Exhibit 99.1
(51JOB, INC. LOGO)
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 2004 FINANCIAL RESULTS
SHANGHAI, MARCH 14, 2005 - 51JOB, INC. (NASDAQ: JOBS), a leading provider of
integrated human resource services in China, announced today unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2004.
FOURTH QUARTER 2004 FINANCIAL SUMMARY:
o Total revenues of RMB120.4 million (US$14.5 million) increased 31.8%
year-over-year
o Fully diluted earnings per common share of RMB0.21
o Fully diluted earnings per American Depositary Share (ADS) of RMB0.42
FISCAL YEAR 2004 FINANCIAL HIGHLIGHTS:
o Total revenues increased 63.6% over 2003 to RMB479.9 million (US$58.0
million)
o Gross margin expanded to 50.8% from 45.9% in 2003
o Income before tax grew 166.0% to RMB95.2 million (US$11.5 million) from
RMB35.8 million in 2003
o Net income increased 87.6% to RMB61.1 million (US$7.4 million) compared
with RMB32.6 million in 2003
Commenting on the results, Rick Yan, President and Chief Executive Officer of
51job, Inc., said, "Although fourth quarter results were below our expectations,
2004 was a strong year of growth and progress for 51job. In addition to
significant year-over-year increases in revenues and net income, we achieved
several operating milestones, including conducting transactions with over
140,000 corporate customers and expanding our nationwide network to 20 offices
across China."
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51job, Inc. Reports Fourth Quarter and Fiscal Year 2004 Financial Results
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"For 2005, we remain focused on further strengthening our brand as the leading
integrated human resource services provider in China," continued Mr. Yan. "We
believe that we are uniquely positioned to serve customers of all sizes with our
large geographic footprint, multiple distribution channels and broad array of
products and services. Our salesforce, which is now over 1,000-strong
nationwide, is aggressively acquiring new customers and up-selling new products
and services to existing clients. We are building upon solid fundamentals and a
significant market opportunity. We believe that 51job is poised for continued
growth and profitability in 2005 and beyond."
FOURTH QUARTER 2004 UNAUDITED FINANCIAL RESULTS
Total revenues for the fourth quarter ended December 31, 2004 were RMB120.4
million (US$14.5 million), an increase of 31.8% from RMB91.3 million for the
same quarter in 2003. Net revenues, which reflect total revenues less business
taxes and related surcharges, increased to RMB114.2 million (US$13.8 million) in
the fourth quarter of 2004 from RMB86.9 million in the same period last year.
The year-over-year revenue growth was driven primarily by volume increases in
the Company's recruitment advertising businesses.
Print advertising revenues for the fourth quarter of 2004 increased 30.2% to
RMB73.9 million (US$8.9 million) compared with RMB56.8 million for the same
quarter in 2003. The revenue increase was primarily due to the higher volume of
recruitment advertisements placed in Career Post Weekly. The estimated number of
print advertising pages generated in the fourth quarter of 2004 was 2,346
compared with 1,485 estimated pages in the December 2003 quarter.
Online recruitment services revenues for the fourth quarter of 2004 were RMB29.6
million (US$3.6 million), a 26.7% growth from RMB23.4 million for the fourth
quarter last year. The increase was principally attributable to the higher
number of unique employers using the Company's online recruitment services.
Unique employers using online recruitment services increased to 22,966 in the
fourth quarter of 2004 compared with 16,001 in the same period last year.
Executive search revenues for the fourth quarter of 2004 increased 24.7% to
RMB6.0 million (US$0.7 million) from RMB4.8 million for the same quarter last
year. For the fourth quarter of 2004, other human resource related revenues were
RMB10.8 million (US$1.3 million), a 69.8% growth
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from RMB6.4 million for the December 2003 quarter due to increased customer
acceptance of new products and services.
Gross profit for the fourth quarter of 2004 was RMB55.7 million (US$6.7
million), representing an increase of 27.8% from RMB43.6 million for the same
quarter last year. Gross margin, which is equal to gross profit divided by net
revenues, was 48.8% in the fourth quarter of 2004 compared with 50.1% in the
year-ago quarter.
Operating expenses for the fourth quarter of 2004 were RMB37.0 million (US$4.5
million) compared with RMB23.7 million for the same period last year. Operating
expenses as a percentage of net revenues was 32.4% for the fourth quarter of
2004 compared with 27.2% in the December 2003 quarter, due primarily to a
planned increase in sales and marketing expenditures.
Sales and marketing expenses for the fourth quarter of 2004 grew to RMB20.1
million (US$2.4 million) from RMB11.8 million for the same quarter in 2003
mainly due to the hiring of additional sales personnel and increased spending on
advertising, promotional and brand building activities.
General and administrative expenses for the fourth quarter of 2004 was RMB13.6
million (US$1.6 million) compared with RMB10.7 million for the fourth quarter
last year due to higher costs associated with operating three more offices in
2004, personnel additions, professional services fees and increased expenses
related to being a public company.
Net income for the fourth quarter of 2004 was RMB12.1 million (US$1.5 million)
compared with RMB19.2 million for the same period in 2003. The year-over-year
decrease in net income was affected by tax exemptions available to the Company
in the December 2003 quarter, the substantial majority of which have expired.
Fully diluted earnings per common share for the fourth quarter of 2004 was
RMB0.21 compared with RMB0.43 for the same quarter in 2003. Fully diluted
earnings per ADS in the fourth quarter of 2004 was RMB0.42 compared with RMB0.86
in the fourth quarter of 2003. The fully diluted weighted average number of
common shares outstanding increased to approximately 56.6 million in the fourth
quarter as a result of the issuance of 12,075,000 common shares in the Company's
initial public offering and the conversion of 14,058,466 Series A Preference
Shares into common shares.
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FISCAL YEAR 2004 UNAUDITED FINANCIAL RESULTS
Total revenues for 2004 were RMB479.9 million (US$58.0 million), an increase of
63.6% from RMB293.3 million for 2003. Net revenues increased to RMB456.1 million
(US$55.1 million) in 2004 from RMB280.1 million in the prior year. The estimated
number of print advertising pages generated in 2004 was 9,001 compared with
4,635 estimated pages in 2003. Unique employers using online recruitment
services increased to 39,317 in 2004 compared with 25,880 in 2003.
Gross profit in 2004 grew 80.0% to RMB231.5 million (US$28.0 million) from
RMB128.6 million in 2003. Gross margin improved to 50.8% in 2004 compared with
45.9% in the prior year due to economies of scale.
Net income in 2004 increased 87.6% to RMB61.1 million (US$7.4 million) compared
with RMB32.6 million in 2003. The effective tax rate in 2004 was 35.8%,
significantly higher than 8.9% in 2003 due to the expiration of a substantial
majority of the Company's tax exemptions in late 2003. Fully diluted earnings
per common share in 2004 was RMB1.26 compared with RMB0.75 in 2003. Fully
diluted earnings per ADS in 2004 was RMB2.52 compared with RMB1.50 in 2003.
As of December 31, 2004, cash and cash equivalents were RMB848.3 million
(US$102.5 million), an increase from RMB115.1 million as of December 31, 2003.
The increase in cash was primarily the result of net proceeds of approximately
US$77 million from the Company's initial public offering and higher net income.
BUSINESS OUTLOOK
Based on current market and operating conditions, the Company's revenue target
is in the range of RMB132 to RMB138 million and the Company's fully diluted
earnings per common share target is between RMB0.16 and RMB0.21 for the first
quarter of 2005. In accordance with its sales and marketing plan, the Company
increased spending on mass media advertising and promotion in the first quarter.
Additionally, profitability in the first quarter of 2005 is expected to be
impacted by increased headcount, higher costs associated with Sarbanes Oxley
compliance, professional services fees and other expenses associated with being
a public company.
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ADJUSTMENTS TO PRIOR QUARTERLY RESULTS
As previously announced, the Company had discovered a clerical error that
affected some prior period results. The adjustments arose because, in the course
of automating certain accounting processes at the Company, an accounting clerk
erroneously made manual adjustments that duplicated the automated entries. The
adjustment to the second quarter of 2004 will reduce previously reported
revenues by RMB1.3 million (US$157,000) and previously reported net income by
RMB0.8 million (US$94,000). The adjustment to the third quarter of 2004 will
reduce previously reported revenues by RMB2.2 million (US$262,000) and
previously reported net income by RMB1.4 million (US$169,000).
OTHER COMPANY NEWS
On October 4, 2004, the Company completed its initial public offering of
6,037,500 ADSs, including an over-allotment option to the underwriters to
purchase an additional 787,500 ADSs, at US$14.00 per ADS. Each ADS represents
two common shares. Additionally, upon the closing of the initial public
offering, the Company's outstanding Series A Preference Shares of 14,058,466
were converted into common shares.
In February 2005, the Company announced the launch of a new sales office in
Changchun, the capital of Jilin province. Publication and distribution of a
local edition of Career Post Weekly commenced at the end of February.
In February 2005, Jones Haijun Yu was promoted to Vice President of Sales. Mr.
Yu joined 51job at inception in 1998. He has held several positions within the
organization, including responsibilities for online operations and distribution
and merchandising, prior to assuming his leadership duties in sales management
in 2000.
CONFERENCE CALL INFORMATION
Management of 51job will host a conference call at 8:30 a.m. Eastern Standard
Time on March 14, 2005 (9:30 p.m. Shanghai / Hong Kong time zone) to discuss its
fourth quarter and fiscal year 2004 results. The call will be available live and
on replay in the "Investor Relations" section of 51job's website at
www.51job.com or directly at ir.51job.com for U.S.-based participants. Please go
to the
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website at least fifteen minutes early to register, download and install any
necessary audio software. Participants may also dial into the teleconference at
+1-800-946-0712 (+1-719-457-2641 for international callers) and provide the
passcode 9408443. An audio replay will be available through March 21, 2005, by
calling +1-888-203-1112 (+1-719-457-0820 for international callers) and entering
the passcode 9408443.
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 in Career Post Weekly and online recruitment services at
www.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 network in China
spans 20 cities with local editions of Career Post Weekly and Hong Kong.
SAFE HARBOR STATEMENT
Statements in this release regarding targets for the first quarter of 2005,
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 2005; any
accounting adjustments that may occur during the quarterly close; 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
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targets prior to announcing final results for the first quarter or as a result
of new information, future events or otherwise.
- FINANCIAL TABLES TO FOLLOW -
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51JOB, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
--------------------------------------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2003 2004 2004
(UNAUDITED) (UNAUDITED) (UNAUDITED)
------------ ------------ ------------
RMB RMB USD (NOTE 1)
Revenues:
Print advertising 56,772,034 73,945,040 8,934,337
Online recruitment services 23,389,879 29,629,940 3,580,008
Executive search 4,822,007 6,015,427 726,808
Other human resource related revenues 6,361,608 10,799,061 1,304,786
----------- ----------- ----------
Total revenues 91,345,528 120,389,468 14,545,939
----------- ----------- ----------
Less: Business and related tax (4,414,739) (6,214,815) (750,899)
----------- ----------- ----------
Net revenues 86,930,789 114,174,653 13,795,041
----------- ----------- ----------
Cost of services (43,364,928) (58,483,535) (7,066,216)
----------- ----------- ----------
Gross profit 43,565,861 55,691,118 6,728,825
----------- ----------- ----------
Operating expenses:
Sales and marketing (11,833,966) (20,115,071) (2,430,384)
General and administrative (10,705,711) (13,606,899) (1,644,040)
Share-based compensation - share options (Note 2) (1,140,255) (3,288,795) (397,365)
----------- ----------- ----------
Total operating expenses (23,679,932) (37,010,765) (4,471,789)
----------- ----------- ----------
Income from operations 19,885,929 18,680,353 2,257,035
Interest and investment income 298,974 2,167,733 261,914
Other income (expense) 860,755 (5,098) (616)
----------- ----------- ----------
Income before provision for income tax 21,045,658 20,842,988 2,518,334
Income tax expense (1,876,885) (8,776,388) (1,060,398)
----------- ----------- ----------
Net income 19,168,773 12,066,600 1,457,935
=========== =========== ==========
Amount allocated to participating holders of Series A
Preference Shares (6,227,274) (100,841) (12,184)
----------- ----------- ----------
Income attributable to common shareholders 12,941,499 11,965,759 1,445,751
=========== =========== ==========
Other comprehensive income:
Currency translation adjustments (456,622) 105,517 12,749
Unrealized gain (loss) for investment 55,498 (59,236) (7,157)
----------- ----------- ----------
Comprehensive income 18,767,649 12,112,881 1,463,527
=========== =========== ==========
Earnings per share:
Basic 0.46 0.22 0.03
Diluted 0.43 0.21 0.03
Earnings per ADS (Note 3):
Basic 0.91 0.44 0.05
Diluted 0.86 0.42 0.05
Weighted average number of common shares outstanding:
Basic 28,426,537 54,397,014 54,397,014
Diluted 30,066,064 56,585,937 56,585,937
- -----------
Note 1: The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB8.2765 on December 31, 2004 in The City of
New York for cable transfers of RMB as certified for customs purposes
by the Federal Reserve Bank of New York.
Note 2: Aggregate share-based compensation expense was RMB1,308,398 for the
three months ended December 31, 2003 and RMB3,688,666 (US$445,679) for
the three months ended December 31, 2004.
Note 3: Each ADS represents two common shares.
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51JOB, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED
---------------------------------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2003 2004 2004
(UNAUDITED) (UNAUDITED)
------------ ------------ ------------
RMB RMB USD (NOTE 1)
Revenues:
Print advertising 182,606,297 300,651,791 36,325,958
Online recruitment services 76,960,121 111,508,533 13,472,909
Executive search 15,748,331 24,907,914 3,009,474
Other human resource related revenues 18,019,611 42,875,597 5,180,402
------------ ------------ -----------
Total revenues 293,334,360 479,943,835 57,988,743
------------ ------------ -----------
Less: Business and related tax (13,215,419) (23,823,953) (2,878,506)
------------ ------------ -----------
Net revenues 280,118,941 456,119,882 55,110,238
------------ ------------ -----------
Cost of services (151,477,142) (224,606,635) (27,137,877)
------------ ------------ -----------
Gross profit 128,641,799 231,513,247 27,972,361
------------ ------------ -----------
Operating expenses:
Sales and marketing (38,619,523) (67,271,096) (8,127,964)
General and administrative (38,135,612) (55,175,493) (6,666,525)
Share-based compensation - share options (Note 2) (13,482,546) (18,678,238) (2,256,780)
Share-based compensation - founder shares (4,622,466) - -
------------ ------------ -----------
Total operating expenses (94,860,147) (141,124,827) (17,051,269)
------------ ------------ -----------
Income from operations 33,781,652 90,388,420 10,921,092
Interest and investment income 930,288 2,846,422 343,916
Other income 1,080,334 1,966,374 237,585
------------ ------------ -----------
Income before provision for income tax 35,792,274 95,201,216 11,502,594
Income tax expense (3,192,011) (34,058,184) (4,115,047)
------------ ------------ -----------
Net income 32,600,263 61,143,032 7,387,547
============ ============ ===========
Amount allocated to participating holders of Series A
Preference Shares (10,615,466) (13,986,417) (1,689,895)
------------ ------------ -----------
Income attributable to common shareholders 21,984,797 47,156,615 5,697,652
============ ============ ===========
Other comprehensive income:
Currency translation adjustments 76,964 236,144 28,532
Unrealized gain (loss) for investment (297,532) (299,451) (36,181)
------------ ------------ -----------
Comprehensive income 32,397,695 61,079,725 7,379,898
============ ============ ===========
Earnings per share:
Basic 0.83 1.32 0.16
Diluted 0.75 1.26 0.15
Earnings per ADS (Note 3):
Basic 1.65 2.65 0.32
Diluted 1.50 2.52 0.30
Weighted average number of common shares outstanding:
Basic 26,594,228 35,593,374 35,593,374
Diluted 29,323,325 37,483,019 37,483,019
- -----------
Note 1: The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB8.2765 on December 31, 2004 in The City of
New York for cable transfers of RMB as certified for customs purposes
by the Federal Reserve Bank of New York.
Note 2: Aggregate share-based compensation expense was RMB18,701,563 for the
year ended December 31, 2003 and RMB20,489,734 (US$2,475,652) for the
year ended December 31, 2004.
Note 3: Each ADS represents two common shares.
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51JOB, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2003 2004 2004
(UNAUDITED) (UNAUDITED)
----------- ----------- -----------
RMB RMB USD (NOTE 1)
ASSETS
Current assets:
Cash 115,084,572 848,292,672 102,494,131
Accounts receivable (net of allowance of RMB1,318,528 and
RMB3,689,222 as of December 31, 2003 and December 31, 2004,
respectively) 17,419,248 23,252,468 2,809,457
Prepayments and other current assets 8,657,133 14,675,948 1,773,207
Deferred tax assets, current 4,412,423 7,426,098 897,251
----------- ----------- -----------
Total current assets 145,573,376 893,647,186 107,974,045
----------- ----------- -----------
Investments 10,479,008 10,495,490 1,268,107
Property and equipment 17,849,517 22,534,875 2,722,754
Intangible assets 7,712,595 6,126,749 740,258
Other long-term assets 3,638,418 4,201,919 507,693
Deferred tax assets, non-current 151,365 376,122 45,445
----------- ----------- -----------
Total assets 185,404,279 937,382,341 113,258,303
=========== =========== ===========
LIABILITIES
Current liabilities:
Accounts payable 11,140,037 9,820,033 1,186,496
Due to related parties 6,504,773 1,577,873 190,645
Salary and employee related accrual 9,148,551 11,698,665 1,413,480
Taxes payable 6,036,064 30,586,768 3,695,616
Advance from customers 17,447,831 17,777,757 2,147,980
Other payables and accruals 3,504,953 13,933,686 1,683,524
Deferred tax liabilities, current 2,313,982 169,237 20,448
----------- ----------- -----------
Total current liabilities 56,096,191 85,564,019 10,338,189
----------- ----------- -----------
Deferred tax liabilities, non-current 23,533 - -
----------- ----------- -----------
Total liabilities 56,119,724 85,564,019 10,338,189
----------- ----------- -----------
Commitments and contingencies - - -
Shareholders' equity:
Common shares (US$0.0001 par value; 57,000,000 shares
authorized, 28,772,115 and 55,616,678 shares issued and
outstanding as of December 31, 2003 and December 31, 2004,
respectively) 23,816 46,044 5,563
Series A Preference Shares (US$0.0001 par value; 15,000,000
shares authorized; 13,678,466 issued and outstanding as of
December 31, 2003 with liquidation value of US$1.0417) 11,332 - -
Additional paid-in capital 213,866,913 869,125,807 105,011,274
Deferred share-based compensation (46,338,280) (40,154,027) (4,851,571)
Statutory reserves 9,470,398 16,756,461 2,024,583
Other comprehensive loss (438,351) (501,659) (60,612)
Retained earnings/(accumulated deficit) (47,311,273) 6,545,696 790,877
----------- ----------- -----------
Total shareholders' equity 129,284,555 851,818,322 102,920,114
----------- ----------- -----------
Total liabilities and shareholders' equity 185,404,279 937,382,341 113,258,303
=========== =========== ===========
- -----------
Note 1: The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB8.2765 on December 31, 2004 in The City of
New York for cable transfers of RMB as certified for customs purposes
by the Federal Reserve Bank of New York.
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