Kanzhun Ltd (BZ) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited second quarter 2025 financial results conference call. (Operator Instructions) Today's conference is being recorded.

女士們、先生們，感謝大家的支持，歡迎參加看準有限公司 2025 年第二季財務業績電話會議。（操作員指示）今天的會議正在錄製。

At this time, I would like to turn the conference over to Ms. Wenbei Wang, Head of Investor Relations. Please go ahead, ma'am.

現在，我想將會議交給投資人關係主管王文貝女士。請繼續，女士。

Thank you, operator. Good evening and good morning, everyone. Welcome to our second quarter 2025 earnings conference call. Joining me today are our Founder, Chairman and [CEO] (corrected by the company after the call), Mr. Jonathan Peng Zhao; and our Director and CFO, Mr. Phil Yu Zhang.

謝謝您，接線生。大家晚上好，早安。歡迎參加我們的 2025 年第二季財報電話會議。今天與我一起出席的還有我們的創辦人、董事長兼 [執行長]（電話會議後公司已更正）Jonathan Peng Zhao 先生；以及我們的董事兼財務長 Phil Yu Zhang 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. 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.

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、不確定性和其他公司無法控制的因素，這可能會導致公司的實際結果、業績或成就產生重大差異。本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. 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 today. In addition, a webcast replay of this conference call will be available on our website at ir.zhipin.com.

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。有關非公認會計準則 (non-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 (non-GAAP) 財務結果的對照表，請參閱今天早些時候發布的收益報告。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。

With that, I will now turn the call to Jonathan, our Founder, Chairman and CEO.

現在，我將把電話轉給我們的創辦人、董事長兼執行長喬納森。

(spoken in foreign language) (interpreted) Hello, everyone. Thank you for joining our Company's second quarter 2025 earnings conference Call. On behalf of the Company's employees, management team and Board of Directors, I would like to extend our sincere gratitude to our users, investors and friends, who have continuously believed in and supported us.

（外語）（譯）大家好。感謝您參加本公司 2025 年第二季財報電話會議。我謹代表公司全體員工、管理團隊和董事會，向一直以來信任和支持我們的用戶、投資人和朋友們表達最誠摯的感謝。

Today, I would like to report on four matters. First, our quarterly performance was good. Second, the supply-demand dynamics on our platform continue to improve. Third, we are making ongoing progress in AI. And fourth, our recent Hong Kong Share Offering and future shareholder return arrangements.

今天我想報告四件事。首先，我們的季度業績表現良好。第二，平台供需格局持續改善。第三，我們在人工智慧領域不斷取得進展。第四，我們近期的香港股票發行和未來的股東回報安排。

Let me start with an overview of our financial performance. In the second quarter, our Company achieved a total revenue of RMB2.1 billion, up 9.7% year-on-year. Our net income reached RMB710 million, reflecting a 70.4% year-on-year growth, achieving a net profit margin exceeding 33%.

首先讓我概述一下我們的財務表現。第二季度，公司實現總營業收入21億元，較去年同期成長9.7%。淨利達7.1億元，年增70.4%，淨利率超過33%。

Excluding share-based compensation expenses and other incomes, such as investment gains, our adjusted operating profit was RMB880 million, up 33% year-on-year. Share-based compensation expenses for this quarter decreased by nearly 10% quarter-on-quarter for the second consecutive quarter, amounting to RMB230 million, with the ratio to revenue narrowed by about 5 percentage points year-on-year.

扣除股權激勵費用及投資收益等其他收入，調整後營業利潤為8.8億元人民幣，較去年同期成長33%。本季股權激勵費用連續第二季較上季下降近10%，為2.3億元，佔營收比重較去年同期下降約5個百分點。

The operating leverage from the economics of scale and the efficient business model supported our high-quality growth, characterized by simultaneous improvement in both revenue and profit.

規模經濟帶來的經營槓桿和高效率的商業模式支撐了公司收入和利潤同步提升的高品質成長。

From January to July, we cumulatively added over 30 million verified new users. In the second quarter, the average verified monthly active users on the BOSS Zhipin app reached 63.56 million, up 16.5% year-on-year. Consistent with user growth and penetration trends, revenue contributions from blue collar, lower-tier cities and small and medium-sized enterprises further increased compared to last year.

1月至7月，我們累計新增驗證用戶超過3000萬。第二季度，BOSS直聘App平均認證月活躍用戶數達6,356萬，較去年同期成長16.5%。與用戶成長和滲透率趨勢一致，來自藍領、低線城市和中小企業的收入貢獻比去年進一步增加。

Second, during the second quarter and graduation season, we saw notable improvements in our platform's job supply and demand dynamics. Specifically, on the job seeker side, incremental job seeking demand from fresh graduates moderated, with number of newly added verified graduates declining over 20% year-on-year in June and July. On the employer side, recruitment demand for fresh graduates also increased. The number of new job postings for fresh graduates grew by over 18% year-on-year for the same period.

第二，在第二季和畢業季，我們看到平台的就業供需動態明顯改善。具體來看，從求職者角度來看，應屆畢業生求職需求增量有所放緩，6月、7月新增核實畢業生數量較去年同期下降均超過20%。雇主方面，對應屆畢業生的招募需求也有所增加。同期應屆畢業生新增就業人數較去年同期成長18%以上。

This aligns with the overall trend of recovery in the recruitment market. In July, the number of newly posted jobs on our platform increased by approximately 20% year-on-year. Both the number of employers posting new jobs and average number of jobs posted per recruiter were higher than the same period last year. The improvement in supply and demand relationship also led to a significant year-on-year decrease in the C/B ratio for new users. Improved supply-demand dynamics also drove positive changes in monetization. The total paid enterprise customers in the 12 months ended June 30 reached 6.5 million, up 10% year-on-year.

這與招聘市場復甦的整體趨勢一致。7月份，我們平台新發布的職缺數量年增約20%。發布新職缺的雇主數量和每位招募人員平均發布的職缺數量均高於去年同期。供需關係的改善也導致新增用戶C/B比年比大幅下降。供需動態的改善也推動了貨幣化的正面改變。截至6月30日的12個月內，付費企業客戶總數達到650萬，年增10%。

From industry perspective, blue-collar manufacturing experienced a short-term slowdown in April due to tariffs but resumed year-on-year growth from May onwards, with growth rates continuing to outpace other industries. Urban service sector saw accelerated year-on-year growth in the second quarter. We observed a noticeable recovery in the Internet industry with the number of active job postings in the second quarter reaching a new high since 2021, led by product and technical roles.

從產業角度來看，藍領製造業4月受關稅影響出現短期放緩，但5月起恢復年比成長，且成長率持續超過其他產業。第二季城鎮服務業年增。我們觀察到網路產業明顯復甦，第二季活躍職缺發布數量達到2021年以來的新高，其中產品和技術職缺領先。

Third, the Company's continued progress in AI, I will stick to the three perspectives, AI to job seekers, AI to enterprise users, and AI to management. First, AI to job seekers. The AI interview training robot has made some new progresses. This robot now starts to play a role in recommendations. Upon job seekers consent, we use data obtained during the interview process to recommend positions to job seekers, and users who participate in the experimental group have achieved higher efficiency.

第三，公司在AI方面的持續推進，我會堅持三個視角，AI面向求職者，AI面向企業用戶，AI面向管理階層。首先，人工智慧助力求職者。人工智慧面試培訓機器人取得一些新進展。這個機器人現在開始在推薦方面發揮作用。在求職者同意的情況下，我們利用面試過程中獲得的數據向求職者推薦職位，參與實驗組的使用者獲得了更高的效率。

We continue to iterate AI-assisted user search. For users participating in the test, not only the AI can give more explanation for the research results, it can also provide dynamic content summaries, job search strategy planning and resume optimization guides based on user queries. Users in the experimental group gained more mutual achievements.

我們不斷迭代AI輔助用戶搜尋。對於參與測試的用戶來說，AI不僅可以對研究結果進行更多的解釋，還可以根據用戶查詢提供動態內容摘要、求職策略規劃和履歷優化指南。實驗組用戶獲得了更多的共同成就。

In terms of protecting job seekers‘ safety, we have applied AI to identify risky users. For instance, we have trained AI to recognize more subtle aggressive language and expressions that violate platform rules. Another example is that the AI tools we developed have made preliminary progress in identifying content tampered by other AIs. This is obviously a long-term and challenging task, but we firmly believe that more people are in need of such functions.

在保障求職者安全方面，我們運用人工智慧技術辨識高風險用戶。例如，我們訓練人工智慧識別更微妙的、違反平台規則的攻擊性語言和表達。再例如，我們研發的人工智慧工具在識別被其他人工智慧竄改的內容方面取得了初步進展。這顯然是一項長期而富有挑戰性的任務，但我們堅信會有更多人需要這樣的功能。

(technical difficulty)

（技術難度）

Next, about AI to enterprises. We provide AI-assisted job posting optimization features for bosses of many newly established start-ups and junior HRs. Currently, AI assists in posting tens of thousands of job positions on a daily basis. The key point here is how to prevent turning assistant into replacement. It is difficult, but we must persist in doing so.

接下來是關於AI對企業的。我們為許多新創企業老闆和初級HR提供AI輔助發布優化功能。目前，人工智慧每天協助發布數萬個職位。這裡的關鍵是如何防止助手變成替代品。這很難，但我們必須堅持下去。

In terms of commercialization, we have extensively integrated AI to conduct experiments. For instance, we use AI to enhance the understanding of recruiter's intentions, thereby helping them select value-added services, which are more suited to their needs. Recruiters in the experimental group have made more proactive purchases, and because they have chosen more suitable products, the repeat purchase have also increased.

在商業化方面，我們廣泛結合AI進行實驗。例如，我們利用人工智慧來增強對招募人員意圖的理解，從而幫助他們選擇更適合他們需求的增值服務。實驗組招募人員的主動購買行為增加，並且由於選擇了更合適的產品，重複購買量也有所增加。

Now, AI to management. We promote the use of AI in research and development, transforming R&D tools and processes. In a certain technical department at the Beijing headquarters, 30% of the codes are now AI generated. In another city, a newly established R&D department, 70% of the codes are AI-generated. As a result, the speed of product R&D iteration and launch has significantly increased, allowing us to explore more possibilities within the same timeframe.

現在，人工智慧應用於管理。我們推動人工智慧在研發領域的應用，變革研發工具與流程。在北京總部的某技術部門，現在30%的代碼都是AI生成的。在另一個城市，一個新成立的研發部門，70%的程式碼都是由人工智慧產生的。產品研發迭代和上線的速度也顯著提升，讓我們在同樣的時間內探索更多的可能性。

AI is playing an increasingly important role in customer service. It has achieved results in training new customer service staff, automatically inspecting customer service quality and providing suggestions to recognizing and responding to customer emotion. This is crucial for improving user satisfaction and enhancing the well-being of customer service employees.

人工智慧在客戶服務中發揮著越來越重要的作用。在培訓新客服人員、自動偵測客服品質、辨識和回應客戶情緒提供建議等方面取得了成效。這對於提高用戶滿意度和增強客戶服務員工的福祉至關重要。

The last one, we would like to report our recent Hong Kong offering and shareholder return arrangements. The Company completed a Hong Kong secondary share offer of HKD2.2 billion on July 4. The primary purpose was to enhance the liquidity in Hong Kong line, allowing more investors in the Hong Kong store market to understand and participate in the Company's trading. The offer has achieved positive results with a significant increase in Hong Kong stock trading volumes compared to the pre-offering levels.

最後，我們想報告一下我們近期香港發行及股東回報的安排。公司於7月4日完成22億港元香港二次發行。主要目的是為了增強港股的流動性，讓更多港股市場的投資人了解並參與公司的交易。本次發行取得了積極成效，港股交易量較發行前大幅增加。

Regarding shareholder returns, the Board of Directors approved the two shareholder return proposals today. First, an annual dividend policy was adopted, the Company plans to pay out annual dividends going forward, with dividend of USD80 million for the current fiscal year.

關於股東回報，董事會今日批准兩項股東回報議案。一是實施年度分紅政策，公司計畫今後每年派發一次股息，本財政年度派發股息8,000萬美元。

Second, a new share repurchase program and the fifth in cumulative perspective is launched, the Company intends to repurchase up to $250 million of the shares over the next 12 months, starting August 29. We believe this fully demonstrates the Company's sincerity in actively rewarding shareholders and sharing the benefits of our sustained growth with all investors.

第二，推出新的股票回購計劃，也是累積角度來看的第五個股票回購計劃，該公司計劃從8月29日起在未來12個月內回購最多2.5億美元的股票。我們相信這充分體現了公司積極回報股東、與廣大投資者共享公司持續成長成果的誠意。

That concludes my part of the call. I'll now turn it over to our CFO, Phil, for the review of our financial.

我的通話部分到此結束。現在我將把這個任務交給我們的財務長菲爾，讓他審查我們的財務狀況。

Thanks, Jonathan. Hello, everyone. Now, let me walk through the details of our financial results of the second quarter of 2025. We continue to achieve high quality results in this quarter, represented by solid revenue growth and further improved profitability. The revenue growth this quarter was primarily attributed to the continued expansion of our user base. With the number of paying enterprise customers increased by 10% year-on-year to 6.5 million over the trailing 12 months ended June 30.

謝謝，喬納森。大家好。現在，讓我詳細介紹一下我們 2025 年第二季的財務表現。本季我們持續取得高品質的業績，表現為穩健的營收成長和獲利能力的進一步提升。本季營收的成長主要歸功於我們用戶群的持續擴大。截至 6 月 30 日的 12 個月內，付費企業客戶數量年增 10%，達到 650 萬人。

As the recruitment market demand has gradually recovered since the beginning of this year and the job seeker recruiter ecosystem has improved, the willingness of enterprise clients to pay has been rising. Among them, the recovery in recruitment demand from small and medium-sized enterprises has been more pronounced, driving a quarter-on-quarter increase in the revenue contribution from SMEs. ARPPU maintained a stable and modest growth, mainly benefiting from the expansion of paying amount from key accounts.

隨著今年以來招募市場需求逐步回暖，求職者招募生態不斷完善，企業客戶的付費意願也不斷提升。其中，中小企業招募需求復甦更為明顯，帶動中小企業收入貢獻較上季成長。ARPPU維持平穩溫和成長，主要受益於大帳戶付費金額的擴大。

Moving to the cost side. Total operating costs and expenses decreased by 7% year-on-year to RMB1.5 billion this quarter. Share-based compensation expenses dropped by 24% year-on-year and 9% quarter-on-quarter to RMB230 million, shrinking for the fourth consecutive quarters. Excluding share-based compensation expenses, adjusted income from operations grew by 33% to RMB881 million, and our adjusted operating margin in the quarter reached 41.9%, up by 7.5 percentage points year-on-year, hit a record high.

轉向成本方面。本季總營業成本及費用年減7%至人民幣15億元。股權激勵費用為2.3億元，年減24%，季減9%，連續第四季下跌。剔除股權激勵費用，調整後營業收入年增33%至8.81億元，本季調整後營業利益率達41.9%，較去年同期上升7.5個百分點，創歷史新高。

Cost of revenues decreased by 3% year-on-year to RMB307 million in this quarter, mainly due to the decrease in operational employee-related expenses as a result of the improved operational efficiency as we continue to engage AI in our daily operations. Gross margin went up by 1.9 percentage points year-on-year to 85.4%. Sales and marketing expenses decreased by 23% year-on-year to RMB420 million during this quarter, primarily driven by decreases in advertising and marketing expenses and employee-related expenses. However, our strong brand recognition, enhanced marketing efficiency and superior user engagement guaranteed that we can still maintain robust user growth momentum.

本季營業成本年減 3% 至人民幣 3.07 億元，主要由於我們繼續在日常營運中使用人工智慧，提高了營運效率，從而減少了與營運員工相關的費用。毛利率較去年同期上升1.9個百分點至85.4%。本季銷售及行銷費用年減23%至人民幣4.2億元，主要由於廣告及行銷費用及員工相關費用的減少。然而，我們強大的品牌知名度、增強的行銷效率和卓越的用戶參與度保證我們仍然可以保持強勁的用戶成長動能。

Our R&D expenses decreased by 6% year-on-year to RMB416 million in this quarter. This decrease was primarily driven by reduced public cloud service fees related to AI. Our G&A expenses increased by 19% to RMB311 million in this quarter, primarily due to an increase in employee-related expenses and investment in new initiatives.

本季我們的研發費用年減6%至人民幣4.16億元。這一下降主要是由於與人工智慧相關的公共雲端服務費用的降低。本季度，我們的一般及行政開支增加 19% 至人民幣 3.11 億元，主要由於員工相關開支和新計劃投資增加。

Our net income increased by 70% to RMB711 million in this quarter, with adjusted net income increased by 31% to RMB941 million. And margins also expanded significantly and reached a record highs: our net margin improved by 12.1 percentage points year-on-year to 33.8%, while our adjusted net margin reached 44.8%, up 7.3 percentage points year-on-year. Both of these two margins have maintained sustainable improvement over the past three consecutive quarters.

本季我們的淨收入成長70%至人民幣7.11億元，調整後淨收入成長31%至人民幣9.41億元。利潤率也大幅提升，創歷史新高：淨利潤率年增12.1個百分點至33.8%；調整後淨利率較去年同期提升7.3個百分點至44.8%。這兩個利潤率在過去連續三個季度都保持了可持續的改善。

Net cash provided by operating activities reached RMB1,052 million in this quarter, up 21% year-on-year. As of June 30, 2025, we continue to maintain a strong cash position of RMB16.0 billion. In July, we completed thee share offering of RMB34.5 million Class A ordinary shares at HKD66 per share, comprising a Hong Kong public tranche and an international tranche. Net proceeds from this share offering amounted to approximately HKD2.2 billion. This offering, on one side, improved our Hong Kong line liquidity and broadened our shareholder base, on the other side, further strengthened our cash position, gave us both the strategic flexibility and financial capacity to pursue long-term growth initiatives and enhanced our shareholder returns.

本季經營活動產生的現金流量淨額達人民幣10.52億元，較去年同期成長21%。截至2025年6月30日，我們持續維持人民幣160億元的強勁現金狀況。7月，我們完成3,450萬股A類普通股的發行，發行價為每股66港元，包括香港公開發行部分及國際發行部分。本次股票發行所得款項淨額約22億港元。此次發行一方面提高了我們香港線的流動性、擴大了股東基礎；另一方面，進一步增強了我們的現金狀況，為我們提供了追求長期增長計劃的戰略靈活性和財務能力，並提高了股東回報。

One new initiative Jonathan just mentioned is that our Board of Directors has just approved the adoption of an annual dividend policy, with a dividend amount of USD80 million for the fiscal year of 2025. Combined with a renewed USD250 million share repurchase program, out commitment to shareholder returns continued to enhance.

剛才Jonathan提到的一個新措施是，我們的董事會剛剛批准了一項年度股利政策，2025財年的股利金額為8,000萬美元。結合新的 2.5 億美元股票回購計劃，我們對股東回報的承諾不斷增強。

And for our business outlook, just like we communicated before, we expect our revenue growth to reaccelerate starting this quarter, along with the recovery of recruitment market momentum. For the third quarter of 2025, we expect our total revenues to be between RMB2.13 billion and RMB2.16 billion, a year-on-year increase of 11.4% to 13%.

對於我們的業務前景，正如我們之前所傳達的，隨著招聘市場勢頭的復甦，我們預計從本季度開始我們的收入成長將重新加速。2025年第三季度，我們預計總營收在21.3億元至21.6億元之間，年增11.4%至13%。

This concludes our prepared remarks. And now we would like to answer questions.

我們的準備好的演講到此結束。現在我們想回答問題。

(Operator Instructions) Eddy Wang, Morgan Stanley.

（操作員指示） 摩根士丹利的 Eddy Wang。

(spoken in foreign language) (interpreted) I have two questions. The first one here is the recruitment demand recovery we witnessed on BOSS Zhipin platform in the second quarter and July - is there any different driver for such recovery this time versus before? For example, has the food delivery battle led to the search in service industry blue-collar recruitment demand? Do you think the recruitment demand in the second quarter is sustainable or not, how is your view and outlook for the third quarter?

（以外語說）（翻譯）我有兩個問題。第一個問題是，我們在第二季和7月份見證了BOSS直聘平台的招募需求復甦——這次復甦的驅動因素與之前有什麼不同嗎？例如，外送之爭是否引發了服務業藍領招募需求的搜尋？您認為第二季的招募需求是否可持續，對三季的招募需求有何看法與展望？

And the second question is that you mentioned previously that in your R&D department most of the code has been generated by AI. So what's your view on the AI’s impact on the white collar recruitment, especially on hiring demand of the programmers?

第二個問題是，您之前提到，你們的研發部門大部分的程式碼都是由人工智慧產生。那麼您如何看待人工智慧對白領招聘，特別是程式設計師招募需求的影響？

(spoken in foreign language) (interpreted) Thank you for your question. About the recovery trend of the recruitment market compared to before, we saw a small feature and big feature. The small one is the job postings from Internet sector have recovered to a new high since 2021, as we just communicated. And the big one is that the smaller size or micro size enterprises have been recovering much faster.

（以外語說）（翻譯）感謝您的提問。這次招聘市場的復甦趨勢跟之前相比，我們看到了一個大的特點，一個小的特點。小一點就是網路產業的招募職位已經恢復到了2021年以來的新高，剛才我們也介紹了。最重要的是，小型企業或微型企業的復甦速度要快得多。

One data to share with you that the company with less than 20 employees in the second quarter, its revenue contribution goes up to almost 20%, which represents our highest growth rate among all different type of companies.

跟大家分享一個數據，第二季20人以下的公司，其營收貢獻率上升到接近20%，這是我們在所有類型公司中最高的成長率。

Let’s expanding the size a little bit to companies with less than 100 employees. The year-on-year growth rate of new job postings by those companies have also significantly exceeded the platform's overall level.

讓我們將規模稍微擴大到員工人數少於 100 人的公司。這些企業新增招募職位的年比成長率也大幅超過了平台的整體水準。

About your question of the impact of the food delivery competition, our observations is that the impact is quite minor. Because the data shows that the job postings related to riders/food delivery guys has been quite small among all of our job postings and we also haven't observe any higher than average level of revenue growth from those jobs.

關於你提到的外賣競爭的影響，我們觀察發現影響比較小。因為數據顯示，在我們所有的招募資訊中，與騎士/送餐員相關的職位發布數量相當少，而且我們也沒有觀察到這些職位的收入增長高於平均水平。

About your third question, whether this recovery could be sustainable, our view is positive. I have several evidence for you. First one is we have communicated before that the very poor job seeker to recruiter ratio starting last July, the situation has been improved since last November 2024, which, by that time, has recovered to the same period of November 2023. After that, the job seeker to recruiter ratio dynamics have been continued to improve, and in the second quarter, we have seen much more obvious recover for that number, which we have just communicated.

關於你的第三個問題，即這種復甦是否能夠持續，我們的看法是正面的。我有幾個證據可以給你。首先，我們之前已經溝通過，從去年 7 月開始，求職者與招募者的比例非常低，這種情況自 2024 年 11 月以來有所改善，到那時，已經恢復到 2023 年 11 月的同期水準。此後，求職者與招募者的比例動態一直在持續改善，並且在第二季度，我們看到該數字出現了更為明顯的回升，正如我們剛才所傳達的那樣。

From daily operation, our business growth rate in the third quarter is expected to further accelerate compared to the second quarter, which I have quite confident in. And that's our answer to the question, and operator, let's move on to the next question.

從日常營運來看，我們第三季的業務成長率預計比第二季會進一步加快，我對此還是比較有信心的。這就是我們對這個問題的回答，接線員，我們繼續下一個問題。

Wei Xiong, UBS.

熊偉，瑞銀。

(spoken in foreign language) (interpreted) I have two questions. First is our margins continue to expand this year to a very high level. So given such a high base, how should we think about the margin trend in the next year and beyond? And also considering our healthy and stable margins and cash flow, what do we consider as the most important investment areas going forward?

（以外語說）（翻譯）我有兩個問題。首先，我們的利潤率今年繼續擴大到非常高的水平。那麼，考慮到如此高的基數，我們該如何看待明年及以後的利潤率趨勢？同時考慮到我們健康穩定的利潤率和現金流，我們認為未來最重要的投資領域是什麼？

Second, it looks like some start-up companies are ramping up advertising investment recently. Does it affect our marketing and user acquisition cost? How do we assess the impact on the competition landscape in blue collar segment and online recruit market overall as well as our competitive modes?

第二，最近一些新創公司似乎正在加大廣告投入。這會影響我們的行銷和用戶獲取成本嗎？如何評估對藍領領域和網路招募市場整體競爭格局以及我們的競爭模式的影響？

So thanks for the question. I'll answer the margin question first. You are right that our margin continues to improve. We think that this is mainly related to our business model. Because we run an online recruitment marketplace, the scale effect brought by our Company's business model is significant.

感謝您的提問。我先回答一下保證金問題。您說得對，我們的利潤率持續提高。我們認為這主要與我們的商業模式有關。由於我們經營的是在線招聘市場，因此公司的商業模式帶來的規模效應非常顯著。

We believe this is the fundamental reason for the continuous improvement of our profit margins. And the Company in the past several quarters, we implemented effective cost control to make sure we put our focus on the high-quality part of growth, which kept our cost growth rate lower than that of revenue.

我們認為這是我們利潤率不斷提高的根本原因。並且公司在過去幾個季度實施了有效的成本控制，確保將重點放在高品質的成長部分，從而使成本成長率低於收入成長率。

So along with our revenue steady growth, the direction of gradual improvement of our profit margin is quite clear, and this is a definite. But we believe the margin improving is a long-term thing and it should run step by step, not all of a sudden, not grow too fast or too high in the short term.

所以隨著我們營收的穩定成長，我們利潤率逐步提升的方向是比較明確的，這是一個確定性。但我們認為利潤率的提高是一個長期的過程，應該循序漸進，不能一次提高，短期內不能成長過快或過高。

So basically, in terms of the areas that we would like to invest, we will continue to invest into our business. And our future investment priorities remain consistent with our previous ones, mainly focusing on R&D innovation and new business initiatives et cetera.

因此，基本上，就我們想要投資的領域而言，我們將繼續投資我們的業務。我們未來的投資重點與以往保持一致，主要集中在研發創新和新業務計畫等方面。

And you also can see that we generated a very healthy cash flow. So in this quarter, we generated more than RMB1 billion operating cash flow. Actually, this is the consecutive two quarters. In the first quarter, the operating cash flow is also above RMB1 billion. So we already had two consecutive quarters with over RMB1 billion operating cash flow.

您還可以看到我們產生了非常健康的現金流。因此，本季我們產生了超過10億元的營運現金流。實際上，這是連續兩個季度。第一季經營性現金流也在10億元以上。因此，我們已經連續兩個季度實現超過10億元人民幣的營運現金流。

And with such healthy cash reserves, we will mainly use our cash at talent development, probably that overseas expansion and more importantly, shareholder return programs in the future. So that's my comment related to the margin and how to use our cash in the future.

有瞭如此健康的現金儲備，我們將主要用於人才發展、海外擴張，更重要的是，未來的股東回報計畫。這就是我對利潤率以及未來如何使用現金的評論。

Jonathan can answer the second question.

喬納森可以回答第二個問題。

(spoken in foreign language) (interpreted) About the second question, yes, we do observe that many of our peers will do some advertising marketing events in certain seasons including both mature companies or startups. But so far till now the impact to us is quite limited.

（外語）（翻譯）關於第二個問題，是的，我們確實觀察到許多同行會在某些季節做一些廣告行銷活動，包括成熟的公司和新創公司。但到目前為止，對我們的影響還相當有限。

But my observation or my understanding is that at this current stage, the meaning of a marketing war is very small. I want to clarify one thing which is that even though our marketing expenses as a percentage of revenues continue to decline, but on the absolute amount basis, we are still investing in the largest marketing and advertising expenses among the industry.

但我的觀察或理解是，在現階段，行銷戰的意義已經很小了。我想澄清一點，雖然我們的行銷費用佔收入的比例不斷下降，但從絕對金額來看，我們仍然是業界中行銷和廣告費用投入最大的。

In the meantime, due to our very powerful double-sided network effect and our very high user acquisition efficiency, we can maintain a very robust user growth while our user acquisition cost still kept at a quite low level. And also, our user retention is the highest among our peers.

同時，由於我們非常強大的雙邊網路效應和非常高的用戶獲取效率，我們可以保持非常強勁的用戶成長，同時我們的用戶獲取成本仍然保持在相當低的水平。而且我們的用戶保留率也是同業中最高的。

So to sum up, we have a very strong marketing investment. Our user acquisition efficiency is high, and our user retention is high. So that's why I say at current stage it is quite meaningless to start a marketing war.

總而言之，我們的行銷投資非常強勁。我們的用戶獲取效率很高，用戶留存率也很高。所以我說在現階段發起行銷戰是沒有意義的。

And we would like to answer the second question from Eddy about whether AI will replace the programmers. So from our own situation is that, yes, our recruitment for entry-level programmers have been slowing down, but we are still hiring. We are focusing on those people who have more potentials who are much more smarter - can break down questions and look from a bigger picture perspective. I think that's also happening in many other technology companies.

我們想回答Eddy的第二個問題，人工智慧是否會取代程式設計師。所以從我們自己的情況來看，是的，我們對入門級程式設計師的招募一直在放緩，但我們仍在招募。我們關注的是那些更有潛力、更聰明的人——他們可以分解問題並從更廣闊的視角看待問題。我認為這種情況也發生在許多其他科技公司。

And so what I'm facing to recruiting the entry-level programmers are, I'm spending more money, more recruitment costs to hire the people with more talent or more potential. So actually, we might somehow increase the recruitment cost for those type of people. I think that's also happening to many other technology companies.

因此，我在招募入門級程式設計師時面臨的問題是，我花更多的錢、更多的招募成本來聘請更有才華或更有潛力的人。因此實際上，我們可能會以某種方式增加這類人才的招募成本。我認為許多其他科技公司也正在發生這種情況。

So my thinking on this issue is that in the past, the normal structure is one senior programmer with some junior level team to do more simplified jobs. Now it will turn into one senior programmer or senior technical guy with AI. But the salary we need to pay and the hiring efforts we need to invest to hire that the senior guy actually increases.

所以我對這個問題的想法是，在過去，正常的結構是一個高級程式設計師和一些初級團隊來完成更簡化的工作。現在它將變成一名擁有人工智慧的高級程式設計師或高級技術人員。但我們需要支付的薪水和我們需要投入的招募精力來聘請資深員工實際上增加了。

And the junior engineer or junior programmer as a percentage of overall white collar employees, which in our country might be more than 100 million, my gut feeling is less than 2%. So that tranche to the impact of hiring of white collar is very limited. That's our answer to the question. And operator, let's move on to the next one.

而初級工程師或初級程式設計師佔整體白領員工的比例，在我們國家可能超過 1 億，我的直覺是不到 2%。所以該批對白領招募的影響非常有限。這就是我們對這個問題的回答。操作員，我們繼續下一個。

Timothy Zhao, Goldman Sachs.

高盛的趙蒂姆。

(spoken in foreign language) (interpreted) Two questions from my side. First is regarding the AI application or AI features. If management can introduce more details about the specific use scenarios on the enterprise side and what kind of commercial product that we are thinking of. Also, we note that recently, the Company leveraged AI to develop mini programs or applications of different features. Just wondering from your perspective, which ones have the more commercial potential?

（以外語說）（翻譯）我有兩個問題。首先是關於AI應用或AI功能。如果管理階層可以更詳細地介紹企業方面的具體使用場景，以及我們正在考慮什麼樣的商業產品。另外，我們注意到，最近該公司利用人工智慧開發了具有不同功能的小程式或應用程式。只是想知道從您的角度來看，哪些具有更大的商業潛力？

And secondly, is regarding your recent financing activities in Hong Kong market. And we're very glad to see you also announced the share repurchase and annual dividend policy this year. Just wondering if management can share what is your thoughts on the capital markets going forward? For example, what are your plans to improve the liquidity in the Hong Kong market? And what are the detailed dividend plan that you have in your mind?

第二，關於你們最近在香港市場的融資活動。我們很高興看到你們也宣布了今年的股票回購和年度股利政策。只是想知道管理階層是否可以分享您對未來資本市場的看法？例如，您有什麼計劃來提高香港市場的流動性？您心中的具體分紅計畫是怎樣的？

(spoken in foreign language) (interpreted) Actually, yes, we do have some good progress on the AI product development side. Actually, we have been broadly doing some new product launches and development. So I can give you more examples.

（外語）（翻譯）實際上，是的，我們在人工智慧產品開發方面確實取得了一些良好的進展。實際上，我們一直在廣泛地進行一些新產品的發布和開發。所以我可以給你更多的例子。

The first one is an agent. We developed a recruitment agent called Hammer. Currently, we use it with approximately 500 recruiters daily. The recruiters can complete the majority of their work on our platform by simply interacting with Hammer through dialog. Of course, this part should have the job seekers consent. And so sometimes job seekers might say no, but if job seeker is okay, the Hammer will complete its job until achieving an exchange of resume information or achievement on our platform.

第一個是代理人。我們開發了一款名為 Hammer 的招募代理。目前，我們每天大約有 500 名招募人員使用它。招募人員只需透過對話與 Hammer 互動，即可在我們的平台上完成大部分工作。當然，這部分是需要徵得求職者的同意的。所以有時候求職者可能會說不，但如果求職者同意，Hammer 就會完成它的工作，直到在我們的平台上實現履歷資訊或成就的交換。

We will attach very great patient to iterate this agent Hammer. Rather than saying that we are using new technology to validate what we have already known in the industry, Hammer actually will led us to even greater unknown.

我們將非常耐心地迭代這個代理 Hammer。與其說我們在用新技術去驗證產業中已知的事物，Hammer實際上將引領我們走向更大的未知。

And our progress on Hammer is actually quite restraint. But the second one, we have been more aggressive. So the second example is where the job seekers has more tolerance towards these products, and the recruiters have higher leverage in terms of the negotiation progress. So it's actually a product we designed for large state-owned enterprises, which have just launched.

而我們在Hammer上的進展其實是相當克制的。但第二次，我們變得更加積極主動。所以第二個例子是求職者對這些產品的容忍度更高，招募人員在談判過程中有更高的籌碼。所以它實際上是我們為大型國有企業設計的產品，剛剛推出。

Currently, this system allows for customization of digital human avatars, interview questions and interview reports. It also supports AI-powered follow-up questions, multi-model candidate emotion recognition and image recognition. Using this technology, we have supported over 20 AI-powered interview events for recent graduates at over 10 large state-owned enterprises, attracting nearly 30,000 participants, and the response has been positive so far.

目前，該系統支援數位人頭像、面試題、面試報告的客製化。它還支援人工智慧後續問題、多模型候選人情緒識別和圖像識別。利用此技術，我們已為10多家大型央企的應屆畢業生舉辦了20多場人工智慧面試活動，吸引了近3萬人次參與，反應良好。

I think that we have a lot of those examples, and that also should be quite common in many other companies. Actually, I felt that the combination of AI technology and the current products or application in technology, management and daily operation is still at early stage. So the new technology combined with old business, for this matter, the more revolutionized the product is, the more it will resemble Brownian motion. So the killer level applications will be generated from those movements. So we have enough patients, and we have enough assets to wait for that kind of application to be born.

我認為我們有很多這樣的例子，而且在許多其他公司中也應該很常見。其實我感覺AI技術跟現在的產品或應用在技術、管理、日常營運上的結合還處於比較早期的階段。所以新技術跟舊業務結合，就這個意義上來說，產品越革命性，越像布朗運動。因此殺手級應用將會從這些運動中產生。因此，我們有足夠的患者，也有足夠的資產來等待這種應用程式的誕生。

So the AI everybody cares about, we are also quite cared about. And the fundamental principle is just treating it like a Brownian motion. The next stage is AI will be everything in our daily life.

所以大家關心的AI，我們也比較關心。其基本原理就是將其視為布朗運動。下一階段，人工智慧將融入我們的日常生活。

Okay. So I'll answer the second question. So as you know that the Company has a very healthy cash balance on hand, we have more than RMB16 billion cash reserve. And in terms of operating cash flow, every quarter, we have incremental more than RMB1 billion inflow.

好的。那我來回答第二個問題。因此，如您所知，公司手頭上的現金餘額非常健康，我們有超過160億元人民幣的現金儲備。在經營性現金流方面，我們每季都有超過10億元的增量流入。

So basically, the Company does not need to raise money from the market. So our capital activity, our fundraising activity in July - the purpose of that activity is to improve our Hong Kong line liquidity. Because in the past, we got public listed in Hong Kong by introduction without issuing new shares. So that made us with a very poor liquidity in our Hong Kong stock trading. We want to solve this problem.

所以基本上，公司不需要從市場上籌集資金。因此，我們的資本活動、我們 7 月的募款活動 — — 活動的目的是提高我們香港線的流動性。因為過去我們在香港上市都是透過介紹的方式，沒有發行新股。這導致我們在香港股票交易中的流動性非常差。我們想解決這個問題。

And we think that solving this problem could be both beneficial to the Company and beneficial to our investors, to our shareholders. So that's why we took a very rare approach to launch a public offering in Hong Kong. The offering was very successful and all the participating investors all made money and our Hong Kong line liquidity realized a breakthrough and our liquidity started to improve since the offering.

我們認為解決這個問題不僅對公司有利，對我們的投資者和股東也有利。這就是為什麼我們採取非常罕見的方式在香港進行公開募股。發行非常成功，參與的投資者全部獲利，我們港線流動性也實現了突破，發行之後流動性開始改善。

So what I'm saying is that the Company we consider shareholders as our partners, and we consider the shareholder return a very important topic. And in the past, we mainly use share repurchase program to return cash to the shareholders. We totally already launched a full phase. And the total purchased shares amounted about USD 400 million.

所以我想說的是，我們將股東視為我們的合作夥伴，我們認為股東回報是一個非常重要的議題。過去，我們主要使用股票回購計畫向股東返還現金。我們已經全面啟動了一個階段。此次收購股份總額約4億美元。

So this time, the Company renewed our share repurchase program and also we announced our annual dividend policy. We make this as a regular routine and make it an annual thing. So basically, every year, we will consider our operating situations and pay dividend to our shareholders. And this year, for the fiscal year of 2025, we announced USD80 million for the dividend for this year.

因此，這一次，公司更新了股票回購計劃，並宣布了年度股利政策。我們將此作為一項常規事務，並使其成為一項年度事務。所以基本上每年我們都會考慮我們的經營狀況並向股東派發股利。今年，也就是2025財年，我們宣布今年的股利為8,000萬美元。

And our Hong Kong line liquidity, because of the share of the public share offering, we raised HKD2.2 billion. That's roughly USD280 million. But compared with our renewed share repurchase program, which is USD250 million, plus our USD80 million annual dividend. So our announced amount is already higher than the amount that we raised in our earlier public offering. So that also showed that we had a good commitment to our shareholders' returns.

而我們的港線流動性，因為公開發行股票的份額，我們籌集了22億港幣。這大約是 2.8 億美元。但與我們更新的股票回購計畫相比，該計畫為 2.5 億美元，加上我們 8,000 萬美元的年度股利。因此，我們宣布的金額已經高於我們先前公開發行時籌集的金額。這也顯示我們對股東回報做出了良好的承諾。

And one last thing related to our shareholder returns is that our share-based compensation as an expenses, we received the comments from shareholders that say share-based compensation was once a little high, and we control these expenses. And from the results, you can see that in the past several quarters, these expenses continued to decline in terms of total amount and in terms of percentage to the revenues.

與我們的股東回報相關的最後一件事是，我們的股權激勵作為一項費用，我們收到股東的評論說股權激勵曾經有點高，我們控制這些費用。從結果中我們可以看出，在過去的幾個季度中，這些費用的總額和占收入的百分比都在持續下降。

So all above, just evidence or some kind of things that have showed our attitude towards the shareholders' return. And we consider this is a very important thing, and we will continue to do that in the future.

所以以上這些只是一些證據或一些東西，顯示了我們對股東回報的態度。我們認為這是一件非常重要的事情，我們將來會繼續這樣做。

Okay. So that's all of our answers to today's questions, operator.

好的。接線員，這就是我們對今天所有問題的答案。

Due to time constraint, this concludes today's question and answer session. At this time, I will turn back the call to Wenbei for any additional or closing remarks.

由於時間限制，今天的問答環節到此結束。此時，我將把電話轉回給文貝，請她發表任何補充意見或結論。

Thank you again for joining us today. If you have any further questions, please contact the Company’s IR department, thank you.

再次感謝您今天加入我們。如果您還有其他問題，請聯絡公司的 IR 部門，謝謝。

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.

今天的電話會議到此結束。感謝大家的參與。現在您可以斷開線路了。謝謝。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。