Kanzhun Limited (BZ) 27 Aug 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Kanzhun Limited Second Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a Q&A session. Today’s conference is being recorded. would turn I to conference time, Ms. this like the to over At [ph], Market of Bei Head Gwen Wang Capital and IR. Please ma’am. go ahead,

Operator. Welcome everyone. earnings Good second you, XXXX conference to quarter call. Thank our evening,

Zhao; are today Mr. and Jonathan and Founder, Joining and Zhang. me Director our our Yu CEO, Chairman Mr. Peng Phil CFO,

the and would and and remind statements, start, you factors cause cautions based actual are by law. Before results, information company observations undue and performance to which the which to obligation not discussion undertake involve management’s today’s materially company’s uncertainties we may or reliance company on we forward-looking expectations achievements to unknown The not that as not forward-looking these under like to statements of do current except different. required other that place known on forward-looking be risks, you may control, contain any update

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

measures the of issued For definition the please and release reconciliation non-GAAP of GAAP financial earlier earnings today. see results, financial non-GAAP to

Founder, available and webcast the a be call call will now ir.zhipin.com. our Jonathan, I website this at to our conference addition, replay With turn of CEO. that, In on will Chairman

you first our your Hello, everyone. Thank a opportunity I public trust company. like call Welcome to and to express sincere for earnings employees thanks investors. users, and as our would support. to the take to our

the business, and power will equality satisfaction of We optimizing of user on deliver improve talents efficiency to by to choice. focus main our utilizing technology continue connecting jobs, the to efficiency,

a increase XXX.X% quarter the achieved have RMBX.XX year-over-year. strong billion, this an that in of are We report of pleased year. recorded We revenue to second total we results

achieved Well, RMBX.XX this year-on-year non-GAAP billion, sorry. positive in quarter, growth, cash we profitability also with we calculated XXX.X%. a Our this our -- in rapid maintained year revenue of billings increase reached

In efficient the of is business improve which the products, We growth technology and reached of a model, the MAU growth million. base our and The income DAU leads user believe compensation quarter, continuous we expenses superior excluding of is growth expansion net XX.X have to stable to year-on-year activities. result high that our adjusted quality our MAU ratio of enhancement past Our indicates user share-based of of commercial the were RMBXXX.X Zhipin relatively service XX.X%. the app million, capabilities. maintained BOSS a and average which

in our covers and groups tier Now perspective a let’s look path extend the among quarter, serve The total and largest keeps collar jobseekers, collar improved take and headhunters group of matching our we recruitment with cooperate capabilities users of important blue users, the to Due user at users, optimizations collar as preference from of authenticity, the in seekers, continue penetration follow to better progress such our tailored job rate aspects And main the have on our growth. to made algorithm, higher we we continuing all to online categories. number product time, white we low Overall present the of workers target collar industries, usability. gold collar tier made adjustments user solidify blue we and blue and our platform driver traditional safety and job different in same From our our our user the Being steadily. behavioral are the users collar the progress. have that cities further platform in penetration were closer a at cities and white presently user to job workers aiming increasing actively competitive the the the level. the and advantages. service by second be the At rate the lower industries. to coverage the of

which quarter, platform. second services, the season recruitment in that enhanced as college Through noticed joined most college of such the and a is beginning become publicity have the activities, graduates. typically for students online number platform for preferred online our college large graduation of live recruitment also campus we diverse students, have We and

user more enterprise the attach the side, On have and we recruitment to the return of and enterprises more investment efficiency that importance greater noticed to started the of platform.

demand by of post-pandemic sustained efficient cost and resources the quarterly talent cost of demand including supply human in increase numbers to As rapid business the our maintain this result recruitment a market. enterprise factors, users recruitment trend. Since recovery, growth of emerging the the various release economic brought and and our effective model, the about

XX.XX XX, enterprises June cumulative verified reached of verified cumulative of growth X.X growth year-on-year a number year-on-year of million XXXX, of As a with number million, of reached the with The enterprise users XX.X%. XX.X%.

recruitment proof their further and medium-sized will for between in by has number to user better service closer stable. even XX.X% in small- and provide job For demands, the worth and direct managers overall greater BOSS enterprises population composition, users second accounted medium-sized which ratio. we remain It’s size and the characteristics. chat of increased enterprises China, is scale enterprise small- which XX.X%, seekers that for quarter, to the enterprises enterprise our enterprises massive for the studying that is needs This and the the enterprise further proportion small- whole medium-sized China’s of of mentioning inconsistent their their with

and actively well and services. the technology to aim expand in advantages while strengthening internet also into and traditional covered industries we industries our urban such We finance, maintaining with already as manufacturing

of we information video their engagement. and seeking optimize three our capability, job as management, experience user such app terms encouraging R&D and to and recruitment and improve weeks our work to to aiming to messaging display iterate continue two interviews, our functions main In by weeks every

invest to As a company, in technology driven we acquiring are talents. have and core heavily capabilities technology to our been continuing competitiveness

XXth, we with R&D As than more employees. June team X,XXX of had

attention to platform, interaction user more as tail deal delivering and and algorithms, to pursuit results and enable great improving facilitate and recommended In demands jobseekers of engage fair of satisfaction. of customized pay and of exposed terms users to top users also improving and be we long enterprise recommendation accuracy, possible a ultimately as on continuous matching many on to fulfill their SME our to

for we to As our capabilities improve detailed and operational continue categories. our refine in operations,

optimization position have also research conducting in job investments the classification of we in are specific in-depth significant for and made time, categories We industries. platform At security. same

seekers past. the our coverage of Platform, upgrades city, review have in hours within online team each coordination obstacle Our of teams and and offline after location the arrive our our consolidate infrastructure two been expand to job security collar the authenticity penetration information job receiving to and cornerstone of seeking Security future. security collar a recruitment In we operation. users of job covered in blue city able blue platforms our crucial China. business, cities expansion have of in major the is have at further further to complaints the of covered always is and plan with security made our we series hindering In recruitment platform. a of the

personnel. on improving XX. Foshan direct efficiency the improve the geographic second capability professional At strengthening established our We we to total focused sales number competency branches time, continue of to training sales team. branches individual our the of new our the the quarter, for sales Dongguan the the same sales bringing we and in and force coverage and the In expand of

user through We Olympics. marketing, brand appointed online and marketing As were to have dedicated we official for been as honored continue acquisition both the advertising the strategies, Supplier Winter Resource implement for to traffic. Human Beijing

will to we students underpinned As economies our by efficiency, continue these discuss more promotion marketing the scale, our in and a CFO details. see Phil, of later improvement in result, significant which

Now time to caring let me about spend that the is Cybersecurity some everyone about. talk Review

the on Administration China the laws with actively same registration impact is requirements, which Information on the protection, company our in accordance Zhipin compliance is self As and user the security the privacy with examination and as such Law. will In user the conducting on our company’s Cyberspace with and announced, its we time, to of Protection and At and Cybersecurity new the suspended latest previously app, growth Security program, remain extent regulatory the rectification some own Data company Personal user national currently cooperating Law Review. regulations revenue. focusing BOSS

that believe and will industry industry the growth protect ensure long-term of users, sustainable the to regulate the are the firmly and regulations we However, necessary and the the company.

better hope the serve circumstances, make to cooperate serve users. Given earlier. existing Meanwhile, completing of with more the we fully our process in efforts current we teams’ work the review

reviewing be of does have either completion However, review we able with new shall clear not users or the the company when timetable a registrations. for yet to

the and online services. yet provided use have summarize, has China’s market development to of The now job recruitment sustainable a number fully to Finally, for and explored. ample recruitment room customers to online still service be seekers existing and offering recruiters considerable started have to value

of direct chat generation online the satisfaction recommendation, new adopting an and our the with recruitment, are dedication to the first. mobility innovative a user concept by of we combining As model

We regions. and our penetrate enrich in our will industries technology, capability, continue product and more offering invest into to enhance service

the remains demonstrated. effective be are fundamentally, model there further in and some fluctuations business Although, environment, external short-term will our

more workers and the continue We our Thank medium-sized Director, tail With both financials. CFO to of valuable will and potential turn XXX you. small- are China. growth especially fair, to to we million and provide long full and of confidence I that, XX enterprises, future in workers enterprises efficient and for believe that our in the service can nearly and Phil, million review

quarter I Jonathan joining the you our brief earnings second discuss to then I our give call will XXXX overview everyone. our Bei. today. for Gwen Thanks, results outlook quarter. financial and a for and like third Thank Hello, of would

in I comparisons that a otherwise all all year-over-year Before on please stated. are unless basis all note and amounts are began, RMB

growth financial continued to in robust quarter achieve second year. We this the operational of

to strong our total to XXX.X% by capabilities. cash The customers our by beating billion XX% RMBX.XX quarter, billion user billings mainly following increased revenue of was contributing increase the recruitment recruitment our enterprise over from of target. service increased which and online rapid of XXX.X% the base growth and was XXX.X% from our the calculated enhanced growth our of in revenue the revenues. driven increased billion, expansion online revenues our RMBX.XX service by service, paid revenue RMBX.XX total of the due increase to to Our to This by

for June this XXXX. to customers. our we enterprises, over quarter, XXX.X% in leads These same positions of to contributing XXX.X% revenue strong June As in and the X.XX innovative users, to Jonathan ended XX, two in with more the more ended to XX combined growth, posting, and penetration million XXXX, ended converting Furthermore, identified of recovering hot XXXX. a just demonstrating fee the compared to factors a number which large of June XXX.X% enough to to seen the increased million together period enterprise as our our XX, leading on customers the service, enterprise cross-selling by increasing trailing in With service our XX.X% our from serving XX, of job long-term XX enterprise model, by to accumulated recruitment especially pay X.XX which position, recruitment for trailing charge growth months enterprises, of by in months accounts users which ability customers jobs grew mature XX, June users can ratio. paid became end accounts key paying the to key XXXX, enhanced existing which we commercially be posting more higher rapid grew platform, have of mentioned, XX.X growth and online demand by with more million

million, Now positive turn to compared RMBX.XX share-based management, billion an our they operating increase compensation to core our and quarter exclude the of in year, adjusted total cost RMBX.XX which expenses, for operating were operating of the same RMBXXX.X XX.X%, RMBXXX.X costs reward to were a RMBX.XX last expenses income side, quarter. RMBXXX.X and including adjusted our resulting the million billion million. to expenses If total cost billion, were

server the gross stable -- initiatives processing in with increased quarter, RMBXXX.X employee-related in XX.X%, our brand from by margin revenue base acquisition enhance by and our Noteworthy, employee-related this volume. hire from points bandwidth to payment of and same expenses and and to expenses Our marketing by to the sales and efficiency expenses XX.X% a declining cost, quarter proof customer sales economies cost increased activities. cost, resulting and and this RMBX by remained million operational sales year. of transaction third-party marketing at quarter, XXX.X% of of higher and driven increased in This down primarily RMBXXX.X XX revenue our the quarter, XX.X% due million the Sales represented in this scale. user costs, and increased demonstrated percentage is primarily advertising percentage XX.X% marketing strong our marketing, our marketing last it of

personnel, to quarter of by employee-related During increased increased result share-based expense cost as primarily compensation. other a XXX.X% R&D and R&D our RMBXXX million, this payroll,

for as core of We which competitiveness. expenses technology will were RMBX.XX talents to us R&D billion founder of leading administrative shares this continue our by Board allowing issuance before as one-time Class our quarter, of approved invest our mainly maintain B one resulting a our the in LIMITED, the from which growth to is a to TECHWOLF by company reward General IPO. controlled is a capabilities, strategy, ordinary essential and

million Excluding grew G&A mainly quarter, expense due expansion which team. share-based to XX.X% compensation, was the G&A of this our to RMBXX by our

quarter. our net result the of was As foregoing, the a in loss second billion RMBX.XX

income continued profit our recorded million, network translating of with strong XX XXXX. used quarter the the efficiency in This net same we share-based strength of margin improvements. effect. the million RMBXXX.X XX.X% by net to the Supported achieved percentage for the compared of of and cash this our of the adjusted loss driven of net representing the net of in of same in year efforts scale RMBXX.X profitability, economy compensation from quarter was million operating RMBXXX.X increasing -- proof last cash our also a activities generated in in in activities measure, adjusted million we RMBXXX.X non-GAAP period is operating to of by operating under quarter, net adjusted quarter, year, this -- was this compared leverage point this profitability Excluding our and

to balance the Moving sheet.

of the proceeds successful in XX, and as net billion RMBXX.X listing, cash billion, in investments as our flow as compared The short-term well were to from XXXX. As XXXX, cash and quarter. was increase XX, operating June cash RMBX.X our our attributable the equivalents December to growth primarily

for outlook business next our to turning quarter. Now the

revenue rate of and of to third XXX%. RMBX.XX approximately net between representing XXX% we to XXXX, be For the quarter billion, expect our RMBX.XX billion year-on-year growth a

on last As uncertainties we strong we on a September. the and to Cybersecurity still uncertainty users’ assumption the till This change. users ongoing fast delivered impact closing, resume with a the company spite to our are to revenue that team, was reflected our are was outlook, and review our our a esteemed still Cybersecurity to thank again we new of the first Review just status In regarding discussed, shareholders. quarter I there will estimate the but The timing public growing in healthy subjected based and for registration. the as Review, result in In stage, of and would like still of financial improving leverage. end

Our the excited competence effective. forward to my prepared with you looking quarter business model -- remarks. I remains our the and stays progress about This again. our and unchanged coming am long-term concludes share

to like we would Now please go questions. answer Operator, ahead.

TH question Hu comes Please line of you. Instructions] Capital. Ken Thank your [Operator first Your from ask question. of the

Good evening, Friday. and happy management,

some data so the economy. of saw we a about weakness is, of China Just the questions, one couple first growing

your employment of level industry, you different what kind activities, confidence employers hiring in there are a see under from terms do people. this So circumstances, frontline of

number Number that’s So, two. one.

in So, and has when lifted. Security the Security review is Data than Review this a place for we don’t month Review -- know going more to be been

new the So really point, a this let’s is during this government we can’t to while, at customer obtain going the and review period, for say, last if online.

deal and company’s So to online? cope it, get two strategy questions. Thank it that’s what’s to to customers with the new you. So with

Okay.

your can your comment second So -- question. can first CEO and I second first our question answer on

business. we So, contribution diversified have -- industry our our business for

industry large new portion, single company contribution although, is for single a account a industries and as So economy low. whole

is haven’t the might the although but strong, might -- be macro -- a very not such the overall, we kind think, of platform. see our not I strong situation, on So, signal

growth. So, growth is mainly business our driven users paying by

still are seeing structural moment. user increase this We the stage in at of

So, impact closely but we seen monitor. direct macro, will haven’t from we

investors, I question. probably, ask you So think, some recently industries, -- some there some like to would like are a

time. So this I comment at can

economy revenue. example, total is our education So for account some of a percentage the in one for industry, small industries, industries, the just like just new

this for mid-single So industry, revenue our accounted education digits total now. for industry only

to limited. any industry’s our think is impact we So business one

might serve less the wise, things. something like that, contribution So large regulation than of company XX we regarding number of customers. some think like macro they impact so because thoughts a or from companies, low total so the only for either related some revenue. We relatively account either X% companies, we from top customers small-/medium-sized have Top

any be like, -- or growth have in on our company, just single would a industry business changes as mentioned, limited trend. our So limited to I only single impact the

answer to my question. that’s your So

Thank you, Phil.

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cover the Now will I question.

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under and our the July this Xth registration user since Review we impact So have do on you and this business. new suspended are our Cybersecurity know was

and use user large our But MAU this since has registration our So existing on normally. of base impact our especially can DAU. users app

serve remains for MAU our to user remain revenue the we stable, for but focusing seekers, In to impacted, ratio MAU which meantime, of suspension users. our our lot on that existing July make only better also customers, continue we the a we are activities. efforts. enterprise DAU the also which keep stable So to means relatively job And side, and because are also was we for not this

and focusing team existing sales team how the extent depends of serving the as last. And long the customer, our conducted capability service will teams. training and for Our impact review in-debt we the on the professional some the customer on service on capital

But enterprise, just of should on of this an this end predict revenue. to instead will guidance, this given the and our the do as will the guidance But impact not users. and in temporary we resume suspension fully business new lastly, this model this of we and appropriate review run. we timing this not because think we cannot and like till make is need do. existing with our our team the end users, my our new nothing work. this is will we conference. past that, on suspension. assumption our we that registration effectiveness estimate is till to our are can of see for But that we user the user on is whole are You we cannot question not that do your do our give last for September, should long last emphasize our increase This And is company the about that registration I to since can believe their -- to on something business affected this new effecting quarter assumption anything the of had we I September. as is what and to allowed focusing next our which But to is we cooperating we that has reasonable. suspension on revenue And all when our that’s But not from new with

Thank you you. answer. you. Thank for Thank the

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

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third mentioned end the still the actually, affecting guidance. this strong. that, suspension quarter. Jonathan Also, as of quarter registration that third regarding the till view, Firstly, is of guidance the quite in the guidance my the already user But new is

that, have focused mention if the to you experience. existing on the users services just and user So,

overall users That’s like more the reflected is the the pain internet improvements for reflect industries, enterprise this just number growing question the number of question. or regulatory given users. in the to existing of will the the education. I or one app that, And stringent ask, fast these two environment paying want basically will is the So ratio

looking staffs So industry employees this jobs. the the we actually or more is will new for from see more and

higher online term, fast of it some industry? situation in the short-term, Thank do So, in in this will terms mean, this overall maybe has longer I company. headwinds benefit growing demand the how you. you think But of a the the recruitment

of bit to quarter. second add would the So, the ARPU color little like Eddy, I to a

stable. quarter, second was relatively enterprises, So our our on ARPU platform like,

the revenue the not growth, of number driven our users by So it’s the mainly ARPU. business, enterprises growth of

of situation the quarter. is second this So

Jonathan, comment can next your two So, questions.

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supplement Phil’s make and our to are your first question. And our team our currently, sales focusing on Firstly, team customer comments I will users. whole existing service on

in noticed and the group not your we we state the second And continuing who rate. a kinds and and are more just has on job question from the the educational can the for employees capabilities. will strengthening our have And industry But job seekers our matter And improve more that does currently focused We are to existing in leave this lot there their can for so this seekers the educational help this us help been repurchase from regarding a to our long make industry, looking of we we our be industry. companies seeing two have level, current service active renewal run. of users and do jobs. more this

First which jobs has some one operations, industry, and is standard technology, much. G&A but products, like this resource, human so to not the relation

are for every more industry. common they So

teachers much is two So And new the easier are for for coaches. and second find they the K-XX ways. there are to them a job. And type

they can college. one who the -- career for are second job school to they And one or change direction. the there teachers their go can is First opening are the like institutions

heavily the because been education noticed companies industry recent recruiting have they have these years. We in

quite like years, and They still So in they one -- workers seeking. graduated year well to my can is junior emerging they are in recent job there flexible a of well. lot that two living graduates so for fresh more are are or so years newly observation

sector overall the are a So but the for still the seeker are job small looking base. into quite accounted there, future and well seekers group number overall user of our for they overall is platform of job the and educational quite situation our on number there as emerging certain

industry. observe impact overall very obvious So we didn’t any our to

and emerging second actually and answer their your to are situation but That’s activities. just my So it’s increasing they merging question. a

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ask Please Your next Goldman Mubayi question. question comes from your Sachs. of Piyush

strong given it’s in quarter through could -- the the the necessary second what your wondered, so and billion guidance you change. an in if for in expense running to CAC third be If -- Phil, the been Jonathan, reward quarter I tightly you, It business performing, as the the that terms despite the will question it i.e., quarter go slowdown managed cash costs slowdown observing And you’ve would remains second what’s what or going the you were sales Thank how well manage here, through a for to are event up you slowdown deferred the on part perspective? would you the or quarters of if observing the to at I in running is potentially quarter. three XXXX? outlook Thank points from is as we take on just economy, COVID wonder it based quarter, centers around observed the the us through My number can the that the is, and the it you as second you. what to thereafter in you that line there? quarter, focus first third be on acceleration is And through Could I third a and which other the marketing risk a on Bei. that’s and the drivers around, accelerate your happen after us help of just understand can Review. was number. pick early from is RMBX.X revenue, you’re was go any of you in Gwen the RMBXXX question

your for you question. Thank Okay.

should question first. second answer So your I

second what’s sorry, question? the, regarding your sorry, So

deferred, is On sorry, the the second one on…

sorry, was revenue the deferred deferred the revenue, So changes yes, of the issue. mainly seasonality revenue, deferred

is quarter normally the in revenue, of terms So, cash second from our low. cash business collected

basically lower calculated conversion the the to seasonality. percentage or to related billing, the cash that revenue ratio GAAP the So as rate lower is

So slowdown still our are still and like quarter, we are revenue see at changes. seeing any healthy, healthy we cash least with didn’t cash for revenue second a the we growth seeing

question. So is second a this the second

we a already question the end now overall regarding believe and guidance, August, have of the think, it’s the for we of certain the August already level we July. So, so of month have that by the -- it’s I whole your first and completed visibility

So, basically, one of only have our is month ahead we growth.

confidence have quarter so, happens month of third level in matter of of growth no And we this what business certain third basically, in our quarter. the

So like judgment And -- rationale the our numbers is some the all to -- the with probably, for still September. numbers. our we But that based our extrapolated do conservative the try are think forecast. we like, to this be on of

is this and subjected thought it’s to So initial our change.

we third that hope can understand like have can is quarter than the Review for So can so the we about situation the what our anything of don’t you you quarter, normal and third sense give third that Cybersecurity numbers kind in can by to get we quarter, some better we we regulator. mention in the

intention. is our this So

our like enterprise so the to best them best are it have, the expenses, not think, existing with you. our regarding and the the as share way our customers, I job have So with And enterprise I customers, can allowed seekers, we to to, to like and our extent serving impacted, we way revenue. topline we question grow are third Johnson third we users got in try can the existing because but to enhance quarter cost some we we that, mentioned, our just by service and well think

So we measures for this very is the revenue. definitely regarding for have to would And items. like various cost expenses, our the stringent

activities. cost item marketing traffic reduce the marketing not we our related allowed so user for And are largest acquisition-related is And because and our to we grow users, so item.

we -- quarter. enough not less in but generate that -- cannot because generate the So third spend we revenue, might balance will

results, quarter control and that quarter So, generally the the third speaking, -- third let’s we deliver hope think margin we we that we solid a can can can see. we

Thank you and congratulations again.

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seeing continues the segments. And So regarding the collar white user collar collar so, our and to are faster both in in outgrow white -- blue quarter, this growth blue business. from segment blue collar we collar

collar, among grew with all sub-sectors XXX% year-over-year. nicely by enterprise than users urban blue related So, up to service more sector verified

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they have the measures, blue So platform collar blue will a and that business, increase increase the but make sure that will on their revenue collar to grow. will And can user terms of experience loyalty. we and user contribution continues in also their our platform that all a people, stickiness satisfied we think

mid-XXs total our blue So for the revenue in business of second quarter, collar like revenue. accounts from roughly

up is percentage in have collar business. blue see contribution -- this from future still our uptrend, a we growing to to will So so

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the the blue I there from traditional particularly construction very want but year, to still portion what manufacturing wonder and this call or well, into very different particularly across we And second the accelerate from half of a we do going our the deepen of updates business kinds market work collar you. for of of partners is, market, with towards strategic just blue when that market, we that what’s to the working industries. blue workers I choosing that and going on from blue growth partners? rest number part second mentioned is from is the business? that, segment, company collar So or of with penetration any of collar large and pertaining How a we that in of sort the have you urban growth, strategy Thank actually can a as the me part? there’s apart collar it’s question

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color with answer collar for or our the would -- will our blue Jonathan, the question, a about cooperation and business. strategy like I give agencies So, briefly your more to you

manufacturing collar So, maybe collar. also the construction blue just regarding, related blue related you mentioned, and

blue blue and collar are fastest I of coming people area the service more think that we largest our because among job. structural trend urban the segment the But market. We on segments a see collar is urban think letting part that sector various they platform. of growing to all of the finding

is employers, because serve we well. groups our very job app, friendly of and very can of kind So to our such of model seekers people

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[Foreign Languague]

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[Foreign Language]

any conference closing turn Bei constraint to this the to Gwen additional will question-and-answer session. At Okay. that time, or for today’s Due back remarks. concludes I

today. once again you us for Thank joining

contact IR you Thank Relations. TBT If team you. our directly please questions, any Investor have further or the

you. Thank

Thank you.

and conference conclude Thank Ladies today. gentlemen, for you for does you. Thank our that participating.

You may now all disconnect.