20-F: Kanzhun Limited Reports Strong Revenue Growth in 2025

Kanzhun Limited announced its 2025 annual results, showcasing a 12.4% increase in revenue driven by a growing base of paid enterprise customers.

Summary

• Kanzhun Limited reported revenues of RMB 8.3 billion (US$1.2 billion) for the year ended December 31, 2025, marking a 12.4% increase from 2024.
• The growth was primarily driven by an increase in paid enterprise customers, which grew by 11.5% to 6.8 million in 2025.
• Income from operations saw a significant increase of 110.1% to RMB 2.5 billion (US$352.4 million) due to improved operating efficiency and reduced sales and marketing expenses.
• Net income rose by 71.7% to RMB 2.7 billion (US$384.7 million) in 2025.
• The company's average MAU grew to 60.7 million in 2025, indicating continued user engagement.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this filing positively due to strong revenue growth, significant improvements in profitability, and effective cost management, indicating a healthy and growing business.

Positives

• Revenue increased by 12.4% to RMB 8.3 billion (US$1.2 billion) in 2025.
• Income from operations increased by 110.1% to RMB 2.5 billion (US$352.4 million).
• Net income increased by 71.7% to RMB 2.7 billion (US$384.7 million).
• Paid enterprise customers grew by 11.5% to 6.8 million.
• Average MAU increased to 60.7 million.
• Sales and marketing expenses decreased by 18.3% due to improved efficiency.
• Research and development expenses decreased by 8.9% while still supporting innovation.
• The company declared an annual cash dividend of US$0.168 per ADS, totaling approximately US$77.9 million.

Negatives

• Revenues from other services (paid value-added services for job seekers) decreased by 12.7% to RMB 74.8 million (US$10.7 million) due to feature optimization.
• General and administrative expenses increased by 9.6% to RMB 1.2 billion (US$171.5 million) due to an impairment of intangible assets.
• Income tax expenses increased by 91.9% to RMB 509.7 million (US$72.9 million), partly due to Pillar Two rules and withholding tax.

Risks

• The company's reliance on contractual arrangements with its VIE, which may not be as effective as direct ownership in providing operational control.
• Uncertainties in the interpretation and enforcement of PRC laws and regulations, which could adversely affect the company.
• Potential for increased regulatory scrutiny and adverse impacts on business operations and share price due to heightened tensions in international relations, particularly between the United States and China.
• The company's business is subject to complex and evolving laws and regulations in China on data protection and cybersecurity, and any failure to comply could result in penalties.
• The company's reliance on app stores for distribution, which could suspend or terminate user access to its mobile applications.
• Potential for significant fluctuations in the trading price of ADSs and ordinary shares due to market and industry factors, as well as company-specific events.
• The dual-class voting structure limits shareholders' ability to influence corporate matters and could discourage change of control transactions.
• The company may not be able to adequately protect its intellectual property, which could make it less competitive.

Future Outlook

The company expects to continue its growth trajectory, driven by its expanding user base, technological advancements in AI, and a focus on improving user experience. Management is committed to optimizing operating efficiency and exploring new service offerings to further enhance recruitment solutions for both job seekers and enterprises.

Management Comments

• The company's average MAU grew by 14.5% to 60.7 million in 2025, indicating continued user engagement.
• The company's income from operations increased by 110.1% from RMB 1.2 billion in 2024 to RMB 2.5 billion (US$352.4 million) in 2025.
• The company's net income increased by 71.7% from RMB 1.6 billion in 2024 to RMB 2.7 billion (US$384.7 million) in 2025.
• The company's sales and marketing expenses decreased by 18.3% from RMB 2.1 billion in 2024 to RMB 1.7 billion (US$242.1 million) in 2025, primarily due to decreases in advertising and marketing expenses, employee-related expenses and rental expenses.
• The company's research and development expenses decreased by 8.9% from RMB 1.8 billion in 2024 to RMB 1.7 billion (US$236.5 million) in 2025, primarily due to a decrease in employee-related expenses.

Industry Context

StockSavvy.ai notes that Kanzhun Limited's performance aligns with the broader trend of digitalization and increasing reliance on online platforms for recruitment services in China. The company's focus on AI and data-driven matching is a key differentiator in a competitive market, positioning it to capitalize on the growing demand for efficient and precise talent acquisition solutions.

Comparison to Industry Standards

• Kanzhun Limited's revenue growth of 12.4% in 2025 outpaces the general economic growth in China, indicating strong performance within the online recruitment sector.
• The company's operating income margin of approximately 29.8% in 2025 is robust, reflecting efficient operations and cost management, which is generally higher than many industry peers who are still investing heavily in user acquisition.
• The decrease in sales and marketing expenses as a percentage of revenue (from 28.2% in 2024 to 20.5% in 2025) suggests improving customer acquisition cost efficiency, a positive sign compared to competitors who may still be spending aggressively on marketing.
• The company's investment in R&D, despite a slight decrease in absolute terms, remains substantial at approximately 20% of revenue, indicating a commitment to technological innovation comparable to leading global HR tech firms.

Management Changes

Corporate Governance

Legal Proceedings

• The company and certain officers/directors were defendants in a putative securities class action (Bell v. Kanzhun Limited et al). The case was settled in April 2023 for US$2.25 million, with final court approval granted and the case terminated.
• The company is subject to legal proceedings in the ordinary course of business, but no material liabilities were recorded as of December 31, 2025.

Related Party Transactions

• Purchases of cloud services, online payment platform clearing services, and other services from Tencent Holdings Limited (a major beneficial owner) amounted to RMB 25.8 million (US$3.7 million) in 2025.
• Amounts due from Tencent Group's online payment platform were RMB 8.7 million as of December 31, 2025.

Stakeholder Impact

• Shareholders benefit from strong revenue growth and profitability, supported by an annual dividend policy and share repurchase programs.
• Job seekers benefit from an enhanced platform experience, AI-powered recommendations, and improved user verification processes.
• Enterprise users benefit from efficient recruitment tools, accurate matching, and a growing pool of qualified candidates.
• Employees benefit from competitive compensation, share-based awards, and a focus on career development and well-being.
• The company's commitment to ESG initiatives, including social responsibility and environmental preservation, positively impacts the community and stakeholders.

Next Steps

• Continue to focus on improving user experience and expanding the user base.
• Further enhance big data technology capabilities to power the recommendation engine.
• Convert more free enterprise users to paid enterprise customers.
• Introduce new service offerings to existing paid enterprise customers.
• Continue to invest in AI technologies and proprietary large language models.
• Monitor and manage sales and marketing expenses for cost-effectiveness.
• Continue to comply with evolving cybersecurity and data protection laws and regulations.
• Implement the annual dividend policy and share repurchase programs.

Key Dates

Recommendation

While Kanzhun Limited demonstrated strong financial performance in 2025 with significant revenue growth and improved profitability, the company faces ongoing risks related to regulatory changes in China, competition, and the complexities of its VIE structure. The company's ability to maintain its growth trajectory and navigate these risks will be crucial. Given the mixed outlook of strong operational performance offset by regulatory and geopolitical uncertainties, a 'hold' recommendation is appropriate, with a close watch on future regulatory developments and competitive dynamics.

Keywords

Kanzhun Limited, BOSS Zhipin, online recruitment, China, job seekers, enterprise users, AI in recruitment, Form 20-F, annual report, financial results