Q3 2021 Kanzhun Ltd Earnings Call

Ladies and gentlemen, thank you for standing by and welcome to the <unk> Ltd third quarter 2021 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. Wendy Huang head of Investor Relations. Please go ahead ma'am.

Thank you operator.

Good evening and good morning, everyone welcome to our subs courtyards and day 21 earnings Conference call. Joining me today, our founder Chairman and CEO, Mr. Jonathan So and our director and the CFO Mr. Jeong.

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 impulse, you're not to place undue reliance on forward looking statements and do not undertake any obligation to update these 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.

That's an issue of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. Please see the earnings release issued earlier today.

In addition, a webcast replay of this conference call will be available on our website and I are both shipping dot com.

With that I will now turn the call to Denison, our founder Chairman and CEO.

Yeah.

Hi, there.

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So was there was something about who's attendee uncle.

You just don't you don't show them that you don't close hopefully I Gotcha gotcha.

She didn't even though chinas questions Jim.

San Diego was true.

Oh sure you, Paul Eagle I'm doing but yet you called out cheap.

So you're going to close with our balance sheet.

I'm wondering you didn't do it all.

Are they are you can shoot it.

Oh, yes, Oh, well I just talked about.

Most of the shield, who does it.

Throughput.

So your job good to me like your departure Goalposts owned all the bullshit.

So they've all been done quite a bit that I love about it saga.

So one of you about hot dogs, though that you could do.

I'm going to draw the cool pool.

Well, it's I'll show them, both so I can tell you yes.

Well it tells you.

You're just you're glad you feel about it yet.

You told them go through itself.

That's it I'm going to a childhood she yet.

Yeah.

Uh huh.

She's a lot longer.

Joe.

Hello, everyone welcome to our second quarter T. J in terms of Bank earnings conference call on behalf of our entire company.

I'd like to express our sincere thanks to our users and that's true for your trust and support.

That's.

The first company to report them together with our company went public.

And it was also a special period.

Many of you already know.

Legislation on the books shipping has been suspended due to likely could take into one.

Obviously as I said, both the codes.

As a company, which has gone back to the U S.

That measurement.

Mhm, the registration sports great challenges to our team.

However, we have also taken this as an opportunity to focus on improving our service for existing users and reinforcing the development of our core competencies and have made some substantial progress over these last months.

I believe that enterprise.

So price would start to go peek might not necessarily be able it could become slum.

Company, which can go stronger definitely it has a better chance to become bigger.

Essentially tops shorts women's as you know San Diego Yeah.

With Florida.

So did you do them at the golf show Little late and then B E.

So yellow button.

Toby come down.

Cool cool cool judge Judy field up in charge of what you view that.

Ladies Sundance.

Yeah.

San Diego Boston.

King.

Sure Bob I thought you all that.

Shelby Junior side, you don't come cheap so jello passenger I've thought about it.

No.

Remember.

We might need to be sound results in the third quarter of this year. We recorded total revenue of RMB at one point in 'twenty one.

Water and increase of 105% year on year and our adjusted net income excluding share based compensation expense was RMB 385 million.

In the third quarter, Oh, well I believe I may have on the books written at $28 6 million recording representing a year on year growth rate of eight 6%.

Goalpost that you listen to your door.

Male shampoo to Cook.

We'll do them deal with each of you and Joe.

That's a cool.

Uh huh.

Well not really well the sanya most of that you'll show us your female funding bill.

You got to jump ship woman.

We are way more G, but they shouldn't be.

And they all the fun B G O GUL issue.

Yeah.

You Gotta do Youll ship well do.

No.

Okay.

Does that mean.

You do some yoga because I know that you've.

Talk to her.

You shouldn't feel hot.

She couldn't even tell you well know what she does she handle Eli.

You you don't prejudge, what's really almost it so a dog in the pool.

Look I'll show you exhausted the children's doesn't pool.

George You said next year comes out here.

Hello to Holly that's sort of the door yet.

Sponsorship teens off a bushel gaucher currently you'll show the piece part.

So it's a function of new user registration.

The entire third quarter H E B it had an impact on our business.

However, we believe that they'll go back moves and the effectiveness of our business model remains unchanged, which was proven by many of our key performance indicators.

Firstly, our monthly active user numbers remain relatively stable with the crazy I mean, he can go do this quarter over quarter.

Secondly, both user activities and engagement on our platform, which is represented by <unk> as a percentage of Amelia and thought about use of inclusion rates remain stable.

We believe that the fundamental reason for the effectiveness of our service model, which was built and you find that with mobile and native to compensation and direct type functionality over the past seven years and I truly believe legislation and nobody would want job seeking recruiting service to our users.

Especially for those entities.

And the long tail job seekers.

Absolutely. So I know you talked to perform for them in many cases.

Okay, and then just all the shots so it seemed to him.

Yeah.

We don't do a child well known credit on this it won't go up.

Well, then you could see them up so yeah you qualify it.

As you can tell you.

Sorry, the cohorts you won't go to school.

Women, yet because you don't love him.

Would you want.

Hello, you'll put up off would you what women come down yes, that's it.

You just ship them until the fall of next year.

And Tal children don't Chi Chow.

Well, we'll go that's going to go there yet.

Oh sure not yet for somebody to do that.

So you don't do it all day, yes, sure sure well men Kolar conducted two.

Two ships and how long it will go down.

What.

You tell me you'd see chipboard. So so much what are you doing.

Yeah Jess issue.

Well then to do all of the sudden.

Cool.

Yeah.

Sushi cut out you go cool yourself.

Your daughter, Foochow, Georgia, who I'm talking to.

So I'm going to have somebody that goes into it.

She says that Chicago, who you show me ideas to the Haynesville. So what's what are you doing.

You bet.

You don't do a lot of bundle because she.

So you thought you'd be a so you sell each year.

So as you can go with it.

She has all of the Eagle Ford and the leap year.

It doesn't tell upon do you see it sort of sits in the Arkoma sure question too.

I will briefly share with these efforts we have taken to go stronger suspension period for me was a relocation.

Already in July we immediately initiated our business optimization program, the cough, which is to provide better service to commercial customers.

We also have long standing existing user protection plan, where are we focused on two things.

The first one more thing on job seekers, who have greater walking.

Our longer job seeking cycle and the higher job switching cost.

We devoted more resources to support head Hunter advisors, working together with them to better himself didnt like the secret.

Second we launched and project wait to help those relatively these are the ones that do recruiters and job seekers in the market with further opportunities.

Leveraging powerful support from our recommendation algorithm and industry 15, we are pursuing the needs of the bilateral resource allocation among job seekers and recruiters on our platform.

College students and more in the Microrna until twice I use a group who benefited the most.

Oh, and the Labor's not only improve our service capabilities like Oh God.

Our key competencies.

It has to work together.

Useful to ship well means that Youll pardon me all the time.

Punch off onto the lithium that.

Joseph London, Hong Kong yet.

Well then just you called out that so I'm sure for you at home that Youll ship.

So those are for you there so that it can be so she she's actually so.

Right.

Woman she didn't pencil tuned in and should show some jewelry is essentially same.

Jim do you ship with Allergan.

Judy.

You watch how do those yet.

Well my Oakland triangulation G schedule, but aren't jockeys with total.

Shannon Sharpe and Joseph.

Cool.

<unk> drilled yet.

And you use it.

Well you were.

Talking to Anja creep shimada chooses impact.

Meanwhile, we have achieved the progress one of our close they took a development area.

Blue collar service.

We continue to put in like the one produced in the us.

So by sector, resulting in its revenue contribution continuing to increase.

We also have begun to actively explore the manufacturing sector, focusing on making comprehensive improvement to a job posting of education and the governments around the theoretical intermediaries optimizing our blue collar job seekers.

Aaron.

We are increasingly confident that through our selective and classified and management of blue collar intermediaries and our continued investments in technology and offline reputation team, we will create a safe and reliable job seeking platform for blue collar yoga.

Well, maybe you don't probably total clean kind of unchanged, yes sure woman.

Well remember I shouldn't shock unchanged with Hyundai.

June quarter NOLA should go to ship.

Gisele woman that she has on us and so you start there.

So he told you about the judge that she is right now.

Kitchen sensors.

Yeah.

Yeah, George Holmes.

Freedom culture, one that you'd be talking.

On the simulator.

And it.

You always Charlotte Jones.

G box with whole foods.

Well, Michigan, Tennessee, pulpwood shoulder to the armchair quits yet so you go well it took them some kind of assume each year.

We continued to invest heavily in our platform security infrastructure.

Offline secured numerous inquiries Shannon you Richie have extended to cover 50 cities.

Combined with our new algorithms, we are able to verify the authenticity for more than 90% of our enterprise classic.

With our increasingly strong crack down on the restrictions of nonstandard oxide recruitment situation. We have in fact to maybe do they use it sometimes right.

We firmly believe that protecting the safety and parents of job seeker.

<unk> online platform.

Well it kind of sweetheart teams seem to live online fashion tops.

Well, thank you Keith.

Jim Guar Bean curd sure your thoughts to go home.

He used with whole ship, well manage our hot and cold water offshore.

You could see in Q2, you see that you aren't yet.

We're going to use the bulk of the party Buckley charge offs would you answer.

Football who's on the future.

Just your own book, So you didn't really even if you put them on.

So should you a piano.

Certainly.

So do you get from that.

Got it so you show up with it so again they told me.

Now do you think you guys should either Toyota Osha QAD Aldo.

Well, that's where he or she is in the swap gratitude I should get close to that.

That caught us about what are your views.

Would you install a ton out of a total okay.

Sure She's all of them.

Sure on the leap day equals to the challenging you shoot a doctor.

Let me now talk about the ongoing progress of cyber Security review.

We are actively cooperating with the regulator.

Ongoing patients.

Some time, we have strengthened our foundation on data security and privacy protection.

Accordance with a high standard of the industry as well as the he always have believed in laws or regulations on data security and personal privacy protection.

This work is extremely necessary for internet platforms in any field.

Okay.

The building of these kind of core competence.

So extremely necessary well enterprise truly do responsibility for users.

So that would keep going matters and responsibility.

Uh huh.

We can confidently say that during this period. The company has not only match the haven, they've had security and privacy protection, but we have also greatly improved our capabilities in this area.

I believe these abilities will create sustainable value for the company's long term development.

Well its lindsay for Covid singular towards them.

San Diego Sugarland, so shanxi for legal London, but yet people about sheet.

I assume that you go downhill consensual you launch into and talk to you Dr Leal, who syndrome.

And you go pushing promise you that.

Also the general activity that shouldn't change.

It's useful detail.

Juncture you go poodle.

I'll.

He's always here in Chile.

Chile.

But she had a firearm talking about judges.

Well timed it does tend to live shows you $2.

I'm sure there will be all for you either.

Well it seems without kind of woman sorry on moisture hurts us when the leader Yochelson G suite with all of you know so well.

Woman does its usual transit.

Well it shows realtime data doesn't play it's all walks up here will go up.

Seven well it turns out.

Women to Max Eugene.

Here you are sending letters he's called her the first completed important carried out already.

During this call that we had been under the private securities with you and we're not able to grow our user base.

Under such a special situation as a public company.

Have always been committed to leverage the power of technology to take their social responsibility and to make a valuable contribution for the development of individuals and the clarity of enterprises, we serve.

I am Kim both security believed that this kind of in terms of enforcement is necessarily any meaningful.

I can see clarity that the effectiveness of our business model and technology capability continues to be validated.

The recruitment and training of our technical team the credit team and sales team is still go you steadily and now we are full of confidence for the future.

Well the pulls on Georgia, Judy She's allergy and women go through as CFO feel we've talked about yourself, how would you too sir.

Is that I will turn to our CFO.

A review of our financials. Thank you.

Thanks, Jonathan and Hello, everyone.

Thanks for joining our earnings call today, I would like to keep a brief overview of our third quarter 2021 financial results and then I will discuss our outlook for the next quarter.

Before I begin. Please note that all amounts are in RMB and all comparisons on a year on year basis, unless otherwise stated.

Our performance in the third quarter once again demonstrated already effective business model.

Improving leverage despite the suspension of new user registrations. Our total revenues reached RMB, one 2 billion in the quarter.

100, and a 5% year on year, beating the high end of our guidance range, all recalculated cash billings increased by 62% to RMB, one 2 billion.

With online recruitment services revenue accounting for more than 99% of our total revenues.

We are pleased with the rapid growth of our enterprise customers.

Which reached a new record of 4.0 million in the 12 months ended September 32021.

Moving on to the cost of five.

Total operating costs and expenses were RMB $903 million for the quarter, an increase of 62%, resulting in a positive.

Operating income of RMB 311 billion.

All of our cost of revenues increased by 125% to RMB 154 billion in the quarter with gross margin remaining robust at 87% sale.

Sales and marketing expenses increased by 47% to RMB 416 million in the quarter Creamer.

Primarily due to our increased her to come in.

Tenants the brand advertising activities. What is noteworthy is that our sales and marketing expenses represented 34% of our revenue in the quarter.

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Pinpoint 7% percentage points year on year.

Which was partly due to our continuing improvements in marketing efficiency.

But also.

But it was also.

There was also a result of our reduced marketing expenses as we continue to be suspended from accepting new user registrations.

Research and development expenses increased by 50% to RMB 209 million general and administrative expenses increased by 84% to RMB 123 million.

Both primarily as a result of increased headcount and share based compensation expenses.

Our head of Com for R&D and sales continued to grow sequentially in the quarter.

We are firmly committed to continuing to invest in technology and the top talent to further enhance our core competencies.

Our net income reached RMB 286 million in the third quarter compared to RMB 33 million in the same quarter last year.

Excluding share based compensation.

Our adjusted net income was RMB $385 million in the third quarter.

Translating to adopt it on net margin also.

31.8%, representing a 23 percentage points improvement.

Our number is third quarter and showcase the healthy on a robust margin profile.

Our core online recruitment business that we believe.

Our business achieved as our business matures in the future.

Our net margin.

Net cash generated from operating activities was RMB 269 billion this quarter and as of September 32021, we had cash and equivalents and short term investments.

RMB 11 9 billion.

Our cash reserve gives us great confidence in our ability to execute our growth strategy, which we believe will yield considerable return in the long term.

And now for our business outlook.

For the first quarter.

The last quarter of 2021, we expect our total revenue to be between RMB 1.02 billion RMB 1.05 billion, representing a year on year growth rate of approximately.

58% to 62%.

The cyber security review has had a real impact all of the revenues.

As revenues correlate directly directly to our users.

The guidance for the next quarter is based on assumptions that the reveal will last.

At least till the end of December.

As Jonathan just mentioned.

Operating data shows that with steel.

Healthy user base and the healthy paying ratio.

And that all work.

Greater customer retention and the ratio also remained stable.

With the business at a monetization model still effective we have place that we can be back on our previous growth gross Clark as well as we resume our new user registration to you in the future.

That concludes our prepared remarks, no we will have to answer questions. Operator. Please go ahead with questions.

Thank you.

As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced if you wish to cancel their request. Please press the pound or husky.

Your first question comes from Eddy Wang from Morgan Stanley. Please ask your question.

Total you go Oh my.

Oh gosh, yeah, just a little to what so Shan Shan Constantia chigger, essentially though the year to bounce around.

Cause I should say a J.

You won't have a potential casino, who doesn't want to shop and delivered so much how do you know yet.

What well oiled element T D go in tissue Guangzhou Chengdu from wanting to teach them the dropping of Hollywood Shonda.

I thought you said a sudden pop a sensor into it you said you'd look treating Bob Tom and took a thoughtful country affecting that Jim good to Jupiter two so Sheila you wont quote that's true.

Did you beat out rule, which you should female to modify anti woman to go solo for sure Xiaomi, Sean Ching jaw charts on Joseph a.

Sure Dan icon, you'll milk handoff, whether you'll see a shallower I hope you're all road a homogeneous chopping hanmi you can challenge if they wont be in shock publisher, Google Com mania in the hardwood kind of changed your high mail you've got found challenging there you go.

Tun joke around took a church or Jay Xiao Ping Pong men to achieve true also with Usher in shop.

Go back to you Doug Econo Shiga shut went through I just saw a to make sure that those all women's yoga studio that you got three inches just refining.

You choose you shouldn't that Shire had pizza chain to open a quiverful Jacobs engineering, who the two.

Well I'll just show you a J.

Just a quick so you take a tissue while I was just a touch on much more than just what Mr. Michel and then Jacob Qingdao Chongqing Chi tool to a degree.

But what kind of agenda finally shot thank.

Thank you for taking my question I have two questions. Firstly is about the macroeconomics are.

Slowdown in China do you think there's any impact.

On the and on the overall I'll lateral cuomo's document and if there's any impact.

Our business in the fourth quarter and in 2022 and the second question is about do have any visibility of when the cyber security.

Acacia and will be completed and Oh, wherein we are.

Likely to resume Iowa, new user registration.

Timeline. Thank you.

How does Susan Lynch here.

Ah well shelf without the argument here.

Well I was just in charge of muscle play a teacher, Florida ashamed Glenda.

Pushing down so much on the playful, whose militia mail I mean sure the.

Shall English in India.

Socialize a woman until the shirt okay Ted.

The change we're going to show a lockdown gesture Eagle sure Chi to pay the full adult she goes home.

Hi, Joe Shea woman, Angola, Hsinchu tied up in both onshore and do them in their lead yet.

And then John Shaw.

While lunch yet to go.

It's about five minutes.

Tissue Thiago.

Brian you know Diego.

Hello World Society.

Oh, Hello first answer your second question about when those cyber security to really finish all we kind of assume all of it.

Exploration as a company that doesn't have a clear timeline to date.

But I'd say just have just mentioned there are two things.

We can do the first one is we are cooperating actively cooperated with deliberate intent to maintain a proactive communication.

And as soon as possible.

That said we are.

Under the supervision of the regulators.

Activity to enhance our data security and the personal privacy protection. According to a recent nishu.

We showed a loss.

Nation.

Great.

Eagle then what's hopped off the dock.

Xavier.

He told me in Chicago.

And feel even south of that.

The theory.

Yeah, that's the readings fajita.

She's put up.

A highlight to you Glenn the excise duty shop.

Congress will show the shallow each year.

The EBIT.

As a team you shortly wounded.

Or is it all tomorrow she came on got Hulu.

Year and here you go <unk> still got it.

So you shouldn't we show each year could cause there.

Parceled out you go right.

I'm, a digital Michelle's got one system.

Somebody should be done you got charge isn't it.

Uh huh.

Well, what they told me that he can go along sedonia.

Oh with Jaguar I didn't hear that.

Oh, Yeah, Yeah go Youll suppose you go below that you.

Sundar.

What's the ones he's on digital a chunk to each other.

Without the use of visa.

Lululemon, Bob will go up all the usual format.

Long Dougherty.

Yeah.

Bob on the tree.

No most of us on the $10 behind that.

Conundrum that showed when you sit down with us a silicon fab.

How should we look for that.

Women Paula you change the people onshore, Texas along Dougherty.

How should I use Obama trade dollar yourself.

Well most of the funds yet crinone in another few months to sit down.

She saw probably one or two months or what you wanted to.

First of all I'll need your thoughts.

Yeah.

Winter weather you got you got you wish you would show it yet.

Literally the GT.

N D.

Why do we put on SaaS and miserable.

Does that leave ourselves.

Challenging cyclical.

Yeah.

Okay.

To answer your first question.

The macro economy would.

We'll definitely have a impact on our recruitment videos.

Theory, it's 90, but I have to sell them.

Hum, which has lots of small and micro enterprises there.

Millions of companies and hundreds of millions of people, which are run companies nominee Harris.

More than a penny for people and for us more than a micro enterprises that they aren't they.

Characterize is that the macro impact on the company is ready to smoke they are quite strong.

We want to win in this industry for 15 years and I have seen the financial crisis in 2008, and the market has cooled down.

I I need to I use like someone to say my theory is that if we.

We put together five voting.

But put in bonds and we use about eight pounds.

Should we take that.

I need Oh together at for that but we put together when you sell them somehow in boss and we used the same it should be done that talk to come home. Both my my broke and the rest will be safe.

And that's the difference.

Economic Richard compromised Luis Pea.

And she patchwork and economy with compromised.

Microenterprises, so when the macroeconomic goes down.

Later, I will be on Hawaii.

Oh, Glenn you will Miss was that assist Ohio down there in Chile.

He goes.

Before it was a tissue that you'd be shocked me.

Sure. So as you lead with a young.

Holly in Sao Paulo.

When you get into a median dor, Cindy sound onto a little bit.

No not at all versus home and we're pleased with the heart.

How do you go short into Appalachia readership of sugar production quite a bit because you were there you go yes, yes.

And for the market.

Yeah.

I have two more appealing the first months economic economy continues to go down.

Our industry really cheap.

It's more of a micro enterprise kick kick off the majority and that there is such a level.

Tonight, so when the market can recover.

They're going down.

Be smooth.

Whether it be our the.

Glen Gate, a pretty integral part yeah, I should point out here that could be.

As you well mentioned that even though.

Sure take care.

Yeah.

Yeah.

Lagging intolerant.

I should use on changing your go to talking with you all.

Yeah.

Okay.

Call. She was she got so hot food.

He is a hot dashes and what have you the.

Clearly, they're not blue.

Okay.

Sure you bet Cindy payout to employees on the floor generally gauge crescendo Sundar Hartlepool quite interesting to see what that.

Each of us.

Not what it should be.

So with the platform.

And my personal opinion is that combined with the industry and overcome ourself, because we are offering a salary.

Okay.

Not in a micro enterprise is much better.

I'm ready to recruit or spending suspending our pack them quietly made to go for one month and no more than several hundred RMB. So we have the best value for money.

Yeah, you're right in the current situation your window of macroeconomic goes down when people when people want to have them there at recruiting package.

Platform better value for money you can still attract a lot of users to pay for our salary.

And that's my opinion for the question.

But I'd say, it's also Hugo.

Sure.

Your next question comes from Wayne <unk> of UBS. Please ask your question.

Hey, Joseph.

Oh gosh, yeah, Glenn is on schedule with ex U S.

Oh, well the digital ones.

Sure Glenn lithium Jonah.

Well on the launch of Shanghai actually should I traveled all around.

John.

Some of your mill truly adulthood.

Got you.

Yeah, Tim use damage as I showed in the human.

Sure sure.

No Mike.

Oh gosh, you cancel them.

Blackout Schulman Sean.

Nomura.

Sounds right.

Oh, you don't go from John that you.

You mentioned that.

And on your Shanghai.

How should we deal.

Does she want more truthful and non goes I mean, actual wafer they'll find a woman union.

Doug I was just something Yonder Oh.

Could you tell me on the call control.

Michel you will not do it.

Linda.

Sure.

Well it wasn't mailing them yourself.

Yeah no it does.

Chinese Olympian.

Thank you management for taking my questions first I wanted to ask about the competition side given that your ability to grow new users.

<unk> impacted in the past few months have we seen any changes in the competitive landscape in the online recruitment market and in the meantime, what are the areas that management has been focused on in order to maintain your competitive advantages in the longer term.

And secondly, just on the user growth outlook for next year.

If we assume that the new user growth can be resumed early next year, what what what would be your user growth target for the next year and associated with that what what is your user acquisition strategy and the impact on the margin and the selling and marketing expenses next year. Thank you.

Thank you for your question I would have to answer your first.

First question. The first part of your first question Jonathan.

At a more about what we have done with the.

With the competition.

So regarding to the competitive landscape. We think that's from third parties data you can see that Oh basically in past Oh.

The past quarter or a couple of months there was no big change so our service our steel huddle peers with largest.

Monthly active users and daily active users so our.

Our GAAP.

With the peers is still large enough.

And.

So you can check with some third party market research tracking data to find and find the fact and in terms of the.

The user engagement the level like time spent like daily.

Using frequency.

We are still highest among peers. So basically the company is.

Still in very healthy situations.

Even wait wait perhaps suspend data or have been suspended or with new user registration during the past quarter and thirdly regarding four hour.

Our user retention.

Our own data shows that the.

We're we're not our users were not affected by the cyber security Arabia.

The user retention ratio keeps very stable and healthy. So all of those shows that we are still very healthy and robust.

No very good situation.

Yes.

Although one could argue that to China.

Okay.

Got it.

Uh huh.

Hey, Jason Child syndrome syndrome, Shiga woman the garage at the Guangzhou.

That was it was long ago, a handoff, which I shall each highgate.

Should you saw what challenges you could easily do it.

So women's home.

You're going to go up if he.

Oh for launch for <unk>.

Yeah, so yeah.

Joey can you lie.

Cause I wasn't sure how to let you go calls with some government CFO.

Not much I will you put your hand.

It was crazy and found that some doctors.

Especially about you and combat she told US you suggested.

Sure.

I'll send you you got to do something.

Hum.

Well, what about you're about breakeven from that to suggest that something Joe.

These are not that slow walk somebody through cancer.

David Yes, you did.

Yes sure.

So that should be on track for you who you sanctioned bulk was on the usual detail.

Alita.

Jugal Jan Schott.

She did a total well unless you've got a HUD deal you'll show up actually.

Are you a chance you don't even see the gotcha.

Yeah, Yes, it came out to the swap.

So you don't put it out there you know what are you doing what are kind of all out again so.

Sure sure sure.

Sure.

Now most of you don't need to show that even without one Paseo loungewear eudora and you'll just have their children don't you can chop.

Who would have thought a lot healthier congrats again have forgotten.

So you don't really you do show what that change was also up I know that.

Got it.

It's only it's a guarantee at chop go find somebody to go I will do the trombones, Jaco send you your solo yet John Caulfield solution children.

Hello, gentlemen, budget here and talk for that.

Well, we talked to you wouldn't go harder pool seemed to go hot and yes.

TTP room in solar.

You don't need all that food Pincock Allen Eugene Youll know about it.

Jean Hoffman comes in how you choose to go harder, especially in children.

Fisher either wishes that you pay it.

Saying that she says it well.

That resulted in Chicago shampoo, Julie Kim doesn't do so the children.

We're talking to them.

The ones that you're going to change.

Three children.

Kind of change your you harder to draw that Jim Hong Zhao.

I would tell you when you do entirely on it seems like in the lateral with Hana.

Turns out of childhood. So you Gotta do you don't you need and see it.

I'm doing yoga was realized with having that you wait until you go through them and then you've got voice out.

Yeah, Oh shovel.

No no.

You'll chew that evens out.

So don't move until you do show that going forward.

I hear Ya Chu bank and other charges.

People don't know what their jobs.

Susan George or they'll go holiday or something going on that you do them a little sheep.

She I'll tell you on children.

You're talking about message here.

Hello, Dr. Julian.

19 has worked tirelessly on that it seems you judge it sounds just how will you live.

The children's gummy issues herself cool you Didnt really I should again, yes, the woman's yahi gypsum.

Downhole, it's logical manner shortly gotcha.

Bill and Tom Judy Judge just solely judge lifetime.

So I'm gonna get into <unk>.

So you should see it when you deal should Orient you Yeah sure George related issue.

So it does seem that you're that you're going to like do you agree with this again, so it sounds like a fool.

Children's health.

Or what do you need sort of plays into that.

Good luck woman G T sort of Google was I saw the utilities are tied to it.

Yeah.

For your second part of question doing sandbox appeared to be or what it would have done with them into big box players.

For example, we have I think we have providing all the salaries at husky.

Yes, four months 90 days and do it all at that time, we had been growing very fast.

It sounds like if I had $100 about puts us into a lot of on the gross.

Let me first sector and the things we cannot goes how they use us for the entire country. So I put $100 in the infrastructure.

So what is infrastructure.

I have two powerful he was the first lessons we've continued to improve I would say types of currently in personal privacy protection, we are improving and are investing heavily in technology in exports in our overall system and that.

And could I did it for several months, we will have some autonomy and the group have do have long term value for our company.

I'm parties under yoga and.

Who will be that easy to move from our platform. We identified to kind of look at the first one is for those who will have a longer period. So when they cannot find the jobs don't go and they they might have a longer Watson are working together on that higher one which.

Cost and Mike might have a higher income. So does he have dropped because as I. Just said, we have put a lot of efforts and resources to work together with both headhunters to provide better service for those thing I got to play and to improve their internet.

Is that kind of kind of lose a group just so subsea Hudson recruiters who led.

Glad to live with that as long as it is.

In the market.

And Oh I'm sorry.

Circumstances, when we are growing very fast.

Well not a focus on our efforts on those people.

And but currently we can focus all our resources and all our efforts.

And our team has a better position to provide our service for those people. This is.

Project quite and we do have some substantial progress on that part.

Funding things that well those two kinds of people do you have some value, but for the senior dogs, who cares if we can provide better service for them. If they have a better ecosystem on our platform. So they can attack more enterprises, who have a need for that kind of thing I've got to correct.

Is that kind of group group of users. They may not have a great economic value at this moment.

I had two babies along COVID-19.

But we believe that as a public company, we should show them more social social responsibilities put out for them. So they have more social value. So we believe.

If you do that.

Oh, Oh Oh.

Our neighbours during this period should have both economic and social values for our self fund yourself out.

So that's my uncle.

Oh, so you're there.

To your second question.

The user growth target for next year.

This question is hard to answer at this moment.

Because we are not clear when they will be allowed to grow our users. So.

We can only do it oh.

They were in our normal operation.

So.

It's.

I think so.

It is not.

Not not today, but what I can say is that the.

From the discussions above you you can understand that our business model is still valid and very effective and during the whole third quarter will still serve the largest groups of jobseekers and employers and users maintained a very healthy based on the level on our platform. So they like our platform.

And.

Since the beginning of a cyber security review process.

You were in the past four months.

There their work.

Oh, the registration like records from <unk>.

17 million users. So one 7 million users as we recorded so that was a huge number so a lot of users they want to register all platform, but they cannot do it. So if you were in the past.

A couple of months so what.

So the only thing that we can say at this moment is that once we're allowed us to grow our users we will do it where we'll regain over last of users at full speed.

Yeah.

Thank you management.

Your next question comes from Colin Lee of China Renaissance. Please ask your question.

Hum.

Excellent.

The wind machine data litigation claims.

And children J D power.

Oh in Malaysia, India called out John you called.

No. It wasn't always has it changed at home you know, yes, it won't and point out sort of other agenda, it but Jamie grocery shop, a woman luxury go show more shale, but she thought it.

Not much about the Huntsville pretty challenging yourself with it.

Darla Lindsay issue why don't you walk.

Or why shouldn't shoot me, an E cheap or not.

It shouldn't be that was coming out of that she didn't get in touch with Jeff I'll quick notable woman does take a CMO who has a high civilization VI will mail mainly from that she toddler team food that you that you can do that's for sure.

<unk>, Saudi drone Fernando Michelle I don't know, what he was saying things out.

So I have two questions for management. The first one is regarding the the potential opportunities from a senior job seekers.

Which we normally call dog collar workers.

I wanted to ask if there's any difference in terms of our revenue model from this out of my incompatible with other parts of the business.

Other question is about.

Well, if the cyber security reveal continue to roll that out to the fed.

First quarter next year.

We have made the company to meet some very practical.

I mean, those such as Chinese new year, and basically we are all in place, which so far that you've had a.

New user acquisition.

Just wanted to check if.

The management has any other measures.

Can two commentary such an active impacts she had on his home.

Can you live here Oh.

The killings are.

Especially I need I think you should question when Mojave either.

So you're assuming that you go through.

Squishy this amount of solar Marsha children's you fit on that show you a woman kind of neighborhood.

So just yet.

Senior children wouldn't don't yield from Yamal LNG.

We have clear control should of course, when you're when we're trying to enable digital starter homes ship.

If you're a woman you don't you need that you also had a Ford Honda Ruocco harder pool did hope of when you'll have a cohort of who Babu. He named Julian tells me enjoy the gel dual well mention Georgia shop, particularly sometimes shoot who came with it Johan.

I hope that's due to a tough woman salt Lake.

Absolutely you guys saw some Muslim said yesterday, it sounds that yet.

Did you have some damage although in Egypt, you said.

But would you have a ship.

Well shoot charging him, but again, it's a woman Judy yeah sure.

Oh man woman that the audio of hard times. It. So you just so you do have different creature she classroom.

So that you'll meet with so much you quit.

Well Neal you showed a lighter so most of the puzzle.

So the woman Kingham mail seamless between natural that person a woman actually good Shannon senior counsel, well know Reuben until you go yoga for more <expletive> generally robust shipping Johnny you go sit how intensive new consumer model I'm a woman yet you deal with you what Hollywood Chaouchi without you go job growth.

I, probably see them all as you know revenue model. So you come out with it so I guess, it's all Jeremy laid off.

I hope you are going to tease apart.

Joe go Alfredo.

She is a woman and puts it all goes to Montreal equates injured, although Joshua and ensure the cause of that.

Joshua and ensure that your pop because it's that couldn't get you at all or not.

We're not pulling them towards a single part number and indeed, all the doorway what lithia they see it's a sugar each other too wet.

I don't think she thought because I don't like Lockheed.

The trend year to hold she says we're talking in Chicago, Milwaukee. So what are you getting encountered oil and gas should she just see each other too quick.

I'm a woman the digital shift.

Joshua unusual Oh, Nicholas agenda, and putting them she's going up with the hot well month email you know what she told you go that she was on you were talking about getting for the bathroom not firewall egencia switching and that gives a sense that well it shouldn't I mean that.

So how about just with Jan Schott, Patricia homes up Shouldnt be actually you saw really you can't well known cause you quit pushing on some jobs, where you put your other one.

The bulk of it should that should help wholesale women's Johan you with you on that I agree with you.

Sounds you don't win them all ship. So how do you what guys listen I want to watch him up so he can talk about what she needs in Canada outside of Germany.

Pushing the Olympia.

Yeah.

Uh huh.

A question regarding the Colorado.

Do you have a very sound understanding of industry now we do refer to our senior Gupta of course, that's blue collar.

And in terms of what kind of revenue model.

That includes our team do you have the same question, which is how we contact them kind of service.

Do you have a conference at our internally our first one country it'd be around focusing on how to provide better service for those senior job seekers or the head hunters border enterprises, who are who are post dosing.

So I'm, hoping to optimize all of our ecosystem.

One is that we don't have a clear revenue model I felt now that.

In the past.

Mr I'm going to use that all those enterprises recruiting I think I've got two questions. They protect us and send the products. We provide are currently and this is continuing.

Continuing to happen and before the additional revenue model.

Me.

Don't have a clear clue right now how can we have a belief that we can provide a good service to all of our users.

What we have done for the past several years, we will create a price through our value to fund a new revenue model.

And your second question, which is you know having to answer.

Regarding one way.

The redistribution.

If we cannot it seems that new station after the Chinese new year Festival.

And regarding the Winter Olympics, which we call them are regarded as a marketing event opportunity.

Normally the screen back to us after spring festival in the peak season for recruiting if we cannot acquire.

I'm glad you do that by then.

We currently I'm not thinking of any new ways to acquire new users.

The view was not being used by by them, but what we will continue to do that I.

Think of that clearly what we will continue to do so we are continuing to improve our infrastructure.

And the one day.

Yoga registration.

I think the way we are not in.

Going back to when the markets are very.

Aggressive way, we get doing it properly.

Two our survey.

The two hour service abnormal and that's my parents went out.

Okay.

When you can go into.

As to the time constraint that concludes today's question and answer session. At this time I will turn the conference back to Wednesday for any additional or closing remarks.

Oh, Thank you operator.

And thank you once.

Thanks again for joining us today, if you have any further questions. Please contact our IR team directly or TPG Investor relations. Thank you.

Okay.

Ladies and gentlemen that does conclude our conference for today. Thank you for participating you may now all disconnect.

Okay.

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Sure.

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