KANZHUN LIMITED Continues Share Repurchase Program, Buying Back RMB1.4 Billion Worth of Ordinary Shares

Rhea-AI Summary

KANZHUN (BOSS Zhipin) has repurchased over 6.2 million ordinary shares worth RMB300 million in November 2024. Year-to-date, the company bought back approximately 28.2 million shares valued at RMB1.4 billion (USD200 million), representing 3% of total share capital. The company has fully utilized its March 2024 USD200 million repurchase program and will proceed with an additional USD150 million program announced in August 2024. Both programs have 12-month durations. BOSS Zhipin operates China's largest online recruitment platform, utilizing a Direct Recruitment Model for instant communication between recruiters and job seekers.

Positive

• Completed USD200 million share repurchase program, demonstrating strong cash position
• Initiated additional USD150 million share buyback program
• Repurchased 3% of total share capital, potentially increasing shareholder value
• Market leadership position as China's largest online recruitment platform

Negative

• None.

Insights

Financial Analyst

The significant share buyback program demonstrates strong financial health and management confidence. Completing a $200 million buyback and initiating an additional $150 million program signals robust cash flow generation and commitment to shareholder returns. The 3% reduction in share count will boost EPS and indicates the management views the stock as undervalued. For Chinese tech companies, such aggressive buybacks are relatively rare and particularly meaningful given current market conditions. The company's market-leading position in China's recruitment sector, combined with its innovative direct recruitment model and strong profitability, supports the strategic rationale for this capital allocation decision.

BEIJING, Nov. 29, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED (“BOSS Zhipin” or the “Company”), a leading online recruitment platform in China, today announced that it has repurchased more than 6.2 million ordinary shares in November, valued at more than RMB300 million. Year-to-date, the Company has bought back approximately 28.2 million ordinary shares, amounting to more than RMB1.4 billion (USD200 million), representing 3% of total share capital.

The Company announced a new share repurchase program effective from August 29, 2024 for a 12-month period, under which the Company may additionally repurchase up to USD150 million of its shares (including in the form of American depositary shares). This new share repurchase program operates in conjunction with the existing share repurchase program that became effective on March 20, 2024, also for a 12-month period, under which the Company may repurchase up to USD200 million of its shares (including in the form of ADSs).

As of today, the Company had fully utilized the USD200 million under the prior program and will now proceed with share repurchases under the USD150 million program. These repurchase efforts underscore the management's strong confidence in the Company’s long-term growth and development.

BOSS Zhipin, founded in 2014, is the largest online recruitment platform in China and a pioneer in introducing a next-generation Direct Recruitment Model, which is transforming China’s online recruitment industry. This innovative, mobile-native product facilitates instant, direct communication between recruiters and job seekers, ensuring accurate matching results through its proprietary recommendation algorithms powered by advanced big data and market insights. BOSS Zhipin’s business model highlights its strong profitability, exceptional growth potential, and leading market position.

FAQ

How much has KANZHUN spent on share repurchases in 2024?

KANZHUN has spent RMB1.4 billion (USD200 million) on share repurchases in 2024, buying back approximately 28.2 million ordinary shares.

What is the size of KANZHUN's new share repurchase program announced in August 2024?

The new share repurchase program announced in August 2024 allows for up to USD150 million in share repurchases over a 12-month period.

What percentage of KANZHUN's total share capital was repurchased in 2024?

The company has repurchased shares representing 3% of its total share capital in 2024.

How many shares did KANZHUN repurchase in November 2024?

KANZHUN repurchased more than 6.2 million ordinary shares valued at more than RMB300 million in November 2024.