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Financial Performance - For Q3 2023, the revenue was RMB 1,606.6 million (USD 220.2 million), an increase of 36.3% compared to RMB 1,178.6 million in Q3 2022[5] - The calculated cash receipts for Q3 2023 were RMB 1,635.8 million (USD 224.2 million), up 32.1% from RMB 1,238.2 million in the same period last year[5] - Net profit for Q3 2023 was RMB 425.7 million (USD 58.3 million), up 101.1% from RMB 211.7 million in Q3 2022[5] - Adjusted net profit for Q3 2023 was RMB 714.1 million (USD 97.9 million), an increase of 89.6% from RMB 376.6 million in the same quarter last year[5] - Operating profit for Q3 2023 was RMB 261.0 million (USD 35.8 million), an increase of 89.3% compared to RMB 137.9 million in Q3 2022[8] - Total revenue for the three months ended September 30, 2023, was RMB 1,606,636 thousand, representing a year-over-year increase of 36.3% from RMB 1,178,563 thousand in the same period of 2022[20] - Net profit for the three months ended September 30, 2023, was RMB 425,717 thousand, a significant increase of 100.5% compared to RMB 211,717 thousand in the same period of 2022[20] - Adjusted net profit for the nine months ended September 30, 2023, was RMB 1,527,538, a substantial increase of 106.5% from RMB 739,999 for the same period in 2022[24] User Metrics - The average monthly active users reached 44.6 million, a 37.7% increase from 32.4 million in Q3 2022[5] - The total number of paying enterprise customers was 4.9 million, a 32.4% increase from 3.7 million in the previous year[5] Expenses and Costs - The operating costs and expenses totaled RMB 1,358.7 million (USD 186.2 million), a 30.1% increase from RMB 1,044.1 million in Q3 2022[7] - Research and development expenses for Q3 2023 were RMB 414.4 million (USD 56.8 million), a 42.8% increase from RMB 290.2 million in Q3 2022[7] - The company reported a total operating cost of RMB 1,358,727 thousand for the three months ended September 30, 2023, which is an increase of 30.1% from RMB 1,044,125 thousand in the same period of 2022[20] Cash Flow and Assets - Cash flow from operating activities for Q3 2023 was RMB 812.6 million (USD 111.4 million), an increase of 121.7% compared to RMB 366.6 million in Q3 2022[10] - As of September 30, 2023, cash and cash equivalents totaled RMB 12,799.2 million (USD 1,754.3 million)[10] - Cash flow from operating activities for the nine months ended September 30, 2023, was RMB 2,120,172, compared to RMB 847,499 for the same period in 2022, indicating a significant increase of 150.3%[23] - Total assets increased to RMB 17,323,613 as of September 30, 2023, from RMB 14,826,867 as of December 31, 2022, reflecting a growth of 16.8%[22] - Cash and cash equivalents decreased to RMB 2,444,620 as of September 30, 2023, from RMB 9,751,824 at the beginning of the year, a decline of 74.9%[23] Shareholder Returns - The board approved a special cash dividend of approximately USD 80 million, reflecting the company's commitment to providing sustainable value to shareholders[5] - The company announced a special cash dividend of USD 0.09 per ordinary share and USD 0.18 per American Depositary Share, totaling approximately USD 80 million[11] Future Outlook - The company expects total revenue for Q4 2023 to be between RMB 1.51 billion and RMB 1.55 billion, representing a year-over-year increase of 39.6% to 43.3%[14] - A new share repurchase plan was approved in March 2023, allowing the company to repurchase up to USD 150 million of its shares within the next 12 months[13] - The company plans to continue expanding its user base and enhancing its mobile application features to improve recruitment efficiency and drive growth[20] Conference and Reporting - The company will hold a conference call on November 14, 2023, to discuss financial performance[15] - The company utilizes non-GAAP financial metrics to assess business performance, including adjusted net profit and adjusted earnings per share[17] Earnings Per Share - The diluted earnings per share for the three months ended September 30, 2023, was RMB 0.47, compared to RMB 0.23 in the same period of 2022[20] - The basic adjusted earnings per share for the three months ended September 30, 2023, was RMB 0.82, compared to RMB 0.43 for the same period in 2022, reflecting an increase of 90.7%[24]

Exhibit 99.1 KANZHUN LIMITED Environmental, Social and Governance Report ...

Financial Performance - Revenue for the first half of 2023 reached RMB 2,765.2 million, representing a 22.9% increase compared to RMB 2,250.2 million in the same period of 2022[6] - Net profit for the first half of 2023 was RMB 342.3 million, a significant increase of 326.1% from RMB 80.3 million in the first half of 2022[6] - Adjusted net profit (non-GAAP) for the first half of 2023 was RMB 813.5 million, up 123.9% from RMB 363.4 million in the same period of 2022[6] - The company reported a pre-tax profit of RMB 383.7 million for the first half of 2023, a remarkable increase of 306.3% from RMB 94.4 million in the same period of 2022[6] - Total revenue increased by 22.9% from RMB 2,250.2 million in the first half of 2022 to RMB 2,765.2 million in the first half of 2023[19] - Revenue from online recruitment services for enterprise clients rose by 22.6% to RMB 2,730.9 million in the first half of 2023, compared to RMB 2,227.2 million in the same period of 2022[22] - Other services revenue, primarily from paid value-added services for job seekers, increased by 49.1% to RMB 34.3 million in the first half of 2023 from RMB 23.0 million in the first half of 2022[22] - Operating profit grew by 33.8% from RMB 73.0 million in the first half of 2022 to RMB 97.7 million in the first half of 2023[27] User Engagement - Average monthly active users reached 41.7 million in the first half of 2023, a 61.0% increase from 25.9 million in the first half of 2022[9] - The average daily active users to monthly active users ratio was 26.8% in the first half of 2023, consistent with the previous year[9] - The company reported a significant increase in daily active users, with a total of 1.5 million users logging in at least once per day on the BOSS recruitment mobile application[118] - The company reported a total of 55 million monthly active users as of June 30, 2023, indicating a significant user engagement[119] Operational Efficiency - The company aims to enhance operational efficiency to achieve sustainable high-quality growth in the future[10] - The company continues to focus on technology innovation and user experience optimization to strengthen its leadership in the online recruitment market in China[9] - The company is committed to continuous improvement in its operational efficiency and cost management strategies to enhance profitability[118] Expenses and Costs - Operating costs rose by 47.2% to RMB 517.5 million in the first half of 2023, up from RMB 351.6 million in the first half of 2022[23] - Marketing expenses increased by 19.4% to RMB 1,100.4 million in the first half of 2023, compared to RMB 921.9 million in the first half of 2022[24] - R&D expenses grew by 16.8% to RMB 699.0 million in the first half of 2023 from RMB 598.4 million in the first half of 2022[25] - General and administrative expenses increased by 16.3% to RMB 367.6 million in the first half of 2023, up from RMB 316.0 million in the first half of 2022[26] Cash Flow and Financial Position - As of June 30, 2023, total cash and cash equivalents, time deposits, and short-term investments amounted to RMB 12.8 billion, with a net cash flow from operating activities of RMB 1.3 billion for the first half of 2023[29] - The group had no interest-bearing bank or other borrowings as of June 30, 2023, resulting in a debt-to-equity ratio of zero[30][32] - Cash and cash equivalents decreased to RMB 2,740,769 thousand as of June 30, 2023, from RMB 9,751,824 thousand as of December 31, 2022, a decline of 71.9%[66] - Total assets increased to RMB 16,382,801 thousand as of June 30, 2023, from RMB 14,826,867 thousand as of December 31, 2022, representing a growth of 10.5%[66] - Total liabilities rose to RMB 3,550,793 thousand as of June 30, 2023, compared to RMB 3,186,104 thousand as of December 31, 2022, an increase of 11.5%[66] Corporate Governance - The company has complied with all provisions of the corporate governance code, except for the separation of roles between the Chairman and CEO, which is held by Mr. Zhao[38] - The company has established a corporate governance committee to ensure compliance with regulations and protect shareholder interests[43] - The corporate governance committee consists of three independent non-executive directors, with Zhao Peng serving as the chairman[43] Share Structure and Incentives - The company has a dual-class share structure, with Class A shares granting one vote and Class B shares granting ten votes, allowing significant voting control to Mr. Zhao, who holds approximately 16.2% of the issued shares[36] - The company has a total of 19,355,262 Class A shares reserved for future grants under the share incentive plan, which will affect voting rights if exercised[36] - The board of directors has approved a share incentive plan to motivate key employees, which is expected to drive productivity and innovation[120] Future Outlook - The company has outlined future performance guidance, aiming for a revenue growth rate of 20% year-over-year for the next fiscal year[118] - The company plans to expand its market presence in Southeast Asia, targeting a 15% increase in user acquisition by the end of 2024[120] - New product launches are expected to contribute an additional RMB 300 million in revenue for the second half of 2023[120] - A strategic acquisition is in progress, which is projected to enhance the company's market share by 10%[120]

Financial Data and Key Metrics Changes - The company reported a GAAP revenue of RMB1.49 billion for Q2 2023, representing a 34% year-over-year increase and a 16% quarter-on-quarter growth [5][11] - Calculated cash billings reached RMB1.62 billion, up 65% year-on-year [5][12] - Net income for the quarter was approximately RMB310 million, with adjusted net income increasing by 135% year-on-year to around RMB570 million, marking the highest quarterly record in the company's operational history [5][15] - Adjusted operating margin improved to 29.2%, up by 8.8 percentage points year-on-year [13][15] - Cash, cash equivalents, and short-term investments totaled RMB12.8 billion as of June 30, 2023 [16] Business Line Data and Key Metrics Changes - Average monthly active users (MAU) on the BOSS Zhipin app rose to 43.6 million, up 65% year-on-year [5][11] - The revenue contribution from blue-collar users increased to over 32% of total revenues for the quarter [7] - Total paid enterprise customers reached a record-high of 4.5 million, up 18% year-on-year and 13% quarter-on-quarter [8][12] Market Data and Key Metrics Changes - Recruitment demand in sectors such as catering, hotel, tourism, beauty, personal care, and logistics has significantly increased [6] - The number of active enterprise users reached a new high, indicating a recovery in recruitment demand since the beginning of August [9] Company Strategy and Development Direction - The company continues to invest in algorithms and products to enhance service capabilities, particularly targeting blue-collar workers and SMEs [8] - The strategy focuses on increasing market share and improving technology investments to adapt to changing market conditions [35] - The company aims to capture growth opportunities in lower-tier cities and blue-collar populations [8][35] Management's Comments on Operating Environment and Future Outlook - Management noted a quick recovery in recruitment demand following the graduation season in July, with a promising upward trend observed since early August [9] - The company expects total revenues for Q3 2023 to be between RMB1.53 billion and RMB1.56 billion, reflecting a year-on-year increase of 30% to 32% [17] Other Important Information - The company has initiated a share buyback program with a total size of RMB150 million, reflecting its strong cash position and commitment to shareholder returns [40] Q&A Session Summary Question: What factors will impact white-collar recruitment demand? - Management indicated that the recovery of white-collar recruitment is influenced by macroeconomic improvements and industry recovery trends [20][22] Question: Are new annual subscription enterprise users from existing platforms or new customers? - Most new annual contract customers are converted from existing users, with an increasing trend of customers switching from competitors [20][21] Question: What strategies are in place to improve ARPU and paying ratio of enterprise users? - The company is cautious about monetizing job seekers and focuses on converting more users into paid customers [26][27] Question: What is the outlook for operating margin in the second half? - Management expects operating margins to maintain a healthy level with potential for improvement, subject to seasonality [30] Question: How does the company view its competitive advantages in the blue-collar recruitment space? - The company highlighted its strong double-sided network effect and continuous investment in technology as key competitive advantages [43][44]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 2,765,161 thousand, representing a 22.9% increase from RMB 2,250,224 thousand in the same period of 2022[2] - Operating profit increased by 33.8% to RMB 97,732 thousand for the six months ended June 30, 2023, compared to RMB 73,029 thousand in the prior year[2] - Net profit surged by 326.1% to RMB 342,260 thousand for the six months ended June 30, 2023, up from RMB 80,321 thousand in the same period of 2022[2] - Adjusted net profit (non-GAAP) reached RMB 813,453 thousand, a 123.9% increase from RMB 363,367 thousand in the same period of 2022[2] - Total revenue increased by 22.9% from RMB 2,250.2 million in the first half of 2022 to RMB 2,765.2 million in the first half of 2023[16] - Revenue from online recruitment services for corporate clients rose by 22.6% to RMB 2,730.9 million in the first half of 2023, compared to RMB 2,227.2 million in the same period of 2022[15] - The company achieved a net profit of RMB 309.6 million and an adjusted net profit of RMB 568.5 million in Q2 2023, both representing historical highs for the company[6] - The company reported a pre-tax profit of RMB 383,740 thousand for the six months ended June 30, 2023, up from RMB 94,444 thousand in the same period of 2022, indicating a growth of approximately 305.5%[40] User Engagement - Average monthly active users (MAUs) increased by 61.0% to 41.7 million for the six months ended June 30, 2023, compared to 25.9 million in the same period of 2022[5] - The average daily active users (DAUs) as a percentage of MAUs remained stable at 26.8% for the first half of 2023[5] Expenses and Investments - Marketing expenses rose by 19.4% to RMB 1,100.4 million in the first half of 2023, compared to RMB 921.9 million in the first half of 2022[18] - Research and development expenses increased by 16.8% to RMB 699.0 million in the first half of 2023, up from RMB 598.4 million in the same period of 2022[19] - The company invested RMB 100.0 million in August 2023 to acquire approximately 1.38% equity in a technology company[59] Cash and Assets - Cash and cash equivalents, along with short-term investments, totaled RMB 12.8 billion as of June 30, 2023[24] - Cash and cash equivalents decreased to RMB 2,740,769 thousand as of June 30, 2023, down from RMB 9,751,824 thousand as of December 31, 2022, a decline of approximately 71.9%[41] - Total assets increased to RMB 16,382,801 thousand as of June 30, 2023, from RMB 14,826,867 thousand as of December 31, 2022, representing a growth of approximately 10.5%[41] - The total amount of fixed deposits and short-term investments grew from RMB 3,458.1 million as of December 31, 2022, to RMB 10,050.1 million as of June 30, 2023, an increase of about 190.5%[53] Corporate Governance and Shareholder Communication - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023[37] - The company complied with all corporate governance codes during the reporting period, except for the separation of roles between the chairman and CEO[35] - The announcement reflects the company's commitment to corporate governance[60] - The board is actively involved in overseeing the company's operations and performance[60] - The company is focused on transparency and timely communication with stakeholders[60] - The interim report will include key financial metrics and operational highlights[60] Future Outlook and Strategy - The company continues to focus on technology innovation and user experience optimization to strengthen its leadership in the online recruitment market in China[5] - The company is confident in further improving operational efficiency to achieve sustainable high-quality growth in the future[6] - The company plans to enhance its technology infrastructure and optimize data analytics and deep learning capabilities to improve user experience[14] - The company aims to expand its user base across various industries and regions in the second half of 2023[14] Share Repurchase and Debt - The company approved a share repurchase plan allowing for the buyback of up to $150 million worth of shares over the next 12 months[13] - The company repurchased a total of 721,426 American Depositary Shares (equivalent to 1,442,852 Class A ordinary shares) for a total consideration of $9,999,822.98 during the reporting period[38] - The highest price paid per share during the buyback was $7.185, while the lowest was $6.585[38] - The company's debt ratio was zero as of June 30, 2023, with no borrowings reported[29] Tax and Liabilities - Total income tax expense surged from RMB 14.1 million in 2022 to RMB 41.5 million in 2023, marking an increase of approximately 194.5%[50] - The deferred income tax expense for 2023 was RMB 14.4 million, indicating the company’s strategic tax planning efforts[50] - The total liabilities for other payables and accrued liabilities decreased from RMB 633.5 million as of December 31, 2022, to RMB 520.0 million as of June 30, 2023, a reduction of about 17.8%[58] Employee Statistics - The company had a total of 5,434 employees as of June 30, 2023, with 49.7% in sales and marketing, 24.8% in R&D, and 20.4% in operations[32] Legal and Regulatory Matters - The company has not been involved in any significant litigation or arbitration during the reporting period[39] - There were no major events after the reporting period that could impact the company[39]

Financial Performance - For Q2 2023, the revenue was RMB 1,487.6 million (USD 205.2 million), an increase of 33.7% compared to RMB 1,112.3 million in Q2 2022[4] - The calculated cash receipts for Q2 2023 were RMB 1,619.5 million (USD 223.3 million), up 65.4% from RMB 979.2 million in the same period last year[4] - The net profit for Q2 2023 was RMB 309.6 million (USD 42.7 million), a significant increase of 234.7% from RMB 92.5 million in Q2 2022[4] - The adjusted net profit for Q2 2023 was RMB 568.5 million (USD 78.4 million), up 134.6% from RMB 242.3 million in the same quarter last year[4] - Operating profit for Q2 2023 was RMB 175.0 million (USD 24.1 million), an increase of 129.4% compared to RMB 76.3 million in Q2 2022[8] - Total revenue for the three months ended June 30, 2023, was RMB 1,487,615 thousand, representing a 33.7% increase from RMB 1,112,344 thousand in the same period of 2022[18] - Net profit attributable to ordinary shareholders for the three months ended June 30, 2023, was RMB 309,597 thousand, a significant increase of 234.5% compared to RMB 92,493 thousand in the same period of 2022[18] - Total revenue for the six months ended June 30, 2023, was RMB 2,765,161,000, representing a year-over-year increase from RMB 2,250,224,000[22] - Net profit for the three months ended June 30, 2023, was RMB 309,597,000, compared to RMB 92,493,000 for the same period in 2022, reflecting a significant increase[22] - Adjusted net profit for the six months ended June 30, 2023, was RMB 813,453,000, compared to RMB 363,367,000 for the same period in 2022[22] User and Customer Growth - The average monthly active users reached 43.6 million, a 64.5% increase from 26.5 million in Q2 2022[4] - The total number of paying enterprise customers was 4.5 million, an 18.4% increase from 3.8 million as of June 30, 2022[4] Expenses and Costs - Operating costs and expenses totaled RMB 1,310.8 million (USD 180.8 million), a 25.8% increase from RMB 1,041.8 million in Q2 2022[6] - Marketing expenses for Q2 2023 were RMB 471.6 million (USD 65.0 million), an 18.0% increase from RMB 399.5 million in Q2 2022[7] - R&D expenses for Q2 2023 were RMB 365.9 million (USD 50.5 million), an 18.9% increase from RMB 307.7 million in Q2 2022[7] - The company reported a total operating cost of RMB 1,310,808 thousand for the three months ended June 30, 2023, which is a 25.8% increase from RMB 1,041,790 thousand in the same period of 2022[18] - Research and development expenses for the six months ended June 30, 2023, totaled RMB 698,975 thousand, an increase of 16.8% from RMB 598,425 thousand in the same period of 2022[18] Cash Flow and Investments - Net cash flow from operating activities for Q2 2023 was RMB 763.7 million (USD 105.3 million), representing a 308.6% increase from RMB 186.9 million in Q2 2022[10] - Cash flow from operating activities for the six months ended June 30, 2023, was RMB 1,307,618,000, up from RMB 480,948,000 in the same period of 2022[21] - The company reported a net cash outflow from investing activities of RMB (8,390,368,000) for the six months ended June 30, 2023, compared to RMB (97,909,000) for the same period in 2022[21] Future Outlook - The company expects total revenue for Q3 2023 to be between RMB 1.53 billion and RMB 1.56 billion, reflecting a year-over-year increase of 29.8% to 32.3%[12] - The company aims to enhance operational efficiency for sustainable high-quality growth in the future[5] Shareholder Information - Basic and diluted earnings per American Depositary Share for Q2 2023 were RMB 0.71 (USD 0.10) and RMB 0.69 (USD 0.09), respectively, compared to RMB 0.21 and RMB 0.20 in Q2 2022[9] - Adjusted earnings per American Depositary Share for Q2 2023 were RMB 1.31 (USD 0.18) and RMB 1.26 (USD 0.17), up from RMB 0.56 and RMB 0.53 in the same period last year[9] - The board approved a share repurchase plan in March 2023, allowing the company to repurchase up to USD 150 million worth of shares over the next 12 months[11] Financial Position - As of June 30, 2023, cash and cash equivalents, along with short-term investments, totaled RMB 12,790.8 million (USD 1,763.9 million)[11] - Total assets increased from RMB 14,826,867,000 as of December 31, 2022, to RMB 16,382,801,000 as of June 30, 2023[20] - Cash and cash equivalents decreased from RMB 9,751,824,000 at the end of 2022 to RMB 2,740,769,000 by June 30, 2023[21] - Deferred revenue increased from RMB 2,060,892,000 as of December 31, 2022, to RMB 2,564,777,000 as of June 30, 2023[20] - The total liabilities rose from RMB 3,186,104,000 at the end of 2022 to RMB 3,550,793,000 by June 30, 2023[20] - The company’s total equity increased from RMB 11,640,763,000 as of December 31, 2022, to RMB 12,832,008,000 as of June 30, 2023[20] Non-GAAP Metrics - The company emphasizes the importance of non-GAAP financial metrics to assess operational performance and trends[15]

Interim Results Announcement Overview This section provides a high-level overview of KANZHUN LIMITED's financial performance and key non-GAAP measures for the reporting period [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) The company achieved substantial year-on-year growth in revenues, operating income, and net income for the first half of 2023 Financial Performance Summary | Metric | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | Change (%) | |:-----------------------------|:--------------------------------------------------|:--------------------------------------------------|:-----------| | Revenues | 2,250,224 | 2,765,161 | 22.9% | | Income from operations | 73,029 | 97,732 | 33.8% | | Income before income tax | 94,444 | 383,740 | 306.3% | | Net income | 80,321 | 342,260 | 326.1% | | Adjusted net income (non-GAAP) | 363,367 | 813,453 | 123.9% | [Non-GAAP Financial Measure Reconciliation](index=2&type=section&id=Non-GAAP%20Financial%20Measure%20Reconciliation) The company uses adjusted net income, a non-GAAP measure, to evaluate operating performance by excluding non-cash share-based compensation expenses - Adjusted net income (non-GAAP) is defined as net income excluding share-based compensation expenses, which are non-cash and do not result in cash outflow. This measure is used by management to evaluate operating performance and facilitate period-to-period comparisons[4](index=4&type=chunk) Adjusted Net Income Reconciliation | Metric | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | |:-----------------------------------------|:--------------------------------------------------|:--------------------------------------------------| | Net income | 80,321 | 342,260 | | Add: Share-based compensation expenses | 283,046 | 471,193 | | Adjusted net income (non-GAAP financial measure) | 363,367 | 813,453 | Business Review and Outlook This section reviews the company's business performance, strategic initiatives, platform services, and future outlook [Business Review for the Reporting Period](index=3&type=section&id=Business%20Review%20for%20the%20Reporting%20Period) In the first half of 2023, KANZHUN LIMITED continued its strategy of technology innovation, enhancing user experience and strengthening its leadership in China's online recruitment market, evidenced by significant user growth and robust engagement - The company continued to execute its strategy centered on technology innovation, enhancing user experience and strengthening its leadership in the online recruitment market in China[8](index=8&type=chunk) User Metrics | Metric | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Change (%) | |:-------------------------------------|:-------------------------------|:-------------------------------|:-----------| | Average Monthly Active Users (MAU) | **25.9 million** | **41.7 million** | **61.0%** | | Average DAU/MAU (First Half of 2023) | Consistent with 2022 | **26.8%** | - | [Management Commentary](index=3&type=section&id=Management%20Commentary) Management expressed satisfaction with strong Q2 2023 results, highlighting robust MAU growth, expansion into blue-collar and lower-tier cities, and the effectiveness of their flexible monetization model in capturing recovery opportunities, leading to record-high net income and adjusted net income - Founder, Chairman, and CEO, Mr. Jonathan Peng Zhao, highlighted robust MAU growth to a historical high, with expansion among blue-collar users and in second-tier and lower-tier cities, attributing it to product and algorithm iteration[9](index=9&type=chunk) - CFO, Mr. Phil Yu Zhang, noted a **33.7% YoY revenue increase** for Q2 2023, and record-high net income of **RMB309.6 million** and adjusted net income of **RMB568.5 million** for the quarter, affirming the business model's effectiveness and resilience[9](index=9&type=chunk) [Platform and Services](index=4&type=section&id=Platform%20and%20Services) The BOSS Zhipin mobile app employs a 'direct recruitment model' to efficiently connect job seekers and enterprises through two-way communication and recommendations - The BOSS Zhipin mobile app employs a 'direct recruitment model' that integrates two-way communication and two-sided recommendations for efficient online recruitment[12](index=12&type=chunk) - Services for enterprise users include job posting, personalized candidate recommendations, direct communication, and value-added tools to enhance recruitment efficiency[13](index=13&type=chunk) - Services for job seekers include job recommendations, direct chats with employers, resume delivery, and value-added tools for job hunt preparation[13](index=13&type=chunk) [Monetization Model](index=5&type=section&id=Monetization%20Model) The primary revenue source is paid services offered to enterprise users, based on a connection-oriented strategy, supplemented by value-added tools - Most revenue is generated from paid direct recruitment services and value-added tools offered to enterprise users, based on a connection-oriented monetization strategy[14](index=14&type=chunk) - Job seekers receive free core job seeking services, with paid value-added tools available to assist their job hunt[14](index=14&type=chunk) [Sales and Marketing](index=5&type=section&id=Sales%20and%20Marketing) The company leverages a proprietary CRM system to empower its sales team, acquires user traffic through online channels and organic growth, and invests in brand promotion - Sales team is empowered by a proprietary CRM system to identify and engage with employers for bulk purchases or tailored services, utilizing data-driven insights[15](index=15&type=chunk) - User traffic is acquired from online third-party channels (app stores, search engines, info feeds, social networking platforms) and organic growth (word-of-mouth, brand recognition)[15](index=15&type=chunk) - Brand image is promoted through various marketing initiatives, including outdoor, TV, video advertising, and campaigns at major events[15](index=15&type=chunk) [Recent Developments](index=5&type=section&id=Recent%20Developments) The company held its Annual General Meeting on June 26, 2023, and authorized a new share repurchase program of up to US$150 million - The Annual General Meeting was held on June 26, 2023, with all proposed resolutions adopted[16](index=16&type=chunk) - A new share repurchase program of up to **US$150 million** was authorized in March 2023. During the reporting period, over **1.4 million Class A ordinary shares** were repurchased for approximately **US$10.0 million**[17](index=17&type=chunk) [Business Outlook](index=6&type=section&id=Business%20Outlook) For the second half of 2023, the company plans to expand its user base, optimize sales and marketing, and continue investing in technology development - Plans to expand user base across job seekers, enterprise users, and various industries/areas in the second half of 2023[18](index=18&type=chunk) - Will optimize sales and marketing strategy while continuing investment in this area[18](index=18&type=chunk) - Commitment to ongoing technology developments to enhance the user-friendly ecosystem, reinforce technology infrastructure, and refine recommendation algorithms[18](index=18&type=chunk) Management Discussion and Analysis This section offers a detailed analysis of the company's financial performance, including revenues, costs, and income [Overview of Financial Performance (Table)](index=6&type=section&id=Overview%20of%20Financial%20Performance%20(Table)) The table provides a detailed breakdown of revenues, operating costs and expenses, and other income/expenses, culminating in net income for the six months ended June 30, 2022 and 2023 Consolidated Financial Performance | Metric | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | |:----------------------------------------------|:--------------------------------------------------|:--------------------------------------------------| | Revenues | | | | Online recruitment services to enterprise customers | 2,227,184 | 2,730,879 | | Others | 23,040 | 34,282 | | **Total revenues** | **2,250,224** | **2,765,161** | | Operating cost and expenses | | | | Cost of revenues | (351,578) | (517,486) | | Sales and marketing expenses | (921,900) | (1,100,431) | | Research and development expenses | (598,425) | (698,975) | | General and administrative expenses | (316,035) | (367,572) | | **Total operating cost and expenses** | **(2,187,938)** | **(2,684,464)** | | Other operating income, net | 10,743 | 17,035 | | **Income from operations** | **73,029** | **97,732** | | Investment income | 17,075 | 147,084 | | Financial income, net | 24,185 | 131,587 | | Foreign exchange gain | 4,694 | 2,808 | | Other (expenses)/income, net | (24,539) | 4,529 | | **Income before income tax expenses** | **94,444** | **383,740** | | Income tax expenses | (14,123) | (41,480) | | **Net income** | **80,321** | **342,260** | Share-based Compensation Expenses Allocation | Category | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | |:----------------------------------|:--------------------------------------------------|:--------------------------------------------------| | Cost of revenues | 16,113 | 22,962 | | Sales and marketing expenses | 63,817 | 124,530 | | Research and development expenses | 115,117 | 196,430 | | General and administrative expenses | 87,999 | 127,271 | | **Total** | **283,046** | **471,193** | [Revenues Analysis](index=7&type=section&id=Revenues%20Analysis) Total revenues increased by **22.9%** to **RMB2.8 billion**, primarily driven by user growth and engagement - Total revenues increased by **22.9%** to **RMB2.8 billion** for the six months ended June 30, 2023, primarily due to user growth and increased user engagement[22](index=22&type=chunk) - Revenues from online recruitment services to enterprise customers increased by **22.6%** to **RMB2.7 billion**[22](index=22&type=chunk) - Revenues from other services (mainly paid value-added services for job seekers) increased by **49.1%** to **RMB34.3 million**, benefiting from an expanded user base[22](index=22&type=chunk) [Cost of Revenues Analysis](index=7&type=section&id=Cost%20of%20Revenues%20Analysis) Cost of revenues rose by **47.2%** to **RMB517.5 million**, mainly due to increased server and bandwidth costs and payment processing costs, in line with business growth - Cost of revenues increased by **47.2%** to **RMB517.5 million**, primarily driven by higher server and bandwidth costs and payment processing costs, reflecting business growth[23](index=23&type=chunk) [Sales and Marketing Expenses Analysis](index=7&type=section&id=Sales%20and%20Marketing%20Expenses%20Analysis) Sales and marketing expenses increased by **19.4%** to **RMB1.1 billion**, primarily due to higher employee-related expenses, brand advertising, and customer acquisition costs - Sales and marketing expenses increased by **19.4%** to **RMB1,100.4 million**, mainly due to increases in employee-related expenses, brand advertising expenses, and customer acquisition costs[24](index=24&type=chunk) [Research and Development Expenses Analysis](index=7&type=section&id=Research%20and%20Development%20Expenses%20Analysis) Research and development expenses grew by **16.8%** to **RMB699.0 million**, primarily attributable to increased share-based compensation expenses - Research and development expenses increased by **16.8%** to **RMB699.0 million**, primarily due to increased share-based compensation expenses[25](index=25&type=chunk) [General and Administrative Expenses Analysis](index=7&type=section&id=General%20and%20Administrative%20Expenses%20Analysis) General and administrative expenses increased by **16.3%** to **RMB367.6 million**, mainly driven by higher share-based compensation expenses - General and administrative expenses increased by **16.3%** to **RMB367.6 million**, mainly due to increased share-based compensation expenses[26](index=26&type=chunk) [Income from Operations Analysis](index=7&type=section&id=Income%20from%20Operations%20Analysis) Income from operations increased by **33.8%** to **RMB97.7 million**, reflecting the overall business growth and expense management - Income from operations increased by **33.8%** to **RMB97.7 million** for the six months ended June 30, 2023[27](index=27&type=chunk) [Income Tax Expenses Analysis](index=7&type=section&id=Income%20Tax%20Expenses%20Analysis) Income tax expenses increased significantly to **RMB41.5 million** for the first half of 2023, up from **RMB14.1 million** in the prior year - Income tax expenses increased to **RMB41.5 million** for the six months ended June 30, 2023, compared to **RMB14.1 million** in the corresponding period of 2022[28](index=28&type=chunk) [Net Income Analysis](index=7&type=section&id=Net%20Income%20Analysis) Net income surged by **326.1%** to **RMB342.3 million**, primarily due to increased investment and financial income from treasury management - Net income increased by **326.1%** to **RMB342.3 million**, primarily due to increased investment income and financial income from the company's treasury management strategy, including investments in time deposits and principal-guaranteed fixed rate notes[29](index=29&type=chunk) Other Financial Information This section details the company's liquidity, capital resources, investments, and other key financial aspects [Liquidity and Capital Resources](index=8&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company maintained strong liquidity with **RMB12.8 billion** in cash, cash equivalents, time deposits, and short-term investments - Cash and cash equivalents, time deposits, and short-term investments totaled **RMB12.8 billion** as of June 30, 2023[30](index=30&type=chunk) - Net cash generated from operating activities for the first half of 2023 was **RMB1.3 billion**[30](index=30&type=chunk) [Interest-bearing Bank and Other Borrowings](index=8&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) The Group did not have any interest-bearing bank or other borrowings as of June 30, 2023 - The Group did not have any interest-bearing bank and other borrowings as of June 30, 2023[30](index=30&type=chunk) [Significant Investments](index=8&type=section&id=Significant%20Investments) The Group made significant investments in principal-guaranteed fixed rate notes with UBS AG and Goldman Sachs, totaling **US$320 million** Fixed Rate Notes Investments | Issue Date | Parties to the fixed rate notes | Interest Rate (per annum) | Maturity Date | Principal amount of subscription (US$) | |:-----------|:--------------------------------|:--------------------------|:--------------|:---------------------------------| | May 30, 2023 | The Company, UBS AG | 5.30% | May 30, 2025 | 150,000,000 | | June 14, 2023 | The Company, Goldman Sachs | 5.33% | June 14, 2024 | 100,000,000 | | June 14, 2023 | The Company, Goldman Sachs | 5.23% | June 14, 2025 | 70,000,000 | - The fixed rate notes are principal-guaranteed with fixed returns, akin to bank deposits, and were determined to be fair and reasonable after arm's length negotiation[33](index=33&type=chunk) [Material Acquisitions and Disposals](index=9&type=section&id=Material%20Acquisitions%20and%20Disposals) The Group did not have any material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associated companies during the Reporting Period - The Group did not have any material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associated companies during the Reporting Period[34](index=34&type=chunk) [Pledge of Assets](index=9&type=section&id=Pledge%20of%20Assets) As of June 30, 2023, the Group did not have any pledge of assets - As of June 30, 2023, the Group did not have any pledge of assets[34](index=34&type=chunk) [Future Plans for Material Investments and Capital Assets](index=9&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2023, the Group did not have any detailed future plans for material investments or capital assets - As of June 30, 2023, the Group did not have any detailed future plans for material investments or capital assets[34](index=34&type=chunk) [Gearing Ratio](index=9&type=section&id=Gearing%20Ratio) The Group's gearing ratio was nil as of June 30, 2023, consistent with December 31, 2022, due to having no borrowings - The Group's gearing ratio was nil as of June 30, 2023, as it had no borrowings[34](index=34&type=chunk) [Foreign Exchange Exposure](index=9&type=section&id=Foreign%20Exchange%20Exposure) The majority of the Group's revenues and expenses are in RMB, while most cash and cash equivalents are in U.S. dollars - Substantially all revenues and the majority of expenses are denominated in Renminbi (RMB)[35](index=35&type=chunk) - The majority of cash and cash equivalents are denominated in U.S. dollars[35](index=35&type=chunk) - The company monitors currency risk but has not used derivative financial instruments to hedge exposure[35](index=35&type=chunk) [Contingent Liabilities](index=10&type=section&id=Contingent%20Liabilities) The Company had no material contingent liabilities as of June 30, 2023 - The Company had no material contingent liabilities as of June 30, 2023[37](index=37&type=chunk) [Capital Expenditure Commitment](index=10&type=section&id=Capital%20Expenditure%20Commitment) The Company had no material capital expenditure commitment as of June 30, 2023 - The Company had no material capital expenditure commitment as of June 30, 2023[38](index=38&type=chunk) [Employees and Remuneration Policies](index=10&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2023, the Group had **5,434 employees**, with sales and marketing comprising the largest function - As of June 30, 2023, the Group had a total of **5,434 employees**[39](index=39&type=chunk) Employee Distribution by Function | Function | Number of employees | % of total | |:-----------------------------|:--------------------|:-----------| | Sales and marketing | 2,702 | 49.7% | | Research and development | 1,346 | 24.8% | | Operations | 1,111 | 20.4% | | General administration | 275 | 5.1% | | **Total** | **5,434** | **100.0%** | - Remuneration policies include competitive salaries, incentive share grants, and participation in government statutory employee benefit plans (social insurance, housing funds), supplemented by employer's liability and commercial health insurance[40](index=40&type=chunk) Corporate Governance This section outlines the company's adherence to corporate governance standards, including board structure and securities transaction policies [Compliance with Corporate Governance Code](index=11&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company generally complied with the Corporate Governance Code, with a noted deviation where Mr. Peng Zhao holds both Chairman and CEO roles - The Company complied with all code provisions of the Corporate Governance Code, except for provision C.2.1, where Mr. Peng Zhao holds both the Chairman and Chief Executive Officer roles[42](index=42&type=chunk)[44](index=44&type=chunk) - The Board believes this dual role ensures consistent leadership, effective strategic planning, and prompt decision-making, with major decisions made in consultation with Board members and independent non-executive Directors[44](index=44&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=11&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted a Management Trading of Securities Policy, with terms no less exacting than the Model Code, and all Directors and relevant employees confirmed compliance - The Company adopted a Management Trading of Securities Policy, with terms no less exacting than the Model Code, and all Directors and relevant employees confirmed compliance during the Reporting Period[45](index=45&type=chunk) [Audit Committee](index=11&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive Directors, monitors financial statement integrity, compliance, and internal controls - The Audit Committee comprises three independent non-executive Directors: Mr. Charles Zhaoxuan Yang (Chairman), Mr. Yonggang Sun, and Mr. Yusheng Wang[46](index=46&type=chunk) - Primary duties include monitoring financial statement integrity, compliance with legal/regulatory requirements, reviewing internal control over financial reporting, and approving related party transactions[46](index=46&type=chunk) - The Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and discussed accounting policies and internal controls with senior management[47](index=47&type=chunk) Other Information This section covers additional disclosures including share repurchases, litigation, dividends, and significant post-period events [Purchase, Sale or Redemption of the Company's Listed Securities](index=12&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the Reporting Period, the Company repurchased **721,426 ADSs** (representing **1,442,852 Class A ordinary shares**) for approximately **US$10.0 million** on Nasdaq - The Company repurchased **721,426 ADSs** (**1,442,852 Class A ordinary shares**) for an aggregate consideration of approximately **US$10.0 million** on Nasdaq during the Reporting Period[49](index=49&type=chunk) Share Repurchase Details | Trading Month | Number of Class A ordinary shares repurchased | Highest price paid (US$) | Lowest price paid (US$) | Aggregate consideration paid (US$) | |:--------------|:----------------------------------------------|:-------------------------|:------------------------|:-----------------------------------| | May 2023 | 1,442,852 | 7.185 | 6.585 | 9,999,822.98 | - The repurchased shares were cancelled in July 2023, and Mr. Zhao, the WVR beneficiary, proportionately reduced his WVR by converting Class B ordinary shares to Class A ordinary shares[50](index=50&type=chunk) [Material Litigation](index=12&type=section&id=Material%20Litigation) The Company was not involved in any material litigation or arbitration, nor was it aware of any pending or threatened material litigation or claims against the Group during the six months ended June 30, 2023 - The Company was not involved in any material litigation or arbitration, and no material litigation or claims were pending or threatened against the Group during the Reporting Period[52](index=52&type=chunk) [Interim Dividend](index=12&type=section&id=Interim%20Dividend) The Board did not recommend any interim dividend for the six months ended June 30, 2023 - The Board did not recommend any interim dividend for the six months ended June 30, 2023[53](index=53&type=chunk) [Significant Events after the Reporting Period](index=12&type=section&id=Significant%20Events%20after%20the%20Reporting%20Period) No significant events that might affect the Company after the Reporting Period were disclosed in this announcement, apart from the investment mentioned in the notes - Save as disclosed in this announcement (referring to the subsequent event in Note 11), there were no significant events that might affect the Company after the Reporting Period[54](index=54&type=chunk) Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements, including statements of comprehensive income, balance sheets, and cash flows, along with detailed notes [Statements of Comprehensive Income](index=13&type=section&id=Statements%20of%20Comprehensive%20Income) The unaudited condensed consolidated statements of comprehensive income show a significant increase in net income and total comprehensive income for the six months ended June 30, 2023 Condensed Consolidated Statements of Comprehensive Income | Metric | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | |:----------------------------------------------|:--------------------------------------------------|:--------------------------------------------------| | Total revenues | 2,250,224 | 2,765,161 | | Total operating cost and expenses | (2,187,938) | (2,684,464) | | Income from operations | 73,029 | 97,732 | | Investment income | 17,075 | 147,084 | | Financial income, net | 24,185 | 131,587 | | Income before income tax expenses | 94,444 | 383,740 | | Income tax expenses | (14,123) | (41,480) | | **Net income** | **80,321** | **342,260** | | Other comprehensive income (Foreign currency translation adjustments) | 539,012 | 403,775 | | **Total comprehensive income** | **619,333** | **746,035** | | Basic Net income per share (RMB) | 0.09 | 0.39 | | Diluted Net income per share (RMB) | 0.09 | 0.38 | [Balance Sheets](index=14&type=section&id=Balance%20Sheets) The unaudited condensed consolidated balance sheets show an increase in total assets, primarily driven by a shift from cash to time deposits and short-term investments Condensed Consolidated Balance Sheets | Asset/Liability/Equity | As of December 31, 2022 (RMB thousands) | As of June 30, 2023 (RMB thousands) | |:----------------------------------------|:-------------------------------------------|:---------------------------------------| | **ASSETS** | | | | Cash and cash equivalents | 9,751,824 | 2,740,769 | | Time deposits and short-term investments | 3,458,089 | 10,050,063 | | **Total current assets** | **13,826,262** | **13,252,498** | | Long-term investments | – | 1,952,215 | | **Total non-current assets** | **1,000,605** | **3,130,303** | | **Total assets** | **14,826,867** | **16,382,801** | | **LIABILITIES** | | | | Deferred revenue | 2,060,892 | 2,564,777 | | **Total current liabilities** | **3,031,109** | **3,407,198** | | **Total liabilities** | **3,186,104** | **3,550,793** | | **SHAREHOLDERS' EQUITY** | | | | **Total shareholders' equity** | **11,640,763** | **12,832,008** | [Statements of Cash Flows](index=15&type=section&id=Statements%20of%20Cash%20Flows) The unaudited condensed consolidated statements of cash flows show increased operating cash flow but substantial investing outflows, leading to a net decrease in cash and cash equivalents Condensed Consolidated Statements of Cash Flows | Cash Flow Category | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | |:-------------------------------------------------|:--------------------------------------------------|:--------------------------------------------------| | Net cash provided by operating activities | 480,948 | 1,307,618 | | Net cash used in investing activities | (97,909) | (8,390,368) | | Net cash (used in)/provided by financing activities | (87,816) | 68,955 | | Effect of exchange rate changes on cash and cash equivalents | 537,116 | 2,740 | | **Net increase/(decrease) in cash and cash equivalents** | **832,339** | **(7,011,055)** | | Cash and cash equivalents at beginning of the period | 11,341,758 | 9,751,824 | | **Cash and cash equivalents at end of the period** | **12,174,097** | **2,740,769** | [Notes to Financial Statements](index=16&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, clarifying accounting policies and specific financial items [General Information](index=16&type=section&id=General%20Information) KANZHUN LIMITED, incorporated in the Cayman Islands, primarily provides online recruitment services through its 'BOSS Zhipin' platform in the PRC - KANZHUN LIMITED, incorporated in the Cayman Islands, primarily provides online recruitment services through its 'BOSS Zhipin' platform in the People's Republic of China[62](index=62&type=chunk) [Basis of Presentation](index=16&type=section&id=Basis%20of%20Presentation) The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and Hong Kong Listing Rules for interim information - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and Hong Kong Listing Rules for interim financial information[63](index=63&type=chunk) - They are prepared on the same basis as the audited consolidated financial statements of the preceding fiscal year and include all adjustments necessary for fair statement[63](index=63&type=chunk) [Revenues (Detailed by account type)](index=16&type=section&id=Revenues%20(Detailed%20by%20account%20type)) Revenues from online recruitment services to enterprise customers increased across all account sizes, with small-sized accounts showing the highest growth Revenues by Source and Account Type | Revenue Source | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | |:----------------------------------------------|:--------------------------------------------------|:--------------------------------------------------| | Online recruitment services to enterprise customers | 2,227,184 | 2,730,879 | | – Key accounts (RMB50,000+ annually) | 517,925 | 551,984 | | – Mid-sized accounts (RMB5,000-RMB50,000 annually) | 910,848 | 995,592 | | – Small-sized accounts (RMB5,000 or less annually) | 798,411 | 1,183,303 | | Others | 23,040 | 34,282 | | **Total** | **2,250,224** | **2,765,161** | - For online recruitment services, **RMB1,988.3 million** was recognized over time and **RMB742.6 million** at a point in time for the first half of 2023[65](index=65&type=chunk) [Income Tax](index=17&type=section&id=Income%20Tax) The company is exempt from income tax in the Cayman Islands, subject to **16.5%** profit tax in Hong Kong, and its PRC VIE enjoys a preferential **15%** tax rate as a 'High and New Technology Enterprise' - Cayman Islands: Not subject to income or capital gain tax[67](index=67&type=chunk) - Hong Kong: Subsidiary subject to **16.5%** Hong Kong profit tax[68](index=68&type=chunk) - China: Consolidated VIE, Beijing Huapin Borui Network Technology Co., Ltd., qualifies as a 'High and New Technology Enterprise' (HNTE) and enjoys a preferential income tax rate of **15%**[69](index=69&type=chunk) - China: Enterprises engaging in R&D activities are entitled to claim a **200%** super deduction for qualified R&D expenses from January 1, 2023, onwards[70](index=70&type=chunk) Income Tax Expenses | Income Tax Component | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | |:---------------------------|:--------------------------------------------------|:--------------------------------------------------| | Current income tax expenses | 14,123 | 27,069 | | Deferred income tax expenses | – | 14,411 | | **Total** | **14,123** | **41,480** | [Net Income Per Share](index=18&type=section&id=Net%20Income%20Per%20Share) Basic net income per share increased significantly to **RMB0.39** for the six months ended June 30, 2023, from **RMB0.09** in the prior year Net Income Per Share Calculation | Metric | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | |:----------------------------------------------|:-------------------------------|:-------------------------------| | Net income attributable to ordinary shareholders (RMB thousands) | 80,321 | 342,260 | | Weighted average number of ordinary shares (Basic) | 869,427,036 | 867,314,841 | | Weighted average number of ordinary shares (Diluted) | 917,484,059 | 903,757,988 | | Basic Net income per share (RMB) | **0.09** | **0.39** | | Diluted Net income per share (RMB) | **0.09** | **0.38** | [Time Deposits and Short-term Investments](index=18&type=section&id=Time%20Deposits%20and%20Short-term%20Investments) The company significantly increased its time deposits and short-term investments to **RMB10.05 billion** as of June 30, 2023, from **RMB3.46 billion** at the end of 2022 Time Deposits and Short-term Investments Breakdown | Investment Type | As of December 31, 2022 (RMB thousands) | As of June 30, 2023 (RMB thousands) | |:----------------------------------------------|:-------------------------------------------|:---------------------------------------| | Time deposits | 793,042 | 7,087,902 | | Principal-guaranteed fixed rate notes | 2,665,047 | 1,879,280 | | Structured deposits | – | 724,399 | | Wealth management products | – | 351,164 | | Others | – | 7,318 | | **Total time deposits and short-term investments** | **3,458,089** | **10,050,063** | [Accounts Receivable, Net](index=19&type=section&id=Accounts%20Receivable%2C%20Net) Accounts receivable, net, increased to **RMB15,196 thousand** as of June 30, 2023, with a notable increase in receivables between 3 and 6 months Accounts Receivable Aging Analysis | Aging Analysis | As of December 31, 2022 (RMB thousands) | As of June 30, 2023 (RMB thousands) | |:--------------------------------|:-------------------------------------------|:---------------------------------------| | Within 3 months | 8,903 | 10,067 | | Between 3 months and 6 months | 415 | 4,479 | | Between 6 months and 1 year | 92 | 513 | | More than 1 year | 452 | 137 | | **Total** | **9,862** | **15,196** | [Prepayments and Other Current Assets](index=19&type=section&id=Prepayments%20and%20Other%20Current%20Assets) Prepayments and other current assets decreased to **RMB436,934 thousand**, primarily due to a reduction in prepaid advertising expenses and receivables related to share-based awards Prepayments and Other Current Assets Breakdown | Item | As of December 31, 2022 (RMB thousands) | As of June 30, 2023 (RMB thousands) | |:---------------------------------------------|:-------------------------------------------|:---------------------------------------| | Prepaid advertising expenses and service fee | 211,604 | 125,409 | | Receivables from third-party on-line payment platforms | 30,317 | 102,856 | | Deposits | 68,390 | 60,948 | | Receivables related to the exercise of share-based awards | 172,452 | 52,691 | | Staff loans and advances | 33,672 | 29,818 | | Others | 84,338 | 65,212 | | **Total** | **600,773** | **436,934** | [Accounts Payable](index=19&type=section&id=Accounts%20Payable) Accounts payable decreased to **RMB173,483 thousand**, mainly driven by a reduction in payables for property, equipment, and software, and advertising expenses Accounts Payable Breakdown | Item | As of December 31, 2022 (RMB thousands) | As of June 30, 2023 (RMB thousands) | |:------------------------------------------|:-------------------------------------------|:---------------------------------------| | Payables for purchase of property, equipment and software | 142,142 | 121,919 | | Payables for advertising expenses | 32,277 | 23,249 | | Others | 10,878 | 28,315 | | **Total** | **185,297** | **173,483** | Accounts Payable Aging Analysis | Aging Analysis | As of December 31, 2022 (RMB thousands) | As of June 30, 2023 (RMB thousands) | |:--------------------------------|:-------------------------------------------|:---------------------------------------| | Within 3 months | 163,146 | 154,736 | | Between 3 months and 6 months | 9,152 | 2,902 | | Between 6 months and 1 year | 7,667 | 4,247 | | More than 1 year | 5,332 | 11,598 | | **Total** | **185,297** | **173,483** | [Other Payables and Accrued Liabilities](index=20&type=section&id=Other%20Payables%20and%20Accrued%20Liabilities) Other payables and accrued liabilities decreased to **RMB520,012 thousand**, primarily due to reductions in salary, welfare, and bonus payable, and tax payable Other Payables and Accrued Liabilities Breakdown | Item | As of December 31, 2022 (RMB thousands) | As of June 30, 2023 (RMB thousands) | |:-----------------------------------|:-------------------------------------------|:---------------------------------------| | Salary, welfare and bonus payable | 366,454 | 321,008 | | Consideration payable for share repurchase | – | 72,361 | | Advance from customers | 58,630 | 64,669 | | Tax payable | 152,598 | 48,221 | | Others | 55,800 | 13,753 | | **Total** | **633,482** | **520,012** | [Subsequent Event](index=20&type=section&id=Subsequent%20Event) In August 2023, the Group invested **RMB100.0 million** for approximately **1.38%** equity interest in a technology company - In August 2023, the Group invested **RMB100.0 million** for approximately **1.38%** equity interest in a technology company[84](index=84&type=chunk) [Dividend](index=20&type=section&id=Dividend) No dividend was declared for the six-month periods ended June 30, 2022 and 2023 - No dividend was declared for the six-month period ended June 30, 2022 and 2023[85](index=85&type=chunk) Administrative Details This section provides administrative information regarding the publication of interim results and the composition of the Board of Directors [Publication of Interim Results Announcement and Interim Report](index=21&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on the Hong Kong Stock Exchange and the Company's investor relations websites - Interim results announcement published on Hong Kong Stock Exchange (http://www.hkexnews.hk) and Company (https://ir.zhipin.com/) websites[87](index=87&type=chunk) - The interim report for the six months ended June 30, 2023, will be despatched to Shareholders and made available on the aforementioned websites[87](index=87&type=chunk) [Board of Directors Composition](index=21&type=section&id=Board%20of%20Directors%20Composition) As of August 29, 2023, the Board of Directors comprises five executive Directors, one non-executive Director, and three independent non-executive Directors - Executive Directors: Mr. Peng Zhao (Founder, Chairman and Chief Executive Officer), Mr. Yu Zhang, Mr. Xu Chen, Mr. Tao Zhang, Ms. Xiehua Wang[87](index=87&type=chunk) - Non-executive Director: Mr. Haiyang Yu[87](index=87&type=chunk) - Independent Non-executive Directors: Mr. Charles Zhaoxuan Yang, Mr. Yonggang Sun, Mr. Yusheng Wang[87](index=87&type=chunk)