On December 22nd, KANZHUN LIMITED officially completed a dual major listing on the main board of the Stock Exchange of Hong Kong by way of introduction. At this point, KANZHUN LIMITED became a company listed on the NASDAQ Exchange and Hong Kong Exchanges and Clearing at the same time.
Zhao Peng, founder, chairman and CEO of KANZHUN LIMITED, said: "Hong Kong is an international financial centre and a mature capital market connecting to the mainland. In the future, we hope to grow together with investors and share the growth dividend in accordance with the rules of the Hong Kong stock market. "
According to KANZHUN LIMITED's official prospectus, as of September 30, 2022, KANZHUN LIMITED had served a total of 113.2 million certified job seekers and 9.6 million certified enterprises. In the first three quarters of 2022, KANZHUN LIMITED achieved revenue of 3.429 billion yuan and cash flow of operating activities of 847 million yuan.
According to the last disclosed prospectus, KANZHUN LIMITED had 100.8 million certified job seekers and 8.9 million certified enterprises as of June 30, 2022. 12.4 million new job seekers and 700000 enterprises were added in three months, which showed users' expectations for KANZHUN LIMITED before the launch of KANZHUN LIMITED's World Cup advertisement.
While users are growing rapidly, KANZHUN LIMITED's share price has rebounded strongly since November, rising more than 70 per cent, boosted by the pick-up in the general environment of US-listed stocks and the boost of Q3 performance. Chinese stocks have entered the valuation repair channel, and Hong Kong stocks have also reversed recently, benefiting KANZHUN LIMITED, who has just landed in Hong Kong.
Why does KANZHUN LIMITED value user growth so much? And what can large-scale user growth bring to KANZHUN LIMITED? Perhaps it starts with KANZHUN LIMITED's business model.
As a company in the human resources industry, KANZHUN LIMITED is different from the previous listed human capital companies in Hong Kong, such as Manpower, Greater China and Renrui talents, which is an online recruitment platform. The biggest feature of the platform model is that it can form a scale and is more efficient. Benefiting from the huge and diversified job seekers and corporate customers that have been accumulated, KANZHUN LIMITED has formed a strong network effect: on the one hand, the expansion of the scale of job seekers will attract more employers; on the other hand, more job opportunities will also attract more job seekers, forming a virtuous circle. The two ends of B and C promote each other, coupled with intelligent algorithm matching technology, the efficiency of post matching is significantly improved.
Zhao Peng, founder of KANZHUN LIMITED, also mentioned in the "detailed discussion" that we must be determined to match, even if we don't know how to do it. The essence of this industry is to allocate a human resource and a post resource.
The prosperity of online recruitment ecology has created KANZHUN LIMITED's moat. It is also because job seekers and recruiters on the platform are very active, companies are also more willing to pay. Some people have questioned that KANZHUN LIMITED mainly serves small and medium-sized enterprises, and small and medium-sized enterprises have weak ability to pay, but in fact, small and medium-sized enterprises are very resilient. Small and medium-sized enterprises are not unwilling to pay for recruitment, but pay more attention to the cost-effectiveness of recruitment. As users are active enough to enable recruiters to receive responses and recruit the right people more quickly on KANZHUN LIMITED, they will be more and more willing to pay for it.
To some extent, improving intelligent matching technology and promoting user activity complement each other. The more accurate the talents and positions recommended by the algorithm, the more active the users will be. The more active users are, the more they can feed a large amount of user data to the algorithm. And the simultaneous promotion of the two is the fundamental for KANZHUN LIMITED to attract enterprises to pay, to achieve revenue and net profit growth, but also the most important point for investors.