Kanzhun Limited (NASDAQ:BZ) Q1 2023 Earnings Conference Call May 24, 2023 8:00 AM ET Company Participants Wen Bei Wang - Head of Investor Relations Jonathan Peng Zhao - Founder, Chairman and Chief Executive Officer Phil Yu Zhang - Chief Financial Officer Conference Call Participants Eddy Wang - Morgan Stanley Wei Xiong - UBS Timothy Zhao - Goldman Sachs Operator Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited First Quarter 2023 Financial Results Conference Call. At this t ...

Financial Performance - For Q1 2023, the revenue was RMB 1,277.5 million (USD 186.0 million), an increase of 12.3% compared to RMB 1,137.9 million in Q1 2022[4] - The calculated cash receipts for Q1 2023 were RMB 1,649.6 million (USD 240.2 million), up 27.7% from RMB 1,291.5 million in Q1 2022[4] - The net profit for Q1 2023 was RMB 32.7 million (USD 4.8 million), compared to a net loss of RMB 12.2 million in Q1 2022[4] - Adjusted net profit for Q1 2023 was RMB 245.0 million (USD 35.7 million), a 102.3% increase from RMB 121.1 million in Q1 2022[4] - Operating cash flow for Q1 2023 was RMB 543.9 million (USD 79.2 million), up 85.0% from RMB 294.0 million in Q1 2022[9] - Total revenue for the three months ended March 31, 2023, was RMB 1,277,546 thousand, representing a 12.3% increase from RMB 1,137,880 thousand in the same period of 2022[15] - The net profit for the three months ended March 31, 2023, was RMB 32,663 thousand, a turnaround from a net loss of RMB 12,172 thousand in the same period of the previous year[19] - Adjusted net profit for the three months ended March 31, 2023, was RMB 244,954 thousand, compared to RMB 121,054 thousand for the same period in 2022, reflecting a significant increase of approximately 102.5%[19] User Metrics - The average monthly active users in Q1 2023 reached 39.7 million, a 57.5% increase from 25.2 million in Q1 2022[4] - The total number of paid enterprise customers remained stable at 4.0 million as of March 31, 2023, compared to the same period in 2022[4] Expenses - Operating costs and expenses totaled RMB 1,373.7 million (USD 200.0 million) in Q1 2023, a 19.9% increase from RMB 1,146.1 million in Q1 2022[6] - Marketing expenses in Q1 2023 were RMB 628.8 million (USD 91.6 million), up 20.4% from RMB 522.4 million in Q1 2022[6] - Research and development expenses for Q1 2023 were RMB 333.1 million (USD 48.5 million), an increase of 14.6% from RMB 290.7 million in Q1 2022[6] - The company reported a significant increase in equity incentive expenses, which rose to RMB 212,291 thousand for the three months ended March 31, 2023, from RMB 133,226 thousand in the same period of 2022, an increase of approximately 59.4%[19] Shareholder Information - The adjusted earnings per American Depositary Share (ADS) for Q1 2023 were RMB 0.57 (USD 0.08), compared to RMB 0.28 in Q1 2022, reflecting strong growth[8] - The basic and diluted net profit per ADS for Q1 2023 were RMB 0.08 (USD 0.01) and RMB 0.07 (USD 0.01), respectively, compared to a loss of RMB 0.03 in the same period of 2022[8] - The company approved a new share repurchase plan in March 2023, allowing for the repurchase of up to USD 150 million worth of shares over the next 12 months[9] Future Outlook - The company expects total revenue for Q2 2023 to be between RMB 1.43 billion and RMB 1.46 billion, representing a year-over-year increase of 28.6% to 31.3%[9] - The company continues to focus on market expansion and new product development as part of its strategic initiatives moving forward[19] Cash and Assets - As of March 31, 2023, cash and cash equivalents, along with short-term investments, totaled RMB 13,456.1 million (USD 1,959.4 million)[9] - Cash and cash equivalents decreased to RMB 6,254,572 thousand as of March 31, 2023, down from RMB 9,751,824 thousand as of December 31, 2022[17] - Total assets as of March 31, 2023, were RMB 15,004,876 thousand, an increase from RMB 14,826,867 thousand as of December 31, 2022[17] Other Financial Metrics - The company emphasizes the importance of non-GAAP financial metrics for assessing business performance, which should not be solely relied upon[12] - The company reported a foreign exchange loss of RMB 1,099 thousand for the three months ended March 31, 2023, compared to a loss of RMB 442 thousand in the same period of 2022[15] - Deferred revenue increased to RMB 372,011 thousand for the three months ended March 31, 2023, from RMB 153,640 thousand in the same period of 2022, representing a growth of approximately 142.5%[19]

[DEFINITIONS](index=3&type=section&id=DEFINITIONS) This section defines key legal and company-specific terminology used throughout the circular - This section provides definitions for key terms used throughout the circular, ensuring clarity and consistent understanding of legal and company-specific terminology[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [LETTER FROM THE BOARD](index=7&type=section&id=LETTER%20FROM%20THE%20BOARD) This letter outlines the agenda for the Annual General Meeting, including key proposals and board recommendations [1. Introduction](index=7&type=section&id=1.%20Introduction) The Board invites shareholders to the June 26, 2023 AGM to vote on key proposals for the company's governance - The Annual General Meeting (AGM) is scheduled for **Monday, June 26, 2023**, at 3 p.m. Beijing time[13](index=13&type=chunk)[28](index=28&type=chunk) - Key proposals include the **re-election of directors**, grant of mandates for **share issuance and repurchase**, and **re-appointment of the auditor**[14](index=14&type=chunk) [2. Proposed Re-election of the Retiring Directors](index=8&type=section&id=2.%20Proposed%20Re-election%20of%20the%20Retiring%20Directors) The Board recommends the re-election of retiring directors Mr. Yu Zhang, Mr. Xu Chen, and Mr. Haiyang Yu - The following directors are proposed for re-election: **Mr. Yu Zhang**, **Mr. Xu Chen**, and **Mr. Haiyang Yu**[15](index=15&type=chunk) - The Nomination Committee and the Board recommend their re-election based on their **valuable contributions and experience**[16](index=16&type=chunk) [3. Proposed Grant of General Mandate to Issue Shares](index=8&type=section&id=3.%20Proposed%20Grant%20of%20General%20Mandate%20to%20Issue%20Shares) Shareholders are asked to approve a mandate for issuing new Class A Ordinary Shares up to 20% of total issued shares - The proposed Issuance Mandate allows Directors to allot, issue, and deal with additional Class A Ordinary Shares up to **20% of the total issued Shares**[20](index=20&type=chunk) Share Issuance Mandate Details | Metric | Value | | :--- | :--- | | Issued Class A Ordinary Shares (Latest Practicable Date) | 728,110,243 | | Issued Class B Ordinary Shares (Latest Practicable Date) | 140,830,401 | | Total Issued Shares (Assumed at AGM Date) | 868,940,644 | | Maximum Class A Ordinary Shares to be Issued (20% of total) | 173,788,128 | | Exclusions from Mandate | Rights Issue, Share Option Schemes, Vesting of Restricted Shares, Scrip Dividend, Specific Authority | | Mandate Expiration | Conclusion of next AGM, expiration of period for next AGM, or revocation by shareholders | [4. Proposed Grant of General Mandate to Repurchase Shares](index=9&type=section&id=4.%20Proposed%20Grant%20of%20General%20Mandate%20to%20Repurchase%20Shares) Shareholders are asked to approve a mandate for repurchasing up to 10% of the Company's total issued shares - The proposed Repurchase Mandate allows Directors to repurchase Shares up to **10% of the total issued Shares**[23](index=23&type=chunk) Share Repurchase Mandate Details | Metric | Value | | :--- | :--- | | Issued Class A Ordinary Shares (Latest Practicable Date) | 728,110,243 | | Issued Class B Ordinary Shares (Latest Practicable Date) | 140,830,401 | | Total Issued Shares (Assumed at AGM Date) | 868,940,644 | | Maximum Class A Ordinary Shares to be Repurchased (10% of total) | 86,894,064 | | Mandate Expiration | Conclusion of next AGM, expiration of period for next AGM, or revocation by shareholders | [5. Proposed Re-appointment of Auditor](index=10&type=section&id=5.%20Proposed%20Re-appointment%20of%20Auditor) The Board proposes re-appointing PricewaterhouseCoopers as the independent auditor for the 2023 fiscal year - **PricewaterhouseCoopers** is proposed for re-appointment as the independent auditor for the year ending December 31, 2023[27](index=27&type=chunk) - The Board also seeks authorization to **fix the auditor's remuneration** for the ensuing year[27](index=27&type=chunk) [6. The AGM and Proxy Arrangement](index=10&type=section&id=6.%20The%20AGM%20and%20Proxy%20Arrangement) This section details the AGM voting procedures, including weighted voting rights for different share classes - All resolutions proposed at the AGM will be **voted by way of poll**[31](index=31&type=chunk) - Voting rights are weighted: Class A shares have one vote, while Class B shares have **ten votes per share** for most resolutions[32](index=32&type=chunk) - Shareholders of record on **May 25, 2023**, are invited to attend or submit proxy/voting instructions[30](index=30&type=chunk) [7. Recommendations](index=11&type=section&id=7.%20Recommendations) The Board unanimously recommends that shareholders vote in favor of all proposed resolutions at the AGM - The Board recommends shareholders **vote in favor of all proposed resolutions**, including director re-election and share mandates[33](index=33&type=chunk) [8. Further Information](index=12&type=section&id=8.%20Further%20Information) Shareholders are directed to the appendices for additional detailed information on the proposed resolutions - Shareholders are advised to refer to the appendices for **further detailed information**[35](index=35&type=chunk) [9. Responsibility Statement](index=12&type=section&id=9.%20Responsibility%20Statement) The Directors collectively and individually affirm full responsibility for the accuracy of this circular - The Directors collectively and individually accept **full responsibility for the accuracy** of the information in this circular[36](index=36&type=chunk) [APPENDIX I – DETAILS OF THE RETIRING DIRECTORS PROPOSED TO BE RE-ELECTED AT THE AGM](index=13&type=section&id=APPENDIX%20I%20%E2%80%93%20DETAILS%20OF%20THE%20RETIRING%20DIRECTORS%20PROPOSED%20TO%20BE%20RE-ELECTED%20AT%20THE%20AGM) This appendix provides detailed biographical and professional information for the directors proposed for re-election [(1) ZHANG Yu](index=13&type=section&id=%281%29%20ZHANG%20Yu) This section details the background, experience, and shareholdings of executive director and CFO Mr. Yu Zhang - **Mr. Yu Zhang** (aged 46) is an executive director and Chief Financial Officer with over 17 years of TMT experience[38](index=38&type=chunk) - Mr. Zhang's term is for an initial three years from the Listing Date, subject to **re-election**[40](index=40&type=chunk) Mr. Yu Zhang's Share Interests and Emoluments | Metric | Value | | :--- | :--- | | Class A Ordinary Shares | 9,432,750 | | Director's Emoluments | None (in capacity as executive Director) | [(2) CHEN Xu](index=14&type=section&id=%282%29%20CHEN%20Xu) This section details the background, experience, and shareholdings of executive director and CMO Mr. Xu Chen - **Mr. Xu Chen** (aged 47) is an executive director and Chief Marketing Officer with over 20 years of marketing experience[46](index=46&type=chunk) - Mr. Chen's term is for an initial three years from the Listing Date, subject to **re-election**[47](index=47&type=chunk) Mr. Xu Chen's Share Interests and Emoluments | Metric | Value | | :--- | :--- | | Class A Ordinary Shares | 3,625,804 | | Director's Emoluments | None (in capacity as executive Director) | [(3) YU Haiyang](index=15&type=section&id=%283%29%20YU%20Haiyang) This section details the background and affiliations of non-executive director Mr. Haiyang Yu - **Mr. Haiyang Yu** (aged 40) is a non-executive director and also holds positions at a Tencent group company[53](index=53&type=chunk) - Mr. Yu's term is for an initial three years from the Listing Date, subject to **re-election**[56](index=56&type=chunk) Mr. Haiyang Yu's Share Interests and Emoluments | Metric | Value | | :--- | :--- | | Shares or Underlying Shares | None | | Director's Emoluments | None (in capacity as non-executive Director) | [APPENDIX II – EXPLANATORY STATEMENT ON THE REPURCHASE MANDATE](index=17&type=section&id=APPENDIX%20II%20%E2%80%93%20EXPLANATORY%20STATEMENT%20ON%20THE%20REPURCHASE%20MANDATE) This appendix explains the rationale, funding, and potential impacts of the proposed share repurchase mandate [1. Reasons for Repurchase of Shares](index=17&type=section&id=1.%20Reasons%20for%20Repurchase%20of%20Shares) The repurchase mandate provides flexibility to enhance shareholder value, though there are no immediate plans for its use - The Repurchase Mandate offers flexibility to **enhance net asset value and/or earnings per Share**[62](index=62&type=chunk) - The Directors have **no present intention to repurchase shares** but would exercise the power if it benefits the Company[62](index=62&type=chunk) [2. Share Capital](index=17&type=section&id=2.%20Share%20Capital) The mandate would authorize the repurchase of up to 86,894,064 shares, representing 10% of total issued shares Current Share Capital and Maximum Repurchase | Metric | Value | | :--- | :--- | | Issued Class A Ordinary Shares (Latest Practicable Date) | 728,110,243 | | Issued Class B Ordinary Shares (Latest Practicable Date) | 140,830,401 | | Total Issued Shares (Assumed at AGM Date) | 868,940,644 | | Maximum Shares Authorized for Repurchase (10%) | 86,894,064 | [3. Funding of Repurchases](index=17&type=section&id=3.%20Funding%20of%20Repurchases) Share repurchases will be financed using the Company's internal resources in compliance with all regulations - Share repurchases will be funded from the **Company's internal resources**, in accordance with applicable laws and regulations[64](index=64&type=chunk) [4. Impact of Repurchases](index=18&type=section&id=4.%20Impact%20of%20Repurchases) Full exercise of the repurchase mandate is not expected to materially impact the Company's financial position - **No material adverse impact** on the Company's working capital or gearing position is expected from the exercise of the Repurchase Mandate[66](index=66&type=chunk) - The Directors will not exercise the mandate to an extent that would **materially adversely affect** the Company's working capital or gearing levels[66](index=66&type=chunk) [5. Takeovers Code](index=18&type=section&id=5.%20Takeovers%20Code) Safeguards are in place to prevent the repurchase mandate from triggering a mandatory offer under the Takeovers Code - An increase in a shareholder's proportionate voting interest due to repurchases could **trigger the Takeovers Code**[67](index=67&type=chunk) - Mr. Zhao, the WVR Beneficiary, controls approximately 65.9% of voting rights and must reduce his weighted voting rights if his proportion increases, thus **no mandatory offer is expected**[68](index=68&type=chunk) - The Directors will not repurchase shares to an extent that would result in less than the **prescribed minimum public float**[69](index=69&type=chunk) [6. General](index=19&type=section&id=6.%20General) Directors and connected persons have no current intention to sell shares to the Company under the proposed mandate - None of the Directors or their close associates have any **present intention to sell shares** to the Company if the Repurchase Mandate is approved[71](index=71&type=chunk) - No core connected persons have notified the Company of an **intention to sell shares** or undertaken not to sell shares to the Company[71](index=71&type=chunk) - The Directors have undertaken to the Stock Exchange to exercise the repurchase power in accordance with **Listing Rules and applicable Cayman Islands laws**[71](index=71&type=chunk) [7. Market Prices of Shares](index=19&type=section&id=7.%20Market%20Prices%20of%20Shares) This section provides the historical high and low trading prices for the Company's shares since its listing Market Prices of Class A Ordinary Shares (HK$) | Month | Highest HK$ | Lowest HK$ | | :--- | :--- | :--- | | **2022** | | | | December (since Listing Date) | 78.75 | 76.00 | | **2023** | | | | January | 98.95 | 77.50 | | February | 97.85 | 78.50 | | March | 83.85 | 67.00 | | April | 74.50 | 74.50 | | May (up to Latest Practicable Date) | 74.50 | 69.90 | [8. Repurchases of Shares Made by the Company](index=19&type=section&id=8.%20Repurchases%20of%20Shares%20Made%20by%20the%20Company) The Company has not repurchased any of its Class A Ordinary Shares since its listing date - The Company has **not repurchased any Class A Ordinary Shares** on the Stock Exchange from its Listing Date up to the Latest Practicable Date[74](index=74&type=chunk) [NOTICE OF THE ANNUAL GENERAL MEETING](index=20&type=section&id=NOTICE%20OF%20THE%20ANNUAL%20GENERAL%20MEETING) This notice formally announces the AGM and lists the ordinary resolutions to be considered and voted upon [Ordinary Resolutions](index=20&type=section&id=Ordinary%20Resolutions) The AGM will consider nine ordinary resolutions, including financial adoption, director elections, and share mandates - The AGM will consider nine ordinary resolutions, including **adopting financial statements**, **re-electing directors**, granting **share issuance and repurchase mandates**, and **re-appointing the auditor**[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) [SHARES RECORD DATE AND ADS RECORD DATE](index=24&type=section&id=SHARES%20RECORD%20DATE%20AND%20ADS%20RECORD%20DATE) The record date for voting eligibility for both ordinary shares and American Depositary Shares is May 25, 2023 Record Dates for AGM Voting Eligibility | Record Date Type | Date | Time Zone | | :--- | :--- | :--- | | Share Record Date | May 25, 2023 | Hong Kong time | | ADS Record Date | May 25, 2023 | New York Time | [ATTENDING THE AGM](index=24&type=section&id=ATTENDING%20THE%20AGM) Only shareholders of record as of the Share Record Date are entitled to attend and vote at the AGM - Only holders of record of Shares as of the Share Record Date are **entitled to attend and vote** at the AGM[88](index=88&type=chunk) - The Company reserves the right to **refuse entry** or instruct persons to leave the AGM venue to comply with applicable laws and regulations[88](index=88&type=chunk) [PROXY FORMS AND ADS VOTING CARDS](index=24&type=section&id=PROXY%20FORMS%20AND%20ADS%20VOTING%20CARDS) This section outlines the deadlines and procedures for submitting proxy forms and ADS voting instructions - Shareholders can appoint a proxy, and ADS holders must submit **voting instructions to Citibank, N.A.**[89](index=89&type=chunk) Proxy/Voting Instruction Deadlines | Document Type | Recipient | Deadline | Time Zone | | :--- | :--- | :--- | :--- | | Proxy Form (for Shares) | Computershare Hong Kong Investor Services Limited | June 24, 2023, 3 p.m. | Hong Kong Time | | Voting Instructions (for ADSs) | Citibank, N.A. | June 14, 2023, 10 a.m. | New York Time |

Financial Performance - Total revenue for 2022 was RMB 4,511,062 thousand, representing a 5.9% increase from RMB 4,259,128 thousand in 2021[6]. - The adjusted net profit for 2022 was RMB 799,449 thousand, a decrease of 6.2% from RMB 852,572 thousand in 2021[6]. - Operating loss for 2022 was RMB (129,519) thousand, a significant improvement from RMB (1,036,320) thousand in 2021, reflecting an 87.5% reduction[6]. - Net profit for 2022 was RMB 107.2 million, a significant turnaround from a net loss of RMB 1 billion in 2021[26]. - Total revenue increased by 5.9% from RMB 43 billion in 2021 to RMB 45 billion in 2022, driven by continuous investment in service capabilities[20]. - Revenue from online recruitment services for corporate clients was RMB 4,461.3 million in 2022, up 5.7% from RMB 4,219.0 million in 2021[20]. - Other services revenue, primarily paid value-added services for job seekers, rose by 24.2% to RMB 49.8 million in 2022 from RMB 40.1 million in 2021[20]. - Operating costs increased by 36.1% from RMB 554.6 million in 2021 to RMB 754.9 million in 2022, mainly due to higher employee-related expenses and server costs[21]. - Marketing expenses rose by 3.0% to RMB 2 billion in 2022, influenced by increased brand advertising costs during the 2022 FIFA World Cup[22]. - R&D expenses surged by 43.9% to RMB 1.2 billion in 2022, attributed to higher employee-related costs[23]. - General and administrative expenses decreased by 63.9% to RMB 719.7 million in 2022, following a one-time equity incentive expense of RMB 1.5 billion in 2021[24]. User Engagement - The number of monthly active users for 2022 reached 28.7 million, up 5.9% from 27.1 million in 2021[9]. - The average daily active users as a percentage of monthly active users remained stable at 27.2% in 2022, consistent with 2021[9]. - The CEO highlighted strong user growth and engagement since early 2023, indicating a recovery in recruitment demand[10]. - The CFO noted robust financial performance despite external challenges, maintaining efficient marketing activities while scaling user growth[10]. - The company continues to focus on technology innovation and enhancing user experience to strengthen its leadership in the online recruitment market[9]. - The platform connects job seekers and employers through a highly interactive mobile application, emphasizing a seamless user experience[11]. Cash and Assets - Cash and cash equivalents increased by 8.0% to RMB 132 billion as of December 31, 2022, from RMB 122 billion at the end of 2021[26]. - As of December 31, 2022, the company had no interest-bearing bank loans or other borrowings, resulting in a debt-to-equity ratio of zero[27][28]. - The total number of employees as of December 31, 2022, was 5,602, with 46.8% in sales and marketing, 25.8% in R&D, 22.4% in operations, and 5.0% in general administration[31]. - The company reported an operating loss of RMB 129.5 million in 2022, compared to an operating loss of RMB 1 billion in 2021[25]. - The company reported a significant increase in investment income, which rose to RMB 65,150 in 2022 from RMB 24,744 in 2021, an increase of 163.5%[161]. - Total assets increased to RMB 14,826,867 in 2022, up from RMB 13,641,623 in 2021, reflecting a growth of 8.7%[160]. Regulatory and Compliance Risks - The company faces risks related to currency fluctuations, as most revenues and expenses are denominated in RMB while cash and cash equivalents are primarily in USD[29]. - The company must comply with complex and evolving laws and regulations in mainland China, which could impact its operations and growth[37]. - The company is exposed to competition in the online recruitment market in China, which may impact its market share and financial performance[36]. - The company has significant risks associated with variable interest entity structures, which may be impacted by changes in Chinese laws and regulations[175]. - The company’s ability to execute contracts related to variable interest entities may be limited due to uncertainties in the Chinese legal system[175]. Corporate Governance - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[80]. - The company has adhered to all corporate governance code provisions as per the listing rules, except for the separation of roles between the Chairman and CEO[77]. - The company emphasizes a healthy corporate culture as essential for long-term success and sustainable development[78]. - The board will periodically reassess the separation of roles between the Chairman and CEO to ensure effective decision-making[77]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance accountability[78]. - The company has established a remuneration committee to review and recommend the remuneration of directors and senior management, consisting of two independent non-executive directors and one executive director[89]. Shareholder Relations - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[114]. - The company is committed to timely and accurate disclosure of information to shareholders and the public[114]. - The company has established a shareholder communication policy to ensure ongoing dialogue with shareholders, particularly during annual general meetings[114]. - Major shareholders include Image Architecture Investment (Hong Kong) Limited and Tencent Holdings Limited, each holding 72,309,691 Class A ordinary shares, representing 9.98% of the total[120]. Equity Incentive Plans - The company has implemented a stock incentive plan for management and eligible employees, with expenses recognized based on the fair value of the awards granted[197]. - The maximum number of new shares that can be issued under the 2020 Share Incentive Plan is 145,696,410 shares, with an annual increase of 1.5% based on the total issued and outstanding shares[125]. - The 2020 Share Incentive Plan aims to attract and retain top talent by providing selected employees, directors, and consultants with additional rewards and opportunities to acquire shares[123]. - The company has not granted any options or awards under the 2020 Share Incentive Plan or the post-IPO share plan during the reporting period[122]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2022, in accordance with US GAAP[149]. - The auditor's remuneration for audit and audit-related services for the years ended December 31, 2021, and 2022 was RMB 13,910 thousand and RMB 18,983 thousand, respectively, showing an increase in audit fees[196]. - The company has adopted ASC 842 for operating leases, recognizing right-of-use assets and lease liabilities based on the present value of lease payments[197]. - The company has not recognized any significant uncertain tax positions as of December 31, 2022, indicating a stable tax compliance status[198].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

Kanzhun Limited (NASDAQ:BZ) Q4 2022 Earnings Conference Call March 20, 2023 8:00 AM ET Company Participants Wen Bei Wang - Head of Investor Relations Jonathan Peng Zhao - Chairman and Chief Executive Officer Phil Yu Zhang - Chief Financial Officer Conference Call Participants Wei Xiong - UBS Eddy Wang - Morgan Stanley Timothy Zhao - Goldman Sachs Operator Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited Fourth Quarter and Full Year 2022 Results Financial Results Conference ...

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 4,511,062 thousand, representing a 5.9% increase from RMB 4,259,128 thousand in 2021[2] - Operating loss decreased significantly to RMB 129,519 thousand in 2022 from RMB 1,036,320 thousand in 2021, a reduction of 87.5%[2] - Net profit for 2022 was RMB 107,245 thousand, a turnaround from a net loss of RMB 1,071,074 thousand in 2021[2] - Adjusted net profit (non-GAAP measure) for 2022 was RMB 799,449 thousand, a decrease of 6.2% from RMB 852,572 thousand in 2021[2] - Total revenue for 2022 increased by 5.9% to RMB 4,511.1 million, up from RMB 4,259.1 million in 2021[17] - Revenue from online recruitment services for corporate clients was RMB 4,461.3 million in 2022, a 5.7% increase from RMB 4,219.0 million in 2021[17] - The company reported a net profit attributable to ordinary shareholders of RMB 107,245 thousand for the year ended December 31, 2022, compared to a net loss of RMB 1,235,139 thousand in 2021[39] - The company reported a significant increase in investment income to RMB 65,150 thousand in 2022 from RMB 24,744 thousand in 2021[40] User Engagement - Average monthly active users (MAUs) for 2022 reached 28.7 million, up 5.9% from 27.1 million in 2021[5] - The average daily active users (DAUs) as a percentage of MAUs remained stable at 27.2% in 2022, consistent with 2021[5] - The CEO noted strong user growth and engagement since early 2023, attributing it to improved brand awareness and competitive advantages[6] Expenses and Cost Management - Marketing expenses rose by 3.0% to RMB 2,000.9 million in 2022, primarily due to increased employee-related costs and brand advertising expenses[19] - Research and development expenses increased by 43.9% to RMB 1,182.7 million in 2022, attributed to higher employee-related costs[20] - The CFO expressed optimism for strong growth in 2023 while maintaining cost discipline in marketing and other expenses[6] Cash and Assets - Cash and cash equivalents increased by 8.0% to RMB 13.2 billion as of December 31, 2022, from RMB 12.2 billion at the end of 2021[22] - The company had a total asset value of RMB 14,826,867 thousand as of December 31, 2022, compared to RMB 13,641,623 thousand at the end of 2021[41] - The total liabilities increased to RMB 3,186,104 thousand as of December 31, 2022, from RMB 2,967,567 thousand at the end of 2021[41] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial results for the year ended December 31, 2022, and found no disagreements regarding accounting policies with the board[32] - The company has complied with all provisions of the corporate governance code since its listing date, except for the separation of roles between the chairman and CEO[28] - The remuneration committee is responsible for reviewing and approving the compensation of directors and senior management, consisting of three directors[33] - The nomination committee evaluates the independence of independent non-executive directors and recommends appointments to the board[34] - The corporate governance committee ensures the company's operations align with shareholder interests and compliance with listing rules[35] Employee and Talent Management - As of December 31, 2022, the company had a total of 5,602 employees, with 46.8% in sales and marketing, 25.8% in R&D, 22.4% in operations, and 5.0% in general administration[25] - The company has adopted a global share incentive plan and a post-IPO share plan to provide competitive compensation and incentives to employees[25] Tax and Financial Efficiency - The company is eligible for a preferential income tax rate of 15% as a high-tech enterprise, which may impact future tax liabilities positively[49] - The company has the opportunity to deduct 200% of qualifying R&D expenses for the period from October 1, 2022, to December 31, 2022, enhancing its tax efficiency[49] - The company reported a total income tax expense of RMB 9,751 million for the year ended December 31, 2022, compared to RMB 59,527 million for the year ended December 31, 2021, indicating a significant reduction in tax expenses[50] Shareholder Returns - The company did not declare any final dividend for the year ended December 31, 2022[38] - The company did not declare any dividends for the years ended December 31, 2021, and 2022[58]

Revenue Performance - Q4 2022 revenue was RMB 1,082.3 million (USD 156.9 million), flat compared to Q4 2021[3] - Full-year 2022 revenue was RMB 4,511.1 million (USD 654.0 million), an increase of 5.9% from RMB 4,259.1 million in 2021[3] - Q4 2022 online recruitment service revenue from enterprise customers was RMB 1,069.6 million (USD 155.1 million), down 1.1% from RMB 1,082.0 million in Q4 2021[5] - Other service revenue in Q4 2022, mainly from paid value-added services to job seekers, increased by 44.8% to RMB 12.6 million (USD 1.8 million) from RMB 8.7 million in Q4 2021[5] - Total revenue for Q4 2022 was RMB 1,082,275 thousand, a slight decrease of 0.7% compared to RMB 1,090,650 thousand in Q4 2021[17] - Total revenue for the fiscal year 2022 was RMB 4,511,062 thousand, representing a 5.9% increase from RMB 4,259,128 thousand in 2021[21] User Metrics - Q4 2022 average monthly active users reached 30.9 million, a 26.6% increase from 24.4 million in Q4 2021[3] - The number of paying enterprise customers decreased by 10.0% to 3.6 million in 2022 from 4.0 million in 2021[3] Profitability and Loss - Q4 2022 net loss was RMB 184.8 million (USD 26.8 million), compared to a net profit of RMB 233.1 million in Q4 2021[3] - Adjusted net profit for full-year 2022 was RMB 799.4 million (USD 115.9 million), a decrease of 6.2% from RMB 852.6 million in 2021[3] - The operating loss for the full year 2022 was RMB 129.5 million (USD 18.8 million), significantly reduced from RMB 1,036.3 million in 2021, marking an 87.5% decrease[10] - The net loss for Q4 2022 was RMB 184,793 thousand, compared to a net profit of RMB 233,070 thousand in Q4 2021[17] - Adjusted net profit for the fiscal year 2022 was RMB 799,449 thousand, up from RMB 688,507 thousand in 2021, indicating a growth of 16.1%[21] Expenses - In Q4 2022, total operating costs and expenses amounted to RMB 1,426.1 million (USD 206.8 million), a 69.5% increase from RMB 841.4 million in Q4 2021[6] - In 2022, R&D expenses were RMB 1,182.7 million (USD 171.5 million), a 43.9% increase from RMB 822.0 million in 2021, primarily due to increased employee-related costs[9] - Marketing expenses for the full year 2022 were RMB 2,000.9 million (USD 290.1 million), a 3.0% increase from RMB 1,942.7 million in 2021, driven by increased employee-related costs and brand advertising expenses[9] - The company experienced a significant increase in stock-based compensation expenses, which rose to RMB 244,243 thousand in Q4 2022 from RMB 115,472 thousand in Q4 2021[21] Cash and Investments - As of December 31, 2022, cash and cash equivalents, along with short-term investments, totaled RMB 13,209.9 million (USD 1,915.3 million)[8] - Cash and cash equivalents decreased to RMB 9,751,824 thousand in 2022 from RMB 11,341,758 thousand in 2021, representing a decline of 14.0%[18] - The company reported a net cash used in investing activities of RMB (725,495) thousand for Q4 2022, compared to RMB 203,889 thousand in Q4 2021[19] - The cash flow from financing activities for Q4 2022 was a net outflow of RMB (627,954) thousand, compared to a net inflow of RMB 21,419 thousand in Q4 2021[19] Future Outlook - The company expressed optimism for strong growth in 2023, driven by user growth and engagement[4] - The CFO highlighted the importance of maintaining marketing efficiency while scaling user growth amidst external challenges[5] - The company expects total revenue for Q1 2023 to be between RMB 1,250 million and RMB 1,270 million, representing a year-over-year increase of 9.8% to 11.6%[11] Company Overview - The company operates China's leading online recruitment platform "BOSS Zhipin," connecting job seekers and corporate users through a highly interactive mobile application[16] - The mobile application focuses on intelligent recommendations and creates new scenarios in the online recruitment process, enhancing recruitment efficiency[16] - The company benefits from a large and diverse user base, which has formed a strong network effect to drive rapid expansion[16] Balance Sheet Highlights - Total assets increased to RMB 14,826,867 thousand in 2022, up from RMB 13,641,623 thousand in 2021, reflecting a growth of 8.7%[18] - The company’s total liabilities increased to RMB 3,186,104 thousand in 2022 from RMB 2,967,567 thousand in 2021, marking a rise of 7.4%[18] - The company’s total equity increased to RMB 11,640,763 thousand in 2022, up from RMB 10,674,056 thousand in 2021, reflecting a growth of 9.0%[18] Shareholder Actions - The company approved a new share repurchase plan in March 2023, allowing for the repurchase of up to USD 150 million in shares over the next 12 months[11]

Exhibit 99.1 KANZHUN LIMITED Announces Fourth Quarter and Full Year 2022 Financial Results BEIJING, March 20, 2023 (GLOBE NEWSWIRE) – KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) (Nasdaq: BZ; HKEX: 2076), a leading online recruitment platform in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2022. Fourth Quarter and Full Year 2022 Highlights ● Revenues for the fourth quarter of 2022 were RMB1,082.3 million (US$156.9 million), on par with th ...

TABLE OF CONTENTS Exhibit 99.1 KANZHUN LIMITED Supplemental and Updated Disclosures KANZHUN LIMITED (the "Company" or "we") has published a listing document (the "Listing Document") with the Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), subsequent to its initial application filed with the Hong Kong Stock Exchange on October 10, 2022, in connection with a proposed dual primary listing (the "Listing") of its Class A ordinary shares on the Main Board of the Hong Kong Stock Exchange by w ...