BOSS ZHIPIN(BZ) - 2023 Q3 - Quarterly Report

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 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 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] 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 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] 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 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] - 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] Platform and Services 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] - Services for enterprise users include job posting, personalized candidate recommendations, direct communication, and value-added tools to enhance recruitment efficiency[13] - Services for job seekers include job recommendations, direct chats with employers, resume delivery, and value-added tools for job hunt preparation[13] Monetization Model 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] - Job seekers receive free core job seeking services, with paid value-added tools available to assist their job hunt[14] Sales and Marketing 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] - 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] - Brand image is promoted through various marketing initiatives, including outdoor, TV, video advertising, and campaigns at major events[15] Recent Developments 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] - 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] Business Outlook 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] - Will optimize sales and marketing strategy while continuing investment in this area[18] - Commitment to ongoing technology developments to enhance the user-friendly ecosystem, reinforce technology infrastructure, and refine recommendation algorithms[18] 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) 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 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] - Revenues from online recruitment services to enterprise customers increased by 22.6% to RMB2.7 billion[22] - 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] Cost of Revenues Analysis 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] Sales and Marketing Expenses Analysis 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] Research and Development Expenses Analysis 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] General and Administrative Expenses Analysis 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] Income from Operations Analysis 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] Income Tax Expenses Analysis 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] Net Income Analysis 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] Other Financial Information This section details the company's liquidity, capital resources, investments, and other key financial aspects Liquidity and Capital Resources 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] - Net cash generated from operating activities for the first half of 2023 was RMB1.3 billion[30] Interest-bearing Bank and Other Borrowings 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] Significant Investments 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] Material Acquisitions and Disposals 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] Pledge of Assets 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] Future Plans for Material Investments and Capital Assets 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] Gearing Ratio 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] Foreign Exchange Exposure 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] - The majority of cash and cash equivalents are denominated in U.S. dollars[35] - The company monitors currency risk but has not used derivative financial instruments to hedge exposure[35] Contingent Liabilities 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] Capital Expenditure Commitment 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] Employees and Remuneration Policies 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] 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] 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 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][44] - 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] Compliance with Model Code for Securities Transactions by Directors 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] Audit Committee 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] - Primary duties include monitoring financial statement integrity, compliance with legal/regulatory requirements, reviewing internal control over financial reporting, and approving related party transactions[46] - 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] 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 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$10.0 million on Nasdaq during the Reporting Period[49] Share Repurchase Details | Trading Month | Number of Class A ordinary shares repurchased | Highest price paid (US$) | 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] Material Litigation 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] Interim Dividend 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] Significant Events after the Reporting Period 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] 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 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 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 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 This section provides detailed notes to the unaudited condensed consolidated financial statements, clarifying accounting policies and specific financial items General Information 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] Basis of Presentation 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] - 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] Revenues (Detailed by account type) 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] Income Tax 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] - Hong Kong: Subsidiary subject to 16.5% Hong Kong profit tax[68] - 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] - 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] 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 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 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 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 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 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 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 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] 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] 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 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] - The interim report for the six months ended June 30, 2023, will be despatched to Shareholders and made available on the aforementioned websites[87] Board of Directors Composition 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] - Non-executive Director: Mr. Haiyang Yu[87] - Independent Non-executive Directors: Mr. Charles Zhaoxuan Yang, Mr. Yonggang Sun, Mr. Yusheng Wang[87]