Q3 2024 Kanzhun Ltd Earnings Call
Okay.
Okay.
Okay.
Operator: Ladies and gentlemen, thank you for standing by and welcome to the Kanzhun Limited 3rd Quarter 2024 Financial Results Conference. At this time, all participants are in listen-only mode.
Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to the content limited third quarter 2024 financial results Conference call.
Speaker Change: At this time, all participants are in listen only mode.
Operator: After the speaker's presentation, there will be a Q&A session. Today's conference is being recorded.
Speaker Change: After the Speakers' presentation there'll be a Q&A session today's conference is being recorded.
Wenbei Wang: At this time, I would like to turn the conference over to Ms. Wenbei Wang, Head of Investor Relations.
Speaker Change: At this time I would like to turn the conference over to MS. Wendy Huang head of Investor Relations. Please go ahead ma'am.
Wenbei Wang: Thank you, operator.
Speaker Change: Thank you operator, good evening.
Wenbei Wang: Good evening and good morning, everyone. Welcome to our third quarter 2024 earnest conference call.
Speaker Change: Good morning, everyone welcome to our third quarter 10 different therefore earnings conference call.
Wenbei Wang: Joining me today are our founder, chairman, and the CEO, Mr. Jonathan Peng Zhao, and our director and CFO, Mr. Phil Yu Zhang. Before we start, we would like to remind you that today's discussion may contain forward-looking statements, which are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially The company caution you not to place undue reliance on forward-looking statements and do not undertake any obligation to update this forward-looking information, except as required by law.
Speaker Change: Joining me today, our founder Chairman and CEO, Mr. Jonathan Chou, our DARPA and the CFO Mr. Feeling Joe.
Speaker Change: Before we start we would like we would like to remind you that today's discussion may contain forward looking statements, which are based on management's current expectations and observations that involve known and unknown risks.
Speaker Change: These and other factors not under the company's control, which may cause actual results performance or achievements of the company to be materially different.
Speaker Change: The company culture, you not to place undue reliance on forward looking statements and do not undertake any obligation to update this forward looking information except as required by law.
Wenbei Wang: During today's call, management will also discuss certain non-debt financial measures for comparison purpose only. For a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results, please see the earnest release issued earlier today.
Speaker Change: During today's call management will also discuss certain non-GAAP financial measures for comparison purpose only.
Speaker Change: So that will show up in non-GAAP financial measures and then Kirk nation of GAAP to non-GAAP financial results. Please see the earnings release issued earlier today.
Wenbei Wang: In addition, a webcast replay of this conference call will be available on our website at ir.jpain.com With that, I will now turn the call to Jonathan, our Founder, Chairman, and CEO.
Speaker Change: In addition, a webcast replay of this conference call will be available on our website.
Speaker Change: I R J P dot com.
Speaker Change: At least that I will now turn the call to Jonathan our founder Chairman and CEO.
Peng Zhao: Hello, everyone. Welcome to the third quarter results conference of our company in 2024.
Jonathan Chou: Hello, Paul.
Speaker Change: Sorry Sandeep.
Speaker Change: Thank you Juliet publicly.
Peng Zhao: Hello everyone, thank you for joining our company's third quarter 2024 earnings conference. On behalf of all employees, management and board of directors, I would like to thank the users and investors who have always trusted and supported us.
Speaker Change: Hello, everyone. Thank you for joining our company has got a courtyard near 24 earnings conference call.
Tom: Go ahead Tom.
Tom: Gotcha.
Tom: A woman.
Tom: Sure.
Tom: So it's Jose here.
Peng Zhao: On behalf of the company's employees, management team, and board of directors, I would like to extend our sincere gratitude to our users and investors who have continuously believed in us and supported us.
Tom: On behalf of the company's employees management team and board of directors.
Tom: I'd like to extend our sincere gratitude to our users and investors, who have continuously leaving us and supporting us.
Peng Zhao: First, let's talk about the income and profit numbers for the third quarter. The company's income is 19.1 billion yuan, which is a 19% increase. The net profit is 4.6 billion yuan. After deducting the equity base fee, the company adjusted its profit to 6.1 billion yuan and increased by 10%.
Speaker Change: So it's always a San Diego the photo shoots of.
Speaker Change: Yes, sure sure Jordan.
Speaker Change: So now that Michigan.
Speaker Change: He is sitting here yet.
Speaker Change: Thank you for your call.
Speaker Change: Costa Jim Shelton.
Speaker Change: So that he can be summed up I appreciate it.
Peng Zhao: Let's talk about financial numbers for this quarter first. The company achieved a revenue of RMB 1.91 billion, up 19% year-on-year, and a net income of RMB 460 million. Additionally, our adjusted operating income, which excludes share-based compensation expenses, reached RMB610 million, reflecting a 10% year-on-year growth.
Speaker Change: Let's talk about financial numbers for the first for this quarter first the count.
Speaker Change: <unk> achieved a revenue of RMB 191 eat it.
Speaker Change: 19% year on year, and a net income of RMB 460 media.
Speaker Change: Additionally, although our adjusted operating income, which excludes share based compensation expenses reached RMB 610 million, reflecting a 10% younger girls.
Peng Zhao: During the 30th anniversary, the Olympic Games and the European Cup happened to be held. The company has increased the brand promotion costs, which has increased the market share.
So you don't you get.
Speaker Change: So how are you.
Speaker Change: Right.
Speaker Change: Cognizant galley inserts and Biogen penalty.
Speaker Change: Sure sure.
Peng Zhao: However, this is a one-off point, and we will not change our goal of increasing profits throughout the year.
Yes.
Speaker Change: Thank you.
Speaker Change: Thats useful.
Speaker Change: Kenyan women.
Peng Zhao: During the third quarter, which coincided with the Olympic Games and the Euro Cup 2024, the company allocated additional resources to brand promotion, which led to an increase in marketing expenses.
Speaker Change: During the third quarter, which coincided with the Olympic games and the Euro Cup to need to do for the company allocated additional resources to brand promotion, which led to an increase in mapping spaces.
Peng Zhao: It was a one-off expenditure. Our annual profit growth target remains firmly on track.
Speaker Change: With the one off expenditure.
Speaker Change: Our annual profit growth target remains firmly on track.
Speaker Change: Yeah.
Peng Zhao: It is also worth mentioning that I have been working in NASDAQ for three and a half years. are listed for the second time in Hong Kong for two years. takes higher income stakeholder rewards so the company entered a gradual narrowing phase 3, 7, etc Additionally, it is worth mentioning that as a company listed on NASDAQ for three and a half years and with a secondary primary listing on Hong Kong Exchange for two years, our share-based compensation expenses, which have historically accounted for a relatively high proportion of our revenue, have entered the anticipated phase of gradual reduction.
Speaker Change: So actually this year.
Speaker Change: Thoughtful fashion.
Speaker Change: So in general our Central Australia this year.
Speaker Change: So it will be John Gandolfo.
Speaker Change: <unk>.
Speaker Change: Rajiv.
Speaker Change: We'll show that in July.
Speaker Change: San Diego.
Speaker Change: Tony.
Speaker Change: Yes.
Speaker Change: Additionally, it is worth mentioning that as a company listed on NASDAQ for three and a half years and we've got secondary Prime Rudy's team on Hong Kong exchange for sure, Yes, our share based compensation expenses, which have historically accounted relatively high proportion of a home run into.
Speaker Change: And as Peter has placed a gradual reduction.
Peng Zhao: In this quarter, these expenses demonstrated a decline both on a year-on-year and a quarter-on-quarter basis.
Speaker Change: Good quarter.
Speaker Change: They demonstrated a decline both year on year and quarter on quarter basis.
Peng Zhao: 回顾三级路的工作,两句话可以基本概括。 and Taiwan's overall recruiting market. The environment is not easy. 公司聚焦增長引擎做工仍然有效果 Reflecting on the third quarter, our efforts can be summarized into two sentences. While the overall recruitment market environment remains challenging, the company's unwavering focus on key growth drivers continues to yield positive results.
Speaker Change: Clinical studies.
Speaker Change: Yes, you bet.
Speaker Change: That's cool.
Speaker Change: San Diego Junkie Choppiness.
Speaker Change: Finally in Wichita.
Speaker Change: <unk> got some guidance for you.
Speaker Change: Sure.
Speaker Change: Okay.
Acting on the third quarter as far as can be summarized into two sentences.
Speaker Change: Well the overall recruitment market environment remains challenging.
Speaker Change: Companies on liberating focus on Chico's drivers continue to yield positive results.
Peng Zhao: Can you tell us more about the Three Kingdoms? First of all, the user growth is still strong. As we all know, user growth has always been an important part of our growth.
Speaker Change: G suite. Thank you.
Speaker Change: Susan.
Speaker Change: Sure.
Speaker Change: Hey, guys.
Speaker Change: Would you at all.
Speaker Change: And Toyota.
Speaker Change: Sure.
Peng Zhao: Now let's take a look at a few notable highlights from the third quarter. First, our user growth continue to demonstrate strong growth momentum. As we all know, user growth has always been an important growth driver for us.
Speaker Change: Now, let's take a look at a few notable highlights from the third quarter.
Oh, well you their barrels continue to demonstrate strong growth momentum.
Oh, no user growth has always been an important growth driver for us.
Peng Zhao: The average number of users for the 3G Road app is 58 million which is a 30% increase In January-September 2024, the total number of users increased to more than 40 million In this quarter, the average monthly active users on our bot shipping app reached 58 million, representing a 30% year-on-year increase. From January to September 2024, newly added verified users exceeded 40 million.
Speaker Change: So I need to go through the ADP clients in June.
Speaker Change: Ill jump on that one.
Speaker Change: And Jonathan just last year.
Speaker Change: Yeah, So Julien let Adidas.
Speaker Change: In the resi, which almost a chunk.
Speaker Change: In this quarter the average monthly active users on our bus ticketing App reached 58 million, representing a 30% year on year increase.
Speaker Change: From January to September 24, newly added where they find it users exceeded 14 needed.
Peng Zhao: Compared with the employer's side, the recruitment demand on the enterprise side has grown slightly, but it still maintains a growing atmosphere The number of new jobs released in the third quarter increased by 18% This is mainly due to the growth of users and the increase in market share in our relatively efficient business model. Compared to the job seeker side, recruitment demand from enterprises showed a more moderate, but steady upward trajectory.
Speaker Change: Your children.
Speaker Change: Yes.
Speaker Change: Turning to chart <unk>.
Speaker Change: Adoption of <unk>.
Speaker Change: Thank you two questions on pharma judicial Tobey.
Speaker Change: Understood.
Sure.
Women Xiaomi indulge you on it.
Speaker Change: This was done.
Speaker Change: Sure sure.
Speaker Change: Sure.
Speaker Change: Compared to the job seeker side, the cooling demand from enterprises showed a more moderate but steady upward trajectory.
Peng Zhao: The number of newly posted job positions in the third quarter increased by 18% year on year. This growth is mainly driven by the user growth and market share expansion, fueled by our relatively efficient business model.
Speaker Change: The number of newly posted to a pole position in the third quarter increased by 18% year on year.
This growth is mainly driven by the user growth and market share expansion fueled by our route to be efficient business model.
Peng Zhao: Let's talk about the second thing of the third quarter. The short-term return rate is affected by the supply and demand, and the increase in speed slows down. The business is doing well.
Speaker Change: Thank you to the Trs <unk> Suisse.
Speaker Change: Five ships will really show essentially eshop. She is also somewhat.
Speaker Change: Also in that you wanted to call.
Peng Zhao: The dividend paid by region should increase. The second thing in the third quarter, the growth of short-term paying ratio affected by supply and demand has been slowed down. Despite this, the retention of enterprise user remains solid, and the number of paid enterprise customers experienced a decent growth.
Speaker Change: Sure Colby.
Speaker Change: Okay.
Speaker Change: The second thing in the third quarter.
Growth of short term pain ratio affected by supply and demand has been slowed down finally irritation or winter prices remain solid and the number of enterprise customers experienced in Houston.
Peng Zhao: From July to September, the number of applicants has been higher than ever since the second quarter of the year. The gap between last year and this year is getting bigger and bigger. More and more applicants make the recruitment cycle shorter.
Speaker Change: She is onshore.
Speaker Change: <unk> Shandy, you're talking about the PD, Sheila <unk> John Collins.
You can see the charge your interest.
Speaker Change: <unk> gone to other children.
Sure.
Speaker Change: During the George again.
Peng Zhao: In other words, if a company wants to find someone to fill in a vacancy, it will affect the company's desire to pay within a short period of time. This will slow down the company's rate of payment. From July to September, the ratio of job seekers to enterprise users continued its upward trend since the second quarter. with a gap compared to the same period last year continuing to widen. Relatively more jobseekers have shortened the recruitment cycle for enterprises. That is, the time it takes for enterprises to fill a vacant position is reduced.
Yes sure.
Speaker Change: Kimberley Igo Gabriele.
Speaker Change: Did you actually only been done nominal Shlomo.
John Gandolfo: Thank you John.
John Gandolfo: Yes.
Sure.
John Gandolfo: Thank you Keisha you also pump.
Speaker Change: From July to September the ratio of job seekers to enterprise users continued its upward trend.
Speaker Change: The contract, we said gap compared to the same period last year continuing to widen.
Speaker Change: That should mean more jobseekers has shortened the recruitment cycle for enterprises that is the time it takes for enterprises to free up my time position is reduced.
Peng Zhao: In the short term, this may affect the enterprise users' willingness to pay, leading to a slower growth of the company's paying ratio.
Speaker Change: In the short term this may affect the enterprise you guys, we don't need to pay leading to a slower growth of the company's paying ratio.
Peng Zhao: However, we can observe that the company is still doing well in terms of its survival This is definitely good news in the long run Investors and analysts of various research and enterprise services are easy to understand.
Speaker Change: Sure well I'm glad to have at all times.
Speaker Change: I will turn out.
Speaker Change: Angela factor conditional Josh.
Speaker Change: I don't see it.
Speaker Change: Sure totally.
Peng Zhao: In the year when the number of paid corporate clients reaches millions, the survival of corporate clients is decisive. It is the precondition for all growth. However, we have observed that the retention rate on the enterprise side remains solid. This is definitely good news in the long term. Investors and analysts who focus on the enterprise service market should have recognized that when the number of annual paying enterprise customers reaches a scale of millions, the retention of enterprise customers becomes decisive and it is a prerequisite for sustained growth.
Speaker Change: Thank you Andrew.
Speaker Change: <unk>.
Speaker Change: So Atlanta.
Speaker Change: Sure sure.
Speaker Change: Good evening.
Speaker Change: Sure.
Speaker Change: Angie.
Speaker Change: Okay.
Speaker Change: However, we have observed that the retention rate on the enterprise side remains solid.
Speaker Change: This is definitely good news in the long term.
Speaker Change: Let's turn to an analyst who focused on enterprise service market should have recognized that with a number of annual pay enterprise customers, which is a scale of minutes.
Speaker Change: Retention of enterprise customers become decisive and it is a pre requisite for sustained growth.
Peng Zhao: As of September 30, 2024, the number of customers paid by the company in the past 12 months was about 6 million, and the growth rate was 22%. The total number of paid enterprise customers for the 12-month-ended September 30, 2024 reached around 6 million, up 22% year-on-year.
Speaker Change: Okay.
Speaker Change: Andrew Andrew you are closer to that what's your childhood.
Speaker Change: Yes on the commercial if you will and soil.
Speaker Change: Sure.
Speaker Change: The total number of paid enterprise customers for the 12 months ended September 32 different do four reached around $6 million up 22% year on year.
Peng Zhao: The third thing in the third quarter is to talk about the company's payment amount, which is APU, and keep it basically stable. The third thing, that is the average revenue per paid enterprise customers, namely ARPU, has remained stable.
Speaker Change: San Diego the design, you said Youre sure sure.
Speaker Change: Yes.
Speaker Change: Future our pool <unk>.
The third thing that is the average revenue per paid enterprise customers, namely our pool has remained stable.
Peng Zhao: Fourthly, in the field of blue-and-white manufacturing, we are committed to improving the market environment and working hard to develop the circle of friends to continue to achieve satisfactory growth. Fourth, in the blue-collar manufacturing sector, we are committed to purifying the market environment while striving to expand our front cycle and continue to achieve satisfactory growth.
Speaker Change: <unk> Allomap.
Speaker Change: UBS industry team launched shop.
Speaker Change: You bet.
Speaker Change: Hello, Chad.
Speaker Change: Sure.
Speaker Change: Sundar.
Speaker Change: Okay.
Speaker Change: In the Blue collar manufacturing sector, we are committed to purifying the market environment, well sliding Choi spend our fast cycle and continue to achieve satisfactory growth.
Peng Zhao: 主要的做法是通过产品 The main method is to use products the comprehensive use of algorithmic and operational capabilities, as much as possible to ensure that high-quality recruitment companies get more opportunities for candidate communication.
Speaker Change: Gotcha.
Speaker Change: Thank you.
Speaker Change: Sorry about the phone question.
Speaker Change: Jim.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Commvault Porsche globally.
Peng Zhao: On the platform, the data is reflected as the third quarter's Hailuoyou election. The number of registered companies has increased by 45% The amount of money signed has increased by more than 40%. As a result, this also helps us to increase the overall income ratio by more than 38% in the blue-collar income.
Speaker Change: Hi.
Speaker Change: Sure Joe.
Speaker Change: Thank you.
Speaker Change: Sure.
Speaker Change: Ladies you hope to achieve.
Speaker Change: Yes.
Speaker Change: Sure Julien.
And on top of that.
Speaker Change: So Lisa Gill truly a bundle.
Sean: My name is Sean.
Sean: Scott.
Sean: So the PD <unk> <unk> total I'm just talking about.
Peng Zhao: Our strategy focuses on providing high-quality recruiting companies with greater opportunities to connect with candidates, leveraging a combination of innovative products, refined algorithms, and robust operational capabilities. In terms of data on our platform, in the third quarter, the accumulated number of enterprises joining high-law contracts led project grew by 45% quarter on quarter, and signed contract value increased by over 40% quarter on quarter. This also helped, as a result, this also helped the revenue contribution from overall blue-collar business in terms of total revenue further increase to more than 38%.
Sean: Our strategy focused on providing high quality recruiting tactics.
Sean: With greater opportunities to connect with candidates leveraging a combination of innovative products refine algorithms and robust operational capabilities.
Sean: In terms of data on our platform.
Third quarter, the accumulated number of enterprises joining.
Net project grew by 45% quarter on quarter.
Sean: The contract value increased by over 40% quarter on quarter.
Sean: This also helps as a result. This also helped the revenue contribution from overall blue collar business in terms of total revenue further increased to more than 48%.
Sean: Okay.
Peng Zhao: Fifth, the company continues to invest in technology and continues to create greater value.
Speaker Change: D J.
<unk> also achieved total.
Speaker Change: Due to the economic downturn.
Peng Zhao: In the third quarter, on average every month 达成的次数 The number of successes jiāng jīng liǎng yì cì The number of recruits andiantes is 80. That is to say, everyone on the platform gets a chance to communicate based on mutual consent and still continues to grow on the same level.
Speaker Change: Thank you.
Speaker Change: Thank you Tien tsin.
Speaker Change: Can you hear me.
Speaker Change: The loss from the social.
Jonathan.
Speaker Change: Turning to our children.
Speaker Change: Any thoughts on social.
Speaker Change: Sure Michael.
Speaker Change: That impact one quarter or the G shortfall to Sean Sean.
You bet.
Speaker Change: Sean Hannan box strategic genre.
Peng Zhao: Fifth, the company continues to invest in technology to create greater value. In the third quarter, our platform facilitated an average of nearly 200 million monthly mutual achievements. demonstrating a continued rise in the number of successful interactions based on mutual consent between enterprise users and job seekers on a per capita basis.
Speaker Change: Thanks for.
Speaker Change: The company continues to invest in technology to create greater value.
Speaker Change: In the third quarter, our platform for city painted a rate of nearly 200 million Mark a neutral achievements.
Speaker Change: Illustrating our continued to rise in the number of successful interaction based on mutual consent between enterprise users and job seekers on a perpetual basis.
Peng Zhao: As an entrepreneur, I believe that 我跟我的伙伴 I and my friends We usually see this set of data as the value that our company provides to the world.
Speaker Change: Well ill tell you theyre trying to Joe.
Speaker Change: Well done.
Speaker Change: Hello, Bob.
Speaker Change: Thanks for your thoughts.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Thank you so much to get to on the judgment.
Peng Zhao: This has always been our company's long-term goal. As an entrepreneur, I and my friends all view this data as a testament to the value of our company's voice to the world. And this has always been the goal that our company will long pursue.
Speaker Change: Sure Hamzah charge you for each one of them will be up.
Speaker Change: Arthur into a premier.
Speaker Change: And my friends. Although this data is the testament to the value of our company employees to their work.
Speaker Change: And this has always been the goal that our company will proceed.
Peng Zhao: Lastly, I'd like to talk about the shareholder feedback that investors are concerned about. From last quarter's sales, to now, the company's total repurchase is about $130 million. This year's total purchases amounted to about $2.2 billion. which corresponds to about 3.4% of our total capital. This reflects the company's confidence in long-term growth and the need to continue to pay attention and implement it under any circumstances.
Speaker Change: So let me I'm sorry, John.
Speaker Change: The other question hopefully ball.
Speaker Change: Tangshan <unk>.
Speaker Change: Got it.
Speaker Change: Consider the geopolitical.
Speaker Change: Thank you Mickey.
Speaker Change: Thank you Paco.
Speaker Change: You mentioned.
Speaker Change: But I would just add that.
Just on yes.
Speaker Change: In general most of the day, you're tranches of non essential.
Speaker Change: Yes.
Speaker Change: Thank you Marcia.
Speaker Change: Glad to be here.
Peng Zhao: And effectively concrete our aim of sharing the Luster Ring. We will announce a number of surprises over the next ten years. The first five years will be specially prepared due to those practical advancements. We will make innovations that will be used for the emergence of new technologies and more practical physical & spiritual activities.
Speaker Change: We don't think haulage fleet.
Peng Zhao: Last, regarding shareholder returns, the company has repurchased around $130 million worth of shares since our last earnings call, bringing the total repurchase for this year to approximately U.S. dollar 220 million, representing 3.4% of our total share.
Speaker Change: Okay.
Speaker Change: Last regarding shareholder returns the company has repurchased around.
Speaker Change: $130 million worth of shares since our last earnings call, bringing the total repurchases for this year to approximately.
Speaker Change: $220 million $220 million, representing three 4% of our total share.
Peng Zhao: This underscores the company's confidence in our long-term growth prospects and our commitment and a concern to delivering sustained returns to shareholders in any circumstances.
Speaker Change: This underscores the company's confidence in our long term growth prospects and our commitment and our consent to delivering sustained returns for shareholders.
Speaker Change: Circumstances.
Peng Zhao: That's all for my part.
Speaker Change: With all the new technology.
Wenbei Wang: Next, I'd like to ask Sanfeng Xiu to tell us about his financial situation.
Speaker Change: Therefore field.
Speaker Change: Hi, John.
Speaker Change: How would you just yet.
Peng Zhao: That concludes my part of the call.
Speaker Change: That concludes my part of the call I will now turn it over to our CFO field for the overview of our financials. Thank you.
Yu Zhang: I will now turn it over to our CFO, Phil, for the overview of our financials.
Yu Zhang: Thanks Jonathan.
Yu Zhang: Hello everyone. Now let me walk through the details of our financial results of the third quarter of 2024. We delivered a solid set of financial results in this quarter despite the industry headwind, with revenue grew by 19% year-on-year to RMB 1.9 billion. This growth was mainly driven by the continued expansion of our enterprise user base as we further penetrated into blue-collar industries, lower-tier cities, as well as small-sized companies' markets. even facing a generally soft recruitment market. Number of paid enterprise customers was 6 million in the trailing 12 months, ended September 30, 2024, up by 22% year-on-year and 2% quarter-on-quarter.
John Gandolfo: Thanks, Jonathan Hello, everyone now, let me walk through the details of our financial results Ultra third quarter 2024.
We delivered a solid set of financial results in this quarter, despite the industry headwinds.
John Gandolfo: With revenue grew by 19% year on year to RMB, one 9 billion.
John Gandolfo: This growth was mainly driven by the continued expansion of our enterprise user base as we further penetrated into blue collar industries, lower tier cities as well as small sized companies market.
John Gandolfo: Even facing generally soft recruitment markets.
John Gandolfo: Number of enterprise customers was $6 million in the two.
John Gandolfo: During the 12 months ended September 32024.
John Gandolfo: Up by 22% year on year, and 2% quarter on quarter.
Yu Zhang: Our pool in this quarter remains stable sequentially. Notably, our overall operating costs and expenses were flattish quarter on quarter. even including several one-off or non-structured expense items in this period.
Our pool in this quarter it remained stable sequentially.
John Gandolfo: Notably.
John Gandolfo: Our overall operating costs and expenses were flattish quarter on quarter.
John Gandolfo: Even including several one off or non structured expense items in this period.
Yu Zhang: As one of our key focuses being sustainable cost control, we are confident that our effective business model can continue to generate strong operating leverage in the future.
John Gandolfo: As one of our key focuses being sustainable cost control, we are confident that our effective business model.
John Gandolfo: <unk> to generate strong operating leverage in the future.
Yu Zhang: looking at a detailed financial matrix. excluding share-based compensation expenses. Adjusted operating cost and expenses increased by 23% year-on-year to RMB 1.3 billion, flattish quarter-on-quarter. Adjusted operating profit reached RMB 600.05 million, up by 10% year-on-year, with an adjusted operating margin of 32%. Cost of revenues increased by 17% year-on-year to RMB314 million in this quarter, mainly driven by higher server and bandwidth costs. payment processing cost as well as employee-related expenses. gross margin tapped at the same level of 84% as last quarter. Sales and marketing expenses increased by 14% year-on-year to RMB 522 million in this quarter, primarily driven by the marketing campaigns launched during the Paris 2024 Olympic Games and the Euro Cup of 2024.
John Gandolfo: Looking at the detailed financial metrics.
John Gandolfo: Excluding <unk>.
John Gandolfo: Share based compensation expenses.
The adjusted operating costs and expenses increased by 23% year on year to RMB, one 3 billion.
Flattish quarter on quarter.
John Gandolfo: Adjusted operating profit reached RMB 600 zero five.
John Gandolfo: Million up by 10% year on year.
John Gandolfo: Adjusted operating margin of 42%.
John Gandolfo: Cost of revenues increased by 17% year on year to RMB.
John Gandolfo: $314 million in this quarter, mainly driven by higher silver and bandwidth costs.
John Gandolfo: Payment processing costs as well as employee related expenses.
John Gandolfo: Gross margin tap at the same level of <unk>.
John Gandolfo: 84%.
John Gandolfo: Last quarter.
Sales and marketing expenses increased by 14% year on year to RMB 522 million in this quarter, primarily driven by the marketing campaigns launched during the Paris 2024 Olympic games and the Euro Cup of 2020.
John Gandolfo: Paul.
Yu Zhang: Excluding the sponsorship expenses, we witnessed the improved efficiency and business leverage in both our selling and boxing expenses. due to our strong brand recognition and powerful network effect inherent in our business. We are confident that the enhanced marketing efficiency trends will continue to improve along with our top-line growth. RMB expenses increased by 12% year-on-year to RMB 464 million in this quarter excluding share-based compensation expenses adjusted RMB expenses increased by 18% year-on-year to RMB 361 million The depreciation cost associated with our earlier investments in AI infrastructure has largely stabilized and is not expected to increase in the near future.
Excluding the sponsorship expenses we witnessed.
John Gandolfo: The improved efficiency and business leverage in both.
John Gandolfo: Our selling and marketing expenses.
John Gandolfo: Due to our strong brand recognition and a powerful network effects.
John Gandolfo: Inherent in our business.
John Gandolfo: We are confident that the enhanced the marketing efficiency.
John Gandolfo: Trends will continue.
John Gandolfo: Along with our topline growth.
John Gandolfo: R&D expenses increased by 12% year on year to RMB $464 million in this quarter, excluding share based compensation expenses.
At our R&D expenses.
John Gandolfo: Increased by 18% year on year to RMB $361 million.
John Gandolfo: The depreciation cost associated with our earlier investments.
John Gandolfo: Infrastructure has largely stabilized that is not expected to increase in the near future.
Yu Zhang: Our GNA expenses increased by 31% year-on-year to RMB 286 million in this quarter, mainly due to higher employee-related expenses and some one-off expenditures that will not occur in the coming year. Our net income was RMB464 million in this quarter, up 9% year-on-year And our adjusted net income in this quarter reached RMB739 million and increased by 4% year-on-year, which was affected by the decrease in the interest and the investment income Total share-based compensation expenses amounted to RMB275 million in this quarter, down by 9% quarter-on-quarter and 5% year-on-year As Jonathan just mentioned, we are expecting total share-based compensation expenses to continue the downward trend in 2025 Net cash provided by operating activities in this quarter was RMB800 billion.
John Gandolfo: Our G&A expenses increased by 31% year on year to RMB 280.
John Gandolfo: $6 million in this quarter, mainly due to higher employee related expenses.
John Gandolfo: One off expenditures that will not occur.
John Gandolfo: Yes.
John Gandolfo: Our net income was RMB 460.
John Gandolfo: $64 million in this quarter.
John Gandolfo: Up 9% year on year.
John Gandolfo: Our.
John Gandolfo: Adjusted net income in this quarter reached RMB $739 million, an increase of five 4% year on year, which was affected by the decrease in the interest and the investment income.
Speaker Change: Total share based compensation expenses amounting to RMB $275 million in this quarter down by 9% quarter on quarter and 5% year on year as Jonathan just mentioned.
Speaker Change: We are expecting total share based compensation expenses to continue the downward trend in 2025.
Speaker Change: Net cash provided by operating activities in this quarter was RMB 800.
Yu Zhang: 12 million, relatively stable with that of the same period of last year. As of September 13th, 2024 our cash and cash equivalents short-term time deposits and short-term investments totaled RMB 16.6 billion A 14.6 billion We launched an additional share repurchase program in August of 2024, running concurrently with the March program, which allows us to buy back up to US$350 million of shares. Since the announcement of the August program, as Joseph just mentioned, we have repurchased a total consideration of approximately US $130 million, making the total buyback amount reach the US $220 million this year, demonstrating our commitment in shareholders' return and long-term confidence of our business.
Speaker Change: 12 million relatively stable with that of the same period of last year.
Speaker Change: As of September 30.
Speaker Change: 2024, our cash cash equivalents short term time deposits and short term investments totaled RMB six key points.
Speaker Change: <unk> 6 billion.
Speaker Change: Our 14th 14 6 billion.
Speaker Change: We launched our <unk>.
Speaker Change: <unk> sure.
Speaker Change: Purchase program in August of 2024, running concurrently with the March program, which allows us to buyback up to U S. Dollar 350 million of shares.
Speaker Change: Since our announcement of the August program.
Speaker Change: As Jonathan has mentioned, we have repurchased a total consideration of approximately U S. Dollar of 130 million, making the total buyback of March reached USD 220.
Speaker Change: This year, demonstrating our commitment that you shareholders returns and long term confidence of our business.
Yu Zhang: And now, for our business outlook, for the fourth quarter of 2024, we expect the total revenues to be between RMB 1.795 billion and RMB 1.81 billion.
Speaker Change: Now for our business outlook for.
Speaker Change: For the fourth quarter of 2024, we expect total revenues to be between RMB, one 795 billion and RMB.
Speaker Change: RMB 181 billion.
Yu Zhang: a year-on-year increase of 13.6% to 14.5% That concludes our prepared remarks and now we would like to answer questions.
Speaker Change: Our year on year increase of 13, 6% to 45%.
Speaker Change: That concludes our prepared remarks, and now we would like to answer your questions. Operator. Please go ahead with the <unk>.
Operator: Operator, please go ahead with the queue.
Operator: Thank you. If you'd like to ask a question, please press star 1.
Speaker Change: Okay.
Speaker Change: Thank you if you'd like to ask a question. Please press star one one.
Operator: If your question has been answered and you'd like to remove yourself from the queue, please press star 11 again.
Speaker Change: If your question has been answered and you'd like to remove yourself from the queue. Please press star one again.
Eddy Wang: Our first question comes from Eddy Wang with Morgan Stanley, your line is open. Thank you, Mr. Zhao and Mr. Wenbei. Thank you for accepting my question. First, since the end of September, the government has introduced a series of knowledge-based macro-policies. Does this help with the recovery of the job market? Have we seen any improvements in operating data in response to these macro-policies?
Speaker Change: Our first question comes from Eddy Wang with Morgan Stanley. Your line is open.
Speaker Change: Okay.
Speaker Change: John Sullivan.
Speaker Change: Got you.
What's your Danielle <unk>.
Speaker Change: <unk> doses.
Speaker Change: Joanne to Eni Bok, Geoffrey T shirts with Harley.
Speaker Change: Just switching to <unk>.
Speaker Change: Women job Mr. Tom for.
Speaker Change: You're bound to Mr Paulo <unk>.
Speaker Change: Just on the cars.
Speaker Change: So you can take a whole bunch I'm, just asking Mckenzie Steven.
Eddy Wang: Secondly, we are still not sure about the macroeconomic situation in the fourth quarter. This uncertainty may continue until next year. In this uncertain macroeconomic situation, how can we maintain income growth next year?
Jonathan Joseph Shaw.
Speaker Change: Conan on kind of what you do with Genco home Gwen Joel how shipyard portrait.
Speaker Change: John the Cardinal should Armenia.
Speaker Change: Mr. Tom clinical touch within the home <unk> Shah.
Speaker Change: <unk>, just about Sylvania industrials and John what's the just kind of finally Asia.
Eddy Wang: Let me translate it for you. Thank you, management, for taking my question. I have two questions. The first one is that the government has launched a sense of policy since September end. Have you witnessed any, you know, signs of this policy has helped? The second question is, given the uncertainty of the macro economy, which could sustain into 2025, how should we think we could maintain the revenue growth in 2025?
Speaker Change: Thank you management for taking my question.
Speaker Change: I have two questions. The first one just adds.
Speaker Change: The government has.
So part of the policy.
Speaker Change: September end.
Speaker Change: Yes.
Speaker Change: Have you witnessed any signs of this policy.
Al Pacino posted the recruitment market.
Speaker Change: One is ending.
Speaker Change: Matrix improvements as well.
Speaker Change: The second question is just given the uncertainty of the macro economy.
Speaker Change: Joseph Dan into the country, how shall we think we could maintain the revenue growth in 2025. Thank you.
Peng Zhao: Thank you for the question, I will answer it now. Thank you. This series of policies at the end of September As we can see, they'd add more customers to the company.
Speaker Change: Politician Lynch, a whole lot of choice.
Speaker Change: Uh huh.
Speaker Change: Thank you.
Speaker Change: Sure.
Speaker Change: At the center.
Speaker Change: For a long time.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Sure sure Francesco.
Peng Zhao: 出现同比变化 Please note that every year, November and December is actually a... to commonly recognize. It floods in every November and December.
Speaker Change: <unk> BMO.
Speaker Change: Yes.
Speaker Change: Kimberly.
Anesthesia.
Speaker Change: Yes.
Speaker Change: Tom.
Speaker Change: Thank you.
Speaker Change: NSE strategy is EBITDA.
Peng Zhao: For the 这是一个好消息 随之而看,十一月跟十二月,现在已经到了十二月的上半年了。 This trend has been maintained so far.
Speaker Change: So <unk>.
Speaker Change: And then a couple of short.
Speaker Change: Yes, Joel can be down.
Speaker Change: Good morning, Jay.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: The past few years this jar yet Tonight.
Speaker Change: Yes.
Speaker Change: Sure Chad.
Speaker Change: Yes.
Peng Zhao: This is the first topic I want to talk about.
Speaker Change: As you work out the data.
Peng Zhao: Thank you for your question.
Speaker Change: Thank you for your question.
Peng Zhao: About the first one regarding the supporting policy since the end of September. I have, I have several observations to share with you. Firstly, we noticed that the newly added enterprise users every day has been improving on a year-on-year basis since the end of December, October. And please note that November and December are traditionally a relatively long season for recruitment. However, the newly added enterprise users improving on a year-on-year basis since October, my understanding is that this is good news. And this trend has continued into November and December.
Speaker Change: The first one regarding the supporting policy since the end of September.
I have I have several.
Speaker Change: Our observations to share with you firstly, we noticed that the newly added enter prices every day.
Improving on that yet.
Speaker Change: And year basis since the end of October.
Speaker Change: And please note that.
Speaker Change: November and December.
Traditionally.
Speaker Change: Bertrand low season for recruitment.
Speaker Change: <unk> newly added enterprise users improving year on year basis.
Speaker Change: My understanding is that this is a good news and this trend has continued into November and December.
Peng Zhao: We are all very concerned about the CBB, Job Seekers, and Reputers. This proportion continues to decline According to the report, the gap between July and September is higher than last year. The current situation continues to decline, and the current ratio relationship is better than the same period last year. have reached a low level this year. I personally understand that. This shows that the supply and demand imbalance in the employment field is improving. This can be seen from our data.
Speaker Change: Now, let's see.
Speaker Change: Could you dive a little question Diego CBD after Jabil see BP.
Speaker Change: <unk> top secrets right.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Hello.
Speaker Change: She bought it for sure.
Speaker Change: There won't be a sure country dnb's called it.
Speaker Change: She has added some combat ship polo shirt.
Speaker Change: <unk> you <unk>.
<unk>.
Speaker Change: Todd on the TNT integration.
Speaker Change: Well go ahead and Vijay.
Speaker Change: Sure.
So julien with the confusion.
Speaker Change: Chad.
Speaker Change: So what you see.
Speaker Change: Yes.
Speaker Change: Okay.
Peng Zhao: And the second thing about the job seeker to recruiter ratio, which I believe many of you are concerned, have been continuing to fall back. I have just discussed in my prepared remark that during July to September that number is high compared to the same period last year, and now it is lower than the same period last year and reached a relatively low level within this year, which means the supply and demand unbalance issue is improving.
Speaker Change: And the second thing about that.
Speaker Change: Job seekers to recruit a ratio which.
Speaker Change: I believe many of your concern has been continue to.
Speaker Change: Our fallback.
Speaker Change: I have just been discussing our.
Speaker Change: My prepared remarks that during July to September that number is high compared to the same period last year and now it is.
Speaker Change: All right in the same period last year and reached a bunch of the low level is in this year.
Speaker Change: Which means the supply imbalance.
Speaker Change: I am demand imbalance issue.
Speaker Change: Truly.
Peng Zhao: Although this is the case, I still think that, after all, from the policy to the actual situation, In terms of economic data, especially when it comes to hiring, there must be a transition process. So I think we need to stay calm in this matter. Even though despite of this good news, good signs, my understanding is that this supporting policy need take some time to transfer into actual improvement of economy and actual improvement of enterprise recruitment demand. So this should take some time and we should stay patient and calm.
Speaker Change: Yes sure.
Speaker Change: Absolutely.
<unk> jumps up bar should be.
Speaker Change: Sure Jonathan.
Speaker Change: You would see EQT at all she.
Speaker Change: She is talking total sweetheart chiquita.
Speaker Change: Hi.
Speaker Change: China quarter.
Speaker Change: Sure Josh.
Speaker Change: And despite of this good news with my.
Speaker Change: That is supporting policy may take some time to transferring the actual improvement.
Speaker Change: The economy and employment excellent momentum.
Price for cooling demand. So this should take some time and we state.
Patients in comp.
Peng Zhao: You asked about this...
Yes.
Peng Zhao: The second question is, in the face of a series of uncertainties, how can we guarantee that the income will increase next year? I actually have a few opinions on this.
Speaker Change: Yes.
Yes.
Speaker Change: The trading team.
Speaker Change: Current treatment system.
Speaker Change: What you say.
Speaker Change: Okay.
Peng Zhao: First of all, we have some stable and clear drivers for our income growth. The first one is the growth of users. It seems that we expect to see an overall growth of users of 15% at least next year. Therefore, even if the growth rate at the B-end may be slower, I still think it is still a trend of growth. If the macro situation can be stable and good, then there is hope that the growth at the B-end will be better. So I think the users are my driving force.
Speaker Change: So agenda.
Speaker Change: So with Sungard.
Speaker Change: Sure Vijay.
Speaker Change: Our data should drive us.
Speaker Change: Steve.
Speaker Change: Well isn't that kind of on the enrollment.
Speaker Change: Hi, Julio.
Speaker Change: Hey Ali.
Speaker Change: Thank you Sundar.
Speaker Change: Into the heart GBS of feed on the <unk>.
Speaker Change: Thank you.
Speaker Change: Sure drew.
Well I'm glad that you called level of detail.
Speaker Change: Will that be done at <unk>.
Speaker Change: Affiliate of volatility with knowledge of where they.
Speaker Change: Kind of genetic driver.
Peng Zhao: About the second question, facing the uncertainty of macro, how we can guarantee our continued revenue growth trend. We have several key structural growth drivers for our revenue, which is still unchanged. The first thing is the user growth. Even though of all these uncertainties, we expect that we can still have at least 15% of overall user growth. The enterprise side might be slower, but still it can grow. And if the macro can stable at some level, then we expect the enterprise side to have better performance. So our user growth as the most important driver is still quite solid.
Speaker Change: About the second question facing the uncertainty of macro how we can guarantee.
Speaker Change: Continued revenue growth trend.
Visteon Cheng: We have several key structural growth drivers for our revenue, which Visteon Cheng.
Visteon Cheng: First thing is that unit.
Visteon Cheng: Alright.
Visteon Cheng: With all these uncertainties.
Visteon Cheng: We expect that we can still have at least 15% overall user growth.
The enterprise side might be slower.
Visteon Cheng: And if the macro kind of stable at some level than we expected enterprise side better performance. So our user growth as the most important driver is still quite solid.
Peng Zhao: One of my most stable drivers is Fung Fei-Li.
Speaker Change: Yeah, all of you to the tower and beyond the <unk> issue.
Peng Zhao: 现在来看,有几个观点可以讲. The first aspect is that my whole cost-benefit ratio, 第一个观点就是,我的整个付费率的情况 The first aspect is that my whole cost-benefit ratio, 5%, 10%, 20%, 30%, 40% This is how it has developed over the years So my overall trend is The trend of my return on investment is Shi Xie Ran Le And the second important driver is our playing ratio can still maintain a stable level. If you're looking back, our pain ratio started at even like zero or five percent and improved along along these years now reaching at like 20 to 30 percent level. And so the upward trend is unchanged.
Speaker Change: As shown on that comment.
Speaker Change: Well, that's a good idea that.
The two months' at home Andrew.
Speaker Change: Andrew will then issue bonds.
Speaker Change: Mr Jong in Yang.
Speaker Change: Okay.
Sure sure sure it was a full review.
Speaker Change: Sure sure sure.
Speaker Change: Okay.
Speaker Change: And the second important driver is.
Speaker Change: Our paying ratio is still maintained a step on that.
Speaker Change: If you're looking back our paying ratio started at <unk>.
Speaker Change: Zero or 5% and improved along along with this years now reaching at Mike.
Speaker Change: Percentage level.
Speaker Change: Yeah.
Speaker Change: And so that the upward trend.
Speaker Change: Unchanged.
Peng Zhao: In addition, we just mentioned a point of view, which is actually...
Speaker Change: Hey wanted to issue at all.
Speaker Change: Yes.
Speaker Change: Sure.
Peng Zhao: A bad level is closely related to a weak level. By which we mean the ratio of attacking attackers and defenders. We have already mentioned that the warming of the air-to-air ratio has improved.
Speaker Change: Alright, Thanks Mark.
Bob.
Speaker Change: Sure Doug.
We chose to either by Ashish.
Speaker Change: Sure.
In Australia.
Speaker Change: Good.
Speaker Change: Yes.
Speaker Change: Let me get <unk>.
Peng Zhao: As for my skill level, I will continue to practice under the same condition. And another opinion is that the increase of paying ratio has some connection with the supply and demand balance. And as the sign of the supply-demand balance improving, we expect that if the economy can be stable, then our paying ratio can return to our growth trend.
Speaker Change: No.
Speaker Change: Shifting that option does demand shock.
Speaker Change: And another P&A, our pay to increase our payout ratio.
Connection.
Speaker Change: Supply and demand balance and as the sign of the pipe among balancing pooling.
Speaker Change: We expect that the economy can be stable and our claim ratio can we turn to our.
Speaker Change: Gross churn.
Peng Zhao: If the United States... As we continue to develop, my pay-as-you-go rate will also increase significantly. if the macro can actually continue to go back to growth, then my pain, our pain ratio will experience a significant improvement.
Speaker Change: Ruble combined LNG.
Speaker Change: Judy shop AGA the motion films.
Speaker Change: Or the affiliate issue yes.
Speaker Change: Yes.
Speaker Change: So no.
Speaker Change: If the macro actually.
Speaker Change: Can you go back to growth in my opinion, our paying ratio.
Can you be.
Speaker Change: Yeah.
Peng Zhao: My third driver is Aputure. I don't have...
Speaker Change: Well it is on the Taiwan should Youre sure.
Speaker Change: Our tortilla chip Wilson.
Peng Zhao: It's a very aggressive way to raise the motivation and needs of the Chinese people.
Speaker Change: All right.
See how rapidly.
Speaker Change: <unk> for the <unk> Ashish.
Speaker Change: With drivers.
Speaker Change: So how would you then obviously the upper abdomen.
Speaker Change: The Trillium team that Germany, Germany, the shifting John Mcdonald with autonomous.
Peng Zhao: In this way, I have talked about the three drivers of our income growth. And the third driver is our pool. As far as we have got the first and second driver, which is now, we are not in a hurry to aggressively increase our pool. So it will keep at a stable and slightly improvement trend.
Speaker Change: So dominant in the Congo.
Speaker Change: Drivers.
Speaker Change: And the third driver is our pork.
Speaker Change: We have got our first and second driver, which is not we are not in.
Speaker Change: Hurry to aggressively increase our salad kit.
Speaker Change: Stable and slightly improvement trend.
Peng Zhao: So I have a...
Speaker Change: No not really.
Speaker Change: Yes.
Speaker Change: Yeah.
Peng Zhao: Which one of you is this driver and whether you've noticed him around? I saw the income of our men in the third quarter of this year. to a level of 38%. For me, it's still very important in terms of operation.
Speaker Change: Go ahead Larry.
The drivers.
Speaker Change: Two adult tissues.
Speaker Change: So.
Speaker Change: To put all of that and decided bajaj.
John can you share continues at high so thats still what I saw.
Speaker Change: Toyota.
Peng Zhao: 因为我们在几年前 Because a few years ago 有伊利沙主义 I will try my best to solve it. especially the production. 越是虚高的工资越能拿到 The higher the salary, the more you can get and Qiu Zhizhe.
Speaker Change: Yes sure.
Speaker Change: Sure.
Speaker Change: Jim clinical oncology in June.
Speaker Change: The other tissues.
Speaker Change: Yes.
Speaker Change: Would it be.
Speaker Change: You have to ship all of the homes.
Speaker Change: Sure.
Peng Zhao: The whole market is in a mess.
Speaker Change: Shortly John Jim grocery shopping.
Peng Zhao: 所以我们执行了海螺计划 然后我们寄希望于某一天 And we hope that one day There are more intermediaries who can recognize us. Let's play this game together in a dignified way. Okay, now I see the money.
Speaker Change: So they will be reducing mouth hydrology.
Speaker Change: Yeah, Hello Atlanta.
Speaker Change: GCU Ali Moggy kit.
Speaker Change: Can we get it to you both.
Speaker Change: Hello, Matt.
Speaker Change: Each of that in the <unk>.
Speaker Change: Okay.
Speaker Change: That said our channel.
Peng Zhao: I think it's a connection between ideal and reality. So I still have a chance to grow in the blue team.
Speaker Change: Oh sure eshop for Fireeye.
Speaker Change: And yet.
Speaker Change: So how does that I know you shop.
Speaker Change: Okay.
Speaker Change: Yeah.
Peng Zhao: And I have an additional revenue growth driver, which is our blue-collar business. Our blue-collar contributed more than 38 percent in the third quarter of our total revenue.
Speaker Change: And I have some additional revenue constraint, which is our blue collar business.
Speaker Change: Yes.
Speaker Change: Our full color contributed more than 38% in the third.
Peng Zhao: This is a quite important breakthrough. Several years ago, I had the idealist thought that I want to resolve the problem in the blue-collar manufacturing recruitment industry, which is bad money driven out of good money, and people with decent background cannot get good jobs. So we launched the Conch High Road project in the hope of someday, one day, the top good college agents can agree with us to agree with our rules to do recruitment business on our platform. And now, we have saw some real money coming back from this, which is our dreams coming into the reality.
Speaker Change: Turbo power tool program. This is quite important.
Speaker Change: There were years ago.
Speaker Change: Our idea is to.
Speaker Change: I want to resolve the problem in the blue collar manufacturing equipment industry, which is that money.
Speaker Change: Good money and people with different backgrounds cannot get good jobs. So we launched the hangar.
Speaker Change: And our projects in the Hopper.
Speaker Change: Some day, one day, the top score cartage agents Ken.
Speaker Change: Accordingly.
Speaker Change: To agree with our Ruth two <unk>.
Speaker Change: Two equipment business platform and.
Speaker Change: No.
We had saw some.
Speaker Change: Money coming back from these with our trades coming into their reality.
Peng Zhao: That's my answer to your question.
Speaker Change: You talked to well played out that's my answer to your question.
Peng Zhao: Xie Xie Da Ge, Li Xie Yang He, Xie Xie Okay, let's move on to the next question.
Speaker Change: Please go ahead.
Speaker Change: Okay.
Speaker Change: Let's now move onto the next question.
Timothy Zhao: Thank you. Our next question comes from Timothy Zhao. Yes, your line is open.
Speaker Change: Thank you. Our next question comes from Timothy Zhao with Ges. Your line is open.
Timothy Zhao: Okay, Mr. Zhao and Mr. Wenbei, thank you for accepting my question. The first question is... of Mainland China, and General Assange. and many more.
Speaker Change: Hello.
Speaker Change: Are there any government data.
Speaker Change: Hello, Giovanni over Jon Cohen.
Speaker Change: Do you have into <unk> sensor go ahead, some concrete ticks all of these elements and Utah, who will come slowly embedding go good.
Speaker Change: I'll close with <unk>.
Timothy Zhao: As mentioned in the previous call, How is the income and output of each company?
Speaker Change: Nelligan Qualcomm you keyed elements Angelo Johnson to our push of Delavan now Copel day. Thank you that's highly valuable image Schiffman, Joe Goodwin with.
Speaker Change: With backhaul.
Speaker Change: Overall, ETR petition calling for things to do.
Timothy Zhao: The second question is about our users. Because we also talked about...
Speaker Change: Donald <unk>.
Speaker Change: Without <unk> so much at all clinicians on the Donkey help Australia you Kim.
Speaker Change: Hello, Hi, Jonathan I got that clear in the opening 19, Jason I wanted to I don't know.
Timothy Zhao: Now I would like to ask some questions as to how do we envision the public space for individual users? Thank you. Thank you very much.
Speaker Change: Thank you Joyce element that Patricia.
Would there be any issues there are no questions in queue women.
Speaker Change: Yes.
Michael Gaugler: Michael Gaugler.
Michael Gaugler: With all that and just shows going over to Jacob.
Speaker Change: You always have yet not done Q2 last year.
Speaker Change: Thank you all for your sales opportunity.
Speaker Change: Cody.
Speaker Change: Hi, Thank you.
Speaker Change: Thank you Mike for taking my questions. My first question is regarding the a more detailed breakdown into the third quarter, including the.
Timothy Zhao: My first question is regarding the more detailed... and white-collar sectors. Might we mention that our pool overall etc.
Speaker Change: So customer performance between industrial kind of Aflac hauler.
Speaker Change: Sector as well as different sectors subsectors as well.
<unk> mentioned that our pool overall is relatively stable in the third quarter Ocwen mentioned for a more color in terms of our pool and revenue trend between Smes and key accounts.
Timothy Zhao: And then when it comes to the camera, you can see the entire group as an aggregated 1D picture, quoting their time in Canton, 2015. It's also very interesting perceiving how many people visited CCTV inolligibly. On the other hand, CS50 has no attraction to CCTV,akahs 6% of its viewers are over 90 years old. They are not canon.
Speaker Change: Second question is regarding the user growth.
Speaker Change: As management mentioned that.
Speaker Change: I think.
Speaker Change: First nine months of this year or do you already 40 million newly added verify users and the market condition.
Speaker Change: Individual users who are already.
Or get close to 200 million commitment.
Speaker Change: Next year about a foot her room for that individual users to grow and as we any full 15% or more than that growth into next year. How should we think about the sales and marketing expenses or the marketing expenses into next year. Thank you.
Timothy Zhao: Let's see what we have next. who might want to share about.
Peng Zhao: Okay, let me talk about... To the audience out there wants to know the classification of the players The maximum number of blue� are clearly higher than the 100m or so From the perspective of income, Lanling's income accounted for 38% of the total revenue. However, compared with last year's statistics, Lanling's increase is slowing down The main reason is that the service industry's increase is slowing down This is the situation in the blue team.
Speaker Change: Felicia two shares.
Speaker Change: In Shanghai, we have affinity platform language learning also.
Speaker Change: Sure.
Speaker Change: Oh, you are adding but also.
Speaker Change: Kudos to the tone from shoulder will adjust to that.
Speaker Change: Good job.
Speaker Change: Aligning the short term.
Speaker Change: Thanks, Bob.
Speaker Change: Okay.
The 120.
Speaker Change: When she is holding up.
Speaker Change: <unk> also showed up on that.
Speaker Change: The other thing is just kind of weird.
Speaker Change: So until that time.
Speaker Change: Sure Larry.
Peng Zhao: The situation in the white team is relatively stable.
Speaker Change: Mentioned alpine in the two modules for Sean.
Speaker Change: Okay.
Peng Zhao: Let's take a look at the industry.
Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Peng Zhao: Thank you for your question.
Thank you for your question the first one regarding different too.
Peng Zhao: First one regarding different blue-white collar and industries. Of course, the overall growth rate of blue collar is still faster than white collar. As I just mentioned, the revenue contribution has further increased to over 38%. However, compared to the same period last year, we have seen the blue collar revenue growth rate have been significantly slowing down, which was mainly affected by the weak urban service industry performance. Compared to blue collar, white collar is relatively stable.
Speaker Change: Two white collar industries.
Speaker Change: Hum.
Speaker Change: Of course, the overall growth rate of Blue collar.
Speaker Change: Foster white corner.
<unk> mentioned the revenue contribution.
Speaker Change: Two quick two hours to 8% however, compared to the same period last year, we have seen the blue collar revenue growth rates have been.
Speaker Change: Significantly slowing down which was mainly affected by the weak.
Speaker Change: Urban farming industry from.
Speaker Change: Compared to my color, it's relatively stable.
Peng Zhao: In the industry, As I said, the service industry has been weak since the 20s, and we have seen some signs of recovery recently, which is the service industry, which is worth mentioning.
Speaker Change: Hi, Anna.
Speaker Change: For the full year Novartis.
Speaker Change: Our Sui latter path.
Speaker Change: Kilowatt hour THC high volume share liquidity.
Speaker Change: Sure.
Speaker Change: Daiichi.
Peng Zhao: Another bright industry is the manufacturing industry. logistics and warehousing, and then the automotive industry is actually the industry with the best performance in the third quarter and the recent period For example, the income of the manufacturing industry in the third quarter has increased by more than 40% compared with us In terms of subsectors, as I just said, the urban service industry has been relatively weak since the second quarter. However, we covered a little bit in recent weeks.
Speaker Change: Do you want to add.
Speaker Change: Yes.
Speaker Change: Sure I'll, yes I'll.
Speaker Change: Our town Hall.
Audio is harmful.
Speaker Change: Our tissue.
Speaker Change: Sure Sanjay.
Speaker Change: Gotcha.
Speaker Change: The rule should all thank you to the federal government will be the Johnson travel that just social.
Speaker Change: In term in terms of Subsectors.
Speaker Change: I just said the service industry has been relatively weak second quarter, However, I will comment a little bit.
Speaker Change: In recent weeks.
Peng Zhao: For the better performed industries, we have several highlights. Manufacturing industries, logistics and warehouse, automobile are the three best performed industries in the third quarter and the recent weeks. For example, the manufacturing industry has a year-on-year revenue growth of more than 45% in the third quarter.
For the better performance in the Chase Manny is that we have several highlights manufacturing manufacturing industries.
Speaker Change: This takes on warehouse.
Speaker Change: Mobile ad free.
Speaker Change: <unk> performed in the shape and the third question.
Speaker Change: Two weeks.
Speaker Change: For example, with manufacturing industry.
Speaker Change: Yes.
Speaker Change: Revenue growth was more than 45%.
Speaker Change: In the third quarter.
Peng Zhao: From our company's scale, 3G is ... 两头,两头比较明显,一个就是... 超级大的企业,超过一万人的企业,这些企业在增长上的 表现是最好的 The second place is actually...
Speaker Change: California is a good one.
Angela.
Now Paul we don't yet.
Speaker Change: The total balance sheet total you lapped that yet.
To hit.
Speaker Change: Sundar.
Speaker Change: Gotcha.
Speaker Change: The timing is.
Speaker Change: Sure.
Peng Zhao: 比100个人少的小微企业 This is good news for us, because most of the Chinese companies... Xiao Weiqi and the growth of small and medium-sized enterprises. And about the different size of enterprises, we noticed these are on the true end of the market. First one is a super hyper scale enterprise with more than 10,000 employees perform the best in the third quarter. And the second one is a small and micro sized enterprises with employee less than 100 people. My understanding that this is actually a quite good news because a majority of China's enterprises are small sized companies, which is also the main.
<unk> had a solid shot shell shell.
Speaker Change: Okay.
Speaker Change: Absolutely pacifico portfolio charged.
Speaker Change: Look at Amazon.
Speaker Change: Sure.
Speaker Change: Also this year the sungard seizure shoreline.
Speaker Change: Okay.
Speaker Change: Shoot with annual update.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: And about the different size of enterprises, we notice is that true.
Speaker Change: And of the market first one is the hyperscale.
Speaker Change: Hyperscale.
Speaker Change: Enterprise with more than 10 Sullivan employees performed the best in the third quarter and the second one.
Speaker Change: Small and micro sized enterprises with employee lesson.
Speaker Change: Okay.
Speaker Change: My understanding that this is actually a quite good.
Speaker Change: Because majority of Chinas enterprises ask more questions companies, which is also the main.
Peng Zhao: contribution of our new users, new enterprise users.
Speaker Change: Contribution of our new index.
Speaker Change: Enterprise users.
Peng Zhao: I'd like to add one point in regards to our three accounts breakdown. Key accounts recorded the highest revenue growth, which is up more than 30% year over year. the overall 5% year-over-year, a flat quarter-over-quarter among all three segments.
Yes.
Speaker Change: I'd like to add one point regarding our three accounts breakdown.
Speaker Change: Key accounts recorded the highest revenue growth, which is up more than 30%.
Speaker Change: Year over year.
Speaker Change: No overall.
Speaker Change: Yes.
Speaker Change: <unk>, 5% year over year.
That quarter over quarter.
Speaker Change: All three segments.
Peng Zhao: key accounts are who improved the most.
Speaker Change: Costs are improved as the most.
Speaker Change: Okay.
Peng Zhao: ok! Regarding the space for increased user history, for this question, This is the first set of data I want to talk about.
Speaker Change: <unk> was $1 <unk>.
Speaker Change: Sure.
Speaker Change: Well these will produce our shlomo.
Peng Zhao: 根据多个渠道,多个管道的,根据多个渠道,多个管道的, When the Chinese industry reopened, the market situation in Shenzhen changedats.
Speaker Change: And disposal.
Could you talk a little bit.
Speaker Change: Thank you.
Speaker Change: My apologies.
Peng Zhao: How was the exhibit? 也就是說我們還有一輩子的空間 That is to say, we still have a generation of space.
Speaker Change: Chicago season.
Speaker Change: Yes, sure, Ohio, you paid yet.
Peng Zhao: 继续去发展 Keep developing And about your second question of our user growth potential, it's actually a quite good question. So we have actually started through several different channels or methodologies that come to a conclusion that China's marketable employees, the number of China's multiple employees are more than 400 million, which means we have a double space to grow. As I said, there is room for growth for users at the C-end, and there is more room for growth for users at the B-end. According to official data, the number of Chinese companies... between 40 million and 50 million.
GCC projects.
Okay.
Speaker Change: And about your second question of our user growth potential is actually a quite good question.
Speaker Change: So we have actually started to several different channels on methodology that come to a conclusion that China's marketable.
Speaker Change: Importantly, the number of Tennant, Mexico employees and more than 400 million, which means we have.
It's a space to grow.
Go ahead gentlemen.
Speaker Change: Another congested I'm upbeat on that.
Speaker Change: Daniel.
Speaker Change: Thank you.
Speaker Change: One is on top of that.
Speaker Change: Yes.
So China talk with Taylor on for Danielle <unk>.
Peng Zhao: 也也有管道说超过5000万,不管怎么样说从我们的 In terms of the advantages of the service, we are actually... Su Yutu Xiaowei Enterprises, and many others.
Speaker Change: EBITDA of $1 for a total of <unk>.
Speaker Change: The outflows from Goldman.
Speaker Change: Will the usual at Palomar tissue.
Speaker Change: C pool.
Speaker Change: Shall Acs.
Speaker Change: Later this year.
Peng Zhao: 所以我们的 So our This should be the end of the first movie The market penetration rate is still very low and there is still a lot of space. And on the enterprise side, the room or space is even bigger. The official number is that China has 40 to 50 million enterprises. Some channels say even more than 50 million. No matter what, we have very strong advantages in terms of enterprise-side service because our model is very suitable for small or even micro-sized companies and across different industries, which can support a very strong and large room for our enterprise users.
Speaker Change: So you won't.
Speaker Change: Steve.
Speaker Change: Sure Tony.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: And on the enterprise side those.
Speaker Change: Spaces, even bigger.
Official number you said China has more.
Speaker Change: 40 to 50 million enterprises from China.
Speaker Change: More than 50 meter.
Speaker Change: No matter, what we we have very strong advantage in terms of enterprise size service because.
Speaker Change: But our model I'm ratios for small Michael sorry.
Please.
Speaker Change: Across different industries, which can support Murray.
Speaker Change: Norm.
Speaker Change: Large.
Speaker Change: Enterprise users.
Peng Zhao: 明年我没有打算会... It costs a lot of market capital to acquire users. There are two reasons. The first reason is that... 现在的比较好的一个双边网的效应 已经使得我们其实在 It has already made us, in fact, 新增用户当中的 自然流量的占比已经是比较高 And we are not planning to spend a lot of money on marketing or user acquisition.
Speaker Change: EMEA will no doubt promptly.
Speaker Change: Cough and border should help pay off.
Speaker Change: What are your salary.
Angel: Thank you Angel.
Angel: Sure.
Angel: Beyond holiday Eagle from BMO.
Angel: Yes, sure I'll answer that.
Angel: She's willing we're dominant.
Angel: Sure.
Angel: The alcohol.
Angel: Okay.
Angel: And I'm not planning to spending.
Angel: A lot of money on marketing.
Peng Zhao: There are two reasons. First, due to a very strong double-sided network effect, the natural traffic has accounted for a very significant portion of our newly used users. The second reason is from a technical point of view, from a strategic point of view, we don't have a large-scale campaign that is worth spending a lot of money on in 2025. Therefore, I think we will maintain a...
Angel: Edition Dr. Trinidad.
Angel: Due to a very strong double sided network effects the natural traffic.
Angel: For a very significant portion of our annuities units.
Angel: And again the age of the phone.
Speaker Change: Hi, Joe Hi, Joe.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Blood Center, a tiny portion of the campaign.
Speaker Change: So you're in Ohio, which I don't want to talk.
Speaker Change: Obviously the.
Peng Zhao: that's all for you. and the second reason is technically speaking there is no big events or marketing campaign which we need to spend more money on so as a result we will keep our marketing spend relatively low level And that's my answer to your question.
Speaker Change: I'll talk to you.
Speaker Change: And this really technically speaking there is no big events.
Speaker Change: Okay, which we need to or spending more money. So as a result, we will keep our max expense that can be both.
Speaker Change: Okay.
Speaker Change: And that's my answer to your question.
Operator: Thank you, Timothy. And operator, let's move on to the next question.
Thank you and operator, let's move on to the next question.
Wei Xiong: Thank you. Our next question comes from Wei Xiong. QBS. Thank you, Mr. Zhao, Mr. Yu and Mr. Wenbei. Good evening. Thank you for accepting my question. I also have two questions to ask.
Speaker Change: Thank you.
Speaker Change: Next question comes from Wei Zhang with.
Speaker Change: With UBS your line is open.
Speaker Change #100: Accs Jojo you Bill Johnson with Goldman <unk>, guys as you look here at <unk>.
Wei Xiong: First, I have a follow-up question about Lanling. I would like to ask about the next development strategy of our Lanling business, including, for example, the manufacturing industry, and other Lanling business plans other than the manufacturing industry. Do we have any plans to deploy more offline services in Lanling? Also, can you update the management team on the competition pattern in the blue-collar industry? Have you seen any changes?
Linda Johnson with Joe Glenn Landau, Andre I have a follow up of MTI, Joe sounds from Julien Dumoulin.
Speaker Change #101: Shypoo forgotten, though John.
Speaker Change #101: Bulk will be how much is all youre J Danielle how should all your wireless Chipotle I don't Yeah. We commented to you walk the halls Admins, Atlanta, Andre Daniel meal to Harsco Chip would you be welcome to attend.
Speaker Change #101: Last 1 billion number question Glenn is Hong Kong <unk>, Yeah, the Jones from.
Speaker Change #102: Can I ask about the Ava.
Wei Xiong: My second question is about next year's profit. Because in the face of uncertain macro-continuity, our management team has further clarified the importance of profit, and our profit margin has been relatively low. If we look at the next year's profit target, where do you think the main profit space will continue to increase from? And will there be any potential new investments?
Speaker Change #102: Glenn Please ask with all the tragic Armenia and I'll leave with you is that when one tricia.
Speaker Change #102: As you appreciate any chance you guys I'm glad it's all yes.
Speaker Change #102: James Omnichannel Twilio and the panel that's only one lever that you ship out should I had will be Dutch housing <unk>.
Speaker Change #103: And we'll be Aloha.
Speaker Change #104: <unk> sure Kishore Nokia <unk>.
Speaker Change #104: I'll quit with you Ken.
Speaker Change #105: Ken Zaslow since on the total <unk> with Citibank.
Wei Xiong: Thank you, management, for taking my question. My first question is on blue-collar recruitment. Could management maybe share your future growth strategy for the blue-collar business around manufacturing and other verticals? Do we plan to build our offline service capabilities for the blue-collar recruitment? And also, have we observed any change in the competitive landscape here?
Speaker Change #106: Thank you management for taking my question.
Speaker Change #106: My first question is on Blue collar recruitment could management share your future growth strategy for the blue collar business around manufacturing and other verticals do we plan to build our offline service capabilities for the Blue collar recruitment and also have we observed any change in the competitive landscape here.
Wei Xiong: And second, just on the profitability outlook for next year, I understand management has shown a very strong commitment to protecting profitability in light of the macro uncertainties. So if we just look at our profit goal for the next year, what do we see as the major drivers for profitability improvement? And is there any potential new investments that we should consider?
Speaker Change #106: And second just on the profitability outlook for next year understand that management has shown a very strong commitment to protecting profitability in light of the macro uncertainties. So if we just look at our profit goal for the next year.
Speaker Change #106: What do we see asthma major drivers for profitability improvement.
Speaker Change #107: Is there any potential new investments that we should consider thank you.
Peng Zhao: Thank you. Okay, we can see that... especially in the field of manufacturing.
Speaker Change #107: Although women future Canadian Cosmos.
Speaker Change #107: Yes.
Speaker Change #107: Hello.
Speaker Change #107: In Texas, I aligning tonnage at Ingalls.
Peng Zhao: I'd like to sum up. In essence, it is a vision that is becoming a reality. What is this vision? This vision is that factories, intermediaries, workers, and platforms The four of us can be a co-existence. Because of co-existence, because of the rules of the game, we can all be more efficient. Zheng You Zun Yan to earn money. So this vision is... a little bit of reality.
Johnson J shop.
Sure.
Speaker Change #107: Sure.
Yes sure.
Speaker Change #107: Sure John.
Speaker Change #107: Thanks Hock.
Speaker Change #107: Good morning.
Speaker Change #107: King.
Speaker Change #107: Well I'm not sure John.
Speaker Change #107: So you go into the balance sheet.
Speaker Change #108: Sir you May proceed.
Speaker Change #108: But frankly.
Sure.
Speaker Change #108: Yeah.
Speaker Change #109: Got it out yet so I can assure donna timber Huntington.
Speaker Change #110: Sure Sheila.
Okay.
Peng Zhao: Okay, thank you for your question. We just talked about the improvement, the achievement we have in the blue corner, especially manufacturing factories. So the essence of that is actually this idea or concept become reality, which is the factories, intermediaries, workers, and the platform. Those poor parties can co-exist under one co-recognized game rules, which can allow everyone to be more efficient and earn money with dignity. And now that idea has come into reality.
Speaker Change #110: Okay.
Speaker Change #110: Thank you for your question.
Speaker Change #110: We just talk about the improvement to that.
Speaker Change #110: Okay.
So in that.
Speaker Change #110: That does some of that is actually <unk>.
Speaker Change #110: Our idea or comes back.
Speaker Change #110: We changed that Kris intermediaries workers and platform those poor parties.
Speaker Change #110: In this call in this under one.
Speaker Change #111: Recognize that.
Speaker Change #111: Which can allow everyone to be more efficient and our money.
Speaker Change #111: And now a bad.
Speaker Change #111: It has come in Trinidad.
Peng Zhao: It was a very difficult process, and I'll talk about the essence of it later. The essence of it is that every player... including the factory, the agency, the workers, and the platform. Every player in this game is actually in a long-term and short-term game.
Speaker Change #111: Yes.
Speaker Change #111: Sure.
Speaker Change #111: Hey.
Speaker Change #111: What's that.
Speaker Change #111: Yes Sheila.
Speaker Change #111: You May go ahead John.
John Gandolfo: Also a good half hour on the bulk of them here.
Speaker Change #112: Major player in the <unk> player.
Speaker Change #112: Yes.
Speaker Change #112: Hi, Andy.
Peng Zhao: So this is actually a very hard process, and I will talk again about the essence, which is every player, the factories, agents, workers, and platforms, they are all battling against the short-term interest and long-term Let me give you an example. Meng Mogong is very clear about his current position. For example, his monthly salary is 6,000 yuan. But when he saw that someone said that his similar position was 15,000 yuan, It is very difficult for him to overcome this temptation. He will still go to China. He knows that this is a very low possibility. This is a situation where the worker may be able to make a bet in front of him, but it is very likely that he will not be able to do so.
Speaker Change #112: So this is actually a very hard process.
Yeah, well, the essence, which is a rate per the factories agents wilkerson platforms.
Oh battling against the short term interest and long term.
Speaker Change #113: Paul would you please.
Speaker Change #113: Normal.
Speaker Change #113: <unk> gives us on Q2 and positive local language.
Speaker Change #113: Yes.
Speaker Change #114: Thank you.
Speaker Change #114: So I'll have Nora histological.
Speaker Change #114: Asia.
Speaker Change #114: Ill.
Speaker Change #114: Thompson will give you.
Speaker Change #114: As we push towards our manager to the system.
Yes.
Speaker Change #114: Yes.
Speaker Change #114: Gordon.
Speaker Change #114: Again, well she's on portal.
Speaker Change #114: Sure.
Peng Zhao: He is playing a game with his future job opportunity.
Speaker Change #114: Sure thing.
Speaker Change #114: Hulu deal with nominal how that employee <unk> grants.
Peng Zhao: This is an example of a worker. For example, one manufacturing worker who is quite clearly aware that his working salary should be in the 6,000 RMB per month range, however, if someone posts a job of 150,000 RMB per month, he is quite hard to resist attempt to submit a resume.
Speaker Change #114: For example, one manufacturing worker voice.
Speaker Change #114: Quite clearly aware that he's working salary should be in that 6000 RMB per months range highlighted somewhere pulsar job for 15.
Speaker Change #114: 450000 RMB per box.
Speaker Change #114: He is quite.
Speaker Change #114: Hard to at least attempt to submit a resume so.
Speaker Change #114: Is a fight for it.
Sure.
Speaker Change #114: But.
Speaker Change #114: And under our secured.
Peng Zhao: Welcome. The job I just talked about is a full-time first-line worker in a certain position This is the current salary In a very good order season, this position can be up to 8,000 yuan Therefore, I would like to say that your salary in this position cannot exceed 8,000 yuan.
Speaker Change #114: What kind of opportunity.
None of them will go ahead Charles.
More EBIT.
Speaker Change #114: Okay great.
Speaker Change #114: Yes, yes.
What's happening is the salary.
Speaker Change #114: No.
Speaker Change #114: Although the 92 look on legacy backend quite yet.
Speaker Change #114: Slightly larger oil column to show up until a bit later.
Speaker Change #114: Later.
Speaker Change #114: Salary and his outlook for the full amount.
Peng Zhao: Okay, that's all for today. That's all I have to say to answer the two questions you asked me.
Speaker Change #114: Uh huh.
Speaker Change #114: What are the.
Speaker Change #114: Uh huh.
Speaker Change #114: Tom I'll start with you with useful Astley currently.
Speaker Change #114: Good.
Peng Zhao: And the example I just said is actually unreal. workers facing the current market condition, in a good season, that his salary can raise to around 8,000 per month. So I control the similar kind of jobs, salary range with no more than 8,000.
Speaker Change #114: And that's that.
Speaker Change #114: Yes.
Speaker Change #114: So the example, I just said is true.
Speaker Change #114: Actually our real.
Speaker Change #114: Woke up facing.
Speaker Change #114: Under current market conditions.
Speaker Change #114: Good season that salary cap rates to around 80.
Speaker Change #114: So 88.
Per month, so I control.
Speaker Change #114: Similar it's kind of jobs.
Speaker Change #114: Instead of a range with no more than a seller.
Peng Zhao: If we have that, I have the foundation to answer your two questions.
Speaker Change #114: And we had that right.
Speaker Change #114: That Kent hotspot.
Speaker Change #114: Felicia to answer two questions.
Peng Zhao: Your first question is related to the competition pattern. I can say that in the short term, I control this position, the intermediary organization can't raise more than 8,000 yuan. I may not be able to beat the person who can raise 15,000 yuan. Others can raise 15,000 yuan, but I can't beat them in the short term.
<unk> will contribute a few genco to your <unk>.
Speaker Change #114: Can you show in Chicago.
Speaker Change #114: Hey.
Speaker Change #114: John good to hear.
Speaker Change #114: Faster with Golan followed by chance.
Speaker Change #114: No.
Speaker Change #114: Well.
Speaker Change #114: Number five.
Speaker Change #114: And that includes buying them out.
Peng Zhao: But in the long term, I think I have hope, because I have restored the truth of the facts. This is about the competition pattern you mentioned.
Speaker Change #114: But that is a challenge.
Speaker Change #115: Sure It will.
Sure Jeff.
Speaker Change #115: Tissue, claiming the kingdom.
Peng Zhao: Then, you mentioned that we work together to do offline interaction. I want to say that what I am doing now is very time-consuming. And once it's done, I also hope to do it, its advantages are also obvious. But I need to persevere, so I'm not going to spend a lot of effort to do the online work. I will still keep my promise.
Speaker Change #115: Knowledge Overslaugh, another woman godaddy tissue for exchange Saturday that Yahoo.
Speaker Change #115: Andre is offshore well should I assume that's all of the different truck signup activity.
Okay.
Speaker Change #116: She also show how they usually need yet.
Thank you Rochelle gesture.
Speaker Change #116: So Pablo <unk> will play a box ticking on analytics Hugo Shanghai sure Jonathan.
Speaker Change #117: Absolutely yes.
Peng Zhao: I believe that one day, these four players will continue to play with dignity and prosperity. I am willing to be the person they look up to, the person they look up to for the rest of their lives.
Speaker Change #117: Our Sanjay just stood there and negotiate.
She is a final decision.
Speaker Change #117: Yes.
Speaker Change #117: So while the neighborhood so one encountered.
Peng Zhao: And the question about the competitive landscape. So if I continue to control the worker's salary range, which job posting can be no higher than 8,000 per month. In short term, I may not be able to compete with a platform allows people to post jobs with over 150,000. of RMB per month.
And.
Speaker Change #117: The question about the competitive landscape.
Speaker Change #117: Where I continue to control, so what Chris accelerate wrench.
We tend to a person can be no higher than eight months.
Speaker Change #117: In short term and may not be able to compete with our platform allows people to pulse jobs schoolwork.
Speaker Change #117: 150 solvent.
Speaker Change #117: RMB per mouse pad.
Peng Zhao: But in the long term, I... strong advantage because I actually returned the truth of this job position.
Speaker Change #117: In the long term.
Speaker Change #117: A strong advantage because actually return.
Speaker Change #117: This job position and second about how committed <unk>.
Peng Zhao: And the second about how committed I will invest to do the offline placement because the thing I'm currently we are doing is quite difficult and need a lot of input from every level so I hope I can continue to do that which we have already established very clear advantages. So in the short term I won't invest heavily in the in the placement while continue our current game with those four participants and hopefully we can have good results.
Unless it is offline placement.
Speaker Change #117: Carpets.
Speaker Change #117: Currently we are doing is quite difficult.
Speaker Change #117: A lot of input from.
Speaker Change #117: Every level, so I hope I can continue.
Speaker Change #117: To do that which we have already established clear.
Speaker Change #117: I'd want to do so in the short term I won't invest heavily in that in the placement of.
Speaker Change #117: While continuing our current term.
Speaker Change #117: At least with those four and hopefully we can do it.
Speaker Change #118: You bet.
Peng Zhao: As for profit, I can put it in a simple way. The previous one was very complicated, so I will say more. As for profit, I can put it in a simple way.
And the final Leticia together, Joe when they'll go beyond 10, Venezuela.
Speaker Change #119: Our Cleveland.
Speaker Change #120: Clearly the Hollywood content.
Speaker Change #120: Sure.
Peng Zhao: 现在这个情况下,一堆的... Uncertainty is at the forefront. I think an enterprise needs to find its weak point. What is right? In the face of uncertainty, as an entrepreneur, I think I need to find the right thing as little as possible. I think the most important thing now is to find the profit.
Speaker Change #120: Shannon I think you.
Speaker Change #120: You did.
Speaker Change #120: Uncertainty et cetera.
Speaker Change #120: Yes, Hi, Joe.
Speaker Change #120: Talk to you Bill.
Speaker Change #120: So moshe he didn't believe it.
I think we said Hey Mitchell.
Speaker Change #121: But what else.
Speaker Change #121: What's your answer.
Peng Zhao: Thank you. So far, I think it's a win-win situation.
Speaker Change #121: Bob Wilhelm.
This is James.
Speaker Change #121: Good luck.
Peng Zhao: And the second question, I will give a short but clear answer. So, facing all these difficulties, we need to find out which thing is definitely right to do. And we believe to guarantee our profit or profitability is definitely the correct thing. So we need to do and we will guarantee our profit.
Uh huh.
Speaker Change #121: And the second question I will give my.
Speaker Change #121: Sure that's clear.
Speaker Change #121: So.
Speaker Change #122: Oh this difficulties, we need to find out we've seen.
Speaker Change #122: That's going to be right to do and we believe to guarantee.
Speaker Change #122: Perfect perfect profitability is.
<unk> is the destiny.
Speaker Change #122: Correct.
Speaker Change #122: So we need to do and we work on cheap on profit.
Peng Zhao: When I was managing my target for next year, I can tell you now that I am very confident that I can manage my target for next year. I won't go into the details of the management here. I just want to say one thing. What I see is that we have established a rule of thumb. My business management bar is relatively obvious. My margin is relatively clear. which will majority turn into our profit. This trend is quite clear.
Speaker Change #122: Now with the planning and the lithium will be at a triple.
Speaker Change #122: Sure.
Speaker Change #122: Ooh.
Speaker Change #122: On a go anyhow.
Speaker Change #123: Tony <unk>, what you would potentially be the straw what Vishal Shah.
Speaker Change #123: Okay.
Speaker Change #124: What kind of.
Speaker Change #124: Liquidity, obviously, tricia, whether you win the contract.
Speaker Change #124: While the margins change without Adriano.
Speaker Change #124: And some of which are.
Speaker Change #124: I will let the shuttle tanker fleet.
Speaker Change #124: I'll leave it there.
Speaker Change #124: <unk> introduced yet.
Speaker Change #124: And in terms of managing our next year profit target quite.
Speaker Change #124: Quiet.
Speaker Change #124: Very strong confidence I won't talk too much about how many details but.
With one thing I can say is that we have very strong.
Speaker Change #124: Averages.
Tim: Tim go ahead.
Tim: Which will mature to make into our perfect.
Speaker Change #126: Change is quite clear.
Tim: Okay.
Peng Zhao: Regarding our company's margin outlook in 2025, I can offer some of our thoughts. Regarding the gross margin, we expect our gross margin will be flat or improve slightly next year. sales efficiency improvement will leave additional leverage to exciting an absolute amount of marketing spending will be capped at 2024 level or even decrease. RMB headcount likely will not increase. there's no near-term actual investment to AI hardware.
Tim: Regarding our company's margin all came in 2025.
Tim: I can offer some.
Tim: Our source.
Tim: Regarding the gross margin, we expect our gross margin.
Tim: We will be flat or improve slightly next year.
Tim: Sales efficiency improvement will leave additional average to selling expenses.
Tim: Mike.
Tim: Luna amount of marketing spending will be capped.
Tim: 1020, <unk> level or even decrease.
Tim: R&D headcount likely will not increase.
Tim: There is no near term actual investment too.
Tim: It's hard work.
Peng Zhao: So our, and one more thing is our new business. We expect our new business spending will be with disciplined approach. So all in all, our operating margin will further improve, as Jonathan said, will further improve along with our top line growth. So this is our view towards the margin profit.
Tim: So our.
Tim: One more thing as our.
Tim: New business, we expect our new business spending.
Tim: We'll be with disciplined approach so all in all our operating margin.
Speaker Change #127: We will further improve as Jonathan said, we'll further improve along with our topline growth. So this is our view towards the.
Speaker Change #127: Margin.
Speaker Change #127: Profile.
Operator: Okay, thank you.
Speaker Change #127: Okay alright, thank you.
Operator: In light of the time constraint, I think we can take one last question.
Speaker Change #128: In light of the Tam constrained I think operator, we'll take one last question.
Yanyan Xiao: Thank you.
Speaker Change #129: Thank you.
Yanyan Xiao: Our last question comes from Yanyan Xiao. CICC. Your line is now open. Thank you, Mr. Guan, for accepting my question. I have two questions.
Speaker Change #130: Our last question comes from John Young Shao.
Speaker Change #131: With CIBC your line is open.
Speaker Change #132: Sure Hey, Brian.
Speaker Change #132: Got it.
Speaker Change #133: <unk> will now go with depot and Tina Schiel quite you know thank you John.
Yanyan Xiao: The first question is about the progress of our overseas business. How do we balance our current goal of profit control and the investment in future overseas business?
Speaker Change #134: Well, maybe you hooking homeowners <unk> conclusion that won't be our aegis ashore.
Speaker Change #134: How are you.
Yanyan Xiao: The second question is that we have noticed that there seems to be a trend in the industry for products such as AI interviews in the market. What do we think of the current application of AI technology in the recruitment field? And what is the potential for new income or a space for reduction? I will translate it myself.
Speaker Change #134: Diablo and Keith <unk>.
Speaker Change #134: Chase just touched on Cheyenne, yes, sure Ghansham piece.
Speaker Change #134: How you proceed attrition is now named <unk>.
Speaker Change #134: It Shouldnt change that <unk> sure Clinton and <unk>, Shanghai will destroy G. Both jump in.
Speaker Change #134: Yes.
Rajeev Fine Asia.
Yanyan Xiao: Thanks management for taking my question and I have two questions. My first question is how is our overseas business progressing and how can we balance our profit control goals with overseas business investment?
Speaker Change #135: Thanks management for taking my question and I have two questions.
Speaker Change #135: First question is how is our overseas business progressing.
Speaker Change #135: How can we balance our coffee counsel go suites Osc's business investment.
Yanyan Xiao: And my second question is, we've noticed that an industry-wide trend towards AI products like AI interviews. So how do you view the current application scenarios of AI in the recruitment field? And what potential new revenue or cost reduction opportunities might there be?
Speaker Change #135: And my second question is with no keeps that.
Speaker Change #135: Industry wide trend towards AI pullback snack AI interviews. So how do you view the current application scenarios of AI in the recruitment field and what potential new revenue.
Speaker Change #135: Cost reduction opportunities might be thank you.
Yanyan Xiao: Thank you.
Peng Zhao: 关于我们的 the relationship between the development of international business and the target market, I think... We clearly see that next year, we will not make a big investment in our international business development. This is related to the logic of our business development. Our logic is basically not to see the rabbit, not to kill the eagle. I'm sorry, it's not easy to translate. Let me think about it again. Our logic is that I will invest more only when there is a strong certainty. In the past, we all did... This is the logic of our international business.
Speaker Change #135: However, prior to enrollment.
Speaker Change #136: Uh huh.
Speaker Change #136: What are you with the projects.
Speaker Change #136: I'm sure that policy.
Speaker Change #136: Each of the Colombian yet meaning.
Speaker Change #136: Maybe as a follow on on day, one could deal with a final handle on them.
Speaker Change #136: Sure.
Speaker Change #136: About a total of that particular one.
Speaker Change #136: Part of the year, we're looking at.
Speaker Change #136: And we're literally issue associated with gearing towards the book value.
Speaker Change #136: Is it feasible to have a platform.
Speaker Change #137: One of the larger Joseph Schwartz.
And John the truth.
Speaker Change #137: Good evening, Mr Hall will typically got ops.
Speaker Change #137: The channel and the dose absorbed.
Speaker Change #139: Short term bonus useful to the short run will deal with it.
Speaker Change #137: Okay.
Peng Zhao: Thank you for your question. About your first question of our overseas business and the relation with investment and relation with our profit target. So one thing is clear that next year, we won't have a very big investment in our overseas business.
Speaker Change #140: Thank you for your question about your first question of our Oversea business integration.
Speaker Change #141: Hopefully so.
Speaker Change #141: It is clear that is next year, we won't have.
Speaker Change #141: <unk> investment in Melbourne oversee a business this half in relation to our.
Peng Zhao: This has a relation to our business development methodology, which is we won't release the eagle until we see the rabbit, which means we we won't increase investment heritage before we have some certainty. So we have to do some very small experiment with limited cost. So according to this logic, according to our operating experience, in the next year, we won't be able to see that rabbit so clearly in our international business. So we won't have a lot of money to invest next year, so it won't necessarily affect my profit.
Speaker Change #141: This is <unk>.
Speaker Change #141: Methodology, which is we want to release that <unk> seen at rabbit.
Speaker Change #141: <unk>.
Speaker Change #141: We won't.
Speaker Change #141: Alrighty before we have some strategic so we have to some very small.
Speaker Change #141: Experiment with limited costs.
Speaker Change #141: The Mackenzie.
Speaker Change #141: Ladies.
Speaker Change #141: Thank you gentlemen.
Speaker Change #141: This is Dan.
Speaker Change #142: So the high yield bond don't shoot me hold limits will cut about another rabbit, sorry, as a follow up.
Speaker Change #142: Our blood Center total E&P, Joe should be bullish on Hollywood.
Peng Zhao: And so in our plan, we want to expect we can clearly see that rabbit next year, so that won't affect our profit.
Speaker Change #142: So.
Speaker Change #142: Our Penn we.
Speaker Change #142: We expect to we can clearly see that next year, so that won't affect our coffee coffee.
Peng Zhao: As for the application of AI, I would like to be honest and say that not only in our industry, but in all industries, AI, the The application is basically a little bit loud and a little bit quiet, so this is a practical situation. This is also a fact compared to our discoveries in science and research and the applications we actually use in the industry. So there's a very loud lightning, but very small rain. So that's an industry fact.
Speaker Change #142: Okay.
Speaker Change #142: Yes.
Speaker Change #142: Sure sure.
Speaker Change #142: The jumbo jet to build plenty of Guadalajara.
Speaker Change #142: Yet either.
Speaker Change #142: Yeah.
Speaker Change #142: Okay.
Speaker Change #142: It was October just realization that shop.
Speaker Change #142: To see the strategic path.
Speaker Change #142: Okay.
Yes.
Speaker Change #143: So these are the equities on the union, which, albeit yes sure Joe.
Sure.
Speaker Change #143: In terms of AI application.
Speaker Change #143: Now that's it.
Speaker Change #143: Within the industry actually.
Speaker Change #143: Other or the industry.
Speaker Change #143: Uh huh.
Speaker Change #144: Hi, prospect of the technology and not correlated with that.
Speaker Change #143: Yeah actually application.
Speaker Change #145: That's a very loud.
Speaker Change #145: Lightning back very small right. So that's the industry effect.
Peng Zhao: I would like to talk about the three things I will stick to when I use our current scientific results in our industry. The first thing is that we insist that the B-end and C-end of the recruiters are equal. will not allow one side to take advantage of the power of AI and take advantage of the other side. We will not do this.
Speaker Change #145: No Wonder woman Guinta, Sean less young woman.
Speaker Change #145: Sure.
Speaker Change #145: Hey, Jennifer Tomorrow, Thank you Chuck.
Speaker Change #145: As you pay a sweetheart.
Jonathan Chou: Sure Jonathan.
Jonathan Chou: Turning to the peak, London SEDAR stripping.
Jonathan Chou: Right.
Jonathan Chou: Bullish.
When you blend the chute.
Jonathan Chou: So.
Jonathan Chou: So our intention is still valid.
So Jim shortlist Chipotle toilet.
Peng Zhao: But I want to further explain our opinion during our industrial practice. The first one is we will insist on the equality between job seekers and recruiters. We will not allow any side to use the advantage of AI to have advantages over the other side.
Jonathan Chou: Okay.
Jonathan Chou: But I want to further expand our.
Jonathan Chou: Opinion Julien.
Jonathan Chou: Sure.
Jonathan Chou: The first one.
Jonathan Chou: Let's see.
Jonathan Chou: Equal.
Jonathan Chou: Equality between Jobseekers and contract labor.
Speaker Change #146: No not allow once any site changes at Monte dei <unk> have advantages over the other side.
Peng Zhao: The second policy is that users need to be informed. In other words, when a user is in contact with the other side, if the other side is an AI representative, We have to make sure that the user knows that the user is AI, otherwise we can't do it. And the second principle we insist is the right to know. So whenever a user is facing the potential counterpart of AI, we should let that user know.
Speaker Change #146: <unk> as a policy we are.
Speaker Change #147: Okay, and then down to a ship.
Speaker Change #147: <unk>.
Speaker Change #147: Pardon me.
Speaker Change #147: Yeah.
Speaker Change #147: Well.
Speaker Change #147: Well now that we are adopting that and understood.
Speaker Change #147: So again shipping book.
And the second principle when phase III is a right to know so well.
Speaker Change #147: Whenever I either are facing the potential cookout patio for AI, we shouldnt Andrew.
Peng Zhao: The third policy is that we insist that if we don't use the current LLM technology, which is actually a good thing, then there is no need to use LLM to cover it up again. I think this is a waste. And the third policy is that the current application scenario, which can be perfectly done without large-length model, there is no necessity to use LLM to do it again, which is actually kind of weird.
Speaker Change #147: Yeah.
Speaker Change #147: Decided as a policy just enrollments gesture ruble we own agenda.
Speaker Change #147: Thats useful she is really sort of a huge number.
Speaker Change #147: Maybe ill.
Speaker Change #147: Thank you so much in Q4.
She loves it.
Speaker Change #147: And the third part is that we can see the current.
Speaker Change #147: Our politicians to narrow which can be perfectly done without large number to model.
Speaker Change #147: No not just the THC.
Speaker Change #147: And to do it again, which is actually complete.
Peng Zhao: Speaking of theory, let's talk about one of the realities. The AI technology we support with the large-scale model is a bit of a success in the field of protecting user safety. And apart from all those theories, we have several real applications. So in terms of protecting the safety of our users, our AI technology has been quite useful. Last year, we announced that the number of staff in our operation safety team was more than 900.
Speaker Change #147: I'm not sure anybody really nacho shortly.
Speaker Change #147: Nicolas Yes, there were months you should assume.
Speaker Change #147: Machine.
Speaker Change #147: As usual.
Speaker Change #147: The amount of.
Speaker Change #147: Sure.
Speaker Change #147: Sure.
Speaker Change #147: And apart from other series, we have several a rail application. So in terms of protecting the safety of our units or <unk>.
Speaker Change #148: Quite useful.
Speaker Change #148: Women womens he'll walk that Ciena initial data.
Speaker Change #148: Data.
Speaker Change #148: Good luck.
Peng Zhao: In fact, since this year, 用户增加了好几千万 Users have increased by tens of millions In this case, our user safety team did not participate. One of the reasons is that we... Using AI technology has played an important role in our work in Hudu. We disclosed in the past that we have over 900 people of our security team and this year we increased more than tens of millions of users but we didn't increase the total number of our security team. One important reason is that we used our AI technology to assist with the verification which largely increased our overall review efficiency.
Speaker Change #148: Joe My daughter.
Speaker Change #148: No.
Speaker Change #148: So how you came up.
Speaker Change #148: So I don't see much out of it.
Speaker Change #148: 102.
Speaker Change #148: Milton Johnson.
Speaker Change #148: Julian would you believe your Haynesville should a woman.
As usual.
Speaker Change #148: We'll do well until it's resolved as you followed on in portfolio.
Speaker Change #148: We disclosed in the past that we have for over 900.
Speaker Change #148: People keep our security team and this year, we increased more than tens of millions of users.
Speaker Change #148: Kris.
Kris: I will forward, so teaching content, meaning that we use our edge.
Kris: So we're being patient.
Kris: Although overall.
Kris: New efficiency.
Peng Zhao: people who've tried to harm, take advantage of the platforms people who've tried to scare away the people who want to kill ... Fight!
Kris: Selling and team have done.
Kris: Q2 dominant impact on Tula Shanghai children.
Speaker Change #150: Got it.
Peng Zhao: 这件事情的本质,the first principle, 其实是一个成本之争 The essence of this matter, the first principle, is actually a cost struggle 如果坏人不划算,那他就肯定不来。 If the bad guy is not worth it, he will definitely not come. So we know that live AI can actually play a role on the platform. In this way, it is easy for us to understand that he can help more directly in this field, and we can do the same. So, in the history of the bad people fighting with the platform, the first principle is actually the fighting of the cost. Whenever the evil guys feel like they are the first to do things, to do bad things on the platform, then he will not continue to do that.
Speaker Change #150: It's an interesting note by June the first principal user should ever come back to John.
Speaker Change #150: Google's plan.
Speaker Change #150: Input.
Speaker Change #150: None of them in just a few more issues that donut shop Shlomi Barclays.
Speaker Change #150: No market, Germany.
Honeywell nimble attached to the farmer.
Speaker Change #150: Cash and resources.
Speaker Change #150: Yeah.
Speaker Change #151: So in the history of the bad people fighting Elisa platform.
The first principle is actually the fight.
Speaker Change #151: We narrowed the.
Speaker Change #152: Hello, guys.
Speaker Change #152: Should do things.
Speaker Change #152: But you do put things on the platform then he will not continue to do that with the help of AI, we can actually increase our I'd want to discover that so it can create real value.
Peng Zhao: With the help of AI, we can actually increase our advantages over that, so it can create real value for our operation.
Speaker Change #153: Appreciate it.
Peng Zhao: That's my answer for your question, and I think that's all the questions for tonight. I'll pray to it.
Speaker Change #154: Chuck you want to say that and that's my answer to your question.
I think that for the question.
Speaker Change #154: Okay.
Speaker Change #154: Okay.
Wenbei Wang: Thank you.
Speaker Change #155: Thank you due to time constraint that concludes today's question and answer session. At this time I will turn the conference back to <unk> for any closing remarks.
Wenbei Wang: Due to time constraints, that concludes today's question and answer session. At this time, I will turn the conference back to Wenbei for any closing remarks. Thank you once again for joining us today.
Speaker Change #156: Alright. Thank you once again for joining US today, if you have any further questions. Please contact our IR team directly or TPG Investor relations. Thank you.
Wenbei Wang: If you have any further questions, please contact our IR team directly or TPG investigations. Thank you.
Operator: Thank you for your participation. This does conclude the program. You may now disconnect.
Speaker Change #156: Thank you for your participation. This does conclude the program and you may now disconnect good day.
Speaker Change #156: Okay.
Operator: Thank you for watching!
Speaker Change #156: Okay.
Speaker Change #156: [music].
Speaker Change #156: Okay.
Speaker Change #156: Yes.
Speaker Change #156: [music].