Exhibit 99.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| As of | |||||||||||||||
| Note | December 31, 2024 | March 31, 2025 | |||||||||||||
| RMB | RMB | US$ | |||||||||||||
| Note 3 | |||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||
| ASSETS | |||||||||||||||
| Current assets | |||||||||||||||
| Cash and cash equivalents | 2,553,090 | 2,790,420 | 384,530 | ||||||||||||
| Short-term time deposits | 5,488,631 | 4,685,332 | 645,656 | ||||||||||||
| Short-term investments | 5 | 6,639,389 | 7,309,414 | 1,007,264 | |||||||||||
| Accounts and notes receivable, net | 40,713 | 38,792 | 5,346 | ||||||||||||
| Inventories | 3,042 | 2,862 | 394 | ||||||||||||
| Amounts due from related parties | 16 | 7,258 | 9,206 | 1,269 | |||||||||||
| Prepayments and other current assets | 6 | 368,260 | 844,978 | 116,441 | |||||||||||
| Total current assets | 15,100,383 | 15,681,004 | 2,160,900 | ||||||||||||
| Non-current assets | |||||||||||||||
| Long-term time deposits | – | 773,919 | 106,649 | ||||||||||||
| Long-term investments | 5 | 1,914,530 | 1,832,622 | 252,542 | |||||||||||
| Property, equipment and software, net | 7 | 1,733,786 | 1,609,795 | 221,836 | |||||||||||
| Right-of-use assets, net | 12 | 302,856 | 240,500 | 33,142 | |||||||||||
| Intangible assets, net | 8 | 252,589 | 243,501 | 33,555 | |||||||||||
| Goodwill | 6,528 | 6,528 | 900 | ||||||||||||
| Total non-current assets | 4,210,289 | 4,706,865 | 648,624 | ||||||||||||
| Total assets | 19,310,672 | 20,387,869 | 2,809,524 | ||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
| Current liabilities | |||||||||||||||
| Accounts payable | 9 | 110,668 | 92,631 | 12,765 | |||||||||||
| Deferred revenue | 3,084,839 | 3,341,494 | 460,470 | ||||||||||||
| Other payables and accrued liabilities | 10 | 815,767 | 821,567 | 113,215 | |||||||||||
| Operating lease liabilities, current | 12 | 180,782 | 150,849 | 20,788 | |||||||||||
| Total current liabilities | 4,192,056 | 4,406,541 | 607,238 | ||||||||||||
| Non-current liabilities | |||||||||||||||
| Operating lease liabilities, non-current | 12 | 121,345 | 90,259 | 12,438 | |||||||||||
| Deferred tax liabilities | 34,451 | 33,879 | 4,669 | ||||||||||||
| Total non-current liabilities | 155,796 | 124,138 | 17,107 | ||||||||||||
| Total liabilities | 4,347,852 | 4,530,679 | 624,345 | ||||||||||||
| Commitments and contingencies | 17 | ||||||||||||||
| Shareholders’ equity | |||||||||||||||
| Ordinary shares (US$0.0001 par value; 1,800,000,000 Class A ordinary shares and 200,000,000 Class B ordinary shares authorised; 761,663,103 Class A ordinary shares issued and 730,807,661 outstanding, 138,490,401 Class B ordinary shares issued and outstanding as of December 31, 2024; 777,723,103 Class A ordinary shares issued and 741,237,475 outstanding,138,430,401 Class B ordinary shares issued and outstanding as of March 31, 2025) | 571 | 582 | 80 | ||||||||||||
| Treasury shares | (1,519,708 | ) | (980,621 | ) | (135,133 | ) | |||||||||
| Additional paid-in capital | 16,234,535 | 16,091,978 | 2,217,534 | ||||||||||||
| Statutory reserves | 15,051 | 15,051 | 2,074 | ||||||||||||
| Accumulated other comprehensive income | 1,054,562 | 1,040,317 | 143,359 | ||||||||||||
| Accumulated deficit | (917,640 | ) | (399,506 | ) | (55,053 | ) | |||||||||
| Total KANZHUN LIMITED shareholders’ equity | 14,867,371 | 15,767,801 | 2,172,861 | ||||||||||||
| Non-controlling interests | 95,449 | 89,389 | 12,318 | ||||||||||||
| Total shareholders’ equity | 14,962,820 | 15,857,190 | 2,185,179 | ||||||||||||
| Total liabilities and shareholders’ equity | 19,310,672 | 20,387,869 | 2,809,524 | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| For the three months ended March 31, | |||||||||||||||
| Note | 2024 | 2025 | |||||||||||||
| RMB | RMB | US$ | |||||||||||||
| Note 3 | |||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||
| Revenues | |||||||||||||||
| Online recruitment services to enterprise customers | 1,684,087 | 1,901,382 | 262,017 | ||||||||||||
| Others | 19,666 | 21,895 | 3,017 | ||||||||||||
| Total revenues | 11 | 1,703,753 | 1,923,277 | 265,034 | |||||||||||
| Operating cost and expenses | |||||||||||||||
| Cost of revenues | (295,439 | ) | (310,808 | ) | (42,830 | ) | |||||||||
| Sales and marketing expenses | (579,270 | ) | (491,227 | ) | (67,693 | ) | |||||||||
| Research and development expenses | (467,569 | ) | (423,568 | ) | (58,369 | ) | |||||||||
| General and administrative expenses | (270,472 | ) | (265,511 | ) | (36,588 | ) | |||||||||
| Total operating cost and expenses | (1,612,750 | ) | (1,491,114 | ) | (205,480 | ) | |||||||||
| Other operating income, net | 12,590 | 7,622 | 1,050 | ||||||||||||
| Income from operations | 103,593 | 439,785 | 60,604 | ||||||||||||
| Interest and investment income, net | 156,056 | 149,489 | 20,600 | ||||||||||||
| Foreign exchange gain/(loss) | 30 | (569 | ) | (78 | ) | ||||||||||
| Other expenses, net | (259 | ) | (617 | ) | (85 | ) | |||||||||
| Income before income tax expenses | 259,420 | 588,088 | 81,041 | ||||||||||||
| Income tax expenses | 13 | (17,696 | ) | (75,994 | ) | (10,472 | ) | ||||||||
| Net income | 241,724 | 512,094 | 70,569 | ||||||||||||
| Net loss attributable to non-controlling interests | 3,227 | 6,040 | 832 | ||||||||||||
| Net income attributable to ordinary shareholders of KANZHUN LIMITED | 244,951 | 518,134 | 71,401 | ||||||||||||
| Weighted average number of ordinary shares used in computing net income per share | 15 | ||||||||||||||
| – Basic | 880,732,849 | 870,991,355 | 870,991,355 | ||||||||||||
| – Diluted | 907,305,397 | 895,586,531 | 895,586,531 | ||||||||||||
| Net income per share attributable to ordinary shareholders of KANZHUN LIMITED | 15 | ||||||||||||||
| – Basic | 0.28 | 0.59 | 0.08 | ||||||||||||
| – Diluted | 0.27 | 0.58 | 0.08 | ||||||||||||
| Other comprehensive income/(loss), net of tax | |||||||||||||||
| Foreign currency translation adjustments | 18,950 | (14,265 | ) | (1,966 | ) | ||||||||||
| Total other comprehensive income/(loss) | 18,950 | (14,265 | ) | (1,966 | ) | ||||||||||
| Total comprehensive income | 260,674 | 497,829 | 68,603 | ||||||||||||
| Comprehensive loss attributable to non-controlling interests | 3,254 | 6,060 | 835 | ||||||||||||
| Comprehensive income attributable to ordinary shareholders of KANZHUN LIMITED | 263,928 | 503,889 | 69,438 | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the three months ended March 31, | ||||||||||||
| 2024 | 2025 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Note 3 | ||||||||||||
| (In thousands) | ||||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | 241,724 | 512,094 | 70,569 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Share-based compensation | 288,977 | 251,763 | 34,693 | |||||||||
| Depreciation of property, equipment and software | 107,717 | 125,883 | 17,347 | |||||||||
| Amortization of right-of-use assets | 46,966 | 41,444 | 5,711 | |||||||||
| Amortization of intangible assets | 6,239 | 9,088 | 1,252 | |||||||||
| Loss from disposal of property, equipment and software | 15 | 443 | 61 | |||||||||
| Foreign exchange (gain)/loss | (30 | ) | 569 | 78 | ||||||||
| Interest and investment income | 145,076 | 55,921 | 7,706 | |||||||||
| Deferred income tax expenses/(benefit) | 227 | (572 | ) | (79 | ) | |||||||
| Allowance for credit losses | 208 | 61 | 8 | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts and notes receivable | (2,391 | ) | 1,910 | 263 | ||||||||
| Inventories | (2,599 | ) | 180 | 25 | ||||||||
| Prepayments and other current assets | (156,614 | ) | (325,188 | ) | (44,812 | ) | ||||||
| Amounts due from related parties | (2,344 | ) | (1,948 | ) | (268 | ) | ||||||
| Other non-current assets | 4,000 | – | – | |||||||||
| Accounts payable | 27,033 | 15,384 | 2,120 | |||||||||
| Deferred revenue | 345,669 | 256,655 | 35,368 | |||||||||
| Other payables and accrued liabilities | (95,192 | ) | 99,526 | 13,715 | ||||||||
| Operating lease liabilities | (49,140 | ) | (40,104 | ) | (5,525 | ) | ||||||
| Net cash provided by operating activities | 905,541 | 1,003,109 | 138,232 | |||||||||
| Cash flows from investing activities | ||||||||||||
| Purchases of property, equipment and software | (433,553 | ) | (36,533 | ) | (5,034 | ) | ||||||
| Disposal of property, equipment and software | 19 | 60 | 8 | |||||||||
| Purchases of time deposits | (4,731,571 | ) | (3,642,780 | ) | (501,989 | ) | ||||||
| Maturities of time deposits | 5,443,854 | 3,550,427 | 489,262 | |||||||||
| Purchases of short-term and long-term investments | (1,803,990 | ) | (2,840,000 | ) | (391,362 | ) | ||||||
| Maturities of short-term and long-term investments | 1,152,000 | 2,290,000 | 315,570 | |||||||||
| Payments for business acquisitions, net of cash acquired | (150,221 | ) | – | – | ||||||||
| Net cash used in investing activities | (523,462 | ) | (678,826 | ) | (93,545 | ) | ||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from exercise of share-based awards | 9,182 | 7,414 | 1,022 | |||||||||
| Payments for share repurchases | (113,760 | ) | (93,408 | ) | (12,872 | ) | ||||||
| Net cash used in financing activities | (104,578 | ) | (85,994 | ) | (11,850 | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (3,294 | ) | (959 | ) | (132 | ) | ||||||
| Net increase in cash and cash equivalents | 274,207 | 237,330 | 32,705 | |||||||||
| Cash and cash equivalents at beginning of the period | 2,472,959 | 2,553,090 | 351,825 | |||||||||
| Cash and cash equivalents at end of the period | 2,747,166 | 2,790,420 | 384,530 | |||||||||
| Supplemental cash flow disclosure | ||||||||||||
| Cash paid for income tax | 57,392 | 109,293 | 15,061 | |||||||||
| Supplemental disclosures of non-cash investing and financing activities | ||||||||||||
| Changes in payables for purchase of property, equipment and software | (194,549 | ) | (33,374 | ) | (4,599 | ) | ||||||
| Changes in consideration payable for share repurchases | (78,308 | ) | (93,478 | ) | (12,882 | ) | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
| Attributable to KANZHUN LIMITED | |||||||||||||||||||||||||||||
| Ordinary shares | Accumulated | ||||||||||||||||||||||||||||
| Number of | Additional | other | Non- | Total | |||||||||||||||||||||||||
| shares | Treasury | paid-in | Statutory | comprehensive | Accumulated | controlling | shareholders’ | ||||||||||||||||||||||
| Note | outstanding | Amount | shares | capital | reserves | income | deficit | interests | equity | ||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||||
| (In thousands, except share data) | |||||||||||||||||||||||||||||
| Balance as of January 1, 2024 | 879,802,778 | 564 | (479,730 | ) | 15,496,811 | 5,000 | 898,810 | (2,492,253 | ) | (9 | ) | 13,429,193 | |||||||||||||||||
| Net income | – | – | – | – | – | – | 244,951 | (3,227 | ) | 241,724 | |||||||||||||||||||
| Foreign currency translation adjustments | – | – | – | – | – | 18,977 | – | (27 | ) | 18,950 | |||||||||||||||||||
| Share-based compensation | – | – | – | 288,977 | – | – | – | – | 288,977 | ||||||||||||||||||||
| Exercise of share options and vesting of restricted share units (“RSUs”) | 8,540,374 | – | 380,290 | (321,493 | ) | – | – | – | – | 58,797 | |||||||||||||||||||
| Repurchase of ordinary shares | (550,924 | ) | – | (35,494 | ) | – | – | – | – | – | (35,494 | ) | |||||||||||||||||
| Acquisition of a subsidiary | 4 | – | – | – | – | – | – | – | 112,945 | 112,945 | |||||||||||||||||||
| Balance as of March 31, 2024 | 887,792,228 | 564 | (134,934 | ) | 15,464,295 | 5,000 | 917,787 | (2,247,302 | ) | 109,682 | 14,115,092 | ||||||||||||||||||
| Balance as of January 1, 2025 | 869,298,062 | 571 | (1,519,708 | ) | 16,234,535 | 15,051 | 1,054,562 | (917,640 | ) | 95,449 | 14,962,820 | ||||||||||||||||||
| Net income | – | – | – | – | – | – | 518,134 | (6,040 | ) | 512,094 | |||||||||||||||||||
| Foreign currency translation adjustments | – | – | – | – | – | (14,245 | ) | – | (20 | ) | (14,265 | ) | |||||||||||||||||
| Share-based compensation | – | – | – | 251,763 | – | – | – | – | 251,763 | ||||||||||||||||||||
| Exercise of share options and vesting of RSUs | 10,369,814 | – | 539,098 | (394,320 | ) | – | – | – | – | 144,778 | |||||||||||||||||||
| Issuance of ordinary shares as treasury shares | – | 11 | (11 | ) | – | – | – | – | – | – | |||||||||||||||||||
| Balance as of March 31, 2025 | 879,667,876 | 582 | (980,621 | ) | 16,091,978 | 15,051 | 1,040,317 | (399,506 | ) | 89,389 | 15,857,190 | ||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 1. | GENERAL INFORMATION |
KANZHUN LIMITED (the “Company”) was incorporated under the laws of the Cayman Islands with limited liability on January 16, 2014. The Company, through its subsidiaries, consolidated variable interest entity (the “VIE”) and VIE’s subsidiaries (collectively referred to as the “Group”), is primarily engaged in providing online recruitment services through a platform named “BOSS Zhipin” in the People’s Republic of China (the “PRC” or “China”).
| 2. | BASIS OF PRESENTATION |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements include financial statements of the Company, its subsidiaries, the consolidated VIE and VIE’s subsidiaries for which the Company is the ultimate primary beneficiary, and have been prepared on the same basis as the audited consolidated financial statements of the preceding fiscal year and include all adjustments necessary for a fair statement of results for the periods presented. The consolidated balance sheet as of December 31, 2024 was derived from the audited financial statements at that date but does not include all the information and notes required by U.S. GAAP. The unaudited condensed consolidated financial statements and related disclosures have been prepared with the presumption that users of the unaudited condensed consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2024. Significant accounting policies applied are consistent with those of the audited consolidated financial statements for the preceding fiscal year. The interim results are not necessarily indicative of the results of operations expected for the full year or any future periods.
| 3. | CONVENIENCE TRANSLATION |
Translations of the unaudited condensed consolidated balance sheets, the unaudited condensed consolidated statements of comprehensive income and the unaudited condensed consolidated statements of cash flows from RMB into US$ as of and for the three months ended March 31, 2025 are solely for the convenience of the readers, and were calculated at the rate of RMB7.2567 per US$1.00 on March 31, 2025 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate or at any other rate.
5
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 4. | BUSINESS ACQUISITION |
On February 6, 2024, the Group completed the acquisition of approximately 77% of equity interest of W.D Technology Investment Group Limited, which is principally engaged in providing blue-collar recruitment services. The consideration of this acquisition was approximately US$52.7 million (approximately RMB374.3 million). The Group obtained control of the investee since it held majority of the investee’s equity interest and was entitled to assign majority of the board members, one of whom shall be the chief executive officer of the investee.
The acquisition was accounted for as a business acquisition using the acquisition method of accounting. The consideration of the acquisition was allocated based on the fair value of assets acquired and liabilities assumed as of the acquisition date as follows:
| Amount | ||||
| RMB | ||||
| (In thousands) | ||||
| Purchase consideration | 374,306 | |||
| Net assets acquired | 208,412 | |||
| Identifiable intangible assets acquired | ||||
| – Customer relationships | 94,000 | |||
| – Trademarks | 91,000 | |||
| – Technology | 80,000 | |||
| – Non-compete agreements | 13,000 | |||
| Goodwill | 839 | |||
| Non-controlling interests | (112,945 | ) | ||
| Total | 374,306 | |||
Net assets acquired primarily consisted of cash and cash equivalents of RMB224.0 million, other receivables of RMB37.1 million, property, equipment and software of RMB43.3 million and other payables and accrued liabilities of RMB104.6 million.
Goodwill arising from this acquisition was primarily attributable to future business growth expected to be achieved from the acquisition. Goodwill was expected to be non-deductible for income tax purposes.
| 5. | INVESTMENTS |
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Short-term investments | ||||||||
| – Wealth management products | 4,640,283 | 5,300,486 | ||||||
| – Fixed rate notes | 1,997,243 | 2,005,465 | ||||||
| – Listed equity securities | 1,863 | 3,463 | ||||||
| Total short-term investments | 6,639,389 | 7,309,414 | ||||||
| Long-term investments | ||||||||
| – Fixed rate notes | 1,607,361 | 1,626,285 | ||||||
| – Unlisted equity securities | 206,391 | 206,337 | ||||||
| – Wealth management products | 100,778 | – | ||||||
| Total long-term investments | 1,914,530 | 1,832,622 | ||||||
6
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 6. | PREPAYMENTS AND OTHER CURRENT ASSETS |
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Receivables related to the exercise of share-based awards* | 56,062 | 374,535 | ||||||
| Receivables from third-party online payment platforms | 49,814 | 183,800 | ||||||
| Prepaid income tax and value-added tax | 60,675 | 93,263 | ||||||
| Deposits | 73,218 | 65,506 | ||||||
| Interest receivable | 37,264 | 51,731 | ||||||
| Prepaid advertising expenses and service fees | 44,799 | 21,413 | ||||||
| Staff loans and advances | 14,429 | 15,074 | ||||||
| Others | 31,999 | 39,656 | ||||||
| Total | 368,260 | 844,978 | ||||||
| * | It mainly represents receivables from a third-party share option brokerage platform for the exercise of share-based awards due to the timing of settlement. |
| 7. | PROPERTY, EQUIPMENT AND SOFTWARE, NET |
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Electronic equipment | 2,481,387 | 2,473,009 | ||||||
| Leasehold improvement | 181,705 | 184,107 | ||||||
| Buildings | 46,236 | 46,236 | ||||||
| Motor vehicles | 19,507 | 19,295 | ||||||
| Furniture and fixtures | 14,616 | 13,415 | ||||||
| Software | 7,424 | 7,424 | ||||||
| Total cost | 2,750,875 | 2,743,486 | ||||||
| Less: accumulated depreciation | (1,017,089 | ) | (1,133,691 | ) | ||||
| Total property, equipment and software, net | 1,733,786 | 1,609,795 | ||||||
Depreciation expenses of property, equipment and software were RMB107.7 million and RMB125.9 million for the three months ended March 31, 2024 and 2025, respectively.
7
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 8. | INTANGIBLE ASSETS, NET |
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Customer relationships | 94,000 | 94,000 | ||||||
| Trademarks | 92,587 | 92,587 | ||||||
| Technology | 80,000 | 80,000 | ||||||
| Non-compete agreements | 21,400 | 21,400 | ||||||
| Database | 1,000 | 1,000 | ||||||
| Domains | 909 | 909 | ||||||
| Total cost | 289,896 | 289,896 | ||||||
| Less: accumulated amortization | (37,307 | ) | (46,395 | ) | ||||
| Total intangible assets, net | 252,589 | 243,501 | ||||||
Amortization expenses of intangible assets were RMB6.2 million and RMB9.1 million for the three months ended March 31, 2024 and 2025, respectively.
| 9. | ACCOUNTS PAYABLE |
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Payables for server custody fees | 39,391 | 46,405 | ||||||
| Payables for advertising expenses | 16,458 | 29,740 | ||||||
| Payables for purchase of property, equipment and software | 33,945 | 571 | ||||||
| Others | 20,874 | 15,915 | ||||||
| Total | 110,668 | 92,631 | ||||||
| 10. | OTHER PAYABLES AND ACCRUED LIABILITIES |
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Tax payable | 115,192 | 332,770 | ||||||
| Salary, welfare and bonus payable | 429,566 | 309,210 | ||||||
| Advance from customers* | 90,161 | 94,606 | ||||||
| Deposits | 51,402 | 48,868 | ||||||
| Consideration payable for share repurchase | 93,475 | – | ||||||
| Others | 35,971 | 36,113 | ||||||
| Total | 815,767 | 821,567 | ||||||
| * | It represents advance payments from customers, which are refundable under certain conditions and could be used to exchange for the Group’s services. |
8
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 11. | REVENUES |
The Group defines enterprise customers who contributed revenues of RMB50,000 or more annually as key accounts, who contributed revenues between RMB5,000 and RMB50,000 annually as mid-sized accounts, and who contributed revenues of RMB5,000 or less annually as small-sized accounts. Revenues by source are as follows:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Online recruitment services to enterprise customers | 1,684,087 | 1,901,382 | ||||||
| – Key accounts | 375,607 | 456,346 | ||||||
| – Mid-sized accounts | 585,182 | 636,948 | ||||||
| – Small-sized accounts | 723,298 | 808,088 | ||||||
| Others | 19,666 | 21,895 | ||||||
| Total | 1,703,753 | 1,923,277 | ||||||
For revenues from online recruitment services to enterprise customers, RMB1,240.0 million and RMB1,510.2 million were recognized over time for the three months ended March 31, 2024 and 2025, respectively; RMB444.1 million and RMB391.2 million were recognized at a point in time for the three months ended March 31, 2024 and 2025, respectively.
| 12. | OPERATING LEASE |
The Group’s operating leases are primarily for offices. The components of lease expenses are as follows:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Operating lease expenses | 48,288 | 47,409 | ||||||
| Short-term lease expenses | 1,431 | 1,157 | ||||||
| Total | 49,719 | 48,566 | ||||||
Supplemental balance sheet information related to operating leases is as follows:
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Right-of-use assets, net | 302,856 | 240,500 | ||||||
| Operating lease liabilities, current | 180,782 | 150,849 | ||||||
| Operating lease liabilities, non-current | 121,345 | 90,259 | ||||||
| Total operating lease liabilities | 302,127 | 241,108 | ||||||
9
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 12. | OPERATING LEASE (CONTINUED) |
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| Weighted average remaining lease term (in years) | 2.15 | 2.17 | ||||||
| Weighted average discount rate | 4.78 | % | 4.78 | % | ||||
Supplemental cash flow information related to operating leases is as follows:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | 52,415 | 51,622 | ||||||
Maturities of operating lease liabilities as of March 31, 2025 are as follows:
| Amount | ||||
| RMB | ||||
| (In thousands) | ||||
| Succeeding period in 2025 | 116,914 | |||
| 2026 | 86,904 | |||
| 2027 | 29,702 | |||
| 2028 | 14,294 | |||
| 2029 | 6,353 | |||
| 2030 and thereafter | 335 | |||
| Total undiscounted lease payments | 254,502 | |||
| Less: imputed interest | (13,394 | ) | ||
| Total operating lease liabilities | 241,108 | |||
| 13. | INCOME TAX |
Cayman Islands
The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, no Cayman Islands withholding tax will be imposed upon payments of dividends to shareholders.
Hong Kong
Under the current Hong Kong Inland Revenue Ordinance, the Group’s subsidiaries in Hong Kong are subject to 16.5% Hong Kong profit tax on taxable income generated from operations in Hong Kong. Additionally, payments of dividends by subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax.
10
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 13. | INCOME TAX (CONTINUED) |
Mainland China
Under the PRC Enterprise Income Tax Law (the “EIT Law”), domestic enterprises and foreign invested enterprises are subject to a uniform enterprise income tax rate of 25%. In accordance with the implementation rules of the EIT Law, a qualified High and New Technology Enterprise (“HNTE”) is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years and could be re-applied when the prior certificate expires. The consolidated VIE, Beijing Huapin Borui Network Technology Co., Ltd., is qualified as a HNTE and enjoys a preferential income tax rate of 15% for the periods presented.
According to relevant laws and regulations promulgated by the State Taxation Administration (“STA”) of the PRC effective from 2018 onwards, enterprises engaging in research and development activities are entitled to claim 175% of their qualified research and development expenses incurred as tax deductible expenses (“Super R&D Deduction”) when determining their assessable profits for the year. Pursuant to the announcement issued by the STA of the PRC and other government authorities in September 2022, the Super R&D Deduction rate increased to 200% for the period from October 1, 2022 to December 31, 2022. In March 2023, the STA of the PRC further announced that the 200% Super R&D Deduction rate would continue to be applied from January 1, 2023.
Components of income tax expenses are as follows:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Current income tax expenses | 17,469 | 76,566 | ||||||
| Deferred income tax expenses/(benefit) | 227 | (572 | ) | |||||
| Total | 17,696 | 75,994 | ||||||
| 14. | SHARE-BASED COMPENSATION |
In 2020, the Group adopted the 2020 Share Incentive Plan, which allows the Group to grant share-based awards to directors, employees and consultants. The Company did not grant any share-based awards pursuant to the 2020 Share Incentive Plan since the listing on the Main Board of The Stock Exchange of Hong Kong Limited in December 2022. In December 2022, the Group adopted the Post-IPO Share Scheme, which allows the Group to grant share-based awards to directors, employees and officers. The maximum number of Class A ordinary shares that may be issued under the Post-IPO Share Scheme is 86,380,904.
11
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 14. | SHARE-BASED COMPENSATION (CONTINUED) |
| (a) | Share options |
The following table summarizes activities of share options for the periods presented:
| Weighted | ||||||||||||||||
| Weighted | average | |||||||||||||||
| Number of | average | remaining | Aggregate | |||||||||||||
| share | exercise | contractual | intrinsic | |||||||||||||
| options | price | life | value | |||||||||||||
| US$ | In years | US$ in thousands | ||||||||||||||
| Outstanding as of January 1, 2024 | 55,831,980 | 3.04 | 6.34 | 294,189 | ||||||||||||
| Exercised | (3,759,836 | ) | 2.20 | |||||||||||||
| Forfeited | (465,500 | ) | 4.84 | |||||||||||||
| Outstanding as of March 31, 2024 | 51,606,644 | 3.08 | 6.17 | 293,373 | ||||||||||||
| Outstanding as of January 1, 2025 | 44,678,228 | 3.11 | 5.44 | 169,354 | ||||||||||||
| Exercised | (8,178,404 | ) | 2.47 | |||||||||||||
| Forfeited | (240,022 | ) | 4.91 | |||||||||||||
| Outstanding as of March 31, 2025 | 36,259,802 | 3.24 | 5.19 | 229,984 | ||||||||||||
| Vested and expected to vest as of March 31, 2025 | 36,259,802 | 3.24 | 5.19 | 229,984 | ||||||||||||
| Exercisable as of March 31, 2025 | 32,286,866 | 3.01 | 5.06 | 212,354 | ||||||||||||
The aggregate intrinsic value is calculated as the difference between the exercise price of share options and the market value of the underlying ordinary share at each reporting date.
As of March 31, 2025, there were US$3.7 million of unrecognized compensation expenses related to share options, which are expected to be recognized over a weighted-average period of 0.20 years and may be adjusted for future forfeitures.
| (b) | RSUs |
The following table summarizes activities of RSUs for the periods presented:
| Weighted | ||||||||
| average | ||||||||
| Number of | grant-date | |||||||
| RSUs | fair value | |||||||
| US$ | ||||||||
| Outstanding as of January 1, 2024 | 39,458,612 | 9.58 | ||||||
| Granted | 2,155,508 | |||||||
| Vested | (4,780,538 | ) | ||||||
| Forfeited | (507,290 | ) | ||||||
| Outstanding as of March 31, 2024 | 36,326,292 | 9.60 | ||||||
| Outstanding as of January 1, 2025 | 31,537,814 | 9.20 | ||||||
| Granted | 3,243,858 | |||||||
| Vested | (2,191,410 | ) | ||||||
| Forfeited | (576,274 | ) | ||||||
| Outstanding as of March 31, 2025 | 32,013,988 | 9.27 | ||||||
12
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 14. | SHARE-BASED COMPENSATION (CONTINUED) |
As of March 31, 2025, there were US$241.1 million of unrecognized compensation expenses related to RSUs, which are expected to be recognized over a weighted-average period of 2.41 years and may be adjusted for future forfeitures.
| (c) | Share-based compensation expenses by function |
The following table sets forth the allocation of share-based compensation expenses:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Cost of revenues | 10,917 | 9,611 | ||||||
| Sales and marketing expenses | 70,472 | 74,237 | ||||||
| Research and development expenses | 102,693 | 88,533 | ||||||
| General and administrative expenses | 104,895 | 79,382 | ||||||
| Total | 288,977 | 251,763 | ||||||
| 15. | NET INCOME PER SHARE |
The computation of basic and diluted net income per share for the periods presented is as follows:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands, except share | ||||||||
| and per share data) | ||||||||
| Numerator | ||||||||
| Net income attributable to ordinary shareholders of KANZHUN LIMITED | 244,951 | 518,134 | ||||||
| Denominator | ||||||||
| Weighted average number of ordinary shares used in computing basic net income per share | 880,732,849 | 870,991,355 | ||||||
| Dilutive effect of share-based awards | 26,572,548 | 24,595,176 | ||||||
| Weighted average number of ordinary shares used in computing diluted net income per share | 907,305,397 | 895,586,531 | ||||||
| Net income per share attributable to ordinary shareholders of KANZHUN LIMITED | ||||||||
| – Basic | 0.28 | 0.59 | ||||||
| – Diluted | 0.27 | 0.58 | ||||||
13
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 16. | RELATED PARTY TRANSACTIONS AND BALANCES |
The Group entered into the following material transactions with one of the Company’s major shareholder, Tencent Holdings Limited and its affiliates (“Tencent Group”):
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Cloud services from Tencent Group | 3,425 | 3,416 | ||||||
| Online payment clearing services and other services from Tencent Group | 2,285 | 2,890 | ||||||
| Total | 5,710 | 6,306 | ||||||
Details of major amounts due from related parties are as follows:
| As of | ||||||||
| December 31, 2024 | March 31, 2025 | |||||||
| RMB | RMB | |||||||
| (In thousands) | ||||||||
| Receivables from the online payment platform of Tencent Group | 6,719 | 8,175 | ||||||
| Prepaid service fee to Tencent Group | 539 | 1,031 | ||||||
| Total | 7,258 | 9,206 | ||||||
| 17. | COMMITMENTS AND CONTINGENCIES |
Commitments
The Group engages third parties for promoting its brand image through various advertising channels. The advertising commitments contracted but not yet reflected in the unaudited condensed consolidated financial statements amounted to RMB50.3 million as of March 31, 2025.
Contingencies
The Group is subject to legal proceedings in the ordinary course of business. The Group records a liability when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. No material liabilities in this regard were recorded as of March 31, 2025.
14