KANZHUN LIMITED 1Q 2025 Results Presentation Disclaimer The following document has been prepared by KANZHUN LIMITED ("BOSS Zhipin" or the "Company") solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the basis of, or ...

Group 1 - The core issue highlighted is the imbalance between the commercial interests of online recruitment platforms and the job-seeking needs of users, leading to a dual dilemma for both job seekers and employers [1][2][10] - Job seekers report a response rate of less than 5% when applying through various platforms, indicating a significant inefficiency in the job matching process [2][4] - Many job postings remain active on platforms even after positions are filled, primarily to avoid additional costs for employers, resulting in a proliferation of "zombie jobs" that complicate the job search for applicants [2][9] Group 2 - Recruitment platforms often charge job seekers for premium services that promise enhanced visibility and response rates, but the actual benefits are often limited and may not justify the costs [4][5][6] - The pricing structure for resume optimization services varies based on the applicant's work experience, with costs ranging from ¥398 to ¥898, which may disadvantage economically weaker candidates [6][9] - A significant portion of the revenue for recruitment platforms comes from employers, with platforms like BOSS Zhipin deriving over 99% of their income from the employer side, rather than from job seekers [11][12] Group 3 - The current job market is characterized by a structural mismatch between the supply of job seekers and the demand for positions, exacerbated by the concentration of applicants on a limited number of popular roles [11][12] - The challenges faced by job seekers, particularly those from economically disadvantaged backgrounds, are compounded by their limited access to resources and networks, which can hinder their job search efforts [7][9] - Experts suggest that recruitment platforms need to evolve beyond merely serving as matching tools and should actively work to improve the efficiency of job connections and user experience [10][12]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $23.11 [6][4] Core Insights - The company reported Q1 2025 revenue of 1.923 billion RMB, slightly exceeding expectations, with a year-over-year growth of 12.9%. Adjusted net profit reached 692 million RMB, reflecting a significant year-over-year increase of 76.2% [1][2] - The demand for recruitment is gradually recovering, with a notable increase in blue-collar job seekers, which now account for over 45% of new users, contributing to a revenue share of over 39% [2][3] - The company has successfully reduced its expense ratio, achieving a gross margin of 83.8% and a profit margin of 36% in Q1 2025, indicating ongoing improvements in profitability [3][4] Revenue and Profit Forecast - The revenue forecast for FY25-FY27 has been slightly revised upwards to 8.18 billion RMB, 9.38 billion RMB, and 10.67 billion RMB respectively. The adjusted net profit estimates have also been increased to 3.32 billion RMB, 3.5 billion RMB, and 3.96 billion RMB for the same period [4][11] - The company expects Q2 2025 revenue to be between 2.05 billion RMB and 2.08 billion RMB, which aligns with market expectations [2][4] Financial Metrics - The company achieved a cash collection of 2.18 billion RMB in Q1 2025, reflecting a year-over-year increase of 6.3% [2] - The adjusted operating profit for Q1 2025 was 692 million RMB, with a profit margin of 36%, indicating better-than-expected profit release [3][4] - The report projects an adjusted operating profit of 3.07 billion RMB for the full year 2025 [3][4] Valuation - Based on a DCF valuation method, the target price is set at $23.11, reflecting a perpetual growth assumption of 3% and a WACC of 8.95% [4][11][13] - The company's market capitalization is approximately $7.904 billion, with a closing price of $17.90 as of May 21 [7][6]

5月22日，据教育部官网消息，根据《中华人民共和国高等教育法》《普通高等学校设置暂行条例》 《普通本科学校设置暂行规定》《本科层次职业学校设置标准（试行）》等有关规定以及第八届全国高 等学校设置评议委员会考察评议结果，经教育部党组会议审议，拟同意设置安徽第二医学院等32所学 校，现予公示。根据名单，教育部拟同意设置安徽第二医学院、天津警察学院、成都航空职业技术大 学、苏州职业技术大学等学校。 5月22日，BOSS直聘公布2025年第一季度未经审计财务业绩，报告期内，BOSS直聘营收19.23亿元，同 比上涨12.9%；净利润5.12亿元，同比增长111.9%。 【2】北京城市副中心将添多所高校 5月22日，据"首都教育"微信公众号消息，北京城市副中心近年来积极引入多所高校，推动教育资源优 化布局。目前，清华大学、中国人民大学、北京工业大学、北京服装学院等高校已选址副中心，在通州 设立校区。其中，中国人民大学通州校区将于2025年秋季学期全面正式投用；北京服装学院将于2025年 下半年搬迁入驻通州校区。 【3】BOSS直聘2025年一季度净利润同比增长111.9% 【1】教育部拟同意设置32所本科高等学校 【4 ...

Investment Rating - The report maintains a "Buy" rating for Kanzhun Limited, with a target price adjusted to $21.00, reflecting a 17.3% increase from the previous target price of $19.50 [1][5][12]. Core Insights - The company reported a total revenue of RMB 1.92 billion for Q1 2025, representing a year-on-year growth of 13%, which aligns with market expectations. The non-GAAP net profit increased by 44% to RMB 764 million, exceeding market expectations by 11 percentage points due to strong operational leverage and effective cost control [1][2]. - For Q2 2025, management anticipates a revenue growth of 6.9%-8.5%, projecting total revenue between RMB 20.5 billion and RMB 20.8 billion, consistent with market expectations [1][2]. - The company remains optimistic about achieving its full-year non-GAAP operating profit target of RMB 3 billion despite macroeconomic uncertainties and trade tensions [1][3]. Revenue and Profitability Forecast - Revenue projections for FY25E are set at RMB 8.098 billion, with a gross margin of 84.0% and an adjusted net profit of RMB 3.207 billion, reflecting an 18.3% year-on-year growth [4][10]. - The non-GAAP operating profit margin is expected to be 25.3% for FY25E, with a continued focus on efficiency and cost control [3][10]. User Growth and Market Demand - The total number of paid enterprise clients reached 6.4 million, a 12% increase year-on-year, indicating resilient recruitment demand despite macroeconomic challenges [2]. - The company added over 15 million verified users from January to April 2025, with daily active users increasing by 24% year-on-year to 57.6 million [2]. Artificial Intelligence Strategy - The company is making steady progress in artificial intelligence, enhancing recruitment efficiency by 25% through AI functionalities, while maintaining caution regarding large-scale deployment to avoid replacing human recruiters [2][3]. Financial Summary - The financial outlook shows a consistent increase in revenue and profitability, with projected revenues growing from RMB 5.952 billion in FY23A to RMB 8.098 billion in FY25E, alongside a steady improvement in gross margins [4][15].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $23.11 [6][4]. Core Insights - The company reported Q1 2025 revenue of 1.923 billion RMB, slightly exceeding the forecast of 1.91 billion RMB, with a year-over-year growth of 12.9%. Adjusted net profit reached 692 million RMB, surpassing the prediction of 617 million RMB, reflecting a year-over-year increase of 76.2% [1][2]. - The recruitment demand is gradually recovering, with the blue-collar segment accounting for over 45% of new users, contributing to an increase in revenue share to over 39% [2]. - The company has successfully reduced its expense ratio, with a gross margin of 83.8% and a significant decrease in sales expense ratio by 8.5 percentage points year-over-year [3]. Revenue and Profit Forecast - The revenue forecast for FY25-FY27 has been slightly revised upwards to 8.18 billion RMB, 9.38 billion RMB, and 10.67 billion RMB respectively, with adjusted net profit estimates increased to 3.32 billion RMB, 3.5 billion RMB, and 3.96 billion RMB [4][11]. - The company expects Q2 2025 revenue to be between 2.05 billion RMB and 2.08 billion RMB, indicating a year-over-year growth of 6.9% to 8.5% [2]. Financial Metrics - The company achieved an adjusted operating profit of 692 million RMB in Q1 2025, corresponding to a profit margin of 36%, which is better than expected [3]. - The report projects an adjusted operating profit of 3.07 billion RMB for the year 2025 [3][12]. Valuation - Based on the DCF valuation method, the target price is set at $23.11, reflecting a perpetual growth assumption of 3% and a WACC of 8.95% [4][13].

Core Insights - BOSS Zhipin continues to expand its user base and revenue, particularly in the blue-collar market, which has become a significant growth driver for the company [1][2][4] Group 1: Financial Performance - In Q1 2025, BOSS Zhipin reported revenue of 1.923 billion yuan, with blue-collar contributions accounting for 39% of total revenue [1] - The net profit for Q1 2025 reached 512 million yuan, indicating improved profitability [1] - Marketing expenses decreased by 15% year-on-year, while the average monthly active users (MAU) reached 57.6 million [1] Group 2: User Growth and Market Expansion - The proportion of blue-collar users on the platform increased to 34.8% in 2024, up over 5 percentage points from 2021 [2] - The number of blue-collar users grew from 28.5 million in 2021 to 73.7 million in 2024, with a compound annual growth rate (CAGR) of 36.7% [2] - The average number of new job postings in the blue-collar sector increased by 17% year-on-year from January to April 2025 [4] Group 3: Market Trends and Opportunities - The blue-collar online recruitment market in China is projected to reach 152.4 billion yuan by 2026, driven by urbanization and the increasing preference for online job platforms among younger blue-collar workers [5][6] - The demand for blue-collar positions in the service industry, particularly in sectors like catering and retail, has shown a consistent recovery since April 2025 [4] - BOSS Zhipin's "Sea Conch Preferred" program aims to improve job authenticity and attract more users by verifying job postings [5] Group 4: Product Innovations - The company launched the "Rapid Interview" feature in Q1 2025 to streamline the recruitment process for blue-collar jobs, significantly reducing the time from initial contact to interview [6] - BOSS Zhipin's product advantages, such as flexible payment methods and direct communication features, have made it popular among small and medium-sized enterprises in the blue-collar sector [6]

Core Insights - Kanzhun reported a 13% year-over-year revenue increase to 1.92 billion yuan and a 112% rise in GAAP net income to 512 million yuan for Q1 2025 [1] - The company achieved an adjusted operating margin of 36%, up 13 percentage points from 23% in the same period last year, indicating strong operational leverage and strategic execution [3] Financial Performance - Adjusted operating income reached 690 million yuan, supported by an 8% reduction in total operating costs and a decline in share-based compensation expenses for three consecutive quarters [2] - Sales and marketing expenses were reduced by 15% year over year, contributing to improved margins [2] User Base and Market Position - The blue-collar segment contributed over 39% to revenue, with tier 3-and-below cities accounting for more than 23% of revenue, indicating a diversified user base [4] - The company has limited exposure to export-oriented enterprises, which mitigates risks from global tariff fluctuations [5] AI Integration and Productivity - Kanzhun has invested over 1 billion yuan in AI infrastructure since 2023, with AI-driven recruitment tools managing over 9 million candidate conversations during beta testing [6] - Despite the integration of AI, the competitive landscape in the human capital industry remains stable, with no significant disruptions observed [7] Future Outlook - Management projects Q2 revenue between 2.05 billion yuan and 2.08 billion yuan, reflecting a year-over-year growth of 7.0% to 8.5% [8] - The company reaffirmed its full-year non-GAAP operating profit target of 3 billion yuan and has robust cash reserves exceeding $2 billion [8]

Financial Performance - Total revenues for the first quarter of 2025 were RMB1,923.3 million (US$265.0 million), representing a year-on-year increase of 12.9% from RMB1,703.8 million in the same quarter of 2024[6] - Net income for the first quarter of 2025 was RMB512.1 million (US$70.6 million), an increase of 111.9% from RMB241.7 million in the same quarter of 2024[11] - Adjusted net income for the first quarter of 2025 was RMB763.9 million (US$105.3 million), an increase of 43.9% from RMB530.7 million in the same quarter of 2024[11] - Income from operations for the first quarter of 2025 was RMB439.8 million (US$60.6 million), an increase of 324.5% from RMB103.6 million in the same quarter of 2024[9] - Adjusted income from operations for the first quarter of 2025 was RMB691.5 million (US$95.3 million), an increase of 76.1% from RMB392.6 million in the same quarter of 2024[9] - Net income attributable to ordinary shareholders of KANZHUN LIMITED for Q1 2025 was RMB 518,134, a significant increase of 111.5% from RMB 244,951 in Q1 2024[28] - Adjusted net income per ordinary share attributable to ordinary shareholders increased to RMB 0.88 for Q1 2025, up from RMB 0.61 in Q1 2024, reflecting a growth of 44.3%[34] User Metrics - Average monthly active users for the first quarter of 2025 were 57.6 million, an increase of 23.6% from 46.6 million in the same quarter of 2024[6] - The number of paid enterprise customers reached 6.4 million in the twelve months ended March 31, 2025, up 12.3% from 5.7 million in the previous year[6] Revenue Forecast - The company expects total revenues for the second quarter of 2025 to be between RMB2.05 billion and RMB2.08 billion, representing a year-on-year increase of 6.9% to 8.5%[17] Operating Costs and Expenses - Total operating costs and expenses were RMB1,491.1 million (US$205.5 million) for the first quarter of 2025, a decrease of 7.5% from RMB1,612.8 million in the same quarter of 2024[8] - Research and development expenses decreased to RMB 423,568 in Q1 2025 from RMB 467,569 in Q1 2024, a reduction of 9.4%[28] Cash and Assets - The balance of cash and cash equivalents as of March 31, 2025, was RMB14,785.2 million (US$2,037.5 million)[15] - Cash and cash equivalents at the end of Q1 2025 were RMB 2,790,420, an increase from RMB 2,747,166 at the end of Q1 2024[32] - Total current assets as of March 31, 2025, were RMB 15,681,004, up from RMB 15,100,383 as of December 31, 2024, indicating a growth of 3.8%[30] - Total assets increased to RMB 20,387,869 as of March 31, 2025, compared to RMB 19,310,672 as of December 31, 2024, reflecting a growth of 5.6%[30] Cash Flow - Net cash provided by operating activities for Q1 2025 was RMB 1,003,109, an increase of 10.8% from RMB 905,541 in Q1 2024[32] Share Information - The weighted average number of ordinary shares used in computing net income per share was 870,991,355 for Q1 2025, slightly down from 880,732,849 in Q1 2024[34]

Financial Performance - The company achieved GAAP revenue of RMB 1.92 billion, reflecting a 13% year-on-year increase [7] - Net income reached RMB 510 million, representing a 112% year-on-year growth [7] - Adjusted operating income was RMB 690 million, with an adjusted operating margin of 36%, up 13 percentage points year-on-year [7][28] - Total operating costs decreased by 8% year-on-year to RMB 1.5 billion, with share-based compensation expenses down by 13% year-on-year [27][29] - Net cash provided by operating activities was RMB 1 billion, up 11% year-on-year [30] Business Line Performance - The average verified monthly active users on the Foss Shipping app reached 57.56 million, up 24% year-on-year [10] - Revenue from enterprises with fewer than 100 employees hit a record high contribution for the period, driven by the growth of smaller-sized companies [11] - Blue collar new users accounted for over 45% of total users, driving their share of revenue up to more than 39% [11] Market Data - Average new job postings grew 17% year-on-year from January to April, with total paid enterprise customers increasing to 6.38 million, up 2012% year-on-year [12] - Recruitment demand for blue collar workers has been steadily rebounding since April, with manufacturing recruitment showing resilience despite tariff impacts [13] Company Strategy and Industry Competition - The company is focused on driving profitability and has made solid progress in AI applications to enhance operational efficiency [6][14] - Management remains cautious about the competitive landscape, noting that while AI technology is important, no revolutionary changes have been observed yet [56] Management Commentary on Operating Environment and Future Outlook - Management noted that the impact of the tariff war on business has not intensified, and hiring demand has shown a recovery trend since the Chinese New Year [6][12] - The company is optimistic about the year ahead, with plans to continue focusing on high-impact priorities to enhance operational certainty [7][23] Other Important Information - The company has a strong cash position of RMB 14.8 billion as of March 31, 2025, providing financial flexibility for growth initiatives [31] - For Q2 2025, the company expects total revenues to be between RMB 2.05 billion and RMB 2.08 billion, representing a year-on-year increase of 7% to 8% [31] Q&A Session Summary Question: How has hiring demand evolved since the start of the tariff war? - Management indicated that the overall supply and demand relationship has continued to improve, with new job postings maintaining good growth rates [35][36] Question: What feedback has been received regarding AI features, and what are the plans for monetization? - Management reported positive feedback from AI product testing, with plans for gradual monetization as efficiency improvements are observed [41][44] Question: Are there any expected changes in the competitive landscape due to AI adoption? - Management expressed a conservative view, noting that while AI is important, no significant changes have been observed in the competitive landscape yet [54][56]