Tongdao Liepin Group, previously known as Wise Talent Technology Services Co (6100:HKG), the operator of Chinese job board Liepin.com, reported revenue yesterday of RMB 589.8 million (USD 80.9 million) for the three months ended 30 June 2023, a decrease of 18.4% when compared to the previous year.

During the second quarter of 2023, the group observed a recovery of recruitment demand in certain industries such as chemicals and energy, trade and logistics, and consumer goods, however several key industries such as real estate and internet, have maintained a cautious stance towards scaling up their hiring efforts, which dragged on the overall employment landscape.

Tongdao also reported revenue of RMB 1.09 billion (USD 149.9 million) for the H1 period, down 20.3% over the previous year period.

The company stated, “During the first half of 2023, both the employment market and our business have shown signs of recovery to a certain degree. However, since our core talent acquisition business mainly comprises pre-paid subscription-based products, the cash billings in advance therefrom will be recognised as revenue based on customers’ actual consumption during the contract period. Therefore, due to the drag from decreasing cash billings during the previous year and enterprises’ hesitation in reopening job positions in the first half of this year, we incurred declining reported financial performance.”

Looking ahead, the company stated, “In the second half of this year, we will continue to focus on attracting business users by adapting to the recruitment needs of more enterprises through a flexible product mix and an agile sales personnel arrangement.”

Tongdao shares closed yesterday at HKD 7.97 (USD 1.02), up 2.17% on the day. The company has a market cap of HKD 4.00 billion (USD 509.9 million).