Congratulations to BOSS Zhipin on Completing Dual Primary Listing on the Main Board of the Hong Kong Stock Exchange | Gaorong Ventures News

On December 22, HR tech company BOSS Zhipin completed its dual primary listing on the Main Board of the Hong Kong Stock Exchange by way of introduction, with its Class A ordinary shares commencing trading on the exchange under the ticker symbol "2076."

Following the dual primary listing, BOSS Zhipin became a company listed on both the Nasdaq Stock Exchange and the Hong Kong Stock Exchange. Each American Depositary Share (ADS) represents two Class A ordinary shares, and the Class A ordinary shares listed on the HKEX Main Board are convertible with the ADSs listed on Nasdaq.

Gaorong Ventures led BOSS Zhipin's Series C round in 2016 as one of the lead investors and participated in multiple subsequent rounds. We warmly congratulate the company on completing its dual primary listing, celebrate the team's latest milestone on its growth journey, and look forward to the company serving an even broader base of enterprises and job seekers while creating lasting social value.

"Hong Kong is an international financial center and a mature capital market connected to the mainland," said Peng Zhao, founder, chairman, and CEO of BOSS Zhipin. "Going forward, we hope to grow together with our shareholders and share the fruits of that growth, following the rules of the Hong Kong stock market."

Zhao added, "To date, we have served one-sixth of China's 600 million non-agricultural workers and one-sixth of its more than 40 million enterprises. Whether in terms of service coverage, depth, or user experience, there remains substantial room for growth. We will stay true to our mission, creating value for our users, employees, and investors — and ultimately, for society and our era."

Hong Kong Listings Become a Trend for Tech Companies

Online Recruitment Market Poised for Rapid Growth

Over the past two years, completing dual primary listings in Hong Kong has emerged as a major trend among Chinese tech companies. BOSS Zhipin noted that with ample cash reserves and healthy cash flow, it chose to list on the Hong Kong Stock Exchange by way of introduction.

Beyond the broader trend among Chinese tech firms, the human resources services market where BOSS Zhipin operates has also drawn market attention for its potential. According to a CIC Consulting report, China's recruitment services market reached approximately RMB 200 billion in revenue in 2021 and is projected to exceed RMB 470 billion by 2026, representing a compound annual growth rate of 18.7%. The online recruitment segment is expected to grow even faster, expanding from RMB 71.4 billion in 2021 to RMB 250.8 billion by 2026 at a CAGR of 28.6%.

Serving 113.2 Million Job Seekers

Tech Investment Drives User Engagement Growth

Through its mobile-first one-on-one chat feature and algorithm-powered intelligent recommendations, BOSS Zhipin has transformed the traditional resume-centric search model of online recruitment, alleviating pain points around poor job-candidate matching and low efficiency in hiring and job searching. This has earned the platform growing user preference.

According to its prospectus, as of September 30, 2022, BOSS Zhipin had cumulatively served 113.2 million verified job seekers and 9.6 million verified enterprises. In the six months ended June 30, 2022, the platform generated an average of 3 billion chat messages per month — equivalent to 1,100 job opportunity-creating chats born every second.

This active user ecosystem stems from BOSS Zhipin's sustained investment in technology. In the first three quarters of 2022, R&D expenses reached RMB 889 million, continuing year-over-year growth. R&D spending was RMB 513 million and RMB 822 million in 2020 and 2021 respectively, with year-over-year growth rates of 58% and 60%. As of June 30, 2022, BOSS Zhipin employed nearly 1,400 R&D personnel.

Technology upgrades have provided strong support for improving platform user experience. In the six months ended June 30, 2022, the "average non-expected conversion rate," a metric measuring job seeker efficiency, reached 69%, while the "effective conversion rate," measuring recruiter efficiency, stood at 40%.

As user experience has continuously improved, BOSS Zhipin's user stickiness and retention have further strengthened. In Q3 2022, the BOSS Zhipin app's average monthly active users (MAU) reached 32.4 million; in the first half of 2022, the app's average daily active users (DAU) as a percentage of average MAU was 27.8% — both leading the industry. The platform's 360-day average active user retention rate rose to 22% in the first half of 2022, 10 percentage points above the industry average for the same period.

With key marketing initiatives such as its sponsorship of the Qatar World Cup, BOSS Zhipin will further expand its reach to broader user bases and regions.

RMB 3.429 Billion Revenue in First Three Quarters of 2022

Six Consecutive Quarters of Profitability

Growing user numbers have formed the foundation for BOSS Zhipin's revenue growth. According to its prospectus, in the first three quarters of 2022, BOSS Zhipin achieved revenue of RMB 3.429 billion, with operating cash flow of RMB 847 million. Revenue was RMB 1.944 billion and RMB 4.259 billion in 2020 and 2021, with year-over-year growth rates of 95% and 119% respectively.

Notably, as the talent-first strategy has become industry consensus, more enterprises are increasing their investment in recruitment. In the 12 months ended June 30, 2022, BOSS Zhipin had 3.8 million paying enterprise customers.

Under non-GAAP measures, excluding share-based compensation expenses, BOSS Zhipin recorded adjusted net profit of RMB 853 million in 2021; in the first three quarters of 2022, this figure reached RMB 740 million. BOSS Zhipin has achieved profitability on an adjusted net profit basis for six consecutive quarters since its IPO, demonstrating stable operations and earning capacity.