51job, Inc. Reports Fourth Quarter and Fiscal Year 2021 Financial Results
51job, Inc. (NASDAQ: JOBS) reported its Q4 2021 financial results with net revenues increasing by 15.7% year-over-year to RMB1,345.2 million (US$211.1 million). For the full year, net revenues rose by 19.8% to RMB4,420.4 million (US$693.7 million). However, income from operations fell by 36.4% to RMB551.3 million (US$86.5 million) due to higher sales and marketing expenses. Fully diluted EPS for Q4 was RMB5.23 (US$0.82), a slight increase from last year. The company recognized losses from foreign currency translation totaling RMB10.9 million (US$1.7 million).
- Net revenues for Q4 2021 were RMB1,345.2 million, a 15.7% increase from Q4 2020.
- Full year net revenues increased 19.8% to RMB4,420.4 million.
- Online recruitment services revenues grew 12.0% in Q4.
- Other HR related revenues surged 19.0% in Q4.
- Cash and short-term investments totaled RMB10,587.0 million as of December 31, 2021.
- Income from operations decreased by 36.4% to RMB551.3 million in 2021.
- Gross margin declined to 62.1% in 2021 from 65.8% in 2020.
- Sales and marketing expenses increased by 34.3% in Q4 2021.
SHANGHAI, March 31, 2022 /PRNewswire/ -- 51job, Inc. (Nasdaq: JOBS) ("51job" or the "Company"), a leading provider of integrated human resource services in China, announced today its unaudited financial results for the fourth quarter and fiscal year of 2021 ended December 31, 2021.
Fourth Quarter 2021 Financial Highlights:
- Net revenues increased
15.7% over Q4 2020 to RMB1,345.2 million (US$211.1 million ) - Online recruitment services revenues increased
12.0% - Other human resource related revenues increased
19.0% - Income from operations was RMB304.6 million (US
$47.8 million ) - Fully diluted earnings per share was RMB5.23 (US
$0.82) - Non-GAAP adjusted fully diluted earnings per share[1] was RMB5.99 (US
$0.94)
Fiscal Year 2021 Financial Highlights:
- Net revenues increased
19.8% from 2020 to RMB4,420.4 million (US$693.7 million ) - Online recruitment services revenues increased
11.6% - Other human resource related revenues increased
31.3% - Income from operations was RMB551.3 million (US
$86.5 million ) - Fully diluted earnings per share was RMB9.40 (US
$1.47) - Non-GAAP adjusted fully diluted earnings per share was RMB13.12 (US
$2.06)
[1] Adjusted fully diluted earnings per share is a non-GAAP financial measure, which excludes share-based compensation expense, loss from foreign currency translation, and changes in fair value of listed equity securities investment and long-term investment, as well as the related tax effect of these items. Please refer to the "Use of Non-GAAP Financial Measures" section and "Reconciliation of GAAP and Non-GAAP Results" tables contained in this press release. |
Fourth Quarter 2021 Unaudited Financial Results
Net revenues for the fourth quarter ended December 31, 2021 were RMB1,345.2 million (US
Online recruitment services revenues for the fourth quarter of 2021 increased
Other human resource related revenues for the fourth quarter of 2021 increased
Cost of services for the fourth quarter of 2021 increased
Operating expenses for the fourth quarter of 2021 increased
General and administrative expenses for the fourth quarter of 2021 increased
Income from operations for the fourth quarter of 2021 was RMB304.6 million (US
The Company recognized a loss from foreign currency translation of RMB10.9 million (US
The Company recognized a mark-to-market, non-cash loss of RMB10.7 million (US
Other income in the fourth quarter of 2021 included local government financial subsidies of RMB98.6 million (US
Net income attributable to 51job for the fourth quarter of 2021 was RMB355.2 million (US
In the fourth quarter of 2021, total share-based compensation expense was RMB29.9 million (US
Excluding share-based compensation expense, loss from foreign currency translation and change in fair value of listed equity securities investment, as well as the related tax effect of these items, non-GAAP adjusted net income attributable to 51job for the fourth quarter of 2021 was RMB406.7 million (US
Fiscal Year 2021 Unaudited Financial Results
Net revenues in 2021 were RMB4,420.4 million (US
Online recruitment services revenues in 2021 increased
Other human resource related revenues in 2021 increased
Cost of services in 2021 increased
Income from operations in 2021 decreased
Net income attributable to 51job in 2021 was RMB640.7 million (US
Excluding share-based compensation expense, loss from foreign currency translation, and changes in fair value of listed equity securities investment and long-term investment, as well as the related tax effect of these items, non-GAAP adjusted net income attributable to 51job in 2021 was RMB894.4 million (US
As of December 31, 2021, cash and short-term investments totaled RMB10,587.0 million (US
Currency Convenience Translation
For the convenience of readers, certain Renminbi amounts have been translated into U.S. dollar amounts at the rate of RMB6.3726 to US
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), 51job uses non-GAAP financial measures of income before income tax expense, income tax expense, adjusted net income, adjusted net income attributable to 51job and adjusted earnings per share, which are adjusted from results based on GAAP to exclude share-based compensation expense, loss from foreign currency translation and changes in fair value of listed equity securities investment and long-term investment, as well as the related tax effect of these items. The Company believes excluding share-based compensation expense and its related tax effect from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such expense is not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company believes excluding loss from foreign currency translation and changes in fair value of listed equity securities investment and long-term investment, as well as the related tax effect, from its non-GAAP financial measures is useful for its management and investors as such translation, mark-to-market gain or loss is not indicative of the Company's core business operations and will not result in cash settlement nor impact the Company's cash earnings. 51job also believes these non-GAAP financial measures excluding share-based compensation expense, loss from foreign currency translation and changes in fair value of listed equity securities investment and long-term investment, as well as the related tax effect of these items, are important in helping investors to understand the Company's current financial performance and future prospects and to compare business trends among different reporting periods on a consistent basis. The presentation of these additional measures should not be considered a substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial statements.
About 51job
Founded in 1998, 51job is a leading provider of integrated human resource services in China. With a comprehensive suite of HR solutions, 51job meets the needs of enterprises and job seekers through the entire talent management cycle, from initial recruitment to employee retention and career development. The Company's main online recruitment platforms (http://www.51job.com, http://www.yingjiesheng.com, http://www.51jingying.com, http://www.lagou.com, and http://www.51mdd.com), as well as mobile applications, connect millions of people with employment opportunities every day. 51job also provides a number of other value-added HR services, including business process outsourcing, training, professional assessment, campus recruitment, executive search and compensation analysis. 51job has a call center in Wuhan and a nationwide network of sales and service locations spanning more than 30 cities across China.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "targets," "confident" and similar statements. Among other things, statements that are not historical facts, including statements about 51job's beliefs and expectations, as well as 51job's strategic and operational plans, are or contain forward-looking statements. 51job may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. All forward-looking statements are based upon management's expectations at the time of the statements and involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: execution of 51job's strategies and business plans; growth and trends of the human resource services industry in China; market acceptance of 51job's products and services; competition in the industry; 51job's ability to control costs and expenses; 51job's ability to retain key personnel and attract new talent; relevant government policies and regulations relating to 51job's industry, corporate structure and business operations; seasonality in the business; fluctuations in the value of the Renminbi against the U.S. dollar and other currencies; risks related to acquisitions or investments 51job has made or will make in the future; accounting adjustments that may occur during the quarterly or annual close or auditing process; and fluctuations in general economic and business conditions in China and globally, including the impact of the coronavirus or other pandemic. Further information regarding these and other risks are included in 51job's filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release and based on assumptions that 51job believes to be reasonable as of this date, and 51job undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Contact
Investor Relations, 51job, Inc.
Tel: +86-21-6879-6250
Email: ir@51job.com
51job, Inc. | |||||
Consolidated Statements of Operations and Comprehensive Income | |||||
For the Three Months Ended | |||||
December 31, | December 31, | December 31, | |||
(In thousands, except share and per share data) | (unaudited) | (unaudited) | (unaudited) | ||
RMB | RMB | US$ (Note 1) | |||
Revenues: | |||||
Online recruitment services | 551,562 | 617,703 | 96,931 | ||
Other human resource related revenues | 611,545 | 727,480 | 114,157 | ||
Net revenues | 1,163,107 | 1,345,183 | 211,088 | ||
Cost of services (Note 2) | (414,504) | (535,189) | (83,983) | ||
Gross profit | 748,603 | 809,994 | 127,105 | ||
Operating expenses: | |||||
Sales and marketing (Note 3) | (300,583) | (403,604) | (63,334) | ||
General and administrative (Note 4) | (91,439) | (101,786) | (15,972) | ||
Total operating expenses | (392,022) | (505,390) | (79,306) | ||
Income from operations | 356,581 | 304,604 | 47,799 | ||
Loss from foreign currency translation | (33,851) | (10,917) | (1,713) | ||
Interest and investment income, net | 59,482 | 56,142 | 8,810 | ||
Change in fair value of listed equity securities investment | (9,404) | (10,715) | (1,681) | ||
Fees and expenses related to proposed going-private | — | (3,357) | (527) | ||
Other income, net | 11,691 | 98,335 | 15,431 | ||
Income before income tax expense | 384,499 | 434,092 | 68,119 | ||
Income tax expense | (52,695) | (83,210) | (13,057) | ||
Net income | 331,804 | 350,882 | 55,062 | ||
Net loss attributable to non-controlling interests | 10,244 | 4,273 | 671 | ||
Net income attributable to 51job, Inc. | 342,048 | 355,155 | 55,733 | ||
Net income | 331,804 | 350,882 | 55,062 | ||
Other comprehensive income (loss) | 22,745 | (269) | (42) | ||
Total comprehensive income | 354,549 | 350,613 | 55,020 | ||
Earnings per share: | |||||
Basic | 5.07 | 5.27 | 0.83 | ||
Diluted | 5.01 | 5.23 | 0.82 | ||
Weighted average number of common shares outstanding: | |||||
Basic | 67,402,582 | 67,437,209 | 67,437,209 | ||
Diluted | 68,245,670 | 67,941,118 | 67,941,118 | ||
Notes: | |||||
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.3726 | |||||
to US | |||||
statistical release of the Federal Reserve Board. | |||||
(2) Includes share-based compensation expense of RMB6,307 and RMB4,933 (US | |||||
December 31, 2020 and 2021, respectively. | |||||
(3) Includes share-based compensation expense of RMB5,422 and RMB4,241 (US | |||||
December 31, 2020 and 2021, respectively. | |||||
(4) Includes share-based compensation expense of RMB23,280 and RMB20,717 (US | |||||
December 31, 2020 and 2021, respectively. | |||||
51job, Inc. | |||||
Consolidated Statements of Operations and Comprehensive Income | |||||
For the Year Ended | |||||
December 31, | December 31, | December 31, | |||
(In thousands, except share and per share data) | (unaudited) | (unaudited) | (unaudited) | ||
RMB | RMB | US$ (Note 1) | |||
Revenues: | |||||
Online recruitment services | 2,147,334 | 2,396,209 | 376,017 | ||
Other human resource related revenues | 1,541,617 | 2,024,219 | 317,644 | ||
Net revenues | 3,688,951 | 4,420,428 | 693,661 | ||
Cost of services (Note 2) | (1,261,731) | (1,676,727) | (263,115) | ||
Gross profit | 2,427,220 | 2,743,701 | 430,546 | ||
Operating expenses: | |||||
Sales and marketing (Note 3) | (1,182,677) | (1,790,535) | (280,974) | ||
General and administrative (Note 4) | (377,438) | (401,827) | (63,055) | ||
Total operating expenses | (1,560,115) | (2,192,362) | (344,029) | ||
Income from operations | 867,105 | 551,339 | 86,517 | ||
Loss from foreign currency translation | (53,442) | (15,793) | (2,478) | ||
Interest and investment income, net | 228,500 | 212,690 | 33,376 | ||
Change in fair value of listed equity securities investment | 10,760 | (88,296) | (13,856) | ||
Fees and expenses related to proposed going-private | — | (87,544) | (13,738) | ||
Change in fair value of long-term investment | 39,614 | — | — | ||
Other income, net | 167,308 | 192,233 | 30,166 | ||
Income before income tax expense | 1,259,845 | 764,629 | 119,987 | ||
Income tax expense | (188,417) | (155,721) | (24,436) | ||
Net income | 1,071,428 | 608,908 | 95,551 | ||
Net loss attributable to non-controlling interests | 25,848 | 31,775 | 4,986 | ||
Net income attributable to 51job, Inc. | 1,097,276 | 640,683 | 100,537 | ||
Net income | 1,071,428 | 608,908 | 95,551 | ||
Other comprehensive income (loss) | 22,451 | (415) | (65) | ||
Total comprehensive income | 1,093,879 | 608,493 | 95,486 | ||
Earnings per share: | |||||
Basic | 16.35 | 9.50 | 1.49 | ||
Diluted | 16.12 | 9.40 | 1.47 | ||
Weighted average number of common shares outstanding: | |||||
Basic | 67,101,601 | 67,429,296 | 67,429,296 | ||
Diluted | 68,056,724 | 68,185,891 | 68,185,891 | ||
Notes: | |||||
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.3726 | |||||
to US | |||||
statistical release of the Federal Reserve Board. | |||||
(2) Includes share-based compensation expense of RMB23,648 and RMB24,019 (US | |||||
December 31, 2020 and 2021, respectively. | |||||
(3) Includes share-based compensation expense of RMB20,329 and RMB20,648 (US | |||||
December 31, 2020 and 2021, respectively. | |||||
(4) Includes share-based compensation expense of RMB99,829 and RMB104,889 (US | |||||
December 31, 2020 and 2021, respectively. | |||||
51job, Inc. | |||||
Reconciliation of GAAP and Non-GAAP Results | |||||
For the Three Months Ended | |||||
December 31, | December 31, | December 31, | |||
(In thousands, except share and per share data) | (unaudited) | (unaudited) | (unaudited) | ||
RMB | RMB | US$ (Note 1) | |||
GAAP income before income tax expense | 384,499 | 434,092 | 68,119 | ||
Add: Share-based compensation | 35,009 | 29,891 | 4,691 | ||
Add: Loss from foreign currency translation | 33,851 | 10,917 | 1,713 | ||
Add: Change in fair value of listed equity securities investment | 9,404 | 10,715 | 1,681 | ||
Non-GAAP income before income tax expense | 462,763 | 485,615 | 76,204 | ||
GAAP income tax expense | (52,695) | (83,210) | (13,057) | ||
Tax effect of non-GAAP line items | (208) | (7) | (1) | ||
Non-GAAP income tax expense | (52,903) | (83,217) | (13,058) | ||
Non-GAAP adjusted net income | 409,860 | 402,398 | 63,146 | ||
Non-GAAP adjusted net income attributable to 51job, Inc. | 420,104 | 406,671 | 63,817 | ||
Non-GAAP adjusted earnings per share: | |||||
Basic | 6.23 | 6.03 | 0.95 | ||
Diluted | 6.16 | 5.99 | 0.94 | ||
Weighted average number of common shares outstanding: | |||||
Basic | 67,402,582 | 67,437,209 | 67,437,209 | ||
Diluted | 68,245,670 | 67,941,118 | 67,941,118 | ||
For the Year Ended | |||||
December 31, | December 31, | December 31, | |||
(In thousands, except share and per share data) | (unaudited) | (unaudited) | (unaudited) | ||
RMB | RMB | US$ (Note 1) | |||
GAAP income before income tax expense | 1,259,845 | 764,629 | 119,987 | ||
Add: Share-based compensation | 143,806 | 149,556 | 23,469 | ||
Add: Loss from foreign currency translation | 53,442 | 15,793 | 2,478 | ||
Add (Less): Change in fair value of listed equity securities | (10,760) | 88,296 | 13,856 | ||
Less: Change in fair value of long-term investment | (39,614) | — | — | ||
Non-GAAP income before income tax expense | 1,406,719 | 1,018,274 | 159,790 | ||
GAAP income tax expense | (188,417) | (155,721) | (24,436) | ||
Tax effect of non-GAAP line items | (279) | 79 | 12 | ||
Non-GAAP income tax expense | (188,696) | (155,642) | (24,424) | ||
Non-GAAP adjusted net income | 1,218,023 | 862,632 | 135,366 | ||
Non-GAAP adjusted net income attributable to 51job, Inc. | 1,243,871 | 894,407 | 140,352 | ||
Non-GAAP adjusted earnings per share: | |||||
Basic | 18.54 | 13.26 | 2.08 | ||
Diluted | 18.28 | 13.12 | 2.06 | ||
Weighted average number of common shares outstanding: | |||||
Basic | 67,101,601 | 67,429,296 | 67,429,296 | ||
Diluted | 68,056,724 | 68,185,891 | 68,185,891 | ||
Note (1): The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of | |||||
RMB6.3726 to US | |||||
H.10 weekly statistical release of the Federal Reserve Board. | |||||
51job, Inc. | ||||||
Consolidated Balance Sheets | ||||||
As of | ||||||
December 31, | December 31, | December 31, | ||||
(In thousands, except share and per share data) | (unaudited) | (unaudited) | (unaudited) | |||
RMB | RMB | US$ (Note 1) | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash | 3,292,698 | 10,539,923 | 1,653,944 | |||
Restricted cash | 2,258 | — | — | |||
Short-term investments | 7,469,213 | 47,116 | 7,394 | |||
Accounts receivable (net of allowance of RMB26,798 and | ||||||
RMB27,522 as of December 31, 2020 and 2021, respectively) | 290,480 | 382,164 | 59,970 | |||
Prepayments and other current assets | 492,980 | 561,677 | 88,139 | |||
Total current assets | 11,547,629 | 11,530,880 | 1,809,447 | |||
Non-current assets: | ||||||
Time deposits | 719,189 | 745,450 | 116,977 | |||
Long-term investments | 1,576,250 | 1,474,928 | 231,448 | |||
Property and equipment, net | 273,157 | 755,789 | 118,600 | |||
Goodwill | 1,036,124 | 1,036,124 | 162,590 | |||
Intangible assets, net | 163,503 | 126,497 | 19,850 | |||
Right-of-use assets | 307,869 | 1,839,143 | 288,602 | |||
Other long-term assets | 13,946 | 14,065 | 2,207 | |||
Deferred tax assets | 38,013 | 52,793 | 8,284 | |||
Total non-current assets | 4,128,051 | 6,044,789 | 948,558 | |||
Total assets | 15,675,680 | 17,575,669 | 2,758,005 | |||
LIABILITIES, MEZZANINE EQUITY AND EQUITY | ||||||
Current liabilities: | ||||||
Current portion of long-term bank loan | — | 52,500 | 8,238 | |||
Accounts payable | 83,087 | 136,999 | 21,498 | |||
Salary and employee related accrual | 182,565 | 221,890 | 34,819 | |||
Taxes payable | 172,254 | 212,873 | 33,404 | |||
Advances from customers | 1,158,604 | 1,163,615 | 182,598 | |||
Lease liabilities, current | 34,952 | 42,093 | 6,605 | |||
Other payables and accruals | 1,178,955 | 1,132,921 | 177,780 | |||
Total current liabilities | 2,810,417 | 2,962,891 | 464,942 | |||
Non-current liabilities: | ||||||
Long-term bank loan | — | 997,500 | 156,530 | |||
Lease liabilities, non-current | 44,949 | 37,776 | 5,928 | |||
Deferred tax liabilities | 232,087 | 224,571 | 35,240 | |||
Total non-current liabilities | 277,036 | 1,259,847 | 197,698 | |||
Total liabilities | 3,087,453 | 4,222,738 | 662,640 | |||
Mezzanine equity: | ||||||
Redeemable non-controlling interests | 189,811 | 156,880 | 24,618 | |||
Shareholders' equity: | ||||||
Common shares (US | ||||||
authorized, 67,406,657 and 67,437,209 shares issued and | ||||||
outstanding as of December 31, 2020 and 2021, respectively) | 54 | 54 | 8 | |||
Additional paid-in capital | 5,206,154 | 5,363,570 | 841,661 | |||
Statutory reserves | 18,474 | 18,840 | 2,956 | |||
Accumulated other comprehensive income | 276,975 | 276,560 | 43,398 | |||
Retained earnings | 6,871,090 | 7,511,407 | 1,178,704 | |||
Total 51job, Inc. shareholders' equity | 12,372,747 | 13,170,431 | 2,066,727 | |||
Non-controlling interests | 25,669 | 25,620 | 4,020 | |||
Total equity | 12,398,416 | 13,196,051 | 2,070,747 | |||
Total liabilities, mezzanine equity and equity | 15,675,680 | 17,575,669 | 2,758,005 | |||
Note (1): The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.3726 | ||||||
to US | ||||||
release of the Federal Reserve Board. | ||||||
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SOURCE 51job
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