Investment Rating - The report maintains an "Outperform" rating for BOSS Zhipin (BZ O) [1][3] Core Views - BOSS Zhipin's Q2 2024 revenue growth of 29% YoY to 1 92 billion RMB aligns with prior guidance (28 4%-31 7%) [1][5] - Non-GAAP net profit excluding 300 million RMB stock-based compensation was 720 million RMB, up 26% YoY [1][5] - Cash collection grew 21% YoY to 1 95 billion RMB, but slowed from Q1 2024's 24 3% growth due to weaker corporate hiring demand [1][5] - Online recruitment revenue increased 29% YoY to 1 89 billion RMB, driven by enterprise user growth [1][5] - Blue-collar hiring demand showed YoY growth but significant QoQ decline, with manufacturing leading the sector [5] - Large enterprises' hiring recovery outpaced small enterprises, continuing Q1 trends [1][5] - Lower-tier cities showed faster growth in recruiters compared to first-tier cities [1][5] User Growth and Business Metrics - Average monthly active users (MAU) grew 25% YoY to 54 6 million, accelerating by 7 8 percentage points QoQ [1][6] - The company added approximately 28 million new users in H1 2024, achieving about 67% of its full-year user growth target [1][6] - Paying enterprise customers reached 5 9 million in the past 12 months, up 31% YoY, though growth slowed by 11 4 percentage points QoQ [1][6] - ARPU increased 4% YoY to 1,142 RMB, reversing the previous downward trend, likely due to customer structure optimization [1][6] Financial Performance - Net profit margin improved by 1 0 percentage point YoY to 21 8% in Q2 2024 [1][8] - Adjusted net profit margin was 37 5%, down 0 7 percentage points YoY [1][8] - Gross margin expanded by 1 7 percentage points to 83 5%, attributed to cost control measures such as server bandwidth optimization [1][8] - Operating expense ratio decreased by 4 7 percentage points to 65 2%, with sales/R&D/management expense ratios down 3 3/1 4/0 percentage points respectively [1][8] Business Development - "Hailuo Preferred" initiative achieved over 40 million RMB in revenue in Q2 2024, showing significant QoQ growth [2][9] - The company is increasing investment to accelerate the monetization of "Hailuo Preferred" [2][9] - Blue-collar job supply and demand improved in August 2024, with manufacturing showing particularly strong performance [2][9] Share Repurchase - The company repurchased 88 million USD worth of shares in the past four months [2][9] - A new share repurchase program of up to 150 million USD was announced, to be implemented alongside the existing 200 million USD program [2][9] Financial Forecasts - Revenue is expected to reach 7 44/9 83/11 68 billion RMB in 2024/2025/2026, with a slight 2% downward revision for 2024 [9] - Adjusted net profit is projected at 2 67/3 52/4 31 billion RMB for 2024/2025/2026, maintaining a 28% CAGR [9] - EPS is forecasted at 5 92/7 82/9 59 RMB per ADS for 2024/2025/2026 [4][9] - ROE is expected to improve from 7 1% in 2024 to 16 3% in 2025 and 16 2% in 2026 [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - In Q2 2024, the company achieved total revenue of 1.917 billion yuan, a year-on-year increase of 28.8%, which is at the lower end of the company's guidance. Adjusted net profit reached 719 million yuan, up 26.4% year-on-year, slightly exceeding Bloomberg consensus expectations [3] - The company expects total revenue for Q3 2024 to be between 1.90 billion and 1.92 billion yuan, representing a year-on-year increase of 18.2% to 19.5% [3] - User growth remains strong, with MAU reaching 54.6 million, a year-on-year increase of 25.2%. The number of paid enterprise users increased by 31.1% year-on-year, reaching 5.9 million [3] - The company is focusing on cost control, with a gross margin of 83.5% in Q2 2024, up 1.7 percentage points year-on-year. The operating profit margin is expected to improve in the second half of 2024 [4] - The long-term development outlook remains positive, with adjusted net profit forecasts for 2024-2026 revised to 2.7 billion, 3.2 billion, and 4.1 billion yuan respectively [4] Financial Performance - Total revenue for 2024 is projected to be 4.511 billion yuan, with a year-on-year growth of 25%. The adjusted net profit is expected to be 799 million yuan in 2024, reflecting a 24% year-on-year increase [2] - The company’s cash collection reached 1.95 billion yuan in Q2 2024, a year-on-year increase of 20.5% [3] - The company’s PE ratio is projected to be 15x for 2024, 12x for 2025, and 10x for 2026 [4] Market Data - The closing price of the stock is $12.46, with a market capitalization of approximately $5.608 billion [5] - The price-to-book ratio is 2.69 [5] User and Revenue Growth - The company has seen a robust increase in enterprise user demand, particularly in lower-tier cities, with blue-collar recruitment growing faster than white-collar [3] - The company’s blue-collar recruitment project generated over 40 million yuan in revenue in Q2 2024, showing significant growth [3]

Investment Rating - The report maintains a "Buy" rating for BOSS Zhipin (BZ.O) [4] Core Views - Despite a decline in recruitment demand, the company achieved a revenue growth of 28.8% year-on-year in Q2 FY2024, reaching 1.917 billion yuan, and an adjusted net profit growth of 26.4% to 719 million yuan [1][3] - The company anticipates Q3 FY2024 revenue to be between 1.90 billion and 1.92 billion yuan, representing a year-on-year growth of 18.2% to 19.5% [1] - The report highlights the steady growth in user numbers and the positive performance in the blue-collar and lower-tier market segments, with a focus on enhancing brand strength through major event marketing [2][3] Summary by Sections Financial Performance - In Q2 FY2024, the company reported a revenue of 1.917 billion yuan (yoy +28.8%, qoq +12.5%) and a net profit of 417 million yuan (yoy +34.8%, qoq +72.7%) [1] - The adjusted net profit for the same period was 719 million yuan (yoy +26.4%, qoq +35.4%) [1] - The average monthly active users (MAU) reached 54.6 million, marking a historical high (yoy +25.2%, qoq +17.2%) [2] Market Trends - The report notes a decrease in recruitment demand but indicates that the user base continues to grow steadily, with the number of paid enterprise clients increasing to 5.9 million (yoy +31.1%, qoq +3.5%) [2] - The blue-collar recruitment segment showed resilience, with revenue exceeding 40 million yuan in Q2 [2] Cost Management - The gross margin for Q2 FY2024 was 83.49% (yoy +1.7 percentage points, qoq +0.8 percentage points), with net profit margin rising to 21.77% (yoy +0.96 percentage points) [2] Future Outlook - The company expects to enhance its operational capabilities as recruitment demand recovers, with adjusted net profit forecasts for FY2024-2026 at 2.580 billion, 3.094 billion, and 3.418 billion yuan respectively, reflecting growth rates of +19.7%, +19.9%, and +10.5% [3]

BEIJING, Aug. 29, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED ("BOSS Zhipin" or the "Company") (Nasdaq: BZ; HKEX: 2076), today announced that the Company's board of directors has authorized a new share repurchase program effective from August 29, 2024 for a 12-month period, under which the Company may additionally repurchase up to US$150 million of its shares (including in the form of American depositary shares), in a sign of confidence about the Company's continued growth in the future. This new share repurch ...

BEIJING, Aug. 29, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) (Nasdaq: BZ; HKEX: 2076), a leading online recruitment platform in China, today announced that the Company’s board of directors has authorized a new share repurchase program effective from August 29, 2024 for a 12-month period, under which the Company may additionally repurchase up to US$150 million of its shares (including in the form of American depositary shares), in a sign of confidence about the Company’s contin ...

Financial Data and Key Metrics Changes - In Q2 2024, Kanzhun Limited achieved calculated cash billings of RMB1.95 billion, representing a 20% year-on-year increase [5] - GAAP revenue reached RMB1.92 billion, up 29% year-on-year [5] - Net profit was RMB420 million, while adjusted net income rose to RMB720 million, up 26% year-on-year [5][13] - Average verified MAU on the BOSS Zhipin app grew by 25% year-on-year to 54.6 million [5] - Total paid enterprise customers reached 5.9 million, reflecting a 31% year-on-year growth [5][14] Business Line Data and Key Metrics Changes - Average monthly active enterprise users grew by 17% year-on-year [13] - Revenue contributions from blue-collar sectors and small to medium-sized enterprises continued to increase [13] - Adjusted operating profit was RMB660 million, up 52% year-on-year, with an adjusted operating margin of 34.4%, marking an all-time high [14] Market Data and Key Metrics Changes - The company observed a weaker demand from the recruitment side in the latter half of Q2, leading to a high CB ratio [6][7] - Newly added enterprise users in Q2 were higher than the same period last year, indicating a positive growth trend [7] Company Strategy and Development Direction - The company aims to ensure full-year profit targets, emphasizing the importance of confidence during challenging times [9] - Plans to invest more resources in new growth drivers, particularly in the blue-collar manufacturing industry [9][10] - The management believes long-term structural growth opportunities remain strong due to the large Chinese market and persistent labor supply shortages [8] Management Comments on Operating Environment and Future Outlook - Management views the current competitive landscape as stable, with strong user engagement metrics [20] - The company expects total revenues for Q3 2024 to be between RMB1.9 billion and RMB1.92 billion, reflecting a year-on-year increase of 18.2% to 19.5% [17] - Management is focused on controlling overall spending to achieve profit targets amidst a challenging macro environment [21][22] Other Important Information - The company has repurchased shares totaling US$88 million in the past four months, demonstrating commitment to shareholder returns [12][17] - Adjusted operating costs increased by 20% year-on-year, primarily due to investments in customer acquisition and R&D [14][15] Q&A Session Summary Question: User growth and market share outlook - Management believes the competitive landscape is stable, with historical highs in MAU and DAU metrics [20] - The full-year user growth target is set at RMB40 million to RMB45 million, with a focus on controlling marketing spending to achieve profit targets [21] Question: Recruitment demand improvement - Management noted that blue-collar recruitment demand peaked during the spring festival but fell back in Q2, although year-on-year growth remained strong [29] - The manufacturing industry continues to outperform other sectors, with improvements in the enterprise-to-job seeker ratio observed in August [31] Question: Developments regarding WD acquisition and AI investments - The acquisition of WD technology is aimed at enhancing capabilities in the manufacturing industry, with ongoing collaboration on development and monetization projects [35][36] - The company is cautious about investing heavily in generative AI, focusing instead on internal applications and understanding advancements in the field [38] Question: Share buybacks and dividends - The company has a $200 million share buyback program and has already repurchased $88 million worth of shares [39] - Discussions regarding a potential dividend plan are ongoing, but no decisions have been made yet [39]

KANZHUN LIMITED Sponsored ADR (BZ) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $0.13 per share when it actually produced earnings of $0.16, delivering a surprise of 23.08%. Over the last four quarters, t ...

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) [Second Quarter 2024 Highlights](index=1&type=section&id=Second%20Quarter%202024%20Highlights) KANZHUN LIMITED achieved significant financial and operational growth in Q2 2024, with revenue up 28.8% and strong user base expansion Key Performance Highlights for Q2 2024 | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | 1,916.7 Million | 1,487.6 Million | 28.8% | | Calculated Cash Billings | 1,950.7 Million | 1,619.5 Million | 20.5% | | Average Monthly Active Users (MAU) | 54.6 Million | 43.6 Million | 25.2% | | Paying Enterprise Customers (LTM) | 5.9 Million | 4.5 Million | 31.1% | | Net Income | 417.3 Million | 309.6 Million | 34.8% | | Adjusted Net Income | 718.7 Million | 568.5 Million | 26.4% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasizes user growth as a core driver for revenue and profit, expressing confidence in long-term development and shareholder returns - CEO Mr. Peng Zhao noted that the company's average monthly active users increased by **25.2%** year-over-year to **54.6 million**, solidifying its leading position as China's largest online recruitment platform. Despite macroeconomic headwinds, enterprise user growth is the core driver for stable revenue and profit growth. The company prioritizes shareholder returns and has initiated and will continue to increase share repurchases, demonstrating confidence in its long-term development[4](index=4&type=chunk) - CFO Mr. Yu Zhang stated that the company achieved healthy and sustainable revenue and profit growth this quarter. Adjusted operating income increased by **52.1%** year-over-year, and the adjusted operating profit margin reached a record high, increasing by **5 percentage points** from the same period last year, attributed to the company's excellent business model and effective cost control. The company continues to invest in technology R&D, with R&D expenses accounting for **23.2% of revenue**, maintaining an industry-leading level[4](index=4&type=chunk) [About KANZHUN LIMITED](index=5&type=section&id=About%20KANZHUN%20LIMITED) KANZHUN LIMITED operates BOSS Zhipin, a leading online recruitment platform in China, leveraging interactive mobile applications and network effects - KANZHUN LIMITED operates BOSS Zhipin, China's leading online recruitment platform, efficiently connecting job seekers and enterprise users through highly interactive mobile applications that facilitate two-way communication, smart recommendations, and innovative online recruitment scenarios[21](index=21&type=chunk) - BOSS Zhipin benefits from its large and diverse user base, which creates strong network effects, enhancing recruitment efficiency and driving rapid expansion[21](index=21&type=chunk) [Second Quarter 2024 Financial Performance](index=2&type=section&id=Second%20Quarter%202024%20Financial%20Performance) [Revenues](index=2&type=section&id=Revenues) Total revenue for Q2 2024 reached RMB 1.917 billion, a 28.8% increase, primarily driven by online recruitment services for enterprise clients Q2 2024 Revenue Overview | Revenue Source | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Online Recruitment Services (Enterprise Customers) | 1,892.7 Million | 1,470.8 Million | 28.7% | | Other Services (Value-added services for job seekers) | 24.0 Million | 16.8 Million | 42.9% | | **Total Revenue** | **1,916.7 Million** | **1,487.6 Million** | **28.8%** | - The growth in online recruitment service revenue from enterprise customers was primarily driven by an increase in the number of enterprise users[5](index=5&type=chunk) - The growth in other services revenue primarily benefited from an expanding user base[5](index=5&type=chunk) [Operating Costs and Expenses](index=2&type=section&id=Operating%20Costs%20and%20Expenses) Total operating costs and expenses increased by 19.5% to RMB 1.567 billion in Q2 2024, driven by higher R&D and administrative expenses Q2 2024 Operating Costs and Expenses | Expense Category | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Total Operating Costs and Expenses | 1,566.6 Million | 1,310.8 Million | 19.5% | | Share-based Compensation Expenses | 301.4 Million | 258.9 Million | 16.4% | | Cost of Revenues | 316.5 Million | 270.3 Million | 17.1% | | Sales and Marketing Expenses | 545.2 Million | 471.6 Million | 15.6% | | Research and Development Expenses | 443.7 Million | 365.9 Million | 21.3% | | General and Administrative Expenses | 261.2 Million | 203.0 Million | 28.7% | - The increase in cost of revenues was primarily due to higher server and bandwidth costs, payment processing fees, and employee-related expenses[6](index=6&type=chunk) - The increase in sales and marketing expenses was mainly attributable to higher customer acquisition costs and employee-related expenses for sales personnel[6](index=6&type=chunk) - The increase in research and development expenses was primarily due to increased technology investments[7](index=7&type=chunk) - The increase in general and administrative expenses was primarily due to higher employee-related expenses[7](index=7&type=chunk) [Profitability](index=2&type=section&id=Profitability) The company's profitability significantly improved in Q2 2024, with operating income surging by 104.9% and net income growing by 34.8% Q2 2024 Profitability Metrics | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Operating Income | 358.6 Million | 175.0 Million | 104.9% | | Net Income | 417.3 Million | 309.6 Million | 34.8% | | Adjusted Net Income | 718.7 Million | 568.5 Million | 26.4% | [Earnings Per Share (EPS)](index=3&type=section&id=Earnings%20Per%20Share%20(EPS)) In Q2 2024, basic and diluted net earnings per ADS were RMB 0.95 and RMB 0.91, with adjusted figures at RMB 1.63 and RMB 1.57 Q2 2024 Earnings Per ADS | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | | :--- | :--- | :--- | | Basic Net Earnings (per ADS) | 0.95 | 0.71 | | Diluted Net Earnings (per ADS) | 0.91 | 0.69 | | Adjusted Basic Net Earnings (per ADS) | 1.63 | 1.31 | | Adjusted Diluted Net Earnings (per ADS) | 1.57 | 1.26 | [Cash Flow from Operating Activities](index=3&type=section&id=Cash%20Flow%20from%20Operating%20Activities) Net cash generated from operating activities in Q2 2024 was RMB 869 million, increasing by 13.7% year-over-year Q2 2024 Cash Flow from Operating Activities | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 868.6 Million | 763.7 Million | 13.7% | [Financial Position, Capital Allocation & Outlook](index=3&type=section&id=Financial%20Position%2C%20Capital%20Allocation%20%26%20Outlook) [Cash Position](index=3&type=section&id=Cash%20Position) As of June 30, 2024, the company maintained ample liquidity with cash, short-term deposits, and investments totaling RMB 14.282 billion Cash Position as of June 30, 2024 | Metric | Amount (RMB) | | :--- | :--- | | Total Cash and Cash Equivalents, Short-term Time Deposits, and Short-term Investments | 14,281.9 Million | [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) The board authorized a new 12-month share repurchase program in March 2024, allowing for up to $200 million in repurchases - The company's board of directors authorized a new share repurchase program in March 2024, effective from March 20, 2024, for a period of **12 months**[12](index=12&type=chunk) - Under this program, the company may repurchase up to **$200 million** of its shares, including in the form of ADSs[12](index=12&type=chunk) [Business Outlook (Q3 2024 Guidance)](index=3&type=section&id=Business%20Outlook%20(Q3%202024%20Guidance)) The company forecasts Q3 2024 total revenue between RMB 1.90 billion and RMB 1.92 billion, projecting 18.2% to 19.5% year-over-year growth Q3 2024 Revenue Outlook | Metric | Forecast Range (RMB) | YoY Growth | | :--- | :--- | :--- | | Total Revenue | 1.90 Billion - 1.92 Billion | 18.2% - 19.5% | - This forecast reflects the company's current view on the Chinese market and operating conditions, which are subject to change and cannot be reasonably predicted with accuracy as of the date of this release[13](index=13&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) The company will host a conference call on August 28, 2024, to discuss financial results, with pre-registration and webcast details available - The company will hold a conference call to discuss its financial results on August 28, 2024, at **8:00 AM U.S. Eastern Time** (8:00 PM Beijing/Hong Kong Time on August 28, 2024)[14](index=14&type=chunk) - Participants are required to pre-register via a designated link, and a live and archived webcast of the conference call will be available on the company's investor relations website[14](index=14&type=chunk) [Exchange Rate](index=4&type=section&id=Exchange%20Rate) RMB amounts in this announcement are converted to USD using the Federal Reserve Board's H.10 rate of 7.2672 as of June 28, 2024 - For the convenience of readers, certain RMB amounts in this announcement have been translated into U.S. dollars at an exchange rate of **RMB 7.2672 to US$1.00**, the exchange rate as of June 28, 2024, as set forth in the H.10 statistical release of the Federal Reserve Board[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like calculated cash billings and adjusted net income to assess operating performance and provide business insights - The company uses non-GAAP financial measures such as calculated cash billings and adjusted net income as supplemental measures to review and assess operating performance[17](index=17&type=chunk) - Calculated cash billings are derived by adding the change in deferred revenue to revenue, used to measure and monitor sales growth, as the company typically bills paying enterprise customers at the time of sale, but related revenue may be recognized proportionally over time[17](index=17&type=chunk) - Adjusted net income is derived by excluding share-based compensation expenses (non-cash expenses), which helps identify underlying business trends that may be impacted by certain expenses and facilitates investor evaluation of the company's operating performance[17](index=17&type=chunk) - Non-GAAP financial measures are not defined under U.S. GAAP and should not be considered in isolation or as a substitute for the most directly comparable GAAP financial measures[18](index=18&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements under the 1995 U.S. Private Securities Litigation Reform Act, subject to inherent risks - This press release contains "forward-looking" statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995[19](index=19&type=chunk) - Forward-looking statements involve inherent risks and uncertainties, and the company undertakes no obligation to update any forward-looking statements, except as required under applicable law[19](index=19&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section presents KANZHUN LIMITED's unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2024 Unaudited Condensed Consolidated Statements of Operations (Summary) | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 1,916,743 | 1,487,615 | 3,620,496 | 2,765,161 | | Total Operating Costs and Expenses | (1,566,640) | (1,310,808) | (3,179,390) | (2,684,464) | | Operating Income | 358,609 | 175,031 | 462,202 | 97,732 | | Net Income | 417,250 | 309,597 | 658,974 | 342,260 | | Basic Net Earnings per ADS | 0.95 | 0.71 | 1.51 | 0.79 | | Diluted Net Earnings per ADS | 0.91 | 0.69 | 1.46 | 0.76 | [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents KANZHUN LIMITED's unaudited condensed consolidated balance sheets as of June 30, 2024, and December 31, 2023 Unaudited Condensed Consolidated Balance Sheets (Summary) | Metric | As of June 30, 2024 (RMB) | As of December 31, 2023 (RMB) | | :--- | :--- | :--- | | Total Assets | 19,164,849 | 17,940,048 | | Total Liabilities | 4,383,498 | 4,510,855 | | Total Shareholders' Equity | 14,781,351 | 13,429,193 | | Cash and Cash Equivalents | 3,472,390 | 2,472,959 | | Short-term Time Deposits | 5,267,014 | 6,922,803 | | Short-term Investments | 5,542,508 | 3,513,885 | | Deferred Revenue | 3,175,000 | 2,794,075 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents KANZHUN LIMITED's unaudited condensed consolidated statements of cash flows for the three and six months ended June 30, 2024 Unaudited Condensed Consolidated Statements of Cash Flows (Summary) | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 868,556 | 763,708 | 1,774,097 | 1,307,618 | | Net Cash from Investing Activities | (72,309) | (4,427,593) | (595,771) | (8,390,368) | | Net Cash from Financing Activities | (81,847) | 23,166 | (186,425) | 68,955 | | Cash and Cash Equivalents, End of Period | 3,472,390 | 2,740,769 | 3,472,390 | 2,740,769 | [Unaudited Reconciliation of GAAP and Non-GAAP Results](index=10&type=section&id=Unaudited%20Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides KANZHUN LIMITED's unaudited reconciliation of GAAP and non-GAAP results for the three and six months ended June 30, 2024 Unaudited Reconciliation of GAAP and Non-GAAP Results (Summary) | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | :--- | :--- | | Revenues | 1,916,743 | 1,487,615 | 3,620,496 | 2,765,161 | | Add: Change in Deferred Revenue | 33,997 | 131,874 | 380,925 | 503,885 | | **Calculated Cash Billings** | **1,950,740** | **1,619,489** | **4,001,421** | **3,269,046** | | Net Income | 417,250 | 309,597 | 658,974 | 342,260 | | Add: Share-based Compensation Expenses | 301,443 | 258,902 | 590,420 | 471,193 | | **Adjusted Net Income** | **718,693** | **568,499** | **1,249,394** | **813,453** | | Adjusted Basic Net Earnings per ADS | 1.63 | 1.31 | 2.84 | 1.88 | | Adjusted Diluted Net Earnings per ADS | 1.57 | 1.26 | 2.75 | 1.80 |

Financial Performance - Revenues for Q2 2024 were RMB1,916.7 million (US$263.8 million), a 28.8% increase from RMB1,487.6 million in Q2 2023 [2][4] - Net income for Q2 2024 was RMB417.3 million (US$57.4 million), a 34.8% increase from RMB309.6 million in Q2 2023 [2][8] - Adjusted net income for Q2 2024 was RMB718.7 million (US$98.9 million), a 26.4% increase from RMB568.5 million in Q2 2023 [2][8] User Growth and Engagement - Average monthly active users (MAUs) for Q2 2024 were 54.6 million, a 25.2% increase from 43.6 million in Q2 2023 [2] - Total paid enterprise customers in the twelve months ended June 30, 2024 were 5.9 million, a 31.1% increase from 4.5 million in the same period of 2023 [2] Revenue Breakdown - Revenues from online recruitment services to enterprise customers were RMB1,892.7 million (US$260.4 million) in Q2 2024, a 28.7% increase from RMB1,470.8 million in Q2 2023 [4] - Revenues from other services, mainly paid value-added services to job seekers, were RMB24.0 million (US$3.3 million) in Q2 2024, a 42.9% increase from RMB16.8 million in Q2 2023 [4] Operating Costs and Expenses - Total operating costs and expenses were RMB1,566.6 million (US$215.6 million) in Q2 2024, a 19.5% increase from RMB1,310.8 million in Q2 2023 [5] - Research and development expenses were RMB443.7 million (US$61.1 million) in Q2 2024, a 21.3% increase from RMB365.9 million in Q2 2023, reflecting increased investments in technology [6] Cash Position and Share Repurchase - Net cash provided by operating activities was RMB868.6 million (US$119.5 million) in Q2 2024, a 13.7% increase from RMB763.7 million in Q2 2023 [10] - The company had a cash and cash equivalents balance of RMB14,281.9 million (US$1,965.3 million) as of June 30, 2024 [11] - The company authorized a share repurchase program of up to US$200 million effective from March 20, 2024 [12] Outlook - The company expects total revenues for Q3 2024 to be between RMB1.90 billion and RMB1.92 billion, representing a year-on-year increase of 18.2% to 19.5% [13] Non-GAAP Financial Measures - Calculated cash billings for Q2 2024 were RMB1,950.7 million (US$268.4 million), a 20.5% increase from RMB1,619.5 million in Q2 2023 [2][16] - Adjusted income from operations increased by 52.1% year over year, with the adjusted operating margin reaching a historical high in Q2 2024 [3]

Financial Performance - For the six months ended June 30, 2024, total revenue reached RMB 3,620,496 thousand, representing a 30.9% increase compared to RMB 2,765,161 thousand in the same period of 2023[2] - Adjusted net profit for the same period was RMB 771,642 thousand, a significant increase of 101.1% from RMB 383,740 thousand in 2023[2] - Revenue from online recruitment services for corporate clients increased by 31.0% to RMB 3.6 billion for the six months ended June 30, 2024, compared to RMB 2.7 billion for the same period in 2023[13] - Total revenue rose by 30.9% to RMB 3.6 billion for the six months ended June 30, 2024, from RMB 2.8 billion for the same period in 2023[15] - Operating profit for the six months ended June 30, 2024, was RMB 462.2 million, a significant increase from RMB 97.7 million for the same period in 2023[20] - Net profit surged by 92.5% to RMB 659.0 million for the six months ended June 30, 2024, compared to RMB 342.3 million for the same period in 2023[21] - Basic earnings per share increased from RMB 0.39 for the six months ended June 30, 2023, to RMB 0.75 for the same period in 2024, reflecting a growth of approximately 92.3%[49] User Metrics - The average monthly active users (MAUs) grew to 50.6 million, up 21.3% from 41.7 million in the previous year[5] - The average daily active users (DAUs) as a percentage of MAUs remained stable at 25.2% compared to the same period last year[5] Expenses and Profitability - The adjusted operating profit margin reached a historical high, increasing by 5 percentage points year-on-year, driven by effective cost control[6] - Research and development expenses accounted for 23.2% of total revenue, maintaining a leading position in the industry[6] - Research and development expenses increased by 30.4% to RMB 911.3 million for the six months ended June 30, 2024, from RMB 699.0 million for the same period in 2023[18] - General and administrative expenses rose by 44.6% to RMB 531.7 million for the six months ended June 30, 2024, compared to RMB 367.6 million for the same period in 2023[19] - Marketing expenses remained stable at RMB 1,124.4 million for the six months ended June 30, 2024, compared to RMB 1,100.4 million for the same period in 2023[17] Cash Flow and Financial Position - Operating cash flow for the six months ended June 30, 2024, was RMB 1.8 billion[21] - The company has no interest-bearing bank or other borrowings as of June 30, 2024[21] - Cash and cash equivalents increased from RMB 2.74 billion at the end of 2023 to RMB 3.47 billion at the end of June 2024, an increase of 26.7%[39] - The company reported a net cash inflow from operating activities of RMB 1,774.1 million for the six months ended June 30, 2024, compared to RMB 1,307.6 million for the same period in 2023, an increase of 35.7%[39] - As of June 30, 2024, the group had no borrowings, resulting in a debt-to-equity ratio of zero[24] Shareholder Returns and Repurchase Plans - The company is committed to increasing shareholder returns through ongoing share repurchase initiatives[6] - A new share repurchase plan was approved by the board, allowing the company to repurchase up to $200 million of Class A common stock starting March 20, 2024[11] - During the reporting period, the company repurchased a total of 424,437 American Depositary Shares for a total consideration of $7,994,506.16[33] - The company repurchased a total of 848,874 Class A ordinary shares during the reporting period, with a total consideration of approximately $7.99 million[34] Acquisitions and Investments - The company acquired W.D Technology Investment Group Limited in February 2024 to enhance services in the blue-collar manufacturing sector[5] - The company completed the acquisition of approximately 77% of W.D Technology Investment Group Limited for approximately $52.7 million (RMB 374.3 million) on February 6, 2024[42] - The fair value of the acquired net assets includes cash and cash equivalents of RMB 224.0 million, other receivables of RMB 37.1 million, and property, plant, and equipment of RMB 43.3 million[43] Taxation and Liabilities - The total current tax expense for the six months ended June 30, 2024, was RMB 114.69 million, compared to RMB 27.07 million for the same period in 2023[48] - The company benefits from a reduced corporate income tax rate of 15% as a high-tech enterprise in China[47] - As of June 30, 2024, the group had no significant contingent liabilities or capital commitments[26] Employee Metrics - The group employed a total of 5,429 employees, with 51.2% in sales and marketing, 24.3% in R&D, 18.8% in operations, and 5.7% in general administration[27] Other Financial Metrics - The company's total assets increased from RMB 17.94 billion as of December 31, 2023, to RMB 19.16 billion as of June 30, 2024, marking a growth of 6.8%[38] - The total amount of short-term investments increased from RMB 3,513.89 million as of December 31, 2023, to RMB 5,542.51 million as of June 30, 2024[49] - As of June 30, 2024, the group held fixed-rate notes issued by UBS AG with a subscription principal of $150.0 million, representing approximately 5.5% of the group's total consolidated assets[22] - The fair value of the fixed-rate notes as of June 30, 2024, was approximately $148.3 million, with interest accrued during the reporting period amounting to about $4.0 million[22]