Career International 2022 Q3 Report: Leveraging the Strengths of Specialization, Digitization and Internationalization, Achieving Steady Business Growth despite Challenges
Career International (300662.SZ) published its 2022 Q3 report on October 27th. For the first three quarters of 2022, Career International reported 6.818 billion yuan (＄1,031 million) in operating income, a YOY increase of 31.63%. Net profit for owners of the parent company rose by 15.54% YoY to 217 million yuan(＄32 million).
As China’s first A-share listed HR service agency, Career International has adhered to the strategy of “one body with two wings”. According to the growth plan, it increased technological investment, and improved the business model of “HR tech + HR platform + HR service” for the whole industry chain. The Company has also accelerated its digital transformation for in-depth collaboration between online and offline operations, and enhanced cooperation between the front-end and back-end office. Besides, it has worked to create a closed loop of online and offline services, facilitate synergy between domestic and overseas customers, so as to promote a high-quality development in all operations.
Carried forward internal and external digitization, with productive online and offline cooperation
During the reporting period, in the face of the complex and volatile situation in domestic and overseas markets, Career International polished the “online + offline” collaborative service model, and enhanced offline service capabilities. Moreover, the Company has continued to strengthen its digitization capabilities, accelerated the internal digitization process, and empowered customers to speed up their digital transformation of human resources through new technology products. Thanks to the internal and external advancement, the Company’s business operations maintained steady growth, with more than 5,700 customers contributing revenue.
In the first three quarters, Career International invested more than 110 million yuan(＄16 million) on technology. Benefiting from internal and external development driven by digitization and continuous technological investment, operating income from the Company’s tech services increased by 73.44% year-on-year. Internally, Career International has created multi-cloud digital architecture and launched a comprehensive business operation online bulletin board for better standardized and intensive management in real time. In the first three quarters, more than 80,000 reports have been generated automatically, saving over 20,000 working hours. In addition, the operational effectiveness of technology products such as vertical recruitment platforms, integrated HR SaaS, and industrial interconnection platforms has increased. Links have also been created with long-tail customers, bringing new growth opportunities. By the end of the reporting period, the Company has connected with more than 22,000 customers, operated over 110,000 recruitment positions, linked up with more than 9,000 ecological partners, and attracted more than 85,000 recruitment consultants and labor brokers via various online technology platforms.
Owing to the complementary advantages of and improved synergy between online platforms and offline operations, Career International’s business increased by 31.51% year-on-year with a sustaining growth resilience. On the strength of technology, offline operations realized seamless connectivity, real-time information exchange, increased job delivery and conversion efficiency, and enhanced professional service capabilities. As the pandemic continues, flexible staffing is an essential part of enterprise employment and plays a significant role in job stability. During the reporting period, the Company’s flexible staffing service has achieved a rapid growth with revenue jumping by 45.75% year-on-year. The number of registered outsourcing employees reached more than 32,100, while key technical R&D positions accounted for more than half of the total. Personnel have been dispatched for outsourcing services to more than 270,400 jobs. As of the end of the reporting period, the Company recommended 15,588 mid-to-high-end management personnel and technical professionals to customers.
Enhanced competitive edges in global talent service, with great potential for further growth
The report of the 20th CPC National Congress emphasizes the importance of promoting high-quality development along the Belt and Road. With the economic recovery of the overseas markets, Chinese enterprises are accelerating business expansion according to Belt and Road Initiative under the new development framework of domestic and international dual circulation. As a pioneer in the global human resources service industry, Career International has focused on creating globalized service systems in line with its internationalization strategy. During the reporting period, the Company created more opportunities for the exchange between teams at home and abroad, strengthened cross-border and cross-team collaboration for international customers, and continued to promote coordinated development of domestic and overseas operations.
Currently, Career International has over 110 branches around the globe, mainly in mainland China and Hong Kong, but also in the United Kingdom, the United States, the Netherlands, Singapore and Malaysia. According to the Q3 report, Career International’s overseas business maintained strong momentum, with revenue from outside mainland China accounting for 25.70% of the Company’s total operating income, indicating increased international service capabilities. Investigo, a subsidiary of Career International, reported impressive business performance, demonstrating the continuation of its growth trend in the first half of the year. During the reporting period, Investigo's operating income exceeded 1.663 billion yuan(＄251 million), a YOY increase of 65.56%. Its executive search business rose by 40.85%, its flexible staffing business increased by 71.29%, and the strategy and digital consulting business grew by 62.49%. Additionally, the businesses of Career International’s Hong Kong and Southeast Asian subsidiaries all experienced strong growth.
The recovery of overseas markets has provided momentum for the Company's overall performance. In recent years, Career International has made continuous efforts to establish branches and acquire overseas assets in order to achieve vertical resource integration. The Company has strengthened cross-border and cross-team collaboration, and achieved global connectivity among business lines. The Company’s professional global service capability has been recognized by governments and customers at home and abroad.
In the report of the 20th CPC National Congress, “Talent” is the keyword mentioned repeatedly. It emphasizes that they play a fundamental and strategic role in national development. To further enhance the agglomeration efficiency for “top resources” talent in key regions and specialized industries, unleash human resources effectiveness, and achieve the goal of “attracting talent from all over the world”, the human resources industry must adopt new approaches. In the future, Career International will continue to improve service capabilities under its “HR tech + HR platform + HR service” business model for the whole industry chain. In this way, the Company will contribute to the building of important global talent center and innovation highland in China, and to the drawing up a blueprint for high-quality social and economic development through collaboration with all relevant parties.