The earnings call covers Kajun Limited's Q4 and FY 2025 financial results, spring recruitment season growth, AI progress updates, and commitment to shareholder returns. Forward-looking statements caution against reliance due to risks and uncertainties. A webcast replay is available on the company's website.

The company's Q4 2025 revenue reached RMB 2.08 billion, a 14% year-over-year increase, with operating profit up 37%. Despite the low hiring season, demand recovered steadily, especially in manufacturing, electronics, and semiconductors, with the Internet tech sector showing QoQ growth.

In 2025, the company achieved RMB 8.27 billion in revenue, a 12.4% increase, with net income of RMB 2.7 billion. Adjusted operating profit soared 45.7% to RMB 3.38 billion, reflecting a 40.8% margin. The platform added nearly 46 million new users, serving over 260 million job seekers and 36 million enterprises, with MAU exceeding 60.7 million, a 14.5% rise. Over 2.27 billion mutual consents were facilitated, a 22.4% increase, showcasing robust network effects.

In 2025, the company advanced in the blue sector and small-medium enterprises, achieving higher growth in whole color users and revenue. White color recruitment recovered, aided by technology, while semiconductors showed improved structural growth.

Revenue contribution from third and lower tier cities reached 25% in Q4, doubling from 40 years ago, highlighting successful market penetration. In 2020, over 50% of revenue came from enterprises with fewer than 100 employees for the first time. By 2025, paid enterprise customers numbered 6.83 million, a 11.6% YoY increase, with stable ARPU driven by SME growth.

The spring recruitment season in China has shown strong growth in both supply and demand, with daily newly verified users and job postings exceeding last year's levels. Manufacturing, electronics, and AI sectors particularly saw accelerated growth. The CQD ratio remained healthy, indicating a balanced market. Early signs suggest continued year-on-year growth in technology fields.

AI advancements enhance close-loop services for enterprises, broadening online recruitment's impact beyond initial scope, aiming to engage more job seekers effectively.

The online recruitment industry is transitioning to a closed-loop model, leveraging AI to enhance matching efficiency, reduce management costs, and increase profitability. Tools like AI quick hiring and AI-assisted interviews are being developed to meet the needs of enterprises and job seekers, demonstrating high resilience and commercial potential.

Company enhances hiring efficiency through AI agents, boosts shareholder returns with dividends and share repurchase plans, and leads in small model intelligence research.

The company reported robust financial results for Q4 and FY25, with revenue growth accelerating to 14% and profitability improving significantly. Total revenues reached nearly RMB 2.1 billion in Q4, up 12.4% YoY to RMB 8.3 billion for the year. Paid enterprise customers grew by 12% YoY to 6.8 million. Operating costs and expenses decreased by 7% YoY, while adjusted income from operations surged by 30-57% to RMB 900 million in Q4. The adjusted operating margin hit a quarterly high of 43.3%, and the annual margin improved by 9 percentage points to 14.8%. Gross margin increased by 2 percentage points to 85.1%, driven by decreased employee-related expenses and rental costs. Sales and marketing expenses fell by 9% YoY to RMB 389 million in Q4, and R&D expenses decreased by 8% YoY to RMB 406 million. GA expenses decreased by 7% YoY to RMB 256 million in Q4, while income tax expenses rose by 81% to RMB 165 million due to higher income and top-up tax provisions. Net income reached RMB 682 million in Q4 and RMB 2.7 billion for FY25, with adjusted net income increasing by 25% YoY to RMB 906 million in Q4 and 33% YoY to RMB 3.6 billion for the year. Adjusted net margin reached a historical high of 43.6%, reflecting strong operational leverage and financial discipline.

The company reported robust cash flows, declaring a dividend and repurchasing shares. A new policy commits to allocating at least 50% of adjusted net income for shareholder returns over the next three years. Revenues are forecasted to grow, with strong demand expected to accelerate in upcoming quarters.

Discusses AI's role in enhancing labor efficiency, potential impact on recruitment demand, and challenges to competitive business models.

The dialogue discusses the projected decline in China's labor force by 9% to 20% over the next two decades, highlighting the potential of AI to mitigate this issue. It contrasts China's labor market with the US, noting a higher proportion of blue-collar workers in China.

A discussion reveals that China's enterprise scene, dominated by small and micro-sized companies, influences the success of SaaS businesses. With 40 million active enterprises hiring 420 million urban employees, the average hiring per company is low, affecting SaaS adoption. This highlights the challenge SaaS companies face in penetrating the Chinese market due to the unique hiring practices and scale of businesses.

AI-related job postings increased by 72%, with a notable trend of companies in lower tier cities expanding roles and embracing AI talent, reflecting a broader adoption of AI skills across various industries and regions.

Discusses the increase in white collar jobs, particularly in tech and communications, highlighting AI's role in strengthening these trends and enhancing bilateral network effects, ensuring market resilience and individual user benefits.

Discussion highlights AI's role in transforming online recruitment, enabling result-based business models, and its potential global influence, emphasizing current observations over predictions.

Discusses plans for AI Porter's testing, product launch, and monetization, AI product expectations for the year, rationale behind non-being application focus, and recruitment demand trends post Chinese New Year compared to previous years.

A company leverages AI to enhance its online recruitment services, aiming for exponential revenue growth. By maintaining a dedicated science team, it follows a 'tail-light' strategy to stay abreast of AI advancements, ensuring the effective use of proprietary models and open-source platforms for superior customer solutions and experiences.

A company, despite not being wealthy, emphasizes the development of smaller, cost-effective models for industrial applications. They highlight the importance of talent over resources, showcasing young, talented scientists' contributions. The company sees strong demand for improvements in enterprise data, with positive cash growth expected to accelerate throughout the year, impacted by the timing of Chinese New Year affecting quarterly revenue.

UBS analysts inquire about user growth targets for 2026, margin trends considering investments in AI and marketing, and updates on overseas business, particularly in Hong Kong. The company aims to add 40 million verified users, anticipates margin improvement despite investments, and plans for continued domestic growth and potential overseas expansion.

Offer Today dominates Hong Kong's job search market, with one in 50 workers using the platform daily, securing new opportunities through its services.

Discussion highlights the importance of localizing a native app for the Hong Kong market, focusing on product and team adaptation, particularly integrating local young talent into leadership roles.

Discussion covered strategies for enhanced local partnerships in international markets, clarifications on regional distinctions, and closing remarks with an invitation for further inquiries.