Q4 2021 Kanzhun Ltd Earnings Call

And so are in a listen only mode.

The speaker's presentation, there will be a question and answer session.

Today's conference is being recorded at this time I'll like to turn the call over to MS would they want head of capital market and IR. Please go ahead ma'am.

Yeah.

Thank you operator, good evening and good morning, everyone welcome to our first quarter and full year 2021 earnings conference call. Joining me today, our founder Chairman and CEO , Mr. Jonathan Pong, Joe and our director and CFO , Mr. Phil Yoo Jong.

Before we start we would like to remind you that today's discussion may contain forward looking statements. We'd have based on management's current expectations and observations that he is well 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.

From a cultural you'll 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 so it definitely show a non-GAAP financial measures and a recalculation 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 I'd thought dripping GOG com.

With that I will now turn the call to join us on our founder and chairman and the CEO .

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So our culture.

Gotcha Gotcha.

Hello, everyone welcome to our fourth quarter and the full year to date and do you Wanna Earnings Conference call on behalf of our entire company I would like to express our sincere thanks to our users and investors for your trust and support.

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Let's review the performance for the fourth quarter first the company recorded GAAP revenue of RMB 1.09 billion, achieving a year on year growth of 69% during the period exceeding the high end of our revenue guidance.

Adjusted net income excluding share based compensation expenses reached RMB 315 million and we maintain our profitability over the last three consecutive quarters. While the first quarter is not a traditional peak season will turn out as recruitment market. We successfully maintained our stable performance data through our relentless.

To cultivate our abilities.

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Yeah.

Despite the challenges the company faced throughout 2021 we propelled our business forward with improvements to our key performance metrics.

Our accumulated to RFID users to more than 100 median and our GAAP revenue grew to RMB four six.

6 billion in 'twenty, 'twenty, one representing a year on year growth of 119% our calculated billings reached RMB 5.0 billion, representing a year on year growth of 19, 8%.

Adjusted net income excluding share based compensation expenses reached RMB 815 million, which is the first time to achieve a positive full year non-GAAP profit since our initial establishment.

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Johnson Michelle.

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We made excellent progress across many areas of our business.

Let's start with the overall improvement of the company's service capabilities of our core business platform, which is to enhance user experience and provide more efficient job seeking and equipment services.

We have increased our ability to almost day users in-depth knees through our relentless efforts on the product and technical levels. For example, we found that many users generated new the mouth seeking for cross industry across professional drop opportunities due to changes in their personal situation families.

Fluctuating market conditions.

Optimizing our recommendation algorithm our strategy combined with our exploration and understanding of Korea science, we have been able to present more users with more abundant and at reasonable compensation results and further improving user satisfaction level.

But he put users are able to achieve more with less irrelevant interruptions.

As a result, we are pleased to see that even with a special for new user registration. Since later half of last year, our key indicators for user engagement and achievements on the platform of steel remains stable and our eco system and still remain robust.

To give you. An example, the peak a year following the 10-K 22 Spring festival exceeded the number in the same period of 2021 which is a record high and the proof of our strong user thickness.

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No matter how long the judge Joe for you what are your thoughts.

Yes, well my Attritional.

Joe Fink, Australia.

As I have mentioned in the approvals earnings call in the absence of new user registration.

Our focus on better serving our existing users what I, just said about developing a deep understanding of and he says to me is a fundamental aspect and taking good care of roughly 15 users.

As you can see all the strategy has been proved effective.

Along with the continuous growth of our platform seems or base, serving our existing users will create increasing values in the long run and therefore, it will be a very important. So we are and will continue to do so.

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Hello Ghansham.

200 countries.

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On the operational level, we continue to cultivate and refine our service is different user groups to better serve the white in Golden Colorado users, we have broadened the source channels for the job openings on whole platform. We have campus recruitment cooperation with head hunting consultants and et cetera, so as to provide.

Them with more job opportunities as well as the powerful and they're sophisticated job seeking truth.

Moreover, the proportion of a pie income users among total active users on our platform.

Can you to increase this is because on the one hand, driven by our refined operations heightened come users' engagement on the platform has increased and on the other hand, the salaries of many returning 50 users have increased folding them into the high income. He was a bracket we are sincerely happy for them.

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Hi.

Sean.

We also made progress in the blue collar sector improve its culture as some investors have asked for our views on the phenomenon of irregularities entities honest tea in the intermediate nanometer agencies in blue collar recruitment for manufacturing industry and love to share oversold.

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The solution is to protect the interest and the feelings of the job secrets to reduce the number of mobile package from for workers.

Walker's manufacturers platforms and agencies into two thereby platform standing solid suddenly we saw walkers and then the manufacturers to jointly with the letter.

Agencies, and fast changes or moves up again.

After our efforts many top agencies have acknowledged our roof, which is established under the premises of protecting top secret.

And today, we've got enough.

The NIM for this internal project, which we call it high low project. So one high law, which means in English is just a little too Mr. Tong with Bay club.

Because my sense of what is believed to be the first person to have effectively regulators the intermediary market to love. The agency is a mine with dignity.

By leveraging our technologies combined with men menu, where reputation we have established a mesh network covering more than 80000 agencies, leading to the establishment of a new industry service rule and the more transparent and to secure the product model.

At the same time, we have leased at high quality companies and positions provide by good agencies that have been verified and screening by our offline for green team I've kind of selected.

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Throughout.

Throughout all these years, we have let me say your collateral teeth and dishonesty amongst blue collar agencies in the manufacturing industry and the hub they have put to job seekers employers and cooking platforms. We firmly believe this phenomenon can be changed we will continue to work on how can enact.

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Sure Yeah exactly that at all.

So we'll know by chance or should attrition.

Now, let's talk about the improvements we have made to our security capabilities on our platform.

We believe that compliance with the law is a very basic law of our business well the willingness and ability to protect users representing ceilings.

He put it in another way is the growth from enterprise capabilities to make money should be lowered them subject to and lagged behind its ability to predict protect the users into service, we must grow our business based on our capabilities to protect users instead of putting protection beneath profitability.

This is our philosophical understanding of the chicken and egg problem between profitability and a user protection.

It can also be seen as our understanding of the relationship between enterprise growth and the use of security, which also represents our spending prioritizing our daily work.

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So when national Aegean culture, being jumped pulled out and put out anymore.

We have greatly improved the security capabilities of our platforms from street aspect.

Solid foundation for our long term and sustainable business development. So.

The first is personal information protection, we have established a comprehensive personal information protection mechanism both in compliance with the requirement of relevant laws and regulations and the further you have to buy the business attributes of our own platform, which we hope will become a benchmark among human resources service enterprise.

As in China.

The second major east platform user safety protection, which focused on protecting that uses nutrisystem feelings.

Here, we have established the industry's first online security team combined with our AI screening and its accretive process, we can't verify enterprise addresses recruiting enterprise relationships and identify high risk positions and businesses in 50 cities offline.

The third is a comprehensive improvement of our data security capabilities, leading to the increased investment in technology and talent.

In 2021, we increased the security related head count by over 750, and currently our Cte related teams have more than 1000 people and will continue to expand.

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We have practiced concerted social responsibility and the integrated throughout the company both as a responsible corporation and at a highly visible public company.

In 2021, the company has taken active part to assist college students and the disabled in job seeking our neighbors provided donations to assist the victims of major natural disasters, and we participated in Greek and green construction projects.

We have been recognized for our contributions we were also named in the five fighting donation 2021 to 500 Chinese enterprises and their philosophy philosophy, 2021, 500, Chinese enterprises issued by the China Enterprise charity for them.

Both the company and I were awarded a certificate of appreciation from the Ministry of Education in China and were named as the 2021 excellent pattern or in the employment of college students for our active actively support outstanding contributions to the employment of college students.

We're also honored to be the exclusive provider of official human resources services for the baked in 2022 Winter Olympics and the Winter Paralympics, which was a moment of great Pride and joy for us as a company headquartered in Beijing is solvent a patent pending residents our employees.

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Whether it's just a moment Dr. Judy.

There are several field, we talked about at home, but how would you call bullshit.

Regardless of 2021 eight years since our establishment in 2022, maybe I'll remain true to our mission and our values as we populate with cybersecurity scrutiny and prepare for future growth.

We sincerely support this.

Sincerely thanks to support from our investors and we will continue to improve the matters, we how it works.

So you have to on a 150 million share repurchase plan, we announced early this month is a testament of our management team's confidence and faith in the future development of our business and believe in our ability to deliver long term value to our investors and users.

Is that I went to two hour sample field for the review of our financials. Thank you.

Thanks, Jonathan Hello, everyone.

Thank you for joining our earnings call today before I begin. Please note that all amounts are in RMB and all comparisons are year on year basis.

Otherwise stated.

We are pleased to close the 2021 with solid financial results in this quarter. Our total revenues increased by 69% to RMB 1.09 billion, beating the high end of our guidance range.

Total revenues for the full year of 2020, you want but cheap for 100, and a 19% gross to RMB 426.

With the online recruitment services revenues accounting for about 99%.

Our total revenues.

Well were calculated billings increased by 24% to RMB 117 billion in the quarter and it was up by 98% to RMB 5.02 billion in 2021 .

Now I would like to further elaborate of the top line.

Which represents a sustainable and.

Quality growth.

As far the way were suspended for news user registrations.

Uh huh.

We recorded strong user growth in the first half of 2021.

There was a 20.7 million newly verify to users from January to June .

Mom, which three 4 million or enterprise users.

Our total accumulated verified enterprises users reached a 14.9 billion by first half.

But Nike a 17, 9% year on year growth.

Meanwhile, to guarantee user experience and to better serve our existing users. We continued to provide innovative commercial product, but to control the pace of over monetization.

If you're getting from all of our resilient model and high user retention, we see that as opposed to both customer demand.

Willingness to pay our welding and paint.

With resolve to a 4.0 million paid on enterprise users.

In 2021 with 82% year over year growth.

A key contributor to our total revenue growth.

Moving on to the cost side.

The fourth quarter numbers first.

Share based compensation.

Cost.

Expenses grew by 25% to RMB $726 million translating to an adjusted operating margin of 34%.

Our cost of revenue increased 89% to RMB $115 million.

With our gross margin remained stable.

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Primarily driven by increased headcount, especially in security.

Personnel.

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Securities kind of user safety.

Sales and marketing expenses increased by six 2%.

RMB 374 million representing.

34.

Percent of our total revenue.

Tom.

15 five.

Five percentage points year over year.

Continue the upward trend of improving marketing efficiency since last quarter as a result of reduced marketing activities during the user registration suspension.

Research and development expenses increased by 31% to RMB.

99 million, primarily due to enhance it.

Hiring R&D talent.

General and administrative expenses decreased by 31% to RMB 19.

19 million in this quarter, which were mainly due to RMB.

533 million share based compensation expenses recognized related to the issuers of our class B ordinary shares too.

In the same quarter.

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Excluding share based compensation expenses, our adjusted.

Yeah.

Increased by 74%.

As a result of the increase.

Yeah.

Our net income reached.

Reached RMB 233.

Compared with the net loss.

The RMB.

2019.

Quarter last year.

Excluding share based compensation.

Adjusted net income.

Alright.

9 million in this quarter.

Okay.

Adjusted net margin of 32.

2%.

Excluding the healthy margin profile.

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For 2021.

Operating cost and expenses excluding share based compensation.

51% to RMB, three 4 billion.

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Operating margin of 21%.

Okay.

The 36 percentage points compared to 2020, resulting from improving.

You can see.

Rich.

Gross margin remains robust.

87% with cost of revenue increased by 31%.

Sales and marketing expenses increased by 44% to RMB, one 9 billion.

<unk> expenses increased by 6% to RMB $822 million.

G&A expenses.

RMB, one 9 billion.

Primarily due to the one off share based compensation.

RMB, one 5 billion relating to the issuance of Crosby share type of or limited.

Excluding share based compensation or general.

<unk> expenses increased by six 8% to RMB 300 million.

Our net loss.

Was RMB 1.07 billion, excluding share based compensation.

The non-GAAP net profit of RMB 800.

For the year.

Net cash generated from operating activities.

RMB 500.

35 million for the fourth quarter.

RMB, one 6 billion for the full year.

And as of December 31st.

21 at the end of the year, our cash cash equivalents and short term investment totaled RMB.

RMB 12 2 billion.

Cash reserve.

Robust operating cash flows.

A solid foundation for long term sustainable growth.

And now.

For our business outlook for.

For the first quarter of 2020 school, where expenses, our total revenues to be between RMB one one.

Yeah.

RMB 112 billion.

Year over year growth rate.

Approximately 40% to 42%.

A further testament.

And the monetization model.

With all of our user data remains robust.

Yeah.

A full recovery.

The growth was already.

That concludes our prepared.

Remarks, and now we would like to answer your questions.

Operator, Please go ahead.

Thank you.

We will now begin the question and answer session. If you wish you ask a question. Please press star one on your telephone and wait for your name to be announced.

You wish to withdraw your request please press the pound or husky. Please standby, while we compile the question and answer roster. So once again to ask a question.

Press Star one on your telephone.

Our first question comes from the line of Eddy Wang from Morgan Stanley . Please ask your question.

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Especially in your singles, particularly.

Based on the challenges.

Candidates for them than just saying that that shortage issue.

To get.

Typically the F. L Y N D C has shortened.

Joe you can give it to you in which you saw churn back then on themselves.

Total dividend.

They've been the kit.

Sure.

How do you feel about it that's all pieces, which initially issued somebody younger.

Sure.

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Sure.

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So we'll put you back to the paywall.

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Just to let you hear from me like I'm, a green shoot.

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What she has done that.

How much of the bulk of what you need to do about it.

Casino platforms behind the box you can found within that you've got you've got some cool, but not what Colin said then our findings.

My question is regarding the first quarter guidance, we noticed that the guidance has been very resilient and we still expect a Q O Q O Q on Q growth. So just want to hear your thoughts on some questions with you that's what's the sentiment in the first quarter.

Yes.

Sentiments have been effected by the macro would miss as well as the.

The COVID-19 related lockdown.

And second question about we have heard that's yes, and head count cuts in the TMT industry, we've been sleep.

Want to know if there's any impact.

From this.

TMT.

[noise] sector and on top of that so what.

And the heightened sentiments of the Smes in China in the first quarter.

The third question is about.

You should have.

Have we.

What have been incremental.

Operation efficiency or the effort we have been did in the first quarter.

Through secured is a very solid first quarter revenue guidance. Thank you.

Hi.

Yes.

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Some of them.

Keith.

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Distribution.

If you want to be.

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She says little pushy, though.

Somewhat.

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Okay.

Alright.

Steve.

So you have to install it.

Okay.

My first question.

The first one first.

Sure.

I would like to Oh.

The first part of every year is a big recruiting because Chinese.

Chinese new year.

Oh no.

No.

Yeah.

Yes.

Yes.

Okay.

Please go ahead.

Yes definitely.

The voice a little bit.

No.

Yes.

Oh, Yeah no problem.

Jeff gave us.

Yeah.

No.

Yes.

Okay.

Okay.

Okay.

Change in China.

Okay.

First of all.

What do you say.

Yeah.

Okay.

We're looking for complete so I guess.

Uh huh.

Peak season.

So what I used to pick two data.

See the recruiting market.

The whole thing.

Got it.

I'll put.

Lots of people, telling you that.

Australia.

So.

So somebody charges.

Instead I'll call them all.

Yeah absolutely.

Sure.

Women.

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Which countries.

Good for them.

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Awesome.

Sure.

So you can go.

Hi.

Well kind of hospital.

I'll talk to you again.

Sure.

Yeah.

And regarding your second question.

The impact you just mentioned that we have seen lots of Internet address Oh.

Come up.

Hey, they lay update please.

Hum.

Yeah.

The economy in China.

Barry I T E.

But for the whole industry wise, we did that the MISO and small enterprises.

Yes.

Uh huh.

Paul.

So some of the Internet.

But we did notice very skinny be contingent.

Yeah.

Yeah.

So hopefully you saw you can go ahead.

Sure.

Yeah on the English as well.

Sure.

Any changes even thought of yet.

Uh huh.

You can go from here and I'm sure we're going through.

We're talking to all of the children.

Yoga Jordan.

All lines that sounds good.

What do you assume that you're going to interrupt you Chad could you juggled here, so I'm sure that's yigal.

That's all conjecture that Shelby.

No no.

Right.

I, usually tell them I said before Youll Egfr yet.

You know about that.

Hum voucher Judy.

Got some hot chocolate children's apparel, we aren't sure when that kind of that shift.

Easier.

I'm sure that many pool yet.

Hi, Mike.

Okay, Yeah, that's what I.

Talking about some of the shutdown.

So by that time, we'll make that.

Yeah.

But that too Jim.

I wouldn't say that too.

Neil Neil Young.

Talking to begin with.

You do the culture in that region.

Yeah happy meal. Unfortunately.

Thank you Doug I don't think you should see you schedule should that youre talking to draw that.

Okay, well I'll call it a few months.

Wow.

Can you talk about the impact of COVID-19.

Oh, we observed.

Cute and petco.

Cleveland well.

This impact has been for a long time that is locked up more and more people come online too.

Pulling back up so you can ask a question.

I can yeah.

They want to use it that chat function to increase their hiring decisions.

So that's something that's true.

The COVID-19.

Severe impact.

And some in some cities, where they are the people need to keep their social distancing and stay at home.

All right.

So that they have some impact, especially in.

Our sector of the Blue collar Oh, there are lots of yesterday I'm going to shut down temporarily.

We have two people just naturally goes down.

Oh, Oh Oh.

We were not impacted.

And I feel it's me again.

Yeah.

Both projects are yet today.

Some impact.

When she says that industry, but no mature you Petra.

Oh go ahead.

Jumpshot, which yeah that's N E.

Well actually it.

So you get some club.

Well my food.

What do you mean.

Goodbye.

That's done.

How many of you got a cookie.

Oh, you got one shot.

Well look I can't do the show it to sell it.

You get that tells me and tell me what you end up.

So it will lead us all survived Uh huh.

What are you learning Beach Honeywell have begun validating for the.

That's useful number without trying to get what are you going to do.

Oh, sorry about that so you know we bought it so again, it's yet.

What kind of tell us about it.

Sure.

Uhm.

Oh, no he brought somebody out but she's human.

You can send a copy to you like come on board in my book.

But are you getting a policy that.

Hopefully you see that path would you say you're talking to your top.

Yeah. He is you haven't seen anything from what you can sell that ghansham that Shane Kim.

You're right.

Sure.

One of them the future actually look for balance sheet.

So youll see Youll Julia that Hubert.

Julia that Sheila K that should be helpful.

And the second question, you mentioned about some small and medium sized enterprises.

A quite an interesting topic, oh solar power for more than 80%.

And they have a contract to cologuard.

I always try to survive.

One people like to.

We need the company they need to hire another person needed Tonight, so to Alibaba and some come on my carnival not unlike many big until prices what they.

My Lazar head count many of.

People because they lose confidence in maybe six months or one year from now and.

They get hired people I see our business grow and these are important it's very important not only to the recruitment market, but with the overall, China economy, which should provide more resilient to the overall economy, because lots of individual position accumulated up to a very big number of a couple of pennies an hour.

And then where you hope to overall market.

Our dual Ah shall notice yeah.

And that's my own and I love how to feel.

Oh I can offer you with.

Some additional information.

First of all over.

Fourth quarter guidance that number got.

And cuda.

The consideration of the macro impact.

The.

Fourth quarter, I mean, the last quarter of last year.

We did notice some micro.

Weakness in certain industries for example, like in real estate.

Area and in online education.

So those areas, we did see a declining with their revenue contribution and also we noticed that the pool.

Like.

Yeah.

Hugh you retail type of online commerce, and Oh Lifestraw type of Internet Gorgon also there was some decline.

And after three festival when we noticed that.

Some.

Hi, good retail we currently.

Retailing sector.

There was a little bit of weakness.

But we noticed some like a growing sector for example, like the advanced manufacturing.

So overall I think you know the macro economy.

Hum.

Does it have impact to the online recruitment focus area.

Because we have a broad a paid customer.

Customer base, we have a broad customer base.

With all the soybean and wheat.

So I just mentioned, we have a huge number of small and medium sized enterprises.

And.

Oh or like we touched the very resilient demand from high quality like.

The industry the interest industry at the end of the high quality companies. So overall, we think that the macro impact to our business. There is a limited is controllable and.

So within the hour.

Our overall revenue contribution like our I T.

Technology and the Internet is still one of the major carrier.

Their growth.

Last quarter of the 2021.

Still healthy.

In the first two months of this year.

<unk> also recorded a nice growth although their growth is slightly.

Slower than overall.

And.

The you know the.

Oh, internet or small technology companies their contribution to our overall revenue is very very small.

Top 100 companies.

Their total revenue contribution.

Sure.

Our number is a wrong like mid single digits.

We have diversified our revenue contribution from all of the industries and all of the companies. So that's a reduced our.

Received the macro impact.

And in terms of your last question regarding what we did during the <unk>.

The last quarter.

Probably like third quarter and fourth quarter, how we achieved our goal.

One of the reason is that Oh.

The key outcome, although you know.

Higher quality companies and Oh, you know there.

You can't there spending with the platform.

Cause of.

As we previously communicated.

We have a three layer the funnel to do our business. So basically we have a lot of users use our service right.

Have a lot number of Oh more medium size the.

Employer, they use our service with the more more amount of purchase and we have you know offline contract signing purchase.

So basically.

Our high quality service and our user experience.

Secondly, help us convert those continuously convert those re user into small amount purchased there and into those offline contract.

Buyer and.

During the past the third quarter and fourth quarter, we continue with this development.

Development, so that contribute to healthy revenue contribution to our business.

And overall, our paying ratio with all of the business user on our platform remain stable.

That's basically the full picture.

Great. Thank you. Our next question comes from Timothy Zhao from Goldman Sachs. Please ask your question.

Okay.

Although sometimes standpoint, it sounds you fill that humana homegrown sequences, Josh I'm, saying that you could see now what's getting plenty of them.

When.

And he shook language. It got you I'm glad you you know at the time.

Second on a handful of women.

So it didn't seem to Gail I'm, pushing the council alcohol courts I E.

Got you something that took a fertile.

Exactly.

<unk> 4 million Guy come back since I don't think the only thing I'm glad you're here.

And yet you got to know them quite well.

Yes.

Javelin Quiche, Glenn you want medallion excited for him and $10.

Patrick would you like what she thought she'd be dealt with whatever you call. It so I'm not too sure.

Of course, it can be sold to the highest field copy on me kind of sad.

So are you signing up on its own with them that you can die R&M between you and Patrick Alex Rial, which you tend to hear from you not one that went away you sent to you.

Well this isn't a guangdong, which would I see that.

I'm quite sure things out.

Thank you management for taking my question and congrats on the strong results.

My first question would be about the competitive landscape in the online industry as we see some of our peers have launched some new initiatives, including.

In the broadcast segment as well as college graduates.

And that kind of share your view on the latest competitive landscape and how it will evolve in time to.

And my second question is about the R&D expenses.

The absolute amount has been in the milk growth over the past two quarters and a percentage of revenue.

Revenue.

So in summary.

If a company can make next year, how we should look at that the.

R&D expenses this year and what.

What kind of areas that we are going to invest in and shall we expect any new.

Thank you.

Yeah.

So I can answer you.

Second question foot so regarding the R&D.

<unk> expenses, so basically we maintained a.

Steady growth with our <unk>.

R&D engineer head count during the past couple of quarters. So our total number of R&D.

The engineer by.

First problem last year that number was 980 and now that number you know by third quarter that number was 1002, and Oh 17 and by the end of last year that number was about 1000 and 140. So from that you can see so during the.

The third quarter or during the last quarter of last year. Although we were you know still in the you know.

So could you reveal and our you know revenue will got some like a limitation, but we feel you know steadily increase our R&D.

People so.

We think that Oh, we will further invest in this area to continue this pace.

Which one of your foundry, though.

It's thiago and she's doing Guangxi woman.

Sure sure John that the young father, Tony or Claude.

Uh huh.

So I'm out of pocket, because you want the heidrick way tissue teaching.

Condor.

Great.

Oh sure sure what's happening to me.

Okay is that about Gucci at all.

Well my zoom phone.

The G E.

So kimberly on quota cento showed up easier shop.

Quarterly usage from Jill Shea.

Hint that you can put a show called corridor.

And so now you do kick off.

So yes, it's true we don't watch them.

Yeah, So you got to Honolulu.

The polymer clay touch up on me a tissue.

Total.

Oh, okay.

That has something on the second question about R&D expenses.

Oh, we changed how we will spend our money.

We will continue to hire more and more people.

People are more expensive engineers and product managers <expletive> .

Improve our cause my bad.

I mentioned in my speech just now.

We need to achieve more than fine accretion to our existing users to understand there.

Me and my mother, she would make them, how great traction and less interactions on our platform.

Great. Thank you guys.

This is very difficult and very costly well continue.

To do that.

Yeah.

I hope that you can go one question just.

Uh huh.

Well, it's a lot cheaper if she can all choice.

Uh huh.

So again, not just for a woman to eat all outside what you're planning on downhole.

Hey, why don't you go on yet.

Yeah Yeah.

In planning for down roommates yet.

Sure.

Well now take a single dollar.

You don't book.

Thank God I wish I'm sure that you'll see.

Coupon trend in Q2.

Or whatever I'm talking food Dockyard with Hugo.

Sure.

I'm not sure you're going to see him doing with Chicago.

Well, maybe I should have that Toyota and low density beyond that wood Mackenzie I'm curious how much tricky.

Especially the quiet.

She would actually get that money will go to O'neil team that you talk.

Well in general.

Yes.

Jewelry shops right now.

But you can feel good you saw she didn't like her.

Plenty of dog, and then you'll see them for that.

Throughput.

Could you in Colorado.

Sure kit.

Or what's happening there they'll be kind of crashed smoothed out of the shoot you women.

Womens.

Yeah to the.

So yeah, I'm not sure you're going to lose share.

Oh sure no okay.

Well yeah to shop.

What does she want Chicago, Colombia, you had thought she though but you know these yet.

No not typically ganging up do you see it type of items at all because you're a woman.

Quite often vidal he joins at table without thoughtful shop.

Shouldn't that sounds really good Glenn do you want me I'll yield.

I'm not drunk oil Bill Ito film, but we hear that all the way on coal.

Yeah.

No, but you say you with Shanghai Goodnight went up.

Soil Diego La.

To each other you could say about the deal like you saw in the Hanmi, what's that you talked about you're saying you are the opposite.

So at a pace you want me, yes, sure Youll go clean she pulled the shirt you want me at <unk> Com.

So you have some kind of that kind of glad you can join the woman syndrome.

On the call sheet.

Well no he or she is here.

The pace of them bought Shaw Amigo is all about getting that should help you with.

Sure I'm sorry, your first question about compared to the one thing I would like to make them alright, I haven't thought of a point to make the first wave we have noticed that during the past half year, yeah other enterprises using our industry.

<unk> taken some action either a blue collar white collar. So let me see Oh, we have noticed that tend to be fully respected.

According to Albury uncompleted study.

Yeah.

Mark up until enterprises and institutions, maybe in this type of industry yourself fully compete.

Competition.

Industry so.

It just naturally that would tail off.

There's something called somebody or some people I think are ahead of us in doing that is very normal and.

We respect them.

What's important is that till now we have I haven't been able to to do I'll, let you take over 700.

Eight months, according to third party data, which I believe will come see our user number.

Our hydro power Oh up here by a large amount.

All of our user activities.

In terms of spending and that.

You can see we are ahead of them.

On Saturday and the reason is that we have paid we pay a lot of attention and focus on protecting how very quickly either.

There is a view of that.

Well, maybe I can relate to our bank, who could meet our users and there are 600 million that was bombed employees in China.

The United States there are about one.

14 million Oh, our workforce and we are we have already.

I think that number so we have not been.

Oh geez.

And for them to better serve them. So we fully respect our competitors.

Competitors are all up here for their innovation and their action, but we have confidence that.

Patents of our users and to maintain our market position.

Yes.

Glenn are you women, taking go more to the combo with us sometimes you can get.

Well most of your songs today fully hit high school buses tender.

What do you know what my meal.

<unk> sure that you've got certain countries.

Oh, Hey, I'll, just true excuse me okay sure.

Well do what you're doing.

So you don't get all the way on called the Woman's gene pool.

Please what am I seeing that.

Choose shoveling cool pool since you bought it.

Q4 volume pool.

It should be easier even for the future.

Uh huh, yeah the fish.

Tissue.

And I think interesting to get a little control.

And then what's happened between you go going it seems I'm a glutton gains this year. She should women how helpful. I'm sure you won't pools like Hitachi might eat up that Joshua Bachelor stewardship.

And Oh before your next question question about what the new product will have been doing and can tell the market. We have done a lot of research in our initiatives on many aspects, but I imagine are we.

Thinks it should be Oh, I'm asking do you think was discussed today.

In the future when it's mature.

As I just said there at 200 and longtime working population in China, and we only have about 100 meter.

So we will continue to refine.

Finally, our service and products to understand the indebtedness of besides to accumulate more industry knowledge and Oh. This is a very good scale, we're a long way to go into.

Chicken Sabin mentioned another competitive new niches, we believe what we should do today is just to continue to provide the best service to our users.

So.

So.

Given this opportunity I'd like to update.

Number like Oh were provided in the third quarter of last year. So due to the cyber security the rebuild process because the way we are not allowed to grow users.

During the third quarter results, we mentioned.

You mentioned the failed a number.

The number of payroll that user registration.

Around that time, so by the end of March 15.

We recorded the accumulated number or play out or user registration.

The 34 million user.

Users. So that's a huge number and we believe you.

You know, there's still a very strong market demand and because of our we have a very.

Strong.

You know user sylvius capabilities and deliver better user experiences. So once we weren't allowed to grow with definitely can grow our users.

Okay.

That concludes our I'm sorry for the question.

Thank you. Our last question comes from the line of way shown from UBS. Please ask your question.

It doesn't mean they won't.

Gotcha.

You can see that.

Oh no no.

Yeah.

You go to Chicago.

Yeah.

Yeah, sure Hi, Shuang.

You want them both from quite cheap.

It actually doesn't shut down until the neighborhood would you at all.

Okay.

Sure.

That sounds to be changes here, so I'm not sure how you Jason.

He actually sent me out.

Well it seems like Michigan interconnect.

We're talking about.

Changing the future nothing one young ones you saw quite a few large how do you I mean.

Now do you have to your side how much do you know if I may.

Sure Jonathan.

Ladies and gentlemen.

Yeah, no that I can tell you teed off unless you are not going to see some jack can be as high as usual.

So you guys had a woman got so much of a holiday.

It took off.

Sure.

Thank you.

Management for taking my question first.

First question I wanted to ask adverse.

We're still under the impact of the cyber Security review just wondering.

If the company had any plan too.

To quickly restore.

The momentum once a cyber security reviews behind us and is that kind of just on the margin trend we've seen in the basketball shoe margin is again very solid and.

And how should we think about the margin trends in the first quarter and also to clarify thank.

Thank you.

Yeah.

Sure Sidney the events, you will hopefully that the tivo to comply China shot.

Okay.

On the call.

Yeah. So can we get a woman's out first of all you who sends out three or four of them away from Dallas market.

Uh huh.

Patricia woman.

Duncan.

Sure.

The full year.

Anymore.

But what I'm talking.

Talking about here, but could you just talk.

Sure. So the I'll jump into other ship hold public tweet out you're talking to.

Alright, and I don't want I mean, that's you're holding.

Gotcha.

It seems like shops.

Okay cool.

Ah well for me I'm grateful logical way to cause here.

Tell me the pace, you're bullish what's an ideal sure that hello.

I'll pass it on pace to have you on single shot.

So I've got your food you.

That's right.

Yeah.

Uh huh.

Oh, I'm, sorry, I'll touch on about Oh, Oh go strategy after.

How are you going to nutrition firstly, thank you all for your good wishes and the wisely well I'm not sure you guys. The first thing that we're doing to increase our marketing expenses.

Because it's very important to increase the user base, we I'm sure. Okay, and then contract kicks off top secret when they are looking for jobs.

This time looking for jobs, they need remotely so platform and our history has proved that when people come to on a platform that's very high.

Hi, but they need to for smoking status.

So we will.

We spend our money very well.

We're very cautious and smartly.

Monthly.

That's my answer.

Yeah.

So I can offer.

A little bit more.

Well first of all so as Jonathan just mentioned once we were allowed to grow with definitely will increase our marketing.

No activities because of what we consider that to user growth as the.

Called driver and the right thing to do with human our current stage and but having said that we definitely will spend money wisely.

The flower beds to balance the two.

On growth user growth.

And with the profitability. So that's one way to think about and during the <unk>.

Well you know.

Fourth quarter, the last quarter of the 2021.

Number one.

The number already showed show to investors that we have Oh you know.

Nice margin and.

So basically.

That's all we're you know.

Core margin profile and during the.

'twenty 'twenty.

Full year.

We think that the way we like to try.

Try to at least maintain.

The full year like a modern situation, but having said that the way we need to consider our growth strategy. Once we were allowed to grow and for the first quarter.

First quarter normally is.

Seasonality highest spend quarter.

From the two.

2021, well you know.

Number one number two number three number four from there you can see the first quarter over 2021 is a loss of only last quarter last year because of a normally.

I'd like to know.

The more with all of our marketing activities in the first quarter and this year we have the.

The Olympic game marketing campaign so.

So that means.

We will continue the seasonality pattern, so first quarter of 2022 the module would be low but after that.

Starting from second quarter the margin will.

Recover will recover to the normal situation. So that's pretty much the situation, that's mainly because of the seasonality issue.

Yes.

Okay.

Alright. Thank you due to time constraint that concludes today's question and answer session. At this time I'll turn the conference back to Wednesday for any additional or closing remarks.

Thank you once again for joining us today and the theory I apologize for the signal.

Interruption during this call and if you have any further questions. Please contact our IR team gasoline or TPG Investor relations. Thank you.

Thank you that does conclude our conference for today. Thank you for participating you may all disconnect.

Yeah.

[music].

Okay.

[music].

[music].

[music].

[music].

Ladies and gentlemen, thank you for standing by and welcome to country and limited fourth quarter and full year 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 question and answer session.

The conference is being recorded at this time I'll like to turn the call over to MS would they want head of capital market and IR. Please go ahead ma'am.

Okay.

Thank you operator, good evening and good morning, everyone welcome to our first quarter and the full ear can do it and do you want earnings conference call. Joining me today, our founder Chairman and CEO , Mr. Jonathan Joe and I'll dive after I'm the CFO , Mr feeling job before.

Before we start we would like to remind you that today's discussion may contain forward looking statements. We'd have based on management's current expectations and observations that the well 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.

From a cultural you'll 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 for a definition of non-GAAP financial measures and a recalculation 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 I thought dripping GOG com.

With that I will now turn the call to join us on our founder and chairman and the C O.

Uh huh.

My name tons out of Nichols, our Union. So do you do her tenure and publicly.

Sure Joe that they'll consider angle.

Shashi a woman.

Shlomi you won't call wholesaler.

Gotcha Gotcha.

Hello, everyone welcome to our fourth quarter and full year, two data and do you Wanna earnings Conference call on behalf of our entire company I would like to express our sincere thanks to our users and investors for your trust and support.

Shanghai Tang our Union. So do you feel that you can call.

So would you consider God shuttle.

Sure Joe.

Hello passenger deal should you would've told me it somewhat.

Cultural answer the Soho jeans shops yet.

Cold water and tea filled up.

June children Hajime right.

On Sunday.

Yeah actually it sounds like you talk about where you can be.

Uh huh.

But we're talking to Tom why don't you.

Jim.

Sundar I found of course I'll show you the old box.

Let's review the performance for the fourth quarter first the company recorded GAAP revenue of RMB 1.09 billion, achieving a year on year growth of 69% during the period exceeding the high end of our revenue guidance.

Adjusted net income excluding share based compensation expenses reached RMB 315 million and we maintain the profitability over the last three consecutive quarters, while the fourth quarter is not a traditional peak season will turn out as recruitment market. We successfully maintained our stable performance data through our relentless.

To cultivate our abilities.

Hi to all of our Union Mackay Paul.

Pena golfing, yet Brooks I'll drop.

Sure.

One of the countries.

Well not only to you too so I'm trying to you know how are you doing.

I mean are you know Kenya, Suzanne got so low so sorry, there are no.

Pardon me at some Tom passenger you bought it you said Joe.

Jim do you find those unusual clock Wuxi you already got.

Tony It's Undrawn 500, you'll stop.

Kotaku chance you do you feel the gene Antonio home Chernenko body on where you are.

Sure.

Tony a lot.

The Eagle and do it.

Despite the challenges the company faced throughout 2021 we propelled our business forward with improvements to our key performance metrics.

Our accumulated a wireless router users to more than 100 median and our GAAP revenue grew to RMB four point.

6 billion in 2020 one.

Yeah on your gross or 119% our calculated cash billings reached RMB 5.0 billion, representing a year on year growth of 19, 8%.

Our adjusted net income excluding share based compensation expenses reached RMB 815 million, which is the first time the company achieved a positive for years now we've got profit since our initial establishment.

Yes.

Womens the poodle format, you don't shoot I'll, let Jean Jacques.

Sure sure sure conserve question Gil Ping highest would allow me I'll chime in to show.

But it all got you know who that yes. If you go Oh my gosh, all the children are talking for women's polo should go going forward.

Quarantine it shows up on your women's polo at that time, she puts usual told me anomaly.

The young Who's Schindler was huge for the B generally.

Do you believe it.

Well my thought yet unbelievable, what's actually yesterday agile.

So you don't have yet.

Johnson Mr.

Who do I should call them to be or what do you call. It.

Toledo comes off charter machine is fruitful.

Well Nantongo Johan tweaking itself I'm wishing.

Portugal, a woman de G are closer to that time silver Ninja.

Sure I'll, let Jim who.

Yeah, a lot of your non Yahoo.

Kind of going down from 400 or so.

Sure.

You don't put on that you do.

If you hadn't done this what.

You don't want them going to a few guys all your daughter short.

Welcome to all the data.

You got a gerbil you'll ship to.

Are they already in your shop on yet.

So now ashamed, we'll tell you Michael that you can call it shop.

Sure.

<unk>.

Children, who are targeting those phoned in Shanghai, the firearm do Yeah Mail journal.

You're going to use that youll share.

Earnings are and then send you home.

The Gulf on travel or I mean are you.

She thought out until you see utilizations are harder to do.

We made excellent progress across many areas of our business.

Let's start with the overall improvement of the company's service capabilities of our core business platform, which is to enhance the user experience and provide more efficient job seeking in commerce services.

We have increased our ability to almost day users in-depth knees through our willingness of first on the product and technical levels. For example, we found that many users generated new the mouth seeking full cross industry across professional job opportunities due to changes in their personal situation families or flat.

Trade market conditions by.

By optimizing our recommendation algorithm our strategy combined with our exploration and understanding of Korea science, we have been able to present more users with more abundant and the reason the board accommodation results and the further improving user satisfaction level nobody put users are able to achieve more with less any relevant changes.

Options.

As a result, we are pleased to see that even with a special appeal user registration seems later half of last year, our keen to patrons for user engagement and that she loves uncle password must deal with mass table and I'll. Let you can fix this kind of still remain robust to give an example, the peak a year. Following the 10-K 22 Spring Festival.

All exceeded the number of in the same period of 2021 which is a record high and the proof of our strong user thickness.

So in such energy bought my own rule Watson to yourself I've got Paul.

I would also like to shop woman junk of drugs alcohol.

Oh sure.

So as usual downtime for the peak, although you also know with three children would be generally.

So oh no argument somebody who's on.

I'm sure well not a whole lot.

You know who the general counsel.

Gee I wish it was Florida.

So you don't want my team has fallen from William Coote.

Sure.

No no no you don't put a charger chocolate you got on your thoughts.

Yes, well my Attritional.

It drove into Australia.

As I have mentioned in the approvals earnings call in the absence of new user registration dependent.

Our focus on better serving our existing users.

What I just said about developing a deep understanding of what you said to me is a fundamental aspect in taken go carefully fifteens or.

As you can see almost strategy has been proved effective.

Along with the continuous growth of our platform seems or base, serving our existing users will create increasing values in the long run and therefore, it will be a very important so we have and will continue to do so.

So you mean awesome, yeah, well in terms of the portfolio, which Vinci Judy shingle shoe awful.

So you're filing her chin Tung look, Russia injunction and that hopefully will go home. So it's all the function proclaimed too harsh on the continent and a true though.

How much you won't come from for the children.

Hello Ghansham.

100 200 countries.

Judah if she does ship.

Golf Orange in China, where you don't want beauty of tissue tissue.

So are you finding that you're right June sure Yeah, Yeah. All good cultural you don't go the way it will be in column being in front of me anyway.

What's your old target children go cheap, but it's.

So <unk> had a long.

So John Locke, you boy I'm getting to a lot of cultural Yahoo, Dot Albemarle quite a bit of time I've got all catching.

On the operational level, we continue to cultivate and refine our services for people to use our groups to better serve the white and the Golden Colorado users, we have broadened the source channels for the job openings Oh platform. We have campus recruitment cooperation was headhunting, consumptions and et cetera, so as to probe.

Why them with more job opportunities as well as the powerful and the sophisticated job seeking truth.

Moreover, the propulsion go up high income users among total active users on our platform continued to increase this is because on the one hand, driven by our or we find operations heightened users' engagement on the platform has increased and on other hand, the salaries of many returning 50 users have increased.

Adding them into the high income he was a bracket.

I sincerely happy for them.

So how long youll format women's shoe donation ginger.

So on that you bought on.

Tayo towards the National N. G. You choose all you had a lot of Angel.

Yes.

You should have a pretty fun petrology and essential well may also almost all of them.

Well I know you cannot quite warm the one did did you find you'll sure Tom Baltimore children.

Hello, Ghansham to Bob Bob.

Oh Gee.

Around your fault.

You fall.

Pink How're you fall called how many of your fall.

Sure Hock and Tony I'll follow Yoshi.

Sure.

Got you all your children go try that issue.

Our.

You're right, though that you're trying to achieve.

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Woman Judge Judy rollout, you've got to have a hard no unusual on the shelf.

We also made progress in the blue collar sector improve as contrast, some investors have asked for our views on the phenomenon of irregularities entities honest tea in the intermediate nanometer agencies in blue collar recruitment for manufacturing industry a lot to share.

All of our thoughts.

The solution is to protect the interest and the feelings of the job secrets.

We reduced the number of mobile package from for Alice Walker's.

Walker's manufacturers platforms and agencies into two thereby platform standing solid suddenly we saw workers and then the manufacturers to jointly strains of net two behaviors of agencies and fast changes the rules of the game.

After our efforts many top agencies have acknowledged our roof, which is established under the premises of protecting top secret.

And today, we've got enough.

And then for the internal project, which we call it high low project so.

Hi, law, which means coking English is just a little too Mr. Torques Bay club because methods or is believed to be the first person to have effectively regulators the intermediary market to allow the agencies to our mountain with dignity.

By leveraging our technologies combined with men's manual verification, we have established network covering more than a T cells and agencies, leading to the establishment of a new industry service rule and the more transparent and to secure the product model.

At the same time, we have leased at high quality companies and positions provide by good agencies that have been verified and are screening by our offline to green team is kind or selected.

She was already allowing them to switch a downhole, sometimes a brief up which pharmacy machinery.

To your children.

So you can call, who you're talking to pass those.

Those aren't from Shanghai.

Because as soon as I'll show you in Chicago.

Why don't you don't like it did from June .

Well my answer is your total hung onto the balance sheet total yeah.

Throughout.

Throughout all these years, we have witnessed the your collateral piece entities honesty amongst blue collar agencies in the manufacturing industry and the hub they have caused to job seekers employers and equipment platforms. We firmly believe this phenomenon can be changed we will continue to work on helping in that industry.

And from what I guess introduced some achievements so far.

Truly shop, human kind of a function of you Josh.

Well, they're going to wait for initial thought he or she likes she had a T shirt.

Our fault.

On the leap.

Sure.

Oh all right.

So I wonder you gave them when.

When are you when you go to hear that some jobs.

Shannon on me.

I'm trying to in a tradeshow.

Your D.

Well, Tony you all true.

And the Balkans.

Sure.

Hi, Andrew.

You didn't need all that Paul when you put it on mute.

Sure.

Chicago.

Our book, where you buy you meet them B G.

Who doesn't know me to shop.

Sure sure you bet your tranches.

But we know who you.

Yes sure.

Sure.

Sure.

There you go GA he's traveling to Egypt.

Yeah, Craig and he gave me Patricia warranty.

Could she had some jobs.

Once you don't need it.

Sure Yeah, exactly we will do that at all.

On the watch and tortured attrition.

Now, let's talk about the improvements we have made to our security capabilities on our platform.

We believe that compliance with the law is a very basic law altra business, well, the willingness and ability to protect users representing ceilings let.

Let me put it in another way if the girls open enterprise capabilities to make money should be lowered them subject to and lagged behind its ability to predict protect the users into service.

We must grow our business based on our capabilities to protect users instead of putting protection beneath profitability.

This is our philosophical understanding of the chicken and egg problem between profitability and the user protection it.

It can also be seen as our understanding of the relationship between enterprise growth and the use of security, which also represents our spend and prioritizing our daily work.

Womens home standby format, you show them, you can kind of archenemy ghost.

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The ego shoot Qureshi ball younger Undrawn Chunghwa, Fabio talk whether your onshore hooking loosen that youll ship.

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Nobody knows ultimately to ordinarily you'd see a fool Hollywood film the shelters and central.

They are shipping.

Sure.

Joanna your ballpark and how long could it be a gunshot.

So I'm actually Aloha yet.

Sure sure sure.

Sure.

So therefore finish on the chart.

So that's what it.

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So is your food you actually I don't need that she got that's useful for your new job well done so now total.

So I know our Union Green.

I'm trying to show on Sunday.

Sheba, Washington.

So when actual he can talk about your children being jumped quite a bit more.

We have greatly improved the security capabilities of our platforms from a street aspect.

Solid foundation for our long term and the <unk>.

Staying about business development. The first is personal information protection, we have established a comprehensive personal information protection mechanism both in compliance with the requirement of relevant laws and regulations and the further you have either business attributes of our own platform, which we hope will become a benchmark.

Among human resources service enterprises in China.

The second major east platform user safety protection, which focus on protecting the users' interest and feelings here, we have established the industry's first online security team.

Finally on AI screening and its accretive process, we can verify enterprise addresses recruiter enterprise relationships and identify high risk positions and businesses.

He said his offline.

Third is the comprehensive improvement of our data security capabilities, leading to the increased investment in technology and talent.

In 2021, we increased the security related head count by over 750 in the currently our safety related teams have more than 1000 people and we'll continue to expand.

Well my goodness again, you thought she had a short laser huh.

<unk> ego, Guangdong Jiangsu the bundle.

Our union.

Most of the downward dog Juliet foundry was 100 and Juliet.

You're talking about so I'm not sure just housekeeping Jim Zone.

<unk> Hi, it's showing up on your answer them from yet it's really what you do that you don't.

Yeah.

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Our Union, Tom what she had palm Jensen will that Shah.

Already our union towards its first time I'm going to watch all the learnings from hall.

Well you are correct.

Did you just you thought yours from QE is a consult.

All told our total ownership.

Put all of them will tell you what time father Gotcha trunk Chunghwa.

Charlie.

I am bullish on our union to Concho appear Julien onto a toilet vocal about.

Women launching the archway Beijing Orange odd ball plant.

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The old javelin shop.

Drove gardella, you drop a few months yet.

Hello, a woman she yet do you tend to pay too much you mean.

The Tommy push yet.

We have practiced concerted social responsibility and the integrated throughout the company both as a responsible completion and as a highly visible public company.

In 2021, the company has taken active part to assist college students and the disabled in job seeking and dealers provided donation assistant.

Teams of major natural disasters, and we participated in Greek and Green construction projects.

We have been recognized for our contributions we were also named in the five fighting donation 2021 tough 500, Chinese enterprises and their financial philosophy translates into your one 500 Chinese enterprises issued by the China Enterprise charity for up for them.

Both the company and I, we're all worried a certificate of appreciation from the Ministry of Education of China, and they were named as the 2021 excellent pattern or in the employment of college students.

Our active actively support outstanding contributions to the employment of college students.

We're also honored to be the exclusive provider of official human resources services for the baked in 2022 Winter Olympics and the Winter Paralympics, which was a moment of great Pride and joy for us as a company headquartered in Beijing is seldom a patent pending residents as our employees.

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Gesture, which you've all at once or should a phone call.

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Hello, well unless you already told around who can be chunky charges on it yet.

Whether it's just a whole bunch of Dr. Judy.

There are several field, we talked about you saw does how would you call bullshit.

Regardless of 2021 eight years since our establishment in 2022, maybe I'll remain huge our mission and our values as we cooperate with cybersecurity scrutiny and prepare for future growth, we sincerely support this.

Sincerely thanks to support from our investors and we will continue to improve the matters, we how it works.

So you have to on a 150 million share repurchase plan, we announced early this month is a testament of our management team's confidence and faith in the future development of our business and believe in our ability to deliver long term value to our investors and users.

With that I went to two hour sample feel for the review of our financials. Thank you.

Thanks, Jonathan Hello, everyone. Thank you for joining our earnings call today before I begin. Please note that all amounts are in RMB and all comparisons are on a year on year basis, unless otherwise stated.

We are pleased to closed 2021 with solid financial results in this quarter. Our total revenues increased by 69% to RMB 1.09 billion, beating the high end of our guidance range.

Total revenues for the full year of 2021 achieved 100, and a 19% gross to RMB four 6 billion.

With online recruitment services revenues accounting for about 99%.

Total revenues.

Our calculated billings increased by 24% to RMB, one point 17 billion in the quarter and it was up by.

98% to RMB 5.02 billion in 2021.

Now I would like to further elaborate of the topline, which represents a sustainable and <unk>.

Quality growth.

By the way were suspended for new user registration is early so that way.

We recorded strong user growth in the first half of 'twenty to 'twenty one.

There was one key point 7 million newly Burger authority users from January to June .

Mom, which $3 4 million or enterprise users.

Our total accumulated verified enterprises users reached 14.9 billion by first half.

So Nike a 17, 9% year on year growth.

Meanwhile, to guarantee user experience and to better serve our existing users. We continued to provide innovative commercial product, but to control the pace of over monetization.

If you're getting from all of our resilient model and the high user retention, we see that both both customer demand.

Willingness to pay our welding and paint.

Which resulted to a 4.0 million paid on enterprise users.

In 2021, with 82% year over year growth.

A key contributor to our total revenue growth.

Moving on to the cost side.

Look at the fourth quarter numbers first.

Excluding share based compensation.

Operating cost.

Expenses grew by 25% to RMB $726 million.

Turning to adjusted operating margin both of them.

34%.

Our cost of revenue increased 89% to RMB 115 million.

Quarter with our gross margin remained stable.

86, 3%.

Primarily driven by increased headcount, especially in security.

Personnel.

While testimony or asthma.

To improve security and user safety.

Sales and marketing expenses increased by six 2%.

RMB 374 million representing.

34.

Percent of our total revenue.

Dawn.

15.

<unk> percentage points year over year.

Continue the upward trend of improving marketing efficiency since last quarter and as a result of reduced marketing activities during the user registration suspension.

Research and development expenses increased by 31% to RMB.

99 million primarily due to.

Hiring R&D.

General and the many strategic expenses decreased.

31% to RMB 19.

19 million in this quarter, which was mainly due to RMB.

533 million of share based compensation expenses recognized related to the issuers Ultra class B ordinary shares too limited.

In the same quarter over 'twenty 'twenty, excluding share based compensation expenses.

Adjusted <unk> expenses.

Increased by 74%.

Yeah.

The result of an increase.

Our net income.

The RMB 233.

The net loss.

Yeah.

2019.

Same quarter last year.

Excluding share based compensation.

Jonathan.

Alright.

Okay.

In this quarter.

Okay.

The net margin of 42.

Percent.

The healthy robust modern profile.

<unk> finished.

For 2021.

Our total operating cost and expenses excluding share based compensation.

51% to RMB, three 4 billion.

Representing an adjusted operating margin of 21%.

Of the 36 percentage points compared to 2020, resulting from improving.

Efficiency.

Our gross margin remains robust at 87% with quarterly revenue increased by 100.

31%.

Sales and marketing expenses increased by 44% to RMB, one 9 billion R&D.

R&D expenses increased by 6% to RMB 822 million.

G&A expenses were RMB, one 9 billion.

For the year.

Primarily due to the one off share based compensation expenses of RMB, one 5 billion relating to the issuance of class b shares to type of or limited.

Excluding share based compensation.

Our general.

This.

They increased by six 8% to RMB 300 million.

Our net loss.

What RMB 1.07 billion, excluding share based compensation.

non-GAAP net profit of RMB 800.

Great.

For the whole year.

Well with that.

Generated from operating activities was RMB five one.

The 35 million for the fourth quarter.

RMB, one 6 billion for the full year.

And as of December 31st.

21 end of the year.

Okay.

Equivalents and short term investment totaled.

RMB 12 2 billion.

Cash reserve.

Robust operating cash flows.

A solid foundation for long term sustainable growth.

No no.

Sure.

Oh look for.

For the first quarter of 2020 school, where expenses, our total revenues to be between RMB one one.

Yeah.

RMB 112 billion.

Year over year growth rate.

Approximately 40% to 42%.

A further testament.

Good morning.

Monetization model.

With all of our user data remains robust.

Okay.

A full recovery.

Great.

<unk>.

I mean, it's already.

That concludes our prepared remarks.

No.

Several questions.

Please go ahead.

Thank you.

We will now begin the question and answer session. If you wish you ask a question. Please press star one on your telephone and wait for your name to be announced.

If you wish to withdraw your request please press the pound or husky.

Standby, while we compile the question and answer roster. So once again to ask a question. Please press star one on your telephone.

Our first question comes from the line of Eddy Wang from Morgan Stanley . Please ask your question.

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I just wanted to see what.

Your singles.

They come they are challenging.

What kind of God did show them and just say you got that shortage issue.

Uh huh.

Just wanted to see how sure.

Joe you can give it to you.

You saw churn docs I know Michelle.

Total.

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You can watch it that's all tissue.

Nishu Sood somebody younger.

Sure Jay.

<unk>.

Michelle.

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Shouldn't it.

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I'll call. It that means you got to do it by each Wheeler okay. Good.

That's all I'm Gonna G G in Belgium.

Government <unk> Joshi.

As you know kind of a blessing Arne Duncan for abusers on TNT the home yet youll find it.

So we'll put you back to the paywall.

What about for this year I talked about the chimney, a two dollar dudman gotcha.

<unk> it sounds like you don't tissue.

Uh huh.

All of them.

Sure.

So is it kind of bothered about Tom is that you can call them by building it sounds like a good day.

It's juices and kind of what you said this all along.

Finally, a woman comes about him Mr T shirts.

The <unk> team to do what's helping bank joined permanent drone types of somebody else.

Sure.

How did you say Oh, well you thought your that you summarized their short term and one beat I think John just sort of a good job.

So a woman.

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Yeah.

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Just to let you say for me what I'm hearing tissue.

Both Asia, how does somebody who's not a woman Sonya.

She has done that.

The bulk would you need to do about it.

I'd put it through casino critical instead of hiring about sugar found within that you've got.

You've got some cool, but not what kind of things.

My question is regarding the first quarter guidance, we noticed that the guidance has been very resilient and we still expect a Q O Q O Q on Q growth. So just want to hear your thoughts on the questions with you that's what's the sentiment in the first.

Quarter.

You had the housing sentiments have been effected by the macro weakness as well as the.

The COVID-19 related lockdown.

And second question about we have good that's helpful.

Cut in the TMT industry, we've been asleep.

Just want to know if there's any impact.

From this.

TMT.

Sector and on top of that so what.

Hi, and sentiments of the Smes in China in the first quarter and the third question is about our operation.

Have we.

What have been incremental.

<unk> efficiency or the after we had been did in the first quarter.

<unk> secured is a very solid first quarter revenue guidance. Thank you.

Hi, Susan.

Yeah.

Great women.

Okay.

Some of them.

Please go ahead.

Sure.

English Milwaukee.

I'm sorry.

Yeah.

Yeah.

Good.

Joe.

Yes.

She is not at all.

With Doctor.

Okay.

Okay.

Oh, yes.

Just in relation to valuation.

Yeah.

Neither.

Okay.

Yeah.

She sheepishly Wuxi, though.

So more time to talk about.

Yeah.

Yeah.

Steve.

So as you do the installs and stuff.

Okay.

My first question.

The first one.

Thank you.

I would like to Oh.

The first quarter of every year.

Crew team because they are there.

Chinese new year Festival.

Okay.

So I chose the.

Okay.

First of all lots of employees.

Great.

Yeah.

Okay.

They were looking for and complete.

So I guess.

Fourth quarter.

You can see them.

What I used to pick two data.

Recruiting market.

All right.

Uh huh.

Got it.

Paul.

People tell me that.

Australia.

So.

Oh, sorry, sorry.

Sure.

Cornell.

Sure.

Understood.

A woman.

Yeah.

Understood.

Talking Xiaomi aster.

Okay.

Okay.

Okay.

Total Shockwave awesome talking Shaw.

Thanks, Jonathan.

Uh huh.

And they all kind of hospital.

Oh, you're talking again.

Sure.

Go ahead Scott.

And regarding your second question on the macro.

What impact you just.

I mentioned that we have seen lots of Internet Giants Oh.

Come up.

A replay of the employees.

Okay.

Oh.

The economy.

Yeah.

T E.

But for the English for why we did that the MISO and small sized enterprises.

Yeah.

A lot of people.

The overall internet.

But we did notice very significant changes culturally you saw it you don't have to heat up.

Yourself.

Yeah on the English with yellow a whole lot me each of the groundwork for this year.

Any chance you can get that out yet.

Sure.

When you go from here and I can see that we're going to talking to all of the children.

Yakov daughter.

Got you.

Online that's I'm sure.

So I'll, let you go on to chart eight yoghurt function that's yigal.

Yes, you bet Shelby you again, you talked about you got about $10.

All right.

I, usually tell them I said before Youll Egfr yet.

All you know about that.

Digital voucher Judy.

Hot Chocolate show yourself, so we aren't sure when they're kind of ship.

Oh, yeah sure the money pool yet.

No.

Okay, Yeah that's.

Choppiness shotgun.

So the last time, we'll make that.

What was that again.

A woman who had that tool.

Male male younger child, helping to deal with the whole home can you do that.

Got it that makes it a bunch of them.

The happy meal culturally.

Thank you, Doug and do it yourself.

I see.

You schedule should you all hear them talking to draw that kind.

I have I'll call it a chipotle yourself.

Wow.

Can you talk about the impact.

And we also have got that huge impact on us.

Great.

Well, yes.

His impact has been for a long time that is lots of more and more people coming online.

Before their job so can I ask a question.

I can't believe we.

They want to use it that chat function to increase their hiring decisions.

So that's something that's true.

The COVID-19.

Once a year.

Oh.

And some in some cities, where they are the people need to keep the social distancing and stay at home.

You saw that they have some impacts because especially in the other sector.

Sector of the Blue collar, Oh, there are lots of yesterday.

Sat down temporarily.

How do we have two people.

Naturally goes down but.

Well that's actually.

Yeah, we were not impacted.

And this year from the first quarter yet to go.

We saw some impact.

When she says that industry.

Industry had no material impact to us.

Oh go ahead and keep all the people there.

Sure Rich.

He said well, let's see.

Oh absolutely.

Yeah.

Cool.

Well my food.

Yeah.

Goodbye.

Uh huh.

Could you.

Yeah, I'll watch out.

Uh huh.

Well look I can't do this shall wait to sell each yet talking to somebody who's equipped Vietnam.

Scott Huckins, who will lead us all it's alive and well.

What do you think the huge or what are you learning beat you up how.

Have you ever have you guys can't validate Evo lately that's useful.

Yeah.

Are you going to drill all way up either.

Really the part that we wanted to get tissue. So again, it's yet.

Got it.

So David Yeah, they are cute.

Yeah.

Uhm.

Both of them.

Yes.

But she is human you should.

Syngenta suddenly come.

Come on board in my book.

I think again look forward to that.

Hopefully you see the path would you say, it's all being in Chicago, where he is challenging.

Ghansham this Q4.

You're right.

Some of them make sure. Your problem is you get one of them.

You should actually look quite promising.

So you'll take they see how well do you want to.

Or do you think.

Julia that Sheila K that should be helpful.

And the second question you did mention about SME small and medium enterprises.

Quite an interesting topic, oh platform more than 80%.

And they have a contract vehicle.

Pardon me I always try to survive.

When people that made.

We've made the company and they need to hire another person needed Tonight. So too are the bonds and so come on my carnival not unlike many big until prices what they.

My.

We do a head count or you want many of people because they lose confidence in maybe six months or one year from now and.

They get hired people I see our business grow and this point is very important not only to Debbie koopman market, but to the overall, China economy, which provides more resilient to the overall economy, because lots of individual position accumulated up to a very big number of hotel openings and how are you.

And where you hope to overall market.

Our dual Ah shall notice yeah, well done.

And that's my answers and I love how to feel.

Well I can offer you with.

Additional information.

So first of all over.

First quarter guidance that number.

In Florida the.

The consideration of the macro impact.

The.

Fourth quarter and in the last quarter of last year.

We did notice some.

Like or weakness in certain industries for example, like in.

Real estate.

Area and in online education.

So those areas, we did see a declining with their revenue contribution and also we noticed that the pool.

For some like a.

New new retail type of online commerce and.

Lifestraw type of Internet Gorgon also there was some decline.

After a brief festival, we noticed that the.

From.

Hi, good retail retailing industry retailing sector.

There was a little bit of weakness.

But the weight in the notice unlike a growing sector for example, like the advanced manufacturing.

So overall I think you know the macro economy.

It.

Does it have impact too.

To the online recruitment service area.

Because we have a broad a pay cut.

Customer costs.

Or base, we have a broad customer base with dollar Sylvia and a way that.

Jonas I just mentioned, we have a huge number of a small medium sized enterprises.

Oh or like we attached them, they're very resilient demand from high quality like.

The interest rate the interest interest rate at the end of the high quality companies. So overall, we think that the macro impact to all business. There is a limited is controllable.

Uh huh.

So within the hour.

Although overall revenue contribution.

I T and the <unk>.

Technology and the Internet is still one of the major carrier.

And their growth.

Last quarter of the 2021.

Its a still healthy and in the first two months of this year. They also recorded a nice growth although their growth is slightly.

Lowered the overall growth.

Uh huh.

The you know the.

Well internet or call Pinotti companies their contribution to our overall revenue is very small.

Top 100 companies.

Their total revenue contribution in our like the number.

Number is a wrong like mid single digits. So we have a diversified our revenue contribution from all of the industries and all of the companies. So that's a reduced the hour.

Received a macro impact.

And in terms of your last question regarding what we did during the.

The last quarter or lots of them, probably like third quarter and fourth quarter, how we achieved our goal.

One of the reasons is that Oh.

The key accounts, although you know.

Higher quality companies and Oh there.

You can't there spending with the platform.

Cause of.

As we previously communicated.

We have a three layer the funnel or to do our business. So basically we have a lot of users use our focus right and we have a lot number of Oh more medium size the <unk>.

Employer they use our service.

More more amount of purchase and the warehouse.

Offline contract signing purchase.

So basically.

Our high quality service and our user experience.

Secondly, help us convert those continuously convert those re user into small amount purchased there and into those offline contract.

You know buyer and.

During the past the third quarter and fourth quarter, we continue with this development.

Development, so that contribute to healthy revenue contribution to our business.

And overall, our creating visual with all of the opinion that the user on our platform remains stable.

That's basically the full picture.

Great. Thank you.

Question comes from Timothy Zhao from Goldman Sachs. Please ask your question.

Although a fantastic Queensland, you fill that Humana homegrown sequences, Josh I'm, saying that you could see deep knowledge skill and Connie.

Evil and he shook language of cool that you don't go with you you know what my time Dogpatch in close second on a handful of women.

So it didn't keep pushing that don't sell my.

That's all caught dialed.

Got you something that took us through.

I can't tell you exactly how long ago. A format you guys have gone back since I don't think the only thing I'm glad you're here.

Our and yet you got to know them quite well somebody on the project.

Javelin niche Glenn you want me to I guess I should forgive me $10 Oh.

Sure.

Don't shoot dealt with whatever you call it so I'm not too sure.

She can be filled with the highest field to cup you'll make it a shot yeah. So essentially it's a woman to Miss you and I are doing and how to allocate all we should say Nokia phone, yet melanoma clinical way Quigo U shaped recession as well.

She isn't of Guangdong, which would see that all.

All of them quite a few things Oh. Thank you management for taking my question and congrats on the strong results.

My first question would be about the competitive landscape in the online industry as.

As we see some peers have launched some new initiatives, including <unk>.

In the broadcast segment as well as college graduates.

And that kind of share your view on the latest competitive landscape and how it will evolve in time too.

And my second question is about the R&D expenses.

The absolute amount has been in the milk growth over the past two quarters and up the country just send you to revenue.

So the primary.

Kennedy can make next year, how we should look at.

The R&D expenses this year and what kind of areas that we are going to invest in and shall we expect any new features.

Thank you.

Okay.

So I can for you.

The second question first so regarding the R&D.

<unk> expenses, so basically we maintained a steady.

Steady growth with our <unk>.

Randy engineer head count during the past couple of quarters.

Our total number of R&D.

Engineer.

Right.

First problem last year that number was 980 and no that number you know by third quarter that number was up.

And Oh 17, and by the end of last year that number was black once all of them and 140 <unk>. So from that you can see so during the third quarter during the last quarter of last year. Although we were you know still in the well.

Separately could you reveal and our you know rapidly will got some like a limitation, but we feel you know steadily increase our R&D.

People so we.

We think that the well we will further invest.

Area two.

Continue this pace.

But what we're truly astounding.

It's thiago and she's doing Guangxi woman.

Sure John that the young father total salt.

Uh huh.

So I'm not as long as you well know hydraulic tissue to team.

Condor.

Great.

Sure.

Turning to me.

Okay.

Oh well.

For me it's important.

You'll recall that since you are unique.

So kimberly on Cuda, shindo huge or the other you get shot.

Total usage from Joel <unk>.

But you don't put a show called corridor Grimshaw.

Sure.

Paul.

Yeah sure we don't watch them.

Yeah sure you go out and try a little.

The polymer fleets that you have how many of tissue.

Total.

Oh.

That has something on the second question on the phone.

R&D expenses.

We changed how we spend our money move.

We will continue to hire more and more people more expensive engineers and product managers.

Got it.

Our improve our Columbia like I mentioned in my speech just now.

Me too.

You can find a location to our existing users to understand there that's me.

Mitra moderate should make them have greater shipments and less interactions on our platform.

Great. Thank you guys overall.

This is very difficult and very costly.

To do that.

Yeah.

I hope all of you to go to a question Oh yeah.

Yeah.

Well, it's a molecule with Shaquille choice Huh.

So again, not just for a woman to eat all outside what you're finding in downhole.

Oh.

Hey, why don't you go on yet.

Yeah, you always hit well in planning for with Ambulation.

Oh, well, let's say down syndrome.

I truly don't book.

If you hear a lot, which I'm sure that you'll see.

Before I jump in queue.

Or who they are all talking food dockyard with yugo.

For example, with it somewhat tricky because we've been doing with Chicago.

Well, maybe it you heard about that Toyota and more gas you can see on that one.

Virginia case, you can accomplish it.

Tissue quiet.

Youll see that you get that money will go up you'll see that you talk to the dollar general cause you to change it.

He shall I do the shops right now.

But you can feel good you saw she didn't like huh.

Uh huh.

Through it all meals on your door.

For the throughput.

Could you handle that besides on the switch it.

Or what's happening they are totally kind of personal data stewardship.

Womens.

Yeah to the.

Oh, I'm, sorry, yeah, I'm not sure you're going to lose.

Sure.

Oh sure sorry, Yehuda Weird workshop.

She'll Chicago, Colombia, you had thought she though that even though these yet.

No not particularly.

Type of volume two.

Sure Mike.

Quite often data read out to.

Well no.

Thoughtful shop.

Well it turns out not to see sounds really you Glenn yeah, well, maybe I'll yield.

I'm not drunk oil bill Ito fail, but we hear that loud, Oregon coal.

Okay.

The months, you said you would shun, though you might see.

Soil Diego La Lucha, you've got choppy deal maybe you called the Hanmi, what's that you talked about you're saying you are the opposite.

Uh huh.

So at a pace you want me, yes, sure Youll go clean she told us.

For me it will be back half.

So some kind of that kind of glad you can join the woman syndrome.

Balance sheet well.

Well now Youll Shanxi in.

How the Biogen and bought Shaw Amigo is all about getting that should help do it.

Okay.

To answer your first question about competitor and one thing I would like to make them right I haven't I'm trying to make the first wave we have no two sites are in the door.

During the past half year, yeah, other enterprises, using our industry. They have taken some action either a blue collar and white collar pharmacy, Oh, we have noticed that we fully respected.

According to a very I'm company that is.

There are lots of them.

Mark up until enterprises and institutions, they didn't disrupt our industry yourself fully.

Competition.

Industry so.

Is it just naturally that there will be something well some some.

Some ideas. Some people I think are ahead of us is doing that with very normal we have noticed.

Hum.

Employees that are till now we have I haven't been able to grow our U K oar a 700.

Eight months according to third party data, which I believe will can see Oh, well you have a number of major MBA.

Our hydro power all up here by a large amount.

All of our user activities our youth.

<unk> and <unk>.

Importantly, we are ahead of them.

Saturday and the reason is that we have paid we have paid a lot of attention and focus on protecting our very quickly either.

There is a view that we have already accumulated oh, well done some good media users and there are 600 million among employees in China, but in the United States. There are about 113 million.

Our workforce and we are we have already.

I think that number so we have not.

To to do something for them to better serve them. So are we where do you expect our oh, well compatriots all our peers for their use.

Innovation and action, but we have confidence in the past.

Patents of our users.

To maintain our market position.

Plenty of women.

<unk> got more people are comfortable with that sometimes you can get.

Sure.

Well most of your songs.

So that's it sends out what's your though a meal kit tend to appear that you saw that you guys see in transit.

Sure. So as you go okay sure.

Sachin do Ito.

So you won't get all the way Unquote Young woman gene pool I E.

Please what am I seeing that.

Choose shoveling cool pool since you bought it.

Q4 volume.

They should be easier you can put a huge hole.

Uh Huh yeah the.

Nishu.

And I think interesting to hear a little control.

When was that when you go going it seems to have gone down this year. She should women how helpful I'm sure.

They own pools, I see Tom should not eat up that dress casual shoe team.

And Oh for your last question question about what the new product.

And Ken tell the market, we have done a lot of research in our initiatives on many aspects, but nothing we think should be Oh I'm asking do you think was discussed today.

In my release in the future when it's mature I think I've said, there are 600 million nonfarm working population in China, and we only have about 100 million of them.

We will continue to move.

Finally, our service and products to understand their index to me something to accumulate more industry knowledge and with this is that there is still a very long way to go.

In 2017 mentioned another competitive new niches, we believe what we should do today is just to continue to provide the best service to our users.

So closely.

Given this opportunity I'd like to update the.

Number like her with.

With her why did the third quarter of last year.

No.

Due to the cyber security the rebuild process because the way we are not allowed to grow users.

During the third quarter results.

You know mentioned the failed a number.

The number of sales that user registrations.

Around that time, so by the end of March 15.

<unk> recorded the accumulated number or play out or user registration.

The 34 million.

Users so that's a.

Huge number on where I believe oh.

You know <unk>.

Do you have a very strong market demand and.

Because although we have a very.

Strong.

You know user Sylvia its capabilities and a way to deliver better user experiences. So once we weren't allowed to grow with definitely need can grow our users.

Okay.

That concludes our I'm sorry for the question.

Thank you. Our last question comes from the line of way show from UBS. Please ask your question.

Okay.

When they go out.

So whatever you want negotiations that you're moving out of town.

Hum.

You go to Chicago.

Yeah, sure Hi, Shuang boats from quite a few.

Ladies.

This will enable should would you have to know how to.

Sure.

That sounds to me June Joshua geometry.

Got you.

I actually sent me attitude has kept me on that.

I'm glad that you can connect with them.

Without a doubt challenging that future nothing one yeah.

Quite a few guys how're you doing.

Sure Jonathan.

Ladies and gentlemen.

Sure.

Nobody knows for.

So what's your view on lung tissue from Jack Champions.

I'm going to say.

Josh that woman got so much of a holiday.

Andrew do you want me to.

Uh huh.

Thank you management for taking my questions first question I wanted to ask.

We're still under the impact of the Cyber Security review just wondering if the company have any plan to two.

To quickly restore growth.

The momentum <unk> cyber security reviews behind us.

Just on the margin trend we've seen in the basketball shoe margin is again very solid.

And how should we think about the margin trends in the first quarter and also 2022. Thank.

Thank you.

Yeah.

She's sitting in the event you went up without the Tivo to departure in Asia.

So you have got any of that.

On the call.

But juliet.

Well first of all you who sends out your phone and play some golf market.

Just a woman.

Thank you I know you've got hung up on Zorba So sure.

Some guy before he owns that agreement.

Hmm.

Industrial but could you just talk.

Especially at Johnson <unk>.

I like to eat all that drop I'm, sorry on holiday I don't want I mean, that's you're holding your major flashy on top of the Lake.

Great job, especially given how it cool.

Sure.

Well for me I'm grateful logical equated cause here.

To me the pace, you're bullish what shall I do I'm sure that.

I'll follow up after the project to have you all single shot.

Uh huh.

Talk about just how you get that site.

Okay.

Uh huh.

Oh, I'm, sorry, I'll touch on about Oh, Oh go strategy after.

Our user registration firstly, thank you all for your good wishes and the ones. We want I'm not sure you guys. The first thing that we're doing to increase our marketing spaces.

Because you would be very important to increase the user base, we have slowly and then characterize kicks off top secret when they are looking for jobs.

They start looking for jobs, they need to mortgage platform and our history has proved that when people come to our platform.

People are high but they need to first noticed that.

So we will.

Spend our money very well.

We're very cautious.

Monthly.

That's my answer.

So I can offer.

A little bit more.

Well first of all so as Jonathan just mentioned.

We were allowed to grow with definitely will increase our marketing.

Activities because of what we consider that to user growth as the you know called.

Called driver and the right thing to do with human or current stage, and but having said that we definitely will spend money wisely.

The flower beds to balance the two.

On growth user growth.

And with the profitability. So that's one way to think about and during the <unk>.

You know.

Fourth quarter, the last quarter of the 2021.

That number.

And number already showed show to investors that we have.

Nice margin and.

So basically.

That's all we are you know.

Core margin profile and during the.

<unk> two full year.

We think that the.

We would like to.

Try to at least maintain.

The full year like our margin situation.

Having said that the way we need to consider our growth strategy. Once we were allowed to grow and for the first quarter.

Our first quarter normally is.

No seasonality highest spend quarter.

From the two.

2021.

You know number one number two number three number four from there you can see the first quarter over 2021 is a loss of only last quarter last year, because normally we would like to.

Spend more with all of our marketing activities in the first quarter and this year. We have the you know the Olympic game marketing campaign. So.

That means.

We will continue the seasonality pattern, so first quarter of 2022 the module would be low but after that.

Starting from second quarter, the margin will recover will recover to a normal situation. So that's pretty much the situation, that's mainly because of the seasonality issue. Yeah right. Thank you due to time constraint that concludes today's question and answer session. At this time I'll turn the conference back to them before.

Any additional or closing remarks.

Thank you once again for joining us today and this is theory I apologize for the shipyard.

Interruption during this call and if you have any further questions. Please contact our IR team Gaffney or TPG Investor relations. Thank you.

Thank you that does conclude our conference for today. Thank you for participating you may all disconnect.