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 FIRST QUARTER 2005 FINANCIAL RESULTS
SHANGHAI, MAY 9, 2005 - 51JOB, INC. (NASDAQ: JOBS), a leading provider of
integrated human resource services in China, announced today unaudited financial
results for the first quarter ended March 31, 2005.
FIRST QUARTER 2005 FINANCIAL HIGHLIGHTS:
o Total revenues increased approximately 30% year-over-year to RMB142.7
million (US$17.2 million) compared with RMB109.9 million for the first
quarter of 2004
o Fully diluted earnings per common share were RMB0.16
o Fully diluted earnings per American Depositary Share (ADS) were RMB0.32
Commenting on the results, Rick Yan, President and Chief Executive Officer of
51job, Inc., said, "Although the seasonally strong post-Chinese New Year
recruitment period began more than two weeks later in 2005 compared to 2004, we
are pleased that first quarter revenues exceeded our expectations. In our print
advertising business, we witnessed solid page volume growth in both our more
established cities and our newer cities. In the online recruitment services
business, we saw a greater number of first-time customers as well as an increase
in the number of clients choosing our more sophisticated visibility packages to
attract job seekers during the peak period. We also experienced an increase in
candidate placements in our executive search business and gained momentum in our
other human resource related services with additional HR outsourcing contracts."
"In line with our expectations and guidance, our first quarter profitability was
impacted by cost increases," continued Mr. Yan. "We increased spending in
accordance with our marketing plan to promote our brand and to reinforce
awareness of our services among employers and job seekers
- more -
51job, Inc. Reports First Quarter 2005 Financial Results
May 9, 2005
Page 2
surrounding the Chinese New Year peak season. We also incurred higher expenses
associated with a planned increase in sales headcount and additional
professional services fees. Additionally, our gross profit was affected by lower
promotional prices in some cities."
"However, we are encouraged by our top line performance in the first quarter and
believe that our businesses are off to a good start in 2005. Our focus remains
to drive revenue growth and to continue to strengthen our market position in the
rapidly developing HR services market in China," said Mr. Yan.
FIRST QUARTER 2005 UNAUDITED FINANCIAL RESULTS
Total revenues for the first quarter ended March 31, 2005 were RMB142.7 million
(US$17.2 million), an increase of 29.8% from RMB109.9 million for the same
quarter in 2004. Excluding the revenue contribution of the stationery business,
total revenues grew 30.1% in the first quarter of 2005 to RMB140.7 million
(US$17.0 million) compared with RMB108.2 million in the same quarter last year.
Net revenues, which reflect total revenues less business taxes and related
surcharges, increased to RMB134.4 million (US$16.2 million) in the first quarter
of 2005 from RMB104.9 million in the same period last year.
Print advertising revenues for the first quarter of 2005 increased 24.4% to
RMB93.7 million (US$11.3 million) compared with RMB75.3 million for the same
quarter in 2004. The revenue increase was primarily due to the higher volume of
recruitment advertisements placed in Career Post Weekly, which was partially
offset by lower promotional prices introduced in some cities and increasing
revenue contribution from the Company's lower-priced cities. The estimated
number of print advertising pages generated in the first quarter of 2005
increased to 3,107 compared with 2,022 estimated print advertising pages in the
same quarter in 2004.
Online recruitment services revenues for the first quarter of 2005 were RMB31.8
million (US$3.8 million), representing a 32.2% growth from RMB24.1 million for
the same quarter last year. The increase was principally attributable to a
higher number of first-time customers using the Company's online recruitment
services. Unique employers using online recruitment services increased to 25,628
in the first quarter of 2005, compared with 18,018 in the same period last year.
- more -
51job, Inc. Reports First Quarter 2005 Financial Results
May 9, 2005
Page 3
Executive search revenues for the first quarter of 2005 increased 97.1% to
RMB6.9 million (US$0.8 million) from RMB3.5 million for the same quarter last
year on increased candidate assignments and placements. For the first quarter of
2005, other human resource related revenues were RMB10.3 million (US$1.2
million), representing a 46.0% growth from RMB7.0 million for the first quarter
last year. Excluding the stationery business, revenues from other human resource
related services increased 57.7% to RMB8.3 million (US$1.0 million) in the first
quarter of 2005 from RMB5.3 million for the same quarter last year.
Gross profit for the first quarter of 2005 was RMB65.4 million (US$7.9 million),
representing an increase of 27.7% from RMB51.2 million for the same quarter last
year. Gross margin, which is equal to gross profit divided by net revenues, was
48.7% in the first quarter of 2005 compared with 48.9% in the same quarter in
2004.
Operating expenses for the first quarter of 2005 were RMB57.4 million (US$6.9
million) compared with RMB37.5 million for the same period last year. Operating
expenses as a percentage of net revenues was 42.7% for the first quarter of 2005
compared with 35.8% in the March 2004 quarter, due primarily to a planned
increase in sales and marketing expenditures for the Chinese New Year period in
2005, and higher general and administrative expenses.
Sales and marketing expenses for the first quarter of 2005 grew to RMB31.7
million (US$3.8 million) from RMB13.6 million for the same quarter in 2004
mainly due to a major national television advertising campaign we conducted in
the first quarter, the hiring of additional sales personnel and increased
spending on other promotional activities.
General and administrative expenses for the first quarter of 2005 was RMB22.4
million (US$2.7 million) compared with RMB15.2 million for the first quarter
last year. The increase was primarily attributable to higher costs associated
with professional services fees, operating three additional sales offices over
the comparable 2004 period, increased personnel and provisions for certain aged
accounts receivable.
Income from operations was RMB8.1 million (US$1.0 million) compared with RMB13.7
million for the same period last year. Interest and investment income increased
significantly to RMB4.9 million (US$0.6 million) in the first quarter of 2005
from RMB0.2 million due to increased interest
- more -
51job, Inc. Reports First Quarter 2005 Financial Results
May 9, 2005
Page 4
income from higher bank deposits, which include RMB635.5 million (US$76.8
million) in net proceeds from the Company's initial public offering completed in
October 2004.
Net income for the first quarter of 2005 was RMB9.2 million (US$1.1 million)
compared with RMB8.8 million for the same period in 2004. Fully diluted earnings
per common share for the first quarter of 2005 were RMB0.16 compared with
RMB0.19 for the same quarter in 2004. Fully diluted earnings per ADS in the
first quarter of 2005 were RMB0.32 compared with RMB0.39 in the first quarter of
2004. The weighted average number of common shares outstanding increased as a
result of the Company's initial public offering and the conversion of Series A
Preference Shares into common shares in October 2004.
As of March 31, 2005, cash and cash equivalents were RMB848.7 million (US$102.5
million) compared with RMB848.3 million as of December 31, 2004.
BUSINESS OUTLOOK
For the second quarter of 2005, based on current market and operating
conditions, the Company's revenue target is in the range of RMB135 to RMB145
million and the Company's fully diluted earnings per common share target is
between RMB0.18 and RMB0.25.
CONFERENCE CALL INFORMATION
Management of 51job will host a conference call at 8:30 a.m. Eastern Standard
Time on May 9, 2005 (8:30 p.m. Shanghai / Hong Kong time zone) to discuss first
quarter 2005 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 website at least
fifteen minutes early to register, download and install any necessary audio
software. Participants may also dial into the teleconference at +1-800-475-3716
(+1-719-457-2728 for international callers) and provide the passcode 3623418. An
audio replay will be available through May 16, 2005, by calling +1-888-203-1112
(+1-719-457-0820 for international callers) and entering the passcode 3623418.
- more -
51job, Inc. Reports First Quarter 2005 Financial Results
May 9, 2005
Page 5
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 office 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 second 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 second quarter of 2005; any
accounting adjustments that may occur during the quarterly close; 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 second quarter or as a result of new
information, future events or otherwise.
- FINANCIAL TABLES TO FOLLOW -
- more -
51job, Inc. Reports First Quarter 2005 Financial Results
May 9, 2005
Page 6
51JOB, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
----------------------------------------------------
MARCH 31, 2004 MARCH 31, 2005 MARCH 31, 2005
(UNAUDITED) (UNAUDITED) (UNAUDITED)
-------------- -------------- --------------
RMB RMB USD (NOTE 1)
Revenues:
Print advertising 75,342,560 93,690,402 11,320,051
Online recruitment services 24,060,419 31,805,222 3,842,835
Executive search 3,519,745 6,938,222 838,303
Other human resource related revenues 7,024,741 10,256,021 1,239,174
----------- ----------- ----------
Total revenues 109,947,465 142,689,867 17,240,363
----------- ----------- ----------
Less: Business and related tax (5,091,727) (8,252,063) (997,047)
----------- ----------- ----------
Net revenues 104,855,738 134,437,804 16,243,316
----------- ----------- ----------
Cost of services (53,611,580) (69,005,139) (8,337,478)
----------- ----------- ----------
Gross profit 51,244,158 65,432,665 7,905,838
----------- ----------- ----------
Operating expenses:
Sales and marketing (13,603,702) (31,703,792) (3,830,580)
General and administrative (15,170,955) (22,358,405) (2,701,432)
Share-based compensation - share options (Note 2) (8,755,475) (3,290,803) (397,608)
----------- ----------- ----------
Total operating expenses (37,530,132) (57,353,000) (6,929,620)
----------- ----------- ----------
Income from operations 13,714,026 8,079,665 976,218
Interest and investment income 242,907 4,873,803 588,872
Other income 72,433 421,659 50,947
----------- ----------- ----------
Income before provision for income tax 14,029,366 13,375,127 1,616,037
Income tax expense (5,216,883) (4,199,835) (507,441)
----------- ----------- ----------
Net income 8,812,483 9,175,292 1,108,596
=========== =========== ==========
Amount allocated to participating holders of Series A
Preference Shares (2,839,604) - -
----------- ----------- ----------
Income attributable to common shareholders 5,972,879 9,175,292 1,108,596
=========== =========== ==========
Earnings per share:
Basic 0.21 0.16 0.02
Diluted 0.19 0.16 0.02
Earnings per ADS (Note 3):
Basic 0.41 0.33 0.04
Diluted 0.39 0.32 0.04
Weighted average number of common shares outstanding:
Basic 28,868,169 55,659,607 55,659,607
Diluted 30,913,517 57,618,226 57,618,226
- ----------
Note 1: The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB8.2765 on March 31, 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.
Note 2: Aggregate share-based compensation expense attributable to cost of
services and operating expenses was RMB9,258,698 for the three months
ended March 31, 2004 and RMB3,671,596 (US$443,617) for the three months
ended March 31, 2005.
Note 3: Each ADS represents two common shares.
- more -
51job, Inc. Reports First Quarter 2005 Financial Results
May 9, 2005
Page 7
51JOB, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, MARCH 31, MARCH 31,
2004 2005 2005
(AUDITED) (UNAUDITED) (UNAUDITED)
------------ ----------- ------------
RMB RMB USD (NOTE 1)
ASSETS
Current assets:
Cash 848,292,672 848,674,447 102,540,258
Accounts receivable (net of allowance of RMB3,689,222 and
RMB3,923,416 as of December 31, 2004 and March 31, 2005,
respectively) 23,252,468 44,575,402 5,385,779
Prepayments and other current assets 14,675,948 11,752,152 1,419,942
Deferred tax assets, current 7,426,098 7,803,452 942,844
----------- ----------- -----------
Total current assets 893,647,186 912,805,453 110,288,823
----------- ----------- -----------
Investments 10,495,490 10,485,562 1,266,908
Property and equipment 22,534,875 30,258,102 3,655,906
Intangible assets 6,126,749 8,873,930 1,072,184
Other long-term assets 4,201,919 3,828,039 462,519
Deferred tax assets, non-current 376,122 412,314 49,817
----------- ----------- -----------
Total assets 937,382,341 966,663,400 116,796,157
=========== =========== ===========
LIABILITIES
Current liabilities:
Accounts payable 9,820,033 18,030,949 2,178,572
Due to related parties 1,577,873 1,435,377 173,428
Salary and employee related accrual 11,698,665 10,631,020 1,284,483
Taxes payable 30,586,768 22,450,988 2,712,619
Advance from customers 17,777,757 31,117,112 3,759,695
Other payables and accruals 13,933,686 17,970,198 2,171,232
Deferred tax liabilities, current 169,237 - -
----------- ----------- -----------
Total current liabilities 85,564,019 101,635,644 12,280,029
----------- ----------- -----------
Deferred tax liabilities, non-current - - -
----------- ----------- -----------
Total liabilities 85,564,019 101,635,644 12,280,029
----------- ----------- -----------
Commitments and contingencies - - -
Shareholders' equity:
Common shares (US$0.0001 par value; 57,000,000 shares
authorized, 55,616,679 and 55,725,602 shares issued and
outstanding as of December 31, 2004 and March 31, 2005,
respectively) 46,044 46,130 5,574
Additional paid-in capital 869,125,807 868,796,340 104,971,466
Deferred share-based compensation (40,154,027) (35,735,908) (4,317,756)
Statutory reserves 16,756,461 16,756,461 2,024,583
Other comprehensive loss (501,659) (556,255) (67,212)
Retained earnings 6,545,696 15,720,988 1,899,473
----------- ----------- -----------
Total shareholders' equity 851,818,322 865,027,756 104,516,128
----------- ----------- -----------
Total liabilities and shareholders' equity 937,382,341 966,663,400 116,796,157
=========== =========== ===========
- ----------
Note 1: The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB8.2765 on March 31, 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.
###