Kanzhun Ltd (BZ) Q2 2026 Earnings Call Transcript

Thank you for standing by and welcome to Country Unlimited Second Quarter 2026 Financial Results Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, question and answer session. Today's conference is being recorded. At this time, I'd 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 and good morning, everyone. Welcome to our second quarter of the 2026 Ernie Humphrey Hall. Joining me today are our founder chairman and CEO, Ms. Jonathan Hong-chuk, and our deputy CFO, Ms. Wengue Wang. Before we start, we would like to remind you that today's discussion will contain forward-looking statements, which have based on management's current expectations and observations that involve known and unknown and other factors not under the company's control, which may cause actual results, performance, or achievement of the company to be materially different. The company quotient did not display on zero line, on four looking statements, and did not undertake any obligations to update before looking information, except as required by During today's call, managers were already discussed during non-determination measures For comparison purposes only, for definition of non-debt financial measures and reconsideration of debt to non-debt financial measures, please state earnings through this issue earlier today. In addition, a webcast replay of this company call will be available on our website at www.iradagy.com. With that, I am now trying to call to gentlemen, our founder, chairman, and CEO. Hello, everyone. Welcome to the company's second quarter of the 2026 annual meeting. On top of all our employees, merchants and board of directors, I would like to explain our sincere gratitude to our users and investors.

Today I will talk about three aspects. Two-day-to-day growth, the market market growth strategy and the股東 report.

Let's talk about the year-to-day growth.

The company's earnings of 24 billion, with a increase in 14%. 利润方面,二级度扣除股权激励费用后的经调整营业利润10.5亿元,同比增长19%,经调整营业利润率为43.8%,同比提升1.9%. including share-based compensation expenses with R&B 1.05% at 19% year-on-year. Our adjusted operating margin was 43.8%, at 1.9%-ish point year-on-year. 截止到6月30日,过去12个月付费企业端客户数达到720万,同比增长11%。 多个核心基因指标本季度创下历史新高。 Two weeks, Boss直播APP's average average average users will increase in the second quarter of the year. 同比环比均时线增长,再一次的在用户规模增长的同时,用户收购也来提升。 接下来阐述一下公司增长策略,在高线城市和低线城市的分化。 And how will the company grow strategy users from higher tiers in the world tier 3?

The second quarter of this is the first anniversary of the company's IPO. In my first class, many of us will remember that through our past bodies, we have constantly maintained that the core value of the company's growth is in the world. This is determined by the size of the market. China has nearly 500 million people in its urban workforce and more than 14 million active businesses. Based on the funding, both Japan has accumulated research across nearly 300 million users and approximately 22 million workers. Even from where we stand today, there is still a considerable room to grow. 其次,这是由我们的模式决定的,BOSS直聘独创了移动加推荐加治疗,它的第一性就在于极大的降低了招聘者和求职者的沟通成本。 This low cost model enables tens of millions of companies to shift from traditional recruitment to mobile internet recruitment, thereby regionalizing and mobilizing recruitment on a large scale.

For the vast majority of our enterprise users, the first time they used our services was also the first time they used online equipment. more diverse, more users, more users, more users, more users, more users, more users, more users, more users.

Third, this is determined by our friends and users needs. Double-sided network effects sees the company's job's fatality. The larger the users base on both sides, the greater the variety of users, the more users stress themselves, and the more users interact, the better we can help them. 推动用户增长的过程就是为推荐引擎源源不断地生产数字石油的过程 过去几年我们连续看到随着双边月活用户的增加 单个用户的收获也在增加 Over the past several years, we've consistently seen that as much the active users on both sides have increased, these outcomes currently have also improved. With the engine supported by AI, we saw not only that AI improved the engine position, The engine helps AI quickly establish a data flywheel. Over the next five years, we will adopt a bunch of strategies for Tier 3, 4 and Tier 5 cities, and for Tier 1 and Tier 2 cities. In tier 3, tier 4 and tier 5 states, the core drive-off growth will continue to be used to growth, and our most important objectives will remain in the penetration. 关于我们的服务价格,先看一下Q2的实际情况。 这个Q2收入是24个亿,这个数字有十位数,还不错。

但是,我们在北京,许多职位发布一个月的价格,就是买两杯咖啡的钱。 这月所发生的许许多多的达成, 它的单价只购买一瓶矿泉水 什么叫达成 对于不太熟悉的人 我还是想在这里解释一下 我们平台上的一个达成 相当于在其他的招聘平台上,求职者对特定招聘者发起了一个投递,而该招聘者确认接受了这个投递。这样一个双边的确认是我们这里所说的一个大重。 of the application.

That's what we call a mutual match.

So, such a solution in Beijing, Shanghai, 深圳, Guangzhou, and成都, in many cases, can only be able to buy a 7-1-1

in 7-1-1. In Beijing, in Shanghai, in 深圳, in Guangzhou, in Chengdu, in Mexico, one such match is worth only one bottle of mango water and edit them in the land. To make this easier to understand, Let's get data from the leading recruitment platform in a mature money. According to some degree available information, one click on that platform costs approximately 0.25 to 100 dollars, while generating one application for a baby-throw costs approximately 5 to 10 dollars.

So for such a基礎職位, how many candidates can be achieved? I don't have the data from other people. If I consider the效率 is higher, every five candidates would like to accept one.

So the cost of the award is 25 to 50. based on a high efficiency case that will prove it will not be like one of every part application that will translate into $25 to $30 per initial match. This matter gives you an intuitive sense of choosing. First, compared with developed countries, as an important question on talent increases, the human resources are in the deep growth.

There is a considerable role for Chinese companies to increase what they take to the first level. 当然这需要一个时间,时间的力量是很大的。 比如有一个例子就是,今天在北京一个很好的软件开发工程师的薪资跟在硅谷是差不多的。 Of course, this will take time.

Time is powerful. One example is that today, the value of a valuable software engineer in China is roughly at the same salary as the Bitcoin value. Compared with one aspect of the enterprise in Beijing, after that, many entities have achieved the new enterprise, which is about one-tenth of mineral water.

A human cost of junior human resources personnel could buy 1,000 mutual money.

Therefore, we can say that, compared with Beijing, the service line in our field also has some potential to increase. 整个行业就有萎缩的可能性 因此在IPO第二个五年开始的时候

公司的增长策略发生的变化就在于 对于成熟市场及一线市场和部分二线城市 在提升用户体验的同时 逐步提升客户的付费金额 包括付费率的合理提升 和达成单价的合理提升 This process has been done for a while, and this process has been done for a while.

The result of the process that we have seen, part of the reason is that it's because of that. It's also that in the last quarter, there would be criticism that growth and profit growth in the second quarter would be better. That's part of the reason. In the right place to change the growth model and everyone that patient has. play a critical role, which mainly reflects between three elements. The large scale application of AI increases the platform's efficiency.

The large scale application of AI increases the platform's efficiency. 综合结晶方案.

Certainly, some big customers in the white-collar or blue-collar factories agree very much that they believe that the AI-powered interview, AI-assisted resume and other competitive solutions also helps them. Third, the connection with our platform students is actually consequent with the performance of our platform seekers on the platform and within the router. That is, teachers are not supposed to do the equipment, but to do the type of hire. This brings us to our close group segment. The closer our services get to the actual hiring stage, and the closer we get to charging based on the process, based on the cycle hire, the more the business model approaches a close group. The company will continue to invest in exploring this area. One point was mentioning that the revenue we received from our AI and labor process business through rectory quarter-of-quarter in the second quarter. Let me discuss shareholder return. The board today has a resolution proving the distribution of annual dividends of 2013 million dollars. Since the beginning of this year, the company has returned approximately 300 million dollars per share, representing more than 4.7% of its total share capital. In 2020, the common total shareholder returns through sheer repurchase and data amounts to $530 million, exceeding 100% of black U.S. adjusted net income, and also exceeding the 50% we previously committed to. We share the benefits of the company's growth with shareholders.

My介绍就到这里. Next, we will be with our deputy CFO, Wenbei, to show you the details of the company's growth.

That concludes my remarks. Next, our deputy CFO Wenbei wants to walk you through the financial in detail.

Thanks, Jonathan. Hello, everyone. Now let me walk through the details of financial results of the second quarter of 2026. We continue to deliver a high-quality set of financial results this quarter, marked by solid revenue growth and further improved profitability. Our revenue achieved a accelerated trend reaching R&B 2.4 billion, representing 14% young-year growth. Recruitment demand in the second quarter remained broadly stable. redraw revenue and profit growth through user-based expansion and improved monetization from higher-value services. The number of paid enterprise customers increased by 11% year-on-year to $7.2 million over the trailing 12 months ended June 30, 2026. Importantly, the paying ratio among active enterprise users improved for the fourth consecutive quarters, reflecting our sustained progress in monetization. AR PPU output for the quarter increased 7% year-on-year, driven by more efficient and valuable services, including an expanded suite of AI-powered features, which encouraged higher customer spending. revenue growth was broadly balanced across different account sizes this quarter, with both key accounts and small-sized accounts showing healthy momentum. Moving to the cost side, our total operating costs and expenses increased by 6% year-on-year to R&B $1.5 billion this quarter. Total share-based compensation expenses dropped by 19% year-on-year to R&B $196 million. As percentage of revenue, share-based compensation expenses continued to continue this downward trend to 7.8% this quarter, down 3.1 percentage points year-on-year. We expect share-based compensation expenses as a percentage of revenue to remain at a high single-digit level for the full year of 2026. In the second quarter, we sponsored the FIFA World Cup and increased our investment in AI-related cloud services. Meanwhile, our Our headcount grew sequentially, driven by stable growth in equipment demand. Despite these investments, our profitability continued to improve. Excluding share-based compensation expenses, our adjusted operating margin expanded by a 1.9 percentage point year to a record high of 43.8%. This was primarily driven by our strong operating leverages, disciplined execution, and ongoing efforts to enhance operating efficiency through AI applications. Looking into each segment, cost of revenues increased by 2% beyond year to R&B 312 million this quarter. This increase was mainly due to higher survey and bandwidth cost, partially offset by lower App Store commission fees and improved operating efficiency as we widely leverage AI in our daily operations, verification, and customer services. As a result, our gross margin went up by 1.6 percentage points year on year to 87%. Sales and marketing expenses increased by 38% year on year to R&B $581 million this quarter, mainly due to the marketing campaign of the 2026 FIBA World Cup, as well as an increase in sales employee rate expenses related to higher cash revenues. Our R&D expenses were RMB $431 million this quarter, up 3% year-on-year. Excluding share-based compensation expenses, our adjusted R&D expenses increased by 7% year-on-year to RMB $361 million, many due to higher cloud service fees and server depreciation expenses related to AI infrastructure investment. Our G&A expenses decreased by 30% year-on-year to RMB $219 million this quarter, mainly due to lower employee-related expenses. Interest and investment income reached RMB $1.6 billion this quarter, compared to RMB $157 million for the same quarter last year. This increase was mainly driven by investment income of around RMB $1.5 billion, arising from the fair value changes of one of our invested companies, which went public in January 2026. Income tax expenses were RMB $515 million this quarter, compared to RMB $97 million the same quarter last year. This increase was also many due to the RMB $367 million tax impact from the aforementioned investment income, withholding tax of RMB $20 million, as well as the RMB $10 million provision for the top-up tax under the OECD Pillar 2 rules and higher income from operations. Our net income reached RMB $1.9 million this quarter, up 173% yon year. Excluding share-based compensation and net guidance from the aforementioned investments, our adjusted net income increased by 9% to R&B $1.03 billion. Net cash provided by operating activities was R&B $945 million this quarter, down 10% each year. This decrease was mainly due to higher advertising and marketing expenditures and tax payment, as well as lower interest and investment income received, partially offset by increased cash collection from customers. As of June 30, 2026, our cash position, including cash, cash equivalents, short-term time deposits, and short-term investments, but excluding investments in securities, stood at RMB 18.8 billion. Our strong cash position and cash-generating capability enable us to sustainably deliver our shareholder return commitments. As Jonathan just mentioned, the Board declared an annual cash dividend of approximately US$230 million combined with over US$300 million in share repurchase. We have completed year-to-date, which represents roughly 4.6% of our total outstanding shares. Our total shareholder return so far this year exceeds U.S. $530 million, representing an over 100% shareholder return ratio compared to the adjusted net income last year. Cumulatively, we have now brought back over 10% of our total shares outstanding. And now for our business outlook, for the third quarter of 2026, we expect our total revenues to be between RMB 2.41 billion and RMB 2.5 billion, a year-on-year increase of 11.4% to 15.6%. That concludes our prepared remarks. Now we would like to take answer questions. Operator, please go ahead. Thank you.

To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, Please press star 1 1 again. Please stand by while we compile the Q&A roster. We will now proceed to take our first question. And the question comes from the line of Timothy Zhao of GMSX. Please go ahead, Timothy. Your line is open.

好的. Zhao總,文貝,晚上好. 感謝接受我的提問. 那我的問題是關於AI的. 那首先,可否請你曾進一步分享一下 我們目前AI的產品的一些最新進展? 刚刚我们谈到的闭环服务整体的收入规模是怎样的 我们看到AI对于匹配效率的提升 我们可以分享一些量化的指标 然后包括用户的反馈是怎么样子 第二个问题是关于我们的大模型南北格 我们看到在最新的大模型南北格4.23B这个模型上面 也取得了一个很好的成绩 Thank you, Benjamin, for taking my question. My first question is regarding your AI monetization. Could Benjamin share more color on the latest progress of your AI products? For the close-loop services that you just mentioned, Could you share any color on the overall revenue scale? And how do you think about the overall AI impact on the matching efficiency? And is there any quantitative metrics that you can share that would be great? Secondly, this is on your Nambago large language model. I noticed that you recently launched Nambago 4.23b model. Just wondering what is the improvement versus the last generation? and how do you compare the latest model versus the top larger complex model in the market and what is your different value competition?

He will use a search for help to help him. But the search for the search for the query is very short. This is a possibility that you can use a very long query. Of course, it is possible to use a different way of communication. In the sense of view, the query will be much longer. Actually, the system is getting closer. What are you thinking about? This is what we have to do with this type of query. So, a lot of queries, a lot of pages, and a lot of communication, and a lot of memories, and a lot of memories, can definitely help us to better service with a higher demand.

Using traditional advice, you can search for that you can better service, your professional level is relatively high. okay thank you for your question and about AI talent sourcing that we are currently use there is something slightly different it is well known that when some of our customers started to use our recommendation system and we begin to know them he used some of the search function to help himself but the search functions as we all know the problem is the query is relatively short and the large language model just gave us a possibility that you can use a very long query and also you can use multiple round of conversations to make it look like long but actually the system is just coming back to understanding what you really want so that's the fundamental capability the large language large-level model has so a very long packs and multiple rounds of communication that which can come come out to understanding of our customer demand and better to serve some clients who have high requirement who have the requirement for high professionalism in which use a better traditional recommendation search model cannot serve so that just bring us out bring our

or source capability to our next level. so it'll be 7000 billion times than 3 billion of that year. So, actually, there are many users involved in a certain type of user's display. This is the value of AI sourcing.

Based on that fundamental we discussed about it's quite easy to understand the new value AI sourcing has bring to us which we have already served more accumulatively more than 300 million users but our monthly active users last month is just as 17 million and we further penetrate to new users the 17 million monthly active users versus 300 So this creates a capability that we can expand our service to a lot of new users that are not within the most active user scope. The interesting part is, who are the customer who would like to, who has the most needs to contact this kind of silent customers. So this kind of customers or this kind of job seekers actually is more senior, more professional and more likely to be liked by the headhunters. So the headhunters always try to contact them. So in this process, that's part of the reason we are applying this function to both our own and third-party headhunters' work stream.

那么在这个地方就又涉及到了我们讲的一个追求闭环的工作 我宁可理解闭环 我宁可理解成是一个一环扣一环的这么一个过程 实际上现在AI在我们平台上已经帮助到 刚才提到的AI sourcing candidates 实际上我们也用AI帮助客户去筛选简历 实际上现在用AI面试的人在我们平台每天超过一万场的面试 实际上随着这个一环扣一环日益接近入职这一环 我相信我们在不断的在AI的帮助下有条部分的推进这个过程 So this is more and more getting close to like our pursuant of closed-loop service.

So my understanding of the closed-loop service is more like just one stage to another stage, the process of interlocking. So like we are using AI to help our customers to sort in candidates. We are using AI function to help them to spring in resumes. Our AI interview functions are not working on more than 10,000 interviews every day. So this stage by stage, we are getting more and more close to onboarding, and AI is just helping us to accelerate this process and achieving our goal. So for a number of 4.23B, it's quite a coincidence that early this today, a very well-known testing institution.

Artificial Analysis is more famous. It's called Liquid AI, Liquid AI is a small model. They joined the iPhone 17 Pro and Galaxy S26.

So a very well-known testing institution, Artificial Analysis, they combined with liquid AI to join the testing on small sized model on both iPhone 17 Pro and Samsung Galaxy A26. So Nambigo 4.23B has achieved just number one in five areas, including following the two transforming orders, scientific illusion, scientific interference, and mathematics theoretical So,南北格 has achieved number one in all those five areas. about the technology technology, the office technology, etc. Model 4.1 3B also achieved quite nice results. So this model has been quite good in inference writing fundamental advanced tools using. And on the contrary, 4.2 3B, this small size model, So I'm better to handle more complicated agent tools and functions, including coding intelligence entity and maybe office working intelligence entity, etc.

Using a small machine can also be able to solve the problems of the industry, such as computer, computer, computer, machine, equipment, etc. It has a lot of value. So far, it has been shown in the small machine we are at the top of the world. So, we will still keep in this situation.

So, we believe on the road to pursue AGI, there's one way that mega-sized models, super consuming of electronic power, investing a lot of money, there's a lot of big companies doing. There's another way that maybe a smaller size model can help solving some specific problems and also creates its own value. For example, the application in smartphones, on mobile vehicles, intelligent robots, etc. In those areas, those smaller size models, we are in the leading position and have proven our value.

And that's our answer to the first two questions.

I'll pray that I'll proceed to the next one. Thank you.

We will now proceed to take our next question. And our next question comes from the line of Eddie Wang of Morgan Stanley.

Please go ahead, Eddie, your line is open. 请教一下就是说从Boss我们来看的话 这样的宏观情况下我们会受多大的影响 以及我们如果通过自身运营上的调整 能多大程度上抵消比如说一些负面的宏观影响 这是第一个问题 第二个问题也是关于AI的 我想问一下就是说我们在AI应用与服务上 相关的这个未来的成本结构 会不会影响我们整体的这个利润率的水平 此外可能还想确认一下就是说我们会不会像某一些互联网公司一样吧 大幅地增加整个AI相关的资本投入 那我自己翻译一下 Thank you management for taking my question My first question is related to the macro impact What's your view on the macro impact on our company Especially for the second half of this year as most internet company that has reported second quarter results have mentioned the micro overhands and the weak consumption. To what extent will both be affected in the macro backdrop and how much of this macro driven pressure can be offset through our operation improvement. The second question is related to the AI development, AI service and the product we have launch and the public will launch. Do you expect they will have different cost structure and will this affect our overall margin? In addition, do we have plan to materially ramp up the KPEX as we have seen with some of the other internet companies?

Thank you. 关于宏观的情况,我觉得我尊重你们的专业的观察,我就不再赘述,那么从我们的角度呢,就是创业12年来,我们什么日子都见过,你们见过的,我们见过,你们没见过的,我们也见过,我们始终保持了公司一个让投资人比较放心的一个增长的态势和诚可的。 So, thank you for your question.

Regarding the macro situation, I actually respect your professional observation, and I won't talk too much about it, but I have been starting our business for more than 12 years, and we have experienced a lot, whether you have experienced a lot of experience, we have all gone through that. So we have always maintained to be a very stable and maybe trustworthy business and we will continue to maintain this very stable operation.

3亿用户和2200万家公司 众所周知 中国企业的平均生命周期 是比较短的 apparting to央行的数据 某一年的数据 中国企业的平均生命周期 是小于三年的 所以我说我们服务过2200万家 中国公司 其实这里面相当多的 已经归于成土

and we have a big opportunity here which is our potential market size we have served over 300 million customers and more than 22 million enterprises but it is well known that the average life cycle according to the central bank of China's enterprise is less than three years So within all those 22 million companies we have served, a lot of them are not active anymore. They have turned into new elements and beginning new companies. So for ease of observation, even we consider those 40 million enterprises as a fixed situation, we have more than double of our market to grow. and on top of a lot of new companies are emerging every year, so our actual market size is even bigger. This is our space, and the second opportunity is in the paying ratio, so our actual annual served number of enterprises is more than 10 million, and over 50% of them are using our service for free, so from that perspective, this is our second driver of second growth opportunities. 我以某一个一线城市为例子吧 因为这次的开会 我们给大家报告了 我们在一线城市接下来有可能做的一些事 我以某一个一线城市为例子 如果包括了免费的服务呢 那么实际上这个城市的所有客户 7月份获得的一个达成的单价 So I will use one first-tier city as an example. We just reported that we intend to increase monetization for certain first-tier cities. So in this particular city, including both paid and free service, the average cost per mutual match our customers can get for this city, for example, it's like XRMB.

And if we turn those free customers into our lowest level of paying customers, then those costs will grow by at least 15%. 说到这里呢 我觉得不论是投资人还是客户还是公众都不必担心这是一个什么价格 因为我们刚才描述过在这个一线城市非常非常多的企业获得的一个达成的单价就是在7-11买一瓶矿泉水的价格 So, 1瓶矿泉水 and 1.15瓶矿泉水, for a company's business, I think it's all right.

So, please rest assured, both our investors, clients and the public, that actually this is a very minimal change. I just explained that for a lot of our customers, the average cost to achieve a mutual matching It's only the price of one mineral water at 7-Eleven. So either one bottle of mineral water or 1.15 bottle of mineral water is a very minimal cost to every enterprise. So Eddie, just as we go through all these years, I am confident we are not only surviving, we should and we will be better and better.

Thank you.

And then you ask me a question, I would like to thank you for asking me this question. Because when you put a huge amount of AI to build a competition, I think they have their belief and their信仰, but the key is that they have the ability. Thank you. we will not have the impact of the revenue of the company's business, and will affect the company's business. We will keep the current投入, and you know our sales are still good, so we have the investment in the market. We have the investment in the market. We have the investment in the market of 20% to 25% of revenue.

And about the second question, thank you Eddie for asking me that. So actually, all those art companies who have invested a lot of impact for like arm raise or things like that, I think they have their ambitions, they have their beliefs, but most importantly, they have that financial capabilities. So for a company like us, when we chose the path of following or the tail light strategy and we prioritize AI applications and smaller size companies. That is our approach, our strategy to facing this AI, maybe disruption or AI impact, which we can't do. So thank you for your trust, but I believe our investment in AI will not impact our overall cost structure and impact our operation capability and financial margins. So we will maintain current level of investment. And as you know, we have good profitability. So we will maintain around 20 to 25% of R&D expenses, and we will spend incremental money on AI and to give more support. But I will not sacrifice our safety on our cash flow. I won't do that. Just don't worry. And that's our answer to those two questions. Thank you.

Thank you. We will now proceed to take our next question. And the next question comes from Wei Xiong of UBS. Please go ahead, Wei. Your line is open.

I have two questions.

First of all, it's about our business. We are very healthy. I'm curious if we can change our AI for the help of the help of the AI and the future. If we want to expand the next half year in the World Cup, what do we want to do? The second question is what do we want to do in the future? What do we want to do today? What do we want to expand to other markets? thank you management for taking my questions first is encouraging to see our margins have been maintaining at a very healthy level so could we quantify the benefits from AI in our internal use to drive better efficiency and lower cost and how much room of further invest improvement do we see also after the investment in World Cup how should we think about the investment plans the expenses and the margin trends in the second half and second could we please get an update on your overseas business, including the offer today, and how should we think about if there's any plan to expand into other markets? Thank you.

Thank you. I will take the first question on margin. So actually, we have been leveraging AI in all aspects of our daily operations, including security notifications, sales, and marketing, and operating, and everything, and everywhere. But to qualify it, it may be more easier than the cost line. So since 2023, we have been witnessing that alongside with our user growth, our overall headcount of operating employees maintained stable. So as a result, the employer-related cost as a percentage of revenue continued to go down and helped to contribute around two percentage points of our gross margin. So you can see our gross margin now stayed at a very healthy high 80s level, and we believe we still maintain this very high gross margin level. And for our outlook for the second half, yes, we have sponsored the FIFA World Cup, but the cost will be evenly distributed or recognized within second quarter and third quarter and apart from that we will maintain our current investment level of the cloud service rental cost for our ai model training so we are expecting maybe in the third quarter the margin level should be similar to the second quarter and for the full year as we expected At the beginning of this year, our overall adjusted operating margin can still slightly increase. And thank you for your concern about offer today. So our current goal for offer today is in like maybe five years from today, it can bring the company with 100 to 150 million US dollars of revenue about the market size of Hong Kong. So we call it like maybe a middle dish, not too fast, but not too low.

This is the opportunity to go to some places, I think it may be the most important part of the country. It may be the most important part of the country in Asia, which is the most important part of the country in Asia. 以及呢我觉得是相对发达比较发达的欧洲的大城市 这个就是跟Offer Today给我们的启发 简单讲叫做三年的适应期五年的发展期 然后呢1到1.5亿美金的revenue 作为一个city market或者是一个city cluster market 这是我们的一个标准的一个想法

And the lessons we learned from offer today is that it took around like two or three years for a new business like offer today to enter into a market and then next additional five years to grow to let me achieve like 100 to 150 million US dollars of revenue. So, we consider this kind of place or this kind of city worth investing. Of course, those cities are in Asia and Europe. Of course, we need to avoid those high geopolitical risk areas. So, to sum up, two or three years of adoption, I'm sure five years of development, there are still a lot of cities of this size worth investing. 另外就是我们有一些叫慢菜就是要看个很久时间大概要看十年左右十年到十五年也希望有类似刚才这样的收益那么这样的市场的画像大概就是国民的平均年龄比较年轻他是个年轻的国家 It's a more interesting country, its population is close to a year, or less.

If you look at this picture, it should be like Vietnam, like Argentina, like Brazil, like Brazil. This is what we hope for 10 years to 15 years after the market to be able to get more of this kind of model, and at that time, we can bring a great profit to the company.

So this is a big topic called Offer Today. and also we have some markets we call the slow dish maybe take a longer term around 10 to 15 years which also achieve revenue like 100 to 150 million US dollars so the profile of this kind of market like maybe generally younger in the average age of the citizens and these developing country but to develop it is developing quite oddly. Its total population is slightly less than 100 million, so some places like Vietnam, Argentina, or Brazil. So in 10 to 15 years, we are hoping this kind of city can accept new models like we have created and bring about the smallest profit revenue-truth company by them. So this topic is about today and what lessons it can give us to developing our overseas business. And that's our answers to all the questions today. Thank you.

Thank you. Due to time constraint, that concludes today's question and answer session. At the time, I'll turn the conference back to Laura for any additional or closing Thank you once again for joining us today. If you have any further questions, please contact our IIT directly.

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