Kanzhun Ltd (BZ) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited third quarter 2024 financial results conference call.

女士們、先生們，感謝大家的支持，歡迎參加看準有限公司2024年第三季財務業績電話會議。

(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 would like to turn the conference over to Ms. Wenbei Wang, Head of Investor Relations.

現在，我想把會議交給投資人關係主管王文蓓女士。

Please go ahead, ma'am.

請繼續，女士。

Thank you, operator.

謝謝你，接線生。

Good evening, and good morning, everyone.

大家晚上好，早安。

Welcome to our third quarter 2024 earnings conference call.

歡迎參加我們的 2024 年第三季財報電話會議。

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

今天加入我的是我們的創辦人、董事長兼執行長趙鵬先生；以及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 beliefs that involve known and unknown risks, uncertainties and other factors not under 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信念，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，可能會導致實際結果、公司的業績或成就有重大差異。

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.

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

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

在今天的電話會議中，管理階層還將討論某些非公認會計準則財務指標，僅供比較之用。

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

有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務表現的調整表，請參閱今天發布的收益報告。

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 Founder, Chairman, and CEO.

此外，本次電話會議的網路直播重播將在我們的網站 ir.zhipin.com 上提供。現在，我將把電話轉給喬納森創辦人、董事長兼執行長。

(interpreted) Hello, everyone.

（譯）大家好。

Thank you for joining our company's third quarter 2024 earnings conference call.

感謝您參加本公司 2024 年第三季財報電話會議。

On behalf of the company's employees, management team and the Board of Directors, I would like to extend our sincere gratitude to our users and investors who have continuously believed in us and supported us.

我謹代表公司員工、管理團隊和董事會，向一直以來相信我們、支持我們的用戶和投資者致以誠摯的謝意。

Let's talk about financial numbers for this quarter first.

我們先來談談本季的財務數據。

The company achieved a revenue of RMB1.91 billion, up 19% year-on-year and a net income of RMB460 million.

公司實現營收19.1億元，年增19%，淨利4.6億元。

Additionally, our adjusted operating income, which excludes share-based compensation expenses, reached RMB610 million, reflecting a 10% year-on-year growth.

此外，扣除股權激勵費用後，我們的調整後營業收入達到人民幣6.1億元，較去年同期成長10%。

During the third quarter, which coincided with Olympic Games and the Euro Cup 2024, the Company allocated additional resources to brand promotion which led to an increase in marketing expenses.

第三季度，適逢奧運和2024年歐洲盃，公司分配了更多資源用於品牌推廣，導致行銷費用增加。

It was a one-off expenditure.

這是一筆一次性支出。

Our annual profit growth target remains firmly on track.

我們的年度利潤成長目標仍然堅定不移。

Additionally, it is worth mentioning that, as a Company listed on Nasdaq for 3.5 years and with a secondary primary listing on Hong Kong Exchange for 2 years, our share-based compensation expenses, which have historically accounted for a relatively high proportion of our revenue have entered anticipated pace of gradual reduction.

此外，值得一提的是，作為一家在納斯達克上市3.5年並在香港聯交所二次上市2年的公司，我們的股權激勵費用歷來占我們收入的較高比例已進入預期逐步減少的步伐。

In this quarter, these expenses demonstrated a decline both on a year-on-year and quarter-on-quarter basis.

本季度，這些費用年比和季均有所下降。

Reflecting on the quarter, our efforts can be summarized into two sentences.

回顧本季，我們的努力可以概括為兩句話。

While the overall recruitment market environment remained challenging, the Company's unwavering focus on key growth drivers continue to yield positive results.

儘管整體招聘市場環境仍然充滿挑戰，但公司堅定不移地專注於關鍵成長動力，並繼續取得積極成果。

Now, let's take a look at the few notable highlights from the third quarter.

現在，讓我們來看看第三季的幾個值得注意的亮點。

First, our user growth continued to demonstrate strong growth momentum.

首先，我們的用戶成長持續展現出強勁的成長動能。

As we all know, user growth has always been an important growth driver for us.

眾所周知，用戶成長一直是我們重要的成長動力。

In this quarter, the average monthly active users on our BOSS Zhipin app reached 58 million, representing a 30% year-on-year increase.

本季度，BOSS直聘平均月活躍用戶達5,800萬，較去年同期成長30%。

From January to September 2024, newly added verified users exceeded 40 million.

2024年1月至9月，新增認證用戶超過4000萬人。

Compared to the job seeker side, recruitment demand from enterprises showed a more moderate but steady upward trajectory.

與求職者相比，企業的招募需求呈現較為溫和但穩定的上升趨勢。

The number of newly posted job positions in the third quarter increased by 18% year-on-year.

第三季新增職缺數量年增18%。

This growth is mainly driven by the user growth and market share expansion, fueled by our relatively efficient business model.

這一成長主要是由用戶成長和市場份額擴大所推動的，而這得益於我們相對高效的商業模式。

The second thing in the third quarter, the growth of short-term paying ratio, affected by supply and demand, has been slowed down.

第三季的第二件事是，受供需影響，短期支付比率成長放緩。

Despite this, the retention of enterprise users remained solid, and the number of paid enterprise customers experienced a decent growth.

儘管如此，企業用戶的留存依然穩固，付費企業客戶數量也出現了不錯的成長。

From July to September, the ratio of job seekers to enterprise users continued its upward trend since the second quarter, with a gap compared to the same period last year continuing to widen.

7月至9月，求職者與企業用戶的比例延續第二季以來的上升趨勢，與去年同期相比差距持續擴大。

Relatively more job seekers has shortened the recruitment cycle for enterprises, that is, the time it takes for enterprises to fill a vacant position is reduced.

相對較多的求職者縮短了企業的招募週期，也就是企業填補職缺所需的時間減少。

In the short term, this may affect the enterprise users' willingness to pay, leading to a slower growth of the Company's paying ratio.

短期內，這可能會影響企業用戶的付費意願，導致公司付費比例成長放緩。

However, we have observed that the retention rate on the enterprise side remains solid.

然而，我們觀察到企業端的保留率仍保持穩定。

This is definitely good news in the long term.

從長遠來看，這絕對是個好消息。

Investors and analysts who focus on enterprise service market should have recognized that when the number of annual paying enterprise customers reaches a scale of million, the retention of enterprise customers becomes decisive and it is a prerequisite for sustained growth.

關注企業服務市場的投資人和分析師應該要意識到，當年度付費企業客戶數量達到百萬規模時，企業客戶的留存就變得具有決定性，是持續成長的前提。

The total number of paid enterprise customers for the 12 months ended September 30, 2024, reached around 6 million, up 22% year-on-year.

截至2024年9月30日的12個月付費企業客戶總數達到約600萬戶，較去年同期成長22%。

The third thing, that is the average revenue per paid enterprise customers, namely ARPPU, has remained stable.

第三，每位付費企業客戶的平均收入，即ARPPU，維持穩定。

Fourth, in the blue-collar manufacturing sector, we are committed to "purifying the market environment" while striving to expand our "friends circle" and continue to achieve satisfactory growth.

第四，在藍領製造業，我們致力於“淨化市場環境”，同時努力擴大“朋友圈”，並繼續取得令人滿意的成長。

Our strategy focuses on providing high-quality recruiting companies with greater opportunities to connect with candidates, leveraging a combination of innovative products, refined algorithms, and robust operational capabilities.

我們的策略重點是利用創新產品、完善的演算法和強大的營運能力的組合，為高品質的招聘公司提供更多與候選人聯繫的機會。

In terms of data on our platform, in the third quarter, the accumulated number of enterprises joining Hailuo "Conch" project grew by 45% quarter-on-quarter, and signed contract value increased by over 40% quarter-on-quarter.

從平台數據來看，三季度，累計加入海螺「海螺」專案的企業數量較上季成長45%，簽約金額較上季成長40%以上。

As a result, this also helped the revenue contribution from overall blue-collar business in terms of total revenue further increased to more than 38%.

這也使得整體藍領業務的營收貢獻在總營收的佔比進一步提升至38%以上。

Fifth, the company continues to invest in technology to create greater value.

五是公司持續投入技術，創造更大價值。

In the third quarter, our platform facilitated an average of nearly 200 million monthly mutual achievements, demonstrating a continued rise in the number of successful interactions based on mutual consent between enterprise users and job seekers on a per capita basis.

第三季度，平台月均促成近2億次互成就，企業用戶與求職者的人均共識成功互動次數持續上升。

As an entrepreneur, I and my friends, all view this data as a testament to the value our company brings to the world.

身為一名企業家，我和我的朋友們都將這些數據視為我們公司為世界帶來價值的證明。

And this has always been the goal that our company will long pursue.

這也一直是我公司長期追求的目標。

Last, regarding shareholder returns, the company has repurchased around $130 million worth of shares since our last earnings call, bringing the total repurchases for this year to approximately $220 million, representing 3.4% of our total shares.

最後，關於股東回報，自上次財報電話會議以來，該公司已回購了價值約 1.3 億美元的股票，使今年的回購總額達到約 2.2 億美元，占我們總股本的 3.4%。

This underscores the Company's confidence in our long-term growth prospects and our commitment and concern to delivering sustained returns to shareholders in any circumstances.

這凸顯了公司對長期成長前景的信心，以及我們在任何情況下為股東提供持續回報的承諾和關注。

That concludes my part of the call.

我的電話會議到此結束。

I will now turn to CFO, Phil, for the overview of our financials.

我現在請財務長菲爾概述我們的財務狀況。

Thank you.

謝謝。

Thanks, Jonathan.

謝謝，喬納森。

Hello, everyone.

大家好。

Now let me walk through the details of our financial results of the third quarter of 2024.

現在讓我詳細介紹一下 2024 年第三季的財務表現。

We delivered a solid set of financial results in this quarter despite the industry headwind, with revenue grew by 19% year-on-year to RMB1.9 billion.

儘管產業逆風，我們本季仍取得了穩健的財務業績，營收年增 19% 至 19 億元。

This growth was mainly driven by the continued expansion of our enterprise user base as we further penetrated into blue collar industries, lower-tier cities, as well as small-sized companies' market, even facing a generally soft recruitment market.

這一成長主要是由於我們進一步滲透到藍領產業、二、三線城市以及小型企業市場，即使面對普遍疲軟的招募市場，企業用戶群的持續擴張也推動了我們的成長。

Number of paid enterprise customers was 6 million in the trailing 12 months ended September 30, 2024, up by 22% year on year and 2% quarter on quarter.

截至2024年9月30日的過去12個月，付費企業客戶數量為600萬，較去年同期成長22%，較上季成長2%。

ARPPU in this quarter remained stable sequentially.

本季 ARPPU 環比維持穩定。

Notably, our overall operating cost and expenses were flattish quarter on quarter, even including several one-off or nonstructured expense items in this period.

值得注意的是，我們的整體營運成本和費用與上季持平，甚至包括這段期間的一些一次性或非結構性費用項目。

As one of our key focuses being sustainable cost control, we are confident that our effective business model can continue to generate strong operating leverages in the future.

由於我們的重點之一是可持續的成本控制，我們相信我們有效的業務模式能夠在未來繼續產生強大的營運槓桿。

Looking at the detailed financial metrics, excluding share-based compensation expenses, our adjusted operating cost and expenses increased by 23% year on year to RMB1.3 billion, flattish quarter on quarter.

從詳細的財務指標來看，剔除股權激勵費用，調整後的營運成本和費用較去年同期成長23%至人民幣13億元，較上季持平。

Adjusted operating profit reached RMB605 million, up by 10% year on year with an adjusted operating margin of 32%.

調整後營業利益達人民幣6.05億元，較去年成長10%，調整後營業利益率為32%。

Cost of revenues increased by 17% year on year to RMB314 million in this quarter, mainly driven by higher server and bandwidth cost, payment processing costs, as well as employee-related expenses.

本季營收成本年增17%至人民幣3.14億元，主要是因為伺服器和頻寬成本、支付處理成本以及員工相關費用增加所致。

Gross margin kept at the same level of 84% as last quarter.

毛利率與上季保持在 84% 的水平。

Sales and marketing expenses increased by 14% year on year to RMB522 million in this quarter, primarily driven by the marketing campaigns launched during the Paris 2024 Olympic Games and the Euro Cup 2024.

本季銷售及行銷費用年增14%至人民幣5.22億元，主要受到2024年巴黎奧運及2024年歐洲盃期間推出的行銷活動的推動。

Excluding the sponsorship expenses, we witnessed the improved efficiency and business leverage in both our selling and marketing expenses, due to our strong brand recognition and powerful network effect inherent in our business.

除去贊助費用，由於我們業務固有的強大品牌知名度和強大的網絡效應，我們的銷售和營銷費用的效率和業務槓桿都得到了提高。

We are confident that the enhanced marketing efficiency trends will continue to improve along with our top-line growth.

我們相信，隨著我們營收的成長，行銷效率的提高趨勢將持續改善。

R&D expenses increased by 12% year on year to RMB464 million in this quarter.

本季研發費用年增12%至人民幣4.64億元。

Excluding share-based compensation expenses, adjusted R&D expenses increased by 18% year on year to RMB361 million.

剔除股權激勵費用，調整後研發費用年增18%至人民幣3.61億元。

The depreciation costs associated with our earlier investments in AI infrastructure has largely stabilized and is not expected to increase in the near future.

與我們早期對人工智慧基礎設施的投資相關的折舊成本已基本穩定，預計在不久的將來不會增加。

Our G&A expenses increased by 31% year on year to RMB286 million in this quarter, mainly due to higher employee-related expenses and some one-off expenditures that will not occur in the coming year.

本季我們的一般及行政費用年增31%至人民幣2.86億元，主要是由於員工相關費用增加以及一些明年不會發生的一次性支出。

Our net income was RMB464 million in this quarter, up 9% year on year.

本季淨利為人民幣4.64億元，年增9%。

And our adjusted net income in this quarter reached RMB739 million and increased by 4% year on year, which was affected by the decrease in the interest and investment income.

本季調整後淨利為人民幣7.39億元，年增4%，主要是受到利息和投資收益下降的影響。

Total share-based compensation expenses amounted to RMB275 million in this quarter, down by 9% quarter on quarter and 5% year on year.

本季股權激勵費用總額為人民幣2.75億元，季減9%，年減5%。

As Jonathan just mentioned, we are expecting total share-based compensation expenses to continue the downward trend in 2025.

正如喬納森剛才所提到的，我們預期 2025 年股票薪資支出總額將持續呈下降趨勢。

Net cash provided by operating activities in this quarter was RMB812 million, relatively stable with that of the same period of last year.

本季經營活動提供的現金淨額為人民幣8.12億元，與去年同期相比相對穩定。

As of September 30, 2024, our cash and cash equivalents, short-term time deposits and short-term investments totaled RMB14.6 billion.

截至2024年9月30日，我們的現金及現金等價物、短期定期存款及短期投資總額為人民幣146億元。

We launched an additional share repurchase program in August 2024, running concurrently with the March program, which allows us to buy back up to USD350 million of shares.

我們於 2024 年 8 月啟動了一項額外的股票回購計劃，與 3 月的計劃同時運行，使我們能夠回購高達 3.5 億美元的股票。

Since the announcement of the August program, as Jonathan just mentioned, we have repurchased a total consideration of approximately USD130 million making the total buyback amount reached USD220 million this year, demonstrating our commitment in shareholders' return and long-term confidence of our business.

正如Jonathan剛才所提到的，自8月計畫公佈以來，我們已回購總代價約1.3億美元，使今年回購總額達到2.2億美元，體現了我們對股東回報的承諾和對我們業務的長期信心。

And now, for our business outlook.

現在，談談我們的業務前景。

For the fourth quarter of 2024, we expect the total revenues to be between RMB1.795 billion and RMB1.81 billion, a year on year increase of 13.6% to

2024年第四季度，我們預計總營收將在17.95億元人民幣至18.1億元之間，年增13.6%至

[14.6%] (correcte by company after the call).

[14.6%]（電話後公司更正）。

That concludes our prepared remarks.

我們準備好的演講到此結束。

And now we would like to answer questions.

現在我們想回答問題。

Operator, please go ahead with the queue.

接線員，請繼續排隊。

(Operator Instructions) Eddy Wang, Morgan Stanley.

（操作員指示）Eddy Wang，摩根士丹利。

(interpreted) Thank you, management, for taking my questions.

（解釋）謝謝管理層回答我的問題。

I have two questions.

我有兩個問題。

The first one is that the government has launched some supportive policy since September end.

第一個是9月底以來政府推出了一些支持政策。

Have you witnessed any signs of this policy has helped to boost the recruitment market and have witnessed any operating metrics improvements as well?

您是否見證了這項政策有助於提振招聘市場的任何跡象，並見證了營運指標的任何改善？

The second question is, given the uncertainty of the macro economy, which could sustain into 2025, how should we think we could maintain the revenue growth in 2025?

第二個問題是，考慮到宏觀經濟的不確定性可能會持續到2025年，我們應該如何看待2025年的收入成長？

Thank you.

謝謝。

(interpreted) Thank you for your question.

（翻譯）謝謝你的提問。

About the first one regarding the supporting policy since the end of September, I have several observations to share with you.

關於9月底以來的第一個支持政策，我有幾點看法可以跟大家分享。

Firstly, we noticed that the newly added enterprise users every day has been improving on a year-on-year basis since the end of October.

首先我們注意到，從10月底開始，每天新增的企業用戶數量較去年同期都在增加。

And please note that November and December are traditionally relatively low season for recruitment.

請注意，11 月和 12 月傳統上是招募相對淡季。

However, the newly added enterprise users improving on a year-on-year basis since October, my understanding is that this is a good news.

不過從10月以來新增的企業用戶年比有所提高，我的理解是這是一個好消息。

And this trend has continued into November and December.

而且這種趨勢一直持續到11月和12月。

And the second thing about the job seeker to recruiter ratio, which I believe many of you are concerned, have been continuing to fall back.

關於求職者與招募人員的比例的第二件事，我相信你們很多人都擔心，這一比例一直在持續下降。

I have just discussed in my prepared remarks that during July to September, that number is high compared to the same period last year, and now it is lower than the same period last year, and reached a relatively low level within this year, which means the supply and demand imbalance issue is improving.

剛才我在準備的發言中講到，7月份到9月份，這個數字比去年同期高，現在比去年同期低，今年內達到了一個較低的水平，這意味著供需失衡問題正在改善。

And despite of the good new signs, my understanding is that this supporting policy takes some time to transfer into actual improvement of economy and actual improvement of enterprise recruitment demand.

儘管出現了良好的新跡象，但我的理解是，這項扶持政策要轉化為經濟的實際改善和企業招募需求的實際改善，還需要一段時間。

So this should take some time, and we should stay patient and calm.

所以這需要一些時間，我們應該保持耐心和冷靜。

About the second question, facing the uncertainty of macro, how we can guarantee our continued revenue growth trend, we have several key structural growth drivers for our revenue, which is still unchanged.

關於第二個問題，面對宏觀的不確定性，我們如何保證我們收入持續成長的趨勢，我們收入有幾個關鍵的結構性成長動力，這個仍然沒有改變。

The first thing is the user growth.

首先是用戶成長。

Even of all these uncertainties, we expect that we can still have at least 15% of overall user growth.

即使存在所有這些不確定性，我們預計仍然可以實現至少 15% 的整體用戶成長。

The enterprise side might be slower, but still it can grow.

企業方面可能會慢一些，但仍然可以成長。

And if the macro can be stable at some level, then we expect enterprise side to have better performance.

而如果宏觀能夠在某種程度上保持穩定，那麼我們預期企業端會有更好的表現。

So our user growth as the most important driver is still quite solid.

所以我們的用戶成長作為最重要的驅動力仍然相當穩固。

And the second important driver is that our paying ratio can still maintained at a stable level.

第二個重要的驅動因素是我們的付費比例仍然可以保持在穩定的水平。

If you're looking back, our paying ratio started at even like 0% or 5% and improved along these years, now reaching like 20% to 30% level.

如果你回顧一下，我們的支付比例一開始甚至是 0% 或 5%，這些年來一直在提高，現在達到了 20% 到 30% 的水平。

And so the upward trend is unchanged.

所以上升趨勢沒有改變。

And another opinion is that the increase of paying ratio has some connection with supply-demand balance, and as the sign of the supply-demand balance improving, we expect that, if the economy can be stable, our paying ratio can return to our growth trend.

另一種觀點認為，支付率的提高與供需平衡有一定關係，作為供需平衡改善的標誌，我們預計，如果經濟能夠穩定，我們的支付率能夠恢復增長。

If the macro can actually go back to growth, then our paying ratio will experience a significant improvement.

如果宏觀經濟真的能夠恢復成長，那麼我們的支付率將會有顯著的改善。

And the third driver is our ARPPU.

第三個驅動因素是我們的 ARPPU。

As far as we have got the first and second driver, we are not in a hurry to aggressively increase ARPPU, so it will keep at a stable and slightly improvement trend.

就目前第一、第二位駕駛的情況來看，我們並不急於大幅提升ARPPU，因此會維持穩定且略有提升的趨勢。

And I have an additional revenue growth driver which is our blue-collar business.

我還有一個額外的收入成長動力，那就是我們的藍領業務。

Our blue collar contributed more than 38% in the third quarter of our total revenue.

我們的藍領在第三季貢獻了我們總營收的38%以上。

This is a quite important breakthrough.

這是一個相當重要的突破。

Several years ago, I have an idealistic thought that I want to resolve the problem in the blue-collar manufacturing recruitment industry, which is the bad money driven on the good money, and people with decent background cannot get good jobs.

幾年前，我有一個理想主義的想法，就是要解決藍領製造業招募業的問題，就是劣幣驅趕良幣，出身好的人找不到好工作。

So we launched the "Conch" Hailou Project in the hope of someday, one day, the top good quality agents can agree with our rules to do recruitment business on our platform.

所以我們發起了「海螺」海樓項目，希望有一天、有一天，優質的優質代理商能夠同意我們的規則，在我們的平台上做招聘業務。

And now we have saw some real money coming back from this, which is our dreams coming into the reality.

現在我們已經看到了一些真正的資金回報，這就是我們的夢想變成了現實。

That's my answer to your question.

這就是我對你問題的回答。

Timothy Zhao, Goldman Sachs.

提摩西·趙，高盛。

(interpreted) My first question is regarding the more detailed breakdown into the third quarter, including the customer performance between the blue collar and white-collar sectors as well as different subsectors as well.

（解釋）我的第一個問題是關於第三季更詳細的細分，包括藍領和白領部門以及不同子部門之間的客戶表現。

And as mentioned, that ARPPU overall is relatively stable in the third quarter.

如前所述，第三季 ARPPU 整體相對穩定。

Could you mention provide more color in terms of ARPPU and revenue trends between SMEs and key accounts?

您能否提及在中小企業和大客戶之間的 ARPPU 和收入趨勢方面提供更多資訊？

And second question is regarding the user growth.

第二個問題是關於使用者成長。

I think as management mentioned that in the first nine months of this year, they were already 40 million newly added verified users and in my calculation, the individual users should already reach or get close to 200 million, could management share about the quarter room for the individual users to grow.

我想正如管理層所提到的，今年前九個月，他們已經新增了4000萬驗證用戶，根據我的計算，個人用戶應該已經達到或接近2億，管理層是否可以分享大約四分之一的空間個人使用者的成長。

And as we are aiming for 15% or more than that growth into next year, how should we think about the sales and marketing expenses or the marketing expenses into next year?

由於我們的目標是明年成長 15% 或以上，我們應該如何考慮明年的銷售和行銷費用或行銷費用？

Thank you.

謝謝。

(interpreted) First one, regarding different blue and white-collar industries.

（解讀）第一，關於不同的藍領和白領產業。

Of course, the overall growth rate of blue collar is still faster than white collar.

當然，藍領的整體成長速度仍快於白領。

As I just mentioned, the revenue contribution of blue-collar has further increased to over 38%.

正如我剛才提到的，藍領收入貢獻進一步提高到38%以上。

However, compared to the same period last year, we have seen that blue-collar revenue growth rate has been significantly slowing down, which was mainly affected by the weak urban service industry performance.

但與去年同期相比，我們看到藍領營收成長明顯放緩，這主要是受到城市服務業表現疲軟的影響。

Compared to blue-collar, white-collar is relatively stable.

與藍領相比，白領相對穩定。

In terms of subsectors, as I just said, the urban service industry has been relatively weak since the second quarter, however, recovered a little bit in recent weeks.

從細分行業來看，剛才我已經講了，城市服務業第二季度以來一直比較疲軟，但最近幾週有所回升。

For the better performed industries, we have several highlight: manufacturing industries, logistics and warehouse, automobile are three best-performing industries in the third quarter and the recent weeks.

對於表現較好的產業，我們有幾個亮點：製造業、物流倉儲、汽車是第三季和最近幾週表現最好的三個產業。

For example, the manufacturing industry has a year-on-year revenue growth of more than 45% in the third quarter.

例如，製造業第三季營收年增超過45%。

And about the different size of enterprises, we noticed it on the two ends of the market.

而對於企業規模的不同，我們在市場的兩端也注意到了這一點。

First one is super-scale enterprises with more than 10,000 employees performed the best in the third quarter.

一是第三季表現最好的是萬人以上超規模企業。

The second one is small and micro-sized enterprises with employees less than 100 people.

二是從業人員100人以下的小型企業。

My understanding is that this is actually a quite good news because majority of China's enterprises are small sized companies, which is also the main contribution for our new enterprise users.

我的理解是，這其實是一個很好的消息，因為中國的企業大多都是小企業，這也是對我們新企業用戶的主要貢獻。

I'd like to add one point in regard to our three accounts breakdown.

我想就我們的三個帳戶細目補充一點。

Key accounts recorded the highest revenue growth, up more than 30% year over year.

大客戶收入增幅最高，較去年同期成長超過30%。

The overall ARPPU was up 5% year over year, flat quarter over quarter.

整體 ARPPU 較去年同期成長 5%，較上季持平。

Among all three segments, key accounts' ARPPU improved the most.

在所有三個細分市場中，大客戶的 ARPPU 提高幅度最大。

(interpreted) And about your second question for our user growth potential, it's actually a quite good question.

（解釋）關於我們的用戶成長潛力的第二個問題，這實際上是一個很好的問題。

So we have actually started through several different channels or methodologies and come to a conclusion that the number of China's marketable employees are more than 400 million, which means we have a double space to grow.

所以我們實際上是透過幾個不同的管道或方法論開始得出的結論，中國的適銷對路的員工數量超過4億，這意味著我們有一個雙倍的成長空間。

And on the enterprise side, the room or space is even bigger.

而在企業方面，空間甚至更大。

Official number is that China has 40 million to 50 million enterprises, some channels say even more than 50 million.

官方數據是中國有4000萬至5000萬家企業，有的管道說甚至超過5000萬家。

No matter what, we have very strong advantage in terms of enterprise side services because our model are very suitable for small or even micro-sized companies and across different industries, which can support a very strong and large room for our enterprise users.

不管怎樣，我們在企業端服務方面有非常強的優勢，因為我們的模式非常適合小型甚至微型公司，跨不同的行業，可以為我們的企業用戶提供非常強大和巨大的空間。

We are not planning to spend a lot of money on marketing or user acquisition.

我們不打算在行銷或用戶獲取上花費大量資金。

There are two reasons: first, due to a very strong double-sided network effect, the natural traffic has accounted for a very significant portion of our new users.

原因有二：第一，由於非常強的雙面網路效應，自然流量在我們的新增用戶中佔據了非常大的比例。

And the second reason is, technically speaking, there is no big events or marketing campaign, which we need to spend more money on.

第二個原因是，從技術上來說，沒有大型活動或行銷活動需要我們花更多的錢。

So as a result, we will keep our marketing spend at a relatively low level.

因此，我們將把行銷支出保持在相對較低的水平。

And that's my answer to your question.

這就是我對你問題的回答。

Wei Xiong, UBS.

熊偉，瑞銀。

(interpreted) My first question is on blue-collar recruitment.

（解釋）我的第一個問題是關於藍領招募的。

Could management maybe share your future growth strategy for the blue-collar business around manufacturing and other verticals.

管理階層能否分享您圍繞製造和其他垂直領域的藍領業務的未來成長策略。

Do we plan to build our offline service capabilities for the blue-collar recruitment?

我們是否打算打造藍領招募的離線服務能力？

And also, have we observed any change in the competitive landscape here?

此外，我們是否觀察到這裡的競爭格局有任何變化？

And second, just on the profitability outlook for next year.

其次，關於明年的獲利前景。

I understand the management has shown a very strong commitment to protecting profitability in light of the macro uncertainties.

據我了解，鑑於宏觀不確定性，管理層對保護獲利能力表現出了非常堅定的承諾。

So if we just look at our profit goal for the next year, what do we see as the major drivers for profitability improvement?

那麼，如果我們只看明年的利潤目標，我們認為獲利能力改善的主要驅動力是什麼？

And is there any potential new investments that we should consider?

我們是否應該考慮任何潛在的新投資？

Thank you.

謝謝。

(interpreted) We just talked about the improvement we have in the blue-collar, especially in the manufacturing factory.

（解釋）我們剛才談到了我們在藍領方面的進步，特別是在製造工廠方面的進步。

So the essence of that is actually an idea or concept becoming reality, which is that factories, intermediaries, workers, and platforms, those four parties can coexist under one co-recognized game rules, which can allow everyone to be more efficient and earn money with dignity.

所以本質其實就是一個想法或概念變成現實，就是工廠、中介、工人、平台這四方可以在一個共同認可的遊戲規則下共存，可以讓大家都更有效率，都可以賺錢。

And now that idea has come into reality.

現在這個想法已經成為現實。

So this is actually a very hard process.

所以這其實是一個非常艱難的過程。

And I will talk again about essence, which is every player, the factories, agents, workers, and platforms, they are all battling against the short-term interest and long-term interest.

我再講一下本質，就是每個玩家，工廠、代理商、工人、平台，他們都在與短期利益和長期利益奮鬥。

For example, one manufacturing worker who is quite clearly aware that he's working salary should be in the RMB6,000 per month range.

例如，一位製造業工人非常清楚自己的工作工資應該在每月6000元左右。

However, if someone post a job of RMB15,000 per month, it is quite hard for him to resist the attempt to submit a resume.

但如果有人發布月薪15,000元的工作，他就很難抗拒投履歷的誘惑。

So it is a fight between a potential job and a secured working opportunity.

因此，這是潛在工作和有保障的工作機會之間的鬥爭。

And just the example I just said is actually a real worker facing the current market conditions.

而剛才我說的例子，其實就是一個真正的勞動者面對現在的市場狀況。

In a good season, that peak salary can raise to around RMB8,000 per month.

旺季時，薪水最高可達每月8,000元左右。

So I control the related similar kind of jobs with salary range no more than RMB8,000.

所以我控制了相關類似的工作，薪資範圍不超過8000元。

If we have that, I have foundation to your two questions.

如果我們有這個，我就有了你的兩個問題的基礎。

And the question about the competitive landscape.

還有關於競爭格局的問題。

So if I continue to control the workers' salary range, which job posting can be no higher than RMB8,000 per month.

所以如果我繼續控制工人的薪資範圍，那麼每個月的招募就不能高於8000元。

In short term, I may not be able to compete with the platform allowing people to post jobs with over RMB15,000 per month.

短期內，我可能無法與每月15,000元以上發布職缺的平台競爭。

But in the long term, I have a strong advantage because I actually return the truth of this job position.

但從長遠來看，我有很強的優勢，因為我實際上回到了這個工作職位的真相。

And the second about how committed I will invest to do the offline placement, because currently what we are doing is quite difficult and need a lot of input from every level.

第二個是我將如何投入線下投放，因為目前我們所做的事情相當困難，需要各層面的大量投入。

So I hope I can continue to do that, which we have already established very clear advantages.

所以我希望我能繼續這樣做，我們已經建立了非常明顯的優勢。

So in the short term, I won't invest heavily in the placement.

所以短期內我不會在配售上投入大量資金。

I will continue our current game with those four participants.

我將繼續與這四位參與者進行當前的遊戲。

And hopefully, we can have good results.

希望我們能取得好的結果。

And the second question, I will give a short but a clear answer.

第二個問題，我會給出一個簡短但明確的答案。

So facing all these difficulties, we need to find out which thing is definitely right to do.

所以面對這些困難，我們需要找出哪件事是絕對正確的。

And we believe, to guarantee our profit or profitability is definitely the correct things we need to do, and we will guarantee on profit.

我們相信，保證我們的利潤或獲利能力絕對是我們需要做的正確的事情，我們會保證利潤。

And in terms of managing our next year profit target, I have very strong confidence.

對於實現我們明年的利潤目標，我有非常強大的信心。

I won't talk too much about our management details.

我不會談太多我們的管理細節。

But with one thing I can say is that we have very strong operating leverages.

但我可以說的一件事是我們擁有非常強大的營運槓桿。

So as long as we can have that, it will turn majority of our revenue into our profit.

因此，只要我們能夠做到這一點，它就會將我們大部分的收入轉化為我們的利潤。

This trend is quite clear.

這個趨勢是非常明顯的。

Regarding our Company's margin outlook in 2025, I offer some of our thoughts.

關於我們公司2025年的利潤率展望，我提供一些我們的想法。

Regarding the gross margin, we expect our gross margin will be flat or improved slightly next year.

關於毛利率，我們預計明年的毛利率將持平或略有改善。

Sales efficiency improvement will leave additional leverage to selling expenses.

銷售效率的提升將為銷售費用留下額外的槓桿。

Absolute amount of marketing spending will be kept at 2024 level or even decrease.

行銷支出的絕對金額將維持在2024年的水準甚至減少。

R&D head count likely will not increase.

研發人員數量可能不會增加。

There's no near-term actual investment to AI hardware.

近期沒有對人工智慧硬體的實際投資。

And one more thing is our new business.

還有一件事是我們的新業務。

We expect our new business spending will be with disciplined approach.

我們預計我們的新業務支出將採取嚴格的方式。

So all in all, our operating margin will further improve -- as Jonathan said, will further improve along with our top line growth.

總而言之，我們的營業利潤率將進一步提高——正如喬納森所說，隨著我們營收的成長，我們的營業利潤率將進一步提高。

So this is our view towards the margin and profit.

這就是我們對利潤和利潤的看法。

In light of the time constraint, I think we can take one last question.

鑑於時間有限，我想我們可以回答最後一個問題。

Yanyan Xiao, CICC.

肖艷艷，中金公司。

(interpreted) I have two questions.

（翻譯）我有兩個問題。

My first question is how is our overseas business progressing, and how can we balance our profit control goals with overseas business investment?

我的第一個問題是，我們的海外業務進展如何，如何平衡我們的利潤控制目標和海外業務投資？

And my second question is, we've noticed that an industry-wide trend towards AI products, like AI interviews, so how do you view the current application scenarios of AI in the recruitment field?

我的第二個問題是，我們注意到全行業都有一個人工智慧產品的趨勢，例如人工智慧面試，那麼您如何看待目前人工智慧在招募領域的應用場景？

And what potential new revenue or cost reduction opportunities might there be?

可能存在哪些潛在的新收入或成本降低機會？

Thank you.

謝謝。

(interpreted) Thank you for your question.

（翻譯）謝謝你的提問。

About your first question of our overseas business investment in relation with our profit target, so one thing is clear that next year, we won't have a very big investment in our overseas business.

關於你的第一個問題，我們的海外業務投資與我們的利潤目標有關，所以有一點是明確的，明年我們不會對海外業務有很大的投資。

This has relation to our business development methodology, which is we want to release the eagle until we see the rabbit, which means we won't increase investment heavily before we have some certainty.

這和我們的業務發展方法論有關，就是放鷹見兔，在沒有確定的情況下不會大幅增加投資。

So we have done some very small experiment with limited cost.

所以我們用有限的成本做了一些非常小的實驗。

So in our plan, we won't expect that we can clearly see that rabbit next year, so that won't affect our profit capital next year.

所以在我們的計畫中，我們不會指望明年能清楚地看到那隻兔子，這樣就不會影響我們明年的利潤資本。

In terms of AI application, actually now within the industry or actually all the industries, the reality is the high prospect of the technology cannot credit with real actual application scenario.

就人工智慧應用而言，實際上現在在行業內或實際上所有行業內，現實是該技術的高前景並不能歸功於真正的實際應用場景。

So that's a loud lightening but very small rain.

所以這是一場響亮的閃電，但雨量卻很小。

So that's an industry fact.

所以這是一個行業事實。

But I want to further explain our opinion during our industrial practice.

但我想在我們的工業實務中進一步闡述我們的看法。

The first one is, we will insist on the equality between job seekers and recruiters.

第一個是，我們會堅持求職者和招募人員的平等。

We will not allow any side to use the advantage of AI to have advantages over the other side.

我們不會允許任何一方利用人工智慧的優勢來超越對方。

And the second principle we insist is the right to know.

我們堅持的第二個原則是知情權。

So whenever a user are facing the potential counterparty of AI, and we should let that user know.

因此，每當用戶面對人工智慧的潛在對手時，我們都應該讓該用戶知道。

And the third policy we insist is that the current application scenario, which can be perfectly done without large language model, there is no necessity to let LLM to do it again, which is actually kind of waste.

而我們堅持的第三個政策是，目前的應用場景，不需要大型語言模型就可以完美完成，沒有必要讓LLM再做一次，這實際上是一種浪費。

And apart from all those theories, we have several real applications.

除了所有這些理論之外，我們還有一些實際的應用。

So in terms of protecting the safety of our users, our AI technology has been quite useful.

所以在保護我們用戶的安全方面，我們的AI技術是非常有用的。

We disclosed in the past that we have over 900 people of our security team.

我們過去透露，我們的安全團隊有超過 900 人。

And this year, we increased more than tens of millions of new users, but we did not increase the total number of our security team.

而今年我們增加了超過千萬的新用戶，但是我們的安全團隊的總數卻沒有增加。

One important reason is that we used our AI technology to assist with work, which largely increased our overall review efficiency.

一個重要的原因是我們利用了AI技術來輔助工作，這在很大程度上提高了我們整體的審查效率。

So in the history of the bad people fighting with the platform, the first principle is actually the fighting of the cost.

所以在壞人跟平台鬥爭的歷史上，第一原則其實就是成本的鬥爭。

Whenever the evil guys feel like it is not worth to do bad things on the platform, then he will not continue to do that.

當惡人覺得自己不值得在平台上做壞事的時候，他就不會繼續做下去了。

With the help of AI, we can actually increase our advantages over that.

在人工智慧的幫助下，我們實際上可以增加我們的優勢。

So it can create real value for our operation.

所以它可以為我們的營運創造真正的價值。

And that's my answer for your questions.

這就是我對你問題的回答。

And I think that's all the questions for tonight.

我想這就是今晚的所有問題。

Thank you.

謝謝。

Due to time constraint, that concludes today's question-and-answer session.

由於時間關係，今天的問答環節到此結束。

At this time, I will turn the conference back to Wenbei for any closing remarks.

此時，我將把會議轉回文貝進行閉幕致詞。

Thank you once again for joining us today.

再次感謝您今天加入我們。

If you have any further questions, please contact our IR team directly or TPG Investor Relations.

如果您還有任何疑問，請直接聯絡我們的投資者關係團隊或 TPG 投資者關係部。

Thank you.

謝謝。

Thank you for your participation.

感謝您的參與。

This does conclude the program.

這確實結束了該程式。

You may now disconnect.

您現在可以斷開連線。

Good day.

再會。