FOR IMMEDIATE RELEASE
Contact:
Linda Chien
Investor Relations
51job, Inc.
+(86-21) 5292-0720
investor.relations@51job.com
51job, Inc. Reports Fourth Quarter and Fiscal Year 2005 Financial Results
SHANGHAI, China, February 27, 2006–51job, Inc. (Nasdaq: JOBS), a leading provider of integrated human resource services in China, announced today unaudited financial results for the fourth quarter of 2005 and for the year ended December 31, 2005.
| | | |
Fourth Quarter 2005 Financial Summary:
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l
l
l | | Total revenues increased 20.2% over Q4 2004 to RMB144.7 million (US$17.9 million), in line with
the Company’s guidance range of RMB140 to RMB150 million
Gross margin reached 54.4% compared with 48.8% in Q4 2004
Fully diluted earnings per common share were RMB0.34 (US$0.08 per ADS), exceeding the Company’s
expectations of RMB0.20 to RMB0.30 |
| | | |
Fiscal Year 2005 Financial Highlights:
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| | | |
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l
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l | | Total revenues increased 24.1% over 2004 to RMB595.6 million (US$73.8 million)
Gross margin improved to 52.1% from 50.8% in 2004
Fully diluted earnings per common share were RMB1.07 (US$0.27 per ADS)
Excluding foreign currency translation losses, non-GAAP adjusted net income grew 18.7% to
RMB72.6 million (US$9.0 million) compared with RMB61.1 million in 2004 |
Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, “Driven by gross margin improvement, we are pleased that fourth quarter earnings per share came in above our expectations. We continued to leverage our service platform and benefited from economies of scale.
“Our business experiences seasonal fluctuations and we believe that a trend has emerged with fourth quarter revenues being sequentially lower than third quarter levels. Based on our analysis of fourth quarter results for the past two years, we attribute this pattern to changes in customer behavior including a shift in HR budget allocation toward earlier parts of the calendar year and a growing preference among some HR managers to take holidays at year-end.
“In the fourth quarter, our online recruitment services business again exhibited solid year-over-year growth due to our successful new customer acquisition and cross-selling efforts. We also saw greater customer interest in our other HR related services. The strength of these two businesses offset the slower growth of our print advertising business.
“For 2006, we continue to focus on driving revenue growth, improving margins and increasing profitability. We believe the HR services industry remains in the early stages of development. With the strength of our brand, unparalleled geographic sales coverage and integrated service platform, we are well-positioned to continue to capture this growing market opportunity in China,” said Mr. Yan.
Fourth Quarter 2005 Unaudited Financial Results
Total revenues for the fourth quarter ended December 31, 2005 were RMB144.7 million (US$17.9 million), an increase of 20.2% from RMB120.4 million for the same quarter in 2004. Excluding the revenue contribution of the stationery business which the Company ceased to operate during the fourth quarter of 2004, total revenues grew 22.5% in the fourth quarter of 2005 from RMB118.1 million in the fourth quarter of 2004.
Print advertising revenues for the fourth quarter of 2005 increased 6.8% to RMB79.0 million (US$9.8 million) compared with RMB73.9 million for the same quarter in 2004 due primarily to a higher number of recruitment advertisements placed in51job Weekly. The estimated number of print advertising pages generated in the fourth quarter of 2005 increased to 2,471 compared with 2,346 pages in the same quarter in 2004.
Online recruitment services revenues for the fourth quarter of 2005 were RMB44.4 million (US$5.5 million), representing a 49.8% growth from RMB29.6 million for the same quarter last year. The increase was principally attributable to a larger number of unique employers using the Company’s online recruitment services, which increased to 34,081 in the fourth quarter of 2005 from 22,966 in the same period last year.
Executive search revenues for the fourth quarter of 2005 were RMB6.0 million (US$0.7 million), relatively unchanged from the same quarter last year. For the fourth quarter of 2005, other human resource related revenues grew 42.3% to RMB15.4 million (US$1.9 million) from RMB10.8 million for the fourth quarter last year due to increased demand for corporate training and business process outsourcing services. Excluding the stationery business, revenues from other human resource related services increased 79.5% from RMB8.6 million in the fourth quarter of 2004.
Gross profit for the fourth quarter of 2005 was RMB74.5 million (US$9.2 million), representing an increase of 33.8% from RMB55.7 million for the same quarter last year. Gross margin, which is calculated by dividing gross profit by net revenues, increased to 54.4% in the fourth quarter of 2005 compared with 48.8% in fourth quarter of 2004 due to improved operating efficiencies.
Operating expenses for the fourth quarter of 2005 were RMB53.8 million (US$6.7 million) compared with RMB37.0 million for the same period last year. Operating expenses as a percentage of net revenues was 39.3% for the fourth quarter of 2005 compared with 32.4% in the fourth quarter of 2004. Sales and marketing expenses for the fourth quarter of 2005 grew to RMB27.4 million (US$3.4 million) from RMB20.1 million for the same quarter in 2004 mainly due to an increase in sales and account management staff. General and administrative expenses for the fourth quarter of 2005 increased to RMB23.2 million (US$2.9 million) from RMB13.6 million for the fourth quarter last year primarily as a result of higher professional services fees, operating several additional sales offices over the comparable period in 2004 and personnel additions.
Income from operations for the fourth quarter of 2005 grew 10.7% to RMB20.7 million (US$2.6 million) from RMB18.7 million for the same period last year. Interest and investment income increased to RMB5.2 million (US$0.6 million) in the fourth quarter of 2005 from RMB2.2 million in the fourth quarter of 2004 due to increased interest income from higher interest rates. Other income in the fourth quarter of 2005 included a RMB4.6 million (US$0.6 million) financial subsidy.
Net income for the fourth quarter of 2005 increased 60.2% to RMB19.3 million (US$2.4 million) from RMB12.1 million for the same period in 2004. Fully diluted earnings per common share for the fourth quarter of 2005 were RMB0.34 (US$0.04) compared with RMB0.21 for the same quarter in 2004. Fully diluted earnings per ADS in the fourth quarter of 2005 were RMB0.68 (US$0.08) compared with RMB0.42 in the fourth quarter of 2004.
Fiscal Year 2005 Unaudited Financial Results
Total revenues for 2005 were RMB595.6 million (US$73.8 million), an increase of 24.1% from RMB479.9 million for 2004. Excluding the revenue contribution of the stationery business, total revenues grew 27.0% in 2005 to RMB593.4 million (US$73.5 million) compared with RMB467.3 million in 2004.
The estimated number of print advertising pages generated in 2005 increased 32.0% to 11,884 from 9,001 estimated pages in 2004. Unique employers using the Company’s online recruitment services grew 44.0% to 56,599 in 2005 from 39,317 in 2004.
Gross profit in 2005 grew 26.4% to RMB292.7 million (US$36.3 million) from RMB231.5 million in 2004. Gross margin improved to 52.1% in 2005 compared with 50.8% in the prior year. Income from operations for 2005 was RMB77.0 million (US$9.5 million) compared with RMB90.4 million in the last year.
Net income for 2005 was RMB61.4 million (US$7.6 million) compared with RMB61.1 million for 2004. Fully diluted earnings per common share in 2005 were RMB1.07 (US$0.13) compared with RMB1.26 in 2004. Fully diluted earnings per ADS in 2005 were RMB2.15 (US$0.27) compared with RMB2.52 in 2004. The increase in the basic weighted average number of common shares from 2004 to 2005 was primarily due to the Company’s initial public offering and the conversion of Series A Preference Shares into common shares in October 2004, which was partially offset by the repurchases of ADSs under a stock repurchase program.
On July 21, 2005, the Chinese government changed its foreign exchange policy to permit the Renminbi to fluctuate within a band against a basket of certain foreign currencies. This change in policy resulted in an appreciation in the value of the Renminbi against the U.S. dollar. As the Renminbi is the Company’s functional currency, the Company recognized a corresponding foreign currency translation loss of RMB11.3 million (US$1.4 million) in 2005.
Excluding the foreign currency translation loss which had no impact on the Company’s cash earnings, non-GAAP adjusted net income for 2005 was RMB72.6 million (US$9.0 million), a 18.7% increase from RMB61.1 million for 2004. Non-GAAP adjusted fully diluted earnings per common share were RMB1.27 (US$0.16) in 2005 compared with RMB1.26 in 2004. Non-GAAP adjusted fully diluted earnings per ADS in 2005 were RMB2.54 (US$0.31) compared with RMB2.52 in 2004.
As of December 31, 2005, cash and cash equivalents were RMB830.6 million (US$102.9 million) compared with RMB848.3 million at year-end 2004 and RMB874.3 million at September 30, 2005. The decrease in cash was primarily the result of installment payments made under the Company’s letter of intent related to the purchase of a new office complex and the execution of the Company’s share repurchase program.
In May 2005, the Company announced that its shareholders had approved a stock repurchase program authorizing the repurchase of up to US$25 million worth of outstanding ADSs from time to time over a period of 12 months. In the fourth quarter of 2005, the Company repurchased in the open market 454,533 ADSs, representing 909,066 common shares, at an average price of US$13.38 per ADS. Since the inception of the program in May 2005, the Company repurchased a total of 686,438 ADSs, representing 1,372,876 common shares, for an aggregate consideration of US$9.4 million in 2005.
Business Outlook
For the first quarter of 2006, based on current market and operating conditions, the Company’s revenue target is in the range of RMB165 to RMB175 million (US$20.4 to US$21.7 million). The Company’s fully diluted earnings target for the first quarter of 2006 is in the range of RMB0.28 to RMB0.38 per common share (US$0.07 to US$0.09 per ADS). The earnings per share target excludes foreign currency translation losses or gains that may arise from further Renminbi revaluations.
Other Company News
In February, the Company changed its newspaper contractor toHuman Resource Newsin the city of Chongqing. There was no interruption in the printing and distribution of51job Weeklyduring the transition.
In January 2006, the Company launched a sales office in the municipality of Tianjin. The addition of Tianjin increases the number of cities with local editions of the51job Weeklyrecruitment advertising publication to 24 across mainland China. The urban population of Tianjin was approximately 5.6 million in 2004 according to the Tianjin Statistics Bureau. The Company’s exclusive newspaper contractor isMetro Expressand the first local edition of51job Weeklyin Tianjin was published in late January 2006.
In October 2005, the Company signed a letter of intent to purchase a new office complex in Zhangjiang High Technology Park in Shanghai’s New Pudong Area. The new complex is expected to become the Company’s principal executive offices and house its nationwide technology and online service center. The purchase price of the new premises is approximately RMB114 million and the Company expects to incur additional expenses associated with renovations, relocation and other related items. The Company expects to begin occupying the new complex in late 2006.
Currency Convenience Translation
For the convenience of readers, certain RMB amounts have been translated into U.S. dollars at the rate of RMB8.0702 to US$1.00, the noon buying rate in the City of New York for cable transfers of RMB per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York, as of December 30, 2005.
Conference Call Information
Management of 51job will host a conference call at 8:30 a.m. Eastern Time on February 27, 2006 (9:30 p.m. Shanghai / Hong Kong time zone) to discuss fourth quarter and full year 2005 results. The call will be available live and on replay through 51job’s investor relations website,ir.51job.com. Please go to the website at least fifteen minutes early to register and download and install any necessary audio software. Participants may also dial into the teleconference at +1-800-310-6649 (+1-719-457-2693 for international callers) and provide the passcode 6171014. An audio replay of the conference call will be available three hours after completion through March 6, 2006, by dialing +1-888-203-1112 (+1-719-457-0820 for international callers) and entering the passcode 6171014.
About 51job
51job, Inc. (Nasdaq: JOBS) is a leading provider of integrated human resource services in China with a strong focus on recruitment related services. Offering a broad array of products and services, 51job connects millions of job seekers with employment opportunities and streamlines the recruitment process and human resource administration for tens of thousands of companies in China. Through print advertisements in51job Weeklyand online recruitment services atwww.51job.com, both domestic Chinese employers and multinational companies alike are able to attract, identify and recruit new employees. 51job also provides executive search services and a number of other value-added human resource services, including training, proprietary software applications, business process outsourcing and salary surveys. 51job’s nationwide office network in China spans 24 cities with local editions of51job Weeklyand Hong Kong.
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 measures of adjusted net income, adjusted earnings per share and adjusted earnings per ADS, which are adjusted from results based on GAAP to exclude the impact of foreign currency translation gain or loss. 51job believes these non-GAAP measures 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. As the Renminbi is the Company’s functional currency, GAAP requires translation into Renminbi at the end of each reporting period of the Company’s cash held in U.S. dollars, which results in a corresponding foreign currency translation gain or loss. Because such translation will not result in cash settlement nor impact the Company’s cash earnings, 51job believes the non-GAAP financial measures provide useful information to investors to assess and analyze the Company’s core operating results. 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.
Safe Harbor Statement
Statements in this release regarding targets for the first quarter of 2006, future business and operating results constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon management’s current expectations, and actual results could differ materially. Among the factors that could cause actual results to differ are the number of recruitment advertisements placed, sales orders received and customer contracts executed during the remaining weeks of the first quarter of 2006; any accounting adjustments that may occur during the quarterly close; fluctuations in the value of the Renminbi against the U.S. dollar and other currencies; behavioral and operational changes of customers in meeting their human resource needs as they respond to evolving social, economic and political changes in China; introduction by its competitors of new or enhanced products or services; price competition in the market for the various human resource services that the Company provides in China; and fluctuations in general economic conditions. For additional information on these and other factors that may affect the Company’s financial results, please refer to the Company’s filings with the Securities and Exchange Commission. 51job undertakes no obligation to update these targets prior to announcing final results for the first quarter or as a result of new information, future events or otherwise.
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- Financial tables to follow -
51job, Inc.
Consolidated Statements of Operations
| | | | | | | | | | | | | |
| | | For the Three Months Ended |
| | | December 31, 2004 | | December 31, 2005 | | December 31, 2005 |
| | | (unaudited) | | (unaudited) | | (unaudited) |
| | | RMB | | RMB | | USD (Note 1) |
| | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | |
| Print advertising | | | 73,945,040 | | | | 78,992,763 | | | | 9,788,204 | |
| Online recruitment services | | | 29,629,940 | | | | 44,382,236 | | | | 5,499,521 | |
| Executive search | | | 6,015,427 | | | | 5,987,354 | | | | 741,909 | |
| Other human resource related revenues | | | 10,799,061 | | | | 15,369,692 | | | | 1,904,500 | |
| Total revenues | | | 120,389,468 | | | | 144,732,045 | | | | 17,934,134 | |
| Less: Business and related tax | | | (6,214,815 | ) | | | (7,897,822 | ) | | | (978,640 | ) |
| Net revenues | | | 114,174,653 | | | | 136,834,223 | | | | 16,955,494 | |
| Cost of services | | | (58,483,535 | ) | | | (62,337,450 | ) | | | (7,724,400 | ) |
| Gross profit | | | 55,691,118 | | | | 74,496,773 | | | | 9,231,094 | |
| | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | |
| Sales and marketing | | | (20,115,071 | ) | | | (27,404,175 | ) | | | (3,395,724 | ) |
| General and administrative | | | (13,606,899 | ) | | | (23,214,429 | ) | | | (2,876,562 | ) |
| Share-based compensation – share option (Note 2) | | | (3,288,795 | ) | | | (3,195,278 | ) | | | (395,935 | ) |
| Total operating expenses | | | (37,010,765 | ) | | | (53,813,882 | ) | | | (6,668,221 | ) |
| Income from operations | | | 18,680,353 | | | | 20,682,891 | | | | 2,562,873 | |
| Loss from foreign currency translation | | | (3,773 | ) | | | (689,108 | ) | | | (85,389 | ) |
| Interest and investment income | | | 2,167,733 | | | | 5,151,537 | | | | 638,340 | |
| Other income | | | (1,325 | ) | | | 4,732,330 | | | | 586,396 | |
| Income before provision for income tax | | | 20,842,988 | | | | 29,877,650 | | | | 3,702,220 | |
| Income tax expense | | | (8,776,388 | ) | | | (10,552,830 | ) | | | (1,307,630 | ) |
| Net income | | | 12,066,600 | | | | 19,324,820 | | | | 2,394,590 | |
| Amount allocated to participating holders of Series A Preference Shares | | | (100,841 | ) | | | – | | | | – | |
| Income attributable to common shareholders | | | 11,965,759 | | | | 19,324,820 | | | | 2,394,590 | |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | |
| Basic | | | 0.22 | | | | 0.35 | | | | 0.04 | |
| Diluted | | | 0.21 | | | | 0.34 | | | | 0.04 | |
| | | | | | | | | | | | | |
| Earnings per ADS (Note 3): | | | | | | | | | | | | |
| Basic | | | 0.44 | | | | 0.70 | | | | 0.09 | |
| Diluted | | | 0.42 | | | | 0.68 | | | | 0.08 | |
| | | | | | | | | | | | | |
| Weighted average number of common shares outstanding: | | | | | | | | | | | | |
| Basic | | | 54,397,014 | | | | 55,302,429 | | | | 55,302,429 | |
| Diluted | | | 56,585,937 | | | | 56,718,719 | | | | 56,718,719 | |
| | | |
Note 1:
Note 2:
Note 3: | |
The conversion of RMB amounts into USD amounts is based on
the noon buying rate of USD1.00=RMB8.0702 on December 30,
2005 in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank
of New York.
Aggregate share-based compensation expense attributable to
cost of services and operating expenses was RMB3,688,666 for
the three months ended December 31, 2004 and RMB3,524,406
(US$436,719) for the three months ended December 31, 2005.
Each ADS represents two common shares. |
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2
51job, Inc.
Consolidated Statements of Operations
| | | | | | | | | | | | | |
| | | For the Year Ended |
| | | December 31, 2004 | | December 31, 2005 | | December 31, 2005 |
| | | (audited) | | (unaudited) | | (unaudited) |
| | | RMB | | RMB | | USD (Note 1) |
| | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | |
| Print advertising | | | 300,651,791 | | | | 356,284,649 | | | | 44,148,181 | |
| Online recruitment services | | | 111,508,533 | | | | 159,494,922 | | | | 19,763,441 | |
| Executive search | | | 24,907,914 | | | | 26,306,740 | | | | 3,259,738 | |
| Other human resource related revenues | | | 42,875,597 | | | | 53,507,789 | | | | 6,630,293 | |
| Total revenues | | | 479,943,835 | | | | 595,594,100 | | | | 73,801,653 | |
| Less: Business and related tax | | | (23,823,953 | ) | | | (33,567,880 | ) | | | (4,159,485 | ) |
| Net revenues | | | 456,119,882 | | | | 562,026,220 | | | | 69,642,168 | |
| Cost of services | | | (224,606,635 | ) | | | (269,328,384 | ) | | | (33,373,198 | ) |
| Gross profit | | | 231,513,247 | | | | 292,697,836 | | | | 36,268,970 | |
| | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | |
| Sales and marketing | | | (67,271,096 | ) | | | (113,656,714 | ) | | | (14,083,507 | ) |
| General and administrative | | | (55,175,493 | ) | | | (88,978,985 | ) | | | (11,025,623 | ) |
| Share-based compensation – share option (Note 2) | | | (18,678,238 | ) | | | (13,073,480 | ) | | | (1,619,970 | ) |
| Total operating expenses | | | (141,124,827 | ) | | | (215,709,179 | ) | | | (26,729,100 | ) |
| Income from operations | | | 90,388,420 | | | | 76,988,657 | | | | 9,539,870 | |
| Loss from foreign currency translation | | | (2,158 | ) | | | (11,320,194 | ) | | | (1,402,715 | ) |
| Interest and investment income | | | 2,846,422 | | | | 20,385,151 | | | | 2,525,978 | |
| Other income | | | 1,968,532 | | | | 5,313,723 | | | | 658,437 | |
| Income before provision for income tax | | | 95,201,216 | | | | 91,367,337 | | | | 11,321,570 | |
| Income tax expense | | | (34,058,184 | ) | | | (29,945,033 | ) | | | (3,710,569 | ) |
| Net income | | | 61,143,032 | | | | 61,422,304 | | | | 7,611,001 | |
| Amount allocated to participating holders of Series A Preference Shares | | | (13,986,417 | ) | | | – | | | | – | |
| Income attributable to common shareholders | | | 47,156,615 | | | | 61,422,304 | | | | 7,611,001 | |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | |
| Basic | | | 1.32 | | | | 1.10 | | | | 0.14 | |
| Diluted | | | 1.26 | | | | 1.07 | | | | 0.13 | |
| | | | | | | | | | | | | |
| Earnings per ADS (Note 3): | | | | | | | | | | | | |
| Basic | | | 2.65 | | | | 2.21 | | | | 0.27 | |
| Diluted | | | 2.52 | | | | 2.15 | | | | 0.27 | |
| | | | | | | | | | | | | |
| Weighted average number of common shares outstanding: | | | | | | | | | | | | |
| Basic | | | 35,593,374 | | | | 55,607,716 | | | | 55,607,716 | |
| Diluted | | | 37,483,019 | | | | 57,254,454 | | | | 57,254,454 | |
| | | |
Note 1:
Note 2:
Note 3: | |
The conversion of RMB amounts into USD is amounts based on
the noon buying rate of USD1.00=RMB8.0702 on December 30,
2005 in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank
of New York.
Aggregate share-based compensation expense attributable to
cost of services and operating expenses was RMB20,489,734
for 2004 and RMB14,553,322 (US$1,803,341) for 2005.
Each ADS represents two common shares. |
| | | |
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51job, Inc.
Reconciliation of GAAP and Non-GAAP Results
| | | | | | | | | | | | | |
| | | For the Three Months Ended |
| | | December 31, 2004 | | December 31, 2005 | | December 31, 2005 |
| | | (unaudited) | | (unaudited) | | (unaudited) |
| | | RMB | | RMB | | USD (Note 1) |
| GAAP income before provision for income tax | | | 20,842,988 | | | | 29,877,650 | | | | 3,702,220 | |
| Add back: Loss from foreign currency translation | | | 3,773 | | | | 689,108 | | | | 85,389 | |
| Non-GAAP income before provision for income tax | | | 20,846,761 | | | | 30,566,758 | | | | 3,787,609 | |
| Non-GAAP income tax expense | | | (8,777,520 | ) | | | (10,545,340 | ) | | | (1,306,701 | ) |
| Non-GAAP adjusted net income | | | 12,069,241 | | | | 20,021,418 | | | | 2,480,908 | |
| Non-GAAP amount allocated to participating holders of Series A Preference Shares | | | (100,863 | ) | | | – | | | | – | |
| Non-GAAP income attributable to common shareholders | | | 11,968,378 | | | | 20,021,418 | | | | 2,480,908 | |
| | | | | | | | | | | | | |
| Non-GAAP adjusted earnings per share: | | | | | | | | | | | | |
| Basic | | | 0.22 | | | | 0.36 | | | | 0.04 | |
| Diluted | | | 0.21 | | | | 0.35 | | | | 0.04 | |
| | | | | | | | | | | | | |
| Non-GAAP adjusted earnings per ADS (Note 2): | | | | | | | | | | | | |
| Basic | | | 0.44 | | | | 0.72 | | | | 0.09 | |
| Diluted | | | 0.42 | | | | 0.71 | | | | 0.09 | |
| | | | | | | | | | | | | |
| Weighted average number of common shares outstanding: | | | | | | | | | | | | |
| Basic | | | 54,397,014 | | | | 55,302,429 | | | | 55,302,429 | |
| Diluted | | | 56,585,937 | | | | 56,718,719 | | | | 56,718,719 | |
| | | | | | | | | | | | | |
| | | For the Year Ended |
| | | December 31, 2004 | | December 31, 2005 | | December 31, 2005 |
| | | (unaudited) | | (unaudited) | | (unaudited) |
| | | RMB | | RMB | | USD (Note 1) |
| GAAP income before provision for income tax | | | 95,201,216 | | | | 91,367,337 | | | | 11,321,570 | |
| Add back: Loss from foreign currency translation | | | 2,158 | | | | 11,320,194 | | | | 1,402,715 | |
| Non-GAAP income before provision for income tax | | | 95,203,374 | | | | 102,687,531 | | | | 12,724,285 | |
| Non-GAAP income tax expense | | | (34,058,831 | ) | | | (30,084,285 | ) | | | (3,727,824 | ) |
| Non-GAAP adjusted net income | | | 61,144,543 | | | | 72,603,246 | | | | 8,996,461 | |
| Non-GAAP amount allocated to participating holders of Series A Preference Shares | | | (13,986,762 | ) | | | – | | | | – | |
| Non-GAAP income attributable to common shareholders | | | 47,157,781 | | | | 72,603,246 | | | | 8,996,461 | |
| | | | | | | | | | | | | |
| Non-GAAP adjusted earnings per share: | | | | | | | | | | | | |
| Basic | | | 1.32 | | | | 1.31 | | | | 0.16 | |
| Diluted | | | 1.26 | | | | 1.27 | | | | 0.16 | |
| | | | | | | | | | | | | |
| Non-GAAP adjusted earnings per ADS (Note 2): | | | | | | | | | | | | |
| Basic | | | 2.65 | | | | 2.61 | | | | 0.32 | |
| Diluted | | | 2.52 | | | | 2.54 | | | | 0.31 | |
| | | | | | | | | | | | | |
| Weighted average number of common shares outstanding: | | | | | | | | | | | | |
| Basic | | | 35,593,374 | | | | 55,607,716 | | | | 55,607,716 | |
| Diluted | | | 37,483,019 | | | | 57,254,454 | | | | 57,254,454 | |
| | | |
Note 1:
Note 2: | |
The conversion of RMB amounts into USD amounts is based on
the noon buying rate of USD1.00=RMB8.0702 on December 30,
2005 in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank
of New York.
Each ADS represents two common shares. |
4
51job, Inc.
Consolidated Balance Sheets
| | | | | | | | | | | | | |
| | | December 31, | | December 31, | | December 31, |
| | | 2004 | | 2005 | | 2005 |
| | | (audited) | | (unaudited) | | (unaudited) |
| | | RMB | | RMB | | USD (Note 1) |
| ASSETS | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Current assets: | | | | | | | | | | | | |
| Cash | | | 848,292,672 | | | | 830,633,550 | | | | 102,926,018 | |
| Short-term investments | | | – | | | | 10,554,529 | | | | 1,307,840 | |
| Accounts receivable (net of allowance of RMB3,689,222 and RMB2,860,275 as of December 31, 2004 and 2005, respectively) | | | 23,252,468 | | | | 22,222,865 | | | | 2,753,694 | |
| Prepayments and other current assets | | | 14,675,948 | | | | 23,265,437 | | | | 2,882,882 | |
| Deferred tax assets, current | | | 7,426,098 | | | | 5,867,820 | | | | 727,097 | |
| Total current assets | | | 893,647,186 | | | | 892,544,201 | | | | 110,597,531 | |
| Investments | | | 10,495,490 | | | | – | | | | – | |
| Property and equipment | | | 22,534,875 | | | | 32,357,875 | | | | 4,009,551 | |
| Intangible assets | | | 6,126,749 | | | | 11,380,835 | | | | 1,410,230 | |
| Other long-term assets | | | 4,201,919 | | | | 26,724,335 | | | | 3,311,484 | |
| Deferred tax assets, non-current | | | 376,122 | | | | 412,314 | | | | 51,091 | |
| Total assets | | | 937,382,341 | | | | 963,419,560 | | | | 119,379,887 | |
| LIABILITIES | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | | |
| Accounts payable | | | 9,820,033 | | | | 7,358,046 | | | | 911,755 | |
| Due to related parties | | | 1,577,873 | | | | 1,505,515 | | | | 186,552 | |
| Salary and employee related accrual | | | 11,698,665 | | | | 19,339,789 | | | | 2,396,445 | |
| Taxes payable | | | 30,586,768 | | | | 23,201,967 | | | | 2,875,017 | |
| Advance from customers | | | 17,777,757 | | | | 40,619,516 | | | | 5,033,273 | |
| Other payables and accruals | | | 13,933,686 | | | | 17,515,264 | | | | 2,170,363 | |
| Deferred tax liabilities, current | | | 169,237 | | | | – | | | | – | |
| Total current liabilities | | | 85,564,019 | | | | 109,540,097 | | | | 13,573,405 | |
| Total liabilities | | | 85,564,019 | | | | 109,540,097 | | | | 13,573,405 | |
| Commitments and contingencies | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | |
| Shareholders’ equity: | | | | | | | | | | | | |
| Common shares (US$0.0001 par value; 500,000,000 shares authorized, 55,616,679 and 54,876,079 shares issued and outstanding as of December 31, 2004 and 2005, respectively) | | | 46,044 | | | | 45,451 | | | | 5,632 | |
| Additional paid-in capital | | | 869,125,807 | | | | 848,423,068 | | | | 105,130,365 | |
| Deferred share-based compensation | | | (40,154,027 | ) | | | (23,141,471 | ) | | | (2,867,521 | ) |
| Statutory reserves | | | 16,756,461 | | | | 3,680,707 | | | | 456,086 | |
| Other comprehensive loss | | | (501,659 | ) | | | (318,174 | ) | | | (39,426 | ) |
| Retained earnings | | | 6,545,696 | | | | 25,189,882 | | | | 3,121,346 | |
| Total shareholders’ equity | | | 851,818,322 | | | | 853,879,463 | | | | 105,806,482 | |
| Total liabilities and shareholders’ equity | | | 937,382,341 | | | | 963,419,560 | | | | 119,379,887 | |
| | | |
Note 1: | |
The conversion of RMB amounts into USD amounts is based on
the noon buying rate of USD1.00=RMB8.0702 on December 30,
2005 in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank
of New York. |
| | | |
5
