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China – Zhaopin reports growth following launch of new products

27 May 2015

Chinese job board Zhaopin (ZPIN: NYSE) yesterday reported revenue for the third quarter ending 31 March 2015 of RMB 317.5 million (USD 51.8 million). An increase of 18.1% compared with RMB 268.8 million (USD 43.9 million) during the same quarter last year.

  Q3 2014 Q3 2013 Change
Revenue RMB 317.5 million RMB 268.8 million +18.1%
USD 51.8 million USD 43.9 million
Operating Profit RMB 279.3 million RMB 237.9 million +17.4%
USD 45.6 million USD 38.8 million
Operating Income RMB 62.8 million RMB 53.3 million +17.8%
USD 10.3 million USD 8.7 million

Evan Guo, CEO and Director of Zhaopin, commented: "Zhaopin had another strong quarter of solid operational and financial growth, as we again exceeded the upper end of our revenue guidance. Our expansion strategy continues to deliver strong results as we further penetrate into China's vast small-and medium-sized enterprise market by serving 291,563 unique customers during the quarter, an increase of 24% over the same period last year.”

"We launched a number of new products during the past quarter, including 'Quick Feedback' and 'Easy Hire,' which have broadened our mobile service offerings and enhanced the user experience by streamlining the recruitment process for both jobseekers and employers. Highpin, Zhaopin's high-end online recruitment platform, also continues to grow rapidly, as new functionalities were added, and demand for experienced white-collar workers in China increases.”

“The expanding suite of products has also enabled us to better meet the needs of employers by cross and up-selling of our growing portfolio of service offerings. We are confident in our ability to deliver more value to employers and jobseekers as we look forward to closing out our fiscal year with another strong quarter," Mr Guo added.

The company operates two primary business segments; Online Recruitment Services and Other Services, which encompasses campus recruitment, assessment services, and other HR related services. 

  Q3 2014 Q3 2013 Change
Online Recruitment RMB 261.7 million RMB 216.7 million +20.8%
USD 42.7 million USD 35.4 million
Other Services RMB 55.7 million RMB 52.1 million +6.9%
USD 9.1 million USD 8.5 million

Zhaopin listed on the New York Stock Exchange on 12 June 2014. Prior to this the company entered into a Share Purchase Agreement on 22 May 2014 with Chinese job board JobsDB, an entity controlled by SEEK International Investments, Zhaopin’s direct controlling shareholder. Zhaopin acquired 100% equity interest in JobsDB China Investments Limited from JobsDB for a total cash consideration of USD 15.7 million. 

Jobs DB China Investments Limited indirectly controls 75.6% of Shenzhen Xijier Human Resources Co., Ltd (known as CJOL), a privately held People’s Republic of China company that offers recruitment services in Southern China. The acquisition was finalised on 20 June 2014.

Looking forward, and based on current market conditions and Zhaopin’s current operations, total estimated revenues for the fourth quarter are expected to be in the range of RMB 320 million (USD 52.2 million) to RMB 330 million (USD 53.9 million). This represents an increase of between 13% and 16% compared with the same period last year.

In trading yesterday, the company’s share price closed down 2.4% at USD 14.64. Based on its current share price, the company has a market value of USD 753.1 million.