Q2 2023 Kanzhun Limited Earnings Call

August 29, 2023

Speaker 1: Good.

Okay.

Speaker 2: Ladies and gentlemen, thank you for standing by and welcome to the Kenju Limited Second Quarter 2023 Financial Results Conference call. At this time, all participants are in list-nolly mode. After the speakers presentation, there will be...

Ladies and gentlemen, thank you for standing by and walk us through the Kensington Limited second quarter 2023 financial results Conference call.

At this time all participants are in a listen only mode.

After the speaker's presentation, there will be a Q&A session.

Speaker 2: Today's conference is being recorded. At this time, I will like to turn the conference over to Ms. Wenbe Wang, head of investor relations.

Today's conference is being recorded.

At this time I would like to turn the conference over to Miss One day Wang.

Head of Investor Relations. Please go ahead ma'am.

Speaker 3: Thank you, Peter. Good evening and good morning, everyone. Welcome to our second quarter.

Thank you operator, good evening and good morning, everyone welcome to our second quarter.

Speaker 3: Joining me today are our founder Chairman and CEO Mr. Jonathan Pancha and our director and the CEO of Mr. Phil Wu Zhang.

This conference call joining me today.

Sure.

Okay.

Speaker 3: Before we start, we would like to remind you that today's discussion we contain forward-looking basements, which are based on management's current expectations and observations that involve non- and unknown risks, uncertainties and other factors not under the company's control, which may cause actually doubts, performance, or achievements of the company to be matured and different.

John.

Yeah.

Before we start we would like to remind you that today's discussion may contain forward looking statements, which are based on management's expectations.

Second both known and unknown risks uncertainties and other factors not under Oh.

Which may cause actual results.

Performance or achievements of the company.

Sure.

Speaker 3: The company will not replace on new reliance on global looking payments and do not undertake any obligation to update its forwarding information except as it are by law.

The company cautions you not to pay.

All forward looking statements and do not undertake any obligation to update its forward each day.

Alright.

Speaker 3: During today's call, management will also discuss certain non-depth financial matters for comparison purposes only.

During today's call management will also discuss certain non-GAAP financial measures for comparison purposes only.

Speaker 3: For the recognition of non-dat financial matters and the reconstination of that to non-dat financial result, please see the earnings review issued earlier.

Well definition of non-GAAP financial measures and the Reconsolidation.

non-GAAP financial results. Please see the earnings release issued earlier today.

Speaker 3: In addition, a webcast will play a conference call will be available on our website at iHard.3P.

Yeah.

A webcast replay of this conference call will be available Oh, well that's fun.

Hum.

Speaker 3: We sat, elegant and port?igyeong, our founder, chairman, and CEO .

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

Speaker 4: Welcome our official 2000 2.2-S loving housing

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Most of the Chinese uncle by ship set.

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Cool.

So I'll close it up.

Speaker 3: Hello everyone, welcome to our second quarter of 2020 Ernest Conference call. On behalf of the company and our employees, I would like to express our sincere gratitude to our users and veterans and friends of our companies for whom have been spending with us during all the difficult times.

Hello, everyone welcome to our second quarter earnings Conference call.

On behalf of company.

I would like to stress, our sincere gratitude to our investors and friends who are public companies.

Welcome Heartbeat.

They need that Stuart I'll, just give you called detached.

Speaker 4: Thank you for your dioxide aquesta

Sure.

Yes sure.

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Geoscience initial clients should though there wont.

There will be some downside in your deal show.

Speaker 3: First, I would like to share with you our performance for the second quarter of the condition of this street.

First I would like to share with you our performance for the second quarter.

Speaker 3: We had recorded a death ?' apprenticeship of RMB1.49 for the C 1990, at 34%

We have acquired me that that's revenue of RMB 1149 for the quarter up 34% yeah.

Speaker 3: Petulated cash feelings was RMB 1.62 million. App 65% year.

That's related to cash cities, RMB, 146, 2 million up 65%.

Speaker 4: I can take it from a machine fully trained by 3.1???n? crocheting in a largehop area ... ...ah, into five cases. 305% out of 5.7 billion uncertainty the five of farmlands documented 610 meters.

But you do have two new are.

Challenging funding E coli, which aren't you didn't say Oh jeez children that you need yet.

She told me it turns out that you bought.

Thank you.

But I'm also sure tummy panty, though when he went to all other shingle.

Speaker 3: Our net income for the quarter was at approximately R&B 310. And our objective net income, which excuse share-based compensation spaces, increased by 135% year-only year to our run R&B 500.

Our net income for the quarter was approximately RMB 300.

And our adjusted net income, which excludes share based compensation expenses.

Increased by 145% year on year.

RMB.

Speaker 3: This represents highest quarterly recording of the company's operating operational history.

This would present.

Highest quality of course.

Okay.

Uh huh.

Speaker 4: In W ???? Xiao's journey with the chef and the artists have been forming and honouring their awards. It's a huge achievement and integration power.

But stripping does give them.

Moshe a problem on the Clos Your Nash again, Todd I'll, let you go close it up.

Got you, but you don't try and generally youll see Angela.

Speaker 3: The effectiveness of both Japan's business model and our organization, which has been developed for over 10 years, has once again been hatched.

So is that to me JP its business model and our Ultimate Asia Husky, Oh cool developing.

Developed well over 10 years have went up.

Okay.

Hi Chi.

Well were strong profitability.

Speaker 4: they wereised two types of

Arguably we actually did you draw down the hall, who turned out more <expletive> San Diego Schindel angina.

Goodbye.

Speaker 4: So, Laura, can you tell us a bit about your maYOUsp Few days, I hope you enjoyed this video.

Thank you Peter she in June.

I know you always the chance somebody loose about tobey its under a lot of that I'm sure.

Speaker 3: In the second quarter, our strong user growth trend continued from the first quarter. The newly verified users for the quarter for this quarter reached 14 million. And average monthly active users on the post-JTAC those two 43.6 million, 65% yield.

In the second quarter.

Along with our growth trend continued from the first quarter.

Can you verify that research for the quantity for this quarter reached 14.

And average monthly active users.

Those 214th Street 26 million up six 5% yield.

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She's learning gun shy.

Oh sure so not sort of gone quiet tricky yeah Sheila.

Speaker 4: somenow you should see you, that woman should you. Sounds satin IC learning of CA tolit.

Suddenly you, Sheila well man Sushi Shan Shan, Chicago, Atlanta, who shouldn't towards tissue.

Speaker 3: Among all the users we serve, blue-collar users and users from second and lower tier cities will faster, benefiting from our continuous efforts, in a quite long period to extend our penetration to lower tier cities and blue-collar calculations.

Among all the users me Sir.

And they use that one second.

Did you.

Thank you for your efforts.

Like lung cancer, where she spent our penetration into lower tier cities.

Relationships.

So we're talking to.

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P J, but I don't know niche it's a culture.

Speaker 4: To out show you learning. Pro charge here her teacher and she should Ed some ductt.

To answer your nanny, closeouts, yet, but do you sense you'd actually see that.

Speaker 3: In terms of enterprise users, over average monthly active users hit historical high in this quarter, primarily given by increasing demand from blue color industries, SMEs and the lower tier.

In terms of enterprise users.

Average monthly active users.

Hi, there.

In this quarter.

By decreasing demand from Blue collar industries, It's M E T S.

Speaker 4: With un Sag R Farmers widget, we can see 25 million preventable museum logo dis property. talk in future.

Cities.

She's only you chose you Lani Cook.

With that.

Sure.

Many of them bought yet juggling, a short ton onshore oil doesn't show.

Some shoes schedule.

Speaker 3: breaking down by sectors, recruitment demand in catering, hotel, tourism, beauty and personal care, as well as transportation and logistics warehousing, where more urban and supply chain to things like things like.

Breaking down by sector, the comment about E pay choice hotel surely built.

Beauty and personal care as well as pets quotation and mobile just keeps their healthy weight.

More urban.

Did you call it works out well.

Please proceed.

Speaker 4: 10 million of corporations were graduating from coal. The seperate mining industry visited all the cities until the end. But so many of them helped turn their world upside down and tell them

Full year, though Eugene Anna Chew it up on the Danish law salary is actually well yeah, that's right.

Got you.

Yeah.

So to the younger coding Jonathan centralized short you can cover your pilot.

P J victory relation.

Speaker 3: Over average daily active positions in the urban service industry, which is defined as position where both the drop-holding and these central price users are active in a single day are relatively strict standards. We've treated one million for the first time and have become the largest.

Our average daily upkeep tradition is up and service industry, which.

Chase do you find yourself, where both the job postings.

And these intra question is it seems like.

I Gotcha E G Sundar exceeded 1 million for the first time.

Hum.

So our operating platform.

Speaker 4: building where the atomic bomb appears and The atomic bomb is then made to be established in 1962 and it is controlled by the atomic bomb under the????????????????????????????????????????????

But if you do learning the solar we'll try and be able to give all the color just I'm sure alright. Thank you.

Sure sure, Yes, sure so talk a lot about the dealership.

Speaker 3: The RAMU contribution from blue-collar users increased to more than 32% of our social RAMU list for this culture. Well, the RAMU contribution from second and lower GSTs exceeded 60%.

The revenue contribution from blue columns that increased to more than 32% of our total revenue was what was called well that'd be contribution from lower.

Well, what's your cities exceeded 50% for the first time.

Speaker 4: I hope you enjoyed this video. Please like and subscribe to my channel. Thank you for watching. Please subscribe to my channel. Please subscribe to my channel. Thank you for watching. Please subscribe to my channel. Please subscribe to my channel.

Well she knows our portfolio.

Qdoba Vocalise young women as Sean.

We have all good.

Costless collars.

I'll read out you start us off with.

Josh <unk> with Longbow.

We should put on Egypt.

Speaker 4: Next year, we have motivated the wishes of Northland and mid?

I'm not cool.

My opinion.

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Sure well, then John tissue and what he said you want to touch it.

Speaker 3: as we have reported to our investors in our earnest calls over the past two years.

As we have reported that Cherokee and our earnings calls over the past two years.

Speaker 3: The company has been investing in algorithm and products between two of our targeted service capabilities across various group user groups and cities, utilizing our incomes and standing of very mobile.

The company has to be matched.

Well, that's true through our captured a small base.

Yeah.

Across virus neutralizing.

Utilizing our enhanced understanding update.

Speaker 3: Our years of past efforts enable us to achieve good progress as we capture the opportunity and rising from blue-collar workers and SME's growth.

Oh, well, yes, our past efforts enable us to achieve progress at recapture.

Blue collar workers and some nice growth this year.

Speaker 3: Moving forward, we will remain committed to innovation and further control to the easing of the series.

Moving forward, we will remain committed to innovation for the chalk.

Okay.

Speaker 4: We paradise brother, measurement and

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Shouldn't you shouldn't need sure she Alex you can judge it.

Speaker 4: Soon, after December 1st, olabilir died. He returned to strength after realizing a full-of growth. Therefore, he achieved about 451k eastern Anatolia'sose.

Change at all how are you doing more call it just shy of it.

Oh sure.

With all of your questions.

Sure.

So that will show up on the leash in golf.

Speaker 4: Hong bii ting zhen gao le dao niu shi ba. still looking forward to this.

Sundar, just shabaab lumpy, it's no doubt about that.

Speaker 3: We have long been believed that in a mature market in enterprise service, people are willing to pay for value as long as what you are offering truly value.

We have long believed that in your mature markets until price service people are willing to pay a small that's what's your offerings.

Speaker 3: By the end of the second quarter, our paid enterprise customers for the 13-12 months rebounded and resumed its fast growth momentum, hitting a record high of 4.5 million at 18% year-on-year and 13% quarter.

By the end of the second quarter, our paid enterprise customers for the CIT study 12 months rebounded.

Gross momentum keeping a record high of $4 5 million.

18% year on year, 17%.

Speaker 4: This year's arrow against falling through ultra weekasm gets longer. But in turn the arrow district view keeps running on the way.

Junior argued to the yield should be Jim quota.

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Prior to the impact on Golar, Dublin futile quest.

P. J just indulge just your thoughts Sheila Sean cartilage tissue.

Speaker 3: The second quarter this year was challenging. However, we have witnessed some productive updates due to change from an operational perspective.

The second quarter of this year was challenging.

However, we have witnessed some positive updates.

From an operational perspective.

Speaker 3: Following the graduation season in July , we saw overall human demands on how platforms cover quickly and has returned as a sensible, promising upward trend since the beginning of August .

Following the graduation season in July we saw.

Overall from a demand on all platforms.

How do you change that sustainable.

Sure.

Speaker 4: The Blue X Generation Chiefs who believe that the National Number 10?? has been introduced in this panel. a change of luck and financial knowledge . and freue

August.

If all it does yes.

Yes sure.

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Yeah total country QM Felicia.

Im just curious how wishing John Yung, Kim dialing niche industrial factors I'll call. It tertiary those should all people that are talking about.

So I can't see that yet.

I don't know Alicia, but she involved.

Speaker 3: The blue-colored urban service industry continued to outperform across all sides.

The blue collar Oh, sorry.

<unk> continued to outperform.

Speaker 3: Well, where is white collar positions have stabilized and started to cover? Especially white collar positions across personnel, finance, administration, operations and manufacturing.

Thanks.

Laura White collar positions have stabilized and started to recover especially white collar publisher.

Personal finance administration operations and manufacturing.

Speaker 3: As a result, the number of our active enterprise users reached the new high for this year, as well as a record high.

As a result, the number of our active enterprise users reach that high for this year as well as our go to heighten our corporate history.

Speaker 4: To the P a water. I ch traveing. J gan show you your plan. The K show questionship yes, should be a.

Okay.

It doesn't we don't want that either you go you can challenge us youre travelling joke on children Thunder cultural question.

Yeah that should be helpful.

Speaker 3: Also, this channel leads to the supply to demalhration on our platform, known as the ratio of job secrets to enter price users is continuously.

Also at.

This can lead to the subtype. Thank you Mauricio unwell platform, knowing that the ratio of job seekers to enter a question. He says is continuously improving.

Speaker 4: I will Shelley Who?

Well, it's just that you have high so that's the kind of <expletive>.

Sure John Engel Lithia women.

Speaker 4: to business and business owners in our company.

Yeah, well the Youll shifting CIT Chris.

Sure on the goals of the.

Speaker 4: Go towards then? Whether just our geology, because are acting on the several field we without just are consider teliging classes.

Go ahead, hopefully that whether its just all Joe Dr. Judy She saw that qinhuangdao several field without just hawking. So that's how what's your cautious yet.

Speaker 3: I would like to take this chance to thank the Dan for all those emitters who have almost been overwhelmed with the quantity and the continued to support us. And that's all for my part of the call and we'll now turn it over to our safe or field for the review of our adventure. Thank you.

I would like to take this is Chuck just thanks again for all of those and that will have on the phone I just wanted to keep it.

And that's all for my part of the call and I will now turn to page or Charleston will seal the deal.

Thank you.

Okay.

Yes.

Yeah.

Speaker 5: Hello everyone. Now let me walk through the details of our financial results of the second quarter of 2023.

Thanks, Jonathan.

Hello, everyone.

Let me walk through the details of our financial results of the second quarter of 2023.

Speaker 5: In this quarter, we reached a record-breaking results across different sets of operational and financial figures, including MAU revenues, total paid enterprise customers, profitability, metrics, and operating cash flows.

In this quarter, we reached a record breaking results across.

Operational and financial figures, including I mean, you revenues total pay to enterprise customers across the three key metrics and operating cash flows.

Speaker 5: Driven by our robust user growth and healthy user engagement, our revenues maintain rapid growth momentum and hit a new high at RMB 1.49 billion, representing a solid 16% quarter on quarter growth and a 34% year on year growth.

Driven by our robust user growth and healthy user engagement.

Revenue was maintained rapid growth momentum on the sheet, New Hot and RMB 149 billion, representing a solid 16% quarter on quarter gross and 34% year on year.

Speaker 5: Moreover, our calculated cash billions reached the R&B 1.62 billion up 65 year-on-year. Total paid enterprise customers in the 12 months.

Sure Ross.

Moreover, our calculated cash Geely has reached to RMB 162 billion, a 65 year on year.

Total paid enterprise customers in the 12 months.

Yeah.

Yes.

Yeah.

Okay.

Yeah.

Sure.

Okay.

Thanks.

Yes.

Okay.

Yes.

Yeah.

Speaker 5: Okay, so I'll start again. So in the quarter, in second quarter, we reach a record breaking results across different set of operational and financial figures, including MAU revenues, total paid and depressed customers, profitability metrics and operating cash flows.

Okay.

Okay. So I'll start again.

In the quarter in the second quarter, we reached a record breaking results across different set of operational and financial figures, including <unk> revenues total paid and depressed customers profitability metrics.

Speaker 5: driven by our robust user growth and a healthy user engagement, our revenues maintain rapid growth momentum, and heat a new high at R&B 1.49 billion, representing a solid 16% quarter-unquarter growth, and a 34% year-on-year growth.

And cash flows.

Driven by our robust user growth and a healthy user engagement over revenues maintained a rapid growth momentum.

A new high at RMB, 149 billion, representing a solid 16% quarter on quarter growth.

34%.

Speaker 5: Moreover, our calculated cash billions reached the R&B 1.62 billion are

Year growths.

Moreover, our calculated billings reached to RMB 162 beliefs are.

Speaker 5: 65% year-on-year. Total pay enterprise customers in the 12 month end of July 30th, 2023 reached the 4.5 million.

65% year on year total.

Total Kate enterprise customers in the 12.

And as of July 32023 reached $4 5 million.

Speaker 5: up 13% quarter on quarter, a record high and back to fast growing trend.

13% quarter on quarter are.

Our record high back to SaaS growing quickly.

Hey, R. P P U.

Speaker 5: For paid enterprise customers, he crazed it slightly.

For paid enterprise customers decreased slightly.

Speaker 4: both sequential and ear-on-ear, mainly due to faster revenue growth for small-sized accounts, as recruitment demand from SMEs recovered better compared to larger companies.

Both sequential and year on year.

Really due to a SaaS or revenue growth for small sized accounts.

Recruitment demand from east.

The east recover better compared to larger companies.

Speaker 4: Moving to the cost aside, total operating cost and expenses for this quarter will R&B 1.31 billets, up 26% a year on you.

Moving to the cost aside total operating costs and expenses for this quarter were RMB, one poised to exceed $1 billion.

Up 26% year on year.

Okay.

Hello.

Okay.

Excluding share based compensation.

Speaker 4: Our adjusted operating costs and expenses increased by 18% year-on-year to R&B 1.05 billion in this quarter.

Adjusted operating costs and expenses increased by 18% year on year to RMB 1.05 billion in this quarter.

Speaker 4: The general state operating margin is 29.2% for the quarter, up by 8.8 percentage points year on year. Cost of revenues

Adjusted operating margin.

29, 2% for the quarter.

Up by eight eight percentage points year on year.

Cost of revenues was RMB.

Speaker 4: 270 million up 55% year-on-year representing a gross margin of 81.8% up by 1.1% point compared to the last quarter.

$217 million up 55% year on year, representing a gross margin of.

81, 8% up by 1.1 percentage point compared to the last quarter or so.

Speaker 4: The gross model started to bottom out from first quarter, and this trend is mainly due to squintial revenue growth in the second quarter.

The gross margin started to bottom up from first quarter and this trend is mainly due to sequential revenue growth.

In the second quarter.

Speaker 4: Our sales and marketing expenses will RMB 472 million up 18% year-on-year.

Our sales and marketing expenses were RMB 472 million.

18% year on year.

Speaker 4: But just to the sales and marketing expenses was RMB 408 million, up 12% year-on-year.

Adjusted sales and marketing expenses was RMB $408 million.

Up 12% year on year.

Speaker 4: This increase was primarily due to increased the head count in sales department. Notably, brand advertising and customer acquisition cost remained relatively stable with the same period last year, while our trading 12 months paid enterprise customers and MEU increased by 18% and 65% year on year. Respect.

This increase was primarily due to increased head count in sales Department.

Notably brand advertising.

Acquisition costs remain relatively stable with the same period of last year.

While our trailing 12 months paid and the press customers and Ami you.

Increased by 18% and 65% year on year, respectively.

Speaker 4: which strongly demonstrated our continuously improved marketing efficiency.

Which strongly demonstrated our continuously improved our marketing efficiency.

Speaker 4: Our R&D expenses increased by 19% year-on-year.

Our R&D expenses increased by <unk> <unk>.

19% year on year.

Speaker 4: to RMB 366 million. And all adjusted RMD, expensive, capitalist table, with the same period the last year.

To RMB $366 million and our adjusted.

Adjusted R&D expenses kept a stable with the same periods of last year.

Speaker 4: Adjusted R&D expenses as percentage of revenue Reduced in the quarter showing continuous improving trend sequentially

Adjusted R&D expenses as a percentage of revenue.

In the quarter, showing continuous improving trend sequentially.

Speaker 4: Our GNA expenses increased by 27% year-on-year to R&B 200-3 million.

Yeah.

Our G&A expenses increased by 27% year on year to RMB $203 million.

Speaker 4: And our adjusted of GNA expenses increased by 14% to RMB 126 minutes.

Adjusted G&A expenses increased by 14% to RMB 126 minute.

Speaker 4: representing 8% of total revenue.

Representing eight.

8% of total revenues.

Speaker 4: excluding certain one-off expenses, the percentage of purchase data G&A expenses to total revenue showed a downward trend since 2022.

Excluding certain one off expenses.

The percentage of adjusted <unk>.

G&A expenses to total revenue.

Showed a downtrend.

Tom what trend since 2022.

Speaker 4: benefiting from our improving operating efficiency.

Benefiting from our improving operating efficiency.

Speaker 4: Net income was RMB 310 million, and adjusted net income reached RMB 568 million, more than doubled compared with the same period last year, and heating a record high.

Net income was RMB $310 million adjusted net income reached RMB $568 million more than doubled compared with the same period last year.

At achieving a record high.

Speaker 4: An order adjusted in that margin reached 38% up 16%.

Our adjusted net margin reached 38% up 16%.

Speaker 4: The Sunday points year on year and the sixth and the 19 percentage points quarter on quarter.

The percentage points year on year at a six and the 19 percentage points quarter on quarter.

Speaker 4: Net cash provided by operating activities was RMB 664 million, up more than 3 times year on year and heating are record high.

Net cash provided by operating activities was RMB 600, sorry.

$764 million.

More than three times year on year on a heating record hot.

Speaker 4: the significant increase primarily due to from the 16 percent sorry 65 percent year-on-year growth of calculated cash feelings as of June 13.

The significant increased primarily due to from the 16%.

65% year on year growth of calculated cash beliefs as of June surgeries.

Speaker 4: 2023, our cash, cash equivalent, time deposits and short-term investments will aren't the...

2023, our cash cash equivalents time deposit.

Short term investments were RMB.

Speaker 4: 12.8 kg and a long term fixed income investments will earn 2.0.

12, 8 billion and a long term fixed income investments were RMB 2.0, clearly.

Speaker 4: which totaled 14.7 billion.

Which totalled.

<unk> <unk> 7 billion.

Speaker 4: We are confident that our outstanding cash generation capability and ample cash reserve will support our commitment to further business expansion.

We are confident that our outstanding cash generation capabilities and ample cash reserve, we all support our commitment to further business expansion.

Speaker 4: And now for our business outlook, for the third quarter of 2023, we expect our total revenues to be between RMB 1.53 billion and RMB 1.56 billion.

And now for our business outlook for the third quarter of 2023, we expect our total revenues to be between RMB, One point 53 billion.

RMB, one point 56 beat it.

Speaker 4: with an year-on-year increase of 30% to 32%.

With a year on year increase of 30% to 32%.

Speaker 4: Given that their skew are a whole month of September before the quarter ends, some level of uncertainties is skew ahead.

Given that there is still a whole month of September before the quarter ends some level of uncertainty is still ahead.

Speaker 4: However, we are glad to witness an encouraging growth plan, leading by the improved recruitment demand since the beginning of August , especially

However, we are glad to whitney's encouraging growth trends, leading by the improved.

Recruitment demand since the beginning of August, especially.

Speaker 4: in online standalone purchase from SME.

In online stand alone purchase from Smes.

Speaker 4: As the autumn recruitment season approaches, which is our normally, which is our high season, we are also expecting better recruitment demand from larger companies in the coming months.

Yeah.

As the autumn recruitment season approaches, which is our normally which is our high season.

Also expecting better recruitment demand from larger companies in the coming months.

Operator: Ladies and gentlemen, thank you for standing by and welcome to the Kenju Limited Second Quarter 2023 Financial Results Conference call. At this time, all participants are in listening mode. After the speaker's presentation, there will be a Q&A session. Today's conference is being recorded.

Speaker 4: That concludes our prepared remarks. And now we would like to answer questions. Operator, please go ahead.

That concludes our prepared remarks, and now we would like to answer questions. Operator. Please go ahead.

Speaker 2: As a reminder to ask a question, please press star 11 or your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Thank you.

As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced.

Wenbei Wang: At this time, I will like to turn the conference over to Ms. Wenbei Wang, Head of Investor Relations. Please go ahead, ma'am.

Wenbei Wang: At this time, I will like to turn the conference over to Ms. Wenbei Wang, Head of Investor Relations. Please go ahead, ma'am. Thank you, operator. Good evening and good morning, everyone. Welcome to our second quarter, Kanzhun Industry Ernie's conference call.

To withdraw your question. Please press star one again please.

Wenbei Wang: Thank you, operator. Good evening and good morning, everyone. Welcome to our second quarter, Kanzhun Industry Ernie's conference call.

Please standby, while we compile the Q&A roster.

Okay.

Speaker 2: Our first question comes from the line of Eddie Wang with Morgan's family. Your line is no...

Our first question comes from the line of Eddy Wang with Morgan Stanley. Your line is now open.

Wenbei Wang: Joining me today are our founder, Chairman and CEO Mr. Jonathan Kanzha, and our director and the CEO of Mr. Fu Yu Zhang. Before we start, we would like to remind you that today's discussion will contain four world-looking basements which have based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance or achievements of the company to be matured and different.

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Can you guys talk about who can trigger opening remarks to the dollar.

She talked about filing in the future.

Oh, what's that saying when you take a look what share of Baidu that is enjoyed a wave pool.

Wenbei Wang: The company's culture will not be played on new reliance on global looking payments and do not undertake any obligation to update its forward-looking information, except as it's heard by law. During today's call, management will also decide certain non-dub financial measures for comparison purpose only, for the definition of non-dub financial measures and the reconsideration of that to non-dub financial results. Please see the earnings reviews issued earlier today. In addition, a webcast will play a disconference call, will be available on our website at iR.35.com. We set our non-term-to-call to businesses, our founder, Chairman, and the CEO.

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South Korea, you've got onshore the bookings.

A good question Jonathan.

What my Samsung dull pain that you're good to you.

Yes.

Wenbei Wang: Please see the earnings reviews issued earlier today. In addition, a webcast will play a disconference call, will be available on our website at iR.35.com. We set our non-term-to-call to businesses, our founder, Chairman, and the CEO.

Speaker 6: After bunches of examples of eight years ago, the full number of customer tools to be provided next year and province started to play out. I'd like to know how to offer good training for our New Government.

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Speaker 6: Well, what did you find each other? Thank you, Benjamin, for taking my question. I have two questions. The first is about the blue collar recruitment. As Michelle has mentioned, the blue collar recruitment is

Jonathan Kanzha: Hello, everyone. Welcome to our second quarter, today's industry earnings conference call. On behalf of the company and our employees, I would like to express our sincere gratitude to our users and veterans and friends of our companies for whom have been spending with us during all the difficult times.

What did you find yourself. Thank you management for taking my question.

I have two questions the FERC, yet about the blue collar recruitment.

Jonathan Kanzha: Welcome to our second quarter, today's industry earnings conference call. On behalf of the company and our employees, I would like to express our sincere gratitude to our users and veterans and friends of our companies for whom have been spending with us during all the difficult times.

Got the mansion tax.

Speaker 6: Although the data is improving the amount of the white color in terms of job posting, but what do you think as the macro improvement or the other factor?

Although the Uh huh.

Improving the amount of Bud light quarter in terms of job protein.

But what do you think Oh, you know as the macro improvement to all the other factor.

Speaker 6: will impact the demand of the white collar recruitment.

Uh huh.

Impacted the amount of white collar recruitment.

Speaker 6: And we all know that the blue color demand actually is stronger than the white color. So do you think this kind of dynamic in the recruitment in China will have the long-term impact on the competitive landscape of the online recruitment platform?

And we all know about the blue collar demand actually yet.

The stronger the white quarter. So do you think this kind of dynamic.

Jonathan Kanzha: First, I would like to share with you our performance for the second quarter of condition industry. We required that that revenue of RMB1.490 for the quarter at 34% year of year has related cash feelings with RMB1.62 million, 65% year on year. Our net income for the quarter was approximately RMB310 million, and our objective net income which exposed share-based compensation spaces increased by 135% year-on-year to around RMB570 million. This represents highest quarterly quarter in the company's operating operation of history.

Woman Inc.

Pharma will happen long term impact.

Competitive landscape of the online recruitment platforms.

Speaker 6: My second question is, in terms of the new addition of the annual subscription enterprise users, are they from the enterprise that has been already used as an online platform and be attracted by us? Or they are never used any of the online platform. It's actually just a fresh new enterprise that's go to our platform. Thank you.

My second question yet.

In terms of the New addition of the new.

Subscription.

Parts of users.

Are they from the.

The enterprise that's already USD.

On the online platform attracted by US all day I remember you with any of the online platform.

Actually just.

The fresh new occupier tactical travel platform. Thank you.

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Speaker 7: Say some world, a lot of jobing H at a mega player.

So it's somewhat choppy and how many of the major player.

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Speaker 7: Is he himself or someone else? But there is always a reason for this.

Sure.

But I can tell you the question.

Jonathan Kanzha: The business model has been developed for over 10 years, has once again been tested over strong profitability. In the second quarter, our strong user growth trend continued from the first quarter. The newly verified users for the quarter reached RMB14 million, and average monthly active users on the positive net rose to RMB43.6 million, 65% year-on-year. Among all the users, we serve blue-collar users and users from second and lower tier cities with faster, benefiting from our continuous efforts in a quite long period to expand our penetration to lower tier cities and blue-collar calculations.

Speaker 3: Thank you for your question. I would like to answer the second question.

Okay.

Thank you for your question I would like to answer the second question first.

Speaker 3: So in the past five, two, six years, I'm all over the online community.

In the past five to six yes.

All lines.

Speaker 3: For a new customer who began to find new contracts with any platform, there is always someone to help him to...

Before noon.

Yeah.

Right.

And that's.

All right.

Speaker 3: converting to helping that there is a process from the world.

Sure.

Hudson.

Perfect.

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Okay.

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Speaker 7: So, the shutter went on this window.

Jonathan.

Thanks for letting me chip.

Speaker 3: Our role is to help, to connect a lot of new users who have never

Our goal is to.

Sure.

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Speaker 7: and whether or not there is any such contract and the wrong.

Financially the annual contract you guys Shake out, Florida noncore, the double set with Shaanxi installment could you touch on what.

Speaker 3: The majority of our annual contract customers, I believe, is from these comrades from our own.

Vast majority of our annual contract.

I believe from.

Correct.

Unique.

Speaker 7: Let's more flavor.

Yes.

Well, that's you know digital chips.

For tomorrow.

Speaker 7: Washington We came down to like 10 to maybe 2 years. Where this year. Then we worked together. This year I think and the new year, I think this year's next year, our recent crisis.

Sure.

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Chandon or coastal social how as you well mentioned you talked about how well it does change our course.

Speaker 3: I saw this year for the second quarter, our offline annual contract.

Jonathan Kanzha: In terms of enterprise users, over average monthly active users reached a historical high in this quarter, primarily given by increasing demand from blue-collar industries, SMEs, and lower tier cities. As well as transportation and logistics warehousing, we are more urban and supply chain logistics will call a work that will increase significantly. [inaudible] Wang, Wei Xiong, Wang, Wei Xiong, Wang, Wei Xiong,[inaudible] enable us to achieve good progress as we capture the opportunity and rising from blue-collar workers and SME's growth this year.

Yes.

For the second quarter looked like.

Speaker 3: Majority I from the commversion of online.

That's right.

That's on the conversion.

All right.

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Speaker 3: However, according to our observation, there is evidence that the trend.

However, according to our observation right.

That's true.

Speaker 3: The customers from other online ecommon tthform cord through our customers to trp.

The customers online.

Our council.

Chris.

Speaker 7: I am not sure whether I am breaking up with the clothes store myself from the quindi How much of this would make an effort in meeting their customers that put the whole family together But, you will understand that, there is a lot of money,

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Click on Condor.

Speaker 3: from an operational perspective, it's not simply switching from A to Z, but dividing their budget into more cooperative partners.

Yeah.

From a recruiting perspective.

It's not so great switches.

But what is your budget.

It's a more cooperative.

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Speaker 3: the fixed external condition that is required for the white collar equipment demand to recover, I believe.

Joining a condition.

For the white collar.

Albert.

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Speaker 3: the effect on the cover of white polypumate on the tumult.

In fact on the Colorado wildcard.

Speaker 3: The first mechanism is that the military, that we call a first, will expand to our industries to help us those industries.

Sure.

So first Michael Matthews.

We don't see that as a color for it.

Thanks Albert.

To help with that.

Speaker 5: For example, in the cultural, sports, entertainment, media, new energy, car and post-market, it actually recovers faster. Then it will gradually drive the white-collar recruitment demand in the industries it can affect to recover.

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Speaker 3: For example, culture, work, entertainment, media, new energy, or to model automatic all these industries, which are showing encouraging the cost of equipment trends will impact other industry, which can affect it by the industry.

Right.

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Neil.

Automobile.

Mobile aftermarket.

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Jonathan Kanzha: Moving forward, we will remain committed to innovation and further improve in all this area. We have always believed that a company that has become a corporate market, is willing to pay for its price. In the past, it was you who wanted to provide for its price. In the past 12 months, it has become a corporate market that has become a corporate market that has become a corporate market that has become a corporate market.

Speaker 3: In the system mechanism is that as time goes by, they were more concrete evidence, which proved that the marketing to cover you. They wanted to enhance people's confidence to increase their recruitment.

And this is from Matthew.

As the time goes by without more concrete.

Which proved that with Barclays.

A lot of people.

Chris.

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Speaker 3: For example, in the first quarter of this year, the large companies recover is relatively worse compared to the SMEs, which I assume the larger companies might be affected by confidence.

For example at the door.

But in the first quarter.

Jonathan Kanzha: We have long believed that in a mature market, in enterprise service, people are willing to pay for value, as long as what you are offering is truly valuable. By the end of the second quarter, our paid enterprise customers for the 12 months, resounded and resumed its fast growth momentum, hitting a record high of 4.5 million, plus 18% year-on-year and 13% quarter-on-court. The market has been continuing to maintain its growth momentum. The second quarter of this year was challenging.

The last comparable.

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Okay.

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I assume the other companies.

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Speaker 3: However, since the second quarter, we have written that the enterprise is with more than 10,000 employees and the median price enterprise is between 500 to 1000 employees here recovered at match time.

However.

Second quarter, we have leases.

Enterprises more than telecom.

And the medium sized enterprises.

500 to 1000.

Yeah recovery.

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Jonathan Kanzha: The second quarter of this year was challenging. However, we have witnessed some positive updates due to change from an operational perspective. Following the graduation season in July, we saw overall human demand on how platforms cover quickly and has changed as a valuable promise to our portrait is the beginning of August. The blue-cold urban service industry continues to outperform across all sectors. While wearers' white-collar positions have stabilized and started to cover, especially white-collar positions across personnel, finance, administration, operations and manufacturing.

Valeant ownership.

Jiggle wishing the clients is shifting well kind of.

Jonathan Kanzha: However, we have witnessed some positive updates due to change from an operational perspective. Following the graduation season in July, we saw overall human demand on how platforms cover quickly and has changed as a valuable promise to our portrait is the beginning of August. The blue-cold urban service industry continues to outperform across all sectors. While wearers' white-collar positions have stabilized and started to cover, especially white-collar positions across personnel, finance, administration, operations and manufacturing.

Speaker 5: … jically flyers. Maybe I could lead to further Seattle. A

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Jonathan you should hold the trigger should that Sean.

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Speaker 3: And for your question about the supply and demand, whether there is a direct or imbalance, we have for industry like real estate and the internet, we do so.

And a follow up question about the weather.

Sexual imbalance.

Really helpful.

That's great Mike.

Speaker 3: Climbing qument demand but I don't think has beened done that to concrete structural vance.

We do so.

Hi, Mark.

I don't think.

Not too concrete structural.

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Speaker 8: That's my answer for your question. Yes, sir, go ahead. Excuse your ad.

And Thats my answer.

Sure Ed.

Thank you.

Speaker 2: Our next question comes from the line of Timothy Zau with Goldman Sachs. Your line is known.

Our next question comes from the line of Timothy Zhao with Goldman Sachs. Your line is now open.

Jonathan Kanzha: As a result, the number of our active enterprise users reached a new high for this year as well as a record high in our corporate history. Also, this can lead to the supply to demarcation on our platform along as a ratio of drug secret to enter price users is continuously improving. I would like to thank you for your understanding and support of our company. I would like to thank all of you for your support.

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Speaker 9: For next turning point issue

Jonathan Kanzha: I would like to thank you for your understanding and support of our company. I would like to thank all of you for your support. Thank you.

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Speaker 9: Why you should Jud long now a govern. You charge a. I would see a home in the, since I, if you L me the coach that year- we were not year- could up. Now you see, do you have the tr literally openall const milill long. No, her quite Y.

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Speaker 9: to questions. I think first in the current market environment where we see a bigger number of job secrets and recruitment demand, what is our strategy?

I think two two questions I.

I think first in the current marketing environment, where we see a bigger number of geography credit dander recruitment demand what is our strategy of improving the ARPA as well as the paying ratio off the enterprise users and do we have other monetization.

Eddy Wang: Thanks, Jonathan. Hello, everyone. Now, let me walk through the details of our financial results of the second quarter of 2023.

Speaker 9: and we have other meditation considerations on our minds.

Jonathan Kanzha: Thank you.

Consideration or.

Speaker: Thanks, Jonathan.

Our massive user base.

Speaker 9: And what is our guidance or our look on the paying number of customers, as well as our food trend into the second half of this year? And if we break it down into SMEs, up.

And what is our guidance or outlook.

Speaker: Hello, everyone. Now, let me walk through the details of our financial results of the second quarter of 2023. In this quarter, we reached a record-breaking results across different sets of operational and financial figures, including MAU revenues, total pay-to-enterprise customers, profitability, metrics, and operating cash flows. Driven by our robust user growth and healthy user engagement, our revenues maintained rapid growth, momentum and a heat of new high at R&B 1.49 billion, representing a solid 16% quarter on quarter growth and 34% year-on-year growth. Moreover, our calculated cash billions reached the R&B 1.62 billion of 65 year-on-year. Total paid enterprise customers in the 12 months.

Eddy Wang: In this quarter, we reached a record-breaking results across different sets of operational and financial figures, including MAU revenues, total pay-to-enterprise customers, profitability, metrics, and operating cash flows. Driven by our robust user growth and healthy user engagement, our revenues maintained rapid growth, momentum and a heat of new high at R&B 1.49 billion, representing a solid 16% quarter on quarter growth and 34% year-on-year growth. Moreover, our calculated cash billions reached the R&B 1.62 billion of 65 year-on-year. Total paid enterprise customers in the 12 months.

The pin number.

<unk> customers as well as ARPA trend into the second half of this year and if we break it down into Smes offline beatings and white collar versus blue color.

Speaker 9: color versus blue color, what would be the breakdown change over time in the second half? And secondly, it's on the OP margin in the second half. Just wondering.

B, the breakdown change or timing to second half and secondly is on the op margin in the second half I'm. Just wondering if management have any guidance that would be very helpful. Thank you.

Speaker 5: Q1. Did you guys remember the question? Q1. Did you guys remember the question?

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Speaker: [inaudible] Okay, so I'll start again.

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Speaker 5: In fact, we see a tree. This tree is in the year 12, the cost of our Bitcoin client. From the client's tree, it is 400,000 yuan. From the company's tree, it is 200,000 yuan. In fact, in China, the price of the price of 500,000 yuan is very low. We have also seen that this year,

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Speaker 5: I think it's a great opportunity for us to see the world in a way that is more than just a reality. I think it's a great opportunity for us to see the world in a way that is more than just a reality.

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Speaker: So in the quarter, in second quarter, we reach a record-breaking results across different set of operational and financial figures, including MAU, revenues, total paid enterprise customers, profitability metrics, and operating cash flows, driven by our robust user growth and a healthy user engagement, our revenues maintained rapid growth momentum and hit a new high at RMB 1.49 billion, representing a solid 16% quarter on quarter growth and a 34% year on year growth. Moreover, our calculated cash billions reached the RMB 1.62 billion, our 65% year on year.

Eddy Wang: [inaudible] Okay, so I'll start again. So in the quarter, in second quarter, we reach a record-breaking results across different set of operational and financial figures, including MAU, revenues, total paid enterprise customers, profitability metrics, and operating cash flows, driven by our robust user growth and a healthy user engagement, our revenues maintained rapid growth momentum and hit a new high at RMB 1.49 billion, representing a solid 16% quarter on quarter growth and a 34% year on year growth. Moreover, our calculated cash billions reached the RMB 1.62 billion, our 65% year on year.

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Thank you for your question.

Speaker 3: So in the first and second quarter of this year, we do have written a lot of job secrets, we find it more difficult to find a job, and much easier for the enterprise to do the improvement. So, but we have been quite well-were questions on whether we should initiate kind of.

In the first or second quarter.

We do have.

Lockhart Duffy will find its more difficult to find a job.

Max you guys took.

Took place.

So we have been quite we're very cautious on that.

Hum.

Speaker 3: monetization for the drop to cards who are much more difficult on their discocercumstances and we take which will not action.

Monetization.

Subsequent one much more difficult.

And we take we took no action.

Speaker 3: And for the enterprise users, I just talked about a member which is our last customer paid enterprise customer members in 2.5 medium and which is approximately over 2 medium and paid enterprises. That's the very small portion compared to more than 15 medium enterprises in China.

For the interim pricing.

Speaker: Total paid enterprise customers in the 12 months and in July 30th, 2023 reached the 4.5 million up 13% quarter on quarter, our record 5, and back to fast growing trend, our PPU for paid enterprise customers decreased the slightly, both sequential and year on year, mainly due to faster revenue growth for small sized accounts, as recruitment demand from SMEs recovered better compared to larger companies. Moving to the cost size, total operating cost and expenses for this quarter will RMB 1.31 billion, up 26% year on year.

Eddy Wang: Total paid enterprise customers in the 12 months and in July 30th, 2023 reached the 4.5 million up 13% quarter on quarter, our record 5, and back to fast growing trend, our PPU for paid enterprise customers decreased the slightly, both sequential and year on year, mainly due to faster revenue growth for small sized accounts, as recruitment demand from SMEs recovered better compared to larger companies. Moving to the cost size, total operating cost and expenses for this quarter will RMB 1.31 billion, up 26% year on year.

Just a couple of numbers.

Our 12 month enterprise risk.

$5 million, which is approximately over two meters.

Until prices, that's a very small portion.

More than 50 medium enterprises.

Speaker 3: So we have learned that from our successful practice in blue colors and more interested this year, we have, we thought that our business model is very adapting so we are continuing to bring more customers to our platform and convert it to a paid customer.

So we have learned is that a problem.

Our success.

Have a practice in blue collar or something more.

We have no.

We saw that our business model.

So we.

Convenient three more cuts of restaurant platform.

With that customer.

Now, let's say a woman seem to.

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Speaker 5: and if you can

Shari agenda Google.

Google and you can see.

Speaker: Hello? Excluding share-based compensation, our adjusted operating cost and expenses increased by 18% year on year to RMB 1.05 billion in this quarter. Our adjusted operating margin is 29.2% for the quarter, up by 8.8% points year on year. Cost of revenues was RMB 270 million, up 55% year on year representing a growth margin of 81.8% up by 1.1% point compared to the last quarter. The growth margin started to bottom out from first quarter and this trend is mainly due to sequential revenue growth in the second quarter.

Eddy Wang: Hello? Excluding share-based compensation, our adjusted operating cost and expenses increased by 18% year on year to RMB 1.05 billion in this quarter. Our adjusted operating margin is 29.2% for the quarter, up by 8.8% points year on year.

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Speaker 3: and for your question whether that is you

Okay.

And for your questions.

Speaker 3: in terms of all mental strategy, we believe that if you can provide higher value, if you can provide all the scientific research to get all the information from students,?

Keith.

Based upon that.

Eddy Wang: Cost of revenues was RMB 270 million, up 55% year on year representing a growth margin of 81.8% up by 1.1% point compared to the last quarter. The growth margin started to bottom out from first quarter and this trend is mainly due to sequential revenue growth in the second quarter. Our sales and marketing expenses were RMB 472 million, up 18% year on year, adjusted sales and marketing expenses was RMB 408 million, up 12% year on year.

In terms of online how does your strategy.

If you can provide higher value and a few others.

Got it.

Speaker 3: you should certainly be able to do something to more things in the EO motivation products in your commercial products. That is actually part of the things what we are doing. And hopefully you can be patient in your own treatment.

Yeah.

That is we can.

Ken.

Two more.

Pardon me.

Our commercial products.

Absolutely.

Hum.

Patients.

Got it.

Speaker 5: I hope to see you in the next video.

<unk> says it all.

Oh sure the Chongqing opened up several a few rollouts later.

Speaker: Our sales and marketing expenses were RMB 472 million, up 18% year on year, adjusted sales and marketing expenses was RMB 408 million, up 12% year on year. This increase was primarily due to increased the head count in sales department. Notably, ran advertising and customer acquisition costs remained relatively stable with the same period last year, while our trading 12 months paid enterprise customers and MEU increased by 18% and 65% year on year. Respect.

Speaker 3: Regarding your question about the trend in our poor power system.

No question about that.

Yeah.

Our system.

Speaker 4: Thanks, Team C's questions. So regarding the paid enterprise customers number, in the quarter, we did record a very healthy rebound for the paid enterprise customers number. So that metrics was back to 4.5 million, for the three, 12 months paid enterprise customers. The average paid enterprise customers deserve the best payment giraffe for four years and a year earlier.

Yes.

Thanks, Tim as these questions so regarding the <unk>.

The enterprise customers number.

Eddy Wang: This increase was primarily due to increased the head count in sales department. Notably, ran advertising and customer acquisition costs remained relatively stable with the same period last year, while our trading 12 months paid enterprise customers and MEU increased by 18% and 65% year on year.

In the quarter, we did record a very.

We're a healthy rebound for the pay to enterprise customers number.

So that's the math.

Metrics.

<unk> was back to full <unk> 5 million.

For the trailing 12 months pay to enterprise customers and.

Speaker 4: In recent months, we witnessed a very quick increase for the small medium-sized enterprise users paid to use our service. So this is the main driver behind of that increase number. So their purchase of our service is more through online self-service purchases.

Uh huh.

In recent months.

We witnessed.

Very quick.

Eddy Wang: Respect.

Increase.

The small and medium sized enterprise users.

To use our service. So this is the main driver behind the increased numbers.

Speaker: [inaudible] Wang Wang Wang Wang Wang Wang, Wei Xiong, Yang Bai, Peng Zhao, Yang Bai, Peng Zhao, Yang Bai, Peng Zhao, Yang Bai, as the autumn recruitment season approaches, which is our, normally, which is our high season, we are also expecting better recruitment demand from larger companies in the coming months. That concludes our prepared remarks and now we would like to answer questions. Operator, please go ahead. Thank you. As a reminder, to ask the question, please press star 11 or your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by where we compile the Q&A roster.

Eddy Wang: [inaudible] Wang Wang Wang Wang Wang Wang, Wei Xiong, Yang Bai, Peng Zhao, Yang Bai, Peng Zhao, Yang Bai, Peng Zhao, Yang Bai, as the autumn recruitment season approaches, which is our, normally, which is our high season, we are also expecting better recruitment demand from larger companies in the coming months.

No.

Their purchase of our surveys is more through online self serve purchases.

Speaker 4: So basically because of their contribution to the online, you know, their contribution to our total revenue seems increasing. So that drags a little bit of the overall up.

So basically because of their contribution to the online.

Their contribution to our total revenue crazy So that's <unk>.

So a little bit of the overall optical.

Speaker 4: In terms of the large enterprises, their R-Pool, this year's R-Pool compared with the prayer years is a little bit lower. But sequentially, we are witnessing that their R-Pool is recovering. So from the beginning of this year, we're continuously seeing that their R-Pool are, you know, recovering.

In terms of the large enterprises.

There are pool this year's Oracle comparator with prayer.

<unk> is a little bit lower but.

Sequentially, we are witnessing that.

They are all port is recovering so from the beginning of this year, we're continuously seeing.

Seeing that too.

There are pool are you know.

Are increasing.

Speaker 4: So in terms of the sector.

So in terms of the.

Sector.

Speaker 4: Blue collar, particularly urban services from lower tier cities, contribute higher for the paid customers.

Blue color, particularly urban services from lower tier cities.

Contribute to higher for the paid customers.

Speaker 4: The quick rebound of the paid enterprise customers, this fact also reflects, I think, firstly, this is a sign of a recovery of the many aspects of the economy. Secondly, our recruiting services can bring good value propositions to those businesses. So that's the reasons behind.

<unk>.

The quick rebound also.

Paid enterprise customers. This fact also reflects I think firstly this is a sign of a recovery of the many aspects of the economy Secondly, our recruiting services can bring good value propositions to those businesses.

So that's the.

Reasons behind.

Speaker 4: And in terms of the company's margin,

And in terms of the.

Company's margin.

Speaker 4: In this quarter, so basically in first quarter and second quarter, we continue to be saw faster revenue growth.

Sure.

In this quarter, so basically in the first quarter and second quarter, we continue to see.

Salt faster revenue growth.

Speaker 4: So given the future revenue streams will continue to rise, while major cost and expensive items are kept as mild growth pace, we think that our operating margin will maintain at healthy level and with upside potential.

So given the future revenue streams will continue to rise.

One of them.

Major cost and expenses items, our captain Marvel.

Gross pace.

We think that our operating margin will mean.

We maintain a healthy level and with upside potentials.

Speaker 4: This comment is more like a mid to long term comment. We expect an operating model to steadily improve along with good top line growth.

This comment is more like a mid to long term comment.

We expect our operating margin to steadily improve along with good topline growth.

Speaker 4: But in short term, it will subject to sustainability and other one-off events.

In short term it will subjected to seasonality and other one off events.

Thank you that's all of our answer to your question.

Sure.

Speaker 2: Thank you. Our next question is from the line of UBay with Haitong International. Your line is now open.

Thank you. Our next question is from the line of Uba with high tongue International Your line is now open.

Okay.

Speaker 10: Thanks, Director M.?? work on these issues. The first has to be regarding the post which was when President Zhao mentioned on ouruçiya meeting, an opening for this month's sequential pors afternoon reading with a recent proverb. So I'd like to end in a word about this match with local rules. We need to find out what those rules were all 33 years old as like. For instance, would there be any peak effects of launching a new career upward? Let me add, this is the first issue.isinung is how something looks ahead into Christmas party Open was before the conference and later as I popularised the Korean Spring of the Masters, how you were planning yourionar girandgame in a new year? What was the best use of all of the practices at the conference?

Hi.

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Yeah.

Sounds from Delhi, California, Tom Carson with Sandy Chunky, though you call, Jamie Apache's shirts that Montana, and Michigan with that woman, though you got to take all your Cynthia Shaw Mr. Andres <unk>.

Surely you hold that she did that just sure Thiago and cannot wait to see things that you got <unk>.

Speaker 10: Thank you, management, for taking my questions. I actually have two for today. The first one is regarding our recent recovery trends.

Operator: That concludes our prepared remarks and now we would like to answer questions. Operator, please go ahead. Thank you. As a reminder, to ask the question, please press star 11 or your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by where we compile the Q&A roster.

Thank you management for taking my questions actually have to for today.

The first one is regarding our recent recovery trend.

Speaker 10: like Zhou Zong has just mentioned, we've witnessed some encouraging trend from enterprise users in August .

Johnson has just mentioned we've witnessed some encouraging trends from enterprise Caesars in August so I like to further understand the start comply to our normal seasonality or is that something that's quite unusual for this year.

Speaker 10: So I would like to further understand the stat complied our normalist's analogy, or is it something that's quite unusual for this year? And then within that, what is the recovery momentum out there for our KAA accounts? Is management could share any operating metrics like engagement ratio, paying ratio, and R2N, et cetera, that we much appreciate it? So that was my first question.

And then within that what is the recovery momentum out there for hours.

Hey accounts, if management could share any operating metrics like engagement ratio paying ratio and <unk> et cetera that would much appreciate it. So that was my first question and then my second question is a little bit broader we all acknowledge that this year. It seems that macro environment has been a little bit weak.

Eddy Wang: Our first question comes from the line of Eddy Wenbei. Thank you for your question. I will start with this call to Erlin.

Eddy Wang: Our first question comes from the line of Eddy Wenbei. Thank you for your question.

Speaker 10: And then my second question is a little bit broader. We all acknowledge that this year is since that macro environment has been a little bit weaker than we thought it would be.

Eddy Wang: I will start with this call to Erlin. I have two questions. The first one is to say that before the opening of the market, the blue sky is very beautiful. The white sky is in the back. I would like to ask if there are any foreign conditions in the market, will it be better? Let us know your opinion. If you look at this issue, China's white sky is not in the middle of the market or in the middle of the market, there is a risk of unemployment. If there is a situation like this, what will be the impact of the exchange rate in our line?

Eddy Wang: I have two questions. The first one is to say that before the opening of the market, the blue sky is very beautiful. The white sky is in the back. I would like to ask if there are any foreign conditions in the market, will it be better? Let us know your opinion. If you look at this issue, China's white sky is not in the middle of the market or in the middle of the market, there is a risk of unemployment. If there is a situation like this, what will be the impact of the exchange rate in our line? This is the first question.

Eddy Wang: This is the first question.

Speaker 10: So I'm just wondering under such a condition, what is our top strategic priority for now or maybe for the remaining couple of months this year and for next year as well? So at the same time, what are the things that we might just want to lay back a little bit to wait for better opportunities in the future? So that was the second question. Thank you, management.

Then we thought it would be so I'm just wondering under such a condition what is our top strategic priority for now or may be for the remainder remaining couple of months this year.

And for next year as well so at the same time what are the things that we might just want to lay back a little bit to wait for better opportunities in the future. So that was the second question. Thank you management.

Speaker 5: Thank you for your question. The first question is related to a detailed information. In the market of our research, there are two words related to data. One is called gold-three silver-four. One is called gold-nine silver-four. It is to use gold and silver-four. It is called good business. In fact, gold-nine silver-four, it is also started from August .

Although she is an intervention.

Lindsay.

According to U T J assume angel.

Well known to the Choppiness downhole tissue.

Speaker: The second question is[inaudible] Hello, I'll answer your question. Thank you for your question.

Jonathan Kanzha: The second question is[inaudible] Hello, I'll answer your question. Thank you for your question.

T J when you go to our team.

You go to our team Julien.

I am Kim <unk>.

Showing you how we got the most.

She is on single issue Chinese homebuyers and crush it.

Speaker 3: Thank you for your question. For your first question, whether you're holding it.

Thank you for your question.

For your first question.

Speaker 3: for the online recruitment market. There are two keywords. First one is the golden march and silver people. Next one is golden September and silver October , which both means a better market.

Okay.

For the online recruitment market.

Key West first line go to March.

April.

That's it for me.

Rich Barton is a better market condition.

Speaker 3: And the system went for golden September and October , which is definitely starting.

That's a mouthful go into September and October Richie definitely Destocking.

Speaker 5: Children touch here, the GR will die here. In way should these earning our suniate cheer. Both Hawks should be children earning our IGN in Jo. Both tch here. Jo encourage. Child ad is how the children trad. Sid a childrenjo.

Children thoughts yeah. The glass, if you look on dice, yet English and he's already hired senior chew up that had both Akshay Italia, albeit a shakeout.

Our son, Joe does she doesn't.

She had you encourage your child or does your holiday schedule.

Surely that showed up.

And this has more additions to the latter.

Speaker 3: For all those graduates from top universities, who will graduate in July , 2024, many larger companies were starting to do the cutting for those top hadn't during September to the winter.

Well all of those groups.

Graduates from top top universities.

In July and he could give for.

Many larger companies, who are starting to do that.

Hello.

During September to November.

Speaker 5: the materials stocks really include a SaaS manufacturers ? Chuck API

So it seems like you used to like Nissan July what Shanxi not highly you go out to them go towards in Chi children timetable playful useful.

Yeah, John H C <unk>, which I'm sure you saw that we shot that built yet.

Speaker 3: On top of this is another factor that I believe the improvement of the amount.

On top of a quicker than that.

Another factor is that my T V.

Speaker 3: Gradually encouraging alongside their economy and reaching this

Good luck.

Gradually Howard.

Part of this economy and Gucci.

Sure.

Speaker 5: One night we saw the fireflies reaching early bak?n us

Hello.

Speaker: I'll answer your second question first. In fact, in the last five or six years,[inaudible] Thank you for your question. I would like to answer the second question first. So, in the past five or two or six years, among all the online commentaries, for a new customer who began to sign a contract with any platform, there is always someone to help him to come further, converting to help him that there is a process from the world to find.

Jonathan Kanzha: I'll answer your second question first. In fact, in the last five or six years,[inaudible] Thank you for your question.

Oh, I'm I'm kind of talking to other you'll hold grandma other niche in golf.

Speaker 3: We love it. The daily active enterprise users number have reached the historic

We love it.

At.

Enterprise user.

Number I have reached a historical high.

Speaker 5: It is increased rapidly in

In Poland, Toggle, Michelle colloquium leather costs jumping on torturing janitorial Chrysler was termed out T shirt.

Speaker 3: The enterprises, the all kinds of prices, large companies, leading sites and small sites, all sites of companies have shown a very fast recovery trend.

Enterprises.

All kinds of Friday, large mid sized and small sized well of course as a company.

Very fast recovery.

Speaker 5: To be very honest, I now share with you

Sure sure sure to be very honest well it should have some machine.

Jonathan Kanzha: I would like to answer the second question first. So, in the past five or two or six years, among all the online commentaries, for a new customer who began to sign a contract with any platform, there is always someone to help him to come further, converting to help him that there is a process from the world to find. [inaudible] And back to your first question, the big external commission I require for the white-collar to come to democracy cover by the day of the time.

Bush RPT issue lungs, either dollar two-shot BD issue anyway without playful.

Actually our controllers should answer your question.

The movie channel, what kind of dropping that chooses.

Speaker 3: To be honest, I cannot clearly distinguish which part is from humanity and which part is from the current economy, but I still need to take some time to observe. At least the current trend is quite in current.

To be honest I cannot cook.

English which card.

Okay.

I'm going to cover.

But can I still need to take some time.

To me, that's kind of changed quite a bit.

Speaker 5: I would like to add this to the case. It Estados societies via TV channel Where you can see the sculpture Over immediate levels of drug use As it is done during meeting oldu?rance, We can see xiao ? Benz, The US May 11 world 9 in neither ST nor SNS

So you don't think Hey, cool event, you don't just yet.

Thank you Sean grandmother, she at Tata Xinjiang Julia Sean So you've seen that finally, you're calling me to show you all that this year.

Speaker 3: For the recovery of key customers, the sound is quite simple, that we have thought that the enterprises with more than 500 employees is newly posted, number of newly posted jobs, the growth rate.

Speaker: [inaudible] And back to your first question, the big external commission I require for the white-collar to come to democracy cover by the day of the time. This is the first time in a long time, the first time in a long time, the first time in a long time. The energy that you cover first will stand to our energy to help the energy to cover. For example, culture, work, entertainment, media, new energy, automotive, automatic, all-wish industry.

I'll then cover our key customer.

But we saw that.

We completed more than 500.

This new policy member pulses jobs at Goldstrike.

Speaker 3: the financial flow straight that share the Comparä finished and higher it this

The sequential growth.

Compared to last until prices.

Speaker 5: So, on my shoulders...

Good morning.

Hello.

So it's John.

Sean The hall.

Speaker 5: I will tell you a few ideas. The first idea is that we have been here for so many years. We are based on the MPS.

We're going to put a body shop <unk> Shanghai Steve.

Steve It sounds like just shortly Jim ammonia, that's egencia that you ship.

Well then you MTS late Q4 that pulled.

Speaker 5: But don't keep up on for the shantity.

She bought.

Or in Florida, Shanghai already.

Okay.

Speaker 3: And in terms of a company strategy, I would like to share with you several things we have been holding to in all this years. The first one is based on the NTS, we continue to increase our market.

And in terms of carbon strategy I would like to share with you several forward.

We have been holding true.

Yes.

<unk>.

Based on the MTS.

I'm not too sure.

Speaker 5: Bx So I think we still have a long way to go.

Tell you woman in context for what a woman coaches shopper, yet push N kom, a Dutch yeah sure.

<unk> Joshi were down about launch, where you which haven't yet John.

So whichever one Ohio Center, Tom are really awesome.

Speaker 3: As we said, we have child- child-childing health month high-entreprises nearly over 2 million, which is a small portion compared to 15 million until the crisis in China. We still...

As he said, we have turning customer tightens up prices mirrors over 2 million, which is a small portion.

Hi, Lee.

You still have the right way to go.

Speaker 5: whatther the tradition selflf to showwoman. Yes, she can the 20 and should sho that T ful naturural. You wants a name? The tis E about co territory curush ING with the teach and your shop put autotal.

The Chinese Shanghai Auto show up man, Yes, you catch the 20th.

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She had cushion in Georgetown.

Put that into a total.

Speaker 3: Then our system strategy, which is also something we have been doing for quite a long time, which is to continue to input in that technology, not only for application technology, but also career science for the mental studies.

And our strategy, which is also something we have.

Quite a long time.

To compete.

And I'll, let Dean Mcdonald.

Technology also reassigned from.

Speaker 5: Should you ask the arguab these other? J could italallian AR woman kindnot learning the food? sh should have food. dont have some crack. What your medyour issue Don engy would total. Should 't want to play that.

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Could you just answer Timna argued Luke junk with its finding shot.

And then kind of landing a flu shot show should have turned out.

What do you want <unk> issue that you have.

Total shadow women cleanup.

Speaker 5: bying 22 weshow womanly J the doororgia.

Uh huh.

Flagging Twilio in Chile, the shovel or monthly do you have the dual challenge.

Speaker 3: Actually, for the second quarter, which is about to be tough time, we can capture the growth in the blue color and the lower two cities. I believe it is the result of all these years of continuous investment technology which helps us to capture the opportunity when the environment allows.

Actually for the second quarter, which is that much of a tough comp.

We can cut checks.

In the blue collar because electricity.

He changed the results.

Yes.

Alrighty rich how question.

Okay.

Environments.

Speaker 5: So sure you putud the data giveue her due CY and your total. What your teacher? A herdoor woman So ter the conution in the concert partial seent E gear to the AR.

So you should have been done.

Q4, so that's useful color your annual total of what you would each have a handle all women so I'm going to consider changing the pace she central jokes with the RFS.

Jonathan Kanzha: This is the first time in a long time, the first time in a long time, the first time in a long time. The energy that you cover first will stand to our energy to help the energy to cover. For example, culture, work, entertainment, media, new energy, automotive, automatic, all-wish industry. [inaudible] I think it's a good idea to have a good relationship with the whole world, but I think it's a good idea to have a good relationship with the whole world.

Speaker 5: Many times when I think it is Two-Z premier of An China reflects its abland to its power. Even the ability to achieve good will be given to China in Taiwan in this mode of accounting. This immediately functions as watching the property version... ...had earned a lot of paid attention ... ...for making gesagt decisions. This violet canvas is so bright that it is like a eternally lifelike...

And I'll show you that yes sure.

Julia to try and negotiate.

Negotiate to Cologne blending down to about <unk>.

Yeah.

Speaker 3: In the final standing for our continuous increase in maximum technology.

In the mountain understanding for our continued to increase investments in technology.

Speaker 3: which is also what we saw for all those...

Which is also what we saw.

Speaker 3: larger companies, at the most companies we respect, we respect their outstanding alpha coming from their own kind of abilities, allowing to adapt to new opportunities.

Larger companies.

With respect is that fair.

Oh.

I love that.

Okay.

Speaker 5: I just want to thank you so much. That's my answer for your questions.

Well he'll have modal shahinian.

That's my answer for your question. Thank you.

Speaker: [inaudible] I think it's a good idea to have a good relationship with the whole world, but I think it's a good idea to have a good relationship with the whole world. [inaudible] think it's a good idea to have a good relationship with the whole world, but I don't think it's a good idea[inaudible] So, to be honest, let's take a look at a book. This book is in the past 12 months, the cover of the cover of the cover is 400,000, and the cover of the company is 200,000.

It does.

Speaker 2: Our next question comes from the line of Zong Wei Zong with UVF, your line is open.

Thank you.

Our next question comes from the line of Zhong Wei Zhang with UBS. Your line is now open.

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Speaker 11: The why one in know, josha or G, you damage an afrflanciian count. ribution raong on you the chanching sat and quick old how your P ates should had a sum colleagues should have going to about it. You have now way have to be fin AL.

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Now we have to define Jeff.

Speaker 11: Thank you, Management for taking my questions. First, I just want to follow up on the recovery pace of the enterprise hiring demand given that we're experiencing a long period of uncertainties in the macro. And the enterprises seem to lean forward or focus more on cost controls. And

Thank you management for taking my questions.

First just wanted to follow up on.

On the on the recovery piece of the enterprise housing demand.

Given that we are experiencing a long period of uncertainties in the macro.

Enterprises seems to lean forward or focus more on cost controls.

Speaker 11: But does that will that last a little bit longer, which means that after the macro environment stabilizes and started to warm up enterprises might still need a little bit while to restart, you know, a high count expansion. And second, just given our very resilient cash position and the profitability, just wanna get an update on the progress of our share bed bag program as well as management's other thoughts regarding our shareholder returns. Thank you.

And that does that will that lasts a little bit longer which means that after the macro environment stabilizes and started to warm up enterprises, my still need a little bit while.

To restart.

Account expansion.

And second.

Given our very resilient cash position and profitability just want to get an update on the progress of our share buyback program as well as management's thoughts regarding shareholder returns. Thank you.

Speaker 5: Second, I can say that one of Sis Ye coming from this town said that the lead has to be pulled man Who died long ago If they manage to get away I will just leave She did it But today she needs to be 15 I think she can magnitude So she needs to pull two at a time So she canigt SO When she Rocket she is a coach She has contraband

Okay.

Uh huh.

Well sure Felicia show each year.

The show is Shea judicial Judy.

Sure.

And so locking them in due.

So that's essentially it's Josh.

A couple of weeks on the model.

Total net loss.

So he shall issue at heart.

And of course your hotel issue when it does ship lease it up.

Jonathan Kanzha: [inaudible] think it's a good idea to have a good relationship with the whole world, but I don't think it's a good idea[inaudible] So, to be honest, let's take a look at a book. This book is in the past 12 months, the cover of the cover of the cover is 400,000, and the cover of the company is 200,000. In fact, in China, 5,000,000 episodes of the cover of the cover of the company, it is very low.

Oh, she chose ideal with Yamal.

Speaker 3: Thank you for your question. And I will start with...

Thank you for your question.

Batteries.

Speaker 3: Small and medium or even micro-interprises. For example, for small enterprises, when you have train employees, when two of them leave the job, they simply need to recruit two more in order to keep on with their business. I think those activities are the same for small and medium.

Small.

Mike.

For example for small enterprises.

Employees when two of them.

The job they complete literally two months.

Super.

I think that those activities.

Okay.

Speaker 3: Anytime, we need to do the recruitment whenever they have the mouse.

Okay.

We need to do that.

That would be.

Speaker 5: Then and so and though we'll doch take with we'll create functional power . there are Nessar the Debut Itul

Oh gosh.

Yeah, that's generally what's your the total what missiles and totally.

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Tissue on the kind of it.

Speaker 3: And for last company, actually have also known that other companies are more cautious in the flow.

And for our last company actually.

No other company.

More caution.

Speaker 3: in terms of equipping their health and budget. And I can give you two examples of news. The first one, the large companies has been less active in many, more foreign people. So that's the situation is becoming.

Hello.

In terms of Crazy.

Jake.

I can't give you too.

The first one is the large companies have seen that at all.

Starting with people.

Does that presentation.

Speaker 5: And yesterday, we went outside to watch the PlayStation 5 natürlich. Actually, it's our first time playing the game right on our own. ?????? time,???bum,???????uts? ??????? ????????????? ???????????

On that front Matt.

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On the edge.

Speaker 5: and a special opportunity that are not used for Las Vegas to find somebody nice, nice and friendly. I think that in the Leesa daPa even the opponents who have got astonished wouldn't care for despair.

Yes.

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Speaker 3: And another thing is that we have all, we have all witnessed a lot of large companies. They do the layoff on one hand and do the recruitment on the other.

Okay.

And then another thing is that we have.

Thank you.

That they.

<unk> is a layoff.

And to the comment on that.

Speaker 3: which is actually, this is a very good opportunity for them to to acquire those people who are expensive and low quality and have some people with high quality but much more cheaper. Those people are the opportunities which all of those well-trained administrators.

And the tendency of which he actually this is a very good opportunity for them too.

Due to a fire those people flat expenses.

No politician.

Some people with high quality.

That's much more cheaper first seeking the opportunity.

Okay.

Speaker 5: As far as possible, seeing that all databases are not so small, they carry out a factory-t? on extraordinary areas.

Okay.

So you should go kind of go up within Diageo, Michele Cook Chania itch, yet they'll.

Okay.

Tolerant doctor, but yet.

Speaker 5: I can't answer this question right now. I have no right to answer this question.

Well, that's actually played out below trickle down to you what this means.

Speaker 3: And then starting comes ??? okay so

Sure.

And in terms of when we can't exactly.

And took quite a bit of course of all different.

Speaker 3: and finally starting to do a very aggressive routine. I don't have a clear view of this.

Finally started.

Great.

That's a cooking.

I don't have a clear.

Speaker 5: You have asked us also our expectations.

On Mueller co.

Please go out tissue at the Ada shifts you Ashish.

Speaker: In fact, in China, 5,000,000 episodes of the cover of the cover of the company, it is very low. We also, through this year, related to the world and the success of the success of the next city, we know that our vision is very strong. So we think that we should provide more customers with more money for our work. Thank you for your question. So, in the first and second quarter of this year, we do have written that a lot of job secrets, we find it more difficult to find a job, and much easier for the enterprise to do the equipment.

Speaker 3: for shallow purchase and tactile allocation. Feel it.

Well the share repurchase.

Okay.

Jonathan Kanzha: We also, through this year, related to the world and the success of the success of the next city, we know that our vision is very strong. So we think that we should provide more customers with more money for our work. Thank you for your question.

Speaker 4: So last year we had our first trend show, the share buyback program. The size was 150 million, and we used to have the money at the end. This year we have announced a new round of share repurchase program in Q1. The total size is also 150 million.

Sure.

So last year, we had our first.

Tranche of the share buyback program the size is.

There was a $150 million and we will.

We used to up the money at the end of this.

This year, we have announced a new round of share repurchase program in Q1. The total size is also a $150 million.

Speaker 4: We just execute it a little bit and we will continue to execute it, you know, going forward.

Jonathan Kanzha: So, in the first and second quarter of this year, we do have written that a lot of job secrets, we find it more difficult to find a job, and much easier for the enterprise to do the equipment. But we have been quite aware of what we should initiate, some kind of monetization for the job secrets, who are much more difficult on the basis of consensus, and we take, we took no action.

Just a cute.

Executed a little bit and we will continue to execute it.

Speaker 4: Regarding our situation, we have high cash positions and good probability plus positive free cash flow. We do appreciate share of order, you know, continuous support, and we definitely will think about how to, you know, you know.

Going forward.

Regarding our situation, we have a high cash positions and.

Speaker: But we have been quite aware of what we should initiate, some kind of monetization for the job secrets, who are much more difficult on the basis of consensus, and we take, we took no action. And before the enterprise users, I just talked about a number, which is our last 12 months paid enterprise customers' numbers, 2.5 mediums, and which is approximately over 2 mediums paid enterprises. That's a very small portion compared to more than 15 mediums enterprises in China.

Gouda profitability, plus a positive free cash flow, where do I appreciate its shareholder.

Support and we definitely will think about how to.

Speaker 4: improve shareholders' return. Companies doing some research and try to find appropriate ways to increase shareholders' value. So please give us some time. Thank you.

You know.

Improve our shareholders return company is doing some research and trying to find appropriate ways to increase shareholder value. So please.

Jonathan Kanzha: And before the enterprise users, I just talked about a number, which is our last 12 months paid enterprise customers' numbers, 2.5 mediums, and which is approximately over 2 mediums paid enterprises. That's a very small portion compared to more than 15 mediums enterprises in China. So, we have learned that from our successful practice in blue colors and more trusted this year, we have, we saw that our business model is very adapting, so we will continue to bring more customers to our platform and convert it into a paid enterprise.

Give us some time.

Okay.

Thank you that's helpful.

And operator. Please proceed.

Speaker 2: Thank you. Our next question comes from the line of Young Bay with CICC, your line of self.

<unk>.

Thank you.

Speaker: So, we have learned that from our successful practice in blue colors and more trusted this year, we have, we saw that our business model is very adapting, so we will continue to bring more customers to our platform and convert it into a paid enterprise.

Our next question comes from the line of John <unk> with CIBC. Your line is now open.

Speaker 12: In terms of spot?? information, the lipos duoar rifles, has got unique products and definitely

All right.

Lindsay Arteaga, Joe sure.

Yeah, Ken Thanks for Windows.

Yeah, sure Mango Athena thumbed up yet.

How did you go to counter detail on when they get.

That's about <unk> <unk> I think on the ocean.

Speaker: And then, in our new blockchain products, we have some strategies. We will believe that if you provide higher value, if your value is obvious, it will be obvious. If you can provide higher value, we will be able to convert it into a paid enterprise. I have said that this is a part of what we are doing. I believe that some of you will see some changes. In terms of our monthly strategy, we believe that if you can provide higher value, if you can provide all those value in a massive scale, you should certainly do something, do more things in the your monthly products, your commercial products. That is actually part of what we are doing, and hopefully we can be patient enough to see that.

Jonathan Kanzha: And then, in our new blockchain products, we have some strategies. We will believe that if you provide higher value, if your value is obvious, it will be obvious. If you can provide higher value, we will be able to convert it into a paid enterprise. I have said that this is a part of what we are doing.

Yes. It is.

Thank you Tom Yeah, Yeah with extra Houston.

Speaker 12: Out there one ersure a camping tile. uh be sed on a big ly. I can to, for uh is erual winteen and canandollar tenan. I capping how the three should uh did ershow uh woman, take a chump and the Cove. Who are sure that you?

We will conduct all the time.

So I'm not sure.

Champion tie the pizza season, our belief.

You're doing travelling here in Canada.

Yeah.

Sure.

Sure women take a channel where they should be.

Speaker 12: First of all, the service industry and the warehousing logistics or local workers have been a stable growth point for us.

Shoulder to sandy.

Oh, Okay, I will translate by myself.

That's why is that the service industry and.

Jonathan Kanzha: I believe that some of you will see some changes. In terms of our monthly strategy, we believe that if you can provide higher value, if you can provide all those value in a massive scale, you should certainly do something, do more things in the your monthly products, your commercial products. That is actually part of what we are doing, and hopefully we can be patient enough to see that.

How long does it take blue collar workers have been tabled coast pint slices of the year, we want to know if our performance stands out compared to other competitors in the same period.

Speaker 12: We want to know if our performance stands out compared to other competitors in the same field and what our main competitors are in the same field.

One of our main competitive advantage is.

Speaker 12: How to be current-labeled with the sustainability of this business? Second one is, I'll follow the platform.

How can we be current today view.

I take over that business.

Montney and product platforms 50 ratio.

Speaker 12: PC ratio, what are the recent changes in the beginning of the year?

The recent shrunk since the beginning of the year, how has our renewal rates all for long term customer and the speed of Hong Kong combination change to compared to before thank you.

Speaker 12: How has the renewal rate of the lantern customers and the speed of own calm recognition changed compared to before?

Speaker: In terms of your questions, I would like to ask our staff to come back. Thanks, Timothy's questions. So regarding the paid enterprise customers number in the quarter, we did record a very healthy rebound for the paid enterprise customers number. So that the metrics was back to 4.5 million for the killing 12 months paid enterprise customers. And in recent months, we witnessed a very quick increase for the small medium sized enterprise users paid to use our service.

Eddy Wang: In terms of your questions, I would like to ask our staff to come back. Thanks, Timothy's questions. So regarding the paid enterprise customers number in the quarter, we did record a very healthy rebound for the paid enterprise customers number. So that the metrics was back to 4.5 million for the killing 12 months paid enterprise customers. And in recent months, we witnessed a very quick increase for the small medium sized enterprise users paid to use our service.

Speaker 5: Current use and loss of traction is a big factor.

Uh huh.

Send that Lenny on quota share it either shuttle.

<unk> essentially each of the Houston Dallas shortly.

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So that allowed you outlined youll share.

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Shelly.

Speaker 5: Just now, I'd like to give a brief introduction into one of the explanation surrender layer. And it's master inversion, aief buffer to shape.

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Yeah.

Speaker 3: Our new color users are counted for more than 30%.

Thank you for your question.

Our Mcmullen County.

Speaker 3: The job potent at daily active job potent for the service urban services industry has exceeded more than one million every day. Which is two members combined together showcase a very strong advantage with double-fly date network effect. And that also demonstrated why over a very smooth growth for the extended interest of the low end.

Okay.

Thank you Sir.

That suggests that.

Speaker: So this is the main driver behind of that increase number. So their purchase of our service is more through online self-service purchases. So basically because of their contribution to the online, their contribution to our total revenue is increasing. So that drags a little bit of the overall output in terms of the large enterprises. This year's output compared with the prior years is a little bit lower. But sequentially, we are witnessing that their output is recovering.

Eddy Wang: So this is the main driver behind of that increase number. So their purchase of our service is more through online self-service purchases. So basically because of their contribution to the online, their contribution to our total revenue is increasing. So that drags a little bit of the overall output in terms of the large enterprises. This year's output compared with the prior years is a little bit lower. But sequentially, we are witnessing that their output is recovering.

Job postings.

Average active sales process.

Okay.

Hi, David.

More than 1 million every day, which just to remember combined together should take from that.

This chart on page.

Tablet private networks.

And does that also demonstrated why I'm.

Im very smooth for the.

Sure.

Speaker 5: uh challenging the SOI. Or show to you tagy woman essential, your valing with the. Do you know you chine that tms Ty woman partent are entionship. So you were landing with the or your.

Challenging to somebody as I'll show you in children that a woman essentials your body.

Do you know Youll ship machine that Todd jumped at that gave women are Shan.

She shot tension shirt for sort of a learning that you'd oh.

Speaker 3: A very strong double-sided natural effect have helped us to gain our strong advantages in the white color and the first tier cities area. And this will also help us to further expand into lower tier cities and groups.

Very strong double sided network effect handheld question.

Strong I want to dig in the white collar.

Speaker: So from the beginning of this year, we continuously seeing that their output are increasing. So in terms of the sector, blue color, particularly urban services from lower tier cities contribute higher for the paid customers. And the quick rebound of the paid enterprise customers, this fact also reflects, I think firstly, this is a sign of a recovery of the many aspects of the economy. Secondly, our recruiting services can bring good value propositions to those businesses.

Eddy Wang: So from the beginning of this year, we continuously seeing that their output are increasing. So in terms of the sector, blue color, particularly urban services from lower tier cities contribute higher for the paid customers. And the quick rebound of the paid enterprise customers, this fact also reflects, I think firstly, this is a sign of a recovery of the many aspects of the economy. Secondly, our recruiting services can bring good value propositions to those businesses.

First tier cities.

And this will also help us to afford that.

Okay.

Well sure.

Speaker 5: So allowing you Don nego the jation yet. hager woman Church qu about whether you young, kdo yo ad to show the hiyrology.

Hollywood.

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Speaker 3: And the achievement we have for blue collar users has a very high relationship with them.

And those are.

The team is we have what we call it.

Has a very high relationship.

Speaker 3: qu that is the high more products conquces.

Project.

Well, Hi, what project <unk>.

Speaker 5: We will release the reading of this room after until 6 a.m.

Project.

So Jim said.

Yeah.

I'm talking a question I'm going to tell you the <expletive> in shop.

Speaker 5: To e To to say that about eight thousands liner Jesus has shave occuredking that brother Jesus Struggler has softer arms, Vinny Bur? He did my bad, man ? ? ? scares ...

Yeah.

Giro soil around shopping George and I'm kind of which same question.

Chip, allowing them to heart.

Speaker: So that's the reasons behind. And in terms of the company's margin, in this quarter, so basically in first quarter and second quarter, we continue to see faster revenue growth. So given the future revenue streams will continue to rise, while major cost and expensive items are kept as mild growth pace, we think that our operating margin will maintain at healthy level and with upside potentials. This comment is more like a mid to long-term comment where we expect an operating margin to steadily improve along with good top-line growth.

Eddy Wang: So that's the reasons behind. And in terms of the company's margin, in this quarter, so basically in first quarter and second quarter, we continue to see faster revenue growth. So given the future revenue streams will continue to rise, while major cost and expensive items are kept as mild growth pace, we think that our operating margin will maintain at healthy level and with upside potentials.

Yeah, you slow pace in the quadrant linger until Congress he showed up.

Speaker: Thank you.

Eddy Wang: This comment is more like a mid to long-term comment where we expect an operating margin to steadily improve along with good top-line growth.

Speaker 3: And there is a situation in the online movement for blue colors.

Yeah.

And there is a situation in the online recruitment part blue collar.

Speaker 3: A full-for job, which is the actual salary of 5,000 people per month. Those people call a post a job with more than 8,000 people per month, as much either to receive.

Oh for a job well done.

Actual salaries lifestyles.

Months.

People call.

Eddy Wang: Thank you.

John.

They saw that.

Much either.

Speaker 5: Numbers home pink DI your do your pun Chief with the leader Hi G you go But who children are that you got color D a heart you also a should change your ship make a short your father and put LL pooma make a push or your father and she should quate each G or.

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Speaker 5: This makes much sense to find the workflow you are trying to join.

Let me.

Canada team hotshot problems all up.

Speaker 3: In formal platforms, perspectives are alongside before a continuous investment in technology, and they do stick to your policy and protect you the job seekers, and they help those recruiters.

And from a platform perspective alongside of you saw our continued investment in technology and stick to our policy of protecting the job seekers and hospitals.

Speaker 3: as a couple of users who can tell the truth who are more authenticated, have more exposure. And those who are not replenished, then you will be able to attract one more local user company.

And Congress.

Okay tell the truth.

They have more exposure and knows what not punish.

Yu Wang: Our next question is from the line of U.B, with Heitong International, Yu Wang is open. The first one is regarding our recent recovery trend, like Zhao Zeng has just mentioned. We witnessed some encouraging trend from enterprise users in August. I would like to further understand the stats complied to our normalist's analogy, or is it something that's quite unusual for this year? Then we did that. What is the recovery momentum out there for our KAA accounts?

You cannot check one we'll call it material.

Speaker 5: And based on that policy and the power of technology, the contract we have.

So it's you get your own policy can choose when the lead Gen. Sheila your Dutch tender how long did you work cash its a learning ecosystem downturn formula Shanghai E.

And based on that policy.

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We have Keith.

Speaker 3: doing quite well, have shown very strong capability for the book.

Sure.

Wow.

So very strong.

Joe literature for the Blue collar.

Uh huh.

Speaker 5: So, so remaining a couple of questions, I'll also one by one. So first of your question is the, you know, the C2B ratio for the platform.

Glenn you want to pay.

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Tom Bancorp wish you Gotta chip, well try and send them to assist in field actually okay.

Julie remaining a couple of questions also one by one so first of all your question.

The C to b ratio well the platform.

Speaker 4: So we're witnessing the platform C to B ratio as a key indicator of a platform demand and supply. So basically this demand and supply ratio continue to improve starting from year-begin.

So whitney as platform <unk>.

<unk> ratio as a key indicator of our platform demand is supply so basically.

This demand and supply ratios continue to improve starting from year to begin.

Speaker 4: But we think this is a very clear evidence that shows overall economy is through a rail recovery.

We think this is a very clear evidence that shows overall economy is through a real recovery.

Speaker 4: In terms of what I just mentioned is the platform, you know, active user demand and supply ratio. And in terms of the daily newly acquired.

Yu Wang: I would like to further understand the stats complied to our normalist's analogy, or is it something that's quite unusual for this year? Then we did that. What is the recovery momentum out there for our KAA accounts? It's management could share any operating metrics like engagement ratio, paying ratio in R2 and etc, that we much appreciate it. That was my first question.

In terms of.

What I just mentioned.

Platforms.

Cheap user demand and supply ratio and in terms of the.

Daily newly acquired users. So this <unk> ratio.

Speaker 4: So this C2B ratio in short term, possibly due to acidity and possibly due to macro recovery, we believe in August , we are seeing much improved C2B ratio. And that ratio is best here today. We consider this as a very encouraging sign.

Yu Wang: It's management could share any operating metrics like engagement ratio, paying ratio in R2 and etc, that we much appreciate it. That was my first question. My second question is a little bit broader. We all acknowledge that this year is since that macro environment has been a little bit weaker than we thought it would be. I'm just wondering under such a condition, what is our top strategic RIT for now, or maybe for the remaining couple of months this year and for next year as well.

In short term, partially due to seasonality and partially due to macro a recovery with leap.

Yu Wang: At the same time, what are the things that we might just want to lay back a little bit to wait for better opportunities in the future? That was the second question. Thank you, management. [inaudible] The second one is golden September and silver October. Which both means a better market, and the second one for Gordon, the number and silver to work, which is definitely different from how good it is. This has more relation to the larger company.

Yu Wang: My second question is a little bit broader. We all acknowledge that this year is since that macro environment has been a little bit weaker than we thought it would be. I'm just wondering under such a condition, what is our top strategic RIT for now, or maybe for the remaining couple of months this year and for next year as well. At the same time, what are the things that we might just want to lay back a little bit to wait for better opportunities in the future? That was the second question. Thank you, management.

It all goes to where see March improved.

<unk> ratio.

That ratio is.

Year to date.

We consider this as a very encouraging sign.

Speaker 4: And in terms of the second question, annual contractor retention and in terms of their NDRR, net dollar retention rates, what we are seeing both metrics are sequentially bottom up from the beginning of the year. The trend will likely to go on in the following quarter.

And in terms of the second question annual contract.

Oh, you know retention and in terms of there.

N D R R.

Dollar retention rates.

What we are seeing both metrics are you know sequentially.

Jonathan Kanzha: [inaudible] The second one is golden September and silver October. Which both means a better market, and the second one for Gordon, the number and silver to work, which is definitely different from how good it is. This has more relation to the larger company. For all those graduates from top university who will graduate, in July, 2004, many larger companies were starting to do the cutting for the top head during September to win this year.

Malte from the beginning of the year the trend we are likely to go up in the following quarters.

Speaker 4: And last question regarding the revenue recognition thing, in short term, because of a higher percentage of contribution from SME clients, and a little bit less annual contracts, you know, our online...

And last question regarding the revenue revenue recognitions our faith.

In short term because of a higher percentage of contribution from SME clients in the last a little bit less annual contracts.

Our online purchase normally will be consumed by.

Speaker 3: purchase normally will be consumed by, you know, those customers in short term, short period of time. So revenue recognition in short term will slightly, you know, faster than before. However, this is just a temporary situation and the mainly related to faster SME growth in the near term.

Those customers is short term short period of time, so revenue recognition in short term will slightly faster than before.

However, this is just a temporary situation and are mainly related to faster.

Semi growth in the near term so that's my question.

Speaker 3: So that's my question, that's my answer to your question.

My answer to your question.

Okay.

Speaker 2: Due to time constraints that concludes today's question and session, at this time, I will turn the conference back to WinBae for any additional or closing remarks.

Thank you.

Due to time constraints that concludes today's question and answer session. At this time I'll turn the conference back to win Bay for any additional or closing remarks.

Speaker 13: Thank you once again for joining us today. If you have any further questions, please contact our team directly. Thank you.

Thank you once again for joining us today.

Any further questions. Please contact our team directly thank you.

Speaker 2: This concludes today's conference call. Thank you for your participation. You may now disconnect.

Okay.

This concludes today's conference call. Thank you for your participation you may now disconnect.

Yu Wang: For all those graduates from top university who will graduate, in July, 2004, many larger companies were starting to do the cutting for the top head during September to win this year. On top of this, to the United States, another factor is that I believe the recruitment of the month is gradually recovering alongside of the economy, and reaching the level shown in the data as follows. Welcome to the daily active enterprise users' number have reached the historical high.

Okay.

[music].

Okay.

[music].

Jonathan Kanzha: On top of this, to the United States, another factor is that I believe the recruitment of the month is gradually recovering alongside of the economy, and reaching the level shown in the data as follows. Welcome to the daily active enterprise users' number have reached the historical high. The enterprises in all kinds of sizes, large companies, big size and small size, all types of companies have shown a very fast recovery trend.

Yu Wang: The enterprises in all kinds of sizes, large companies, big size and small size, all types of companies have shown a very fast recovery trend. To be honest, to be very honest, I am not sure how long I will be able to do this because I have forgotten the future. This is the current trend, the current economy. The key point is that we can see that 500 people are working together, and they are working on a higher level of technology.

Jonathan Kanzha: To be honest, to be very honest, I am not sure how long I will be able to do this because I have forgotten the future. This is the current trend, the current economy. The key point is that we can see that 500 people are working together, and they are working on a higher level of technology.

Okay.

[music].

Okay.

[music].

Yu Wang: The financial growth factor compared to the enterprise is less than 800 points, and in terms of Kanzhun strategy, I would like to share with you several things we have been holding to all these years. The first one is based on the NTS, we continue to equate our market share. So I think we still have a very long way to go. As we said, we have 20 health months, high-entreprises, nearly over 2 million, which is a small portion compared to 50 million.

Jonathan Kanzha: The financial growth factor compared to the enterprise is less than 800 points, and in terms of Kanzhun strategy, I would like to share with you several things we have been holding to all these years. The first one is based on the NTS, we continue to equate our market share. So I think we still have a very long way to go. As we said, we have 20 health months, high-entreprises, nearly over 2 million, which is a small portion compared to 50 million. We still have a very long way to go.

Yu Wang: We still have a very long way to go. In our second strategy, we have been doing this for quite a long time, which is to continue to input in that technology. We are talking about application technology, but also Korean foreign fundamental studies. In fact, in the near future, we have seen a very fast application and the next level of application. I just understand that it is the technology we have been doing for many years.

Jonathan Kanzha: In our second strategy, we have been doing this for quite a long time, which is to continue to input in that technology. We are talking about application technology, but also Korean foreign fundamental studies. In fact, in the near future, we have seen a very fast application and the next level of application. I just understand that it is the technology we have been doing for many years. As long as we can get the chance to get the chance to live in the environment, we can get the chance to live in the environment.

Yu Wang: As long as we can get the chance to get the chance to live in the environment, we can get the chance to live in the environment. I believe it is the result of all these years of continuous investment technology, which help us to capture the opportunity in the environment. In the final understanding for our continues to increase investment in technology and fundamental science, which is also a work we saw for all those larger companies, as well as companies with respect. It is that we are outstanding able to come from their own kind of faith, allowing us to adapt to new opportunities once they come.

Jonathan Kanzha: I believe it is the result of all these years of continuous investment technology, which help us to capture the opportunity in the environment. In the final understanding for our continues to increase investment in technology and fundamental science, which is also a work we saw for all those larger companies, as well as companies with respect. It is that we are outstanding able to come from their own kind of faith, allowing us to adapt to new opportunities once they come.

Jonathan Kanzha: Thank you.

Speaker: Thank you. That's my answer for your question. Thank you.

Jonathan Kanzha: That's my answer for your question. Thank you.

Zong Wei Zong: Our next question comes from the line of Zong Wei Zong with UBS. Your line is open. Thank you. We have a question for you. When the red light is not confirmed, it may be more likely to be more effective than this. Let me ask you, if the red light is starting to turn around, will the red light also need longer time to start with the red light? The other question is that we are very healthy now. I would like to ask you about the progress of the relationship between the two.

Zong Wei: Our next question comes from the line of Zong Wei Zong with UBS. Your line is open. Thank you. We have a question for you. When the red light is not confirmed, it may be more likely to be more effective than this.

Zong Wei: Let me ask you, if the red light is starting to turn around, will the red light also need longer time to start with the red light? The other question is that we are very healthy now.

Zong Wei: I would like to ask you about the progress of the relationship between the two. Thank you, management for taking my questions. First, I just want to follow up on the recovery pace of the enterprise hiring demand. Given that we are experiencing a long period of uncertainty in the macro, and the enterprises seem to lean forward or focus more on cost controls. Does that last a little bit longer, which means that after the macro environment stabilizes and started to warm up, enterprises might still need a little bit while to restart, you know, a high-count expansion. In second, just given our very resilient cash position and profitability, I just want to get an update on the progress of our share-backed program, as well as management's other thoughts regarding our shareholder returns. Thank you.

Speaker: Thank you, management for taking my questions. First, I just want to follow up on the recovery pace of the enterprise hiring demand. Given that we are experiencing a long period of uncertainty in the macro, and the enterprises seem to lean forward or focus more on cost controls. Does that last a little bit longer, which means that after the macro environment stabilizes and started to warm up, enterprises might still need a little bit while to restart, you know, a high-count expansion. In second, just given our very resilient cash position and profitability, I just want to get an update on the progress of our share-backed program, as well as management's other thoughts regarding our shareholder returns. Thank you.

Speaker: Okay, I'll first talk about some small enterprises. The small enterprises that we met, are said to have a group of 10 people, two people left. So for them, it's just that they need 10 people today. I think they won't think that much. They have to find two people to come back. So in the small enterprises, when I think of it, their behavior is always the same. Thank you for your question. And I will start with a small and medium or even micro-final enterprises.

Jonathan Kanzha: Okay, I'll first talk about some small enterprises. The small enterprises that we met, are said to have a group of 10 people, two people left. So for them, it's just that they need 10 people today. I think they won't think that much. They have to find two people to come back. So in the small enterprises, when I think of it, their behavior is always the same.

Jonathan Kanzha: Thank you for your question. And I will start with a small and medium or even micro-final enterprises. For example, for small enterprises, when you have 10 employees, when two of them leave the job, they simply need to recruit two more people with a business. I think those activities are the same. For small enterprises, when you have 10 employees, they need to be the equivalent to the amount they have been out. And for large companies, as we have all known, that large companies are more cautious and the slow, the need in terms of increasing their company budget.

Speaker: For example, for small enterprises, when you have 10 employees, when two of them leave the job, they simply need to recruit two more people with a business. I think those activities are the same. For small enterprises, when you have 10 employees, they need to be the equivalent to the amount they have been out. And for large companies, as we have all known, that large companies are more cautious and the slow, the need in terms of increasing their company budget.

Speaker: And I can give you two examples of things. The first one, the large companies has been less active in many small family people. So that's the situation is becoming less and less. Another thing I think is that we all know each other very well. We saw a lot of large companies who were in the market, in the market, in the market and in the market. So I'm going to talk about a lot of large companies.

Jonathan Kanzha: And I can give you two examples of things. The first one, the large companies has been less active in many small family people. So that's the situation is becoming less and less. Another thing I think is that we all know each other very well. We saw a lot of large companies who were in the market, in the market, in the market and in the market. So I'm going to talk about a lot of large companies.

Speaker: And the another thing is that we have always been a lot of large companies, and we have always been a lot of large companies. They do the layout of one hand and do the recruitment on the other hand, simultaneously, which is actually, this is a very good opportunity for them to acquire those people who are defensive and low quality and have some people with high quality, but much more cheaper. So, this is the opportunity which all of the well-trained administrators will take.

Jonathan Kanzha: And the another thing is that we have always been a lot of large companies, and we have always been a lot of large companies. They do the layout of one hand and do the recruitment on the other hand, simultaneously, which is actually, this is a very good opportunity for them to acquire those people who are defensive and low quality and have some people with high quality, but much more cheaper. So, this is the opportunity which all of the well-trained administrators will take.

Speaker: [inaudible] So, last year, we had our first crunch of the share buyback program. The size was 150 million, and we used up the money at the end.

Eddy Wang: [inaudible] So, last year, we had our first crunch of the share buyback program. The size was 150 million, and we used up the money at the end.

Speaker: This year, we have announced a new round of share repurchase program in Q1. The total size is also 150 million, we just executed a little bit, and we will continue to execute it going forward. Regarding our situation, we have high cash positions and good profitability plus a positive free cash flow. We do appreciate shareholder's continued support, and we definitely will think about how to improve shareholder's return. The company is doing some research and try to find appropriate ways to increase shareholder's value, so please give us some time. Thank you.

Eddy Wang: This year, we have announced a new round of share repurchase program in Q1. The total size is also 150 million, we just executed a little bit, and we will continue to execute it going forward. Regarding our situation, we have high cash positions and good profitability plus a positive free cash flow. We do appreciate shareholder's continued support, and we definitely will think about how to improve shareholder's return.

Eddy Wang: The company is doing some research and try to find appropriate ways to increase shareholder's value, so please give us some time. Thank you.

Young Bay: Our next question comes from the line of Young Bay with CICC. Your line is open. [inaudible] Thank you very much. Thank you very much. [inaudible] And from a platform perspective alongside the global community investment technology, and the global community investment technology. And based on that policy, and on the power of technology, the contract we have been doing for quite a while, has shown very strong ability for the food color. Q. So, remaining a couple of questions are also one by one.

Young Bay: So, first of all, your question is the C2B ratio for the platform. So, we're witnessing the platform C2B ratio as a key indicator of platform demand and supply. So, basically, this demand and supply ratio continue to improve starting from year beginning. We think this is a very clear evidence that shows overall economy is through a rail recovery. In terms of what I just mentioned is the platform active user demand and supply ratio.

Young Bay: And in terms of the daily newly acquired users. So, this C2B ratio in short term, possibly due to seasonality and possibly due to macro recovery, we believe, in August, we are seeing much improved C2B ratio. And that ratio is best here to date. We consider this a very encouraging sign. And in terms of the second question, annual contract retention and in terms of their NDRR, net dollar retention rates. We are seeing both metrics are sequentially bottom out from the beginning of the year. The trend will likely to go on in the following orders.

Young Bay: And in terms of the second question, annual contract retention and in terms of their NDRR, net dollar retention rates. We are seeing both metrics are sequentially bottom out from the beginning of the year. The trend will likely to go on in the following orders.

Speaker: And last question regarding revenue recognition thing. In short term, because of a higher percentage of contribution from SME clients and a little bit less annual contracts, our online purchase normally will be consumed by those customers in short term, short period of time. So revenue recognition in short term will slightly faster than before. However, this is just a temporary situation and mainly related to faster SME growth in the near term. So that's my question. That's my answer to your question. Thank you.

Young Bay: And last question regarding revenue recognition thing. In short term, because of a higher percentage of contribution from SME clients and a little bit less annual contracts, our online purchase normally will be consumed by those customers in short term, short period of time. So revenue recognition in short term will slightly faster than before. However, this is just a temporary situation and mainly related to faster SME growth in the near term. So that's my question. That's my answer to your question. Thank you.

Wenbei Wang: Due to time constraint, that concludes today's questioning and succession. At this time, I will turn the conference back to Wenbei for any additional or closing remarks. Thank you once again for joining us today. If you have any further questions, please contact our team directly. Thank you.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

Operator: This concludes today's conference call. Thank you for your participation.

Operator: You may now disconnect.

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