Tongdao Liepin Group, previously known as Wise Talent Technology Services Co (6100:HKG), the operator of Chinese job board Liepin.com, reported revenue on Friday of RMB 624.8 million (USD 90.7 million) for the three months ended 31 December 2022, a decrease of 18.9% when compared to the previous year.

The group reported loss from operations was RMB 217.6 million (USD 31.6 million) in the first quarter ended 31 December 2022, compared to a profit from operations of RMB 34.1 million (USD 4.9 million) in the three months ended 31 December 2021, primarily attributable to the decrease in revenue because of the resurgence of the pandemic in the fourth quarter of 2022 and the increase in marketing expenses during the FIFA World Cup games in the fourth quarter of 2022.

Loss before taxation was RMB 225.9 million (USD 32.79 million) in the first quarter compared to a profit before taxation of RMB 26.1 million (USD 3.8 million) the year prior.

Tongdao Liepin Group also reported revenue for the full year 2022 of RMB 2.63 billion (USD 3.25 billion), a 0.5% decrease from 2021.

Gross profit for the full year was RMB 2.04 billion (USD 296.1 million) in 2022, a 1.0% decrease from 2021. Net profit was RMB 89.6 million (USD 13.0 million) in 2022, a 53.2% decrease from 2021. Net profit attributable to equity shareholders of the company was RMB 44.4 million (USD 6.44 million) in 2022, a 67.0% decrease 2021, primarily due to the one-off massive marketing campaigns by collaborating with China Central Television during the Fédération Internationale de Football Association (FIFA) World Cup games in the fourth quarter of 2022.

The group noted that revenue generated from talent acquisition and other HR services to its business customers was RMB 2.34 billion (USD 339.7 million), a 1.6% increase from 2021. Although some of the recruitment demands were postponed due to the pandemic resurgence, the group said its high-quality customer base, its enriching product matrix (i.e. online recruitment, transaction-based talent acquisition services) and effective business development measures secured it from significant adverse impacts.

Meanwhile, revenue from talent development services to individual users was RMB 289.9 million (USD 42.1 million) in 2022, a 15.0% decrease from 2021, primarily due to the lower willingness to pay among mid-to high-end talents and the postponement of the examination dates of certain certifications, as a result of the resurgence of the pandemic in 2022.

Tongdao Liepin shares closed at HKD 10.30 (USD 1.31), up 4.46% on the day. The company has a market cap of HKD 5.52 billion (USD 703.2 million).