Tongdao Liepin Group

Please stand by. We are about to begin. Good day and welcome to the Tangdao Liepin Group 2025 Annual Result Conference Call. Today's call is being recorded. At this time, I'd like to turn the conference over to Catherine Zhang. Please go ahead.

Catherine Zhang Okay. Thank you, Operator. Hi, everyone. Thank you for joining us on today's conference call to discuss our results for the full year 2025. The company's financial and operating results were published and were posted on the company's IR website at ir.liepin.com. On today's call, Mr. Rick Tsai, company's chairman and CEO, will kick off with our business operations and highlights. After that, Mr. Tim Thien will continue with detailed financial review. After prepared remarks, we will be able to answer your questions. All remarks will be in Chinese followed by English translation. Before we continue, I would like to remind you that this call may contain forward-looking statements under the safe harbor provisions. Those statements are based on management's current expectations and current market and operating conditions, and related to events that involve no or are no risks, uncertainties, and other factors. all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Future information regarding this and other risks, uncertainties, and factors is included in the company's filings with the Hong Kong Stock Exchange. The company does not undertake any obligations to update any forward-looking statements as a result of new information, future events, or otherwise except as required on the rule. Please note that certain financial measures that we use on this core are expressed on a non-GAAP basis. Our GAAP results and the reconciliation of GAAP to non-GAAP measures can be found in our earnings class release. I will now turn the floor over to our chairman and CEO, Rick. Please go ahead, sir.

Hello, investors. I would like to welcome you all to the 2025 annual Liepin Group Conference. On behalf of the Group, I would like to express my sincere gratitude to all the investors who have supported and trusted us for a long time. In the year of 2025, we faced a profound change in the macroeconomic structure adjustment and employment market. We firmly surround the group with the value of growth, and we are on the front line of AI. Under the drive of the dual-wheel drive of AI technology department and innovation operation, we have come to the turning point of business. The revenue achieved by our group this year is RMB119.86 billion, which is 4.6% lower than before. But from the previous return data, the cash return of the company in the second half of the year has achieved a direct return of the same level, showing a very low speed signal. The comprehensive interest rate increase of Xuanyuan Group increased to 76.6% and continued to rise for two consecutive years. After the income is confirmed and the interest income is reduced, the net profit of the company has been adjusted to 2.06 billion yuan, which is the same as the decline in the last quarter. Welcome to Tao Liepin Group's 20.5 Annual Results Conference Call.

On behalf of the group, I would like to express our sincere gratitude to all our investors for your step-by-step support and trust. In 2025, amidst the macroeconomic structural adjustment and the profound changes in the job market, the group firmly adhered to the strategic theme of deepened value, willing to invest in a business inflation point, driven by AI technology enablement, and the refined operations. For the full year, total revenue was RMB 1.96 billion, down 4.6% down year. However, looking at leading cash billing indicators, cash billings turned from decline to growth in the second half, showing positive signs of recovery. Growth margin improved to 76.6%, making the second consecutive year of increase. on the profit fund. Due to lagging revenue recognition and the lower interest income, non-GAAP operating profit was RMB 206 million, down 10.2% year-on-year, and non-GAAP net profit attributable to shareholders was RMB 142 million, down 16.6% year-on-year. Excluding other incomes such as interest and government grants, non-GAAP operating profit actually improved significantly, up 24.7% year-on-year.

In 2025, the Zhaoding market has seen a rapid recovery, and AI is one of the two key factors. The rapid growth of AI-driven, innovative and leading structural needs is becoming more and more prominent in the tech industry. Since the third quarter of 2025, The number of new jobs on the Liepin platform is the same as the number of direct transfers. This growth trend is further accelerated in the fourth quarter. All of the first-level industries on the platform are new. In the second half of the year, it is the same as last year's military implementation. Among them, car finance, high-end manufacturing, IT, Internet of Things, advertising, media, etc. The numbers are very bright. The second-level industry innovation position such as hardware, hardware, vehicle inspection, manufacturing of parts, etc. is more than 45% compared to the first-level industry. In December, we also saw that there was a huge demand for knowledge in the field of aerospace, geoscience, AI, and other hot spots. This shows the effect of our country's economic growth and industrial structure upgrade. It also reflects that after the transition period,

The recruitment market in 2025 must define two major trends, structural recovery and the reshaping impact of AI. Structurally driven demand, powered by technology and innovation, grew rapidly, with multiple stronger technology audiences, trends, and job types. Since the third quarter of 2025, New job posting on Liepin's platform turned from decline to growth year on year, a trend that accelerated from within the fourth quarter. All major industries stabilized in the second half with sectors such as automotive, finance, advanced manufacturing, IT and internet, and advertising and media showing strong growth. Key secondary industries including insurance, AI, smart hardware, and automotive manufacturing and parts, the new job posting increased by over 45% year-on-year. In December, we witnessed a surge in job demand in hot areas such as aerospace, embodied intelligence, and AI-related fields. These trends indicate the effectiveness of China's economic recovery and industrial upgrades, and reflect that after periods of adjustment, The mid-to-high-end recruitment market is in turn a critical phase of bottoming out and recovery.

The AI technology's breakthrough development is in a deep rejuvenation recruitment market. In the 2025 human resources supply crisis report, we defined the three key structural goals of AI human resources. Open AI social security management human resources, AI technology human resources, and AI-supported mobile human resources. It has been recognized as one of the largest applications of AI-adapted talent as the main source of employment. The value of AI-adapted talent continues to rise, so it is expected that in recent years AI talent will be listed in AI recruitment, and the quality of AI recruitment will greatly improve. We are very happy to see that 81.8% of the number of people who sign up for AI-adapted talent in the annual platform In the spring of 1986, the data of the first week of the opening of the company increased to 139.7% among active employees. At the same time, more and more recruitment teams are using AI recruitment to recruit. According to the Chinese People's Bank of China report in Liepin in 2025, 81% of companies have used AI tools in the entire management process of human resources. The breakthrough development of AI technology is profoundly reshaping the recruitment market. Liepin 2025 Talent Supply and Demand Trend Report defines a triangular structure model for AI talent.

covering management talent with an AI-oriented mindset, AI technical talent, and application-oriented talent empowered by AI. Among this, application-oriented talent constitutes the largest group becoming the main driver of employment, with the market value of AI composite talent continuing to rise. Aligning with this trend, Liepin has firmly embedded this a perception that AI talent on Liepin AI recruitment with Liepin in users' minds. We are pleased to see that the number of individuals on our platform who listed AI skills on their resume increased by 81.8% year-on-year. In the first week following the 2026 Spring Festival, this figure surged by 139.7% year-on-year among active talent. Meanwhile, more employers are using AI to empower recruitment, according to the Liepin 2021 China AI Talent Singularity Report. 81% of enterprises have adopted AI tools across their talent management process. In the first week after the holiday, new job posting required AI skills increased by 215.6% year-on-year. offering an average salary 25% higher than positions without such requirements.

At the end of the year, the number of companies verified by the platform reached 1,474,000, which increased by 3.2% in comparison. The number of non-commercial companies directly transferred to 720,000, which increased by 5.3% in comparison. . . . . . . . . . . . . . . .

Amid this rapid wave of AI adoption, we focused on driving customer growth and enhancing monetization through a rich and user-friendly portfolio of AI products. By year-end, verified enterprise customers reached 1.474 million, up 3.2% year-on-year, and the number of paying enterprise customers reversed decline. growing to 72,000, up 5.3% year-on-year. On technical foundation, we maintain a strategy of synergizing general purpose and industry-specialized capabilities. While integrating mainstream open-source large-language models, we continuously strengthen ourselves about the vertical model Tongda Hui Cai, building reinforcement learning capabilities based on our user feedback and behavior data, creating an automated close-look from data collection, review, feedback to model iteration. Through this analysis and the semantic understanding of recruitment requirements combined with domain-specific data training, we achieved integrative operates in job-matching capabilities and optimizes the overall model cost. During the year, our large-range model agent application technology was branded with multiple national patents. We have now built an AI product metric fully-compensated VHC tripartite ecosystem. Capability from AI products surged from RMB 10 million in 2024 to over 100 million in 2025, a nearly tenfold increase year-on-year. This marks a significant transition where our AI application capabilities have evolved from functional innovation into a sustainable revenue growth engine, laying a solid foundation for future large-scale expansion.

To be more specific, our AI account is a core product that drives commercialization of revenue expansion. The annual customer coverage of AI accounts has reached 93% and has been registered as an AI port account in the fourth quarter. The new AI light search function automatically generates accurate search keywords to help high-efficiency digging and reintegration of new talents and professional recruiters in the sales department. The AI account and intended candidate searching are the core products for having commercialized station revenue growth.

AI account customer coverage reached 93% by year-end, and we upgraded to the AI Pro account in the fourth quarter. Invading the new AI-assisted search feature, which automatically generates precise search keywords to help enterprises efficiently discover composite talent and empower professional recruiters. The recruitment AI agent intended candidate searching now operates with full-process AI automation. Currently, 65% of trial orders can be fulfilled with interested candidates within two hours, and the monthly receipt initiation rate among customers increased to 66%. consistently validating the project's strong fitness and the practical value.

AI interview products are multi-layered. The number of interviews per year is growing rapidly, and it is continuing to grow towards the integration of human-to-physicist comprehensive solutions. Western support partners AIAgent, Tora, and Sikidu are all online. With the development of a deep optimization of the AI interview system, AIAgent's deep optimization of the AI interview system and deep optimization of the AI interview function, has increased the availability and employment of C-end users. The number of personal users registered in the platform has exceeded 160 million in the year, which is 10% of the total growth. The number of active users in the annual army has increased by 15.3% in the same year. H-drama has also upgraded the 2.0 version of AIA, which is an AIA-related multi-task system, to become a core work infrastructure for internal, external, and delivery teams. Our AI interviewing process saw significant interview volume growth and continues to expand towards a comprehensive talent assessment system. On the candidate side, the AI career partner Dora was fully launched in the fourth quarter.

leveraging the perspective of a senior headhunter, directly optimize resumes, intelligently recommends positions, and incorporates mock interview features, significantly improving candidate engagement and job seeking experience. During the year, registered individual users surpassed 116 million, up 10% year-on-year. and the average MAU grew 15.3% year-on-year. On the 500 side, the AI agent delivery assistant Xia Yi embedded within the Zhuoli Assistant was upgraded to version 2.0, becoming a core operational infrastructure for internal and external delivery teams. As of the reporting period, verified 500s reached around 225,000 up 4.7% year-on-year, and have hundreds contacts with individual users grew 24.2%.

Since then, Liepin has built up an all-round AI product system that covers recruitment, interview, job hunting, and head-to-head delivery. In addition to the eco-friendly ecosystem of BHC, it provides multi-dimensional monitoring and support for future business growth. In 2025, we will focus on the user expansion of the Liepin business version, The growth of AI products has effectively boosted the freshness and renewal of customers. In 2015, we had a growth of more than 60% in the number of new customers. This quickly led to the return of cash in the second half of the year. At the same time, we dug deep into high-end users through AI technology to improve the efficiency of the business. With this, Liepin has built a comprehensive AI product matrix covering the entire process of recruitment, interviewing, job seeking, and headhunter delivery, creating a virtuous cycle within the BHC Tripartite ecosystem

and providing multi-dimensional support for the future growth. In 2025, by focusing on our user expansion for Liepin Pro and leveraging our rich AI product portfolio, we effectively boosted both new customer acquisition and retention rates. New subscriptions for Liepin Pro stamp package increased by over 60% year-on-year. quickly driving capital in for recruitment business from decline to growth in the second half. Concurrently, by leveraging AI to empower sales teams, we've deepened exploration of high potential users and improved sales lead efficiency. This results in a 286% increase in the customer reach to collection conversion rate at year end compared to the first half of the year. Coupled with organizational flattening and deeper cost control and efficiency measures, our self-personnel efficiency achieved clear stabilization and subsequent growth.

We will closely grasp the opportunities of this history, and deepen the strategic focus of the industry. By perfecting the deep impact on the core needs of customers, the deep impact on the core needs of customers, the deep impact on the core needs of customers, the deep impact on the core needs of customers, the deep impact on the core needs . . . . . . 2026

marks the start of the 15th five-year planned period with emerging industry rising rapidly and structural talent opportunities continuing to unfold. We will see these historical opportunities deeply cultivate strategically important industries and leverage our comprehensive DHCAI product metrics to address core customer needs, enhance product adoption, and extend our user base. On the talent front, we will broadly cover high potential composite talent in emerging fields to solidify the foundation of our platform ecosystem. On the technology front, we will continue to use AI as our core engine, deepening its research and application within recruitment. Automatizationally, we will further strengthen our management structure enhance organizational effectiveness and build a team of virtual professional skills in both business and AI, enabling broader market penetration. At the group level, we will leverage policy support and industry development opportunities to connect the supply and demand cycle for human resources. Strengthen our rail position in lead-to-high-end white-collar recruitment, extend our generational lead in AI-driven performance, while exploring innovative models for technology-driven labor in urban service blue-collar sectors, thereby solidifying our diversified comprehensive service capabilities.

In terms of general feedback, we use the support of high-level government officials, We will continue to explore the diversified shareholder return plan. Finally, regarding shareholder returns, we have always valued the trust and support of our investors. In 2025, through Special Dividends and Share Bank Act,

The total annual shareholder return amounted to HKD $264 million. This year, we are continuing our dividend distribution plan, proposing a dividend of 20.10 shares, representing a payout of 53% of non-debt net profit attributable to shareholders. Going forward, we will continue to explore the entire shareholder return program consistently enhancing shareholder value on the foundation of stable operations and creating long-term value for our employees, customers, and shareholders. That concludes my presentation remarks. Next, I will turn the floor over to our CFO to walk you through our 2025 financial performance in detail. Thank you all.

Thank you. I would like to thank everyone for attending today's meeting. This year and the previous year, we have felt that there is still some pressure in the payment market. However, the situation in the second half of 2020 has also improved. The number of platform sales has increased from the first quarter of the fourth quarter to the first quarter of the third quarter. In 2020, the company achieved revenue 19.9 billion yuan, a decline of 4.6%. The decline is more than 7 years ago. According to the business, the main reason for the decline in income is the supply of human resources and other human resources service business. When the business achieved a gain of 10.5 billion yuan, the decline was 6.2%. Mainly due to the decline in 2020 and 2025, the decline brought the effect of the decline. Thank you, Rick and Catherine. Once again, thank you everyone for joining our Earning Relief Conference Call.

In the first half of this year, we experienced this system's pressures in the recruitment market. However, conditions improved in the second half. The number of new job postings on our platform bottomed out and started growing from the third quarter onwards. While tax returns turned positive year on year within the year. For 2025, the company recorded revenue of RMB 1.99 billion. were presenting a year-on-year decrease of 4.6% with a decline significantly narrowing compared with previous periods. Breaking it down by structure, the revenue decline was mainly attributable to talent recruitment and other human resource services to business users. This segment generated revenues of RMB 1.65 billion, down 6.2% year-on-year. This was primarily due to the deferred impact from reduced cash flow in 2024 and the first half of 2025, coupled with the overall incomplete recovery of the mid- to high-end recruitment market throughout 2025. In contrast, revenue from the talent and development services to individual users contained a steady growth, Building on the high base last year, this settlement revenue increased by 5% year-on-year to approximately RMB$330 million.

In 2020, Liepin Group's profit and loss ratio was stable. The profit and loss ratio improved significantly compared to last year by 0.6% to 76.6%. This is mainly due to the increase in AI product revenue. The company continues to focus on the increase in internal capital. The overall operating cost of the company is about 14.5 billion yuan. The absolute amount is 5.3%. The overall operating cost is 72.9%. Last year, it dropped 0.6%. On the crop and the expense side, Liepin Group maintained stable growth profit level in 2025, with growth margin improving by 0.6% year-on-year to 76.6%.

This was mainly driven by an increased revenue contribution from the echo that optimized the control over low margin products and enhanced efficiency of the delivery team. In 2025, the company continued to focus on internal cost reduction and efficiency improvement. The group's total operating expenses for the year amounted to approximately RMB 1.45 billion. a decrease of 5.3% in absolute terms year-on-year, with their consult date operating expense ratio declining by 0.6 percentage points to 72.9%. self and marketing expenses totaled R&D 897 million for the year, down 1.3% year-on-year, mainly due to straight-line labor costs and the rental savings.

In 2025, the year-on-year development cost was 2.7 billion yuan, down by 10.4%. The development cost rate was 13.7%, down by 0.9%. . . . . . . . . . .

Perception Development Expenses for R&D 272 million, a yearly decrease of 10.4% with the R&D expense ratio falling by 0.9 percentage points to 13.7%. This deficiency stems from the widespread adoption of AI tools and the optimized adjustments to the product and R&D optimizational structure. general and administrative expenses decreased by 11.6% year-on-year to R&D $279 million, with the G&A expense ratio dropping by 1.2% to 14%, primarily driven by improved management efficiency from organizational risk offering. Going forward, we will further deepen FLABS management, enhance design management capabilities and leverage AI to boost organizational or product security.

利润端 全年公司营业利润等和贵母亲利润 分别为1.66亿元和1.03亿元 分别同比下降了13.5%和23.1% 主要受到理财收益和汇币损益 较去年明显下降的影响 加回股份支出和营收度 产生的无形资产开销后 . . .

In terms of profitability, the company record recorded annual operating profit and net profit of RMB 166 million and RMB 103 million, representing a year-on-year decline of 13.5% and 23.1% respectively. This was mainly affected by a significant drop in interest income and foreign exchange gain or losses compared to last year. After adjusting for share-based compensation and amortization of intangible assets arising from acquisitions, non-GAAP operating profit amounted to RMB 206 million, down 10.2% year-on-year. Non-GAAP operating profit amounted to equity shareholders was RMB 142 million, a year-on-year decrease of 16.6%. including the impact of other incomes, annual adjusted operating profit increased by 24.7% year-on-year, reflecting further improvements in the quality of the company's profitability.

The current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current current The company's future development, management, and expansion of the new market, and strengthening and supporting returns, etc., have provided a good amount of financial support.

In terms of cash flow, the group's net cash inflow from operating activities reached around $229 million this year, a substantial increase compared with last year, many affected by the combined impact of timing differences between revenue recognition and cash collection, enhanced the supply chain bargaining power, and optimized the cash flow maximum. As of December 31st, In 2025, the company's total cash reserves exceeded RMB 2.6 billion, laying a solid financial foundation for future business development, exploration of new products and markets, and enhanced shareholder returns.

In terms of general information, the company's total revenue and return in 2025 amounted to 2.5 billion yuan. In the next three years, we will reduce the year-to-year discount by 50% based on the net profit of the gold adjustment. In China, the Group's share price has reached 20,000 yuan per year. The total share price has reached 63%. The total share price is also 50% higher than what we promised to the market. According to the latest market conditions, the share price is about 7%. The company will continue to implement a multi-layered stock market plan for our stock market system. Regarding shareholder returns, the group's total dividends and share buybacks reached HKD 254 billion in 2025, with the total shareholder returns accounted for 137% of the 2024 non-GAAP

net profit attributable to equity shareholders and a consolidated annual shareholder return rate of 12.4%. For the next three years, we plan to distribute year-end dividends of no less than 50% of non-debt net profit attributable to equity shareholders of the company. This Friday, the Group's Board of Directors has booked an annual final dividend of 20 Hong Kong cents per share, representing a payout ratio of 63, exceeding our market commitment 50%. Based on the latest market presentation, the dividend yield stands at around 7%. Moving forward, the company will continue to refine its shareholder return mechanism, adopt diversified return plans, and share development dividends with all shareholders. This concludes my presentation. Thank you all again. Operator, we can now open the floor to Q&A.

Certainly. If you would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to repair equipment. Again, press star 1 to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. We will take our first question from Thomas Cheung. I'm sorry, I'll go first to join in with CICC.

Liepin Group, good evening. I have two questions for you. One is about AI. Can you share with us how you see the impact of AI on the overall high-end recruitment market? Thank you for taking my question. Lin Gang from CSCC. I have two questions. One is regarding AI. so how does management view AI impact on the total addressable market for the material high-end recruitment market also there's been a lot of discussions about AI agents do you see them potentially disrupting or replacing traditional recruitment platforms what's your strategy to navigate these challenges And just a quick photo about the financials. Do you have any specific guidance for revenue and profit in 2026? Thanks.

Let me answer. Thank you very much for your question. I am also interested in the market discussion on AI technology labor market. In my opinion, every technological revolution will bring the reconstruction of the position structure. The labor market in the AI era . .

I will take this question. Thank you for your question. We have also noticed that the market discussion about AI replacing human labor. In our view, every tech revolution restructures the job market. The labor market in the AI era will gradually evolve into an hourglass structure. Data will keep rising for two groups, high-end talent in innovation and the strategic decision-making at the top. and rules relying on intensive personal interaction and on-site operation at the bottom. By contrast, key tier entry-level white-collar positions featuring standardized workflows and low added value and programmable tasks will face long-term pressure and gradual replacement risk.

AIPath's platform will promote a large number of new jobs and industries. . . . . ah ah The popularization of AI will spawn new industries and rules.

Positions such as AI trainers and AI architects are emerging fast. All demand for professionals in automated driving, AI-driven new draft R&D, and other fields is exploding. competition for high-end cross-functional talent in the industry is becoming increasing professionals. And further consolidating our core competitive mode, especially our unique advantage of hundreds of millions of premium talent resources. while maintaining our edge in the mutual high-end bi-color recruitment market and extending our leading position in AI recruitment. We will also integrate full-time, part-time, outsourced recruitment and human-machine collaboration models for urban service blue-collar rules and explore innovation business model for tech-driven blue-collar series with our all-new brand Xin Chao Ren.

AI agent This is a well-established advantage and is an AI ability. The other side is hard. And that kind of product homogenization, lack of innovation and change of service. It is easy to face the risk of deterioration and change in the system. In the future, we will continue to upgrade the data in this field. To build a new industry. So this is a trend of failure. Provide a more advantageous service for AI-compatible people.

Regarding concerns over whether AI agents will replace traditional recruitment platform, I think that AI will drive depreciation rather than full scale disruption in software and HR services. that's one with exclusive industry data keeping type version into corporate process and strong participation in client talent decision making to retain solid advantages. In contrast, service provider with homogeneous products will face risk of marginalization. Going forward, we will deepen our industry data, and follow a technological change deliver better services for AI talent, better meet enterprise talent demand, and enable accurate talent matching for business.

第二个问题,你提到是否被二六年收入和利润的质疑,我想请我们Zenbo Team来回答一下。 好的,Rick。 关于这个问题,就我们之前的分享里面已经提到了,因为我们二五年现金回馆,

in the second half of the year, so it also led to a drop in cash refunds all year round. As for the first quarter of 2016, we are also very happy to see the growth trend continue. Basically, we expect that the cash refunds of the first quarter of 2016 will also maintain a growth rate. ah ah

For the second question, I will answer by team. I will take this question. As I mentioned, our cash billing turned positive year over year in the second half of 2025, having four-year cash billing to stop declining and stabilize. In Q1 2026, we are pleased to see this growth trend continually. On this basis, leads back to full-year cash billing in 2026 to maintain a mid-single-digit growth, which will drive full-year revenue to return to growth. In terms of the growth margin, we will continue to focus on AI products in 2026, strictly control projects with low growth margins and prioritize high-margin online products and delivery efficiencies. Therefore, we expect the growth margin for 2026 to remain broadly flat or achieve a slight increase.

uh uh The impact will continue to increase. However, the technical part will be affected by the financial gain. This will lead to a gradual release of the revenue of our group's entire revenue cycle.

On expenses, we anticipate a rise in overall operating expenses in 2026, mainly due to higher marketing costs and increased manpower expenses at our subsidiaries, but it's not very much. At that time, overall expenses for the main Liepin platform will remain at a relatively low level. Against this backdrop, operating profits will keep improving. However, due to the combined impact of declines in overseas interest rates and reduced principal from shareholder return payouts, cloud management income will continue to decrease in 2026. Excluding this portion of non-operating income, The group's revenue resumes growth and the flexibility of the marginal operating margin gradually unfolds. The group's operating average will improve and strengthen, and this is my answer.

Yeah, we can open up for the second question operator.

Certainly. We will move next to Thomas Chung with Jeffery.

I will translate the question myself. First, thanks management for taking my question. My question is about the recent hiring industry situation as well as our thoughts about the second half outlook. And my second question is about the OPEX trend, in particular on marketing as well as new user acquisition cost outlook. Thank you.

Okay. 第一個問題我來回答一下。 The second question is still answered by our Seattle team. Thank you for your answer. As I mentioned before, our platform's entire new position is still relatively able to directly and positively react to the trend of the trade market. In 2025, the three seasons of the new position will be the same as the double position growth and the speed is accelerating. After this Spring Festival, . . . . . . . . I will take the first question and Tim will answer the second one. The number of new job postings on our platform offers a leading indicator of change in the recruitment market.

In Q3 and Q4 of 2025, New job posting numbers achieved double digit year-on-year growth. It's a growth momentum accelerating quarter by quarter. In the first week after this year's spring festival, new job postings on the platform rose 18.8 year-on-year. Active time volume increased 15.7 year-on-year. And high company released enterprises through 34.17% year-on-year. Since the start of Q1, the uptrend in the new job posting has continued and become even more pronounced after holidays. Total new jobs in the first three days of March exceeded 20% year-on-year, and this reflects a recovery in hiring activity and talent mobility.

From the industry point of view, is one of the leading companies in China. . . . . . . and Sun Xiaoqin Enterprise focus on marketing and technical work. Overall, with the positive state of the new eight-seater tree, the number of new customers in the year of 2025 is growing rapidly, and the platform's customer base continues to rise. We are also confident that the performance of the market that continues to lead the high-end and high-end products will continue to grow in the year of 2026.

The industry, finance, automobiles, and high-end manufacturing remains the core sector with the strongest recruitment demand. Emerging trends such as artificial intelligence, new energy, and the smart hardware are seeing explosive demand and showing enterprise is sending demand for innovation talent. In contrast, recruitment growth in traditional sectors has remained relatively moderate, including real estate, and the lifestyle services, highlighting structural divergence across industries. From my observation, compared with the past two years, large enterprises now have greater identity inherent. In terms of the recruitment structure, they continue to focus on technical backgrounds and talents with high talent density, while SMEs prioritize core positions in sales, marketing, and technology. Overall, supported by the positive momentum in new job posting and an increase in new contracted clients in 2025, Liepin's client base continues to strengthen. We are confident to outperforming the need to high-end recruitment market and delivering the same growth in cash billing throughout 2026.

Thomas, I will answer the second part. Thank you for your question. ah ah We have been developing the growth of staff costs that blue-collar workers' business continues to bring. Then, in terms of Liepin and Zhaoping business, the overall sales staff and marketing costs are relatively stable. Then, the proportion of marketing costs in the entire sales department will still remain at a relatively low level.

Thomas, I will take the next one question. And thank you for your question. In terms of the three major expenses, we expect overall operating expenses to rise slightly in 2026. SMT expenses are projected to increase by approximately a single digit year-on-year, mainly driven by higher marketing channel costs for our online certification training business. as well as rising personal expenses because of the steady revenue growth on the flexible staffing business. For Liepin's core recruitment business, the overall staff, self-staff member, and the related marketing expenses will remain stable, with marketing expenses continuing to account for a less than a low portion of the total SMB expenses.

And then in management and research and development, We expect to maintain a stable or low price overall. We will continue to upgrade the management to improve the organization's efficiency. In terms of marketing and marketing, we will continue to insist on using high-quality products in place of traditional and ordinary marketing ideas. We will add more energy and funds ah ah

In terms of the administrative expenses and RMB expenses, the overall level is expected to remain stable or slide deeper. We will continue to deepen the management and focus on improving organizational efficiency. For market promotions and user acquisitions, We are here to the strategy of replacing conventional marketing spending with high-quality products. We will put more effort and funds into continuously launch of AI products. Meanwhile, leveraging our unique positioning advantages in the need to high-end talent market and the brand awareness of AI talents are newly achieved. We will attract more talent users, optimize the user experience, and enhance user's thinking skills. And that's it for our questions.

In the interest of time, that concludes our Q&A session. Thank you once again for joining us today. If you have any other questions, please contact us through IRF email, irfliepin.com. Have a great day. Bye-bye.

Bye-bye. Thank you.

Thank you. Ladies and gentlemen, that will conclude the call. Thank you for your participation. You may disconnect at this time.