KANZHUN LIMITED Annual Report 2025: Key Highlights and Investor Insights

Financial Performance Overview

• Revenue Growth: Revenues increased by 12.4% to RMB 8.27 billion in 2025, up from RMB 7.36 billion in 2024.
• Profitability Surge: Income from operations more than doubled, rising 110.1% to RMB 2.46 billion. Net income climbed 71.7% to RMB 2.69 billion.
• Adjusted Net Income: Adjusted net income (excluding share-based compensation) reached RMB 3.60 billion, up 32.9% year-on-year.
• Share-Based Compensation: RMB 911.99 million in share-based compensation expenses were excluded from adjusted net income, reflecting significant ongoing investment in talent.

Share Offer and Capital Actions

• Hong Kong Share Offer: In July 2025, KANZHUN LIMITED successfully listed on the Hong Kong Stock Exchange, raising approximately HK\$2.2 billion at HK\$66.00 per share. This increased financial flexibility, broadened the shareholder base, and improved liquidity.
• Annual Dividend: October 2025 saw the distribution of a US\$77.9 million cash dividend (US\$0.084 per share or US\$0.168 per ADS), highlighting the company’s commitment to shareholder returns.
• Dividend Policy: A new annual dividend policy was adopted, targeting allocation of no less than 50% of adjusted net income for dividends and share repurchases for the next three years (2026-2028), subject to Board discretion and market conditions. This policy could significantly impact future share price through enhanced capital returns.
• Share Repurchase Program: The Board extended and expanded the share repurchase authorization to US\$400 million through August 2027, signaling confidence in long-term growth.

Business Review and Outlook

• Strategic Focus: Continued investment in AI technology, expansion of user base, and targeting structural incremental markets. Overseas expansion is also a priority, with plans to deepen service offerings and accelerate user growth.
• Shareholder Returns: The company aims to increase returns to shareholders, sharing the benefits of high-quality development.

Balance Sheet and Capital Structure

• Strong Financial Position: As of December 31, 2025, cash and cash equivalents stood at RMB 4.1 billion, with no interest-bearing borrowings (gearing ratio nil), indicating robust balance sheet strength.
• Reserves: Distributable reserves of RMB 1.2 billion provide ample room for further dividends or strategic investments.
• No Material Acquisitions or Disposals: No significant investments or asset pledges during the year. The company is actively monitoring foreign exchange risks but has not hedged USD exposures yet.

Corporate Governance and Risk Factors

• Contractual Arrangements: The company operates in China via a VIE structure, exposing it to regulatory risks. Any change in PRC law or enforcement could materially affect operations and share value.
• Principal Risks: Risks include technology adoption, brand management, competition, AI deployment, data protection and cybersecurity, geopolitical tensions (US-China), and PRC regulatory uncertainties. These risks could impact business performance and share price.
• Audit and Compliance: The annual report confirms compliance with Hong Kong Listing Rules and Sarbanes-Oxley Act, and effective risk management and internal controls.
• WVR Structure: Weighted voting rights (WVR) held by Mr. Zhao give him significant control. Investors should note potential governance risks and limited influence over corporate matters.

Share Incentive Plans and Employee Development

• Talent Investment: Ongoing share incentive plans and competitive remuneration packages to attract and retain talent. Over 51.5 million shares remain available for future grants under the Post-IPO Share Scheme.
• Employee Training: Comprehensive training programs and insurance coverage to support employee development and well-being.

Major Customers and Suppliers

• Customer Concentration: The five largest customers accounted for less than 1% of total revenue, indicating broad-based revenue streams.
• Supplier Concentration: The five largest suppliers accounted for 43% of total purchases, with the largest at 26%—potential supply chain risk worth monitoring.

Other Notable Points

• Shareholder Communication: Enhanced investor relations through regular meetings and transparent disclosure.
• ESG Commitment: Strong focus on social responsibility, environmental protection, and employee welfare, detailed in the ESG Report.
• Use of Proceeds: HK\$2.2 billion raised in the share offer remains unutilized, earmarked for technology, new business initiatives, acquisitions, and working capital, which could fuel future growth and impact valuation.
• Legal and Regulatory Compliance: No material litigation or regulatory issues reported.

Potential Share Price Drivers

• Dividend and Repurchase Policy: Commitment to returning at least 50% of adjusted net income to shareholders could make the stock attractive for income investors and support share price.
• AI Investment: Accelerated AI integration and overseas expansion may drive future revenue and margin growth, positively impacting valuation if execution is successful.
• Regulatory Risks: VIE structure, PRC laws, and geopolitical tensions remain significant uncertainties; any adverse development could materially affect share value.
• Capital Actions: Large repurchase program and strong cash position signal management confidence and support for share price.

Disclaimer

This article is prepared for informational purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any securities. Readers should review the full annual report and consult their own financial advisors before making investment decisions. The information provided is based on publicly available sources and may be subject to change or interpretation.

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