Chinese job board Zhaopin (ZPIN: NYSE) yesterday reported revenue of RMB 283.6 million (USD 46.1 million) for the fourth quarter ending 30 June 2014, an increase of +18.1% compared with RMB 240.2 million (USD 39 million) during the same period last year.

The company achieved gross profit growth of +19.8%, rising from RMB 215.5 million (USD 35 million) to RMB 258.3 million (USD 42 million), year-on-year. Operating income for the quarter was RMB 66.5 million (USD 10.8 million), up by +12% from RMB 59.4 million (USD 9.7 million) in Q4 2013.

The company listed on the New York Stock Exchange on 12 June 2014.

Zhaopin entered into a Share Purchase Agreement on 22 May 2014 with Chinese job board Jobs DB, an entity controlled by SEEK International Investments, the Zhaopin’s direct controlling shareholder. Zhaopin acquired 100% equity interest in Jobs DB China Investments Limited from Jobs DB 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.

Evan Guo, Chief Executive Officer and Director of Zhaopin, commented: "We are pleased to report record top and bottom line results in our first earnings results as a public company. During fiscal year 2014, our business grew at a much faster pace than in previous years as we continue to successfully execute our strategy.”

“These strong results were driven by three key factors. Firstly, the number of unique customers we served during the quarter increased +30.3% to 244,437, thanks in part to our focus on the expansion of small-and medium sized enterprise customers located in existing and new geographies. Secondly, as we continue to execute our city strategy, our market share in key markets continues to grow rapidly. The recent purchase of CJOL demonstrates the value that strategic investments such as this acquisition provide in helping us establish a leadership position in Shenzhen and southern China. Thirdly, our career services website remains the market leader in terms of jobseeker traffic according to the latest data from [Chinese market research firm] iResearch."

"While we have established a clear leadership position in terms of jobseeker traffic, we plan to continue to invest in order to achieve our vision of becoming a leading career platform in China that connects the largest number of users with career opportunities throughout their career lifecycle. To achieve our vision, our strategic and operational focus will be to continue to develop new services and product offerings, expand into new geographies and invest both organically and via the acquisition of complementary businesses to grow our market share of jobseekers and employers. I am confident in our ability to successfully execute this strategy as we work to increase shareholder value and build a long-term sustainable business," Mr Guo added.

Revenue derived from the company’s online recruitment services increased by +17.2% during Q4 2014 to RMB 241.4 million (USD 39.2 million) up from RMB 205.9 million (USD 33.5 million) last year. The increase was primarily driven by growth in the number of unique customers using the Company's online recruitment services. The average revenue per unique customer decreased by -10% during Q4 2014, compared to the same quarter last year, primarily as a result of the addition of new customers, who generally purchased introductory, lower-priced services.

On an annual basis, Zhaopin reported revenue of RMB 1.1 billion (USD 178.8 million), an increase of +% compared with RMB 908.9 million (USD 147.7 million) last year. Gross profit for the period increased by +20.5% to RMB 962.4 million (USD 156.4 million), up from RMB 798.4 million (USD 129.8 million) in 2013. Operating income for the year was RMB 226.9 million (USD 36.9 million), an increase of +8.9% from RMB 208.4 million (USD 33.9 million) a year ago. 

Looking forward, the company expects to achieve revenue during Q1 2015 of between RMB 270 million (USD 43.9 million) and RMB 280 million (USD 45.5 million).

In trading yesterday, the company’s share price closed down -2.1% at USD 14.06. Based on its current share price, the company has a market value of USD 714 million.