Welcome to the first quarter 2025 financial results conference call, where the company discusses its financial performance, risks, uncertainties, and non-GAAP financial measures. A replay will be available on the company's website.

The company reported a GA revenue of RMB 1.92 billion, a 13% growth, and a 112% year-over-year income increase to RMB 510 million. Focus on profitability, minimal impact from ongoing tariff war, and steady advancements in AI technology were highlighted.

The company reported an adjusted operating income of $690 million for Q1 2025, with a margin of 36%, up 13% points YoY. Profitability enhancement strategies include cost control and revenue growth, with a notable 10% quarter-on-quarter decrease in share-based compensation expenses as a proportion of revenue.

From January to April 2025, the company added over 15 million verified new users, with the first app's average monthly active users reaching 57.56 million, a 24% increase year-over-year. Despite reduced marketing expenses, user growth remained strong, attributed to the model's network effect and focus on user satisfaction. In March, monthly active users approached 65 million, with the average number of achievements per user increasing both quarter-on-quarter and year-over-year.

Core revenue growth is driven by increasing user base and penetration rate, showing a high correlation between revenue and user growth as of May 26, 2025.

In the first quarter of 2025, blue collar new users and enterprises with fewer than 100 employees significantly contributed to revenue growth, with notable increases from Tier 3 and lower cities.

Despite concerns over the tariff war's impact, hiring demand has shown a recovery trend since Chinese New Year, with a 17% year-over-year increase in new postings and a 22% rise in paid enterprise customers. Blue-collar sectors and manufacturing have demonstrated resilience, maintaining growth in recruitment demand.

As of May 26, 2025, recruitment demand for white-collar roles is recovering in sectors like advertising and internet finance. The market shows significant concern for AI, leading to its enhanced application in products, services, and daily operations. Key focuses include AI for job seekers, recruiters, and management, aiming to expand AI testing scale and penetration.

The company has rolled out AI-driven explanations for search results and an interview practice robot for users, while AI recruiters have significantly increased the number of enterprises receiving placement services.

An AI agent boosts enterprise recruitment efficiency by 25%, improving candidate matching accuracy without aiming to replace human roles; its capabilities are being prudently expanded.

On May 26, 2025, discussions revolve around utilizing a proprietary AI system to reform and summarize weekly reports, aiming to improve management efficiency by studying historical data and providing supplementary insights to human capabilities.

In the first quarter of 2025, the discussion highlights the significance of AI in human resource management for unbiased performance evaluations, contrasting it with human tendencies towards recency bias and selective presentation of employee data. The objective nature of AI in processing past performance data ensures neutrality and fairness, preserving employee privacy and dignity.

A speaker concludes their portion of a call, passing the discussion to the CO for a financial review on May 26, 2025.

The company reported a strong Q1 2025 with 13% YoY revenue growth to RMB 1.9 billion, driven by expanding user base and enterprise hiring demand. Paid enterprise customers grew by 12% YoY to 6.4 million, and adjusted operating margin reached 36%. Net income surged 112% YoY to RMB 512 million. For Q2 2025, revenue is forecasted between RMB 2.05 billion and RMB 2.08 billion, expecting a 7.0% to 8.5% YoY increase.

The discussion highlights the evolving recruitment demand over the past month, noting a continued recovery trend without significant fallbacks compared to March. Industries such as urban service blue color sectors have shown improved year-on-year growth rates, with predictions for a steady trend during the graduation season in June and July.

The company discusses positive feedback from internal AI feature tests for enterprises and job seekers, planning to launch AI monetization features. They also address the strategy to achieve a 3 billion RMB non-GAAP operating profit target amidst the current macro environment, including measures for market expansion and capital allocation.

The AI communication assistant has improved efficiency by 25% and increased achievement rates by 15% during a massive grayscale test, serving over 9 million conversations. Despite cautious AI adoption, the company aims for solid online growth and improved profitability, targeting a 3 billion RMB non-GAAP operating profit for the year. Cost reductions and efficient AI tools have led to improved margins, with plans for further improvements in the second quarter and second half of the year. Shareholder returns are a priority, with ongoing share repurchase programs and consideration of additional measures.

The dialogue discusses the conservative view on AI's current impact on the human resources industry, emphasizing ongoing investments in AI technology and its potential to enhance service offerings. Additionally, it highlights the significant contributions of the blue collar sector to revenue and the focus on simplifying services for lower-tier city users, indicating a strategic investment in improving efficiency and reliability through AI applications.