Kanzhun profit jumps 173% as BOSS Zhipin declares US$230 million dividend

Kanzhun reported Q2 net income of RMB1.94 billion, up 173.1% year over year, as revenue rose 14.1% to RMB2.4 billion.

"The results reflect accelerating revenue and profit growth, with monthly active users surpassing 70 million for the first time," Jonathan Peng Zhao, founder and chief executive officer at Kanzhun, said.

Operating income rose 32.6% to RMB863.2 million, with operating margin expanding five percentage points. Adjusted net income, excluding share-based compensation and investee gains, grew 9.4% to RMB1.03 billion. Paid enterprise customers over the trailing 12 months rose 10.8% to 7.2 million, while average monthly active users climbed 10.4% to 70.2 million.

The board approved an annual dividend of US$0.510 per American depositary share, about US$230 million, funded from surplus cash. Combined with over US$300 million of buybacks completed year-to-date, total shareholder returns through dividends and repurchases exceed 100% of prior-year adjusted net income.

Net income was boosted by RMB1.47 billion of investment income from fair-value changes in an investee that completed an initial public offering in January. Income tax expenses jumped to RMB550.3 million from RMB97.1 million, reflecting tax on the investment gain, withholding tax, and a Pillar Two top-up tax. Net cash from operating activities fell 10.2% to RMB944.8 million on higher advertising and tax payments. Basic net income per ADS reached RMB4.28, up from RMB1.62 a year earlier.

Online recruitment revenue rose 14.7% to RMB2.38 billion, while revenue from other services, mainly paid job-seeker features, fell to RMB14.6 million from RMB24.8 million after the company simplified those offerings. Cash, cash equivalents, short-term time deposits and short-term investments totaled RMB18.8 billion at June 30.

For the third quarter, Kanzhun expects revenue between RMB2.41 billion and RMB2.50 billion, implying growth of 11.4% to 15.6% year over year. The company also plans to allocate no less than 50% of adjusted net income to dividends and buybacks for each of the next three years, and expanded its repurchase authorization to US$400 million through August 28, 2027.

The dividend, payable October 6 for ordinary shares and around October 14 for ADSs, marks Kanzhun's first annual payout under the policy. Shares of BOSS Zhipin-W (02076.HK) traded down 4.6% intraday on the Hong Kong exchange. Investors will watch the third-quarter results for whether the AI-driven recruitment push sustains margin gains.

This article is for informational purposes only and does not constitute investment advice.