024, we would like to continue to see the growth of the paid enterprise customers sequentially.

因此，我們預計，就 2024 年的付費企業客戶而言，我們希望繼續看到付費企業客戶數量持續成長。

And in terms their ARPU, the blended ARPU in the last quarter drop a little bit.

就他們的 ARPU 而言，上個季度的混合 ARPU 略有下降。

This is mainly because of the contribution from small, medium-sized enterprises; their revenue contribution is bigger because of the fast growth from SME companies, and the blended effect makes the blended ARPU drop a little bit.

這主要是由於中小企業的貢獻；由於中小企業的快速成長，其收入貢獻較大，而混合效應導致混合ARPU略有下降。

But when you look at small and medium-sized accounts and the key accounts separately, you would see both of them, their ARPU increased in the last quarter.

但是，當你分別查看中小型帳戶和重點帳戶時，你會發現它們的 ARPU 在上個季度都有所增加。

So their ARPU all increased, respectively.

因此他們的 ARPU 都分別增加了。

And in terms of the paying ratio, compared with 2022, the overall paying ratio increased by 3-percentage-points in 2023.

從支付率來看，與2022年相比，2023年整體支付率增加了3個百分點。

At this moment, the paying ratio for the platform is still at a low level.

目前，平台的付費比例仍處於較低水準。

So we believe there would be still room to grow.

因此我們相信仍有成長空間。

So it will take several years to gradually increase the paying ratio for us.

所以我們需要幾年的時間來逐步提高付費率。

And in short term, the paid enterprise customers growth mainly comes from the user growth, and as we just mentioned our marketing strategy, so basically in this year, we will still continue to acquire users at a very quick or fast pace.

短期來看，付費企業客戶的成長主要來自於用戶的成長，正如我們剛才提到的行銷策略，所以基本上今年我們仍然會繼續以非常快的速度獲取用戶。

So basically that will contribute us with new users, new business users, new paid enterprise customers.

所以基本上這將為我們提供新用戶、新商業用戶、新付費企業客戶。

And for the longer term, we expect paying ratio to continue to grow.

從長遠來看，我們預計支付率將繼續成長。

And the recovery from large enterprises as Jonathan just mentioned, with that definitely will increase their ARPU.

正如喬納森剛才提到的，大型企業的復甦肯定會提高他們的 ARPU 值。

So paying ratio increase and ARPU increase, those two parts have good potentials will support our long-term growth with our commercialization.

因此付費率提高和ARPU提高，這兩個部分具有良好的潛力，將支持我們的商業化長期成長。

I will briefly talk about the blue-collar business.

我簡單講一下藍領產業。

So our blue-collar business has been experiencing continued healthy growth.

因此我們的藍領業務一直在持續健康成長。

So the data point to support that is our revenue grew by 32% year-on-year.

因此，支持這一點的數據是我們的收入同比增長了 32％。

However, the revenue contribution from blue collar goes up by 6-percentage-points from 28% to 34%, which is a very powerful demonstration of the good performance of our blue collar business.

然而，藍領業務的收入貢獻卻上升了6個百分點，從28%上升到34%，這非常有力地證明了我們藍領業務的良好表現。

And there are four detailed sectors within blue collars, which are urban service manufacturing constructions and warehousing and logistics.

藍領內部再細分為四個產業，分別為城市服務業、製造業、建築業、倉儲物流業。

Every subsectors -- numbers of users have been less than white collar, however, combined together they are quite a considerable amount.

每個子行業的用戶數量雖然都少於白領，但是加起來也是相當可觀的。

So we need to better serve them.

所以我們需要更好地為他們服務。

Withing Urban service sector, we have been doing well.

在城市服務業方面，我們一直表現良好。

We have a good recognition and reputation.

我們擁有良好的認可度和聲譽。

So we also make money from there.

因此我們也從那裡賺錢。

Within manufacturing, we are still on a very hard exploration, which has been going for a while.

在製造業中，我們仍在進行非常艱難的探索，這已經持續了一段時間了。

We talked about there are four players within manufacturing recruitment business which are the factories, which is the employers, the workers, the agents -offline agents, who have been playing there for a long time.

我們談到，製造業招聘業務中有四個參與者，即工廠、雇主、工人、代理商（線下代理商），他們在那裡已經參與了很長時間。

And the last one is the platform.

最後一個是平台。

So for the game is that in a considerably long time, within those four parties, among two or three of them, there have been contradictory situation.

所以對於這個遊戲來說，在相當長的一段時間裡，這四個政黨之間，有兩三個政黨之間存在著矛盾的情況。

So actually it is a zero-sum game.

所以其實這是一場零和遊戲。

But we have been exploring for quite a long time and we made some progress.

但我們已經探索了相當長一段時間，也取得了一些進展。

And also the industry situation for manufacturing in the past two or three years has been quite different from previous periods.

而且最近兩三年製造業的產業情勢與前期有很大不同。

So we will continue to work on that area.

因此我們將繼續致力於該領域。

So that's my update on our progress on blue collar business.

這就是我對藍領業務進展的最新消息。

And that does conclude our question for CICC.

我們對中金公司的提問到此結束。

And Operator, let's move to the next question.

接線員，我們進入下一個問題。

Robin Zhu, Bernstein.

羅賓朱，伯恩斯坦。

(spoken in foreign language)

（用外語說）

So two questions, please.

請問我有兩個問題。

One, it's good to see management raise the buyback in the coming year.

首先，很高興看到管理階層在來年增加回購規模。

So can you share some thoughts on capital return policy going forward and the monthly pace of buybacks, given there's almost $2 billion of cash on the balance sheet and will the company commit to a systematic capital return program going forward as revenue and cash flows grow.

那麼，考慮到資產負債表上有近 20 億美元的現金，您能否分享一些關於未來資本回報政策和每月回購速度的想法？

Second, I’m keen to hear management talk about future product development and specific ways the company can leverage AI to capture more value and profit and the recruiting process.

其次，我渴望聽管理層談論未來的產品開發以及公司利用人工智慧來獲取更多價值和利潤的具體方法以及招聘流程。

Also loves an update on overseas expansion if management has any sort of concrete plans?

如果管理層有任何具體計劃，是否也希望了解海外擴張的最新情況？

Thank you.

謝謝。

Thank you for your question.

感謝您的提問。

So regarding the cash allocation, to make fast arrangement, optimize the allocation of company's capital and continuing to increase shareholder return is the duty for any public company, any management of public company, and any CEO of any public company, our pursuit, and our duty.

所以對於現金配置，快速的做出安排，優化公司資金的配置，持續的提高股東回報，是任何一家上市公司的責任，是任何一家上市公司的管理層的責任，是任何一家上市公司的CEO的責任，是我們的追求，更是我們的職責。

And we have roughly as I said RMB15 billion cash on hand.

正如我所說，我們手頭上的現金大約有150億元。

So for me, the priority to use this cash, there are priorities.

所以對我來說，優先使用這筆現金是有優先順序的。

The top priority will always be: we will use our money for future development, for user growth, to expand our advanced model to more user groups, to more industries, areas in the country to initiate our business.

最優先的永遠是：我們會把錢用在未來的開發上，用在用戶的成長上，把我們先進的模式拓展到更多的用戶群體，拓展到全國更多的行業、更多的地區，開展我們的業務。

And the second priority is to provide shareholder returns.

第二個優先事項是提供股東回報。

We are currently exploring a possibility following our initial special cash dividend last year to pay cash dividends continuously in the future.

我們目前正在探索繼去年首次特別現金股利之後未來持續派發現金股利的可能性。

The last one is from share repurchase perspective.

最後一個是從股票回購的角度。

We just approved this $200 million new repurchase program.

我們剛剛批准了這項2億美元的新回購計畫。

That's what we have been doing and we will continue to do.

這就是我們一直在做的事情，我們會繼續做下去。

So we want to utilize this share buyback program to guarantee our shareholder, their shareholding percentage.

所以我們希望利用這個股票回購計畫來確保我們的股東及其持股比例。

And in the future, we will coordinate between all these several methods or several ways to provide the best returns to our shareholders.

而未來我們會把這幾種方式或幾種途徑協調，為我們的股東提供最好的回報。

And for the AI investment, our policy, like we just discussed, first is to keep up with the latest leading technology and teams to avoid any knowledge gap, generational gap compared with the first-tier team.

對於人工智慧的投資，我們的政策就像我們剛才討論的，首先是跟上最新的領先技術和團隊，以避免與第一線團隊有任何知識差距和代溝。

And secondly, we will continue to pursue the industrial implementation and not to blindly making investments to compete with chips, compete with spending electricity powers, which is not worthwhile.

第二，我們會繼續推進產業落地，不會盲目地投入去爭晶片、爭電力，這是不值得的。

We will spend our money cleverly.

我們將明智地花錢。

Regarding the opportunity that AI has brought about for our company and for our industry, I would like to share with you one of my understanding, which is, if development cannot proceed without artificial intelligence, AI, then we need to invest that.

關於人工智慧為我們公司、為我們產業帶來的機遇，我想跟大家分享我的一個理解，如果沒有人工智慧，發展就離不開AI，那麼我們就需要投資它。

If something can function quite well, even without AI, then we should be quite cautious on the investments.

如果某些東西即使沒有人工智慧也能很好地運作，那麼我們就應該對投資非常謹慎。

That is the distinguish between whether we should spending more on the industrial perspective.

這就是我們是否應該在工業角度上投入更多資金的差異。

And about the overseas business, which many of the investors may concern, our policies are also quite clear.

至於許多投資人關心的海外業務，我們的政策也是比較明確的。

First is we will go overseas to make money. second, so we want to make money from wealthy people.

第一是我們要去海外賺錢。第二，我們想從有錢人身上賺錢。

Third, the recruitment and job seeking business is quite serious regarding the power and protection of jobseekers, which has a quite high requirement for the local labor law.

第三，招募求職業務對於求職者的權力與保障比較嚴格，當地勞動法的要求比較高。

And fourth, so based on those requirements and considerations we will invest in the top five or six GDP countries or areas, where the legal environment are quite clear and mature and the enterprises are used to pay for services, all those traditional business model can be good money.

第四，基於這些要求和考慮，我們會在GDP排名前五、六的國家或地區進行投資，這些國家的法律環境比較清晰和成熟，企業習慣於為服務付費，所有這些傳統的商業模式都可以帶來豐厚的收入。

So that is quite clear, we will go to mature market, good laws and wealthy people.

所以很明顯，我們將走向成熟的市場、良好的法律和富裕的人民。

That's our strategy for the oversea business.

這就是我們的海外業務策略。

And for your reference, and that wraps us our answers for those questions.

供大家參考，這就是我們對這些問題的答案。

And due to the time constraint, that will be the last question.

由於時間限制，這將是最後一個問題。

So operator?

那麼操作員？

Thank you.

謝謝。

At this time, I will turn the conference back to one pay for any additional or closing remarks.

現在，我將把會議轉回原點，以便發表任何補充言論或結束語。

Okay, thank you once again for joining us today.

好的，再次感謝您今天加入我們。

If you have any further questions, please contact our team directly, and thank you.

如果您還有其他問題，請直接聯絡我們的團隊，謝謝。

That does conclude today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect your line.

現在您可以斷開線路了。

Thank you.

謝謝。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present

本記錄中被標記（翻譯）的部分是由在場的翻譯人員朗讀的

on the live call.

在現場通話中。

The interpreter was provided by the company sponsoring this event.

翻譯由贊助此活動的公司提供。