Career International Released 2020 Annual Report: Net Profit Attributable to Shareholders Increased by 22.38% YoY
Career International (300662.SZ), the A-shares listed talent sourcing agency, published its 2020 Annual Report on April 22nd. According to the report, the company generated revenues of RMB 3.932 billion ($570 million) for the year ending December 31st, 2020, with net profit attributable to shareholders increasing by 22.38% Year-over-Year (YoY) to RMB 186 million ($27 million), and net profit after deducting employee shareholding costs and non-recurring gains and losses attributable to shareholders growing to RMB 168 million ($24 million), a YoY increase of 26.11%. The company’s business performance reflects a steady growth with increased profitability despite the adverse economic environment.
During the reporting period, as a technology-driven total talent solutions provider, Career International persistently pursued quality and efficiency through refined services and consolidated its core business advantages. The company adhered to technology-driven innovation and empowered the digital and intelligent transformation of the government and enterprises. Career International also facilitated the coordinated development of domestic and foreign markets to further enhance its talent acquisition capacity on a global scale. Furthermore, it connected businesses (Terminal B), government (Terminal G), candidates (Terminal C), and HR service providers (Terminal S) effectively, thus continuing to lead industry transformation and upgrade.
Refined talent services builds advantages and takes flexible staffing revenues to new heights
In 2020, Career International continued its “synergy between front-end and back-end office” and “one recruitment specialist for one job position” business model. As a result, the company saw an increase in operational management, talent-job matching, and service delivery efficiency. As of the end of the reporting period, Career International had more than 2,600 professional consultants and technical personnel, working across 20 industries and niche fields. It had 300+ profit centers and had recommended 25,000+ mid-to-senior managerial and technical candidates to clients. Currently, the company’s efforts in maintaining key account clients have paid off, as the latter have become the major driving force for its business growth. According to the report, Career International had 5,300+ charged clients in 2020, and the top 50 large corporate clients contributed to more than half of the group’s total revenues. Apart from in-depth cooperation with key accounts, Career International achieved a significant increase in market share in lower-tier cities in China. In Mainland China, the Guangdong-Hong Kong-Macao Greater Bay Area accounted for 24% of the company’s operating revenues.
As a result of the sudden outbreak of COVID19 in 2020, there was a surging demand for temporary staffing and job outsourcing, which stimulated the rapid growth of the flexible staffing business. Career International seized this opportunity to scale up their business strategy. During the reporting period, its flexible staffing business reached a new high, generating revenues of RMB 3.112 billion ($451 million), accounting for nearly 80% of the company's overall revenues. The business also registered a 40% YoY growth in Mainland China compared to the same statistical standards. The number of temporary workers managed by Career International exceeded 20,000, and these workers were dispatched to more than 190,000 jobs. Specifically, the company has consistently reinforced its leading status in closing specialized R&D positions across sectors like IT, pharmaceuticals, industry, and so on.
Despite the impact of COVID19 on the global market, Career International expanded its global footprint steadily and achieved a commendable performance. As of the end of the reporting period, Career International had set up more than 110 branches worldwide, and revenues from markets outside Mainland China equaled nearly 30% of the group’s total. Apart from constant horizontal and vertical business expansion into the overseas market, the company aspired to strengthen its global talent acquisition capabilities. And Career International has successfully recommended 3,000+ international talents for Chinese firms and served 70+ Chinese clients overseas in around three years.
Technology-driven innovation leads and empowers the digital transformation of government and enterprises
In 2020, Career International continued to increase its investment in technology R&D and informationization, and invested nearly RMB 50 million to build BI technology, data analytics, and service platforms and to develop new functions in big data, AI, and other fields. The R&D investment continued to empower its internal business operations and external customers. Specifically speaking, the company upgraded its CTS (candidate tracking system) to support and enhance its three main businesses of executive search, flexible staffing, and recruitment process outsourcing. Externally, it optimized technical products like intelligent recruitment and examination, and online job supermarket, and increased their application scenarios, to empower the digital and intelligent transformation of governments and enterprises.
With respect to services for governments, Career International adopted new technologies in human resources service scenarios for the government and institutions. It launched the “Integrated Recruitment and Examination System” to meet institutional requirements for online talent recruitment and examinations. Following a successful trial in Xinjiang, the system was introduced in Beijing and Tianjin and was used to handle hiring tasks for nearly 200 clients. Additionally, Career International worked with Tianjin Jinnan District government and launched the “Online Job Supermarket”—a cloud system for talent recruitment and management in Jinnan District. With this, it assisted the regional government to grasp changes in talent demands and to build a talent database. Thus, it provided a data-oriented approach for relevant government departments to carry out regional talent introduction, industry decision-making, and development of local talent policies. The company acquired 514 enterprises as users. Moreover, Career International applied AI and big data to support government departments and organizations including human resources and social security bureaus (HRSSB) and human resource service industrial parks. It promoted programs like “Internet + HRSSB” and “City Talent Brain” and created a human resource shared service center for different industries.
As regards services for enterprises, Career International completed the upgrade of CAIDAO—a one-stop HRSaaS solution for talent recruitment, onboarding, attendance, and compensation and benefits (C&B) management for clients. The solution is targeted at customers in big health and new retail. With constant product innovation and upgrade, CAIDAO empowers long-tail SME clients with customized products and systems. So far, it has served over 159 enterprises and managed up to 200,000 employees for clients.
While regarding services for candidates, Career International created a talent pool of 1.8 million big health professionals and accessed 1,000+ high-quality candidate communities via its comprehensive vertical recruitment platform Yimaitongdao. The platform has strong channel alliance with “we media” including domain-specific influencers and KOLs, as well as in-depth cooperation with around 200 pharmaceutical colleges and universities in 26 provinces across China. The platform’s specialization ensures an efficient match between talents and positions in the medical industry.
Embrace industry interconnectivity and build partner platform and ecosystem for human resources industry
The human resources service industry is booming in China. However, players in the field are still plagued by weak competitiveness, fragmented market, and serious homogenization. Given the adverse situation, Career International is committed to linking concerned parties to facilitate multilateral cooperation and to give full play to their respective advantages. It has worked actively to build a platform and ecosystem for industry interconnectivity through business cooperation, joint ventures, industry funds, and platform building.
During the reporting period, Career International’s internet platform and ecosystem for the HR industry began to take shape. This includes the “City Talent Brain” launched by Career Digital Technology, as well as the heavily promoted partner platform and ecosystem “Hewa” and “Gee-Box”. Career International aims to bridge the gap between employment requirements of employers and talent service capacity of HR agencies. With data collected from the talent supply and service chain for talent distribution, demand, flow, and economy, it provides insights for local government to develop policies on talent education, introduction, and retention, to support urban governance. As of the end of the reporting period, Gee-Box attracted close to 3,500 partners, while Hewa got 194 human resources service agencies and 830+ recruiting consultants to join, who closed nearly 6,000 positions for 781 customers, thanks to their joint efforts.
As the first year of the “14th Five-Year Plan”, 2021 has ushered in a brand-new beginning to a brand new journey for Career International. The company is well positioned to seize opportunities and enhance its overall technical strength, to optimize its essential service offerings, application scenarios, and partner ecosystem platform. As a leading name in the industry, Career International is ambitious to provide more professional and efficient services to enterprises and candidates alike worldwide, as it joins hands with an increasing number of partners.