Earnings call transcript: Kalsyang Limited Q2 2025 sees strong growth

Kalsyang Limited, a leading recruitment platform with a market capitalization of $9.84 billion, reported robust financial results for the second quarter of 2025, with total revenue reaching 2.1 billion RMB, marking a 9.7% increase year-over-year. The company’s net income surged by 70.4% to 710 million RMB, while its net profit margin improved to 33.8%. According to InvestingPro data, the company maintains an impressive gross margin of 83.43% and has delivered a strong 52.68% return year-to-date. The positive financial performance was accompanied by innovations in AI technology and a recovering recruitment market.

Key Takeaways

• Kalsyang’s revenue increased by 9.7% year-over-year, reaching 2.1 billion RMB.
• Net income saw a substantial rise of 70.4%, amounting to 710 million RMB.
• The company launched several AI-driven products, enhancing operational efficiency.
• The recruitment market is showing signs of recovery, particularly in the blue-collar manufacturing sector.
• Kalsyang expects accelerated growth in the third quarter of 2025.

Company Performance

Kalsyang Limited demonstrated strong financial performance in Q2 2025, driven by increased revenue and net income. The company capitalized on its AI innovations and operational efficiencies, which contributed to a higher net profit margin. With a current ratio of 3.56 and minimal debt-to-equity of 0.02, InvestingPro analysis indicates the company maintains a GREAT financial health score of 3.38. The recruitment market’s recovery, especially in blue-collar manufacturing and internet industries, further supported Kalsyang’s growth.

Financial Highlights

• Revenue: 2.1 billion RMB, up 9.7% year-over-year
• Net Income: 710 million RMB, up 70.4% year-over-year
• Adjusted Operating Profit: 880 million RMB, up 33% year-over-year
• Total Paid Enterprise Customers: 6.5 million, up 10% year-over-year

Outlook & Guidance

Kalsyang Limited is optimistic about its future, projecting revenue between 2.130 billion RMB and 2.160 billion RMB for 2025, reflecting an increase of 11.4% to 13% year-over-year. Trading at a P/E ratio of 33.14, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued. The company plans to focus on research and development, innovation, and new business initiatives to drive growth in the upcoming quarters. For deeper insights into Kalsyang’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers 1,400+ top stocks with expert analysis and actionable intelligence.

Executive Commentary

CEO Jonathan Zhang highlighted the company’s growth prospects, stating, "Our business growth rate in the third quarter is expected to further accelerate." He also emphasized the role of AI in the company’s operations, remarking, "AI will be everything in our daily life." CFO Phil Lu Zhang reinforced the company’s commitment to its investors, saying, "We consider shareholders as our partners."

Risks and Challenges

• Economic Uncertainty: Potential macroeconomic pressures could impact recruitment demand.
• Technological Competition: Rapid advancements in AI technology may increase competition.
• Regulatory Changes: Changes in employment laws could affect operational strategies.
• Market Saturation: High penetration in key markets may limit further growth opportunities.
• Currency Fluctuations: Exchange rate volatility could impact financial performance.

Kalsyang Limited’s Q2 2025 earnings call highlights its strong financial performance, driven by innovation and market recovery. The company remains focused on leveraging AI technology and expanding its market presence, with optimistic projections for the future.

Full transcript - Boise Inc (BZ) Q2 2025:

Conference Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Kalsyang Limited Second Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Today’s conference is being recorded. At this time, I would like to turn the conference over to Ms.

Wenbe Wang, Head of Investor Relations. Please go ahead, ma’am.

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: Thank you, operator. Good evening and good morning, everyone. Welcome our second quarter twenty twenty five earnings conference call. Joining me today are our Founder, Chairman and CFO, Mr. Jonathan Zhang and our Director and CFO, Mr.

Phil Lu Zhang. Before we start, we would 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 definition of non GAAP financial measures and the reconciliation of GAAP to non GAAP financial results, 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.jpg.com. With that, I will now turn the call to Jonathan, our Founder, Chairman and CEO. Hello, everyone. Thank you for joining our company’s second quarter twenty twenty five 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, investors, and friends who have continuously believed in and supported us.

Today, I would like to report on four matters. First, our quarterly performance was good. Second, the supply demand dynamics on our platform continue to improve. Third, we are making ongoing progress in AI. And fourth, our recent Hong Kong share offering and future shareholder return arrangements.

Let me start with an overview of our financial performance. In the second quarter, our company achieved a total revenue of RMB2.1 billion, up 9.7% year on year. Our net income reached $710,000,000, reflecting a 70.4% year on year growth, achieving a net profit margin exceeding 33%.

Phil Lu Zhang, Director and CFO, Kalsyang Limited: A a

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: Excluding share based compensation expenses and other income such as investment gains, our adjusted operating profit was RMB880 million, up 33% year on year. Share based compensation expenses for this quarter decreased by nearly 10% quarter on quarter for the second consecutive quarter, amounting to million with the ratio to revenue narrowed by about five percentage points year on year. The operating leverage from the economics of scale and the efficient business model supported our high quality growth, characterized by simultaneous improvement in both revenue and profit. From January to July, we cumulatively added over 30,000,000 verified users. In the second quarter, the average verified monthly active users on the first checking app reached 63,560,000, up 16.5% year on year.

Consistent with user growth and the penetration trends, revenue contributions from blue collar, lower tier cities and the small and medium sized enterprises further increased compared to last year. Second, during the second quarter and graduation season, we saw notable improvements in our platform’s job supply and demand dynamics. Specifically, on the job seeker side, incremental job seeking demand from fresh graduates moderated with number of newly added verified graduates declining over 20% year on year in June and July. On the employer side, recruitment demand for fresh graduates also increased. The number of new job postings for fresh graduates grew by over 18% year on year for the same period.

This aligns with the overall trend of recovery in the recruitment market. In July, the number of newly posted jobs on our platform increased by approximately 20% year on year. Both the number of employers posting new jobs and average number of jobs posted per recruiter were higher than the same period last year. The improvement in supply and demand relationships also led to a significant year on year decrease in the CB ratio for new users. Improved supply demand dynamics also drove positive changes in monetization.

The total paid enterprise customers in the twelve months ended June 30 reached 6,500,000, up 10% year on year. From industry perspective, blue collar manufacturing experienced a short term slowdown in April due to tariff, but resumed year on year growth from May onward, with growth rates continuing to outpace other industries. Southern service sectors saw accelerated year on year growth in the second quarter. We observed a noticeable recovery in the internet industry with the number of active job postings in the second quarter reaching a new high since 2021 led by product and technical roles. Sir, the company’s continued progress in AI.

I will speak to the three perspectives, AI to see job seekers, AI to be enterprise users, and AI to management. First, AI to job seekers. The AI interview training robot has made some new progresses. This robot now starts to play a role in recommendation. Upon job seekers consent, we use data obtained during the interview process to recommend positions to job seekers and users who participated in the experimental group have achieved higher efficiency.

We continue to iterate AI assisted user search. For users participating in the test, not only does AI give more information for the research results, It can also provide dynamic content summaries, job search strategy planning, and the resume optimization guide guides based on user queries. Users in the experimental group gain more mutual achievements. In terms of protecting job seeker safety, we have applied AI to identify risky users. For instance, we have trained AI to recognize more subtle aggressive language and expressions that violate platform rules.

Another example is that the AI tools we developed have made preliminary in identifying fake content tempered by other AIs. This is obviously a long term and a challenging task, but we firmly believe that more people are in need of such functions.

Conference Operator: Ladies and gentlemen, please continue to stand by. The conference will resume shortly. Thank you for your patience.

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: Can you hear me now?

Conference Operator: Yes. We can hear

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: you now.

Conference Operator: Please resume. Okay.

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: We we start a mixed hour. Next, about AI to enterprises. We provide AI assisted job posting optimization features for bosses of many newly established startups and junior HR. Currently, AI assists importing tens of thousands of job positions on a daily basis. The key point here is how to prevent turning a distance into a placement.

It is difficult, but we must persist in doing so. In terms of commercialization, we have extensively integrated AI to conduct experiments. For instance, we use AI to enhance the understanding of recruiters’ intention, thereby helping them to select value added services which are more suited to their needs. Recruiters in the experimental group have made more proactive purchases and because they have chosen more suitable products, the repeat purchases have also increased. Now AI to management.

We promote the use of AI in research and development, transforming R and D tools and processes. In a certain technical department at the Beijing headquarters, 30% of the coding is now AI generated. In another city, a newly established R and D department, 70% of the code is AI generated. As a result, the speed of product R and D iteration and launch has significantly increased, allowing us to explore more possibilities within the same timeframe. AI is playing an increasingly important role in customer service.

It has achieved results in training new customer service staff, automatically inspecting customer service quality and providing suggestions to recognizing and responding to customer emotions. This is crucial for improving user satisfaction and enhancing the well-being of customer service employees. The last one, we would like to report our recent Hong Kong offering and shareholder return arrangements. The company completed a Hong Kong secondary share offer of Hong Kong dollar 2,200,000,000.0 on July 4. The primary purpose was to enhance the liquidity in Hong Kong line allowing more investors in the Hong Kong stock market to understand and participate in the company’s trading.

The offer has achieved positive results with a significant increase in Hong Kong stock trading volume compared to the pre offering levels. Regarding shareholder returns, the Board of Directors approved two shareholder return proposals today. First, an annual dividend policy was adopted. The company plans to pay out annual dividends going forward with dividend of US dollar 80,000,000 for the current fiscal year. Second, a new share repurchase program and the phased cumulative perspective is launched.

The company intends to repurchase up to $250,000,000 of these shares over the next twelve months starting August 29. We believe this fully demonstrates the company’s sincerity in actively rewarding shareholders and sharing the benefits of our sustained growth with all investors. That concludes my part of the call. I’ll now turn it over to our CFO, Phil, for the review of our financials. Thank you.

Phil Lu Zhang, Director and CFO, Kalsyang Limited: Thanks, Jonathan. Hello, everyone. Now let me walk through the details of our financial results of the 2025. We continued to achieve high quality results in this quarter, represented by solid revenue growth and further improved the profitability. The revenue growth this quarter was primarily attributed to the continued expansion of our user base, with the number of paying enterprise customers increased by 10% year on year to 6,500,000 over the trailing twelve months ended June 30.

As the recruitment market demand has gradually recovered since the beginning of this year, and the job seeker recruiter ecosystem has improved, the willingness of enterprise clients to pay has been rising. Among them, the recovery in recruitment demand from small and medium sized enterprises has been more pronounced, driving a quarter on quarter increase in the revenue contribution from SMEs. ARPU, ARPPU, maintained a stable and modest growth, mainly benefiting from the expansion of paying amount from key accounts. Moving to the cost side, total operating cost and expenses decreased by 7% year on year to RMB 1,500,000,000.0 this quarter. Share based compensation expenses dropped by 24% year on year and 9% quarter on quarter to RMB $230,000,000, shrinking for the fourth consecutive quarters.

Excluding share based compensation expenses, adjusted income from operations grew by 33% to RMB $881,000,000, and our adjusted operating margin in the quarter reached 41.9%, up by 7.5 percentage points year on year, hit a record high. Cost of revenues decreased by 3% year on year to RMB307 million in this quarter, mainly due to the decrease in operational employee related expenses as a result of improved operational efficiency as we continue to engage AI in our daily operations. Gross margin went up by 1.9 percentage points year on year to 85.4%. Sales and marketing expenses decreased decreased by 23% year on year to RMB $420,000,000 during this quarter, primarily driven by decreases in advertising and marketing expenses and employee related expenses. However, our strong brand recognition enhanced marketing efficiency and a superior user engagement guaranteed that we can still maintain robust user growth momentum.

Our R and D expenses decreased by 6% year on year to RB $416,000,000 in this quarter. This decrease was primarily driven by reduced public cloud service fees related to AI. Our G and A expenses increased by 19% to RMB $311,000,000 in this quarter, primarily due to an increase in employee related expenses and investment in new initiatives. Our net income increased by 70% to RMB $711,000,000 in this quarter, with adjusted net income increased by 31% to RMB 941,000,000. And margins also expanded significantly and reached a record highs.

Our net margin improved by 12.1 percentage points year on year to 33.8, while our adjusted net margin reached 44.8%, up 7.3 percentage points year on year. Both of these two margins have maintained a sustainable improvement over the past three consecutive quarters. Net cash provided by operating activities reached RMB 1,052 million in this quarter, up 21% year on year. As 06/30/2025, we continue to maintain a strong cash position of RMB16.0 billion. In July, we completed the share offering of 34,500,000.0 class A ordinary shares at Hong Kong dollar 66 per share, comprising a Hong Kong public tranche and an international tranche.

Net proceeds from this share offering amounted to approximately Hong Kong dollar sorry, 200,000,000.0. This offering on one side improved our Hong Kong line liquidity and broadened our share base shareholder base. On the other side, further strengthened our cash position, gave us both a strategic flexibility and a financial capacity to pursue long term growth initiatives and enhance our shareholder returns. One new initiative Jonathan just mentioned is that our board of directors has just approved the adoption of an annual dividend policy with a dividend amount of $80,000,000 S. Dollar for the fiscal year of 2025.

Combined with a renewed $250,000,000 US dollar share repurchase program. Our commitment to shareholder returns continued to enhance. And for our business outlook, just like we communicated before, we expect our revenue growth to accelerate, starting this quarter, along with the recovery of recruitment market momentum. For the 2025, we expect our total revenues to be between RMB 2,130,000,000.00 and RMB 2,160,000,000.00. A year on year increase of 11.4% to 13%.

This concludes our prepared remarks. And now we would like to answer questions. Operator, please go ahead.

Conference Operator: Thank you. You. We are now going to proceed with our first question. And the questions come from the line of Eddie Huang from Morgan Stanley. Please ask your question.

Eddie Huang, Analyst, Morgan Stanley: Thank you management for taking my question. I have two questions. The first one is the recruitment demand recover we witnessed on BOSS platform in the July. Is there any different driver for such a recovery this time versus before? For example, had the food delivery battle led to the surge in service industry blue collar recruitment demand?

Do you think the recruitment demand in the second quarter is sustainable or not? How’s your view and outlook for the third quarter? And the second question is that you mentioned previously that your R and D department, most of the coding has been generated by AI. So what’s your view on the AI’s impact on the white collar recruitment, especially on higher demand of the programmers? Thank you.

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: Thank you for your question. About the recovery trend of the recruitment market compared to before, we saw small features and big features. The small one is the job postings from Internet sector have recovered to a new high since 2021 as we just communicated. And the big one is that the smaller size or micro size enterprises have been recovering much faster. One data to share with you that with the company with employee less than 20 less than 20 employees in the second quarter, its revenue contribution goes up to almost 20%, which is the highest representing our highest growth rate among all different size of companies.

Let’s expand in the size a little bit to companies with less than a 100 employees. The year on year growth rate of new job postings by those companies have also significantly exceeded the platform’s overall level. About your question of the impact of the food delivery competition, our observation is impact is quite minor or negative. So because the data shows that the job postings related to writers or food delivery guys has been quite small among all of our job postings. And we also haven’t observed any higher than average level of revenue growth from those jobs.

About your third question, whether this recovery could be sustainable, our view is that it’s positive. I have several evidence for you. First one is we have communicated before that the very poor job seeker to recruiter ratio starting last July, the situation has been improved since last November, November 2024, which by that time has recovered to the same period of November 2023. After that, the job cycle to recruiter ratio or dynamics have continued to improving and in the second quarter we have seen a much more obvious recovery for that number, which we have just communicated. From my perspective, from daily operation, our business growth rate in the third quarter is expected to further accelerate compared to the second quarter, which I have quite confidence with.

And that’s our answer to the question. Operator, let’s move on to the next question.

Conference Operator: Sure. We are now going to proceed with our next question. And the questions come from the line of Wei Cheong from UBS. Please ask your question.

Wei Cheong, Analyst, UBS: Thank you, management, for taking my questions. I have two questions. First is our margins continue to expand this year to a very high level. So given such a high base, how should we think about the margin trend in the next year and beyond? And also considering our healthy and stable margins and cash flow, how do we what do we consider as the most important investment areas going forward?

Second, it looks like some start up companies are ramping up advertising investment recently. Does it affect our marketing and user acquisition cost? How do we assess the impact on the competition landscape in blue collar segment and online recruit market overall as well as our competitive modes? Thank you.

Phil Lu Zhang, Director and CFO, Kalsyang Limited: So so thanks for the question, and I’ll answer the margin question first. You are right that, our margin continues to improve. We we think that this is the mainly, you know, related to our business model. Because of, we run online recruitment marketplace, the scale effect brought by our company’s business model is significant. We believe this is the fundamental reason for, you know, the continuous improvement of our profit margins.

And as a company in the past, several quarters, we implemented effective cost control, to make sure we have, you know, we put our focus, on the high quality part of our growth, which kept our growth, you know, kept our cost, growth rate lower than that of revenue. So with that, you know, along with our revenue steady growth, the direction of a gradual improvement of our profit margin is quite clear, and this is a kind of a definite. But we believe the margin improving is a long term thing, and, it should, you know, run step by step, not all of a sudden, not grow, you know, too fast or too high in short term. So basically, in terms of the areas that we would like to invest, we will continue to invest into our business. And our future investment priorities remain consistent with our previous ones, mainly focusing on r and d, innovation, and new business initiatives, etcetera.

And you also can see that we generated a very healthy cash flow. So in the quarter, in this quarter, we generated more than 1,000,000,000, RMB operating cash flow. Actually, this is, you know, the conservative two quarters. So the first quarter, the operating cash flow is also above 1,000,000,000. So we already had two consecutive quarters with over 1,000,000,000 operating cash flow.

And with such healthy cash reserves, we will mainly use our cash, at talent development, probably like overseas expansion, and more importantly, shareholder return programs, in the future. So that’s, my comment related to the margin and our use how to use of cash in the future. Jonathan can answer the second question.

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: We about the second question, yes, we do observe that many of our peers will do some advertising marketing events in certain cities, including both mature companies or startups. But so far to now, the impact to us is quite limited. But my observation or my understanding is that at this current stage, a marketing rule, the meaning of a marketing rule is very small. I want to clarify one thing that even though our marketing expenses as a percentage of revenues continue to declining but on the absolute amount basis we are still investing in the largest amount of marketing and advertising expenses among the industry. At the meantime, due to our very powerful double sided network effect, So we, our very high user acquisition efficiency, so we can maintain a very robust user growth while our user acquisition cost still kept at a quite low level And also, our user retention is the highest among our peers.

So to sum up, we have very strong marketing investment. User efficiency is high. Our user retention is high. So that’s why I said at current stage, it’s quite the mean meaningless is quite low to start a marketing model. And we would like to answer the second question from Eddie about whether AI will replace the programmers.

So from our own situation is that, yes, our recruitment for entry level programmers have been slowing down, but we are still hiring. So we are focusing on those people who have more potentials, who are much more smarter, can break down the questions looking from a bigger picture perspective. So I think that’s also happening in many other technology companies. And so what I’m facing to recruiting the entry level programmers are spending more more money, more cost, recruitment cost to hire the the people with more talents or more potential. So we will actually, we might somehow increase the recruitment cost for those type of people.

I think that that’s also happening to many other technology companies. So my thinking on this this issue is that in the past, the normal structure is one senior programmer with some junior level team to do more simplified jobs. Now it will turn into one senior programmer or senior technical guys with AI. But the salary we need to pay and the hiring efforts we need to invest to hire that senior guy actually increases. And the the junior engineer or junior programmer as a percentage of overall white collar employees, which in our country might be more than a 100,000,000, my tax bill is less than 2%.

So that change to to the impact of hiring of white collar is very limited.

Phil Lu Zhang, Director and CFO, Kalsyang Limited: Tricia, what’s up for you?

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: Yeah. And that’s our all of our answers to the questions. And operator, let’s move on to the next one.

Conference Operator: Sure. We are now going to proceed with our next question. And the questions come from the line of Timothy Zhao from Goldman Sachs. Your line is open. Please go ahead.

Phil Lu Zhang, Director and CFO, Kalsyang Limited: Thank you, management, for taking my question. Two questions from my side. First is regarding the AI application or AI features. If management can introduce more detail about the specific use scenarios on the enterprise side and what kind of commercial product that we are thinking of. Also, note that recently, the company leveraged AI to develop mini programs or applications of different features.

Just wondering from your perspective, which ones have the more commercial potential? And secondly, it’s regarding your recent financing activities in Hong Kong markets. And we’re very glad to see you also announced share repurchase and annual dividend policy this year. Just wondering if management can share what is your thoughts on the capital markets going forward. For example, what are your plan to improve the liquidity in the Hong Kong markets?

And what are the detailed dividend plan that you have in mind? Thank you.

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: Actually, we yes. We do have some good progress on the AI product development side. Actually, we have been broadly to do some new product launches and development, so I can give you more examples. The first one is a is a is a agent. We developed a recruitment agent called HAMR.

Currently, we use it with approximately 500 recruiters daily. The recruiters can complete the majority of their work on our platform by simply interacting with HAMR through dialogue. Of course, this part should have the job seekers consent. And sometimes job seekers might say no, but if job seeker is okay, the HAMR will complete its job until to get to achieve exchange of revenue or confirmation or or or achievement on the platform. We will attach very great pictures to each with this aided hammer.

So rather than saying that we are using new technology to validate what we have already know in the hammer actually will lead us into even greater. So the second example is where the job seekers have more tolerance towards this product and the recruiters say it has higher higher leverages in terms of the negotiation progress. So it’s actually a product we designed for large state owned enterprises which have just launched. Currently, this system allows for customization of digital human avatar, interview questions, interview reports.

It also supports AI powered follow-up questions, multi model candidate emotion recognition and image recognition. Using this technology, we have supported over 20 AI powered interview events for resident graduates at over 10 large state owned enterprises, attracting nearly 30,000 participants. And the response has been positive so far. I think that we have a lot of those examples and that also should be quite common in many other companies. Actually, I felt that the combination of AI technology and the current products or application in technology management and the daily operation is still at early stage.

So the new technology combined with all the business for this matter, the more revolutionized the product is, so they will be more like a ground activities movement. So the killer level applications will be generated among a lot of those ground movements. So we have enough patients and we have enough assets waiting for that kind of application to So the the the AI everybody cares about, we are also quite care about. And the fundamental principle is just treating it like a.

The next stage is AI will be every everything in our daily life. Okay.

Phil Lu Zhang, Director and CFO, Kalsyang Limited: So I will answer the second question. So as you know that the company has a very healthy cash balance, on hands. We have more than 16,000,000,000 RMB cash reserves, and, in terms of the operating cash flow, every quarter we, have, you know, incremental more than 1,000,000,000 RMB inflow. So basically, the company does not need, you know, to raise money from the market. So our, you know, capital activity, our fundraising activity in July, the purpose of that activity is to, improve our Hong Kong line liquidity because of the, in the past, we got, you know, public listed in Hong Kong through the, you know, by introduction without issuing new shares.

So that made us with a very poor liquidity in our Hong Kong stock trading. So we want to solve this problem. And, we think that solving this problem could be, you know, both benefited to the company and benefit to our investors, to our shareholders. So that’s why we took a very rare, approach to, you know, launch a public offering, in Hong Kong. So, the the offering was very successful and all the participating investors all made money and our Hong Kong line liquidity, you know, realized a breakthrough and, our liquidity started to improve things the offering.

So what I’m saying is that the company, we consider shareholders as our partners and we consider the shareholder return very important topic. And in the past, we mainly use, shareholder repurchase program to return cash, to the shareholders. We totally already, you know, launched a full full full phases and the total purchase, shares total amount more than about 400,000,000 US dollar. So this time the company, renewed our share repurchase program and also, we, announced our annual dividend policy. We make this as a regular routine and make it, you know, an annual thing.

So basically every year we will consider our operating situations and pay dividends to our shareholders. And this year for the first, you know, for the for the fiscal year of 2025, we announced the 18,000,000 US dollar for the dividend for this year. And our Hong Kong line, you know, liquidity, you know, of the share of the public share offering, we raised 2,200,000,000.0 Hong Kong dollar. That’s roughly $280,000,000 US dollar, but compared with our renewed share repurchase program, which is $250,000,000 plus our 80,000,000 annual dividend. So our announced amount is already higher than the amount that we raised in our earlier public offering.

So that also showed that we, had a good commitment to our shareholders returns. And the one last thing related to our shareholder returns is that our share based compensation as an expenses, we received the comments from shareholders that say, you know, based compensation was once a little bit high, and we controlled these expenses, and from the results, you can see that in the past several quarters, these expenses continued to decline in terms of total amount and in terms of percentage to the revenues. So all above are just evidence or some kind of things that have showed our attitude towards the shareholders return, and we consider this as a very important thing, and we will continue to do that in the future.

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: Okay. So that’s all of our answers to today’s questions, operator.

Conference Operator: Due to time constraint, this concludes today’s question and answer session. At this time, I will turn back the call to Wembe for any additional or closing remarks.

Jonathan Zhang, Founder, Chairman and CEO, Kalsyang Limited: Thank you again for joining us today. If you have any further questions, please contact ComputeIntra Therapeutics. Thank you.

Conference Operator: This concludes today’s conference call. Thank you all for participating. You may now disconnect your lines. Thank you.

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