Kanzhun Limited (BZ) Q4 2025 Earnings Report, Transcript and Summary

Ladies and gentlemen, thank you for standing by, and welcome to Kanzhun Limited Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call. [Operator Instructions] Today's conference is being recorded. At this time, I would like to turn the conference over to [ Ms. Laura Zhan ], Senior Manager of Investor Relations. Please go ahead, ma'am.

Thank you, operator. Good evening, and good morning, everyone. Welcome to our Fourth Quarter and Fiscal Year 2025 Earnings Conference Call. Joining me today are our Founder, Chairman and CEO, Mr. Jonathan Peng Zhao; and our Deputy CFO, Ms. Wenbei Wang. Before we start, we would like to remind you that today's discussion may contain forward-looking statements, which are based on management's current expectations and observations that involve known and unknown risks, uncertainties and other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different. The company cautions you not to place undue reliance on forward-looking statements and do not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purpose only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial measures, please see the earnings release issued earlier today. In addition, a webcast replay of this conference call will be available on our website at ir.zhipin.com. With that, I will now turn the call to Jonathan, our Founder, Chairman and CEO.

[Interpreted] Hello, everyone. Thank you for joining our company's fourth quarter and full year 2025 earnings conference call. On behalf of the company's employees, management team and Board of Directors, I would like to extend our sincere gratitude to our users and investors who have continuously believed in and supported us. Today's presentation will cover 4 main parts. First, our financial results for fourth quarter and full year of 2025. Second, the robust growth momentum we are seeing in both supply and demand during the spring recruitment season this year. Third, an update on our AI progress. And fourth, further strengthen our commitment to shareholder returns. First, let me briefly review the company's performance for the fourth quarter and full year of 2025. In fourth quarter, we generated a total revenue of RMB 2.08 billion, up 14% year-on-year. Excluding share-based compensation expenses, our adjusted operating profit reached RMB 900 million, up 37% year-on-year. The fourth quarter is traditionally a low season for recruitment in China. However, after adjusting for seasonality, the higher demand for our enterprises continued the steady recovery trend since the beginning of this year. The supply and demand ratio also remained within a healthy range. By sector, manufacturing, electronics, communications and semiconductor industries stood out. Urban service, automotive and consumer retail industries saw faster growth. The Internet technology industry achieved a faster year-on-year growth rate in the fourth quarter compared to the third quarter. In full year 2025, the company generated a total revenue of RMB 8.27 billion, up 12.4% year-on-year. Net income reached RMB 2.7 billion. Excluding other income such as investment gains and share-based compensation expenses, our adjusted operating profit reached RMB 3.38 billion, up 45.7% year-on-year. Our adjusted operating profit margin reached 40.8%. The upward growth momentum in user continues. In 2025, the company acquired nearly 46 million newly verified users. As of the end of 2025, the platform had cumulatively served over 250 million job seekers and 36 million enterprise users with the total number of enterprises served exceeding 20 million. In 2025, the average monthly active users, the MAU of the BOSS Zhipin app reached over 60.7 million, representing a year-on-year increase of 14.5%. In 2025, the platform facilitated over 2.27 billion instances of mutually consented exchanges of resume or contact information, what we commonly refer to as mutual consent, representing a year-on-year growth of 22.4%. The average number of mutual consent per job seeker also rose by 7% year-on-year. This demonstrates our strong double-sided network effect on our platform. In 2025, the company continued its momentum in penetrating the blue-collar sector, lower-tier cities and small and medium-sized enterprises. The growth rate of blue collar users led overall user base with their contribution to revenue further increasing. Meanwhile, white-collar recruitment demand also recovered steadily with sectors such as Internet technology and communications, semiconductors achieved higher growth rates compared to 2024, reflecting a structural improvement. From a city tier perspective, revenue contribution from third-tier and low-tier cities approached 25% in fourth quarter, doubling compared to 4 years ago. This clearly demonstrates that our user penetration strategy in lower-tier markets is steadily gaining traction, while our brand awareness has continued to expand. In 2025, revenue contributed by enterprises was fewer than 100 employees exceeded 50% for the first time. The substantial contribution from SMEs became a key driver of the platform's continuous growth. On the monetization front, in the 12 months ended December 31, 2025, which is full year 2025, the number of paid enterprise customers reached 6.83 million, up 11.6% year-on-year and 1.3% quarter-on-quarter. The payment (sic) [ paying ratio ] among active users continue to see modest growth due to the increased revenue contribution from SMEs, the average revenue per paying user, which is the ARPPU, remained broadly stable. Second, we are seeing robust momentum in both supply and demand side during the spring recruitment season this year. As we know, the peak season for recruitment in China is after spring festival every year. Adjusted for the Chinese New Year holiday, the average daily newly verified users, including both job seekers and enterprise users, exceeded the same period last year and active users after spring festival reached at a record high. The average daily job postings in the 15 days after the spring festival grew by a double-digit percentage year-on-year. In terms of supply and demand dynamics, the ratio of job seekers to enterprise users, which is the [ C to B ] ratio, our platform remained within a healthy and reasonable range. By industry sectors, active job postings in areas such as manufacturing, electronics and communications, semiconductors, automotive, advertising and media and urban services grew at a faster pace compared to other industries. Given that the spring festival fell later this year compared to last year, and it has been only a few weeks since the holiday period ended, white-collar and large enterprises typically resume operations slightly later than blue-collar and SME sectors. However, based on our current data, both newly added and active job postings in fields such as Internet, AI and technology already showing signs of accelerated year-on-year growth compared to the same period last year. Third, our AI progress. First, with the empowerment of AI, the company now has significantly greater opportunities to deliver closed-loop services. For enterprise users, the goal is to bring the right people on board. For job seekers, it's about securing a stable position. In this sense, the value that online recruitment has provided since its inception represents only a small part of the big picture so far. In the past, online recruitment advertising platforms primarily offered value through information dissemination between supply and demand side. Now platforms like BOSS Zhipin focus on increasing the profitability and opportunity of establishing labor contracts between enterprise users and job seekers. Moving forward, the online recruitment industry has the opportunity to evolve towards a closed-loop model. AI can assist companies in completing the last mile of work. By 2025, with the support of AI capabilities, the revenue from closed-loop services has already reached the scale of hundreds of millions RMB. To date, this segment has been growing faster than other businesses on our platform. In fact, many have recognized that AI can improve the matching efficiency for any roles in the economy. In simple terms, AI enables large-scale closed-loop services by better digitalizing both sides of demand, enhancing the efficiency of frontline workers and reducing the maintenance costs of large teams. Another progress, I will describe it between the enterprise user side and job seeker side. The AI quick hiring tool developed for high-end users with demanding recruitment requirements and strong willingness to pay has achieved positive results and is now being scaled up for broader trials. The core function of the tool is to better remember and understand the specific needs and preferences of targeted client, automatically conduct searches within a database of 250 million job seekers and the continuous interaction with users to improve hit rate. The feature demonstrates high reusability, and we believe that it holds strong commercial potential. From the job seeker side, our AI-assisted interview feature experiment has been fully rolled out to users within BOSS Zhipin's interview rooms. This has significantly increased both the usage and reusability of the company's proprietary interview rooms, while also enabling the platform to collect a greater volume of high-value interview data. The third progress is that the company has adopted a proactive approach in applying AI agent to assist the specific enterprise users by leverage AI hosting and screening capabilities. [ Per capita ] delivery efficiency has significantly improved in a situation like hiring scenarios such as for manufacturing workers and live streamers. This progress makes a business model based on successful hires or interviews viable on a large scale. We consistently inform job seekers that they are interacting with AI agents. And we believe that the job seekers response is quite positive and enterprise user satisfaction rate is high. The last approach in terms of scientific research, the scientists at our company's Nanbeige lab have made some industry-leading exploration into the intelligence and capability ceiling of small models. Among this, the recently opened source, Nanbeige 4.1/3B model with only 3 billion parameters, surpassed models from the Qwen3 series ranging from 4 billion to 52 billion parameters on multiple evaluation tasks. We are not intended to compare with others on this scale. In late February, it ranked first in HuggingFace's trending list for the text generation models. Fourth, our plan for shareholder returns. Today, the Board passed a resolution approving a plan to allocate no less than 50% of the prior year's adjusted net income for dividend and share repurchase over the 3-year period starting from 2026. Meanwhile, the company will increase the share repurchase program upper limit from $250 million to $400 million initially approved in August 2025. We will scale up repurchase as appropriate in response to changing market conditions, and we believe that it fully demonstrates our confidence in the company's long-term growth as well as our long-run commitment to delivering value to our shareholders and friends who supported and believed in us. That concludes my part of the call. I will now turn it over to our Deputy CFO, Wenbei, for the review of our financials. Thank you.

Thanks, Jonathan. Hello, everyone. Now let me walk through the details of our financial results of the fourth quarter and full year of 2025. We are pleased to deliver a quality set of financial results for the fourth quarter and the full year, with revenue growth continued its accelerating momentum and enlarged profitability. In the fourth quarter, the recruitment market sustained a steady recovery trend throughout the year. Under such conditions, our revenues reached RMB 2.1 billion during this quarter with growth rate accelerating to 14% year-on-year and grew by 12.4% to RMB 8.3 billion for the full year. Our number of paid enterprise customers for 2025 expanded to 6.8 million, marking a 12% year-on-year growth and 1.3% increased compared to the trailing 12 months ended September 30. We witnessed a more balanced growth this year with faster revenue growth from both key accounts and small size accounts. In the fourth quarter, in particular, revenue from small-size accounts grew 21% year-on-year, outpacing mid-size accounts and key accounts. As a result of this structural impact, overall, ARPPU remained stable, but ARPPU for each segment all showed increasing trend. Moving to the cost and expenses side. Our total operating cost and expenses decreased by 7% year-on-year to RMB 1.4 billion during the fourth quarter and by 7% to RMB 5.8 billion for the full year. Total share-based compensation expenses decreased by 23% and 20% year-on-year, respectively, in this quarter and the full year. As a percentage of revenue-wise, SBC went down by 5 percentage points year-on-year, both for the quarter and the full year, and we also expect this trend to continue. Excluding share-based compensation expenses, our adjusted income from operations grew by 37% to RMB 900 million and 46% to RMB 3.5 billion, respectively, for the quarter and the full year. The adjusted operating margin for the fourth quarter reached a quarterly historical high of 43.3%, while the annual adjusted operating margin improved by 9 percentage points to 40.8% in 2025, continuing to demonstrate our strong operating leverage and unwavering commitment to financial discipline. Cost of revenues decreased by 1% year-on-year to RMB 309 million during the fourth quarter and decreased by 0.4% to RMB 1.2 billion for the full year. This decrease was primarily due to a decrease in employee-related expenses and rental expenses partially offset by an increase in payment processing cost. As a result, our gross margin went up by 2 percentage points to 85.1% in 2025, marking the second year of increasing. Sales and marketing expenses decreased by 9% year-on-year to RMB 389 million during this quarter and decreased by 18% to RMB 1.7 billion for the full year. The decrease for the quarter was primarily due to improved sales efficiency, which led to a decreased employee-related expenses. No major marketing campaign in this year also further decreased sales and marketing expenses for the full year. R&D expenses decreased by 8% year-on-year to RMB 406 million this quarter and decreased by 9% to RMB 1.7 billion for the full year. Excluding share-based compensation expenses, our adjusted R&D expenses decreased by 4% year-on-year to RMB 1.3 billion for the full year and stayed relatively flat year-on-year and sequentially for this quarter. G&A expenses decreased by 7% year-on-year to RMB 256 million during this quarter, which was mainly due to decreased employee-related expenses. G&A expenses increased by 10% to RMB 1.2 billion for the full year primarily due to a one-off impairment of intangible assets booked in the third quarter. Income tax expenses were RMB 165 million this quarter, up 81% year-on-year. This was primarily driven by higher income before income tax expenses as well as the provision of a top-up tax of RMB 38 million related to the OECD Pillar Two global minimum tax rules. Our net income reached RMB 682 million in the quarter and RMB 2.7 billion in 2025. Our adjusted net income increased by 25% year-on-year to RMB 906 million in the fourth quarter and 33% year-on-year to RMB 3.6 billion for the full year. Adjusted net margin continued to expand in 2025 and reached historical high of 43.6%. Net cash provided by operating activities amounted to RMB 1.3 billion during the fourth quarter and increased by 29% year-on-year to RMB 4.6 billion for the full year. And our cash position stood at RMB 19.9 billion as of December 31, 2025. We will leverage our strong cash position and profitability to invest in future growth initiatives as well as shareholder returns. In 2025, we declared a dividend of USD 80 million. And as of year-to-date in 2026, we have already repurchased a total of USD 50 million worth of shares. Furthermore, as Jonathan just announced, the Board has approved a new shareholder return policy that for each year in next 3 years starting from 2026, we will allocate no less than 50% of the company's adjusted net income of the preceding fiscal year for dividend distribution and share repurchases and upsize our share repurchase program to a total of USD 400 million through August 28, 2027. And now for our business outlook, for the first quarter of 2026, we expect our total revenues to be between RMB 2.050 billion and RMB 2.085 billion, a year-on-year increase of 6.6% to 8.4%. This Q1 figure reflects a different seasonality in this year as the later Chinese New Year meant a shorter window of the peak recruitment season fell within this quarter. This timing difference aside, our underlying momentum remains strong with the strong demand we are seeing throughout the spring season. We expect a clear acceleration in revenues over the coming quarters. That concludes our prepared remarks. And now we would like to answer questions. Operator, please go ahead.

[Operator Instructions] Our first question comes from Eddy Wang from Morgan Stanley.

[Interpreted] We have seen a very extensive debate around the narratives of AI disruption and substitution. I think the market and investors have 2 key concerns regarding the impact of AI on the industry and on our company. So I would appreciate your insights on two questions. First is that will the adoption of AI agents significantly reduce the future demand of the white-collar hiring and the jobs and affecting the long-term growth potential of the recruitment market in China? And the second question is does the development of AI technology pose a very big challenge to BOSS Zhipin's competitive advantage and the business moat in the future?

[Interpreted] Thank you for your question. I also made certain observations and consideration that I noticed in America, both domestically some discussions about AI capability to replace human labor force, especially for white collar. And you know OpenClaw is quite popular. Recently everybody is talking about OpenClaw. So that might take some opportunities for human work, I notice that. But my own thinking is that more based on the market we are facing, my first opinion is that the development of AI, the improvement AI can have to the human labor efficiency, I think it's a very good supplement to the overall labor force in the coming [ 10 ] to 20 years. So we have made some quite reasonable and practical calculation that if we consider age between 16 and 59, a broader age for labor force, that number in 2026 is about 880 million. And according to the current situation, we refer that in 2036, that number will go down by around 9%. And toward 2046, the number will further go down by 20% to 690 million. So this is as a result based on our calculation and some factor data. So in fact, this 9% to 20% in the coming 10 to 20 years, that decrease in the number, I think, is quite challenging, quite severe challenge. And what we can see can help with this situation is actually the application of AI in this daily work. And another thing different about this AI discussion, replacing discussions in the U.S. that 2 different points between U.S. and China. First, is the ratio between blue-collar and white-collar is different. So they are around like 150 million or 160 million labor force in the U.S. and the white-collar has around 100 million. So it's like a 2:1 ratio. From China's perspective, this is other way around, which is we have more blue-collar population. So another different point between U.S. and China is the situation of the enterprises, which is employers. So this is a commonly agreed that in China, the number of active operational enterprises is around like 40 million. So according to the public data we can get, 98% of which are small or even micro-sized enterprises. So from SMB's perspective, maybe you can record a lot of very successful SaaS companies are not that easy to achieve same kind of success in China because where in China, 98% of companies are SMBs. When they are hiring people, for example, they're hiring 8 person compared to 9 person. The difference is not that huge and it's not that difficult. So it's the same situation here, around 40 million enterprises in China hired around 420 million urban employees. So on average, one company hire around 10 person. Because the development of AI, the company might hire 9 person instead of the 10 person. I think that can explain why a lot of software or SaaS company not that successful in China that is actually determined by the size of the company and the different stage of the development of the company. Of course, the discussion before was based on the assumption that AI was largely taking jobs from the human beings. And now I will share another real data I have observed recently that this AI development has brought about a very good [ enthusiasm ] about the entrepreneurs of technology companies and also a surge in demand from AI-related talents. So this year, after the spring festival from the demand of the enterprise customers, the AI-related, artificial intelligence-related, newly posted jobs grew by 172% year-on-year and active online jobs increased by 80%. That's a very huge improvement. Now about direct -- beyond direct AI-related jobs, we have another concept about AI path, if you can record the concept of Internet path. So more and more companies, not only in the first-tier cities, but also more and more like second-tier cities in the center of the province, the companies are recruiting talents or background related to AI and increasing -- creating new roles. Now we can call that AI path for now, actually, those jobs are more and more commonly adopted and more and more further going into low-tier cities and more and more common or lower in the salary range. And now for the overall number of jobs for the white collar, I actually mentioned in my report earlier that this year, the overall number of white-collar jobs increased especially like Internet, like information, communication, semiconductors and automobile. They actually are outgrowing the overall platform. And if you compare to the other side in the U.S. from indeed their data also show that the number of white-collar jobs increased this year. And I quite appreciate your concern about our own challenge arrived by the AI itself. We have been paying a lot of attention to this since beginning of 2023 with ChatGPT 3.5 moment. First, one thing has not changed, the AI also cannot change, BOSS Zhipin is actually a platform for the game of people for a carbon-based human being, both sides are live people who are looking for a job to provide for his family. So the person need somebody to help him to do the job and both sides need to be [ work ] both on the supply side and demand side. So that's a marketplace for real person of majority of the population. Another point is that the analysts and investors who have known us quite well, know that one point, which is a prediction in the past, but a reality now that we have a very strong bilateral network effect, which caused that in addition of our users continue to grow, the individual achievement a user can get also increases. So until now, we haven't felt any challenge arrived -- posted to ourselves. On the contrary, due to our unique data, I think AI can help us to better solidify these advantages. And another point is, as I mentioned in my prepared remarks that we now can clearly see that with the informative AI, we can move forward very aggressively into this placement market with multi-hundred billions of market size, which is actually since the beginning of online recruitment industry in 1997. And now the first time for the online recruitment platform to have opportunity to achieve like a business model based on results. And AI is actually helping us with that. So Eddy, you can see I don't have any like unique point to predict or I'm not well positioned to predict what kind of influence or even disaster AI can bring about to the real world. I just provide you some observations based on current data based on our daily work. So that's my answer to your question.

[Operator Instructions] Our next question comes from Timothy Zhao of Goldman Sachs.

[Interpreted] The first question is a more follow-up question on the AI and AI progress. Could management share what is your plan for the AI product in terms of testing, in terms of new product launch? And regarding the AI product monetization, what kind of expectations that we should have for this year? And we also note that for your Nanbeige large language model, just wondering what is the rationale behind your consistent investments. And what is your expectations in terms of the Nanbeige large language model application this year? Secondly is regarding the recruitment demand or recruitment trend after Chinese New Year. Just wondering if you can elaborate more details and especially compared to the previous years, what are the special points about the recruitment demand for this year after the Chinese New Year?

[Interpreted] So about AI commercialization, so the first thing is about the closed-loop placement service, which last year, we have already made like million level -- RMB 100 million level of revenue and this year, we expect that number to double or triple or even have multiple growth that's quite sure. Another thing is not like a native AI product, but I would rather say AI is empowering overall aspect of our operation and the technology and the product to help us to provide better solutions and better user experience to our customers. So actually, Kanzhun has made a very significant investment in like AI applications, including resources, product managers and the technology team. In the meanwhile, we also kept a relatively smaller science team to develop our Nanbeige model. So the thing about keeping our own proprietary pretraining models, the reason is that I feel that we are necessary to keep our so-called taillight strategy during a world that AI is developing very, very fast. So we must have a team who can clearly follow the most advanced leading company to see what they're doing. So that's the reason why the Nanbeige science lab exist. We cannot only become the company to download open-source platform. And then sometimes, someone trying to tell us if we can only download other company's apps, then we might not understand what is happening and download something we cannot properly use that. That's why we kept this taillight strategy. So we don't want to succeed, we just don't want to [ lost ]. Okay. Another point is that it's quite easy to understand why we are doing this smaller scale model because it has a relatively very low cost for training and revenue. And it means more smart or intelligent ideas, which is quite useful to our daily work. And apparently, we are doing this smaller-sized model to further help our industrial applications that are up on that. Another thing is our scientists, which number is relatively smaller, but they are very, very, very young and talented. I would like to take this opportunity to tell you something they are sharing with me that they say that one day, there is one day, it's not that compared to who can consume more electricity, who can consume more computing power, who have more data, who can give a higher salary. Compared to all those 4 things, actually is the obstacle that current paradigm is facing for the current model. So actually, the science is not belonging to the mind, it belongs to the people who have very strong spirits. So actually, when our scientists are talking about making developing a smaller model, I didn't tell them to do it by tomorrow for industrial application. I want to say that we are not a very wealthy company, we are not. But in this progress of human technology revolution, we are -- we once have taken the #1 of the HuggingFace text ranking. It means that a smaller size company can express their own voice during this huge technology revolution. Yes. About the spring recruitment -- spring festival recruitment season this year, as Jonathan just mentioned, this year, we actually saw a very strong recruitment demand with both new and active enterprise data showing significant year-on-year growth and the situation remains stable. So -- but I would like to point out, there is one difference this year that the later Chinese New Year actually will result in weaker year-on-year data for the fourth quarter especially on a GAAP basis because they are actually -- if you count, there are 20 fewer days for revenue [indiscernible] after the holiday compared to last year in the first quarter. So that might have a bigger impact on the GAAP numbers for the quarter. But on the full year, if you're looking at the Lunar calendar environment, our cash collection growth is positive, and we are expecting to accelerate further throughout the year compared to 2025. And yes, that's our answer to the question. And given the time constraint, I think we can take the last question.

The last question comes from Wei Xiong of UBS.

[Interpreted] Firstly, could management update our user growth target for 2026 and considering the additional investment in sales, marketing and AI this year, how should we think about the margin trend as well as the future room for margin expansion? And secondly, regarding our overseas business, could management please give an update there as well. We noticed very rapid user growth of OfferToday in Hong Kong. So what's our plan for the next stage of development?

Thank you for your question. I will answer the first one regarding margin, and then Jonathan will take the overseas question. So for 2026, we are still looking at a very robust user growth. So at least -- we want to add at least 40 million of newly verified users this year. And in terms of investment, as you said, we might further invest in AI like computing power, buying servers and maybe renting some computing power. And about the [ World Cup ], we have not decided yet. But even considering those, we expect that given our strong leverage of our operations, we expect overall adjusted operating margin can slightly increase compared to last year, even taking consideration of the [ World Cup ] and AI investment. From the long term, we still have a quite huge upside potential for our main recruitment domestic business, and we will maintain a steady growth year-on-year going forward. However, as Jonathan just mentioned, we have -- if we have opportunities in new initiatives like closed-loop placement, AI overseas, we will not hesitate to invest, and we will communicate with the market timely. But at least until now, we are expecting our margin to improve some in the coming years.

[Interpreted] Thank you for not missing OfferToday. So this time we're coming to Hong Kong to do earnings. I have a slightly different feeling, especially now OfferToday has now ranked #1 in Hong Kong in terms of daily active users on the mobile app. If you compare different platforms, like mobile and PC, so among the 3 million workforce in Hong Kong, I can say every 50 Hong Kong workers, one of them is using OfferToday daily looking for opportunities. Some of them have already secured new work opportunities through OfferToday. But now when we are working on the road, I'm looking at all the potential users for me. I felt quite happy. OfferToday is not a simple replica of BOSS Zhipin in China Mainland, but the core is actually the same. So in somehow, the BOSS Zhipin as a native app has received a certain recognition in the Hong Kong market. But our follow-up job is to further push forward the localization, including 2 parts. First is the localization of own product. And second is the localization of our team, especially we are expecting more and more native Hong Kong young talents to join us becoming the leader, manager of our [ office ] product. And moving beyond OfferToday about our other international approaches, I can say that we will be more active to looking for opportunities to cooperate with local institutions for offers like that. Actually, we are making some progress, but still not turning yet to make the report. I just want to clarify, Hong Kong is part of China, so beyond the overseas market. So that's all the answers for the question.

Due to time constraint, that concludes today's question-and-answer session. At this time, I will turn the conference back to [ Laura ] for any additional or closing remarks.

Thank you once again for joining us today. If you have any further questions, please feel free to contact us. Thank you.

That concludes today's conference call. Thank you for your participation. You may now disconnect your lines. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]