[Management View]
Kanzhun Limited reported significant expansion in both user base and profitability for Q1 2025. Key metrics include a GAAP revenue of RMB 1.92 billion, up 13% year-over-year, and a net income of RMB 510 million, up 112% year-over-year. Strategic priorities focused on high-impact areas such as blue-collar user growth, lower-tier city penetration, and AI integration.

[Outlook]
Management provided guidance for Q2 2025 with projected total revenue of RMB 2.05 billion to RMB 2.08 billion, representing 7.0%-8.5% year-over-year growth. The company remains confident in achieving its annual non-GAAP operating profit target of RMB 3 billion and continues to evaluate shareholder return measures.

[Financial Performance]
- GAAP revenue: RMB 1.92 billion, up 13% YoY
- Net income: RMB 510 million, up 112% YoY
- Adjusted net income: RMB 764 million, up 44% YoY
- Adjusted operating income: RMB 690 million, with a margin of 36%, up 13 percentage points YoY
- Gross margin: 83.8%, up 1.1 percentage points YoY
- Paid enterprise customers: 6.38 million, up 12% YoY
- Average verified monthly active users: 57.56 million, up 24% YoY

[Q&A Highlights]
Question 1: How has hiring demand evolved since the start of the tariff war, and what are the current trends in recruitment demand?
Answer: The impact of the tariff war on the overall supply and demand relationship has been limited. Recruitment trends have shown continuous improvement, with significant growth in new job postings and active job postings. Blue-collar sectors, especially urban services, have seen year-on-year growth from March to May. The outlook for the graduation season in June and July is cautiously optimistic.

Question 2: What feedback has been received from the internal testing of AI features, and what are the plans for AI monetization?
Answer: AI product testing has received positive feedback, with AI recruitment functions improving efficiency by 25% and AI communication assistants serving over 9 million conversations. The company remains cautious about AI monetization, planning a gradual rollout. The goal is to enhance user experience and efficiency while maintaining a cautious approach to broader AI adoption.

Question 3: How does management view the RMB 3 billion non-GAAP operating profit target for this year, and what are the plans for capital allocation?
Answer: Management is confident in achieving the RMB 3 billion non-GAAP operating profit target, supported by cost reductions and improved efficiency. The company plans to continue its share repurchase program and is evaluating other measures to enhance shareholder returns.

Question 4: How will AI impact the competitive landscape, and what are the updates on the blue-collar recruiting business?
Answer: The competitive landscape remains stable, with no revolutionary changes observed from current AI technology. The company continues to invest in AI and sees potential for AI to enhance business operations. Blue-collar recruiting remains a key focus, with significant contributions from new users and revenue in lower-tier cities. The placement business, particularly for blue-collar roles, is expected to benefit from AI applications.

[Sentiment Analysis]
The tone of the management was confident and optimistic, emphasizing strong financial performance, strategic focus on AI integration, and user growth. Analysts' questions reflected interest in the impact of AI and the company's ability to achieve profitability targets.

[Quarterly Comparison]
| Metric | Q1 2025 | Q1 2024 | YoY Change |
|---------------------------------|------------------|------------------|------------------|
| GAAP Revenue | RMB 1.92 billion | RMB 1.70 billion | +13% |
| Net Income | RMB 510 million | RMB 240 million | +112% |
| Adjusted Net Income | RMB 764 million | RMB 530 million | +44% |
| Adjusted Operating Income | RMB 690 million | RMB 460 million | +50% |
| Gross Margin | 83.8% | 82.7% | +1.1 pp |
| Paid Enterprise Customers | 6.38 million | 5.70 million | +12% |
| Average Verified Monthly Active Users | 57.56 million | 46.40 million | +24% |

[Risks and Concerns]
- Potential impact of the ongoing tariff war on recruitment demand.
- Uncertainty in the macroeconomic environment affecting hiring trends.
- Gradual and cautious approach to AI monetization may delay potential revenue benefits.

[Final Takeaway]
Kanzhun Limited demonstrated robust financial performance in Q1 2025, driven by significant user growth and strategic focus on AI integration. The company remains confident in achieving its profitability targets and continues to explore measures to enhance shareholder returns. While the impact of the tariff war remains a concern, the overall recruitment demand shows positive trends, particularly in blue-collar sectors and lower-tier cities. The cautious approach to AI monetization reflects a balanced strategy to enhance user experience and operational efficiency.