Career International Released Half Year Report 2021: Net Profit Attributable to Shareholders Increased by 39.59% YoY

2021-08-27 13:50

Career International (300662.SZ) released Half Year Report 2021 on late August 26th. According to the report, the company generated revenues of RMB 3.157 billion ($488.7 million), up 79.19% Year-on-Year (YoY) in the first half of 2021 (“the reporting period”); net profit attributable to shareholders increased by 39.59% YoY to RMB 103 million ($15.9 million), and net profit after deducting restricted stock units (RSUs) for employees and non-recurring gains and losses attributable to shareholders grew to RMB 93 million ($ 14.4million), a YoY increase of 47.67%.

As the first A shares-listed talent sourcing agency, Career International kept increasing investment into technology research and development under the business model of “HR Technology + HR Service + Platform” during the reporting period. The first half of 2021 witnessed an upward trend across all business lines of the company. Also, they gathered peer companies and accelerated the building of ecosystem for HR industry to optimize talent placement for regions and achieve synergic development of industries. 

Core strengths drive overall business growth at domestic market with accelerated overseas business 

In the first half of 2021, since domestic pandemic was under effective control and recruitment demand of enterprise surged, the main offline businesses of Career International were fully developed together with the revival of the entire human resources market. The company strengthened its operation models of “synergy between front-end and back-end office” and “one recruitment specialist for one job position”, and continued to upgrade candidate tracking system (CTS). Thus, it has brought more efficient operational management and recruiting service delivery. Career International’s three principal businesses of executive search, recruitment process outsourcing and flexible staffing have registered a steady YoY growth of 33.61%, 28.90% and 80.58% respectively.

During the reporting period, the flexible staffing business reached a new high and led the market in filling specialized openings especially. As of June 30, the number of temporary workers managed by Career International exceeded 28,500, and these workers were dispatched to more than 149,500 jobs. Among them, talent placement in management positions as well as technical positions of research and development in IT/Pharma/Industry and production line has grown significantly. The business revenues excluding that of the UK market increased substantially by 117% compared with the same period of last year. In addition, executive search and recruitment process outsourcing grew significantly following a quick recovery, registering a YoY increase of 32% and 28% each after deducting that of the UK market. 

In the process of globalization, Career International actively expanded its overseas business layout with more branch offices, and sped up to build an international service system as inspired by the “Belt and Road” initiatives. With the ease of pandemic and market recovery abroad, Aurex Group, a Hong Kong subsidiary of Career International, opened its branch of AxG Contracting LLC in Wilmington, Delaware, USA. As of the end of the reporting period, Career International had 114 branches and over 300 profit centers worldwide. Also, the company was home to over 2,800 professional consultants and technical personnel, working across 20-plus niche fields and industries to provide clients with premium comprehensive human resources service. All in all, revenues from markets outside Mainland China equaled nearly 20.51% of the group’s total.

Innovation and tech enablement empower platforms to link long-tail customers

During the reporting period, Career International facilitated the building of its internal information system under the guidance of “One Body, Two Wings” strategy. Also, the company developed the second growth curve by optimizing the product structure and running mode of HR SaaS Cloud, vertical recruitment platforms, and HR partner platform and ecosystem, aided with data tracking and in-depth analysis. By the end of the reporting period, Career International invested nearly RMB 35 million yuan ($5.4 million) in technology and informatization, up 22% YoY. And they reached more than 50,000 clients through such channels, and sought for business opportunities with 20,000 of them, which finally brought 1,280 charged clients for the platforms.

Regarding vertical recruitment platforms, Career International created a talent pool of 1.8 million big health professionals and accessed more than 1,000 high-quality candidate communities, enabling an effective matching between jobs and talents in healthcare. By the end of the reporting period, the comprehensive vertical recruitment platforms of Yimaitongdao and Retail No. 1 had nearly 8,000 registered enterprise users.

As for human resources management SaaS platform, CAIDAO Cloud under Career International provided overall solutions of “vertical platform + HR SaaS” to satisfy enterprise needs in complex scenarios. Consisting of various product modules, it could be applied flexibly just like the toys of LEGO to meet client’s diverse demands in a cost-effective way. Also, to answer the requirements of government, institutions and SOEs for online talent recruitment and examinations, CAIDAO offered “Integrated Recruitment and Examination System” via HR SaaS solutions, which support application scenarios of digital human resources and further enhance digitalization of the industry. During the reporting period, it served more than 900 enterprises and institutions.

While talking about industrial interconnection platform of human resources, Career International continued to promote vigorously the connectivity and synergy of the human resources industry. It heavily advocated the HR partner platform and ecosystem of “Hewa” and “Gee-Box”, which gathered partners widespread in the domain. Through the sharing of technology, process and management experience, Hewa and Gee-Box sought to empower their platform partners, and to enhance the overall recruitment and service capacity of the human resources market. As of the end of the reporting period, the two platforms attracted 5,100 headhunters and talent service agencies, and 38,400 registered recruiting consultants, while offering services to more than 8,000 clients with coordinated efforts.

Based on the vertical recruitment platforms, HR SaaS Cloud and the partner platform and ecosystem for human resources industry as mentioned above, the company developed “city talent brain” and “online job supermarket” to meet the needs of local governments. In addition, the company owned a total of 61 software copyrights in the platforms of Career Digital Technology, Hewa, CAIDAO Cloud and Career Hanlin.

Uphold the philosophy of high-quality development to create a new pattern of human resources industry 

As a technology-driven total talent solutions provider, Career International aspires to empower high quality economic development with outstanding human resources services. With clients top on their priority, the company provides refined human resources products and services tailored to customer’s needs. As of the end of the reporting period, the clients of Career International at domestic market comprise 36% of multinational corporations/joint ventures, 50% fast-growing Chinese private firms, and 14% government agencies/institutions/central State-owned enterprises and SOEs/NPOs, with a growing proportion of the latter two. 

At present, China’s national economy and social undertakings are ushered in a new stage of high-level development, the adjustment of industrial structure deepens, and the tertiary industry booms. Hence, there is an urgent need for human resources industry to yield superior talent services. In the face of opportunity and challenge, Career International will strive to promote the high-quality development of human resources industry with “specialization, digitalization and internationalization”. By adhering to the philosophy of “innovation, coordination, openness and sharing”, the company is aspired to introduce new development pattern into the industry, and contributes to the implementation of employment first, reinvigorating China through human resources, rural revitalization and other national strategies.