0001104659-22-127567 | 6-K | XBRL Viewer

Print Document View Excel Document

Cover Page	6 Months Ended
Cover Page	Jun. 30, 2022
Document Information [Line Items]
Entity Registrant Name	Kanzhun Ltd
Entity Central Index Key	0001842827
Document Type	6-K
Document Period End Date	Jun. 30, 2022
Amendment Flag	false
Current Fiscal Year End Date	--12-31

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	¥ 11,158,756	¥ 12,174,097	¥ 11,341,758
Short-term investments	2,764,368	812,225	884,996
Accounts receivable	4,511	2,013	1,002
Amounts due from related parties	10,050	9,583	6,615
Prepayments and other current assets	549,174	520,589	724,583
Total current assets	14,486,859	13,518,507	12,958,954
Non-current assets
Property, equipment and software, net	550,894	546,106	369,126
Intangible assets, net	390	413	458
Right-of-use assets, net	310,445	303,609	309,085
Other non-current assets	4,000	4,000	4,000
Total non-current assets	865,729	854,128	682,669
Total assets	15,352,588	14,372,635	13,641,623
Current liabilities (including amounts of the consolidated VIE and VIE's subsidiaries without recourse to the primary beneficiary of RMB2,762,123 and RMB2,811,310 as of December 31, 2021 and June 30, 2022, respectively)
Accounts payable	51,763	135,273	52,963
Deferred revenue	2,038,669	1,979,056	1,958,570
Other payables and accrued liabilities	638,947	578,981	645,138
Operating lease liabilities, current	150,513	146,134	127,531
Total current liabilities	2,879,892	2,839,444	2,784,202
Non-current liabilities (including amounts of the consolidated VIE and VIE's subsidiaries without recourse to the primary beneficiary of RMB178,844 and RMB155,954 as of December 31, 2021 and June 30, 2022, respectively)
Operating lease liabilities, non-current	163,800	166,309	183,365
Total non-current liabilities	163,800	166,309	183,365
Total liabilities	3,043,692	3,005,753	2,967,567
Commitments and contingencies (Note 17)
Shareholders' equity
Ordinary shares (US$0.0001 par value; 1,500,000,000 shares authorized; 748,953,103 Class A ordinary shares issued and 727,855,233 outstanding, 140,830,401 Class B ordinary shares issued and outstanding as of December 31, 2021; 749,323,103 Class A ordinary shares issued and 730,777,761 outstanding, 140,830,401 Class B ordinary shares issued and outstanding as of June 30, 2022)	560	559	554
Treasury shares (21,097,870 and 18,545,342 shares as of December 31, 2021 and June 30, 2022, respectively)	(346,532)	(267,982)
Additional paid-in capital	15,160,206	14,965,856	14,624,386
Accumulated other comprehensive (loss)/income	895,743	281,247	(257,765)
Accumulated deficit	(3,401,081)	(3,612,798)	(3,693,119)
Total shareholders' equity	12,308,896	11,366,882	10,674,056
Total liabilities and shareholders' equity	¥ 15,352,588	¥ 14,372,635	¥ 13,641,623

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands	Sep. 30, 2022 CNY (¥) shares	Jun. 30, 2022 CNY (¥) shares	Dec. 31, 2021 CNY (¥) shares
Current liabilities \| ¥	¥ 2,879,892	¥ 2,839,444	¥ 2,784,202
Non current liabilities \| ¥	¥ 163,800	¥ 166,309	¥ 183,365
Common stock shares authorized \| shares	1,500,000,000	1,500,000,000	1,500,000,000
Treasury stock common shares \| shares	17,454,538	18,545,342	21,097,870
Class A ordinary shares
Common stock shares issued \| shares	749,323,103	749,323,103	748,953,103
Common stock shares outstanding \| shares	731,868,565	730,777,761	727,855,233
Class B ordinary shares
Common stock shares issued \| shares	140,830,401	140,830,401	140,830,401
Common stock shares outstanding \| shares	140,830,401	140,830,401	140,830,401
VIE and VIE's subsidiaries
Current liabilities \| ¥	¥ 2,765,437	¥ 2,848,672	¥ 2,789,346
Non current liabilities \| ¥	154,775	155,954	178,844
VIE and VIE's subsidiaries \| Nonrecourse
Current liabilities \| ¥	2,752,861	2,811,310	2,762,123
Non current liabilities \| ¥	¥ 154,775	¥ 155,954	¥ 178,844

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Revenues	¥ 2,250,224	¥ 1,956,717	¥ 3,428,787	¥ 3,168,478
Operating cost and expenses
Cost of revenues	(351,578)	(250,029)	(552,466)	(404,863)
Sales and marketing expenses	(921,900)	(1,152,780)	(1,318,843)	(1,569,199)
Research and development expenses	(598,425)	(413,728)	(888,655)	(623,051)
General and administrative expenses	(316,035)	(1,748,612)	(472,099)	(1,871,950)
Total operating cost and expenses	(2,187,938)	(3,565,149)	(3,232,063)	(4,469,063)
Other operating income, net	10,743	7,657	14,245	10,948
(Loss)/Income from operations	73,029	(1,600,775)	210,969	(1,289,637)
Investment income	17,075	8,629	31,112	15,791
Financial income, net	24,185	4,017	78,013	6,754
Foreign exchange (loss)/gain	4,694	(586)	10,136	(317)
Other expenses, net	(24,539)	(1,597)	3,682	(6,669)
(Loss)/Income before income tax expense	94,444	(1,590,312)	333,912	(1,274,078)
Income tax expense	(14,123)		(41,874)	(30,066)
Net (loss)/income	80,321	(1,590,312)	292,038	(1,304,144)
Accretion on convertible redeemable preferred shares to redemption value		(164,065)		(164,065)
Net (loss)/income attributable to ordinary shareholders	80,321	(1,754,377)	292,038	(1,468,209)
Other comprehensive income
Foreign currency translation adjustments	539,012	7,884	1,153,508	48,269
Total comprehensive (loss)/income	¥ 619,333	¥ (1,582,428)	¥ 1,445,546	¥ (1,255,875)
Weighted average number of ordinary shares used in computing net (loss)/income per share
Basic	869,427,036	147,308,942	870,385,113	420,605,543
Diluted	917,484,059	147,308,942	916,912,571	420,605,543
Net (loss)/income per share attributable to ordinary shareholders
Basic	¥ 0.09	¥ (11.91)	¥ 0.34	¥ (3.49)
Diluted	¥ 0.09	¥ (11.91)	¥ 0.32	¥ (3.49)
Online recruitment services to enterprise customers
Revenues
Revenues	¥ 2,227,184	¥ 1,939,919	¥ 3,391,648	¥ 3,137,054
Others
Revenues
Revenues	¥ 23,040	¥ 16,798	¥ 37,139	¥ 31,424

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Millions	Class A ordinary shares Ordinary shares IPO CNY (¥) shares	Class A ordinary shares Additional paid-in capital IPO CNY (¥)	Class A ordinary shares IPO CNY (¥)	Class A ordinary shares shares	Class B ordinary shares Ordinary shares TECHWOLF LIMITED CNY (¥) shares	Class B ordinary shares Ordinary shares CNY (¥) shares	Class B ordinary shares Additional paid-in capital TECHWOLF LIMITED CNY (¥)	Class B ordinary shares Additional paid-in capital CNY (¥)	Class B ordinary shares TECHWOLF LIMITED CNY (¥)	Class B ordinary shares CNY (¥) shares	Ordinary shares CNY (¥) shares	Treasury shares CNY (¥) shares	Additional paid-in capital CNY (¥)	Accumulated other comprehensive (loss)/income CNY (¥)	Accumulated deficit CNY (¥)	CNY (¥) shares	USD ($) shares
Balance (in shares) at Dec. 31, 2020 \| shares				7,875,787						121,108,037	128,983,824
Balance (in shares) at Dec. 31, 2020 \| shares												3,657,853
Balance at Dec. 31, 2020											¥ 81		¥ 452,234	¥ (130,387)	¥ (2,622,045)	¥ (2,300,117)
Net (loss)/income															(1,590,312)	(1,590,312)
Foreign currency translation adjustments														7,884		7,884
Share-based compensation													202,887			202,887
Accretion on convertible redeemable preferred shares to redemption value													(164,065)			(164,065)
Repurchase and cancellation of ordinary shares, Shares \| shares						(1,181,339)
Repurchase and cancellation of ordinary shares, Value						¥ (1)		¥ (42,263)		¥ (42,264)
Issuance of ordinary shares, Shares \| shares	110,400,000
Issuance of ordinary shares, Value	¥ 70	¥ 6,406,802	¥ 6,406,872
Conversion of convertible redeemable preferred shares, Shares \| shares											551,352,134
Conversion of convertible redeemable preferred shares, Value											¥ 353		5,854,308			5,854,661
Exercise of share-based awards (in shares) \| shares					24,745,531						3,657,853	(3,657,853)
Exercise of share-based awards					¥ 16		¥ 1,506,346		¥ 1,506,362		¥ 2					2
Balance (in shares) at Jun. 30, 2021 \| shares											817,958,003
Balance at Jun. 30, 2021											¥ 521		14,216,249	(122,503)	(4,212,357)	9,881,910
Balance (in shares) at Dec. 31, 2020 \| shares				7,875,787						121,108,037	128,983,824
Balance (in shares) at Dec. 31, 2020 \| shares												3,657,853
Balance at Dec. 31, 2020											¥ 81		452,234	(130,387)	(2,622,045)	(2,300,117)
Net (loss)/income															(1,304,144)	(1,304,144)
Foreign currency translation adjustments														48,269		48,269
Share-based compensation													301,812			301,812
Accretion on convertible redeemable preferred shares to redemption value													(164,065)			(164,065)
Repurchase and cancellation of ordinary shares, Shares \| shares						(1,181,339)
Repurchase and cancellation of ordinary shares, Value						¥ (1)		¥ (42,263)		¥ (42,264)
Issuance of ordinary shares, Shares \| shares	110,400,000
Issuance of ordinary shares, Value	¥ 70	¥ 6,406,802	¥ 6,406,872
Conversion of convertible redeemable preferred shares, Shares \| shares											551,352,134
Conversion of convertible redeemable preferred shares, Value											¥ 353		5,854,308			5,854,661
Exercise of share-based awards (in shares) \| shares					24,745,531
Exercise of share-based awards					¥ 16		¥ 1,506,346		¥ 1,506,362
Exercise of share-based awards (in shares) \| shares											47,697,284	(3,657,853)
Exercise of share based awards											¥ 30		167,450			167,480
Balance (in shares) at Sep. 30, 2021 \| shares											861,997,434
Balance at Sep. 30, 2021											¥ 549		14,482,624	(82,118)	(3,926,189)	¥ 10,474,866
Balance (in shares) at Dec. 31, 2021 \| shares				727,855,233						140,830,401	868,685,634
Balance (in shares) at Dec. 31, 2021 \| shares												21,097,870				21,097,870	21,097,870
Balance at Dec. 31, 2021											¥ 554		14,624,386	(257,765)	(3,693,119)	¥ 10,674,056
Net (loss)/income															80,321	80,321
Foreign currency translation adjustments														539,012		539,012
Share-based compensation													283,046			283,046
Issuance of ordinary shares for share award plan \| shares												370,000
Conversion of convertible redeemable preferred shares, Shares \| shares				551,352,134
Exercise of share-based awards (in shares) \| shares											7,069,594	(7,069,594)
Exercise of share-based awards											¥ 5		58,424			58,429
Repurchase of ordinary shares (in shares) \| shares				4,147,066							(4,147,066)	4,147,066
Repurchase of ordinary shares												¥ (267,982)				¥ (268,000)	$ (40.0)
Balance (in shares) at Jun. 30, 2022 \| shares				730,777,761						140,830,401	871,608,162
Balance (in shares) at Jun. 30, 2022 \| shares												18,545,342				18,545,342	18,545,342
Balance at Jun. 30, 2022											¥ 559	¥ (267,982)	14,965,856	281,247	(3,612,798)	¥ 11,366,882
Balance (in shares) at Dec. 31, 2021 \| shares				727,855,233						140,830,401	868,685,634
Balance (in shares) at Dec. 31, 2021 \| shares												21,097,870				21,097,870	21,097,870
Balance at Dec. 31, 2021											¥ 554		14,624,386	(257,765)	(3,693,119)	¥ 10,674,056
Net (loss)/income															292,038	292,038
Foreign currency translation adjustments														1,153,508		1,153,508
Share-based compensation													447,961			447,961
Issuance of ordinary shares for share award plan \| shares												370,000
Conversion of convertible redeemable preferred shares, Shares \| shares				551,352,134
Exercise of share-based awards (in shares) \| shares											9,384,732	(9,384,732)
Exercise of share based awards											¥ 6		87,859			87,865
Repurchase of ordinary shares (in shares) \| shares				5,371,400							(5,371,400)	5,371,400
Repurchase of ordinary shares																(346,500)	$ (51.2)
Repurchase of ordinary shares												¥ (346,532)				¥ (346,532)
Balance (in shares) at Sep. 30, 2022 \| shares				731,868,565						140,830,401	872,698,966
Balance (in shares) at Sep. 30, 2022 \| shares												17,454,538				17,454,538	17,454,538
Balance at Sep. 30, 2022											¥ 560	¥ (346,532)	¥ 15,160,206	¥ 895,743	¥ (3,401,081)	¥ 12,308,896

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net (loss)/income	¥ 80,321	¥ (1,590,312)	¥ 292,038	¥ (1,304,144)
Adjustments to reconcile net (loss)/income to net cash generated from operating activities:
Share-based compensation	283,046	202,887	447,961	301,812
Issuance of Class B ordinary shares to TECHWOLF LIMITED (Note 13)		1,506,362		1,506,362
Depreciation and amortization	59,748	35,139	98,022	55,464
Loss from disposal of property, equipment and software	7	42	85	49
Foreign exchange loss/(gain)	(4,694)	586	(10,136)	317
Amortization of right-of-use assets	68,979	43,453	106,479	68,076
Unrealized investment income	(2,229)	(1,294)	(14,291)	(6,359)
Changes in operating assets and liabilities:
Accounts receivable	(1,011)	4,404	(3,509)	6,260
Prepayments and other current assets	87,319	(98,442)	30,794	(278,684)
Amounts due from related parties	(2,968)	1,037	(3,435)	3,131
Other non-current assets				(4,000)
Accounts payable	17,974	62,080	(663)	12,651
Deferred revenue	20,486	670,129	80,099	679,370
Other payables and accrued liabilities	(64,074)	39,347	(71,523)	125,522
Operating lease liabilities	(61,956)	(38,875)	(104,422)	(59,356)
Net cash generated from operating activities	480,948	836,543	847,499	1,106,471
Cash flows from investing activities
Purchase of property, equipment and software	(173,207)	(81,374)	(280,672)	(163,765)
Proceeds from disposal of property, equipment and software	298	9	326	14
Purchase of short-term investments	(1,450,000)	(2,164,000)	(3,785,740)	(3,390,000)
Proceeds from maturity of short-term investments	1,525,000	2,078,000	1,975,000	2,748,000
Net cash used in investing activities	(97,909)	(167,365)	(2,091,086)	(805,751)
Cash flows from financing activities
Proceeds from IPO, net of issuance cost		6,423,798		6,406,872
Proceeds from exercise of share options	180,166		238,104	14,556
Net cash generated from/(used in) financing activities	(87,816)	6,412,214	(41,278)	6,409,844
Effect of exchange rate changes on cash and cash equivalents	537,116	9,364	1,101,863	47,598
Net increase in cash and cash equivalents	832,339	7,090,756	(183,002)	6,758,162
Cash and cash equivalents at beginning of the period	11,341,758	3,998,203	11,341,758	3,998,203
Cash and cash equivalents at end of the period	12,174,097	11,088,959	11,158,756	10,756,365
Supplemental cash flow disclosures
Cash paid for income tax	72,083		73,536
Supplemental schedule of non-cash investing and financing activities
Accretion on convertible redeemable preferred shares to redemption value		164,065		164,065
Unpaid consideration for share repurchase			67,150
Changes in payables for purchase of property, equipment and software	64,336	(1,895)	(537)	(21,221)
Class A ordinary shares
Cash flows from financing activities
Repurchase of ordinary shares	¥ (267,982)		¥ (279,382)
Class B ordinary shares
Cash flows from financing activities
Repurchase of ordinary shares		¥ (11,584)		¥ (11,584)

PRINCIPAL ACTIVITIES AND ORGANIZATION

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PRINCIPAL ACTIVITIES AND ORGANIZATION

PRINCIPAL ACTIVITIES AND ORGANIZATION

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION

(a)	Principal activities

KANZHUN LIMITED (“Kanzhun” or the “Company”) was incorporated under the laws of the Cayman Islands on January 16, 2014 as an exempted company with limited liability. The Company, its subsidiaries, consolidated variable interest entity (the “VIE”) and VIE’s subsidiaries (collectively referred to as the “Group”) run an online recruitment platform called “BOSS Zhipin” in the People’s Republic of China (“PRC”).

The BOSS Zhipin platform mainly focuses on assisting the recruitment process between job seekers and employers. Through BOSS Zhipin platform, employers, mainly executives or middle-level managers of enterprises, could participate directly in the recruiting process.

(b)	Organization of the Group

As of June 30, 2022, the Company’s principal subsidiaries and consolidated VIE are as follows:


			Attributable
	Place of	Date of	equity interest of
Name of subsidiaries	incorporation	incorporation	the Group	Principal activities

Techfish Limited	Hong Kong, China	February 14, 2014	100%	Investment holding in Hong Kong
Beijing Glory Wolf Co., Ltd. (“Glory”, or the “WFOE”)	Beijing, China	May 7, 2014	100%	Management consultancy and technical services in the PRC

	Place of	Date of	Economic
Name of VIE	incorporation	incorporation	interest held	Principal activities

Beijing Huapin Borui Network Technology Co., Ltd. (“Huapin”)	Beijing, China	December 25, 2013	100%	Online recruitment service in the PRC

(c)	Consolidated variable interest entity

In order to comply with the PRC laws and regulations which prohibit or restrict foreign investments into companies involved in restricted businesses, the Group operates its Apps, websites and other restricted businesses in the PRC through a PRC domestic company and its subsidiaries, whose equity interests are held by certain management members of the Company (“Registered Shareholders”). The Company entered into a series of contractual arrangements, which was updated in September 2022, with such PRC domestic company and its respective Registered Shareholders, which enables the Company to have the power to direct activities of the VIE that most significantly affect the economic performance of the VIE and receive substantially all of the economic benefits from the VIE that could be significant to the VIE. Accordingly, the Company is determined to be the primary beneficiary of the VIE for accounting purposes under U.S. GAAP and therefore the Group consolidates the VIE’s results of operations, assets and liabilities in the Group’s consolidated financial statements for all the periods presented. The principal terms of the agreements entered amongst the VIE, the Registered Shareholders and the WFOE are further described below.

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(c)	Consolidated variable interest entity (continued)

Exclusive technology and service co-operation agreement

Pursuant to the exclusive technology and service co-operation agreement, the VIE has agreed to engage the WFOE as the exclusive provider of technical consultancy, technical support and other services as agreed. The VIE shall pay service fees to the WFOE, which shall be equivalent to the total consolidated profit of the VIE and its subsidiaries, after offsetting the prior-year accumulated loss (if any), operating cost and expenses, taxes and other statutory contributions. Notwithstanding the foregoing, the WFOE shall have the right to adjust the level of the service fees by taking into account such factors as (a) the complexity and difficulty of the services, (b) the time taken for the services, (c) the scope and commercial value of the management, technical consulting and other services, (d) the scope and commercial value of intellectual property licensing and leasing services, and (e) the market reference price for services of similar kinds. The VIE shall pay the service fees to the WFOE within 30 days after the delivering of payment instructions by the WFOE.

The exclusive technology and service co-operation agreement shall remain effective until, among others, the date on which the WFOE or its designated party is formally registered as the shareholder of the VIE, in the case where the WFOE is permitted by the PRC laws to directly hold the VIE’s shares and the WFOE and its subsidiaries and branches are allowed to engage in the business being currently operated by the VIE.

Exclusive purchase option agreement

Pursuant to the exclusive purchase option agreement, the Registered Shareholders of the VIE have granted the WFOE, or its offshore parent company or its directly or indirectly owned subsidiaries, the exclusive and irrevocable right to purchase all or any part of the respective equity interests in the VIE from the Registered Shareholders at any time. The VIE and the Registered Shareholders irrevocably covenanted that unless with prior written consent by the WFOE, the VIE shall not sell, transfer, pledge, or otherwise dispose all or any part of its assets, and the Registered Shareholders shall not sell, transfer, pledge, or otherwise dispose all or any part of their equity interest in the VIE, other than the creation of the pledge of the VIE’s equity interest pursuant to the contractual arrangements. The purchase price payable by the WFOE or its designee in respect of the transfer of the entire equity interest and/or total assets of the VIE shall be the nominal price, or the minimum price required by competent PRC authorities or PRC laws. However, in any event, subject to the provisions and requirements of PRC laws, the price paid by the WFOE and/or its designee to the VIE and/or Registered Shareholders at any such price shall be returned by the VIE and/or Registered Shareholders to the WFOE at the time and in the form requested by the WFOE.

The exclusive purchase option agreement shall remain effective for ten years with the WFOE having the option to renew it until, among others, all the equity interest in and/or all assets of the VIE has been transferred to the WFOE and/or its designee (registration has been completed for the change of members), and the WFOE and its subsidiaries and branches can legally engage in the business of the VIE.

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(c)	Consolidated variable interest entity (continued)

Equity pledge agreement

Pursuant to the equity pledge agreement, the Registered Shareholders of the VIE have pledged 100% equity interests in the VIE to the WFOE to guarantee performance of their contractual obligations under the contractual arrangements and all liabilities, monetary debts or other payment obligations arising out of or in relation with the contractual arrangements. In the event of a breach by the VIE or any of its Registered Shareholders of contractual obligations under the exclusive technology and service co-operation agreement, and the equity pledge agreement, as the case may be, the WFOE, as pledgee, will have the right to (1) demand all the outstanding payment due according to the exclusive technology and service co-operation agreement, and/or (2) exercise its right of pledge according to the equity pledge agreement, or otherwise dispose of the pledged equity interest in accordance with applicable Laws.

The equity pledge agreement shall remain valid until, among others, the VIE and the Registered Shareholders have recorded the release of such pledged equity interests in the register of members of the VIE and completed relevant deregistration procedure.

Spousal consent letter

Pursuant to the spousal consent letter, the spouse of each Registered Shareholder who is a natural person, unconditionally and irrevocably agreed that the equity interests in the VIE held by such Registered Shareholder will be disposed of pursuant to the equity pledge agreement, the exclusive purchase option agreement and the power of attorney (as the case may be). Each of their spouses agreed not to assert any rights over the equity interests in the VIE held by such Registered Shareholder. In addition, in the event that any spouse obtains any equity interests in VIE held by such Registered Shareholder for any reason, he or she agreed to be bound by the equity pledge agreement, the exclusive purchase option agreement and the power of attorney.

Power of attorney

Pursuant to the power of attorney, each of the Registered Shareholders appointed the WFOE and/or its designee as their sole and exclusive agent to act on their behalf, including but not limited to (1) to propose, convene and attend shareholders meetings and sign minutes and resolutions, (2) to exercise all shareholder rights that they are entitled to under PRC law and the relevant articles of association, including but not limited to, the right to vote and the right to sell, transfer, pledge or disposal of all or part of the equity interests owned by such shareholders; and (3) to elect, designate and appoint the legal representative, chairman, directors, supervisors, general manager and other senior executives of the VIE.

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(d)	Risks in relations to the VIE structure

The following table set forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the consolidated VIE and VIE’s subsidiaries taken as a whole, which were included in the Group’s unaudited interim condensed consolidated financial statements with intercompany transactions eliminated:


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
ASSETS
Current assets
Cash and cash equivalents	864,851	1,245,088
Short-term investments	864,557	802,159
Accounts receivable	1,002	1,946
Amounts due from Group companies	86,989	100,805
Amounts due from related parties	6,615	9,583
Prepayments and other current assets	487,598	450,841
Total current assets	2,311,612	2,610,422
Non-current assets
Property, equipment and software, net	368,381	544,171
Intangible assets, net	458	413
Right-of-use assets, net	301,288	287,032
Other non-current assets	4,000	4,000
Total non-current assets	674,127	835,616
Total assets	2,985,739	3,446,038
LIABILITIES
Current liabilities
Accounts payable	52,938	135,098
Deferred revenue	1,958,570	1,979,019
Other payables and accrued liabilities	626,151	557,568
Amounts due to Group companies	27,223	37,362
Operating lease liabilities, current	124,464	139,625
Total current liabilities	2,789,346	2,848,672
Non-current liabilities
Operating lease liabilities, non-current	178,844	155,954
Total non-current liabilities	178,844	155,954
Total liabilities	2,968,190	3,004,626

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(d)	Risks in relations to the VIE structure (continued)


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Total revenues	1,956,717	2,250,118
Cost of revenues	(250,007)	(351,566)
Net (loss)/income	(41,429)	162,265


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Net cash generated from operating activities	861,135	486,939
Net cash used in investing activities	(167,365)	(106,702)
Net cash used in financing activities	(438,586)	—
Net increase in cash and cash equivalents	255,184	380,237
Cash and cash equivalents at beginning of the period	183,199	864,851
Cash and cash equivalents at end of the period	438,383	1,245,088

Under the contractual arrangements with the VIE, the Company has the power to direct activities of the VIE through the WFOE that most significantly impact the VIE such as having assets transferred out of the VIE at its discretion. Therefore, the Company considers that there is no asset of the VIE that can be used to settle obligations of the VIE except for registered capital and PRC statutory reserves of the VIE amounting to RMB9,002 and RMB9,002 as of December 31, 2021 and June 30, 2022, respectively. Since the VIE was incorporated as a limited liability company under the PRC Company Law, the creditors do not have recourse to the general credit of the WFOE for all the liabilities of the VIE.

The Group believes that the contractual arrangements between or among the WFOE, VIE and the Registered Shareholders are following PRC laws and regulations, as applicable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. On March 15, 2019, the PRC Foreign Investment Law was approved and took effect from January 1, 2020. Since the PRC Foreign Investment Law is relatively new, there are substantial uncertainties exist with respect to its implementation and interpretation and the possibility that the VIE will be deemed as a foreign-invested enterprise and subject to relevant restrictions in the future shall not be excluded. If the contractual arrangements establishing the Company’s VIE structure are found to be in violation of any existing law and regulations or future PRC laws and regulations, the relevant PRC government authorities will have broad discretion in dealing with such violation, including, without limitation, levying fines, confiscating the Group’s income or the income from the VIE, revoking the Group’s business licenses or the business licenses, requiring the Group to restructure its ownership structure or operations and requiring the Group to discontinue any portion or all of the Group’s value-added businesses or other prohibited businesses. Any of these actions could cause significant disruption to the Company’s business operations and have a severe adverse impact on the Company’s cash flows, financial position and operating performance. If the imposing of these penalties causes the WFOE to lose its rights to direct the activities of and receive economic benefits from the VIE, which in turn may restrict the Company’s ability to consolidate and reflect in its financial statements the financial position and results of operations of its VIE.

(e)	COVID-19 impact and liquidity

The Group’s financial performance was impacted by the COVID-19 although the pandemic had been largely contained in China. However, based on the assessment on the Group’s liquidity and financial positions, the Group believes that its current cash and cash equivalents will be sufficient to enable it to meet its anticipated working capital requirements and capital expenditures for at least the next twelve months from the date these unaudited interim condensed consolidated financial statements are issued.

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION

(a)	Principal activities

(b)	Organization of the Group

As of September 30, 2022, the Company’s principal subsidiaries and consolidated VIE are as follows:


			Attributable
	Place of	Date of	equity interest of
Name of subsidiaries	incorporation	incorporation	the Group	Principal activities

Techfish Limited	Hong Kong, China	February 14, 2014	100%	Investment holding in Hong Kong
Beijing Glory Wolf Co., Ltd. (“Glory”, or the “WFOE”)	Beijing, China	May 7, 2014	100%	Management consultancy and technical service in the PRC

	Place of	Date of	Economic
Name of VIE	incorporation	incorporation	interest held	Principal activities
Beijing Huapin Borui Network Technology Co., Ltd. (“Huapin”)	Beijing, China	December 25, 2013	100%	Online recruitment service in the PRC

(c)	Consolidated variable interest entity

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(c)	Consolidated variable interest entity (continued)

Exclusive technology and service co-operation agreement

Exclusive purchase option agreement

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(c)	Consolidated variable interest entity (continued)

Equity pledge agreement

Spousal consent letter

Power of attorney

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(d)	Risks in relations to the VIE structure


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
ASSETS
Current assets
Cash and cash equivalents	864,851	873,872
Short-term investments	864,557	1,329,802
Accounts receivable	1,002	3,929
Amounts due from Group companies	86,989	125,745
Amounts due from related parties	6,615	10,050
Prepayments and other current assets	487,598	480,213
Total current assets	2,311,612	2,823,611
Non-current assets
Property, equipment and software, net	368,381	548,476
Intangible assets, net	458	390
Right-of-use assets, net	301,288	294,905
Other non-current assets	4,000	4,000
Total non-current assets	674,127	847,771
Total assets	2,985,739	3,671,382
LIABILITIES
Current liabilities
Accounts payable	52,938	51,678
Deferred revenue	1,958,570	2,036,728
Other payables and accrued liabilities	626,151	521,066
Amounts due to Group companies	27,223	12,576
Operating lease liabilities, current	124,464	143,389
Total current liabilities	2,789,346	2,765,437
Non-current liabilities
Operating lease liabilities, non-current	178,844	154,775
Total non-current liabilities	178,844	154,775
Total liabilities	2,968,190	2,920,212

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(d)	Risks in relations to the VIE structure (continued)


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Total revenues	3,168,478	3,427,797
Cost of revenues	(404,796)	(552,380)
Net income	274,608	319,165


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Net cash generated from operating activities	1,158,919	777,516
Net cash used in investing activities	(795,751)	(733,351)
Net cash used in financing activities	(444,239)	(35,144)
Net (decrease)/increase in cash and cash equivalents	(81,071)	9,021
Cash and cash equivalents at beginning of the period	183,199	864,851
Cash and cash equivalents at end of the period	102,128	873,872

Under the contractual arrangements with the VIE, the Company has the power to direct activities of the VIE through the WFOE that most significantly impact the VIE such as having assets transferred out of the VIE at its discretion. Therefore, the Company considers that there is no asset of the VIE that can be used to settle obligations of the VIE except for registered capital and PRC statutory reserves of the VIE amounting to RMB9,002 and RMB9,002 as of December 31, 2021 and September 30, 2022, respectively. Since the VIE was incorporated as a limited liability company under the PRC Company Law, the creditors do not have recourse to the general credit of the WFOE for all the liabilities of the VIE.

The Group believes that the contractual arrangements between or among the WFOE, VIE and the Registered Shareholders are following PRC laws and regulations, as applicable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. On March 15, 2019, the PRC Foreign Investment Law was approved and took effect from January 1, 2020. Since the PRC Foreign Investment Law is relatively new, there are substantial uncertainties exist with respect to its implementation and interpretation and the possibility that the VIE will be deemed as a foreign-invested enterprise and subject to relevant restrictions in the future shall not be excluded. If the contractual arrangements establishing the Company’s VIE structure are found to be in violation of any existing law and regulations or future PRC laws and regulations, the relevant PRC government authorities will have broad discretion in dealing with such violation, including, without limitation, levying fines, confiscating the Group’s income or the income from the VIE, revoking the Group’s business licenses or the business licenses, requiring the Group to restructure its ownership structure or operations and requiring the Group to discontinue any portion or all of the Group’s value-added businesses or other prohibited businesses. Any of these actions could cause significant disruption to the Group’s business operations and have a severe adverse impact on the Group’s cash flows, financial position and operating performance. If the imposing of these penalties causes the WFOE to lose its rights to direct the activities of and receive economic benefits from the VIE, which in turn may restrict the Company’s ability to consolidate and reflect in its financial statements the financial position and results of operations of its VIE.

1.	PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED)

(e)	COVID-19 impact and liquidity

PRINCIPAL ACCOUNTING POLICIES

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PRINCIPAL ACCOUNTING POLICIES

PRINCIPAL ACCOUNTING POLICIES

2.	PRINCIPAL ACCOUNTING POLICIES

2.1	Basis of presentation

Significant accounting policies followed by the Group in the preparation of its accompanying unaudited interim condensed consolidated financial statements are summarized below.

2.2	Basis of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIE and VIE’s subsidiaries for which the Company is the ultimate primary beneficiary.

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

The Company applies the guidance codified in ASC 810, Consolidations on accounting for the VIE, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. A VIE is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns; or (c) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are on behalf of the investor with disproportionately fewer voting rights.

All transactions and balances between the Company, its subsidiaries, the consolidated VIE and VIE’s subsidiaries have been eliminated upon consolidation.

2.3	Use of estimates

The preparation of the unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the unaudited interim condensed consolidated financial statements and accompanying notes. Accounting estimates reflected in the Group’s unaudited interim condensed consolidated financial statements include but are not limited to the useful lives of property, equipment and software, impairment of long-lived assets, valuation allowance for deferred tax assets, valuation of ordinary shares and share-based compensation. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable under current circumstances. Actual results could differ from those estimates.

2.4	Foreign currency

The Group’s reporting currency is RMB. The functional currency of the Company and subsidiaries incorporated in Hong Kong and United States of America, is the United States dollars (“US$”). The functional currency of the Group’s PRC subsidiaries, consolidated VIE and VIE’s subsidiaries is RMB. The determination of the respective functional currency is based on the criteria of ASC 830, Foreign Currency Matters.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.4	Foreign currency (continued)

Transactions denominated in currencies other than the functional currency are translated into the functional currency of the entity at the exchange rates quoted by authoritative banks prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Exchange gain or loss resulting from those foreign currency transactions denominated in foreign currencies is recorded in the Unaudited Interim Condensed Consolidated Statements of Comprehensive (Loss)/Income.

The financial statements of the Company and subsidiaries located outside of the PRC are translated from their functional currency into RMB. Their assets and liabilities are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gain and loss are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive income in the consolidated financial statements.

2.5	Fair value measurement

Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.

Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount and the measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial assets and liabilities of the Group mainly consist of cash and cash equivalents, short-term investments, accounts receivables, amounts due from related parties, prepayments and other current assets, accounts payable, certain accrued expenses and other current liabilities. Except for short-term investments, the carrying values of other financial assets and liabilities approximate their fair values due to the short-term maturity of these instruments. The Group reports short-term investments at fair value based on Level 2 measurement.

2.6	Cash and cash equivalents

Cash includes cash on hand and deposits held by financial institutions that can be added to or withdrawn without limitation or restriction. Cash equivalents represent short-term, highly liquid investments that are readily convertible to known amounts of cash and with original maturities of three months or less.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.7	Short-term investments

Short-term investments are wealth management products issued by commercial banks or other financial institutions, which contains fixed or variable interest with original maturities within one year. These investments are stated at fair value. Changes in the fair value are reflected in investment income in the Consolidation Statements of Comprehensive (Loss)/Income.

2.8	Accounts receivable

Accounts receivable are presented net of allowance for doubtful accounts (if any). The Group provides general and specific provisions for bad debts when facts and circumstances indicate that the receivables are unlikely to be collected. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. No allowance for doubtful accounts was recognized for the six months ended June 30, 2021 and 2022.

2.9	Property, equipment and software

Property, equipment and software are stated at cost less accumulated depreciation and impairment, if any. Property, equipment and software are depreciated at rates sufficient to write off their cost less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows:


Category		Estimated useful lives
Electronic equipment		3-5 years
Leasehold improvement		Shorter of lease term or estimated useful life of the assets
Furniture and fixtures		5 years
Motor vehicles		3-5 years
Software		5 years

The majority of electronic equipment includes servers. The Group recognized the gain or loss on the disposal of property, equipment and software in the Unaudited Interim Condensed Consolidated Statements of Comprehensive (Loss)/Income.

2.10	Intangible assets

Intangible assets purchased are recognized and measured at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight-line method over the estimated useful lives as below:


Category		Estimated useful lives
Domains		10 years

The estimated useful lives of domains are the periods over which they are expected to be available for use by the Group, which are mainly determined based on the periods of effective registration of the domains.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.11	Impairment of long-lived assets

Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than that the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the asset and its eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the asset, the Group recognizes an impairment loss based on the excess of the carrying value of the asset over the fair value of the asset. No impairment of long-lived assets was recognized for the six months ended June 30, 2021 and 2022.

2.12	Revenue recognition

The Group accounted for revenue under ASC 606, Revenue from Contracts with Customers, and all periods have been presented under ASC 606. Consistent with the criteria of ASC 606, the Group recognizes revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the Group expects to receive in exchange for those services.

To achieve that core principle, the Group applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) a performance obligation is satisfied.

According to ASC 606, revenue is recognized net of value-added tax (“VAT”) when or as the control of services is transferred to a customer. Depending on the terms of the contract, control of services may be transferred over time or at a point in time. Control of services is transferred over time if the Group: (i) provides all of the benefits received and consumed simultaneously by the customer; (ii) creates and enhances an asset that the customer controls as the Group performs; or (iii) does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of services is transferred over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the services.

Online recruitment services to enterprise customers

The Group provides online recruitment services carrying different kinds of features to enterprise customers, including direct recruitment services such as job postings, and value-added tools such as bulk invite sending, which could be purchased as a part of subscription packages or on a standalone basis.

Based on the pattern by which the Group provides services and how enterprise customers benefit from services, these services can be divided into two categories in terms of revenue recognition: (i) services over a particular subscription period, which provide enterprise customers certain rights during a particular subscription period; for example, paid job postings allow enterprise customers to present certain job positions, receive job seeker recommendations, browse the mini-resume of and chat with a certain number of job seekers in its platform during the subscription period; and (ii) services with definite and limited number of usages within an expiration period, such as bulk invite sending and advanced filer. Accordingly, the Group recognizes its revenues from online recruitment services either over time or at a point in time as following:

●

For services over a particular subscription period, the Group has a stand-ready obligation to deliver the corresponding services on a when-and-if-available basis during the subscription period and enterprise customers simultaneously and continuously receive and consume the benefits as the Group provides the services throughout the subscription period. Therefore, a time-based measure of progress best reflects the satisfaction of the performance obligations and the Group recognizes revenues on a straight-line basis over the subscription period. Revenues recognized over time for the six months ended June 30, 2021 and 2022 were RMB1,338,480 and RMB1,647,892, respectively.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.12 Revenue recognition (continued)

●

For services with definite and limited number of usages within an expiration period, upon the delivery of the individual services, the Group satisfies its performance obligations and enterprise customers benefit from its performance obligations, and therefore revenues are recognized at a point in time; and if these services are unused within the expiration period, the Group recognizes the relevant revenues when they expire. Revenues recognized at a point in time for the six months ended June 30, 2021 and 2022 were RMB601,439 and RMB579,292, respectively.

Other services

Other services mainly represent paid value-added tools offered to job seekers such as increased exposure of resume and candidate competitive analysis.

The Group defines enterprise customers who contributed revenue of RMB50 or more annually as key accounts, who contributed revenue between RMB5 and RMB50 annually as mid-sized accounts, and who contributed revenue of RMB5 or less annually as small-sized accounts.


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Online recruitment services to enterprise customers
– Key accounts	362,763	517,925
– Mid-sized accounts	633,685	910,848
– Small-sized accounts	943,471	798,411
Others	16,798	23,040
Total	1,956,717	2,250,224

Arrangements with multiple performance obligations

Multiple performance obligations exist when enterprise customers purchase subscription packages which include an array of services. For those services included in subscription packages, the selling prices are consistently made references to the standalone selling prices when sold separately. The Group allocates the transaction price to each performance obligation based on the relative standalone selling price, considering bulk-sale price discounts offered to certain enterprise customers where applicable.

Deferred revenue

The Group records deferred revenue when the Group receives customers’ payments in advance of transferring control of services to customers. Substantially all deferred revenue recorded are expected to be recognized as revenues in the next twelve months.

Remaining performance obligations

Remaining performance obligations represent the amount of contracted future revenues not yet recognized as the amount relate to undelivered performance obligations. Substantially all of the Group’s contracts with customers are within one year in duration. As such, the Group has elected to apply the practical expedient which allows an entity to exclude disclosures about its remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.

2.13 Cost of revenues

Cost of revenues consist primarily of settlement cost of third-party on-line payment platforms, payroll and other employee-related expenses, server and bandwidth service cost, server depreciation and other expenses incurred by the Group which are directly attributable to the performance of the Group’s online recruitment services.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.14	Sales and marketing expenses

Sales and marketing expenses consist primarily of advertising expenses, payroll and other employee- related expenses for the Group’s sales and marketing staff as well as other expenses such as office rental and property management fees for sales functions. Advertising expenses generally represent online traffic acquisition and branding activities cost. For the six months ended June 30, 2021 and 2022, advertising expenses totaled RMB723,724 and RMB348,594, respectively.

2.15 Research and development expenses

Research and development expenses primarily consist of payroll and other employee-related expenses and other expenses such as office rental and property management fees for research and development functions. All research and development costs are expensed as incurred.

2.16 General and administrative expenses

General and administrative expenses consist primarily of payroll and other employee-related expenses for the Group’s managerial and administrative staff and other expenses such as office rental and property management fees.

2.17	Employee benefits

Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries, VIE and VIE’s subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses contributed by the Group, including accrued and unpaid amounts, were RMB109,040 and RMB171,116 for the six months ended June 30, 2021 and 2022, respectively.

2.18 Share-based compensation

The Group grants share options and restricted share units (“RSUs”) to its management, other key employees and eligible nonemployees. Such compensation is accounted for in accordance with ASC 718, Compensation — Stock Compensation. The Group adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, for the periods presented. Under ASU 2018-07, the accounting for nonemployees’ share-based awards is similar to the model for employee awards. And forfeitures are accounted for when they occur.

Share-based awards with service conditions only are measured at the grant-date fair value of the awards and recognized as expenses using the straight-line method over the requisite service period. Share-based awards that are subject to both service conditions and the occurrence of an IPO or change of control as a performance condition, are measured at the grant-date fair value, and cumulative share-based compensation expenses for the awards that have satisfied the service condition were recorded upon the completion of the Company’s IPO in June 2021.

The fair value of share options is estimated using the binomial option-pricing model. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee and nonemployee share option exercise behavior, risk-free interest rates and expected dividend yield. Binomial option-pricing model incorporates the assumptions about grantees’ future exercise patterns. The fair value of these awards was determined by management with the assistance from an independent valuation firm using management’s estimates and assumptions. The fair value of the RSUs, which were granted subsequent to the completion of the Company’s IPO, is estimated based on the fair value of the underlying ordinary shares of the Company on the grant date.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.18 Share-based compensation (continued)

The assumptions used in share-based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and application of management judgment. If factors change or different assumptions are used, the share-based compensation expenses could be materially different for any period. Moreover, the estimates of fair value of the awards are not intended to predict actual future events or the value that ultimately will be realized by grantees who receive share-based awards.

2.19 Operating leases

The Group applied ASC 842, Leases, on January 1, 2019 on the modified retrospective basis. The Group determines if an arrangement is a lease at inception. Operating leases are primarily for office and are included in operating lease right-of-use assets and operating lease liabilities on the Consolidated Balance Sheets. Operating lease right-of-use assets represent the Group’s right to use an underlying asset for the lease term and operating lease liabilities represent obligation to make lease payments arising from the lease. The operating lease right-of-use assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The Group’s lease term may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. And the Group has elected the practical expedient to account for lease and non-lease components as a single lease component. Upon the adoption of ASC 842, the Group recognized operating lease assets of RMB50,570 and operating lease liabilities of RMB50,089 on the Consolidated Balance Sheets.

For operating lease with a term of one year or less, the Group has elected to not recognize a lease liability or lease right-of-use asset on its Consolidated Balance Sheets. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term. Short-term lease expenses are immaterial to its Consolidated Statements of Comprehensive (Loss)/Income.

2.20 Taxation

Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Group accounts for deferred income taxes under the liability method in accordance with ASC 740, Income Tax. Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the financial statements and their respective tax basis, and operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the Consolidated Statements of Comprehensive (Loss)/Income in the period of change. Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not that amount of the deferred tax assets will not be realized.

The Group recognizes in its consolidated financial statements the benefit of a tax position if the tax position is more likely than not to prevail based on the facts and technical merits of the position. Tax positions that meet the more likely than not recognition threshold is measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in some cases, appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s consolidated financial statements in the period in which the audit is concluded. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. As of June 30, 2022, the Group did not have any significant unrecognized uncertain tax positions.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.21 Statutory reserves

The Company’s subsidiaries, consolidated VIE and VIE’s subsidiaries established in the PRC are required to make appropriations to certain non-distributable reserve funds.

In accordance with the laws applicable to the foreign investment enterprises established in the PRC, the Group’s subsidiaries registered as wholly owned foreign enterprises have to make appropriations from their after-tax profits as determined under the PRC GAAP to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund on an annual basis. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion.

In addition, in accordance with the PRC Company Law, the Group’s consolidated VIE and VIE’s subsidiaries, registered as Chinese domestic companies, must make appropriations from their after-tax profits as determined under the PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund on an annual basis. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under the PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company.

The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to the offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of employees. None of these reserves are allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation.

No appropriation to any reserve fund was made for the six months ended June 30, 2021 and 2022.

2.22 Comprehensive income/(loss)

Comprehensive income/(loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding those resulting from investments by shareholders and distributions to shareholders. The Group recognizes foreign currency translation adjustments as other comprehensive income/(loss) in the consolidated financial statements. As such adjustments do not incur income tax obligations, there are no tax adjustments to arrive at other comprehensive income/(loss) on a net-of-tax basis.

2.23 Segment reporting

In accordance with ASC 280, Segment Reporting, the Group’s chief operating decision maker has been identified as the Chief Executive Officer (the “CEO”), who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. Therefore, the Group has only one reportable segment. As the Group’s long-lived assets are substantially located in the PRC and substantially all the Group’s revenues are derived from entities within the PRC, no geographical segments are presented.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.24 Net income/(loss) per share

Basic net income/(loss) per share is computed by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The net income/(loss) will be adjusted by deducting (1) dividends declared in the period on preferred shares (if any), (2) cumulative dividends on preferred shares (whether or not declared) and (3) deemed dividends as required by U.S. GAAP. Diluted net income/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. Potential ordinary shares consist of shares issuable upon the conversion of the preferred shares using the if-converted method, for periods prior to the completion of the Company’ IPO in June 2021, unvested RSUs and shares issuable upon the exercise of share options using the treasury stock method. The computation of diluted net income/(loss) per share does not assume conversion, exercise or contingent issuance of securities that would have an anti-dilutive effect.

The two-class method is used for computing net income per share in the event the Group has net income available for distribution. Using the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights, if applicable. Prior to the completion of the Company’ IPO in June 2021, the computation of basic net loss per share using the two-class method was not applicable as the Company was in a net loss position and the participating securities did not have contractual obligations to share in the loss of the Company. After the completion of the IPO, net income/(loss) per share is computed on Class A ordinary shares and Class B ordinary shares combined basis, because both classes have the same dividend rights in the Company’s undistributed net income.

2.25 Recent accounting pronouncements

Recently adopted accounting pronouncements

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, to remove specific exceptions to the general principles in Topic 740 and to simplify the accounting for income taxes. The standard is effective for public companies for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the standard is effective for fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Group adopted this ASU from January 1, 2022, which didn’t have a material impact on the consolidated financial statements.

Recent accounting pronouncements not yet adopted

In June 2016, the FASB amended guidance related to the expected credit loss of financial instruments as part of ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In November 2019, the FASB issued ASU 2019-10, which amends the effective date for credit losses as follows: for public business entities that meet the definition of an SEC filer, excluding entities eligible to be SRCs as defined by the SEC, the standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years; for all other entities, the standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The standard is effective for the Group’s fiscal year beginning January 1, 2023. The ASU is not expected to have a material impact on the consolidated financial statements.

2.	PRINCIPAL ACCOUNTING POLICIES

2.1	Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The interim unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements. The consolidated balance sheet as of December 31, 2021 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. GAAP. In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly state its consolidated financial condition, results of operations and cash flows. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s audited financial statements for the year ended December 31, 2021 in the Company’s Annual Report on Form 20-F.

Significant accounting policies followed by the Group in the preparation of its accompanying unaudited interim condensed consolidated financial statements are summarized below.

2.2	Basis of consolidation

All transactions and balances between the Company, its subsidiaries, the consolidated VIE and VIE’s subsidiaries have been eliminated upon consolidation.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.3	Use of estimates

2.4	Revenue recognition

Online recruitment services to enterprise customers

●

For services over a particular subscription period, the Group has a stand-ready obligation to deliver the corresponding services on a when-and-if-available basis during the subscription period and enterprise customers simultaneously and continuously receive and consume the benefits as the Group provides the services throughout the subscription period. Therefore, a time-based measure of progress best reflects the satisfaction of the performance obligations and the Group recognizes revenues on a straight-line basis over the subscription period. Revenues recognized over time for the nine months ended September 30, 2021 and 2022 were RMB2,207,283 and RMB2,509,702, respectively.

●

For services with definite and limited number of usages within an expiration period, upon the delivery of the individual services, the Group satisfies its performance obligations and enterprise customers benefit from its performance obligations, and therefore revenues are recognized at a point in time; and if these services are unused within the expiration period, the Group recognizes the relevant revenues when they expire. Revenues recognized at a point in time for the nine months ended September 30, 2021 and 2022 were RMB929,771 and RMB881,946, respectively.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.4	Revenue recognition (continued)

Other services

Other services mainly represent paid value-added tools offered to job seekers such as increased exposure of resume and candidate competitive analysis.


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Online recruitment services to enterprise customers
—Key accounts	643,114	775,037
—Mid-sized accounts	1,080,514	1,375,551
—Small-sized accounts	1,413,426	1,241,060
Others	31,424	37,139
Total	3,168,478	3,428,787

Arrangements with multiple performance obligations

Deferred revenue

Remaining performance obligations

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.5 Share-based compensation

The Group grants share options and restricted share units (“RSUs”) to its management, other key employees and eligible nonemployees. Such compensation is accounted for in accordance with ASC 718, Compensation-Stock Compensation. The Group adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, for the periods presented. Under ASU 2018-07, the accounting for nonemployees’ share-based awards are similar to the model for employee awards. And forfeitures are accounted for when they occur.

2.6 Recent accounting pronouncements

Recently adopted accounting pronouncements

Recent accounting pronouncements not yet adopted

In June 2016, the FASB amended guidance related to the expected credit loss of financial instruments as part of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In November 2019, the FASB issued ASU 2019-10, which amends the effective date for credit losses as follows: for public business entities that meet the definition of an SEC filer, excluding entities eligible to be SRCs as defined by the SEC, the standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years; for all other entities, the standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The standard is effective for the Group’s fiscal year beginning January 1, 2023. The ASU is not expected to have a material impact on the consolidated financial statements.

CONCENTRATION AND RISKS

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

CONCENTRATION AND RISKS

CONCENTRATION AND RISKS

3.	CONCENTRATION AND RISKS

3.1	Concentration of credit risk

Financial instruments that potentially expose the Group to the concentration of credit risk primarily consist of cash and cash equivalents and short-term investments. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet dates. The Group places its cash and cash equivalents and short-term investments with financial institutions with high-credit rating and quality. The Group hasn’t noted any significant credit risk.

3.2	Concentration of customers

Substantially all revenues were derived from customers located in China. No customer accounted for greater than 10% of total revenues of the Group in any of the periods presented.

3.3	Foreign currency exchange rate risk

In July 2005, the PRC government changed its decades-old policy of pegging the value of the RMB to the US$, and the RMB appreciated more than 20% against the US$ over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the RMB and the US$ remained within a narrow band. Since June 2010, the RMB has fluctuated against the US$, at times significantly and unpredictably. The depreciation of the RMB against the US$ was approximately 1.7% in 2019. The appreciation of the RMB against the US$ was approximately 6.5% and 2.3% in 2020 and 2021, respectively. The depreciation of the RMB against the US$ was approximately 5.3% for the six months ended June 30, 2022. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future.

3.	CONCENTRATION AND RISKS

3.1	Concentration of credit risk

3.2	Concentration of customers

Substantially all revenues were derived from customers located in China. No customer accounted for greater than 10% of total revenues of the Group in any of the periods presented.

3.3	Foreign currency exchange rate risk

In July 2005, the PRC government changed its decades-old policy of pegging the value of the RMB to the US$, and the RMB appreciated more than 20% against the US$ over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the RMB and the US$ remained within a narrow band. Since June 2010, the RMB has fluctuated against the US$, at times significantly and unpredictably. The depreciation of the RMB against the US$ was approximately 1.7% in 2019. The appreciation of the RMB against the US$ was approximately 6.5% and 2.3% in 2020 and 2021, respectively. The depreciation of the RMB against the US$ was approximately 11.4% for the nine months ended September 30, 2022. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future.

SHORT-TERM INVESTMENTS

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS

4.	SHORT-TERM INVESTMENTS


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Wealth management products	884,996	812,225

The investment income from wealth management products for the six months ended June 30, 2021 and 2022 was RMB8,629 and RMB17,075, respectively.

4.	SHORT-TERM INVESTMENTS


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Wealth management products	884,996	2,764,368

The investment income from wealth management products for the nine months ended September 30, 2021 and 2022 was RMB15,791 and RMB31,112, respectively.

PREPAYMENTS AND OTHER CURRENT ASSETS

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PREPAYMENTS AND OTHER CURRENT ASSETS

PREPAYMENTS AND OTHER CURRENT ASSETS

5.	PREPAYMENTS AND OTHER CURRENT ASSETS


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Prepaid advertising expenses and service fee	234,490	134,821
Receivables related to the exercise of share-based awards*	289,822	166,202
Receivables from third-party on-line payment platforms	63,866	77,608
Deposits	63,814	64,646
Staff loans and advances	52,695	53,798
Others	19,896	23,514
Total	724,583	520,589

It mainly represented receivables from a third-party share option brokerage platform for the exercise of share-based awards due to the timing of settlement.

5.	PREPAYMENTS AND OTHER CURRENT ASSETS


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Prepaid advertising expenses and service fee	234,490	233,392
Receivables from third-party on-line payment platforms	63,866	97,493
Deposits	63,814	71,678
Staff loans and advances	52,695	49,693
Receivables related to the exercise of share-based awards*	289,822	39,092
Others	19,896	57,826
Total	724,583	549,174

It mainly represented receivables from a third-party share option brokerage platform for the exercise of share-based awards due to the timing of settlement.

PROPERTY, EQUIPMENT AND SOFTWARE, NET

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PROPERTY, EQUIPMENT AND SOFTWARE, NET

PROPERTY, EQUIPMENT AND SOFTWARE, NET

6.PROPERTY, EQUIPMENT AND SOFTWARE, NET


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Electronic equipment	429,683	642,042
Leasehold improvement	65,885	86,129
Furniture and fixtures	12,784	15,912
Motor vehicles	3,904	3,904
Software	3,126	4,055
Total cost	515,382	752,042
Less: accumulated depreciation	(146,256)	(205,936)
Total property, equipment and software, net	369,126	546,106

Depreciation expenses were RMB35,094 and RMB59,703 for the six months ended June 30, 2021 and 2022, respectively.

6.PROPERTY, EQUIPMENT AND SOFTWARE, NET


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Electronic equipment	429,683	675,696
Leasehold improvement	65,885	94,034
Furniture and fixtures	12,784	16,922
Motor vehicles	3,904	3,904
Software	3,126	4,055
Total cost	515,382	794,611
Less: accumulated depreciation	(146,256)	(243,717)
Total property, equipment and software, net	369,126	550,894

Depreciation expenses were RMB55,396 and RMB97,954 for the nine months ended September 30, 2021 and 2022, respectively.

ACCOUNTS PAYABLE

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

ACCOUNTS PAYABLE

ACCOUNTS PAYABLE

7.ACCOUNTS PAYABLE


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Payables for purchase of property, equipment and software	19,987	84,323
Payables for advertising expenses	30,646	39,870
Others	2,330	11,080
Total	52,963	135,273

7.ACCOUNTS PAYABLE


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Payables for advertising expenses	30,646	26,777
Payables for purchase of property, equipment and software	19,987	19,450
Others	2,330	5,536
Total	52,963	51,763

OTHER PAYABLES AND ACCRUED LIABILITIES

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

OTHER PAYABLES AND ACCRUED LIABILITIES

OTHER PAYABLES AND ACCRUED LIABILITIES

8.	OTHER PAYABLES AND ACCRUED LIABILITIES


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Salary, welfare and bonus payable	373,286	359,477
Tax payable⁽¹⁾	218,419	148,783
Virtual accounts used in the Group’s platform⁽²⁾	41,070	47,748
Contingent liability (Note 17)	—	14,882
Others	12,363	8,091
Total	645,138	578,981

(1)

Tax payable mainly included value-added tax, enterprise income tax and individual income tax payable mainly related to the exercise of share-based awards.

(2)

It represents the advance payments from customers that were refundable and stored in their own virtual accounts in the Group’s platform, which they have rights to exchange for services provided on the online recruitment platform.

8.	OTHER PAYABLES AND ACCRUED LIABILITIES


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Salary, welfare and bonus payable	373,286	378,599
Tax payable⁽¹⁾	218,419	84,864
Virtual accounts used in the Group’s platform⁽²⁾	41,070	53,616
Consideration payable for share repurchase	—	67,443
Contingent liability (Note 16)	—	14,882
Others	12,363	39,543
Total	645,138	638,947

(1)

Tax payable as of December 31, 2021 mainly included value-added tax, enterprise income tax and individual income tax payable mainly related to the exercise of share-based awards.

(2)

OPERATING LEASE

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

OPERATING LEASE

OPERATING LEASE

9.	OPERATING LEASE

The Group has operating leases primarily for offices. The components of lease expenses are as follows:


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Operating lease expenses	49,357	76,627
Expenses for short-term leases within 12 months	1,104	922
Total lease expenses	50,461	77,549

Supplemental balance sheet information related to operating leases is as follows:


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Right-of-use assets	309,085	303,609

Operating lease liabilities, current	127,531	146,134
Operating lease liabilities, non-current	183,365	166,309
Total operating lease liabilities	310,896	312,443


	As of December 31,		As of June 30,
	2021		2022
	RMB		RMB
Weighted average remaining lease term (in years)	3.26		2.90
Weighted average discount rate	4.82	%	4.82	%

Supplemental cash flow information related to operating leases is as follows:


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Cash paid for amounts included in the measurement of operating lease liabilities	43,391	68,850
Right-of-use assets obtained in exchange for operating lease liabilities	87,503	63,934

Maturities of operating lease liabilities are as follows:


		As of June 30,
		2022
		RMB
Succeeding period in 2022		80,485
2023		124,876
2024		64,381
2025		38,268
2026		25,451
2027		1,834
Thereafter		—
Total undiscounted lease payments		335,295
Less: imputed interest		(22,852)
Total operating lease liabilities		312,443

9.	OPERATING LEASE

The Group has operating leases primarily for offices. The components of lease expenses are as follows:


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Operating lease expenses	83,318	118,027
Expenses for short-term leases within 12 months	1,776	1,408
Total lease expenses	85,094	119,435

Supplemental balance sheet information related to operating leases is as follows:


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Right-of-use assets	309,085	310,445

Operating lease liabilities, current	127,531	150,513
Operating lease liabilities, non-current	183,365	163,800
Total operating lease liabilities	310,896	314,313


	As of December 31,		As of September 30,
	2021		2022
	RMB		RMB
Weighted average remaining lease term (in years)	3.26		2.75
Weighted average discount rate	4.82	%	4.81	%

9.	OPERATING LEASE (CONTINUED)

Supplemental cash flow information related to operating leases is as follows:


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Cash paid for amounts included in the measurement of operating lease liabilities	70,602	113,978
Right-of-use assets obtained in exchange for operating lease liabilities	193,660	107,771

Maturities of operating lease liabilities are as follows:


		As of September 30,
		2022
		RMB
Succeeding period in 2022		38,417
2023		146,455
2024		78,142
2025		46,149
2026		25,451
2027		1,834
Thereafter		—
Total undiscounted lease payments		336,448
Less: imputed interest		(22,135)
Total operating lease liabilities		314,313

OTHER OPERATING INCOME, NET

6 Months Ended

Jun. 30, 2022

OTHER OPERATING INCOME, NET

OTHER OPERATING INCOME, NET

10.

OTHER OPERATING INCOME, NET


	For the six months ended June 30,
	2021	2022
	RMB	RMB
VAT-in super deduction*	5,552	5,082
Others	2,105	5,661
Total	7,657	10,743

In accordance with the Announcement on Relevant Policies for Deepening the Value-added Tax Reform and relevant government policies announced by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs of China, Huapin, as a consumer service company, is allowed to enjoy additional 10% VAT-in deduction for any services or goods it purchased (“VAT-in super deduction”) from April 1, 2019 to December 31, 2021, which was then extended to December 31, 2022. The VAT-in super deduction obtained is considered as operating given that all VAT-in are derived from the purchases for daily operations, and therefore is presented in other operating income in the Consolidation Statements of Comprehensive (Loss)/Income.

RELATED PARTIES BALANCES AND TRANSACTIONS

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

11.	RELATED PARTIES BALANCES AND TRANSACTIONS

The table below sets forth the major related parties with which the Group had transactions during the periods presented and their relationships with the Group:


Name of related parties		Relationship with the Group
Image Frame Investment (HK) Limited (under the control of Tencent Holdings Limited)		Principal shareholder of the Group

Details of major amounts due from related parties for the periods presented are as follows:


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Receivables from Tencent Group’s on-line payment platform*	4,284	6,215
Prepaid cloud service fee to Tencent Group*	2,331	3,368
Total	6,615	9,583

Details of major transactions with related parties for the periods presented are as follows:


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Cloud services from Tencent Group*	7,715	11,402
On-line payment platform clearing services from Tencent Group*	2,887	2,355
Total	10,602	13,757

Tencent Group represents companies under the control of Tencent Holdings Limited, including Image Frame Investment (HK) Limited. The Group purchases cloud services and on-line payment platform clearing services from Tencent Group, which are trade in nature.

10.	RELATED PARTY BALANCES AND TRANSACTIONS

The table below sets forth the major related parties with which the Group had transactions during the periods presented and their relationships with the Group:


Name of related parties		Relationship with the Group
Image Frame Investment (HK) Limited (under the control of Tencent Holdings Limited)		Principal shareholder of the Group

Details of major amounts due from related parties for the periods presented are as follows:


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Receivables from Tencent Group’s on-line payment platform*	4,284	6,698
Prepaid cloud service fee to Tencent Group*	2,331	3,352
Total	6,615	10,050

Details of major transactions with related parties for the periods presented are as follows:


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Cloud services from Tencent Group*	12,445	18,877
On-line payment platform clearing services from Tencent Group*	4,344	3,652
Total	16,789	22,529

TAXATION

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

TAXATION

TAXATION

12.

TAXATION

(a)	Value added tax

The Group is subject to statutory VAT rate of 6% for revenues from online recruitment service in the PRC.

(b)	Income tax

Cayman Islands

The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, no Cayman Islands withholding tax will be imposed upon payments of dividends to shareholders.

Hong Kong

Under the current Hong Kong Inland Revenue Ordinance, the Group’s subsidiary in Hong Kong is subject to 16.5% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax.

China

Under the PRC Enterprise Income Tax Law (the “EIT Law”), which is effective from January 1, 2008, domestic enterprises and foreign investment enterprises are subject to a uniform enterprise income tax rate of 25%. In accordance with the implementation rules of EIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply for the HNTE certificate when the prior certificate expires.

Huapin is qualified as a HNTE and enjoys a preferential income tax rate of 15% for the years presented, which will expire in 2022 and need to be re-applied.

According to relevant laws and regulations promulgated by the State Administration of Tax of the PRC effective from 2018 onwards, enterprises engaging in research and development activities are entitled to claim 175% of their qualified research and development expenses incurred as tax deductible expenses when determining their assessable profits for the year. The additional deduction of 75% of qualified research and development expenses is subject to the approval from the relevant tax authorities.

Components of (loss)/income before income tax are as follow:


	For the six months ended June 30,
	2021	2022
	RMB	RMB
(Loss)/income from PRC entities	(40,300)	177,153
Loss from overseas entities	(1,550,012)	(82,709)
Total (loss)/income before income tax	(1,590,312)	94,444

Components of income tax expense are as follows:


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Current income tax expense	—	14,123

12.	TAXATION (CONTINUED)

(b)	Income tax (continued)

The following table sets forth a reconciliation between the PRC statutory income tax rate of 25% and the Group’ effective tax rate:


	For the six months ended June 30,
	2021		2022
	RMB		RMB
PRC statutory income tax rate	25.00	%	25.00	%
Tax rate difference from statutory rate in other jurisdictions⁽¹⁾	(23.84)	%	5.83	%
Permanent difference⁽²⁾	0.46	%	(6.53)	%
Effect of preferential tax rates	(0.41)	%	(17.76)	%
Changes in valuation allowance	(7.72)	%	10.57	%
Others	6.51	%	(2.16)	%
Effective tax rate	—		14.95	%

(1)

The tax rate difference for the six months ended June 30, 2021 was mainly attributed to net loss of the Company, which is located in the Cayman Islands and exempted from income tax.

(2)

The permanent difference was primarily related to additional tax deductions for qualified research and development expenses offset by non-deductible share-based compensation expenses.

(c)

Deferred tax assets

The following table sets forth the significant components of the deferred tax assets:


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Net operating loss carry-forwards	70,985	82,028
Deductible advertising expenses	262,801	262,797
Others	1,062	—
Total deferred tax assets	334,848	344,825
Less: valuation allowance	(334,848)	(344,825)
Total deferred tax assets, net of valuation allowance	—	—

As of June 30, 2022, the Group had accumulated tax losses of approximately RMB331.9 million, mainly derived from certain entities incorporated in the PRC and overseas. The tax losses in PRC can be carried forward for five years to offset future taxable profit, and the period is extended to 10 years for entities qualified as HNTE in 2019 and thereafter. The tax losses in Hong Kong can be carried forward with no expiration date. Under the U.S. tax law, majority of the Group’s federal tax losses arose in tax years beginning after December 31, 2017 and can be carried forward indefinitely. California state tax losses can be carried forward for up to 20 years.

The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more likely than not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying business. Valuation allowance is established for deferred tax assets based on a more-likely-than-not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry-forward periods provided for in the tax law. The Group believes that it is more likely than not that these deferred tax assets will not be utilized in the future. Therefore, the Group has provided full valuation allowance for the deferred tax assets as of December 31, 2021 and June 30, 2022.

12.	TAXATION (CONTINUED)

(c)	Deferred tax assets (continued)

Movements of valuation allowance are as follows:


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Balance at beginning of the year/period	250,032	334,848
Additions	84,816	9,977
Balance at end of the year/period	334,848	344,825

11.

TAXATION

(a)	Value added tax

The Group is subject to statutory VAT rate of 6% for revenues from online recruitment service in the PRC.

(b)	Income tax

Cayman Islands

Hong Kong

China

Huapin is qualified as a HNTE and enjoys a preferential income tax rate of 15% for the periods presented, which will expire in 2022 and need to be re-applied.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

ORDINARY SHARES

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

ORDINARY SHARES

ORDINARY SHARES

13.	ORDINARY SHARES

As of January 1, 2019, the Company had 1,500,000,000 shares authorized and 110,000,000 shares issued at a par value of $0.0001 per share. 9,920,000 ordinary shares were issued on May 20, 2014 to TECHWOLF LIMITED, controlled by Mr. Peng Zhao, Founder, Chairman and CEO of the Group, and these ordinary shares were reserved and held by Mr. Peng Zhao on behalf of the Company solely for the purpose of implementing the Company’s share award plan. The Company accounted for these shares as issued but not outstanding and presented as treasury shares in the Consolidated Balance Sheets and Consolidated Statement of Changes in Shareholders’ Equity throughout all the periods until July 4, 2019, when the Company cancelled these ordinary shares. The original commercial intent behind the arrangement regarding such 9,920,000 ordinary shares was later reflected in the Company’s share award plan, and the whose pool of available shares for future grants encompassed such 9,920,000 shares.

As of December 31, 2019, 1,500,000,000 shares had been authorized and 100,080,000 ordinary shares were issued and outstanding.

On February 10, 2020, all issued and outstanding ordinary shares of the Company were re-designated as Class B ordinary shares, and each Class B ordinary share was entitled to 10 votes. Mr. Peng Zhao, Founder, Chairman and CEO of the Group was deemed to beneficially own all of the Company’s issued Class B ordinary shares.

On August 21, 2020, the Company newly issued a total of 4,122,853 Class A ordinary shares to Coatue PE Asia 26 LLC with a total consideration of US$11,431. Meanwhile, TECHWOLF LIMITED sold a total of 3,752,934 Class B ordinary shares to Image Frame Investment (HK) Limited, and immediately after the completion of the transfer, the Company re-designated these shares into Class A ordinary shares.

On September 19, 2020, the Company issued 3,657,853 Class A ordinary shares to TWL Fellows Holding Limited for nominal consideration. TWL Fellows Holding Limited, a consolidated VIE of the Company incorporated on January 14, 2020 in the British Virgin Islands, was established as an employee shareholding vehicle (a “Trust”) for the purpose of implementing the Company’s share award plan. Therefore, the Company’s ordinary shares issued to TWL Fellows Holding Limited were presented as treasury shares in the consolidated financial statements. Other than holding the Company’s ordinary shares, the Trust does not have any assets.

On November 27, 2020, the Company issued and granted 24,780,971 Class B ordinary shares to TECHWOLF LIMITED (Note 15). On the same day, the voting rights of a total of 121,108,037 Class B ordinary shares was modified and each Class B ordinary share was entitled to 15 votes.

As of December 31, 2020, 1,500,000,000 shares had been authorized; 11,533,640 Class A ordinary shares were issued, out of which 7,875,787 were outstanding, and 121,108,037 Class B ordinary shares were issued and outstanding.

On March 12, 2021, TECHWOLF LIMITED transferred a total of 1,965,361 and 1,876,467 Class B ordinary shares to two new external investors named Index Capital International Limited and Duckling Fund L.P., respectively, and those shares were automatically converted into Class A ordinary shares upon the closing of share transfer between the shareholders.

13.	ORDINARY SHARES (CONTINUED)

In March 2021, the Company repurchased a total of 1,181,339 Class B ordinary shares from TECHWOLF LIMITED at a price of US$5.33 per share. Immediately after the repurchase, those Class B ordinary shares were cancelled. The difference between the purchase price and the fair value of Class B ordinary shares was recorded as additional paid-in capital in the consolidated financial statements.

In June 2021, the Company completed its IPO and 110,400,000 Class A ordinary shares were issued with total net proceeds of RMB6,406,872. Upon the completion of the IPO, all of the preferred shares were automatically converted to 551,352,134 Class A ordinary shares.

In June 2021, the Company issued and granted 24,745,531 Class B ordinary shares to TECHWOLF LIMITED (Note 15).

As of December 31, 2021, 1,500,000,000 shares had been authorized; 748,953,103 Class A ordinary shares were issued, out of which 727,855,233 Class A ordinary shares were outstanding, and 140,830,401 Class B ordinary shares were issued and outstanding. The treasury shares as of December 31, 2021 represent ordinary shares issued and reserved for future exercise or vesting of share award plan.

In March 2022, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$150 million of its American depositary shares (“ADSs”) over the following 12 months. Under this share repurchase program, during the six months ended June 30, 2022, the Company repurchased a total of 2,073,533 ADSs (representing a total of 4,147,066 Class A ordinary shares) for approximately US$40.0 million (RMB268.0 million) on the open market. The repurchased ordinary shares were accounted for under the cost method and included as treasury shares as a component of the shareholders’ equity.

As of June 30, 2022, 1,500,000,000 shares had been authorized; 749,323,103 Class A ordinary shares were issued, out of which 730,777,761 Class A ordinary shares were outstanding, and 140,830,401 Class B ordinary shares were issued and outstanding.

12.	ORDINARY SHARES

In June 2021, the Company issued and granted 24,745,531 Class B ordinary shares to TECHWOLF LIMITED (Note 14).

In March 2022, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$150 million of its American depositary shares (“ADSs”) over the following 12 months. Under this share repurchase program, during the nine months ended September 30, 2022, the Company repurchased a total of 2,685,700 ADSs (representing a total of 5,371,400 Class A ordinary shares) for approximately US$51.2 million (RMB346.5 million) on the open market. The repurchased ordinary shares were accounted for under the cost method and included as treasury shares as a component of the shareholders’ equity.

As of September 30, 2022, 1,500,000,000 shares had been authorized; 749,323,103 Class A ordinary shares were issued, out of which 731,868,565 Class A ordinary shares were outstanding, and 140,830,401 Class B ordinary shares were issued and outstanding.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

CONVERTIBLE REDEEMABLE PREFERRED SHARES

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

CONVERTIBLE REDEEMABLE PREFERRED SHARES

CONVERTIBLE REDEEMABLE PREFERRED SHARES

14.	CONVERTIBLE REDEEMABLE PREFERRED SHARES

On May 20, 2014, the Company entered into a shares purchase agreement with certain investors, pursuant to which 60,000,000 Series A Convertible Redeemable Preferred Shares (the “Series A Preferred Shares”) were issued on May 20, 2014 for an aggregated consideration of US$3,000. The Company incurred issuance costs of US$20 in connection with this offering.

On December 16, 2014, the Company entered into a shares purchase agreement with certain investors, pursuant to which 26,666,667 Series B Convertible Redeemable Preferred Shares (the “Series B Preferred Shares”) were issued on December 16, 2014 for an aggregated consideration of US$4,000. The Company incurred issuance costs of US$41 in connection with the offering of Series B Preferred Shares. Besides, the Company also issued 13,333,333 Series B Preferred Shares to TECHWOLF LIMITED, controlled by Mr. Peng Zhao, the Company’s Founder, Chairman and CEO, with no consideration received. Then the Company repurchased all of the Series B Preferred Shares issued to TECHWOLF LIMITED at par value and sold them to one of previous Series B investor on April 8, 2015 at the original issue price of the Series B Preferred Shares.

On April 8, 2015, the Company entered into a shares purchase agreement with certain investors, pursuant to which 48,000,000 Series C Convertible Redeemable Preferred Shares (the “Series C Preferred Shares”) were issued on April 8, 2015 for an aggregated consideration of US$10,000. The Company incurred issuance costs of US$40 in connection with this offering.

On July 7, 2016, the Company entered into a shares purchase agreement with certain investors, pursuant to which 45,319,316 Series C-1 Convertible Redeemable Preferred Shares (the “Series C Preferred Shares”, “Series C-1 Preferred Shares” or “Series C Preferred Shares Tranche I”) were issued on July 7, 2016 for an aggregated consideration of US$12,508. The Company incurred issuance costs of US$86 in connection with this offering of Series C-1 Preferred Shares.

14.	CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

On August 15, 2016, the Company entered into a shares purchase agreement with certain investors, pursuant to which 42,251,744 Series C-2 Convertible Redeemable Preferred Shares (the “Series C Preferred Shares”, “Series C-2 Preferred Shares” or “Series C Preferred Shares Tranche II”) were issued on August 15, 2016 for an aggregated consideration of US$18,000. The Company incurred issuance costs of US$100 in connection with this offering.

On February 10, 2017, the Company entered into a shares purchase agreement with certain investors, pursuant to which 11,497,073 Series C-3 Convertible Redeemable Preferred Shares (the “Series C Preferred Shares”, “Series C-3 Preferred Shares” or “Series C Preferred Shares Tranche III”) were issued on February 10, 2017 for an aggregated consideration of US$6,001. The Company incurred issuance costs of US$32 in connection with this offering.

On November 2, 2017, the Company entered into a shares purchase agreement with certain investors, pursuant to which 60,856,049 Series D Convertible Redeemable Preferred Shares (the “Series D Preferred Shares”) were issued on November 2, 2017 for an aggregated consideration of US$43,394. The Company incurred issuance costs of US$1,132 in connection with this offering.

On December 18, 2018, the Company entered into a shares purchase agreement with certain investors, pursuant to which 83,474,263 Series E Convertible Redeemable Preferred Shares (the “Series E Preferred Shares”) were issued on December 18, 2018 for an aggregated consideration of US$130,000. The Company incurred issuance costs of US$3,376 in connection with this offering.

On March 8, 2019, the Company entered into a shares purchase agreement with certain investors, pursuant to which 32,373,031 Series E+ Convertible Redeemable Preferred Shares (the “Series E Preferred Shares”, “Series E-1 Preferred Shares” or “Series E Preferred Shares Tranche I”) were issued on March 8, 2019 for an aggregated consideration of US$55,000. The Company incurred issuance costs of US$1,982 in connection with this offering.

On July 4, 2019, the Company entered into a shares purchase agreement with certain investors, pursuant to which 28,226,073 Series E-2 Convertible Redeemable Preferred Shares (the “Series E Preferred Shares”, “Series E-2 Preferred Shares” or “Series E Preferred Shares Tranche II”) were issued on July 4, 2019 for an aggregated consideration of US$50,000. The Company incurred issuance costs of US$1,917 in connection with this offering.

On February 10, 2020, the Company entered into a shares purchase agreement with certain investors, pursuant to which 48,689,976 Series F Convertible Redeemable Preferred Shares (the “Series F Preferred Shares”) were issued on February 10, 2020 for an aggregated consideration of US$150,000. The Company incurred issuance costs of US$1 in connection with this offering.

On November 27, 2020, the Company entered into a shares purchase agreement with certain investors, pursuant to which 50,664,609 Series F+ Convertible Redeemable Preferred Shares (the “Series F Preferred Shares” or “Series F-plus Preferred Shares”) were issued on November 27, 2020 for an aggregated consideration of US$270,000. The Company incurred issuance costs of US$3,080 in connection with this offering.

The Series A, B, C, D, E and F Preferred Shares are collectively referred to as the Preferred Shares. The holders of Preferred Shares are collectively referred to as the Preferred Shareholders. The key terms of the Preferred Shares issued by the Company are as follows:

14.	CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

Conversion rights

Optional conversion

Each Series A, B, C, D, E and F Preferred Share shall be convertible, at the option of the holder thereof, at any time and without the payment of additional consideration by the holder thereof, into such number of Class A ordinary shares as determined by the quotient of the applicable issue price divided by the then effective applicable conversion price with respect to such particular series of Preferred Shares, which shall initially be the applicable issue price for the Series A, B, C, D, E and F Preferred Shares, as the case may be, resulting in an initial conversion ratio for the Preferred Shares of 1:1, and shall be subject to adjustment and readjustment from time to time, including but not limited to additional equity securities issuances, share dividends, distributions, subdivisions, redemptions, combinations, or reorganizations, mergers, consolidations, reclassifications, exchanges or substitutions.

Automatic conversion

Each Preferred Share is convertible, at the option of the holder, at any time after the date of issuance of such Preferred Shares according to a conversion ratio, subject to adjustments for dilution, including but not limited to stock splits, stock dividends and capitalization and certain other events. Each Preferred Share is convertible into a number of ordinary shares determined by dividing the applicable original issue price by the conversion price (initially being 1 to 1 conversion ratio). The conversion price of each Preferred Share is the same as its original issue price and no adjustments to conversion price have occurred so far.

Each Series A, B, C, D, E and F Preferred Share shall automatically be converted into Class A ordinary shares, at the then applicable preferred share conversion price upon (i) closing of a Qualified Initial Public Offering (“Qualified IPO”), or (ii) the written approval of the holders of a majority of each series of Preferred Shares (calculated and voting separately in their respective single class on an as-converted basis).

Prior to the Series D Preferred Shares issuance on November 2, 2017, a “Qualified IPO” was defined as an initial public offering with gross proceeds no less than US$60 million and capitalization of the Company of no less than US$350 million prior to such initial public offering. Upon the issuance of Series D Preferred Shares, the gross proceeds and market capitalization criteria for a “Qualified IPO” were increased to US$90 million and US$900 million, respectively. Upon the issuance of Series E Preferred Shares, the gross proceeds and market capitalization criteria for a “Qualified IPO” were increased to US$100 million and US$2,000 million, respectively. Upon the issuance of Series F Preferred Shares, the gross proceeds and market capitalization criteria for a “Qualified IPO” were increased to US$100 million and US$3,300 million, respectively. Upon the issuance of Series F-plus Preferred Shares, the gross proceeds and market capitalization criteria for a “Qualified IPO” were increased to US$300 million and US$5,000 million, respectively.

Voting rights

Each holder of Series A, B, C, D, E and F Preferred Shares is entitled to cast the number of votes equal to the number of Class A ordinary shares such Preferred Shares would be entitled to convert into at the then effective conversion price. There was a modification to the voting rights of the shares controlled by Mr. Peng Zhao when the Series F and Series F-plus Preferred Shares were issued as follows:

●

the voting rights of ordinary shares controlled by Mr. Peng Zhao was modified to carry 10 votes in connection with the Series F Preferred Shares financing; and

●

the voting rights of shares controlled by Mr. Peng Zhao was modified to carry 15 votes in connection with the Series F-plus Preferred Shares financing.

14.	CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

Dividend rights

Each Preferred Share shall have the right to receive dividends, on an as-converted basis, when, as and if declared by the Board. No dividend shall be paid on the ordinary shares at any time unless and until all dividends on the Preferred Shares have been paid in full. No dividends on preferred and ordinary shares have been declared since the issuance date.

Liquidation preference

In the event of any liquidation (unless waived by the majority of Preferred Shareholders) including deemed liquidation, dissolution or winding up of the Company, Preferred Shareholders shall be entitled to receive a per share amount equal to 100% of the original preferred share issue price of the respective series of Preferred Shares, as adjusted for share dividends, share splits, combinations, recapitalizations or similar events, plus all accrued and declared but unpaid dividends thereon, in the sequence of Series F Preferred Shares, Series E Preferred Shares, Series D Preferred Shares, Series C Preferred Shares, Series B Preferred Shares, and Series A Preferred Shares. After such liquidation amounts have been paid in full, any remaining funds or assets of the Company legally available for distribution to shareholders shall be distributed on a pro rata, pari passu basis among the holders of the Preferred Shares, on an as-converted basis, together with the holders of the ordinary shares.

Redemption rights

At any time commencing on a date specified in the shareholders’ agreements (the “Redemption Start Date”), holders of majority (more than 50%) of the then outstanding Series A, B, C, D, E and F Preferred Shares may request a redemption of the Preferred Shares of such series. On receipt of a redemption request from the holders, the Company shall redeem all or part, as requested, of the outstanding Preferred Shares of such series.

The Redemption Start Date of Preferred Shares have been amended for a number of times historically. If any holder of any series of Preferred Shares exercises its redemption right, any holder of other series of Preferred Shares shall have the right to exercise the redemption of its series at the same time.

The redemption prices have been modified historically. Prior to the issuance of Series F Preferred Shares, the price at which each Preferred Share shall be redeemed shall equal to the original Preferred Shares issue price for such series plus 10% compound interest per annum (calculated from the issuance date of the respective series of Preferred Shares), and declared but unpaid dividends. Upon the issuance of Series F Preferred Shares, the price at which each Preferred Share shall be redeemed shall equal to the original Preferred Shares issue price for such series plus 8% simple interest per annum (calculated from the issuance dates of the respective series of Preferred Shares), and declared but unpaid dividends.

If on the redemption date triggered by the occurrence of any redemption event, the Company’s assets or funds which are legally available are insufficient to pay in full the aggregate redemption price for Preferred Shares requested to be redeemed, upon the request of a redeeming shareholder, the Company shall execute and deliver a two-year note, bearing an interest of ten percent (10%) per annum and with repayment of the principal and interest to be made on a monthly basis over a period of twenty-four (24) months. Preferred Shares subject to redemption with respect to which the Company has become obligated to pay the redemption price but which it has not paid in full shall continue to have all the rights and privileges which such Preferred Shareholders had prior to such date, until the redemption price has been paid in full with respect to such Preferred Shares.

Conversion upon IPO

In June 2021, upon the completion of IPO, all of the Preferred Shares were automatically converted to 551,352,134 Class A ordinary shares on a one-for-one basis.

14.	CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

Accounting for preferred shares

The Company classified the Preferred Shares in the mezzanine equity section of the Consolidated Balance Sheets because they were redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation event outside of the Company’s control. The Preferred Shares are recorded initially at fair value, net of issuance costs.

The Company records accretion on the Preferred Shares, where applicable, to the redemption value from the issuance dates to the earliest redemption dates. The accretion, calculated using the effective interest method, is recorded against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. The accretion of Preferred Shares was RMB164,065 (US$25,284) for the six months ended June 30, 2021.

The Company has determined that, under the whole instrument approach, host contract of the Preferred Shares is more akin to a debt host, given the Preferred Shares holders have potential creditors’ right in the event of insufficient fund upon redemption, along with other debt-like features in the terms of the Preferred Shares, including the redemption rights. However, the Company determined that the embedded feature, including conversion feature, do not require bifurcation as they either are clearly and closely related to the host or do not meet definition of a derivative.

The Company has determined that there was no beneficial conversion feature attributable to all Preferred Shares because the initial effective conversion prices of these Preferred Shares were higher than the fair value of the Company’s ordinary shares determined by the Company with the assistance from an independent third-party appraiser.

Modification of preferred shares

The Company assesses whether an amendment to the terms of its convertible redeemable preferred shares is an extinguishment or a modification based on a qualitative evaluation of the amendment. If the amendment adds, removes, significantly changes to a substantive contractual term or to the nature of the overall instrument, the amendment results in an extinguishment of the preferred shares. The Company also assess if the change in terms results in value transfer between Preferred Shareholders or between Preferred Shareholders and ordinary shareholders.

When convertible redeemable preferred shares are extinguished, the difference between the fair value of the consideration transferred to the convertible redeemable Preferred Shareholders and the carrying amount of such preferred shares (net of issuance costs) is treated as a deemed dividend to the Preferred Shareholders. When convertible redeemable preferred shares are modified and such modification results in value transfer between Preferred Shareholders and ordinary shareholders, the change in fair value resulted from the amendment is treated as a deemed dividend to or from the Preferred Shareholders.

Preferred shares modification were mainly included below:

●

Starting from the issuance of Series C Preferred Shares, optional redemption date of each pre-existing Preferred Shares was modified and extended to the fifth anniversary of each newly issued series of Preferred Shares applicable closing date; and

●

On February 10, 2020, the Redemption Start Date of Series A, B, C, D and E Preferred Shares was extended from July 5, 2024 to February 10, 2025, which is to be in line with the optional redemption date of Series F Preferred Shares. In the meanwhile, redemption price interest rate was lowered from 10% compound interest per annum to 8% simple interest per annum commencing from Series F Preferred Shares original issuance date and ending on the date of redemption.

From both quantitative and qualitative perspectives, the Company assessed the impact of these modifications and concluded that they represented a modification rather than extinguishment of pre-existing preferred shares, and the impact of the modification was immaterial.

14.	CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

The Company’s convertible redeemable preferred shares activities for the six months ended June 30, 2021 are summarized below:


	Series A		Series B		Series C		Series D		Series E		Series F
	Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Total
	Number		Number		Number		Number		Number		Number		Number
	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount
		RMB		RMB		RMB		RMB		RMB		RMB		RMB
Balance as of January 1, 2021	60,000,000	36,177	40,000,000	67,976	147,068,133	478,565	60,856,049	380,782	144,073,367	1,845,033	99,354,585	2,882,063	551,352,134	5,690,596
Accretion on convertible redeemable preferred shares to redemption value	—	1,057	—	2,006	—	13,580	—	10,823	—	51,072	—	85,527	—	164,065
Conversion of Preferred Shares to ordinary shares	(60,000,000)	(37,234)	(40,000,000)	(69,982)	(147,068,133)	(492,145)	(60,856,049)	(391,605)	(144,073,367)	(1,896,105)	(99,354,585)	(2,967,590)	(551,352,134)	(5,854,661)
Balance as of June 30, 2021	—	—	—	—	—	—	—	—	—	—	—	—	—	—

13.	CONVERTIBLE REDEEMABLE PREFERRED SHARES

13.

CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

Conversion rights

Optional conversion

13.

CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

Automatic conversion

Voting rights

●

the voting rights of ordinary shares controlled by Mr. Peng Zhao was modified to carry 10 votes in connection with the Series F Preferred Shares financing; and

●

the voting rights of shares controlled by Mr. Peng Zhao was modified to carry 15 votes in connection with the Series F-plus Preferred Shares financing.

Dividend rights

13.

CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

Liquidation preference

Redemption rights

Conversion upon IPO

In June 2021, upon the completion of IPO, all of the Preferred Shares were automatically converted to 551,352,134 Class A ordinary shares on a one-for-one basis.

Accounting for preferred shares

The Company classified the Preferred Shares in the mezzanine equity section of the consolidated balance sheets because they were redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation event outside of the Company’s control. The Preferred Shares are recorded initially at fair value, net of issuance costs.

13.	CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

Modification of preferred shares

Preferred shares modification were mainly included below:

●

13.	CONVERTIBLE REDEEMABLE PREFERRED SHARES (CONTINUED)

The Company’s convertible redeemable preferred shares activities for the nine months ended September 30, 2021 are summarized below:


	Series A		Series B		Series C		Series D		Series E		Series F
	Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Total
	Number		Number		Number		Number		Number		Number		Number
	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount
		RMB		RMB		RMB		RMB		RMB		RMB		RMB
Balance as of January 1, 2021	60,000,000	36,177	40,000,000	67,976	147,068,133	478,565	60,856,049	380,782	144,073,367	1,845,033	99,354,585	2,882,063	551,352,134	5,690,596
Accretion on convertible redeemable preferred shares to redemption value	—	1,057	—	2,006	—	13,580	—	10,823	—	51,072	—	85,527	—	164,065
Conversion of Preferred Shares to ordinary shares	(60,000,000)	(37,234)	(40,000,000)	(69,982)	(147,068,133)	(492,145)	(60,856,049)	(391,605)	(144,073,367)	(1,896,105)	(99,354,585)	(2,967,590)	(551,352,134)	(5,854,661)
Balance as of September 30, 2021	—	—	—	—	—	—	—	—	—	—	—	—	—	—

SHARE-BASED COMPENSATION

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

15.	SHARE-BASED COMPENSATION

(a)	Share options

Since 2014, the Company has granted options to certain directors, executive officers and employees. The maximum aggregate number of ordinary shares that are authorized to be issued under the Company’s share award plans is 158,726,695 as of June 30, 2022. The share options have a contractual term of ten years.

Share options granted contain service conditions. With respect to the service conditions, there are 3 types of vesting schedule, which are: (i) 25% of the share options shall become vested on each anniversary of the vesting commencement date for 4 years thereafter; (ii) 50% of the share options shall become vested on each anniversary of the vesting commencement date for 2 years thereafter; and (iii) immediately vested upon grant.

For share options with service conditions only, those awards are measured at the grant-date fair value and recognized as expenses over the requisite service period, which is the vesting period. For certain share options granted to employees, even though the service condition might have been satisfied, employees are required to provide continued service through the occurrence of an IPO or change of control (“Trigger Event”). Given the vesting of these share options is contingent upon the occurrence of Trigger Event, no share-based compensation expenses were recognized for these share options until the completion of the IPO in June 2021, when cumulative share-based compensation expenses for the awards that have satisfied the service conditions were recorded.

The following table sets forth the activities of share options for the six months ended June 30, 2021 and 2022, respectively:


		Weighted	Weighted		Weighted
		average	average	Aggregate	average
	Number of	exercise	remaining	intrinsic	grant-date
	options	price	contractual life	value	fair value
		US$	In Years	US$	US$
Outstanding as of January 1, 2021	107,133,353	1.16	6.84	226,639	0.64
Granted	32,701,729	4.14
Forfeited	(2,463,934)	1.85
Outstanding as of June 30, 2021	137,371,148	1.85	7.45	2,468,589	1.93
Outstanding as of January 1, 2022	82,475,968	2.71	8.05	1,214,916	2.82
Granted	8,424	—
Exercised	(6,812,174)	1.30
Forfeited	(1,113,600)	2.50
Outstanding as of June 30, 2022	74,558,618	2.84	7.68	767,897	2.90
Vested and expected to vest as of June 30, 2022	74,558,618	2.84	7.68	767,897	2.90
Exercisable as of June 30, 2022	30,629,972	2.12	6.93	337,665	1.79

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the underlying ordinary share at each reporting date.

As of June 30, 2022, there were US$146,502 of unrecognized compensation expenses related to share options, which are expected to be recognized over a weighted-average period of 2.72 years and may be adjusted for future forfeitures.

15.	SHARE-BASED COMPENSATION (CONTINUED)

(a)	Share options (continued)

The Company uses binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions (or ranges thereof) are set as below:

a
		For the six months ended
		June 30, 2021
Fair value of ordinary shares on the date of option grant		6.78 – 18.09
Risk-free interest rate⁽¹⁾		1.7% – 2.0%
Expected term (in years)		10
Expected dividend yield⁽²⁾		0%
Expected volatility⁽³⁾		58.8% – 59.8%
Expected early exercise multiple		2.2x – 2.8x

(1)

The risk-free interest rate of periods within the contractual life of the share option is based on the market yield of U.S. Treasury Strips with a maturity life equal to the expected life to expiration.

(2)

The Company has no history or expectation of paying dividends on its ordinary shares.

(3)

Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.

(b)

RSUs

After the completion of the Company’s IPO in June 2021, the Company started to grant RSUs to employees. One RSU represents a right relating to one Class A ordinary share of the Company. The RSUs were granted with service conditions. The fair value of the RSUs is estimated based on the market value of the underlying ordinary share of the Company at the grant date.

The following table summarizes activities of the Company’s RSUs for the six months ended June 30, 2022:


	Number of	Weighted average
	RSUs	grant-date fair value
		US$
Outstanding as of January 1, 2022	3,521,118	19.05
Granted	8,118,214
Vested	(257,420)
Forfeited	(242,012)
Outstanding as of June 30, 2022	11,139,900	12.81

As of June 30, 2022, there were US$128,950 of unrecognized compensation expenses related to RSUs, which are expected to be recognized over a weighted-average period of 3.63 years and may be adjusted for future forfeitures.

15.	SHARE-BASED COMPENSATION (CONTINUED)

(c)	Share-based compensation expenses by function

The following table sets forth the amounts of share-based compensation expenses included in each of the relevant financial statement line items:


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Cost of revenues	13,137	16,113
Sales and marketing expenses	26,922	63,817
Research and development expenses	58,633	115,117
General and administrative expenses*	1,610,559	87,999
Total	1,709,251	283,046

*	In June 2021, the Company granted 24,745,531 Class B ordinary shares to TECHWOLF LIMITED, and recorded share- based compensation expenses of RMB1,506.4 million in general and administrative expenses upon the grant (Note 13).

14.	SHARE-BASED COMPENSATION

(a)	Share options

Since 2014, the Company has granted options to certain directors, executive officers and employees. The maximum aggregate number of ordinary shares that are authorized to be issued under the Company’s share award plans is 158,726,695 as of September 30, 2022. The share options have a contractual term of ten years.

The following table sets forth the activities of share options for the nine months ended September 30, 2021 and 2022, respectively:


		Weighted	Weighted		Weighted
		average	average	Aggregate	average
	Number of	exercise	remaining	intrinsic	grant-date
	options	price	contractual life	value	fair value
		US$	In Years	US$	US$
Outstanding as of January 1, 2021	107,133,353	1.16	6.84	226,639	0.64
Granted	32,710,153	4.08
Exercised	(47,697,284)	0.54
Forfeited	(2,924,868)	1.95
Outstanding as of September 30, 2021	89,221,354	2.53	8.21	1,379,942	2.77

Outstanding as of January 1, 2022	82,475,968	2.71	8.05	1,214,916	2.82
Granted	8,424	—
Exercised	(9,071,268)	1.45
Forfeited	(1,356,950)	2.91
Outstanding as of September 30, 2022	72,056,174	2.86	7.45	410,810	2.93

Vested and expected to vest as of September 30, 2022	72,056,174	2.86	7.45	410,810	2.93
Exercisable as of September 30, 2022	32,174,348	2.07	6.70	204,988	1.71

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the underlying ordinary share at each reporting date.

As of September 30, 2022, there were US$130,916 of unrecognized compensation expenses related to share options, which are expected to be recognized over a weighted-average period of 2.48 years and may be adjusted for future forfeitures.

14.	SHARE-BASED COMPENSATION (CONTINUED)

(a)	Share options (continued)

The Company uses binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions (or ranges thereof) are set as below:


		For the nine months ended
		September 30, 2021
Fair value of ordinary shares on the date of option grant		6.78 - 18.09
Risk-free interest rate⁽¹⁾		1.6% - 2.0%
Expected term (in years)		10
Expected dividend yield⁽²⁾		0
Expected volatility⁽³⁾		58.8% - 59.8%
Expected early exercise multiple		2.2x - 2.8x

(1)

(2)

The Company has no history or expectation of paying dividends on its ordinary shares.

(3)

Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.

(b)

RSUs

The following table summarizes activities of the Company’s RSUs for the nine months ended September 30, 2022:


	Number of	Weighted average
	RSUs	grant-date fair value
		US$
Outstanding as of January 1, 2021	—	—
Granted	202,274
Vested	—
Forfeited	—
Outstanding as of September 30, 2021	202,274	19.40

Outstanding as of January 1, 2022	3,521,118	19.05
Granted	11,994,570
Vested	(313,464)
Forfeited	(334,176)
Outstanding as of September 30, 2022	14,868,048	12.35

As of September 30, 2022, there were US$161,259 of unrecognized compensation expenses related to RSUs, which are expected to be recognized over a weighted-average period of 3.54 years and may be adjusted for future forfeitures.

14.	SHARE-BASED COMPENSATION (CONTINUED)

(c)	Share-based compensation expenses by function

The following table sets forth the amounts of share-based compensation expenses included in each of the relevant financial statement line items:


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Cost of revenues	24,568	25,204
Sales and marketing expenses	44,838	106,613
Research and development expenses	95,321	184,945
General and administrative expenses*	1,643,447	131,199
Total	1,808,174	447,961

In June 2021, the Company granted 24,745,531 Class B ordinary shares to TECHWOLF LIMITED and recorded share- based compensation expenses of RMB1,506.4 million in general and administrative expenses upon the grant (Note 12).

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE

16.

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE

The computation of basic and diluted net (loss)/income per share for the six months ended June 30, 2021 and 2022 is as follows:


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Numerator
Net (loss)/income	(1,590,312)	80,321
Accretion on convertible redeemable preferred shares to redemption value	(164,065)	—
Net (loss)/income attributable to ordinary shareholders	(1,754,377)	80,321
Denominator
Weighted average number of ordinary shares used in computing net (loss)/income per share, basic	147,308,942	869,427,036
Dilutive effect of share-based awards	—	48,057,023
Weighted average number of ordinary shares used in computing net (loss)/income per share, diluted	147,308,942	917,484,059
Net (loss)/income per share attributable to ordinary shareholders
– Basic	(11.91)	0.09
– Diluted	(11.91)	0.09

As the Group incurred loss for the six months ended June 30, 2021, the ordinary share equivalents, including preferred shares, share options and RSUs granted, were anti-dilutive and excluded from the computation of diluted net loss per share. The weighted average numbers of these ordinary share equivalents for the periods presented were as follows:


		For the six months
		ended June 30, 2021
		RMB
Preferred shares		502,881,617
Share options and RSUs		94,100,191

15.

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE

The computation of basic and diluted net (loss)/income per share for the nine months ended September 30, 2021 and 2022 is as follows:


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Numerator
Net (loss)/income	(1,304,144)	292,038
Accretion on convertible redeemable preferred shares to redemption value	(164,065)	—
Net (loss)/income attributable to ordinary shareholders	(1,468,209)	292,038
Denominator
Weighted average number of ordinary shares used in computing net (loss)/income per share, basic	420,605,543	870,385,113
Dilutive effect of share-based awards	—	46,527,458
Weighted average number of ordinary shares used in computing net (loss)/income per share, diluted	420,605,543	916,912,571
Net (loss)/income per share attributable to ordinary shareholders
—Basic	(3.49)	0.34
—Diluted	(3.49)	0.32

COMMITMENTS AND CONTINGENCIES

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

17.	COMMITMENTS AND CONTINGENCIES

Commitments

The Group engaged third parties for promoting its brand image through various advertising channels. The amount of advertising commitments relates to the committed advertising services that have not been delivered and paid. As of June 30, 2022, future minimum advertising commitments under non-cancelable agreements were RMB110.3 million.

Contingencies

The Group and certain of the officers and directors have been named as defendants in a putative securities class action filed on July 12, 2021 in the U.S. District Court for the District of New Jersey. On March 4, 2022, plaintiff filed the Amended Complaint, purportedly brought on behalf of a class of persons who allegedly suffered damages as a result of their trading in the securities between June 11, 2021 and July 2, 2021, both inclusive. The action alleges that the Group made false and misleading statements regarding the business, operations and compliance policies in violation of the Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. In May 2022, the Company filed its motion to dismiss the Amended Complaint. Briefing on the motion to dismiss was completed in July 2022, and a decision remains pending. In September 2022, the parties reached a tentative agreement in principle to settle the case. Accordingly, the Group has recorded a contingent liability of RMB14.9 million as of June 30, 2022. On November 10, 2022, the Court granted preliminary approval of the parties’ settlement agreement, pursuant to which, without any admission or finding of any wrongdoing on the part of any of the Defendants, the parties agreed that, in consideration of the Company’s payment of US$2.25 million, all actual and potential claims and causes of action that have been or could have been alleged against the Company and the individual defendant (including the individuals mentioned above) are resolved and discharged and precluded from being raised again in any future action. The payment of the settlement amount is due by mid-December 2022 and has been paid. The Court scheduled a fairness hearing for March 2023, after which the Court will decide whether to grant final approval of the settlement.

16.	COMMITMENTS AND CONTINGENCIES

Commitments

The Group engaged third parties for promoting its brand image through various advertising channels. The amount of advertising commitments relates to the committed advertising services that have not been delivered and paid. As of September 30, 2022, future minimum advertising commitments under non-cancelable agreements were RMB110.5 million.

16.	COMMITMENTS AND CONTINGENCIES (CONTINUED)

Contingencies

The Group and certain of the officers and directors have been named as defendants in a putative securities class action filed on July 12, 2021 in the U.S. District Court for the District of New Jersey. On March 4, 2022, plaintiff filed the Amended Complaint, purportedly brought on behalf of a class of persons who allegedly suffered damages as a result of their trading in the securities between June 11, 2021 and July 2, 2021, both inclusive. The action alleges that the Group made false and misleading statements regarding the business, operations and compliance policies in violation of the Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. In May 2022, the Company filed its motion to dismiss the Amended Complaint. Briefing on the motion to dismiss was completed in July 2022, and a decision remains pending. In September 2022, the parties reached a tentative agreement in principle to settle the case. Accordingly, the Group has recorded a contingent liability of RMB14.9 million as of September 30, 2022. On November 10, 2022, the Court granted preliminary approval of the parties’ settlement agreement, pursuant to which, without any admission or finding of any wrongdoing on the part of any of the Defendants, the parties agreed that, in consideration of the Company’s payment of US$2.25 million, all actual and potential claims and causes of action that have been or could have been alleged against the Company and the individual defendant (including the individuals mentioned above) are resolved and discharged and precluded from being raised again in any future action. The payment of the settlement amount is due by mid-December 2022 and has been paid. The Court scheduled a fairness hearing for March 2023, after which the Court will decide whether to grant final approval of the settlement.

FAIR VALUE MEASUREMENT

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

18.	FAIR VALUE MEASUREMENT

Information about inputs into the fair value measurement of the Group’s assets that are measured or disclosed at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:


		Fair value measurement at reporting date using
		Quoted prices in active	Significant other	Significant
		markets for identical assets	observable inputs	unobservable inputs
Description	Fair value	(Level 1)	(Level 2)	(Level 3)
	RMB	RMB	RMB	RMB
Short-term investments
As of December 31, 2021	884,996	—	884,996	—
As of June 30, 2022	812,225	—	812,225	—

When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. For short-term investments, which consists of wealth management products, the Group refers to the quoted rate of return provided by financial institutions at the end of each period using the discounted cash flow method. The Group classifies the valuation techniques as Level 2 of fair value measurement.

17.	FAIR VALUE MEASUREMENT


		Fair value measurement at reporting date using
		Quoted prices in active	Significant other	Significant
		markets for identical assets	observable inputs	unobservable inputs
Description	Fair value	(Level 1)	(Level 2)	(Level 3)
	RMB	RMB	RMB	RMB
Short-term investments
As of December 31, 2021	884,996	—	884,996	—
As of September 30, 2022	2,764,368	—	2,764,368	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

RESTRICTED NET ASSETS

6 Months Ended

Jun. 30, 2022

RESTRICTED NET ASSETS

RESTRICTED NET ASSETS

19.	RESTRICTED NET ASSETS

In accordance with the laws applicable to foreign investment enterprises established in the PRC, the Group’s subsidiaries registered as wholly owned foreign enterprises must make appropriations from after-tax profits (as determined under PRC GAAP) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits until such reserve fund has reached 50% of the enterprise’s registered capital. The appropriation to enterprise expansion fund and staff bonus and welfare fund is at the discretion of the respective company. Additionally, in accordance with the PRC Company Law, the Group’s consolidated VIE and VIE’s subsidiaries must make appropriations from after-tax profits (as determined under the PRC GAAP) to statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund is at least 10% of the after-tax profits until such reserve fund has reached 50% of the company’s registered capital. The appropriation to discretionary surplus fund is at the discretion of the respective company. The aforementioned reserved funds can only be used for specific purposes and are not distributable as cash dividends.

As a result of these PRC laws and regulations that require annual appropriations of 10% of net after-tax profits to be set aside prior to payment of dividends as general reserve fund or statutory surplus fund, the Company’s subsidiaries, the consolidated VIE and VIE’s subsidiaries incorporated in PRC are restricted in their ability to transfer a portion of their net assets to the Company.

Amounts restricted include paid-in capital and statutory reserve funds, totaling approximately RMB938.0 million, or 8.25% of the Group’s total consolidated net assets as of June 30, 2022.

PRINCIPAL ACCOUNTING POLICIES (Policies)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

2.1	Basis of presentation

Significant accounting policies followed by the Group in the preparation of its accompanying unaudited interim condensed consolidated financial statements are summarized below.

2.1	Basis of presentation

Significant accounting policies followed by the Group in the preparation of its accompanying unaudited interim condensed consolidated financial statements are summarized below.

Basis of consolidation

2.2	Basis of consolidation

All transactions and balances between the Company, its subsidiaries, the consolidated VIE and VIE’s subsidiaries have been eliminated upon consolidation.

2.2	Basis of consolidation

All transactions and balances between the Company, its subsidiaries, the consolidated VIE and VIE’s subsidiaries have been eliminated upon consolidation.

Use of estimates

2.3	Use of estimates

2.3	Use of estimates

Foreign currency

2.4	Foreign currency

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.4	Foreign currency (continued)

Fair value measurement

2.5	Fair value measurement

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.

Cash and cash equivalents

2.6	Cash and cash equivalents

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

Short-term investments

2.7	Short-term investments

Accounts receivable

2.8	Accounts receivable

Property, equipment and software

2.9	Property, equipment and software


Category		Estimated useful lives
Electronic equipment		3-5 years
Leasehold improvement		Shorter of lease term or estimated useful life of the assets
Furniture and fixtures		5 years
Motor vehicles		3-5 years
Software		5 years

Intangible assets

2.10	Intangible assets


Category		Estimated useful lives
Domains		10 years

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

Impairment of long-lived assets

2.11	Impairment of long-lived assets

Revenue recognition

2.12	Revenue recognition

Online recruitment services to enterprise customers

●

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.12 Revenue recognition (continued)

●

Other services

Other services mainly represent paid value-added tools offered to job seekers such as increased exposure of resume and candidate competitive analysis.


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Online recruitment services to enterprise customers
– Key accounts	362,763	517,925
– Mid-sized accounts	633,685	910,848
– Small-sized accounts	943,471	798,411
Others	16,798	23,040
Total	1,956,717	2,250,224

Arrangements with multiple performance obligations

Deferred revenue

Remaining performance obligations

2.4	Revenue recognition

Online recruitment services to enterprise customers

●

For services over a particular subscription period, the Group has a stand-ready obligation to deliver the corresponding services on a when-and-if-available basis during the subscription period and enterprise customers simultaneously and continuously receive and consume the benefits as the Group provides the services throughout the subscription period. Therefore, a time-based measure of progress best reflects the satisfaction of the performance obligations and the Group recognizes revenues on a straight-line basis over the subscription period. Revenues recognized over time for the nine months ended September 30, 2021 and 2022 were RMB2,207,283 and RMB2,509,702, respectively.

●

For services with definite and limited number of usages within an expiration period, upon the delivery of the individual services, the Group satisfies its performance obligations and enterprise customers benefit from its performance obligations, and therefore revenues are recognized at a point in time; and if these services are unused within the expiration period, the Group recognizes the relevant revenues when they expire. Revenues recognized at a point in time for the nine months ended September 30, 2021 and 2022 were RMB929,771 and RMB881,946, respectively.

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.4	Revenue recognition (continued)

Other services

Other services mainly represent paid value-added tools offered to job seekers such as increased exposure of resume and candidate competitive analysis.


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Online recruitment services to enterprise customers
—Key accounts	643,114	775,037
—Mid-sized accounts	1,080,514	1,375,551
—Small-sized accounts	1,413,426	1,241,060
Others	31,424	37,139
Total	3,168,478	3,428,787

Arrangements with multiple performance obligations

Deferred revenue

Remaining performance obligations

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

Cost of revenues

2.13 Cost of revenues

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

Sales and marketing expenses

2.14	Sales and marketing expenses

Research and development expenses

2.15 Research and development expenses

General and administrative expenses

2.16 General and administrative expenses

Employee benefits

2.17	Employee benefits

Share-based compensation

2.18 Share-based compensation

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

2.18 Share-based compensation (continued)

2.5 Share-based compensation

The Group grants share options and restricted share units (“RSUs”) to its management, other key employees and eligible nonemployees. Such compensation is accounted for in accordance with ASC 718, Compensation-Stock Compensation. The Group adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, for the periods presented. Under ASU 2018-07, the accounting for nonemployees’ share-based awards are similar to the model for employee awards. And forfeitures are accounted for when they occur.

Operating leases

2.19 Operating leases

Taxation

2.20 Taxation

Statutory reserves

2.21 Statutory reserves

The Company’s subsidiaries, consolidated VIE and VIE’s subsidiaries established in the PRC are required to make appropriations to certain non-distributable reserve funds.

No appropriation to any reserve fund was made for the six months ended June 30, 2021 and 2022.

Comprehensive income/(loss)

2.22 Comprehensive income/(loss)

Segment reporting

2.23 Segment reporting

Net income/(loss) per share

2.24 Net income/(loss) per share

Recent accounting pronouncements

2.25 Recent accounting pronouncements

Recently adopted accounting pronouncements

Recent accounting pronouncements not yet adopted

2.6 Recent accounting pronouncements

Recently adopted accounting pronouncements

Recent accounting pronouncements not yet adopted

In June 2016, the FASB amended guidance related to the expected credit loss of financial instruments as part of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In November 2019, the FASB issued ASU 2019-10, which amends the effective date for credit losses as follows: for public business entities that meet the definition of an SEC filer, excluding entities eligible to be SRCs as defined by the SEC, the standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years; for all other entities, the standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The standard is effective for the Group’s fiscal year beginning January 1, 2023. The ASU is not expected to have a material impact on the consolidated financial statements.

PRINCIPAL ACTIVITIES AND ORGANIZATION (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PRINCIPAL ACTIVITIES AND ORGANIZATION

Summary of principal subsidiaries and consolidated VIE

As of June 30, 2022, the Company’s principal subsidiaries and consolidated VIE are as follows:


			Attributable
	Place of	Date of	equity interest of
Name of subsidiaries	incorporation	incorporation	the Group	Principal activities

Techfish Limited	Hong Kong, China	February 14, 2014	100%	Investment holding in Hong Kong
Beijing Glory Wolf Co., Ltd. (“Glory”, or the “WFOE”)	Beijing, China	May 7, 2014	100%	Management consultancy and technical services in the PRC

	Place of	Date of	Economic
Name of VIE	incorporation	incorporation	interest held	Principal activities

Beijing Huapin Borui Network Technology Co., Ltd. (“Huapin”)	Beijing, China	December 25, 2013	100%	Online recruitment service in the PRC

Summary of principal subsidiaries and consolidated VIE

As of September 30, 2022, the Company’s principal subsidiaries and consolidated VIE are as follows:


			Attributable
	Place of	Date of	equity interest of
Name of subsidiaries	incorporation	incorporation	the Group	Principal activities

Techfish Limited	Hong Kong, China	February 14, 2014	100%	Investment holding in Hong Kong
Beijing Glory Wolf Co., Ltd. (“Glory”, or the “WFOE”)	Beijing, China	May 7, 2014	100%	Management consultancy and technical service in the PRC

	Place of	Date of	Economic
Name of VIE	incorporation	incorporation	interest held	Principal activities
Beijing Huapin Borui Network Technology Co., Ltd. (“Huapin”)	Beijing, China	December 25, 2013	100%	Online recruitment service in the PRC

Schedule of variable interest entities


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
ASSETS
Current assets
Cash and cash equivalents	864,851	1,245,088
Short-term investments	864,557	802,159
Accounts receivable	1,002	1,946
Amounts due from Group companies	86,989	100,805
Amounts due from related parties	6,615	9,583
Prepayments and other current assets	487,598	450,841
Total current assets	2,311,612	2,610,422
Non-current assets
Property, equipment and software, net	368,381	544,171
Intangible assets, net	458	413
Right-of-use assets, net	301,288	287,032
Other non-current assets	4,000	4,000
Total non-current assets	674,127	835,616
Total assets	2,985,739	3,446,038
LIABILITIES
Current liabilities
Accounts payable	52,938	135,098
Deferred revenue	1,958,570	1,979,019
Other payables and accrued liabilities	626,151	557,568
Amounts due to Group companies	27,223	37,362
Operating lease liabilities, current	124,464	139,625
Total current liabilities	2,789,346	2,848,672
Non-current liabilities
Operating lease liabilities, non-current	178,844	155,954
Total non-current liabilities	178,844	155,954
Total liabilities	2,968,190	3,004,626


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Total revenues	1,956,717	2,250,118
Cost of revenues	(250,007)	(351,566)
Net (loss)/income	(41,429)	162,265


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Net cash generated from operating activities	861,135	486,939
Net cash used in investing activities	(167,365)	(106,702)
Net cash used in financing activities	(438,586)	—
Net increase in cash and cash equivalents	255,184	380,237
Cash and cash equivalents at beginning of the period	183,199	864,851
Cash and cash equivalents at end of the period	438,383	1,245,088


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
ASSETS
Current assets
Cash and cash equivalents	864,851	873,872
Short-term investments	864,557	1,329,802
Accounts receivable	1,002	3,929
Amounts due from Group companies	86,989	125,745
Amounts due from related parties	6,615	10,050
Prepayments and other current assets	487,598	480,213
Total current assets	2,311,612	2,823,611
Non-current assets
Property, equipment and software, net	368,381	548,476
Intangible assets, net	458	390
Right-of-use assets, net	301,288	294,905
Other non-current assets	4,000	4,000
Total non-current assets	674,127	847,771
Total assets	2,985,739	3,671,382
LIABILITIES
Current liabilities
Accounts payable	52,938	51,678
Deferred revenue	1,958,570	2,036,728
Other payables and accrued liabilities	626,151	521,066
Amounts due to Group companies	27,223	12,576
Operating lease liabilities, current	124,464	143,389
Total current liabilities	2,789,346	2,765,437
Non-current liabilities
Operating lease liabilities, non-current	178,844	154,775
Total non-current liabilities	178,844	154,775
Total liabilities	2,968,190	2,920,212


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Total revenues	3,168,478	3,427,797
Cost of revenues	(404,796)	(552,380)
Net income	274,608	319,165


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Net cash generated from operating activities	1,158,919	777,516
Net cash used in investing activities	(795,751)	(733,351)
Net cash used in financing activities	(444,239)	(35,144)
Net (decrease)/increase in cash and cash equivalents	(81,071)	9,021
Cash and cash equivalents at beginning of the period	183,199	864,851
Cash and cash equivalents at end of the period	102,128	873,872

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

PRINCIPAL ACCOUNTING POLICIES (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PRINCIPAL ACCOUNTING POLICIES

Summary of property, equipment and software


Category		Estimated useful lives
Electronic equipment		3-5 years
Leasehold improvement		Shorter of lease term or estimated useful life of the assets
Furniture and fixtures		5 years
Motor vehicles		3-5 years
Software		5 years

Summary of intangible assets


Category		Estimated useful lives
Domains		10 years

2.	PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

Summary of total revenue


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Online recruitment services to enterprise customers
– Key accounts	362,763	517,925
– Mid-sized accounts	633,685	910,848
– Small-sized accounts	943,471	798,411
Others	16,798	23,040
Total	1,956,717	2,250,224


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Online recruitment services to enterprise customers
—Key accounts	643,114	775,037
—Mid-sized accounts	1,080,514	1,375,551
—Small-sized accounts	1,413,426	1,241,060
Others	31,424	37,139
Total	3,168,478	3,428,787

SHORT-TERM INVESTMENTS (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

SHORT-TERM INVESTMENTS

Schedule of Short-Term Investments


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Wealth management products	884,996	812,225


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Wealth management products	884,996	2,764,368

PREPAYMENTS AND OTHER CURRENT ASSETS (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PREPAYMENTS AND OTHER CURRENT ASSETS

Schedule of Prepaid Expenses and Other Current Assets


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Prepaid advertising expenses and service fee	234,490	134,821
Receivables related to the exercise of share-based awards*	289,822	166,202
Receivables from third-party on-line payment platforms	63,866	77,608
Deposits	63,814	64,646
Staff loans and advances	52,695	53,798
Others	19,896	23,514
Total	724,583	520,589

It mainly represented receivables from a third-party share option brokerage platform for the exercise of share-based awards due to the timing of settlement.


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Prepaid advertising expenses and service fee	234,490	233,392
Receivables from third-party on-line payment platforms	63,866	97,493
Deposits	63,814	71,678
Staff loans and advances	52,695	49,693
Receivables related to the exercise of share-based awards*	289,822	39,092
Others	19,896	57,826
Total	724,583	549,174

It mainly represented receivables from a third-party share option brokerage platform for the exercise of share-based awards due to the timing of settlement.

PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

PROPERTY, EQUIPMENT AND SOFTWARE, NET

Schedule of Property, Equipment and Software, Net


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Electronic equipment	429,683	642,042
Leasehold improvement	65,885	86,129
Furniture and fixtures	12,784	15,912
Motor vehicles	3,904	3,904
Software	3,126	4,055
Total cost	515,382	752,042
Less: accumulated depreciation	(146,256)	(205,936)
Total property, equipment and software, net	369,126	546,106


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Electronic equipment	429,683	675,696
Leasehold improvement	65,885	94,034
Furniture and fixtures	12,784	16,922
Motor vehicles	3,904	3,904
Software	3,126	4,055
Total cost	515,382	794,611
Less: accumulated depreciation	(146,256)	(243,717)
Total property, equipment and software, net	369,126	550,894

ACCOUNTS PAYABLE (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

ACCOUNTS PAYABLE

Schedule of Accounts Payable


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Payables for purchase of property, equipment and software	19,987	84,323
Payables for advertising expenses	30,646	39,870
Others	2,330	11,080
Total	52,963	135,273


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Payables for advertising expenses	30,646	26,777
Payables for purchase of property, equipment and software	19,987	19,450
Others	2,330	5,536
Total	52,963	51,763

OTHER PAYABLES AND ACCRUED LIABILITIES (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

OTHER PAYABLES AND ACCRUED LIABILITIES

Schedule of other payables and accrued liabilities


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Salary, welfare and bonus payable	373,286	359,477
Tax payable⁽¹⁾	218,419	148,783
Virtual accounts used in the Group’s platform⁽²⁾	41,070	47,748
Contingent liability (Note 17)	—	14,882
Others	12,363	8,091
Total	645,138	578,981

(1)

Tax payable mainly included value-added tax, enterprise income tax and individual income tax payable mainly related to the exercise of share-based awards.

(2)


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Salary, welfare and bonus payable	373,286	378,599
Tax payable⁽¹⁾	218,419	84,864
Virtual accounts used in the Group’s platform⁽²⁾	41,070	53,616
Consideration payable for share repurchase	—	67,443
Contingent liability (Note 16)	—	14,882
Others	12,363	39,543
Total	645,138	638,947

(1)

Tax payable as of December 31, 2021 mainly included value-added tax, enterprise income tax and individual income tax payable mainly related to the exercise of share-based awards.

(2)

OPERATING LEASE (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

OPERATING LEASE

Summary of components of lease expenses


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Operating lease expenses	49,357	76,627
Expenses for short-term leases within 12 months	1,104	922
Total lease expenses	50,461	77,549


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Operating lease expenses	83,318	118,027
Expenses for short-term leases within 12 months	1,776	1,408
Total lease expenses	85,094	119,435

Summary of supplemental balance sheet information related to operating lease


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Right-of-use assets	309,085	303,609

Operating lease liabilities, current	127,531	146,134
Operating lease liabilities, non-current	183,365	166,309
Total operating lease liabilities	310,896	312,443


	As of December 31,		As of June 30,
	2021		2022
	RMB		RMB
Weighted average remaining lease term (in years)	3.26		2.90
Weighted average discount rate	4.82	%	4.82	%


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Right-of-use assets	309,085	310,445

Operating lease liabilities, current	127,531	150,513
Operating lease liabilities, non-current	183,365	163,800
Total operating lease liabilities	310,896	314,313


	As of December 31,		As of September 30,
	2021		2022
	RMB		RMB
Weighted average remaining lease term (in years)	3.26		2.75
Weighted average discount rate	4.82	%	4.81	%

Summary of supplemental cash flow information related to operating lease


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Cash paid for amounts included in the measurement of operating lease liabilities	43,391	68,850
Right-of-use assets obtained in exchange for operating lease liabilities	87,503	63,934


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Cash paid for amounts included in the measurement of operating lease liabilities	70,602	113,978
Right-of-use assets obtained in exchange for operating lease liabilities	193,660	107,771

Summary of maturities of lease liabilities


		As of June 30,
		2022
		RMB
Succeeding period in 2022		80,485
2023		124,876
2024		64,381
2025		38,268
2026		25,451
2027		1,834
Thereafter		—
Total undiscounted lease payments		335,295
Less: imputed interest		(22,852)
Total operating lease liabilities		312,443


		As of September 30,
		2022
		RMB
Succeeding period in 2022		38,417
2023		146,455
2024		78,142
2025		46,149
2026		25,451
2027		1,834
Thereafter		—
Total undiscounted lease payments		336,448
Less: imputed interest		(22,135)
Total operating lease liabilities		314,313

OTHER OPERATING INCOME, NET (Tables)

6 Months Ended

Jun. 30, 2022

OTHER OPERATING INCOME, NET

Schedule of other operating income net


	For the six months ended June 30,
	2021	2022
	RMB	RMB
VAT-in super deduction*	5,552	5,082
Others	2,105	5,661
Total	7,657	10,743

RELATED PARTIES BALANCES AND TRANSACTIONS (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

Summary of name of major related parties and their relationships with the group


Name of related parties		Relationship with the Group
Image Frame Investment (HK) Limited (under the control of Tencent Holdings Limited)		Principal shareholder of the Group


Name of related parties		Relationship with the Group
Image Frame Investment (HK) Limited (under the control of Tencent Holdings Limited)		Principal shareholder of the Group

Summary of amounts due from related parties


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Receivables from Tencent Group’s on-line payment platform*	4,284	6,215
Prepaid cloud service fee to Tencent Group*	2,331	3,368
Total	6,615	9,583


	As of December 31,	As of September 30,
	2021	2022
	RMB	RMB
Receivables from Tencent Group’s on-line payment platform*	4,284	6,698
Prepaid cloud service fee to Tencent Group*	2,331	3,352
Total	6,615	10,050

Summary of transactions with related parties


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Cloud services from Tencent Group*	7,715	11,402
On-line payment platform clearing services from Tencent Group*	2,887	2,355
Total	10,602	13,757


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Cloud services from Tencent Group*	12,445	18,877
On-line payment platform clearing services from Tencent Group*	4,344	3,652
Total	16,789	22,529

TAXATION (Tables)

6 Months Ended

Jun. 30, 2022

TAXATION

Schedule of components of loss before tax


	For the six months ended June 30,
	2021	2022
	RMB	RMB
(Loss)/income from PRC entities	(40,300)	177,153
Loss from overseas entities	(1,550,012)	(82,709)
Total (loss)/income before income tax	(1,590,312)	94,444

Schedule of components of income tax expenses


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Current income tax expense	—	14,123

Schedule of reconciliation between the PRC statutory income tax rate and effective income tax rate


	For the six months ended June 30,
	2021		2022
	RMB		RMB
PRC statutory income tax rate	25.00	%	25.00	%
Tax rate difference from statutory rate in other jurisdictions⁽¹⁾	(23.84)	%	5.83	%
Permanent difference⁽²⁾	0.46	%	(6.53)	%
Effect of preferential tax rates	(0.41)	%	(17.76)	%
Changes in valuation allowance	(7.72)	%	10.57	%
Others	6.51	%	(2.16)	%
Effective tax rate	—		14.95	%

(1)

The tax rate difference for the six months ended June 30, 2021 was mainly attributed to net loss of the Company, which is located in the Cayman Islands and exempted from income tax.

(2)

The permanent difference was primarily related to additional tax deductions for qualified research and development expenses offset by non-deductible share-based compensation expenses.

Summary of net deferred tax assets


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Net operating loss carry-forwards	70,985	82,028
Deductible advertising expenses	262,801	262,797
Others	1,062	—
Total deferred tax assets	334,848	344,825
Less: valuation allowance	(334,848)	(344,825)
Total deferred tax assets, net of valuation allowance	—	—

Schedule of movements of valuation allowance


	As of December 31,	As of June 30,
	2021	2022
	RMB	RMB
Balance at beginning of the year/period	250,032	334,848
Additions	84,816	9,977
Balance at end of the year/period	334,848	344,825

CONVERTIBLE REDEEMABLE PREFERRED SHARES (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

CONVERTIBLE REDEEMABLE PREFERRED SHARES

Summary of convertible redeemable preferred share


	Series A		Series B		Series C		Series D		Series E		Series F
	Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Total
	Number		Number		Number		Number		Number		Number		Number
	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount
		RMB		RMB		RMB		RMB		RMB		RMB		RMB
Balance as of January 1, 2021	60,000,000	36,177	40,000,000	67,976	147,068,133	478,565	60,856,049	380,782	144,073,367	1,845,033	99,354,585	2,882,063	551,352,134	5,690,596
Accretion on convertible redeemable preferred shares to redemption value	—	1,057	—	2,006	—	13,580	—	10,823	—	51,072	—	85,527	—	164,065
Conversion of Preferred Shares to ordinary shares	(60,000,000)	(37,234)	(40,000,000)	(69,982)	(147,068,133)	(492,145)	(60,856,049)	(391,605)	(144,073,367)	(1,896,105)	(99,354,585)	(2,967,590)	(551,352,134)	(5,854,661)
Balance as of June 30, 2021	—	—	—	—	—	—	—	—	—	—	—	—	—	—


	Series A		Series B		Series C		Series D		Series E		Series F
	Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Preferred Shares		Total
	Number		Number		Number		Number		Number		Number		Number
	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount	of shares	Amount
		RMB		RMB		RMB		RMB		RMB		RMB		RMB
Balance as of January 1, 2021	60,000,000	36,177	40,000,000	67,976	147,068,133	478,565	60,856,049	380,782	144,073,367	1,845,033	99,354,585	2,882,063	551,352,134	5,690,596
Accretion on convertible redeemable preferred shares to redemption value	—	1,057	—	2,006	—	13,580	—	10,823	—	51,072	—	85,527	—	164,065
Conversion of Preferred Shares to ordinary shares	(60,000,000)	(37,234)	(40,000,000)	(69,982)	(147,068,133)	(492,145)	(60,856,049)	(391,605)	(144,073,367)	(1,896,105)	(99,354,585)	(2,967,590)	(551,352,134)	(5,854,661)
Balance as of September 30, 2021	—	—	—	—	—	—	—	—	—	—	—	—	—	—

SHARE-BASED COMPENSATION (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

SHARE-BASED COMPENSATION

Schedule of stock option activity


		Weighted	Weighted		Weighted
		average	average	Aggregate	average
	Number of	exercise	remaining	intrinsic	grant-date
	options	price	contractual life	value	fair value
		US$	In Years	US$	US$
Outstanding as of January 1, 2021	107,133,353	1.16	6.84	226,639	0.64
Granted	32,701,729	4.14
Forfeited	(2,463,934)	1.85
Outstanding as of June 30, 2021	137,371,148	1.85	7.45	2,468,589	1.93
Outstanding as of January 1, 2022	82,475,968	2.71	8.05	1,214,916	2.82
Granted	8,424	—
Exercised	(6,812,174)	1.30
Forfeited	(1,113,600)	2.50
Outstanding as of June 30, 2022	74,558,618	2.84	7.68	767,897	2.90
Vested and expected to vest as of June 30, 2022	74,558,618	2.84	7.68	767,897	2.90
Exercisable as of June 30, 2022	30,629,972	2.12	6.93	337,665	1.79


		Weighted	Weighted		Weighted
		average	average	Aggregate	average
	Number of	exercise	remaining	intrinsic	grant-date
	options	price	contractual life	value	fair value
		US$	In Years	US$	US$
Outstanding as of January 1, 2021	107,133,353	1.16	6.84	226,639	0.64
Granted	32,710,153	4.08
Exercised	(47,697,284)	0.54
Forfeited	(2,924,868)	1.95
Outstanding as of September 30, 2021	89,221,354	2.53	8.21	1,379,942	2.77

Outstanding as of January 1, 2022	82,475,968	2.71	8.05	1,214,916	2.82
Granted	8,424	—
Exercised	(9,071,268)	1.45
Forfeited	(1,356,950)	2.91
Outstanding as of September 30, 2022	72,056,174	2.86	7.45	410,810	2.93

Vested and expected to vest as of September 30, 2022	72,056,174	2.86	7.45	410,810	2.93
Exercisable as of September 30, 2022	32,174,348	2.07	6.70	204,988	1.71

Summary of assumptions in the binomial option-pricing model used to determine the fair value of stock options

a
		For the six months ended
		June 30, 2021
Fair value of ordinary shares on the date of option grant		6.78 – 18.09
Risk-free interest rate⁽¹⁾		1.7% – 2.0%
Expected term (in years)		10
Expected dividend yield⁽²⁾		0%
Expected volatility⁽³⁾		58.8% – 59.8%
Expected early exercise multiple		2.2x – 2.8x

(1)

(2)

The Company has no history or expectation of paying dividends on its ordinary shares.

(3)

Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.


		For the nine months ended
		September 30, 2021
Fair value of ordinary shares on the date of option grant		6.78 - 18.09
Risk-free interest rate⁽¹⁾		1.6% - 2.0%
Expected term (in years)		10
Expected dividend yield⁽²⁾		0
Expected volatility⁽³⁾		58.8% - 59.8%
Expected early exercise multiple		2.2x - 2.8x

(1)

(2)

The Company has no history or expectation of paying dividends on its ordinary shares.

(3)

Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.

Summary of RSU activity


	Number of	Weighted average
	RSUs	grant-date fair value
		US$
Outstanding as of January 1, 2022	3,521,118	19.05
Granted	8,118,214
Vested	(257,420)
Forfeited	(242,012)
Outstanding as of June 30, 2022	11,139,900	12.81


	Number of	Weighted average
	RSUs	grant-date fair value
		US$
Outstanding as of January 1, 2021	—	—
Granted	202,274
Vested	—
Forfeited	—
Outstanding as of September 30, 2021	202,274	19.40

Outstanding as of January 1, 2022	3,521,118	19.05
Granted	11,994,570
Vested	(313,464)
Forfeited	(334,176)
Outstanding as of September 30, 2022	14,868,048	12.35

Summary of stock-based compensation expense


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Cost of revenues	13,137	16,113
Sales and marketing expenses	26,922	63,817
Research and development expenses	58,633	115,117
General and administrative expenses*	1,610,559	87,999
Total	1,709,251	283,046

*	In June 2021, the Company granted 24,745,531 Class B ordinary shares to TECHWOLF LIMITED, and recorded share- based compensation expenses of RMB1,506.4 million in general and administrative expenses upon the grant (Note 13).


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Cost of revenues	24,568	25,204
Sales and marketing expenses	44,838	106,613
Research and development expenses	95,321	184,945
General and administrative expenses*	1,643,447	131,199
Total	1,808,174	447,961

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE

Schedule of basic and diluted net (loss)/income per share


	For the six months ended June 30,
	2021	2022
	RMB	RMB
Numerator
Net (loss)/income	(1,590,312)	80,321
Accretion on convertible redeemable preferred shares to redemption value	(164,065)	—
Net (loss)/income attributable to ordinary shareholders	(1,754,377)	80,321
Denominator
Weighted average number of ordinary shares used in computing net (loss)/income per share, basic	147,308,942	869,427,036
Dilutive effect of share-based awards	—	48,057,023
Weighted average number of ordinary shares used in computing net (loss)/income per share, diluted	147,308,942	917,484,059
Net (loss)/income per share attributable to ordinary shareholders
– Basic	(11.91)	0.09
– Diluted	(11.91)	0.09


	For the nine months ended September 30,
	2021	2022
	RMB	RMB
Numerator
Net (loss)/income	(1,304,144)	292,038
Accretion on convertible redeemable preferred shares to redemption value	(164,065)	—
Net (loss)/income attributable to ordinary shareholders	(1,468,209)	292,038
Denominator
Weighted average number of ordinary shares used in computing net (loss)/income per share, basic	420,605,543	870,385,113
Dilutive effect of share-based awards	—	46,527,458
Weighted average number of ordinary shares used in computing net (loss)/income per share, diluted	420,605,543	916,912,571
Net (loss)/income per share attributable to ordinary shareholders
—Basic	(3.49)	0.34
—Diluted	(3.49)	0.32

Schedule of antidilutive securities excluded from computation of earnings per share


		For the six months
		ended June 30, 2021
		RMB
Preferred shares		502,881,617
Share options and RSUs		94,100,191

FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2022

Sep. 30, 2022

FAIR VALUE MEASUREMENT

Schedule of fair value, assets and liabilities measured on recurring basis


		Fair value measurement at reporting date using
		Quoted prices in active	Significant other	Significant
		markets for identical assets	observable inputs	unobservable inputs
Description	Fair value	(Level 1)	(Level 2)	(Level 3)
	RMB	RMB	RMB	RMB
Short-term investments
As of December 31, 2021	884,996	—	884,996	—
As of June 30, 2022	812,225	—	812,225	—


		Fair value measurement at reporting date using
		Quoted prices in active	Significant other	Significant
		markets for identical assets	observable inputs	unobservable inputs
Description	Fair value	(Level 1)	(Level 2)	(Level 3)
	RMB	RMB	RMB	RMB
Short-term investments
As of December 31, 2021	884,996	—	884,996	—
As of September 30, 2022	2,764,368	—	2,764,368	—

PRINCIPAL ACTIVITIES AND ORGANIZATION - Summary of principal subsidiaries and consolidated VIE (Details)	Sep. 30, 2022	Jun. 30, 2022
Techfish Limited \| Subsidiaries
Schedule Of Subsidiaries And Consolidated Variable Interest Entity [Line Items]
Equity interest held	100.00%	100.00%
Beijing Glory Wolf Co., Ltd. \| Subsidiaries
Schedule Of Subsidiaries And Consolidated Variable Interest Entity [Line Items]
Equity interest held	100.00%	100.00%
Beijing Huapin Borui Network Technology Co., Ltd. \| VIE
Schedule Of Subsidiaries And Consolidated Variable Interest Entity [Line Items]
Equity interest held	100.00%	100.00%

PRINCIPAL ACTIVITIES AND ORGANIZATION - Summary of group's consolidated financial statements (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Jan. 01, 2019
Current assets
Cash and cash equivalents	¥ 12,174,097		¥ 11,158,756		¥ 11,341,758
Short-term investments	812,225		2,764,368		884,996
Accounts receivable	2,013		4,511		1,002
Amounts due from related parties	9,583		10,050		6,615
Prepayments and other current assets	520,589		549,174		724,583
Total current assets	13,518,507		14,486,859		12,958,954
Non-current assets
Property, equipment and software, net	546,106		550,894		369,126
Intangible assets, net	413		390		458
Right-of-use assets, net	303,609		310,445		309,085	¥ 50,570
Other non-current assets	4,000		4,000		4,000
Total non-current assets	854,128		865,729		682,669
Total assets	14,372,635		15,352,588		13,641,623
Current liabilities
Accounts payable	135,273		51,763		52,963
Deferred revenue	1,979,056		2,038,669		1,958,570
Other payables and accrued liabilities	578,981		638,947		645,138
Operating lease liabilities, current	146,134		150,513		127,531
Total current liabilities	2,839,444		2,879,892		2,784,202
Non-current liabilities
Operating lease liabilities, non-current	166,309		163,800		183,365
Total non-current liabilities	166,309		163,800		183,365
Total liabilities	3,005,753		3,043,692		2,967,567
Total revenues	2,250,224	¥ 1,956,717	3,428,787	¥ 3,168,478
Cost of revenues	(351,578)	(250,029)	(552,466)	(404,863)
Net (loss)/income	80,321	(1,590,312)	292,038	(1,304,144)
Net cash generated from operating activities	480,948	836,543	847,499	1,106,471
Net cash used in investing activities	(97,909)	(167,365)	(2,091,086)	(805,751)
Net cash used in financing activities	(87,816)	6,412,214	(41,278)	6,409,844
Cash and cash equivalents at beginning of the period	11,341,758		11,341,758
Cash and cash equivalents at end of the period	12,174,097		11,158,756
VIE and VIE's subsidiaries
Current assets
Cash and cash equivalents	1,245,088	438,383	873,872	102,128	864,851
Short-term investments	802,159		1,329,802		864,557
Accounts receivable	1,946		3,929		1,002
Amounts due from Group companies	100,805		125,745		86,989
Amounts due from related parties	9,583		10,050		6,615
Prepayments and other current assets	450,841		480,213		487,598
Total current assets	2,610,422		2,823,611		2,311,612
Non-current assets
Property, equipment and software, net	544,171		548,476		368,381
Intangible assets, net	413		390		458
Right-of-use assets, net	287,032		294,905		301,288
Other non-current assets	4,000		4,000		4,000
Total non-current assets	835,616		847,771		674,127
Total assets	3,446,038		3,671,382		2,985,739
Current liabilities
Accounts payable	135,098		51,678		52,938
Deferred revenue	1,979,019		2,036,728		1,958,570
Other payables and accrued liabilities	557,568		521,066		626,151
Amounts due to Group companies	37,362		12,576		27,223
Operating lease liabilities, current	139,625		143,389		124,464
Total current liabilities	2,848,672		2,765,437		2,789,346
Non-current liabilities
Operating lease liabilities, non-current	155,954		154,775		178,844
Total non-current liabilities	155,954		154,775		178,844
Total liabilities	3,004,626		2,920,212		¥ 2,968,190
Total revenues	2,250,118	1,956,717	3,427,797	3,168,478
Cost of revenues	(351,566)	(250,007)	(552,380)	(404,796)
Net (loss)/income	162,265	(41,429)	319,165	274,608
Net cash generated from operating activities	486,939	861,135	777,516	1,158,919
Net cash used in investing activities	(106,702)	(167,365)	(733,351)	(795,751)
Net cash used in financing activities		(438,586)	(35,144)	(444,239)
Net increase in cash and cash equivalents	380,237	255,184	9,021	(81,071)
Cash and cash equivalents at beginning of the period	864,851	183,199	864,851	183,199
Cash and cash equivalents at end of the period	¥ 1,245,088	¥ 438,383	¥ 873,872	¥ 102,128

PRINCIPAL ACTIVITIES AND ORGANIZATION - Additional information (Details) - CNY (¥) ¥ in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Principal Activities And Organization [Line Items]
Effective term of exclusive purchase option agreement	10 years	10 years
VIE
Principal Activities And Organization [Line Items]
Threshold period for paying service fees		30 days
Registered capitals and statutory reserves of variable interest entity	¥ 9,002	¥ 9,002	¥ 9,002
Equity pledge agreement \| VIE \| Nominee shareholder
Principal Activities And Organization [Line Items]
Percentage of equity interests pledged		100.00%
Equity pledge agreement \| VIE \| Registered Shareholders
Principal Activities And Organization [Line Items]
Percentage of equity interests pledged	100.00%
Exclusive technology and service co-operation agreement \| VIE
Principal Activities And Organization [Line Items]
Threshold period for paying service fees	30 days

PRINCIPAL ACCOUNTING POLICIES - Additional information (Details) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022 CNY (¥) segment	Jun. 30, 2021 CNY (¥)	Sep. 30, 2022 CNY (¥)	Sep. 30, 2021 CNY (¥)	Dec. 31, 2021 CNY (¥)	Jan. 01, 2019 CNY (¥)
PRINCIPAL ACCOUNTING POLICIES
Allowance for doubtful accounts receivable	¥ 0	¥ 0
Impairment of long-lived assets	0	0
Employee benefit expenses incurred	171,116	109,040
Operating lease right of use asset	303,609		¥ 310,445		¥ 309,085	¥ 50,570
Operating lease liability	312,443		314,313		¥ 310,896	¥ 50,089
Unrecognized tax benefits	0
Advertising expense	348,594	723,724
Appropriations to statutory reserves	0	¥ 0
Tax adjustments to arrive at other comprehensive income/(loss)	¥ 0
Number of reportable segment \| segment	1
Foreign invested enterprise \| General reserve fund \| CHINA
PRINCIPAL ACCOUNTING POLICIES
Minimum percentage appropriation to general reserve fund required	10.00%
Required general reserve registered capital ratio to deforce compulsory net profit allocation to general reserve	50.00%
Domestic enterprise \| Statutory surplus reserve \| CHINA
PRINCIPAL ACCOUNTING POLICIES
Minimum percentage appropriation to statutory surplus fund required	10.00%
Required statutory surplus registered capital ratio to deforce compulsory net profit allocation to statutory surplus	50.00%
Key accounts \| Minimum
PRINCIPAL ACCOUNTING POLICIES
Contributed revenue defines enterprise customers	¥ 50
Mid-sized accounts \| Minimum
PRINCIPAL ACCOUNTING POLICIES
Contributed revenue defines enterprise customers	5
Mid-sized accounts \| Maximum
PRINCIPAL ACCOUNTING POLICIES
Contributed revenue defines enterprise customers	50
Small-sized accounts \| Maximum
PRINCIPAL ACCOUNTING POLICIES
Contributed revenue defines enterprise customers	¥ 5
Transferred over time \| Online recruitment services to enterprise customers
PRINCIPAL ACCOUNTING POLICIES
Deferred revenue, revenue recognized			2,509,702	¥ 2,207,283
Transferred at point in time \| Online recruitment services to enterprise customers
PRINCIPAL ACCOUNTING POLICIES
Deferred revenue, revenue recognized			¥ 881,946	¥ 929,771

PRINCIPAL ACCOUNTING POLICIES - Summary of property, equipment and software (Details)	6 Months Ended
	Jun. 30, 2022
Leasehold improvement
PRINCIPAL ACCOUNTING POLICIES
Property, plant and equipment, estimated useful lives	Shorter of lease term or estimated useful life of the assets
Furniture and fixtures
PRINCIPAL ACCOUNTING POLICIES
Property, plant and equipment, useful life	5 years
Software
PRINCIPAL ACCOUNTING POLICIES
Property, plant and equipment, useful life	5 years
Minimum \| Electronic equipment
PRINCIPAL ACCOUNTING POLICIES
Property, plant and equipment, useful life	3 years
Minimum \| Motor vehicles
PRINCIPAL ACCOUNTING POLICIES
Property, plant and equipment, useful life	3 years
Maximum \| Electronic equipment
PRINCIPAL ACCOUNTING POLICIES
Property, plant and equipment, useful life	5 years
Maximum \| Motor vehicles
PRINCIPAL ACCOUNTING POLICIES
Property, plant and equipment, useful life	5 years

PRINCIPAL ACCOUNTING POLICIES - Summary of intangible assets (Details)	6 Months Ended
	Jun. 30, 2022
Domains
PRINCIPAL ACCOUNTING POLICIES
Estimated useful lives	10 years

PRINCIPAL ACCOUNTING POLICIES - Summary of total Revenue (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
PRINCIPAL ACCOUNTING POLICIES
Revenues	¥ 2,250,224	¥ 1,956,717	¥ 3,428,787	¥ 3,168,478
Online recruitment services to enterprise customers
PRINCIPAL ACCOUNTING POLICIES
Revenues	2,227,184	1,939,919	3,391,648	3,137,054
Services over a particular subscription period
PRINCIPAL ACCOUNTING POLICIES
Revenues	1,647,892	1,338,480
Services with definite and limited numbers
PRINCIPAL ACCOUNTING POLICIES
Revenues	579,292	601,439
Others
PRINCIPAL ACCOUNTING POLICIES
Revenues	23,040	16,798	¥ 37,139	31,424
Key accounts
PRINCIPAL ACCOUNTING POLICIES
Revenue, Judgment			revenue of RMB50 or more annually as key accounts
Key accounts \| Online recruitment services to enterprise customers
PRINCIPAL ACCOUNTING POLICIES
Revenues	517,925	362,763	¥ 775,037	643,114
Mid-sized accounts
PRINCIPAL ACCOUNTING POLICIES
Revenue, Judgment			revenue between RMB5 and RMB50 annually as mid-sized accounts
Mid-sized accounts \| Online recruitment services to enterprise customers
PRINCIPAL ACCOUNTING POLICIES
Revenues	910,848	633,685	¥ 1,375,551	1,080,514
Small-sized accounts
PRINCIPAL ACCOUNTING POLICIES
Revenue, Judgment			revenue of RMB5 or less annually as small-sized accounts
Small-sized accounts \| Online recruitment services to enterprise customers
PRINCIPAL ACCOUNTING POLICIES
Revenues	¥ 798,411	¥ 943,471	¥ 1,241,060	¥ 1,413,426

CONCENTRATION AND RISKS (Details) - Foreign Currency exchange rate risk - RMB Against US Dollar	1 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Jul. 31, 2005	Jun. 30, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONCENTRATION AND RISKS
Percentage of depreciation in foreign currency exchange rate		5.30%	11.40%			1.70%
Percentage of appreciation in foreign currency exchange rate				2.30%	6.50%
Minimum [Member]
CONCENTRATION AND RISKS
Minimum percent of appreciation of domestic currency against foreign currency over following three years	20.00%

SHORT-TERM INVESTMENTS (Details) - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Short-term investments	¥ 2,764,368	¥ 812,225	¥ 884,996
Wealth management products
Short-term investments	¥ 2,764,368	¥ 812,225	¥ 884,996

SHORT-TERM INVESTMENTS - Additional Information (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net investment income	¥ 17,075	¥ 8,629	¥ 31,112	¥ 15,791
Wealth management products
Net investment income	¥ 17,075	¥ 8,629	¥ 31,112	¥ 15,791

PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
PREPAYMENTS AND OTHER CURRENT ASSETS
Prepaid advertising expenses and service fee	¥ 233,392	¥ 134,821	¥ 234,490
Receivables related to the exercise of share-based awards	39,092	166,202	289,822
Receivables from third-party on-line payment platforms	97,493	77,608	63,866
Deposits	71,678	64,646	63,814
Staff loans and advances	49,693	53,798	52,695
Others	57,826	23,514	19,896
Total	¥ 549,174	¥ 520,589	¥ 724,583

PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Total cost	¥ 794,611	¥ 752,042	¥ 515,382
Less: accumulated depreciation	(243,717)	(205,936)	(146,256)
Total property, equipment and software, net	550,894	546,106	369,126
Electronic equipment
Total cost	675,696	642,042	429,683
Leasehold improvement
Total cost	94,034	86,129	65,885
Furniture and fixtures
Total cost	16,922	15,912	12,784
Motor vehicles
Total cost	3,904	3,904	3,904
Software
Total cost	¥ 4,055	¥ 4,055	¥ 3,126

PROPERTY, EQUIPMENT AND SOFTWARE, NET - Additional Information (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Depreciation	¥ 59,703	¥ 35,094	¥ 97,954	¥ 55,396

ACCOUNTS PAYABLE (Details) - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
ACCOUNTS PAYABLE
Payables for purchase of property, equipment and software	¥ 19,450	¥ 84,323	¥ 19,987
Payables for advertising expenses	26,777	39,870	30,646
Others	5,536	11,080	2,330
Total	¥ 51,763	¥ 135,273	¥ 52,963

OTHER PAYABLES AND ACCRUED LIABILITIES - Schedule Of Other Payables And Accrued Liabilities (Details) - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
OTHER PAYABLES AND ACCRUED LIABILITIES
Salary, welfare and bonus payable	¥ 378,599	¥ 359,477	¥ 373,286
Tax payable	84,864	148,783	218,419
Virtual accounts used in the Group's platform	53,616	47,748	41,070
Payables to shareholders	67,443
Contingent liability	14,882	14,882
Others	39,543	8,091	12,363
Total	¥ 638,947	¥ 578,981	¥ 645,138

OPERATING LEASE - Summary Of Components Of Lease Expenses (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
OPERATING LEASE
Operating lease expenses	¥ 76,627	¥ 49,357	¥ 118,027	¥ 83,318
Expenses for short-term leases within 12 months	922	1,104	1,408	1,776
Total lease expenses	¥ 77,549	¥ 50,461	¥ 119,435	¥ 85,094

OPERATING LEASE - Summary Of Supplemental Balance Sheet Information Related To Operating Lease (Details) - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Jan. 01, 2019
OPERATING LEASE
Right-of-use assets	¥ 310,445	¥ 303,609	¥ 309,085	¥ 50,570
Operating lease liabilities, current	150,513	146,134	127,531
Operating lease liabilities, non-current	163,800	166,309	183,365
Total operating lease liabilities	¥ 314,313	¥ 312,443	¥ 310,896	¥ 50,089
Weighted average remaining lease term (in years)	2 years 9 months	2 years 10 months 24 days	3 years 3 months 3 days
Weighted average discount rate	4.81%	4.82%	4.82%

OPERATING LEASE - Summary Of Supplemental Cash Flow Information Related To Operating Lease (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
OPERATING LEASE
Cash paid for amounts included in the measurement of operating lease liabilities	¥ 68,850	¥ 43,391	¥ 113,978	¥ 70,602
Right-of-use assets obtained in exchange for operating lease liabilities	¥ 63,934	¥ 87,503	¥ 107,771	¥ 193,660

OPERATING LEASE - Summary Of Maturities Of Lease Liabilities (Details) - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Jan. 01, 2019
OPERATING LEASE
Succeeding period in 2022	¥ 38,417	¥ 80,485
2023	146,455	124,876
2024	78,142	64,381
2025	46,149	38,268
2026	25,451	25,451
2027	1,834	1,834
Total undiscounted lease payments	336,448	335,295
Less: imputed interest	(22,135)	(22,852)
Total operating lease liabilities	¥ 314,313	¥ 312,443	¥ 310,896	¥ 50,089

OTHER OPERATING INCOME, NET - Schedule Of Other Operating Income, Net (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
OTHER OPERATING INCOME, NET
VAT-in super deduction	¥ 5,082	¥ 5,552
Others	5,661	2,105
Total	¥ 10,743	¥ 7,657	¥ 14,245	¥ 10,948

OTHER OPERATING INCOME, NET - Additional information (Details)	6 Months Ended
	Jun. 30, 2022
April 1, 2019 to December 31, 2022
OTHER OPERATING INCOME, NET
Percentage of value added tax rate in super deduction	10.00%

RELATED PARTIES BALANCES AND TRANSACTIONS - Schedule Of Amounts Due From Related Parties (Details) - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
RELATED PARTIES BALANCES AND TRANSACTIONS
Amounts due from related parties	¥ 10,050	¥ 9,583	¥ 6,615
Receivables from Tencent Group's online payment platform
RELATED PARTIES BALANCES AND TRANSACTIONS
Amounts due from related parties	6,698	6,215	4,284
Prepaid cloud service fee to Tencent Group
RELATED PARTIES BALANCES AND TRANSACTIONS
Amounts due from related parties	¥ 3,352	¥ 3,368	¥ 2,331

- Definition

The aggregate amount of receivables to be collected from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth, at the financial statement date. which are usually due within one year (or one business cycle).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(11))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(3)(a)(2))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section 45
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=124098289&loc=d3e6676-107765

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

RELATED PARTIES BALANCES AND TRANSACTIONS - Summary Of Transactions With Related Parties (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
RELATED PARTIES BALANCES AND TRANSACTIONS
Major transactions with related parties	¥ 13,757	¥ 10,602	¥ 22,529	¥ 16,789
Cloud services from Tencent Group
RELATED PARTIES BALANCES AND TRANSACTIONS
Major transactions with related parties	11,402	7,715	18,877	12,445
On-line payment platform clearing services from Tencent Group
RELATED PARTIES BALANCES AND TRANSACTIONS
Major transactions with related parties	¥ 2,355	¥ 2,887	¥ 3,652	¥ 4,344

TAXATION - Additional Information (Details) - CNY (¥) ¥ in Millions	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022
TAXATION
Value added tax rate	6.00%		6.00%
Statutory income tax rate	25.00%	25.00%
Accumulated tax losses	¥ 331.9
Qualified High and New Technology Enterprise
TAXATION
Effective term of certificate	3 years		3 years
Tax losses carryforward expiration period	10 years
Qualified High and New Technology Enterprise \| Expire in Two Thousand And Twenty Two
TAXATION
Preferential income tax rate	15.00%		15.00%
United States \| California corporate franchise tax
TAXATION
Tax losses carryforward expiration period	20 years
HONG KONG
TAXATION
Statutory income tax rate	16.50%		16.50%
CHINA
TAXATION
Tax losses carryforward expiration period	5 years
Percentage of tax deduction on qualified research and development expenses	175.00%		175.00%
Percentage of additional deduction on qualified research and development expenses	75.00%		75.00%
CHINA \| Qualified High and New Technology Enterprise
TAXATION
Preferential income tax rate	15.00%		15.00%
CHINA \| New Enterprise Income Tax Law
TAXATION
Uniform tax rate for foreign investment enterprises and domestic	25.00%		25.00%
Effective date of new enterprise income tax law	Jan. 01, 2008		Jan. 01, 2008

TAXATION- Schedule Of Components Of Loss Before Tax (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
TAXATION
(Loss)/income from PRC entities	¥ 177,153	¥ (40,300)
Loss from overseas entities	(82,709)	(1,550,012)
(Loss)/Income before income tax expense	¥ 94,444	¥ (1,590,312)	¥ 333,912	¥ (1,274,078)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

TAXATION - Schedule Of Components Of Income Tax Expenses (Details) ¥ in Thousands	6 Months Ended
	Jun. 30, 2022 CNY (¥)
TAXATION
Current income tax expense	¥ 14,123

TAXATION- Schedule Of Reconciliation Between The PRC Statutory Income Tax Rate And Effective Income Tax Rate (Details)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
TAXATION
PRC statutory income tax rate	25.00%	25.00%
Tax rate difference from statutory rate in other jurisdictions	5.83%	(23.84%)
Permanent difference	(6.53%)	0.46%
Effect of preferential tax rates	(17.76%)	(0.41%)
Changes in valuation allowance	10.57%	(7.72%)
Others	(2.16%)	6.51%
Effective tax rate	14.95%

TAXATION- Summary Of Net Deferred Tax Assets (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
TAXATION
Net operating loss carry-forwards	¥ 82,028	¥ 70,985
Deductible advertising expenses	262,797	262,801
Others	0	1,062
Total deferred tax assets	344,825	334,848
Less: valuation allowance	¥ (344,825)	¥ (334,848)	¥ (250,032)

TAXATION - Schedule Of Movements Of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
TAXATION
Balance at beginning of the year/period	¥ 334,848	¥ 250,032
Additions	9,977	84,816
Balance at end of the year/period	¥ 344,825	¥ 334,848

ORDINARY SHARES (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands							1 Months Ended			6 Months Ended			9 Months Ended
	Mar. 12, 2021 shares	Nov. 27, 2020 shares	Sep. 19, 2020 shares	Aug. 21, 2020 USD ($) shares	Feb. 10, 2020	May 20, 2014 shares	Mar. 31, 2022 USD ($)	Jun. 30, 2021 CNY (¥) shares	Mar. 31, 2021 $ / shares shares	Jun. 30, 2022 CNY (¥) shares	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 CNY (¥)	Sep. 30, 2022 CNY (¥) shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 CNY (¥)	Dec. 31, 2021 $ / shares shares	Dec. 31, 2020 shares	Dec. 31, 2019 shares	Jan. 01, 2019 $ / shares shares
ORDINARY SHARES
Common stock, shares authorized											1,500,000,000			1,500,000,000		1,500,000,000	1,500,000,000	1,500,000,000	1,500,000,000
Common stock, shares issued																		100,080,000	110,000,000
Common stock, par value, (per share) \| $ / shares											$ 0.0001			$ 0.0001		$ 0.0001			$ 0.0001
Common stock, shares outstanding																		100,080,000
Proceeds from IPO, net of issuance cost \| ¥												¥ 6,423,798			¥ 6,406,872
Repurchase of ordinary shares										¥ 268,000	$ 40,000		¥ 346,500	$ 51,200
Class A ordinary shares
ORDINARY SHARES
Common stock, shares issued											749,323,103			749,323,103		748,953,103	11,533,640
Common stock, shares outstanding											730,777,761			731,868,565		727,855,233	7,875,787
Conversion of convertible redeemable preferred shares, Shares								551,352,134		551,352,134	551,352,134		551,352,134	551,352,134
Repurchase of ordinary shares (in shares)										4,147,066	4,147,066		5,371,400	5,371,400
Class B ordinary shares
ORDINARY SHARES
Common stock, shares issued											140,830,401			140,830,401		140,830,401	121,108,037
Common stock, shares outstanding											140,830,401			140,830,401		140,830,401	121,108,037
Common stock voting rights		15			10
Number of ordinary shares voting rights was modified		121,108,037
ADR
ORDINARY SHARES
Stock repurchase program, authorized amount \| $							$ 150,000
Stock repurchase program, period in force							12 months
Repurchase of ordinary shares (in shares)										2,073,533	2,073,533		2,685,700	2,685,700
IPO \| Class A ordinary shares
ORDINARY SHARES
Number of new stock issued during the period								110,400,000
Proceeds from IPO, net of issuance cost \| ¥								¥ 6,406,872
Index Capital International Limited \| Class B ordinary shares
ORDINARY SHARES
Number of shares transferred from one investor to another investor	1,965,361
Duckling Fund L.P \| Class B ordinary shares
ORDINARY SHARES
Number of shares transferred from one investor to another investor	1,876,467
Coatue PE Asia 26 LLC \| Class A ordinary shares
ORDINARY SHARES
Number of new stock issued during the period				4,122,853
Proceeds from issuance of Class A ordinary shares \| $				$ 11,431
Image Frame Investment (HK) Limited \| Class B ordinary shares
ORDINARY SHARES
Number of shares transferred from one investor to another investor				3,752,934
TWL Fellows Holding Limited \| Treasury stock
ORDINARY SHARES
Issuance of ordinary shares for share award plan			3,657,853
TECHWOLF LIMITED \| Class B ordinary shares
ORDINARY SHARES
Number of new stock issued during the period								24,745,531
Number of new stock issued during the period		24,780,971						24,745,531
Number of shares repurchased									1,181,339
Repurchase price per share \| $ / shares									$ 5.33
TECHWOLF LIMITED \| Treasury stock
ORDINARY SHARES
Issuance of ordinary shares for share award plan						9,920,000

CONVERTIBLE REDEEMABLE PREFERRED SHARES (Details) ¥ in Thousands, $ in Thousands														1 Months Ended	6 Months Ended			9 Months Ended
	Nov. 27, 2020 USD ($) shares	Feb. 10, 2020 USD ($) shares	Jul. 04, 2019 USD ($) shares	Mar. 08, 2019 USD ($) shares	Dec. 18, 2018 USD ($) shares	Nov. 02, 2017 USD ($) shares	Nov. 01, 2017 USD ($)	Feb. 10, 2017 USD ($) shares	Aug. 15, 2016 USD ($) shares	Jul. 07, 2016 USD ($) shares	Apr. 08, 2015 USD ($) shares	Dec. 16, 2014 USD ($) shares	May 20, 2014 USD ($) shares	Jun. 30, 2021 shares	Jun. 30, 2022 CNY (¥) Vote shares	Jun. 30, 2021 CNY (¥)	Jun. 30, 2021 USD ($)	Sep. 30, 2022 CNY (¥) Vote shares	Sep. 30, 2021 CNY (¥)	Sep. 30, 2021 USD ($)
Convertible Redeemable Preferred Shares [Line Items]
Dividends declared \| ¥															¥ 0			¥ 0
Prior to the Series D Preferred Shares issuance
Convertible Redeemable Preferred Shares [Line Items]
Threshold initial public offering gross proceeds for Qualified IPO							$ 60,000
Threshold capitalization for Qualified IPO							$ 350,000
Upon issuance of Series D Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Threshold initial public offering gross proceeds for Qualified IPO						$ 90,000
Threshold capitalization for Qualified IPO						$ 900,000
Upon issuance of Series E Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Threshold initial public offering gross proceeds for Qualified IPO					$ 100,000
Threshold capitalization for Qualified IPO					$ 2,000,000
Upon issuance of Series F Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Threshold initial public offering gross proceeds for Qualified IPO		$ 100,000
Threshold capitalization for Qualified IPO		$ 3,300,000
Upon issuance of Series F-plus Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Threshold initial public offering gross proceeds for Qualified IPO	$ 300,000
Threshold capitalization for Qualified IPO	$ 5,000,000
Class A ordinary shares
Convertible Redeemable Preferred Shares [Line Items]
Conversion of preferred shares to ordinary shares (in shares) \| shares														551,352,134	551,352,134			551,352,134
Series A Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Accretion on convertible redeemable preferred shares to redemption value \| ¥																¥ 1,057			¥ 1,057
Series B Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Accretion on convertible redeemable preferred shares to redemption value \| ¥																2,006			2,006
Series B Preferred Shares \| TECHWOLF LIMITED
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares												13,333,333
Series C Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Accretion on convertible redeemable preferred shares to redemption value \| ¥																13,580			13,580
Series D Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Accretion on convertible redeemable preferred shares to redemption value \| ¥																10,823			10,823
Series E Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Accretion on convertible redeemable preferred shares to redemption value \| ¥																51,072			51,072
Series F Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Number of votes in connection with preferred shares financing \| Vote															10			10
Accretion on convertible redeemable preferred shares to redemption value \| ¥																¥ 85,527			85,527
Series F-plus Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Number of votes in connection with preferred shares financing \| Vote															15			15
Redeemable preferred shares
Convertible Redeemable Preferred Shares [Line Items]
Preferred stock convertible, conversion ratio														1	1	1	1	1
Temporary equity liquidation preference per share percentage															100.00%			100.00%
Threshold shareholding percentage required for redemption notice															50.00%			50.00%
Accretion on convertible redeemable preferred shares to redemption value																¥ 164,065	$ 25,284		¥ 164,065	$ 25,284
Redeemable preferred shares \| Debt note to redeeming shareholder
Convertible Redeemable Preferred Shares [Line Items]
Debt instrument term															2 years			2 years
Debt instrument interest rate															10.00%			10.00%
Redeemable preferred shares \| Prior to issuance of series F redeemable convertible preferred stock
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity redemption price compound interest per annum															10.00%			10.00%
Redeemable convertible preferred stock initial Redemption start date		Jul. 05, 2024
Redeemable preferred shares \| Post issuance of series F redeemable convertible preferred stock
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity redemption price simple interest per annum															8.00%			8.00%
Redeemable convertible preferred stock modified Redemption start date		Feb. 10, 2025
Share purchase agreement with investors \| Series A Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares													60,000,000
Proceeds from Issuance of Redeemable Convertible Preferred Stock													$ 3,000
Stock issuance costs													$ 20
Share purchase agreement with investors \| Series B Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares												26,666,667
Proceeds from Issuance of Redeemable Convertible Preferred Stock												$ 4,000
Stock issuance costs												$ 41
Share purchase agreement with investors \| Series C Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares											48,000,000
Proceeds from Issuance of Redeemable Convertible Preferred Stock											$ 10,000
Stock issuance costs											$ 40
Share purchase agreement with investors \| Series C-1 Preferred Shares \| Tranche I
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares										45,319,316
Proceeds from Issuance of Redeemable Convertible Preferred Stock										$ 12,508
Stock issuance costs										$ 86
Share purchase agreement with investors \| Series C-2 Preferred Shares \| Tranche II
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares									42,251,744
Proceeds from Issuance of Redeemable Convertible Preferred Stock									$ 18,000
Stock issuance costs									$ 100
Share purchase agreement with investors \| Series C-3 Preferred Shares \| Tranche III
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares								11,497,073
Proceeds from Issuance of Redeemable Convertible Preferred Stock								$ 6,001
Stock issuance costs								$ 32
Share purchase agreement with investors \| Series D Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares						60,856,049
Proceeds from Issuance of Redeemable Convertible Preferred Stock						$ 43,394
Stock issuance costs						$ 1,132
Share purchase agreement with investors \| Series E Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares					83,474,263
Proceeds from Issuance of Redeemable Convertible Preferred Stock					$ 130,000
Stock issuance costs					$ 3,376
Share purchase agreement with investors \| Series E-1 Preferred Shares \| Tranche I
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares				32,373,031
Proceeds from Issuance of Redeemable Convertible Preferred Stock				$ 55,000
Stock issuance costs				$ 1,982
Share purchase agreement with investors \| Series E-2 Preferred Shares \| Tranche II
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares			28,226,073
Proceeds from Issuance of Redeemable Convertible Preferred Stock			$ 50,000
Stock issuance costs			$ 1,917
Share purchase agreement with investors \| Series F Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares		48,689,976
Proceeds from Issuance of Redeemable Convertible Preferred Stock		$ 150,000
Stock issuance costs		$ 1
Share purchase agreement with investors \| Series F-plus Preferred Shares
Convertible Redeemable Preferred Shares [Line Items]
Temporary equity issued during the period shares \| shares	50,664,609
Proceeds from Issuance of Redeemable Convertible Preferred Stock	$ 270,000
Stock issuance costs	$ 3,080

CONVERTIBLE REDEEMABLE PREFERRED SHARES - Summary of convertible redeemable preferred share (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021 CNY (¥) shares	Jun. 30, 2021 USD ($) shares	Sep. 30, 2021 CNY (¥) shares	Sep. 30, 2021 USD ($) shares
Series A Preferred Shares
Temporary Equity [Line Items]
Balance Beginning	¥ 36,177		¥ 36,177
Balance Beginning, Shares \| shares	60,000,000	60,000,000	60,000,000	60,000,000
Accretion on convertible redeemable preferred shares to redemption value	¥ 1,057		¥ 1,057
Conversion of preferred shares to ordinary shares	¥ (37,234)		¥ (37,234)
Conversion of preferred shares to ordinary shares, Shares \| shares	(60,000,000)	(60,000,000)	(60,000,000)	(60,000,000)
Balance Ending, Shares \| shares	0	0	0	0
Balance Ending	¥ 0		¥ 0
Series B Preferred Shares
Temporary Equity [Line Items]
Balance Beginning	¥ 67,976		¥ 67,976
Balance Beginning, Shares \| shares	40,000,000	40,000,000	40,000,000	40,000,000
Accretion on convertible redeemable preferred shares to redemption value	¥ 2,006		¥ 2,006
Conversion of preferred shares to ordinary shares	¥ (69,982)		¥ (69,982)
Conversion of preferred shares to ordinary shares, Shares \| shares	(40,000,000)	(40,000,000)	(40,000,000)	(40,000,000)
Balance Ending, Shares \| shares	0	0	0	0
Balance Ending	¥ 0		¥ 0
Series C Preferred Shares
Temporary Equity [Line Items]
Balance Beginning	¥ 478,565		¥ 478,565
Balance Beginning, Shares \| shares	147,068,133	147,068,133	147,068,133	147,068,133
Accretion on convertible redeemable preferred shares to redemption value	¥ 13,580		¥ 13,580
Conversion of preferred shares to ordinary shares	¥ (492,145)		¥ (492,145)
Conversion of preferred shares to ordinary shares, Shares \| shares	(147,068,133)	(147,068,133)	(147,068,133)	(147,068,133)
Balance Ending, Shares \| shares	0	0	0	0
Balance Ending	¥ 0		¥ 0
Series D Preferred Shares
Temporary Equity [Line Items]
Balance Beginning	¥ 380,782		¥ 380,782
Balance Beginning, Shares \| shares	60,856,049	60,856,049	60,856,049	60,856,049
Accretion on convertible redeemable preferred shares to redemption value	¥ 10,823		¥ 10,823
Conversion of preferred shares to ordinary shares	¥ (391,605)		¥ (391,605)
Conversion of preferred shares to ordinary shares, Shares \| shares	(60,856,049)	(60,856,049)	(60,856,049)	(60,856,049)
Balance Ending, Shares \| shares	0	0	0	0
Balance Ending	¥ 0		¥ 0
Series E Preferred Shares
Temporary Equity [Line Items]
Balance Beginning	¥ 1,845,033		¥ 1,845,033
Balance Beginning, Shares \| shares	144,073,367	144,073,367	144,073,367	144,073,367
Accretion on convertible redeemable preferred shares to redemption value	¥ 51,072		¥ 51,072
Conversion of preferred shares to ordinary shares	¥ (1,896,105)		¥ (1,896,105)
Conversion of preferred shares to ordinary shares, Shares \| shares	(144,073,367)	(144,073,367)	(144,073,367)	(144,073,367)
Balance Ending, Shares \| shares	0	0	0	0
Balance Ending	¥ 0		¥ 0
Series F Preferred Shares
Temporary Equity [Line Items]
Balance Beginning	¥ 2,882,063		¥ 2,882,063
Balance Beginning, Shares \| shares	99,354,585	99,354,585	99,354,585	99,354,585
Accretion on convertible redeemable preferred shares to redemption value	¥ 85,527		¥ 85,527
Conversion of preferred shares to ordinary shares	¥ (2,967,590)		¥ (2,967,590)
Conversion of preferred shares to ordinary shares, Shares \| shares	(99,354,585)	(99,354,585)	(99,354,585)	(99,354,585)
Balance Ending, Shares \| shares	0	0	0	0
Balance Ending	¥ 0		¥ 0
Redeemable preferred shares
Temporary Equity [Line Items]
Balance Beginning	¥ 5,690,596		¥ 5,690,596
Balance Beginning, Shares \| shares	551,352,134	551,352,134	551,352,134	551,352,134
Accretion on convertible redeemable preferred shares to redemption value	¥ 164,065	$ 25,284	¥ 164,065	$ 25,284
Conversion of preferred shares to ordinary shares	¥ (5,854,661)		¥ (5,854,661)
Conversion of preferred shares to ordinary shares, Shares \| shares	(551,352,134)	(551,352,134)	(551,352,134)	(551,352,134)
Balance Ending, Shares \| shares	0	0	0	0
Balance Ending	¥ 0		¥ 0

SHARE-BASED COMPENSATION - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Number of options
Outstanding Beginning Balance	82,475,968	107,133,353	82,475,968	107,133,353	107,133,353
Granted	8,424	32,701,729	8,424	32,710,153
Exercised	(6,812,174)		(9,071,268)	(47,697,284)
Forfeited	(1,113,600)	(2,463,934)	(1,356,950)	(2,924,868)
Outstanding Ending Balance	74,558,618	137,371,148	72,056,174	89,221,354	82,475,968	107,133,353
Vested and expected to vest as of June 30, 2022	74,558,618		72,056,174
Exercisable as of June 30, 2022	30,629,972		32,174,348
Weighted average exercise price
Outstanding Beginning Balance	$ 2.71	$ 1.16	$ 2.71	$ 1.16	$ 1.16
Granted		4.14		4.08
Forfeited	2.50	1.85	2.91	1.95
Exercised	1.30		1.45	0.54
Outstanding Ending Balance	2.84	$ 1.85	2.86	$ 2.53	$ 2.71	$ 1.16
Vested and expected to vest as of June 30, 2022	2.84		2.86
Exercisable as of June 30, 2022	$ 2.12		$ 2.07
Weighted average remaining contractual life
Outstanding Ending	7 years 8 months 4 days	7 years 5 months 12 days	7 years 5 months 12 days	8 years 2 months 15 days	8 years 18 days	6 years 10 months 2 days
Vested and expected to vest as of June 30, 2022	7 years 8 months 4 days		7 years 5 months 12 days
Exercisable as of June 30, 2022	6 years 11 months 4 days		6 years 8 months 12 days
Aggregate intrinsic value
Outstanding Ending Balance	$ 767,897	$ 2,468,589	$ 410,810	$ 1,379,942	$ 1,214,916	$ 226,639
Vested and expected to vest as of June 30, 2022	767,897		410,810
Exercisable as of June 30, 2022	$ 337,665		$ 204,988
Weighted average grant-date fair value
Outstanding Ending Balance	$ 2.90	$ 1.93	$ 2.93	$ 2.77	$ 2.82	$ 0.64
Vested and expected to vest as of June 30, 2022	2.90		2.93
Exercisable as of June 30, 2022	$ 1.79		$ 1.71

SHARE-BASED COMPENSATION - Summary of Assumptions in the Binomial Option-Pricing Model used to Determine the Fair Value of Stock Options (Details) - $ / shares	6 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	10 years	10 years
Expected dividend yield	0.00%	0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of ordinary shares on the date of option grant	$ 18.09
Risk-free interest rate	2.00%
Expected volatility	59.80%
Expected early exercise multiple	2.8
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of ordinary shares on the date of option grant	$ 6.78
Risk-free interest rate	1.70%
Expected volatility	58.80%
Expected early exercise multiple	2.2		2.2x - 2.8x

SHARE-BASED COMPENSATION - Summary of RSU activity (Details) - $ / shares	6 Months Ended	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Weighted average grant-date fair value
Outstanding balance			$ 19.40		$ 0
Restricted Stock Units (RSUs)
Number of RSUs
Outstanding beginning balance	3,521,118	3,521,118	0
Granted	8,118,214	11,994,570	202,274
Vested	(257,420)	(313,464)
Forfeited	(242,012)	(334,176)
Outstanding ending balance	11,139,900	14,868,048	202,274
Weighted average grant-date fair value
Outstanding balance	$ 12.81	$ 12.35		$ 19.05

SHARE-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
stockbased compensation expense [Line Items]
share-based compensation expenses	¥ 283,046	¥ 1,709,251	¥ 447,961	¥ 1,808,174
Cost of revenues
stockbased compensation expense [Line Items]
share-based compensation expenses	16,113	13,137	25,204	24,568
Sales and marketing expenses
stockbased compensation expense [Line Items]
share-based compensation expenses	63,817	26,922	106,613	44,838
Research and development expenses
stockbased compensation expense [Line Items]
share-based compensation expenses	115,117	58,633	184,945	95,321
General and administrative expenses
stockbased compensation expense [Line Items]
share-based compensation expenses	¥ 87,999	¥ 1,610,559	¥ 131,199	¥ 1,643,447

SHARE-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Parenthetical) (Details) - CNY (¥) ¥ in Thousands		1 Months Ended	6 Months Ended		9 Months Ended
	Nov. 27, 2020	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
stockbased compensation expense [Line Items]
share-based compensation expenses			¥ 283,046	¥ 1,709,251	¥ 447,961	¥ 1,808,174
General and administrative expenses
stockbased compensation expense [Line Items]
share-based compensation expenses			¥ 87,999	¥ 1,610,559	¥ 131,199	¥ 1,643,447
TECHWOLF LIMITED \| Class B ordinary shares
stockbased compensation expense [Line Items]
Number of new stock issued during the period	24,780,971	24,745,531
TECHWOLF LIMITED \| General and administrative expenses
stockbased compensation expense [Line Items]
share-based compensation expenses		¥ 1,506,400

SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	158,726,695
Share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		158,726,695
Contractual term	10 years	10 years
Unrecognized compensation expenses	$ 146,502	$ 130,916
Weighted average period expected to be recognized	2 years 8 months 19 days	2 years 5 months 23 days
Share options \| Vested on each anniversary of the vesting commencement date for four years thereafter
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of vesting rights	25.00%	25.00%
Award vesting period	4 years	4 years
Share options \| Vested on each anniversary of the vesting commencement date for two years thereafter
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of vesting rights	50.00%	50.00%
Award vesting period	2 years	2 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period expected to be recognized	3 years 7 months 17 days	3 years 6 months 14 days
Share-based Compensation Arrangement by Share-based Payment Award, Description	One RSU represents a right relating to one Class A ordinary share	One RSU represents a right relating to one Class A ordinary share
Share based payment arrangement nonvested award excluding option cost not yet recognized amount	$ 128,950	$ 161,259

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator
Net (loss)/income	¥ 80,321	¥ (1,590,312)	¥ 292,038	¥ (1,304,144)
Accretion on convertible redeemable preferred shares to redemption value		(164,065)		(164,065)
Net (loss)/income attributable to ordinary shareholders	¥ 80,321	¥ (1,754,377)	¥ 292,038	¥ (1,468,209)
Denominator
Weighted average number of ordinary shares used in computing net (loss)/income per share, basic	869,427,036	147,308,942	870,385,113	420,605,543
Dilutive effect of share-based awards			¥ 46,527,458
Dilutive effect of share-based awards	48,057,023
Weighted average number of ordinary shares used in computing net (loss)/income per share, diluted	917,484,059	147,308,942	916,912,571	420,605,543
Net (loss)/income per share attributable to ordinary shareholders
Basic	¥ 0.09	¥ (11.91)	¥ 0.34	¥ (3.49)
Diluted	¥ 0.09	¥ (11.91)	¥ 0.32	¥ (3.49)

BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details)	6 Months Ended
	Jun. 30, 2021 shares
Preferred shares
BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE
Antidilutive securities excluded from computation of earnings per share amount	502,881,617
Share options and RSUs
BASIC AND DILUTED NET (LOSS)/INCOME PER SHARE
Antidilutive securities excluded from computation of earnings per share amount	94,100,191

COMMITMENTS AND CONTINGENCIES (Details) ¥ in Thousands, $ in Thousands	Nov. 10, 2022 USD ($)	Sep. 30, 2022 CNY (¥)	Jun. 30, 2022 CNY (¥)
COMMITMENTS AND CONTINGENCIES
Contingent liability \| ¥		¥ 14,882	¥ 14,882
Court granted preliminary approval of the parties settlement agreement \| $	$ 2,250
Subsequent Event
COMMITMENTS AND CONTINGENCIES
Court granted preliminary approval of the parties settlement agreement \| $	$ 2,250
Future minimum advertising commitments
COMMITMENTS AND CONTINGENCIES
Non cancellable contractual obligation \| ¥		¥ 110,500	¥ 110,300

FAIR VALUE MEASUREMENT (Details) - Short-term Investments - Fair value recurring - CNY (¥) ¥ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
FAIR VALUE MEASUREMENT
Short-term investments	¥ 2,764,368	¥ 812,225	¥ 884,996
Significant other observable inputs (Level 2)
FAIR VALUE MEASUREMENT
Short-term investments	¥ 2,764,368	¥ 812,225	¥ 884,996

RESTRICTED NET ASSETS (Details) ¥ in Millions	6 Months Ended
RESTRICTED NET ASSETS (Details) ¥ in Millions	Jun. 30, 2022 CNY (¥)
RESTRICTED NET ASSETS
Annual appropriations of net after tax profits to be set aside as general reserve fund or statutory surplus fund	10.00%
Restricted net assets	¥ 938.0
Percentage of total restricted net assets to total consolidated net assets	8.25%
Foreign Invested Enterprise \| General Reserve Fund \| CHINA
RESTRICTED NET ASSETS
Appropriation of after-tax profits to non distributable reserve funds, percentage	10.00%
Required general reserve registered capital ratio to deforce compulsory net profit allocation to general reserve	50.00%
Domestic Enterprise \| Statutory Surplus Reserve \| CHINA
RESTRICTED NET ASSETS
Appropriation of after tax profit to statutory surplus fund required percentage minimum	10.00%
Required statutory surplus registered capital ratio to deforce compulsory net profit allocation to statutory surplus	50.00%

Subsequent Event - Additional Information (Details) - ADR $ in Millions	1 Months Ended
	Mar. 31, 2022 USD ($)
Stock repurchase program, authorized amount	$ 150
Stock repurchase program, period in force	12 months