Kanzhun Ltd (BZ) Q4 2025 Earnings Call Transcript

Ladies and gentlemen, thank you for standing by and welcome to Kanchun Limited's fourth quarter and fiscal year 2025 Financial Results Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a Q&A session. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Laura Chan, Senior Manager of Investor Relations. Please go ahead, ma'am.

Thank you, operator. Good evening, good morning, everyone. Welcome to our fourth quarter in the fiscal year 2025 earnings conference call. Joining me today are our founder, chairman, and CEO, Mr. Jonathan Peng Zhao, and our deputy CEO, Ms. Wenbei Wang. Before we start, we would like to remind you that today's discussion may contain forward-looking statements, which are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different. The company caution you not to place undue reliance on forward-looking statements and do not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purpose only. For a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial measures, please see the earnest release issued earlier today. In addition, a webcast replay of this conference call will be available on our website at ir.gpin.com. With that, I will now turn the call to Jonathan, our founder, chairman, and CEO.

I want to thank our customers and investors for long-term信任 and support our users and investors.

Hello everyone, thank you for joining our company's fourth quarter and full year 2021 earnings conference call. On behalf of the company's employees, management team, and board of directors, I would like to extend our sincere gratitude to our users and investors who have continuously believed in and supported us. Today's presentation will cover four main parts. First, our financial results for the fourth quarter and the full year of June 25. Second, the robust growth momentum we are seeing in both supply and demand during the spring recruitment season this year. Third, an update on our AI progress. And fourth, further strengthen our commitment to shareholder return.

首先,简阳汇报公司2025年第四季度和全年的业绩情况. 2025年第四季度,公司实现20.8亿元收入,同比增长14%

扣除股权激励费用后,经调整营业利润为9亿元,同比增长37% First, let me briefly review the company's performance for the fourth quarter and full year of 2025 In the fourth quarter, we generated a total revenue of RMB 2.08 billion, up 14% year-on-year. Excluding share-based compensation expenses, our adjusted operating profit reached RMB 900 million, up 37% year-on-year. The fourth quarter is traditionally a low season for recruitment in China, however, after adjusting for seasonality, the hiring demand from enterprises continued to steady recovery trend since the beginning of this year. The supply and demand ratio also remained within a healthy range. By sector, manufacturing, electronics, communications and semiconductor industries stood out, urban service, automotive, and consumer retail industries stood out. The Internet technology industry achieved a faster year-on-year growth rate in the fourth quarter compared to the third quarter. In full year 2025, the company generated a total revenue of RMB 8.27 billion, up 12.4% year-on-year. Net income reached RMB 2.7 billion, excluding other income such as investment gains and share-based compensation expenses, Our adjusted operating profit reached RMB 3.38 billion, up 45.7% year-on-year. Our adjusted operating profit margin reached 40.8%.

The market growth of the market is still in the future. In 2025, the new users have over 4,600 million users have over 4,600 million users. In the end of 2025, the platform has over 2.5 million users have over 2.5 million users.

The upward growth momentum in users continues. In 2025, the company acquired nearly 46 million newly verified users. As of the end of 2025, the platform had cumulatively served over 215 million drug seekers and 36 million enterprise users, with the total number of enterprises that's exceeding 20 million.

This number is 22.4%. The求职者 has achieved 7% of the total growth. All of this shows a strong platform.

In 2025, the average monthly active users, the MAU of the Box Dripping app, reached over 60.7 million, representing a year-on-year increase of 14.5%. In 2025, the platform facilitated over 2.27 billion instances of mutually consented exchanges of resume or contact information, what we commonly refer to as mutual consent, representing a growth of 22.4%. The average number of mutual consent per job seeker also rose by 7% year-on-year. This demonstrates a strong double-sided networking effect on our platform. In 2025, the company continued its momentum in penetrating the blue collar sector, lower tier cities, and small and medium-sized enterprises. The growth rate of blue collar users led overall user base, with their contribution to revenue further increasing. Meanwhile, white collar recruitment demand also recovered steadily, with sectors such to access Internet technology and communications, SEND conductors achieved higher growth rates compared to 2024, reflecting a structural improvement. From city tier perspective, revenue contribution from third tier and low tier cities approached 25% in the fourth quarter, doubling compared to 40 years ago. This clearly demonstrates that our user penetration strategy in lower-tier markets is steadily gaining traction, while our brand awareness has continued to expand. In 2025, revenue contributed by enterprises with fewer than 100 employees exceeded 50% for the first time. The substantial contribution from SMEs become a key driver of the platform's continuous growth. The monetization front in the 12 months ended December 31, 2025, which is full year 2025. The number of paid enterprise customers reached 6.83 million, up 11.6% year-on-year, and 1.3% quarter-on-quarter. The pay ratio among active users continue to see modest growth. Due to the increased revenue contribution from SMEs, The average revenue per paying user, which is the ARPPU, remains broadly stable. Second, we are seeing robust momentum in both supply and demand size during the spring recruitment season this year. The peak season for recruitment in China is after spring festival every year. Adjusted for the Chinese New Year holiday, The average daily newly verified users, including both job seekers and enterprise users, exceeded the same period last year, and active users upwards after spring festival reached a record high. The average daily job postings in the 15 days after the Spring Festival grew by a double-digit percentage year-on-year. In terms of supply and demand dynamics, the ratio of job seekers to enterprise users, which is the C2B ratio on our platform, remained within a healthy and reasonable range.

From the industry to look at, the manufacturing industry, digital communications, and electric vehicles, and the marketing industry, and the services industry are leading up to other industries, considering the springtime time is a bit late to last year. So currently, the distance between the end of the year of the year is also a few weeks ago. Usually, the direction of the 100-year-old and large companies will be less than the 1-year-old and small companies. But from the current statistics, the innovation, AI, technology, etc., has been shown at the same time in the last year.

By industry sectors, active job postings in areas such as manufacturing, electronics, and communication semiconductors, automotive, advertising and media, and urban services grow at a faster pace compared to other industries. Given that the screen size will fail later this year compared to last year, and it has been only a few weeks since the holiday period ended, white-collar and large enterprises typically resume operations slightly later than blue-collar and SME sectors. However, based on our current data, both newly added and active job postings in fields such as Internet, AI, and technology are already showing signs of accelerated year-on-year growth compared to the same period last year.

At the end, the whole thing is a small part of it. the big picture so far.

In the past, online recruitment advertising platforms primarily offered the value through information dissemination between supply and demand sites. Now, platforms like BossJPIN focus on increasing the profitability and opportunity of establishing labor contracts between enterprise users and job seekers. Moving forward, the online recruitment industry has the opportunity to involve towards a close-up model. AI can assist companies in completing the last mile of work.

AI can help, it's not just our company, but just to see it. AI can help in the entire economic development process. Any other岗位 with people's匹配效率, this is what everyone can see. From our work of work, AI can through a better number of digital resources, better to increase the work of the基層 staff, better to increase the team's team-based management, By 2025, with the support of AI capabilities, the revenue from close-loop services has already reached the scale of hundreds of millions RMB.

To date, this segment has been growing faster than other businesses on our platform. In fact, many have recognized that AI can improve the matching efficiency for any roles in the economy. In simple terms, AI enables large-scale closed-loop services by better digitalizing both sides of demand, enhancing the efficiency of frontline workers and reducing the management costs of large teams.

From B-端, it is given a lot of the job-in-law and the job-in-law and the job-in-law and the job-in-law and the job-in-law. We have always been able to achieve a better job-in-law. We are currently in a wide range of time. The component of this component can be explained as a better memory and knowledge.

Thank you very much. progress, I will describe it between the enterprise user side and jobseeker side. The AI Quick Hiring tool developed for high-end users with demanding recruitment requirements and strong willingness to pay has achieved positive results and is now being scaled up for broader trials. The core function of the tool is to better remember and understand the specific needs and preferences of targeted clients, automatically conduct searches within a database of 250 million job seekers, and the continuous interaction with users to improve heat rate. The feature demonstrates high reusability, and we believe that it holds strong commercial potential. From the jobseeker side, our AI-assisted interview feature experiment has been fully rolled out to users within both GPs' interview rooms. This has significantly increased both the usage and reusability of the company's proprietary interview rooms, while also enabling the platform to collect a greater volume of high-value interview data. a more robust and agile way of thinking.

Let's say that, like the video-down shopping module, the video-down shopping module, and in such a similar situation, we've expanded using AIA agent's full-time tracking and tracking and tracking capabilities.

In this case, we are still trying to keep telling you the situation that you face a technology.

The next progress is that the company has adopted a proactive approach in applying AI agents to assist the specific enterprise users. By leveraging AI hosting and screening capabilities, protected delivery efficiency has significantly improved in situations like hiring scenarios such as for manufacturing workers and large streamers. This progress makes a business model based on successful hires or interviews viable on a large scale. We consistently inform job seekers that they are interacting with AI agents. We believe that the job seekers' response is quite positive, and as far as users' satisfaction rate is high.

Thank you very much.

The last approach in terms of scientific research, the scientists, the The scientists at our company's Nanbege lab have made some industry-leading exploration into the intelligence and the capability ceiling of small models. Among these, the recently open-sourced Nanbege 4.1 slash 3D model with only 3 billion parameters surpassed models from the Tianwen 3 series ranging from 4 billion to 32 billion parameters on multiple evaluation tasks. We are not intended to compare with others on this scale. In late February, it ranked first in Huffington-Face 20 list for the tax generation models.

Let me tell you in the last one, what are our plans for the tax generation?

Today, we will make a decision. The company's planning to fund growth in 2016 at the past three years past year e-mails. For the investment for the company's payments and return over s-mails of fundraising. The company's planning to advance revenue in $50 billion to the week.

In the past year, we went up to $2,5 million for the past year and to the last year. It went up to 4 million dollars. The company will keep attuned to the curve and overcome growth to the market. I would like to say that this represents our company's personal information, and in some other situations, even from the long-term perspective, we would like to return to our company and trust to support our company.

Today, the board passed a resolution approving a plan to allocate no less than 50% of the prior year's adjusted net income for dividends and share repurchase over the three-year period starting from 2026. Meanwhile, the company will increase the share repurchase program upper limit from $250 million to $400 million. Initially approved in August 2025, We will scale up the purchase as appropriate in response to changing market conditions, and we believe that it fully demonstrates our confidence in the company's long-term growth, as well as our long-term commitment to delivering value to our shareholders and friends who supported and believed in us. That concludes my part of the call. I will now turn it over to our deputy CFO, Wenbei, for the review of our financials.

Thank you. Thanks, Jonathan. Hello, everyone. Now let me walk through the details of our financial results of the fourth quarter and the full year of 2005. We are pleased to deliver a quality set of financial results for the fourth quarter and the full year, with revenue growth continued its accelerating momentum and enlarged profitability. In the fourth quarter, the recruitment market sustained its steady recovery trend throughout the year. Under such condition, our revenues reached RMB 2.1 billion during this quarter, with growth rate accelerating to 14% year-on-year and grew by 12.4% to earn the 8.3 billion for the full year. Our number of paid enterprise customers for 2025 expanded to 6.8 million, marking a 12% year-on-year growth and 1.3% increase compared to the 2012 months ending September 30. We witnessed a more balanced growth this year, with faster revenue growth from both key accounts and small size accounts. In the fourth quarter in particular, revenue from small size accounts grew 21% year-on-year, outpacing mid-size accounts and key accounts. As a result of this structural impact, overall RPO remains stable, but RPO for each segment all showed increasing trends. Moving to the cost and expenses side, our total operating cost and expenses decreased by 7% year-on-year to R&B 1.4 billion during the fourth quarter, and by 7% to R&B 5.8 billion for the full year. Total share-based compensation expenses decreased by 23 and 20% year-on-year respectively in this quarter and the full year. As percentage of revenue-wise, SBC went down by five percentage points year-on-year, both for the quarter and the full year, and we also expect this trend to continue. Excluding share-based compensation expenses, our adjusted income from operations grew by 37% to RMB $900 million and 46% to RMB $3.5 billion respectively for the quarter and the full year. The adjusted operating margin for the fourth quarter reached a quarterly historical high of 43.3%, while the annual adjusted operating margin improved by 9 percentage points to 40.8% in 2025, continuing to demonstrate our strong operating leverage and unwavering commitment to financial discipline. Cost of revenues decreased by 1% year-on-year to RMB $309 million during the fourth quarter and decreased by 0.4% to RMB $1.2 billion for the full year. This decrease was primarily due to decrease in employee-related expenses and rental expenses, partially offset by an increase in payment processing costs. As a result, our growth margin went up by two percentage points to 85.1% in 2025, marking the second year of increasing. Sales and market expenses decreased by 9% year-on-year to RMB 389 million during this quarter and decreased by 18% to RMB 1.7 billion for the full year. The decrease for the quarter was primarily due to improved sales efficiency, which led to a decrease in employee-related expenses. No major market campaign in this year also further decreased sales and market expenses for the full year. R&D expenses decreased by 8% year-on-year to RMB $406 million this quarter and decreased by 9% to RMB $1.7 billion for the full year. Including share-based compensation expenses, our adjusted R&D expenses decreased by 4% year-on-year to R&B $1.3 million for the full year and stayed relatively flat year-on-year and sequentially for this quarter. G&A expenses decreased by 7% year-on-year to R&B $256 million during this quarter, which was mainly due to decreased employee rate expenses. J&A expenses increased by 10% to R&B $1.2 billion for the full year, primarily due to a one-off impairment of intangible assets booked in the third quarter. Income tax expenses were R&B $164 million this quarter, up 81% year-on-year. This was primarily driven by higher income before income tax expenses, as well as the provision of a top-up tax of RMB $38 million related to the OECD Pillar 2 global minimal tax rules. Our net income reached RMB $682 million in the quarter and $2.7 billion in 2025. Our adjusted net income increased by 25% year-on-year to RMB $906 million in the fourth quarter and 33% year-on-year to RMB 3.6 billion for the full year. Adjusting net margin continued to expand in 2005 and reached historical high of 43.6%. Net cash provided by operating activities amounted to RMB 1.3 billion during the fourth quarter and increased by 29% year-on-year to RMB 4.6 billion for the full year, and our cash position stood at RMB 19.9 billion as of December 31st, 2025. We will leverage our strong cash position and profitability to invest in future growth initiatives as well as shareholder returns. In 2025, we declared a dividend of US$18 million, and as of year-to-date in 2026, we have already repurchased a total of US$15 million worth of shares. Furthermore, as Jonathan just announced, the Board has approved a new shareholder return policy that for each year in the next three years, starting from 2026, we will allocate no less than 50% of the company's adjusted net income of the preceding fiscal year for dividend distribution and share repurchases, and upsides our share repurchase program to a total of US$400 million through August 28, 2027. And now for our business outlook. For the first quarter of 2026, we expect our total revenues to be between RMB 2.050 billion and RMB 2.085 billion, a year-on-year increase of 6.6% to 8.4%. This Q1 figure reflects a different signality in this year, as the later Chinese New Year meant a shorter window of the peak recruitment season fell within this quarter. This timing difference aside, our underlying momentum remains strong. With the strong demand we are seeing throughout the spring season, we expect a clear acceleration in revenues over the coming quarters. That concludes our prepaid remarks, and now we'd like to answer questions. Operator, please go ahead.

Our first question comes from Eddie Wang from Morgan Stanley. Eddie, you may now speak.

AI, the impact of the company, I think it's in two parts. I want to share the management of the management of the company. First, the AI agent's use of the increase will cause the demand for the future of the company? And will影響 the marketing market for the long-term growth? I want to share your thoughts. The second question is about AI technology. the impact of AI on the industry. industry and on our company. So I would appreciate your insights on two questions. First is that will the adoption of AI agents significantly reduce the future demand of the white collar hiring and the jobs and affecting the long-term growth potential of the recruitment market in China? And the second question is does the development of AI technology pose a very big challenge to both Japan's competitive advantage and the business mode in the future, thank you.

I also made a certain observation and consideration that I noticed in America, both domestically, some discussions about AI capability to play human labor force, especially for white collar. And you know that open collar is quite important recently, everybody is talking about open collar. So that might take in some opportunities for human work, and I noticed that. But my own thinking is that more based on the market we are facing, my first opinion is that the development of AI, the improvement AI can have to the human labor efficiency, I think is a very good supplement to the overall labor force in the coming to 20 years.

In 2026, it's about 8.8 million. According to the current situation, the forecast will be down to 9%. In 2046, the forecast will be down to 6.9 million. This is the result of the forecast and the forecast.

So we have made some quite reasonable and practical calculations that if we do not have consider age between 16 and 59 a broader age for labor force that number in 2026 is about 880 million and according to the current situation we refer that in 2036 that number will go down by around 9%. And till 2046, the number will further go down by 20% to 690 million. So this is just a result based on our calculation and some factual data. So in fact, this 9 to 20% in the coming 10 to 20 years, that decreasing the number, I think is a quite challenging, quite a severe challenge. And what we can see can help with this situation is actually the application of AI in this daily work.

So it's a 2-1 relationship. From China's perspective, it's a different way. Our national population is more different.

And another thing different about this AI discussion, replacing discussion in the US, that two different points between US and China. First, it's a ratio between blue collar and white collar is different. So there are around like 150 or 160 million labor force in the U.S., and the white collar has around 100 million, so it's like a two-to-one ratio. But from China's perspective, it's the other way around, which means we have more blue collar population.

We are working on the companies that are working on the market, which is at about 4,000 million in the world.

According to the public data, 98% of the companies are small-scale companies. From a small-scale companies' perspective, maybe you can remember before many very successful companies So in China, such as 98% of the small-scale companies are not easy to be able to get to know, because 8 people and 9 people are not much more than a problem.

So I think, as a matter of fact, I have 4,000 more than a company, and I have 4.2 million more than a country.

So another different point between US and China is the the situation of the enterprises, which is the employer. So there is a common upgrade that in China, number of active operational enterprises is around like 40 million. So according to the public data, we can get 98% of which need small, even micro-sized enterprises. So from SMB's perspective, maybe you can record a lot of very successful SaaS companies, are not that easy to achieve some kind of success in China, because where in China, 98% of companies are SMBs. When they're hiring people, for example, they're hiring 8% compared to 9%. The difference is not that huge and it's not that difficult. So it's the same situation here. Around 40 million enterprises in china hired around like 420 million urban employees so on average one company hired around 10 percent because the development ai the company might uh hire 9 percent instead of with 10. i think that can explain why the a lot of software or self-company not access in china So that is actually determined by the size of the company and the different stage of the development of the company.

Let's look at the actual data, one of the data is that the AI development of China's development has led to a large number of technology companies' innovation in China. We actually see that it's the amount of data to the AI of the people of the people of the world. In the summer of the year, the demand for the demand for the demand for the demand for the demand for the demand for the demand.

Of course, the discussion before was based on the assumption that the AI is largely taking jobs from the human beings. And now I will share another real data I have observed recently, that this AI development and a half brought about a very good enthusiasm about the entrepreneurs of technology companies and also a surge in demand from AI-related talents. So this year after the Spring Festival from the demand of the enterprise customers, the AI-related, artificial intelligence-related newly posted jobs grew by 172% young year. and active online jobs increased by 80% as a very huge improvement. Now, about direct AI related jobs, we have another question. concept about AI plus if you can recall the concept of internet plus. So more and more companies, not only in the first tier cities, but also more and more like second tier cities in the center of the provinces, the companies are recruiting talents or background related to AI and increasing creating new roles. Now we can call that AI plus for now. Actually those jobs are more and more commonly adopted and more and more further going into lower tier cities and more and more common or lower in the salary range.

The speed of the car, the speed of the car, the speed of the car, the speed of the car, the speed of the car. I also saw that there are researchers who can take the data from the East Coast, the data from India, or who's the data. The speed of the car is also increased.

And now for the overall number of jobs for the white collar, I actually mentioned in my report earlier that this year, the overall number of white collar jobs increased, especially like internet, like information communication, communications and new contractors and automobiles, they actually are outgrowing the overall platform. And if you compare to the other side in the US from Indy, their data also shows that the number of white-collar jobs increased this year. And I am quite appreciate your concern about our own challenge arise by the AI itself. We have been paying a lot of attention to this since the beginning of 2023, since ChatGPT 3.5 moment.

First of all, I think the thing that we don't change, the thing that we can't change, is that Boss is a human game, it's a human game, it's a human game. Both people want to work, and take care of them, and they want to take a brother back to work. Both people want to work, and both people want to work. This is a double-sided market place. I think this is not a change from the beginning.

First, one thing has not changed, the AI also cannot change, that boss shooting is actually a platform for the game of people, for a carbon-based human means, the both sides are live people who are looking for a job to provide for his family, so the person needs somebody to help him to do the job, and both sides need to be workers, from the supply side and So that's a marketplace for a real person of majority of the population. Another point that Amelist and investor who have known us quite well knows that one point, which is a prediction in the past, but it's a reality now that we have a very strong bilateral network effect, which caused that in addition of our users continue to grow, the individual achievement a user can get also increases. So at China, we haven't felt any challenge arise to post it to ourselves. On the contrary, due to our unique data, I think AI can help us to better solidify these advantages.

There is also one thing I mentioned in the report that we have already seen that in AI's performance, we can go into a large number of billions of exchange in the market.

And another point is, as I mentioned in my prepared remarks, that we now can clearly see that with the informative AI, we can move forward very aggressively into this placement market with the multi-hundreds of billions of market size, which is actually since the beginning of online recruitment industry in 1997, and now the first time for the online recruitment platform to have opportunity to achieve like a business model based on results. And AI is actually helping us with that.

So, Eddie, I actually don't have too much... I think I don't have to have a lot of knowledge or research to talk about the future. What can I say about this AI? What can I say about this AI? What can I say about this AI? What can I say about this AI? What can I say about this AI?

So, Eddie, you can see I don't have any like unique point to predict or not well positioned to predict what kind of influence or might even disaster AI can point about to the real world. I just provided you some observations based on current data, based on our daily work. So that's my answer to your question.

Thank you for the question. One moment for the next question. Our next question comes from Timothy Zhao of Women's Sex. Please go ahead.

Thank you. 最近也取得了不错的进展 那请请教一下我们持续投入和更新南北格作为一个小尺寸模型的原因是什么 那我们想通过这个模型做到的目标和应用是哪些 那这个可能是第一个问题 第二个问题是想再详细请教一下我们看到春节之后的这个招聘的趋势 那可口情况也曾在分享一些更多的细节 特别是与往年相比 Now, what are some special features in this year? I'll quickly answer it. Thank you, Majin, for taking my question. The first question is a more follow-up question on the AI and AI progress. Could Majin share what is your plan for the AI portal in terms of testing, in terms of new product launch? And regarding the AI portal monetization, what kind of expectations that we should have for this year? And we also note that for your non-big or large language model, just wondering what is the rationale behind your consistent investments, and what is your expectations in terms of the non-big or large language model application this year. Secondly, it's regarding the recruitment demand or the recruitment trend after this new year. Just wondering if you can elaborate more details, and especially compared to the previous years, What are the special points about the recruitment demand for this year after China's New Year? Thank you.

Yes, we said, what can we get into the production field of AI? I said, it's quite clear that last year, we reached out to 1.2% of the revenue. So, this year, we think it's going to be increasing.

This is what I think is quite clear. And then, I don't want to say it's an AI product, it's an AI product.

So, if we can move back to the AI product, we don't have to be able to do this, we don't have to say it's an AI product. This is an AI product. I would like to say that it is one of the things that we use in the same environment in the same environment. There are a lot of products that we see in the same environment, but I still have to say that this is a native AI online recruitment product, and I still haven't done this.

So about AI commercialization, so the first thing is about the close-loop placement service, which last year we have already made like a millionth level, a hundred millionth level of revenue, and this year we expect that number to double or triple, even have multiple growth. That's quite I'm quite sure. Another thing is not like a native AI product. I would rather say is AI is empowering all aspects of our operation and technology and the product to help us to provide better solutions and better user experience to our customers.

And the fact that we have to keep in mind that we should keep in mind that we should keep in mind that we should keep in mind. The company has large-scale AI applications, including the financial services, and the company manager and the company.

And the same thing, in AI science, there is a small group, but we don't have so many new things.

And the case of the U.S. is that we need to keep the world's innovation in the future. The purpose of the U.S. is that we need to keep the world's innovation in the future.

So, actually, the company has made a very good thing. very significant investment in AI applications, including resources, product managers, and technology team. In the meanwhile, we also kept a relatively smaller science team to develop our model. So the thing about keeping our own proprietary pre-training model, the reason is that I feel that we are necessary to keep our so-called tail-like strategy during a world that AI is developing very, very fast. So we must have a team who can clearly follow the most advanced leading company to see what they're doing. So that's the reason why the Numbig Science Lab exists. We cannot only become the company to download open source platform. And then sometimes some scientists tell us if we can only download other purposes, then we might not understand what is happening and download something we cannot properly use that. That's why we kept this tail light strategy. So we don't want to exceed, we just don't want to unlock.

It's worth it in the work of the 10-year-old work. We are clearly making small machines for ourselves to be able to use in the industry. This is no doubt about it.

The other thing is that we have a lot of scientists, very young and very few people.

I want to give this opportunity to talk about what they said to me.

They said, there are a few people who are more expensive, who are more expensive, who are more expensive, who are more expensive, and who are more expensive, and who are more expensive.

This is the fact that these four things, it is the fact that it is this kind of a problem in the world. But in fact, the science is not enough for money, but it is not enough for those people.

So actually, when we had to make a small model, I didn't say that you can make a small model out there, and I didn't say that you can make a small model out there.

I was thinking that we are not a very wealthy company, Timothy, but we are not. But in this event, our human base is the number one. This means that a very small company can also express their voice.

Okay. Another point is that it's quite easy to understand why we are doing this smaller scale model, because it has a relatively very low cost for training and reasoning. And it needs more smart or intelligent ideas, which is quite useful to our daily work. And apparently we are doing this model to further help our industrial applications that are undoubted. And another thing is our scientists, which numbers are relatively smaller, but they are very, very, very young and talented. I would like to take this opportunity to tell you something they are sharing with me, that they say that one day, there is one day. It's not that compared to who can consume more electricity, who can consume more computing power, who have more data, who can give a higher salary compared to all those four things. Actually, it's the obstacle that current paradigm is facing for the current model. But so actually the science is not to belong to the money. It belongs to the people who have very strong experience. So actually when our scientists are talking about making, developing a smaller model, I didn't tell them to do it by tomorrow for my industrial application. I want to say that we are not a very wealthy company, but in this progress of human technology revolution, we once have taken the number one of the hugging face text ranking, means that a small size company can express their own voice during this huge technology revolution.

Yes, this is AI, because we are all in the middle of the year. Then, I would like to ask you to talk to our DAPU CFO of Wengbei.

Yes, about the Spring Festival Recruitment season this year, as Jonathan just mentioned, This year, we actually saw a very strong improvement demand with both new and active enterprise data showing significant year-on-year growth, and the CB ratio remains stable. But I'd like to point out there is one difference this year that the later Chinese New Year actually will result a weaker year-on-year data for the fourth quarter, especially on a gap basis because there are actually, if you count, there are 20 fewer days for revenue recognition after the holiday compared to last year for things in the first quarter. So that might have a bigger impact on the gap numbers for the quarter. but on the full year if we're looking at the lunar calendar alignment our cash question growth is positive and we are expecting to accelerate further throughout the year compared to 2025 and yeah that's all on the to the to the question and given the time constraint i think we can take the last question certainly allow me to open up the last question the last question comes Please go ahead.

So thank you, management, for taking my question. Firstly, could management update our user growth target for 2026? And considering the additional investment in sales marketing and AI this year, how should we think about the margin trend as well as the future room for margin expansion? And secondly, regarding our overseas business, could management please give an update there as well? We know this very rapid user growth of over today in Hong Kong, so what's our plan for the next stage of development?

Thank you for your question. I will answer the first one regarding margin, and then Jonathan will take the OEC question. So for 2026, we are still looking at a very robust user growth, so at least we want to add at least 40 million of newly verified users this year, and in terms of investment, As you said, we might further invest in AI, like computing powers, buying servers, and maybe renting some computing power. And about the World Cup, we have not decided yet. But even considering, though, we expect that given our strong leverage of our operating operations, we expect the overall adjusted operating margin can slightly increase compared to last year, even taking into consideration of the World Cup and AI investment. From the long term, we still have quite a huge upside potential for our main recruitment and domestic business, and we will maintain a steady growth year-on-year going forward. However, as Jonathan just mentioned, we have, if we have opportunities in new initiatives like coastal placement, AI, overseas, we will not hesitate to invest, and we will communicate with the market in that impact timely, but at least till now, we are expecting our margin, our margin to improve suddenly in the coming years.

Thank you for your attention to Offer Today's development.

Actually, I feel like the last time I came to Hong Kong is going to be a little different. Especially now. Offer Today's development of the DAU, we can see that it is now in Hong Kong's first. If we add more than that, Hong Kong has 300 million people. We can say that every 50 people in Hong Kong every day have a chance to see the opportunity in the off-today. The majority of these people in the off-today have found a new opportunity. I think this makes me feel like I'm looking for my users.

I'm very happy.

Thank you for noticing over today. So this time when I'm coming to Hong Kong to do the earnings, I have assigned to different feelings, especially now. Over today I have now ranked the number one in Hong Kong in terms of daily active users on the mobile. And if you compare different platforms like mobile and pc so among the three million workforce in hong kong i can say every 50 hong kong workers one of them is using offer today daily to looking for opportunities some of them have already secured new work opportunities through offer today but now when i'm working on the road i am looking at all the potential users for me i felt quite happy a boss-driven model, but there are some boss-driven things that are more faithful.

So at a certain level, boss-driven such native art in the Hong Kong market is recognized in the Hong Kong market. This is at a certain level. So, next, our work is to do in the basic work, including two parts. The first part is that the products are still in the basic work. The second part is that the team needs to move forward. We hope that more young people will become the leader, manager, director.

For today, it's not a simple replica of boss shipping in China mainland, but the core is actually the same. So, somehow, the Boss Shipping as a native app has received a certain recognition in the Hong Kong market. But our follow-up job is to further push forward the localization, including two parts. First is the localization of our product, and the second is the localization of our team, especially we are expecting more and more native Hong Kong young talents to join us, becoming the leader manager of our office product. and move beyond offer today about our other international approaches i can say that we will be more active to looking for opportunities to cooperate local with local institutions for opportunities like that actually we are making some progress by still not coming yet to make to make the report okay i just want to clarify we uh hong kong is part of china so uh the up young the uh hong kong the the the overseas markets so that's uh uh all the answers for the question thank you due to time constraint that concludes today's question and answer session at this time i will turn the conference back to laura for any additional or closing remarks

Thank you once again for joining us today. If you have any further questions, please feel free to contact us.

That concludes today's conference call. Thank you for your participation. You may now disconnect your minds.