Career International's revenue increased by 7.88% YoY in H1 2023, revealing a resilient business model

2023-08-25 15:15

The China's first A-shares listed HR service agency Career International (300662.SZ) released its 2023 Half Year Report on August 24th. During the reporting period, Career International firmly adhered to its corporate strategies, and fostered advantages of its business model of "HR tech + HR platform+ HR service" with joint efforts of all business teams, and pursued to achieve lean operations, despite all the challenges brought by complicated and changeable market, enterprise’s higher demand for cost reduction and efficiency enhancement, and declining recruitment needs. In the first half of 2023, the operating income of Career International increased by 7.88% year-over-year (YoY) to RMB 4.754 billion (US$ 686.49 million), and the net profit attributable to the owners of the parent company reached RMB 98 million (US$ 14.15 million), with the operating cash flow remaining stable.

Corporate strategies laid a solid foundation for progress with the resilience of business model revealed

Against the backdrop of a shift from incremental market to stock market, enterprises have put forward higher expectations for the essential value and specialism of human resource services. During the reporting period, the overall operating income of Career International’s offline business maintained an upward trend to increase by 7.73% YoY, which further showed the company's strategic advantages in creating value for different groups of clients and deploying in the entire industry ecological chain.

Specifically, the company’s executive search business kept leaping forward in a variety of fields, including big health, intelligent manufacturing, new energy, soft and hard science and technology and other national strategic industrial fields. It supported local governments, state-owned enterprises and central SOEs, scientific research institutes, universities, hospitals and other employers to introduce elite talents via market-oriented means. During the first half of 2023, the company recommended 5,900 mid-to-senior managerial and technical candidates to clients; Thanks to a growing customer awareness of risk resistance amid uncertainties to maintain organizational agility, as well as the company’s improved process management and system upgrading, the revenue of flexible staffing business was up 12.95% YoY. The company's registered outsourcing employees exceeded 32,700, and were dispatched to nearly 204,400 jobs for outsourcing services. As one of the strategic directions of the flexible staffing business, the number of on-the-job flex workers in tech R&D at that point in time accounted for 57.73%, highlighting a resilient growth.

The company continued to consolidate the operation strategy of key accounts, and promoted a package of solutions of “consulting and diagnosis + HR system and platform + professional recruiting services” tailored to key accounts in the industry. With recruitment process outsourcing (RPO) service as the contact window, the company was able to coordinate multiple HR services and products including executive search, flexible staffing, campus recruitment, think tank, research and consulting, and technical systems to meet the diverse talent needs of key accounts in various scenarios, so as to empower them in talent mapping, talent activation, talent placement, and talent management.

With the new development pattern of urban agglomeration, major city clusters have become not only economic and industrial hubs, but also hubs for talent gathering and mobility. On the basis of comprehensive services for key accounts, Career International constantly furthered its operation strategies of “one recruitment specialist for one job position” and “a focus on major economic circles” surrounding five major city clusters. The company pursued to reach “specialized and sophisticated” and fast-growing enterprises widely in the city clusters, via cooperation with HR tech platforms and eco partners. Based on key positions in the industry, Career International aimed to build specialist service capability of “an inch wide and a mile deep” to help accelerate the integration of industry and talent in the regional market.

Online and offline synergies built a closed-loop ecological service, with further investment in technology

During the reporting period, Career International continued to promote digital transformation and invested RMB 104 million (US$ 15.02 million) in technology, a year-on-year increase of 30.80%. On the one hand, the company further advanced internal informatization and digital transformation, and enhanced the efficiency of HR services and products offline via the digital management of the front, middle and back offices; On the other hand, it kept optimizing technical services and products, and involving more collaboration with service delivery teams and eco partners. During the reporting period, the operating income of the company's technical service jumped by 49.88% YoY.

Meanwhile, the platforms have seen increasing user activity. By the end of the reporting period, the company had reached more than 30,700 clients of various types through vertical recruitment platforms, HR industry networking platform and HR SaaS platform, a year-on-year increase of 47.25%. The platforms operated more than 175,800 positions, rising by 131.36% YoY, and linked more than 11,600 ecological partners, up 42.32% YoY.

Among them, Yimaitongdao, the recruiting platform specialized in big health, gathered more than 1.65 million active candidates together with other private domains of the company, up 94.12% YoY; enrolled 12,000 enterprises, up 74.42% YoY; provided services to more than 56,000 enterprise users, up 169.40% YoY; and the platform’s MAU reached 750,000, up 78.57% YoY. Lingshoutongdao and Shuketongdao had a more diverse client base; In addition, the HR industry networking platform HEWA continuously strengthened collaboration with more than 11,600 ecological partners. Also, it attracted over 104,900 recruitment consultants, managed over 40,700 recruitment positions, and assisted in successfully delivering 4,100 positions. All data have seen a significant year-on-year increase, and ecological advantages continue to appear.

Perfect international talent solutions with enhanced global service competitiveness

Guided by the basic operation strategy of globalization, Career International continued to upgrade its global talent service system and promoted business expansion overseas. The company spared no efforts to meet the human resource needs rising in the globalization process of its key accounts that it accompanied all the way from domestic market, as well as clients in the local markets. By the end of the reporting period, Career International has opened 7 branches in regions and countries including Hong Kong (China), the United Kingdom, the United States, the Netherlands, Malaysia, and Singapore. Synergy with domestic business teams has been formed in key globalization areas, such as big health, energy and automobile, high tech, strategy and change, finance and accounting, etc. Major talent services like consulting, executive search, recruitment process outsourcing, and flexible staffing are introduced widely.

During the reporting period, Career International's overseas businesses registered a stable growth, which contributed greatly to the group’s overall revenue. The operating income from outside mainland China accounted for 26.00% of the company's total to reach RMB 1.236 billion (US$ 178.48 million), up 14.47% YoY. Specifically, as an important overseas subsidiary of Career International, Investigo will optimize overseas resource deployment and product layout through capital investment and other means to enhance its sustainable profitability, thereby further enhancing the company's global service competitiveness.

In 2023, in the face of the huge pressures in the job market, Career International effectively implemented the employment-priority policy, and actively fulfilled its corporate social responsibilities. The company gave full play to its role of a bridge between employers and talents as the demand and supply side respectively, and promoted a fuller and higher-quality employment for key talent groups such as college graduates. During the reporting period, the company was involved actively in the events of “Into the University” organized by the Human Resources Service Industry Committee of the All-China Federation of Industry and Commerce; Yimaitongdao, the recruiting platform specialized in big health under Career International, held campus activities such as “Job Search Garden Party” and resume competition jointly with medical universities; Also Career International’s subsidiary in Xinjiang, worked with the company’s tech platform and recruitment platform, to empower the "Three Supports and One Assistance” program in key areas of Xinjiang as well as introduction of college graduates.

Career International will continue to lead high quality development of human resources service industry in terms of specialization, standardization, normalization, digitalization, and internationalization as it adheres to its business model of "HR tech + HR platform + HR service". It will keep strengthening the company’s essential advantages and resilience, and work with ecological partners to create a better future together.