51job, Inc., a provider of integrated human resource services in China, has announced unaudited financial results for the second quarter ended June 30, 2005.
Total revenues increased 26.2% over Q2 2004 to RMB147.4 million (US$17.8 million), higher than its guidance of RMB135 to RMB145 million. Fully diluted earnings per common share were RMB0.28 (US$0.07 per ADS), higher than its guidance of RMB0.18 to RMB0.25
Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, “We are pleased that second quarter revenues and profitability were above our forecasted ranges as we experienced good uptake in online products during the quarter. Reflecting historical trends, print advertising revenues were slightly lower compared to the seasonally strong first quarter, but this was offset by higher revenue growth for online recruitment services. Our integrated offline and online service platform continues to uniquely position us ahead of the competition to best serve HR customers of all types, sizes and needs.”
“We closely monitor industry developments and continue to observe that market demand for human resource services has moderated thus far in 2005 compared to the same period last year. Despite this relative demand moderation, we were able to exceed our financial targets through cost management and execution of our business plan. Although we have had to incur additional operating expenses subsequent to becoming a public company, our gross margin has been consistent. For the rest of the year, we remain focused on initiatives to drive revenues, to improve margins, to further strengthen our market position and to invest in our long-term growth,” said Mr. Yan.