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01/11 03:32
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The company's strong financial performance, including a 112% YoY net income growth and improved margins, combined with effective cost management and AI-driven initiatives, indicate positive momentum. The Q&A further supports this with sustainable recruitment demand recovery and strategic investments in AI and overseas expansion. The renewed share repurchase program and dividend policy also bolster shareholder confidence. Despite the lack of market cap data, the overall sentiment is positive, suggesting a likely stock price increase of 2% to 8% over the next two weeks.
Total Revenue RMB 2.1 billion, up 9.7% year-on-year. The increase was attributed to improved supply-demand dynamics on the platform and growth in user base.
Net Income RMB 710 million, reflecting a 70.4% year-on-year growth. This was driven by operating leverage, efficient business model, and reduced share-based compensation expenses.
Adjusted Operating Profit RMB 880 million, up 33% year-on-year. The growth was supported by reduced share-based compensation expenses and improved operational efficiency.
Share-Based Compensation Expenses RMB 230 million, decreased by nearly 10% quarter-on-quarter and 24% year-on-year. The reduction was due to improved operational efficiency and cost management.
Average Verified Active Users 63.56 million, up 16.5% year-on-year. Growth was consistent with user growth and penetration trends, with increased contributions from blue-collar and SME sectors.
Total Paid Enterprise Customers 6.5 million, up 10% year-on-year. Growth was driven by recovery in recruitment demand and increased willingness of enterprise clients to pay.
Cost of Revenues RMB 307 million, decreased by 3% year-on-year. The decline was due to reduced operational employee-related expenses and improved operational efficiency.
Sales and Marketing Expenses RMB 420 million, decreased by 23% year-on-year. The reduction was attributed to lower advertising and marketing expenses and employee-related costs.
R&D Expenses RMB 416 million, decreased by 6% year-on-year. The decrease was primarily due to reduced public cloud service fees related to AI.
Net Cash Provided by Operating Activities RMB 1,052 million, up 21% year-on-year. The increase was due to strong cash flow generation from operations.
Gross Margin 85.4%, up 1.9 percentage points year-on-year. The improvement was driven by reduced operational costs and increased efficiency.
Net Margin 33.8%, up 12.1 percentage points year-on-year. The improvement was due to higher net income and reduced costs.
AI-interviewed training robot: The robot now plays a role in recommendations, using data from interviews to suggest positions to job seekers. It also provides dynamic content summaries, job search strategies, and revenue optimization guides.
AI-assisted job posting optimization: AI assists in posting tens of thousands of job positions daily, particularly for startups and junior HR.
AI in R&D: 30% of coding in Beijing headquarters and 70% in a new R&D department is AI-generated, accelerating product development.
AI in customer service: AI is used for training, quality inspection, and emotion recognition, improving user satisfaction and employee well-being.
Hong Kong secondary share offering: Completed a HKD 2.2 billion offering to enhance liquidity and attract Hong Kong investors.
Recruitment market recovery: Job openings increased by 20% year-on-year in July, with notable growth in blue-collar manufacturing, urban services, and the Internet industry.
Revenue growth: Achieved RMB 2.1 billion in revenue, up 9.7% year-on-year, with a net income of RMB 710 million, reflecting a 70.4% growth.
Operational efficiency: Operating costs decreased by 7% year-on-year, with AI contributing to reduced employee-related expenses and improved margins.
Shareholder returns: Adopted an annual dividend policy with USD 80 million for FY 2025 and a USD 250 million share repurchase program.
Decline in Verified Graduate Users: The number of newly added verified graduates declined over 20% year-on-year in June and July, indicating a potential challenge in attracting new graduate users to the platform.
Short-term Slowdown in Blue-Collar Manufacturing: Blue-collar manufacturing experienced a short-term slowdown in imports due to tariffs, which could impact the platform's growth in this sector.
AI Implementation Challenges: The company faces challenges in preventing AI assistance from turning into placement, which could affect the effectiveness and reliability of AI tools for job posting optimization.
Economic Dependence on SMEs: The recovery in recruitment demand from small- and medium-sized enterprises (SMEs) is driving revenue growth, but over-reliance on SMEs could pose risks if this segment faces economic downturns.
Regulatory and Compliance Risks: The company acknowledges the presence of known and unknown risks, uncertainties, and factors beyond its control, which could materially impact its performance.
Operational Costs and Efficiency: While operational costs have decreased, the company is heavily reliant on AI for operational efficiency, which could pose risks if AI systems fail or underperform.
Dependence on Hong Kong Market Liquidity: The company’s recent Hong Kong secondary share offering aims to enhance liquidity, but dependence on this market could pose risks if trading volumes or investor interest decline.
Revenue Growth: The company expects total revenues for Q3 2025 to be between RMB 2.13 billion and RMB 2.16 billion, representing a year-on-year increase of 11.4% to 13%.
Recruitment Market Recovery: The company anticipates a reacceleration in revenue growth starting Q3 2025, driven by the recovery of recruitment market momentum.
Shareholder Returns: The company has adopted an annual dividend policy with a dividend amount of USD 80 million for fiscal year 2025 and launched a USD 250 million share repurchase program over the next 12 months starting August 29, 2025.
AI Integration: AI is increasingly being integrated into operations, including job seeker assistance, enterprise recruitment, and internal R&D processes, with significant improvements in efficiency and user satisfaction.
Annual Dividend Policy: The company plans to pay out annual dividends going forward, with a dividend of USD 80 million for the current fiscal year.
Share Repurchase Program: The company intends to repurchase up to USD 250 million of its shares over the next 12 months starting August 29.
The earnings call presents a positive sentiment with strong financial performance, including a record high in blue-collar revenue, improved net income, and cash flow. The Q&A reveals optimism in recruitment demand and customer retention, despite cautious AI integration and unclear management responses on future spending plans. The company's strategic focus on growth and shareholder returns, including a share repurchase program, adds to the positive outlook. The absence of market cap data prevents a strong positive rating, but the overall sentiment suggests a stock price increase in the 2% to 8% range over the next two weeks.
The company's strong financial performance, including a 112% YoY net income growth and improved margins, combined with effective cost management and AI-driven initiatives, indicate positive momentum. The Q&A further supports this with sustainable recruitment demand recovery and strategic investments in AI and overseas expansion. The renewed share repurchase program and dividend policy also bolster shareholder confidence. Despite the lack of market cap data, the overall sentiment is positive, suggesting a likely stock price increase of 2% to 8% over the next two weeks.
The earnings call highlights strong financial performance with record user growth, increased revenue, and improved margins. Despite risks like the tariff war and AI implementation concerns, the company shows resilience and growth potential. Share buybacks and a strong cash position further bolster investor confidence. Positive Q&A feedback and optimistic guidance suggest a favorable outlook, leading to a positive stock price prediction over the next two weeks.
The earnings call highlights strong financial performance with a significant increase in net income and operating margins. User growth and AI implementation are driving revenue, despite concerns about the tariff war and economic conditions. The Q&A reveals positive sentiment towards AI features and confidence in achieving profit targets. However, lack of shareholder return programs and vague future recruitment predictions slightly temper enthusiasm. Overall, the positive financial metrics and growth outlook suggest a positive stock price movement.
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