Kanzhun Limited Q4 FY2025 earnings call

First, reviewed financial results for Q4 and full year 2025. Second, noted robust momentum in supply and demand during spring recruitment season with daily newly verified users including job seekers and enterprise users exceeding last year's同期水平, active users after spring festival reaching record high, and various industries showing growth. Third, updated on AI progress including closed-loop services revenue reaching hundreds of millions last year and expected growth this year, AI quick hiring tool for high-end users achieving positive results and being scaled up, AI-assisted interview feature experiment fully rolled out improving interview room usage and data collection, proactive application of AI agents to assist enterprise users improving efficiency, and scientists of Nanbeige laboratory achieving top explorations in small model intelligence. Fourth, announced plan for shareholder returns with board approving to allocate no less than 50% of adjusted net income for dividend and share repurchase over next three years and upsizing share repurchase program to $400 million.

Fourth quarter: Total revenue of RMB 2.08 billion, up 14% year-on-year; adjusted operating profit reached RMB 900 million, up 37% year-on-year. Full year 2025: Total revenue of RMB 8.27 billion, up 12.4% year-on-year; net income reached RMB 2.7 billion; adjusted operating profit reached RMB 3.38 billion, up 45.7% year-on-year; adjusted operating profit margin reached 40.8%. By sector: Manufacturing, electronics, communications, semiconductors stood out; urban service, automotive, consumer retail industries saw faster growth; Internet technology industry achieved faster year-on-year growth in Q4 than Q3. By city-tier: Revenue contribution from third-tier and low-tier cities approached 25% in Q4, doubling compared to four years ago. By enterprise size: Revenue contributed by enterprises with fewer than 100 employees exceeded 50% for the first time in 2025.

For Q1 2026, expect total revenues between RMB 2.050 billion and RMB 2.085 billion, up 6.6% to 8.4% year-on-year. For 2026, aim to add at least 40 million newly verified users. Expect adjusted operating margin to slightly increase compared to last year even considering AI investments.

Q: Concerns about AI agent application reducing white-collar recruitment demand and impact on recruitment market growth, and whether AI technology poses big challenge to company's competitive advantage and business.

A: Discussed labor force data showing decrease in labor population in coming years and need for AI application in daily work, differences in blue-collar and white-collar ratios between US and China, actual data showing increase in AI-related job demand after Spring Festival, and that AI can't change that the platform is a marketplace for real people and AI helps solidify advantages.

Q: Follow-up on AI products testing and plans, model of Nanbeige, and recruitment demand after Chinese New Year.

A: Last year closed-end services revenue reached hundreds of millions and expected to grow this year, AI empowering operations and product, kept small science team for tail light strategy to follow advanced companies, and this year recruitment demand after Chinese New Year with daily newly verified users and active users exceeding last year, and adjusted operating margin expected to slightly increase.

Q: Update on user growth target in 2026, margin trend with additional marketing and AI investment, and overseas business progress.

A: Aim to add at least 40 million newly verified users in 2026, expect adjusted operating margin to slightly increase considering operating leverage, and OfferToday in Hong Kong is number one in daily active users on mobile end, next step is localizing product and team.