China-based job board and HR resource services provider 51job Inc. (NSDQ: JOBS) reported net revenue increased by 15.7% in the fourth quarter ended 31 December 2021 when compared to the fourth quarter of 2020.

Revenue growth was boosted by an improvement in Online Recruitment Services revenue and Other Human Resource related’ revenue.

Cost of services for the fourth quarter of 2021 increased 29.1% to RMB 535.2 million (USD 84.1 million) from RMB 414.5 million (USD 65.1 million) for the same quarter in 2020, primarily due to higher employee compensation expenses, headcount additions and greater direct costs, such as venue rental, media production and technology support, incurred in providing campus recruitment services to employers.

Operating margin, which is income from operations as a percentage of net revenues, was 22.6% for the fourth quarter of 2021 compared with 30.7% for the same quarter in 2020.

The company recognised a non-cash loss of RMB 10.7 million (USD 1.7 million) in the fourth quarter of 2021 compared with RMB 9.4 million (USD 1.4 million) in the fourth quarter of 2020 associated with a change in the fair value of listed equity securities investment in Huali University Group Limited, which is traded on the Hong Kong Stock Exchange. The company also recognised RMB 3.4 million (USD 0.5 million) in professional services fees and administrative expenses related to the proposed going-private transaction in the fourth quarter of 2021.

On 2 March it was reported that 51job entered into an amendment to its previously announced agreement and Plan of Merger on 21 June 2021 with Garnet Faith Limited.

51job operates in two primary business segments: Online Recruitment Services and “Other HR”.

Revenue by segment

Online recruitment services revenues for the fourth quarter of 2021 increased 12.0% to RMB 617.7 million (USD 97.1 million) compared with RMB 551.6 million (USD 86.7 million) for the same quarter in 2020, primarily due to an improvement in hiring sentiment, demand and activity from employers in 2021.

Other human resource related revenues for the fourth quarter of 2021 increased 19.0% to RMB 727.5 million (USD 114.2 million) from RMB 611.5 million (USD 96.1 million) for the same quarter in 2020. The growth was primarily driven by robust employer demand for seasonal campus recruitment, business process outsourcing and training services in 2021.

The group also reported net revenues for the full year 2021 of RMB 4.42 billion (USD 694.86 million) an increase of 19.8% from 2020. Online recruitment services revenues in 2021 increased 11.6% while Other human resource related revenues in 2021 increased 31.3%.

51job Inc shares closed yesterday at USD 58.55, down 0.07% on the day and 35.56% above the 52 week low of USD 43.19 set on 10 January 2022. The company has a market cap of USD 3.95 billion.