Career International's revenue reached RMB 9 billion in 2022, demonstrating growth resilience in the face of a declining market

2023-04-23 11:59

Career International released its 2022 Annual Report on April 21st, as China's first A-share listed HR service agency (300662.SZ). Despite the complex and changeable economic environment in China and abroad in 2022, Career International maintained a steady rate of business expansion. The company's operating income increased by 29.69% year-over-year (YoY) to RMB 9.092 billion(US$1.351 billion). The net profit attributable to the shareholders of the company increased by 15.11% YoY to RMB 291 million (US$43.26 million), while the net profit attributable to shareholders, after deducting non-recurring gains and losses, increased by 11.68% YoY to RMB 235 million (US$34.93 million). This marks the fifth consecutive year of positive revenue growth since the company went public in 2017.

Faced with a complex and volatile market environment in 2022, Career International maintained its strategic focus and enhanced the benefits of its "HR technology + HR platform + HR service" business model. The company's efforts to realize the "five goals" of human resource services, which include specialization, internationalization, and digitalization, have contributed to the resilient growth in its performance. Due to the company's standardized and streamlined management, it has been able to continually reduce costs and increase efficiency. For the reporting period, operating cash inflows totaled RMB 9.563 billion (US$1.421 billion) with a net increase of RMB 380 million (US$56.49 million) in operating cash flow, indicating a healthy capital turnover.

Built recruiting service advantages and enhanced the quality and quantity of primary business revenue

Career International continues to strengthen its recruitment advantages by benefiting from the company's operation strategies of "one recruitment specialist for one job position," "a focus on major economic circles," and "technological empowerment." A growing number of clients have adopted its total talent solution to meet their diverse talent requirements, and its high added-value services for key accounts have been fully acknowledged, resulting in increased customer loyalty. In 2022, Career International's operating income from offline services increased by 29.54% YoY.

Career International has built a multidimensional talent supply matrix by encouraging cross-selling of business lines and products and amassing comprehensive service management capabilities. Despite the sluggish market environment in 2022, its executive search business received strong recruitment demand in a variety of fields, including semiconductors, big data, new energy, intelligent manufacturing, and digital transformation, with YoY revenues remaining essentially unchanged. At the same time, the overseas executive search business increased by 20.27% YoY. In addition to acquiring elite talents and tech R&D personnel for clients, Career International met a growing demand for job outsourcing in the HR service market, thereby enabling the company to maintain organizational agility against the backdrop of a complex and changing external environment. During the reporting period, the company's registered outsourcing employees reached more than 32,700, an increase of 3.28% YoY, and personnel were dispatched to nearly 369,000 jobs for outsourcing services, an increase of 18.28% YoY.

Upgraded global service system and achieved rapid quality growth in overseas business

Career International upgraded its global talent service system and expanded its international business guided by the basic strategy of globalization. It is committed to providing global talent attraction and placement services to companies operating in "the Belt and Road" markets. During the reporting period, Career International's overseas business maintained strong momentum, with revenue from outside mainland China accounting for nearly one-third of the company's total operating income of RMB 2.338 billion (US$347.6 million). Specifically, the company completed a new round of investment in Investigo, a subsidiary of Career International and a key growth area for international business, and further optimized the deployment of resources.

Career International has built a strong cross-regional service network, with over 100 global branches in Mainland China, Hong Kong, the United Kingdom, the United States, the Netherlands, Malaysia, and Singapore. We have achieved exceptional results in key globalization service areas, such as big health, technology, finance, energy, and automotive. In the last three years, the company's domestic recruiting team has acquired over 3,000 global talents to meet the globalization needs of Chinese companies. At the same time, the overseas team of Career International has expanded rapidly in order to better adapt to the cultural differences and specific needs of local markets to provide solutions for talent supply issues. Over the last year, the overseas team has delivered 2,500 mid- to high-level positions and managed over 17,000 outsourcing jobs.

Focused on building HR platforms and reached synergy between online product and offline service

During the reporting period, Career International continued to improve its business model of "HR tech + HR service + HR platform" and devoted more resources to developing its tech team, while increasing its investments in technology. Specifically, the Company invested RMB 176 million (US$26.16million) in digital transformation and technical products and built a tech team of nearly 400 individuals. Regarding internal informatization and digital transformation, the company has continued to invest in technology, data, artificial intelligence, and information security infrastructure, and has developed a big data system based on the essential tags of "client", "candidate", "position", and "consultant" to further improve the efficiency of multiple HR services and offline products. During the reporting period, three legal entities and branches of Career International were awarded a high-tech enterprise certificate, and the company owned a total of 96 software copyrights.

It is noteworthy that Career International's platform advantages have connected a wider variety of long-tail customers. It continued to enhance vertical recruitment platforms and bolstered the compatibility between online HR products and offline service delivery. In addition, the company actively released the potential of its HR technology platform to establish a closed-loop service and product ecosystem. According to the annual report, the vertical recruitment platforms of “tongdao” series under Career International registered a steady growth. Among them, Yimaitongdao, gathered more than 1.08 million active candidates together with other private domains of the company, up 80.00% YoY; enrolled 10,000 enterprises, up 100.16 YoY; provided services to more than 34,000 enterprise users, up 210.12% YoY; and the platform’s MAU reached 500,000, up 66.67% YoY. Lingshoutongdao saw a continuous growth in the number of registered companies and candidates; Shuketongdao enabled precision recruitment and matching of R&D talents in the domains of intelligent manufacturing, industrial internet, smart driving and so on. In addition, the company's HEWA platform, the first industrial interconnection platform of its kind in the HR service domain, produced remarkable operational results. HEWA connected with over 9,600 ecological partners, attracted over 88,600 recruitment consultants and labor agents, and managed over 30,900 recruitment positions by the end of the reporting period.

Practiced public welfare actively and fulfilled social corporate responsibility 

Career International continued to use "business and beneficence" as a guiding principle for its development in 2022 and built a long-term mechanism for corporate social responsibility. It contributed to employment promotion, poverty reduction, emergency relief, charitable aid, and rural revitalization. Career International employed nearly 300 college graduates over the past year and established school-enterprise cooperation with 88 colleges and universities across the country, creating a closed-loop service from internship, employment, and job security while enhancing the long-term value of the workplace. At the same time, the Party Committee of the company responded to the initiative "Donate as a CPC Member" and provided assistance to the needy groups. It also practiced "one-to-one pairing to lend help" and donated money to Shuixiang Village of Erhaobo Township, Kangbao County, Zhangjiakou City, Hebei Province to build a beautiful countryside and city. It also donated to Shanghai Fosun Charity Foundation and Shanghai Donghai Cihui Charitable Foundation to purchase daily supplies for elderly care institutions.

Career International will continue to lead the human resources service industry in terms of specialization, standardization, normalization, digitalization, and internationalization as it enters the opening year of the 20th National Congress, adhering to its development strategy from a new starting point. It will expedite the development of a new pattern of cooperation and win-win situation in the industry and actively contribute to the implementation of employment-priority strategies, thereby strengthening the nation through integrated human resource development, rural revitalization, and innovation-driven development.