UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November 2018

 

Commission File Number: 000-50841

 

51job, Inc.

(Translation of registrant’s name into English)

 

Building 3

No. 1387 Zhang Dong Road

Shanghai 201203

People’s Republic of China

(Address of principal executive office)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

  

 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  51JOB, INC.  
     
     
  By:   /s/ Rick Yan  
    Name: Rick Yan  
    Title: President and Chief Executive Officer  
         
         
Date: November 9, 2018        

 

 

 

 

EXHIBIT INDEX

 

Exhibit Description
  
99.1Press release regarding third quarter 2018 unaudited financial results dated November 8, 2018

 

 

 

Exhibit 99.1

 

 

 

 

FOR IMMEDIATE RELEASE

 

Contact:

Linda Chien

Investor Relations

51job, Inc.

+86-21-6879-6250

ir@51job.com

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

 

 

SHANGHAI, November 8, 201851job, Inc. (Nasdaq: JOBS) (“51job” or the “Company”), a leading provider of integrated human resource services in China, announced today its unaudited financial results for the third quarter ended September 30, 2018.

 

Third Quarter 2018 Financial Highlights:

·Total revenues increased 31.1% over Q3 2017 to RMB954.6 million (US$139.0 million), exceeding the Company’s guidance range
·Online recruitment services revenues increased 33.0% over Q3 2017 to RMB649.3 million (US$94.5 million)
·Other human resource related revenues increased 27.2% over Q3 2017 to RMB305.4 million (US$44.5 million)
·Gross margin was 72.5% compared with 72.8% in Q3 2017
·Income from operations increased 34.6% over Q3 2017 to RMB270.5 million (US$39.4 million)
·Fully diluted earnings per share was RMB5.16 (US$0.75)
·Excluding share-based compensation expense, loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items, non-GAAP adjusted fully diluted earnings per share were RMB5.09 (US$0.74), exceeding the Company’s guidance range

 

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, said, “Deploying a high-quality growth strategy by delivering the best to employers and job seekers, we are pleased to report another quarter of solid financial results. In the third quarter, our online business again saw further improvement in average revenue per employer as we successfully drove greater spending by customers. In the other HR services area, demand and usage continued to see good growth as employers sought more assistance and solutions to address talent management challenges. With a broad portfolio of products and services, robust business fundamentals, and a long, proven track record of healthy, profitable operations, 51job remains confident and excited about the tremendous HR market opportunity in China.”

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 2 

 

 

Third Quarter 2018 Unaudited Financial Results

Total revenues for the third quarter ended September 30, 2018 were RMB954.6 million (US$139.0 million), an increase of 31.1% from RMB728.2 million for the same quarter in 2017.

 

Online recruitment services revenues for the third quarter of 2018 were RMB649.3 million (US$94.5 million), representing a 33.0% increase from RMB488.2 million for the same quarter of the prior year. This growth was driven by higher average revenue per unique employer, which was partially offset by a decrease in the number of unique employers. Average revenue per employer increased 38.6% in the third quarter of 2018 due to successful up-selling efforts that resulted in the purchase of multiple and/or higher value online products and services by customers, as well as price increases for select like-for-like products when compared with the same quarter in 2017. In line with the strategic priority to focus more attention on higher potential employers, the Company has chosen to moderate new user additions and to terminate coverage of certain customer accounts in 2018, and therefore, the estimated number of unique employers decreased 4.1% to 365,386 in the third quarter of 2018 compared with 380,866 in the same quarter of the prior year. The estimated number of unique employers in the third quarter of 2018 reflects those employers currently assigned a unique identification number in the Company’s management information systems and does not include employers utilizing Lagou.com.

 

Other human resource related revenues for the third quarter of 2018 increased 27.2% to RMB305.4 million (US$44.5 million) from RMB240.0 million for the same quarter in 2017. This increase was mainly due to greater usage and growth of business process outsourcing, training, assessment and placement services.

 

Gross profit for the third quarter of 2018 increased 30.6% to RMB684.7 million (US$99.7 million) from RMB524.2 million for the same quarter of the prior year. Gross margin, which is gross profit as a percentage of net revenues, was 72.5% in the third quarter of 2018 compared with 72.8% for the same quarter in 2017.

 

Operating expenses for the third quarter of 2018 increased 28.1% to RMB414.1 million (US$60.3 million) from RMB323.3 million for the same quarter in 2017. Sales and marketing expenses for the third quarter of 2018 increased 32.0% to RMB323.4 million (US$47.1 million) from RMB245.0 million for the same quarter of the prior year primarily due to higher employee compensation expenses, headcount additions, and greater advertising and promotion expenses. General and administrative expenses for the third quarter of 2018 increased 16.0% to RMB90.8 million (US$13.2 million) from RMB78.2 million for the same quarter of the prior year primarily due to higher employee compensation, rent and office expenses.

 

Income from operations for the third quarter of 2018 increased 34.6% to RMB270.5 million (US$39.4 million) from RMB200.9 million for the third quarter of 2017. Operating margin, which is income from operations as a percentage of net revenues, was 28.7% in the third quarter of 2018 compared with 27.9% for the same quarter in 2017. Excluding share-based compensation expense, operating margin would have been 31.7% in the third quarter of 2018 compared with 31.1% for the same quarter in 2017.

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 3 

 

 

The Company recognized a loss from foreign currency translation of RMB67.1 million (US$9.8 million) in the third quarter of 2018 compared with RMB2.2 million in the third quarter of 2017 primarily due to the impact of the change in exchange rate between the Renminbi and the U.S. dollar on the Company’s U.S. dollar cash deposits and U.S. dollar-denominated convertible senior notes issued in 2014.

 

In the third quarter of 2018, the Company recognized a mark-to-market, non-cash gain of RMB548.6 million (US$79.9 million) associated with a change in fair value of convertible senior notes compared with a loss of RMB351.5 million in the third quarter of 2017. The large non-cash gain was a result of the significant change in the price of the Company’s American Depositary Shares traded on the Nasdaq Global Select Market during the third quarter of 2018 and its corresponding effect on the fair value of the convertible senior notes.

 

During the third quarter of 2018, the Company recognized a gain of RMB61.1 million (US$8.9 million) from the sale of shares in Shanghai Gaodun Education & Training Co., Ltd. (“Golden Finance”). The Company reduced its stake in Golden Finance from 15.0% to 12.7% as of September 30, 2018.

 

Net income attributable to 51job for the third quarter of 2018 was RMB785.4 million (US$114.4 million) compared with net loss of RMB(167.0) million for the same quarter in 2017. Fully diluted earnings per share for the third quarter of 2018 was RMB5.16 (US$0.75) compared with loss per share of RMB(2.76) for the same quarter in 2017.

 

In the third quarter of 2018, total share-based compensation expense was RMB29.2 million (US$4.2 million) compared with RMB22.9 million in the third quarter of 2017.

 

Excluding share-based compensation expense, loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items, non-GAAP adjusted net income attributable to 51job for the third quarter of 2018 increased 58.8% to RMB333.1 million (US$48.5 million) compared with RMB209.8 million for the third quarter of 2017. Non-GAAP adjusted fully diluted earnings per share were RMB5.09 (US$0.74) in the third quarter of 2018 compared with RMB3.32 in the third quarter of 2017.

 

As of September 30, 2018, cash and short-term investments totaled RMB8,695.3 million (US$1,266.1 million) compared with RMB7,132.0 million as of December 31, 2017.

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 4 

 

 

Business Outlook

Based on current market and operating conditions, the Company’s total revenues target for the fourth quarter of 2018 is in the estimated range of RMB1,090 million to RMB1,120 million (US$158.7 million to US$163.1 million). Guidance for earnings per share is provided on a non-GAAP basis due to the inherent difficulty in forecasting the future impact of certain items, such as gain/loss from foreign currency translation and change in fair value of convertible senior notes. The Company is not able to provide a reconciliation of these non-GAAP items to expected reported GAAP earnings per share, without unreasonable efforts, due to the unknown effect and potential significance of such future impact and changes. Excluding share-based compensation expense, any gain or loss from foreign currency translation, and any mark-to-market gain or loss associated with a change in fair value of convertible senior notes, as well as the related tax effect of these items, the Company’s non-GAAP fully diluted earnings target for the fourth quarter of 2018 is in the estimated range of RMB4.45 to RMB4.75 (US$0.65 to US$0.69) per share. The Company expects total share-based compensation expense in the fourth quarter of 2018 to be in the estimated range of RMB30 million to RMB31 million (US$4.4 million to US$4.5 million).

 

Currency Convenience Translation

For the convenience of readers, certain Renminbi amounts have been translated into U.S. dollars at the rate of RMB6.8680 to US$1.00, the noon buying rate on September 28, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

 

Conference Call Information

The Company’s management will hold a conference call at 8:00 p.m. Eastern Time on November 8, 2018 (9:00 a.m. Beijing / Hong Kong time zone on November 9, 2018) to discuss its third quarter 2018 financial results, operating performance and business outlook. To dial in to the call, please use the following telephone numbers:

 

US: +1-888-346-8982

International: +1-412-902-4272

Hong Kong: +852-800-905-945

China: +86-400-120-1203

Conference ID: 51job

 

The call will also be available live and on replay through 51job’s investor relations website, http://ir.51job.com.

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 5 

 

 

Use of Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), 51job uses non-GAAP financial measures of income before income tax expense, income tax expense, adjusted net income, adjusted net income attributable to 51job and adjusted earnings per share, which are adjusted from results based on GAAP to exclude share-based compensation expense, loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items. The Company believes excluding share-based compensation expense and its related tax effect from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company’s core operating results as such expense is not directly attributable to the underlying performance of the Company’s business operations and do not impact its cash earnings. The Company believes excluding loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect, from its non-GAAP financial measures is useful for its management and investors as such translation or mark-to-market gain/loss is not indicative of the Company’s core business operations and will not result in cash settlement nor impact the Company’s cash earnings. 51job also believes these non-GAAP financial measures excluding share-based compensation expense, loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items, are important in helping investors to understand the Company’s current financial performance and future prospects and to compare business trends among different reporting periods on a consistent basis. The presentation of these additional measures should not be considered a substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial statements.

 

About 51job

Founded in 1998, 51job is a leading provider of integrated human resource services in China. With a comprehensive suite of HR solutions, 51job meets the needs of enterprises and job seekers through the entire talent management cycle, from initial recruitment to employee retention and career development. The Company’s main online recruitment platforms (http://www.51job.com, http://www.yingjiesheng.com, http://www.51jingying.com, and http://www.lagou.com), as well as mobile applications, connect millions of people with employment opportunities every day. 51job also provides a number of other value-added HR services, including business process outsourcing, training, professional assessment, placement, executive search and compensation analysis. 51job has a call center in Wuhan and a nationwide sales office network spanning 25 cities across China.

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 6 

 

 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," “targets, "confident" and similar statements. Among other things, statements that are not historical facts, including statements about 51job’s beliefs and expectations, the business outlook and quotations from management in this announcement, as well as 51job’s strategic and operational plans, are or contain forward-looking statements. 51job may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. All forward-looking statements are based upon management’s expectations at the time of the statements and involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: execution of 51job’s strategies and business plans; behavioral and operational changes of enterprises in meeting their human resource needs as they respond to evolving social, political, regulatory and financial conditions in China; introduction by competitors of new or enhanced products or services; price competition in the market for the various human resource services that 51job provides in China; acceptance of new products and services developed or introduced by 51job outside of the human resources industry; risks related to acquisitions or investments 51job has made or will make in the future; accounting adjustments that may occur during the quarterly or annual close or auditing process; fluctuations in the value of the Renminbi against the U.S. dollar and other currencies; and fluctuations in general economic and business conditions in China. Further information regarding these and other risks are included in 51job’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release and based on assumptions that 51job believes to be reasonable as of this date, and 51job undertakes no obligation to update any forward-looking statement, except as required under applicable law.

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 7 

 

 

51job, Inc.

Consolidated Statements of Operations and Comprehensive Income

 

   For the Three Months Ended 
   September 30, 2017   September 30, 2018   September 30, 2018 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
             
Revenues:            
   Online recruitment services   488,224    649,275    94,536 
   Other human resource related revenues   240,005    305,370    44,463 
Total revenues   728,229    954,645    138,999 
Less: Government surcharges   (7,891)   (10,642)   (1,550)
Net revenues   720,338    944,003    137,449 
Cost of services (Note 2)   (196,155)   (259,327)   (37,759)
Gross profit   524,183    684,676    99,690 
                
Operating expenses:               
   Sales and marketing (Note 3)   (245,033)   (323,373)   (47,084)
   General and administrative (Note 4)   (78,218)   (90,758)   (13,215)
Total operating expenses   (323,251)   (414,131)   (60,299)
Income from operations   200,932    270,545    39,391 
Loss from foreign currency translation   (2,183)   (67,089)   (9,768)
Interest and investment income, net   21,230    29,654    4,318 
Change in fair value of convertible senior notes   (351,500)   548,626    79,881 
Gain from sale of long-term investments       61,070    8,892 
Other income, net   6,043    3,330    485 
Income (Loss) before income tax expense   (125,478)   846,136    123,199 
Income tax expense   (41,010)   (61,228)   (8,915)
Net income (loss)   (166,488)   784,908    114,284 
Net (income) loss attributable to non-controlling interests   (494)   515    75 
Net income (loss) attributable to 51job, Inc.   (166,982)   785,423    114,359 
                
Net income (loss)   (166,488)   784,908    114,284 
Other comprehensive loss   (316)   (20,795)   (3,028)
Total comprehensive income (loss)   (166,804)   764,113    111,256 
                
Earnings (Loss) per share:               
   Basic   (2.76)   12.78    1.86 
   Diluted (Note 5)   (2.76)   5.16    0.75 
Weighted average number of common shares outstanding:               
   Basic   60,566,713    61,465,682    61,465,682 
   Diluted   60,566,713    67,304,326    67,304,326 

  

 

Notes:

(1)The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.8680 to US$1.00 on September 28, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.
(2)Includes share-based compensation expense of RMB3,674 and RMB4,654 (US$678) for the three months ended September 30, 2017 and 2018, respectively.
(3)Includes share-based compensation expense of RMB3,159 and RMB4,001 (US$583) for the three months ended September 30, 2017 and 2018, respectively.
(4)Includes share-based compensation expense of RMB16,103 and RMB20,518 (US$2,987) for the three months ended September 30, 2017 and 2018, respectively.
(5)Diluted earnings (loss) per share is calculated in accordance with the "if converted" method. This includes the add-back of interest expense of RMB9,587 (US$1,396), subtraction of change in fair value of convertible senior notes of RMB548,626 (US$79,881), and add-back of foreign currency translation loss of RMB100,966 (US$14,701) related to the convertible senior notes to the numerator of net income attributable to 51job, and the addition of the maximum number of 4,035,672 potentially converted shares related to the convertible senior notes to the denominator of diluted common shares for the three months ended September 30, 2018.  The potential conversion of the convertible senior notes and the impact of shares options was excluded in the computation of diluted loss per share for the three months ended September 30, 2017 because the effect would be anti-dilutive.

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 8 

 

 

51job, Inc.

Consolidated Statements of Operations and Comprehensive Income

           

   For the Nine Months Ended 
   September 30, 2017   September 30, 2018   September 30, 2018 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
Revenues:            
   Online recruitment services   1,352,257    1,785,946    260,039 
   Other human resource related revenues   656,852    875,498    127,475 
Total revenues   2,009,109    2,661,444    387,514 
Less: Government surcharges   (23,569)   (30,293)   (4,411)
Net revenues   1,985,540    2,631,151    383,103 
Cost of services (Note 2)   (533,364)   (709,083)   (103,244)
Gross profit   1,452,176    1,922,068    279,859 
                
Operating expenses:               
   Sales and marketing (Note 3)   (678,163)   (932,403)   (135,760)
   General and administrative (Note 4)   (220,515)   (264,943)   (38,576)
Total operating expenses   (898,678)   (1,197,346)   (174,336)
Income from operations   553,498    724,722    105,523 
Loss from foreign currency translation   (4,045)   (111,577)   (16,246)
Interest and investment income, net   56,104    79,088    11,515 
Change in fair value of convertible senior notes   (491,410)   (349,789)   (50,930)
Gain from sale of long-term investments       61,070    8,892 
Other income, net   75,767    157,514    22,934 
Income before income tax expense   189,914    561,028    81,688 
Income tax expense   (122,616)   (171,065)   (24,908)
Net income   67,298    389,963    56,780 
Net (income) loss attributable to non-controlling interests   (766)   6,020    877 
Net income attributable to 51job, Inc.   66,532    395,983    57,657 
                
Net income   67,298    389,963    56,780 
Other comprehensive loss   (777)   (20,639)   (3,005)
Total comprehensive income   66,521    369,324    53,775 
                
Earnings per share:               
   Basic   1.11    6.46    0.94 
   Diluted (Note 5)   1.09    6.26    0.91 
                
Weighted average number of common shares outstanding:               
   Basic   59,855,656    61,251,995    61,251,995 
   Diluted   60,763,317    63,288,619    63,288,619 

 

 

Notes:

(1)The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.8680 to US$1.00 on September 28, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.
(2)Includes share-based compensation expense of RMB10,390 and RMB11,607 (US$1,690) for the nine months ended September 30, 2017 and 2018, respectively.
(3)Includes share-based compensation expense of RMB8,932 and RMB9,978 (US$1,453) for the nine months ended September 30, 2017 and 2018, respectively.
(4)Includes share-based compensation expense of RMB45,530 and RMB55,481 (US$8,078) for the nine months ended September 30, 2017 and 2018, respectively.
(5)Diluted earnings per share is calculated in accordance with the "if converted" method. The potential conversion of the convertible senior notes was excluded in the computation of diluted earnings per share for the nine months ended September 30, 2017 and 2018 because the effect would be anti-dilutive.

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 9 

 

 

51job, Inc.

Reconciliation of GAAP and Non-GAAP Results

 

   For the Three Months Ended 
   September 30, 2017   September 30, 2018   September 30, 2018 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
             
GAAP income (loss) before income tax expense   (125,478)   846,136    123,199 
Add back: Share-based compensation   22,936    29,173    4,248 
Add back: Loss from foreign currency translation   2,183    67,089    9,768 
Add back: Change in fair value of convertible senior notes   351,500    (548,626)   (79,881)
Non-GAAP income before income tax expense   251,141    393,772    57,334 
GAAP income tax expense   (41,010)   (61,228)   (8,915)
Tax effect of non-GAAP line items   124    (5)   (1)
Non-GAAP income tax expense   (40,886)   (61,233)   (8,916)
Non-GAAP adjusted net income   210,255    332,539    48,418 
Non-GAAP adjusted net income attributable to 51job, Inc.   209,761    333,054    48,493 
                
Non-GAAP adjusted earnings per share:               
   Basic   3.46    5.42    0.79 
   Diluted (Note 2)   3.32    5.09    0.74 
Weighted average number of common shares outstanding:               
   Basic   60,566,713    61,465,682    61,465,682 
   Diluted   65,962,406    67,304,326    67,304,326 
                

   For the Nine Months Ended 
   September 30, 2017   September 30, 2018   September 30, 2018 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
             
GAAP income before income tax expense   189,914    561,028    81,688 
Add back: Share-based compensation   64,852    77,066    11,221 
Add back: Loss from foreign currency translation   4,045    111,577    16,246 
Add back: Change in fair value of convertible senior notes   491,410    349,789    50,930 
Non-GAAP income before income tax expense   750,221    1,099,460    160,085 
GAAP income tax expense   (122,616)   (171,065)   (24,908)
Tax effect of non-GAAP line items   68    46    7 
Non-GAAP income tax expense   (122,548)   (171,019)   (24,901)
Non-GAAP adjusted net income   627,673    928,441    135,184 
Non-GAAP adjusted net income attributable to 51job, Inc.   626,907    934,461    136,061 
                
Non-GAAP adjusted earnings per share:               
   Basic   10.47    15.26    2.22 
   Diluted (Note 3)   10.12    14.29    2.08 
Weighted average number of common shares outstanding:               
   Basic   59,855,656    61,251,995    61,251,995 
   Diluted   64,799,349    67,324,291    67,324,291 

 

 

Notes:

(1)The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.8680 to US$1.00 on September 28, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.
(2)Diluted earnings per share is calculated in accordance with the "if converted" method. This includes the add-back of interest expense of RMB9,328 and RMB9,587 (US$1,396) related to the convertible senior notes to the numerator of non-GAAP adjusted net income attributable to 51job for the three months ended September 30, 2017 and 2018, respectively. The maximum number of 4,035,672 potentially converted shares related to the convertible senior notes was added to the denominator of diluted common shares for the three months ended September 30, 2017 and 2018.
(3)Diluted earnings per share is calculated in accordance with the "if converted" method. This includes the add-back of interest expense of RMB28,559 and RMB27,490 (US$4,003) related to the convertible senior notes to the numerator of non-GAAP adjusted net income attributable to 51job for the nine months ended September 30, 2017 and 2018, respectively. The maximum number of 4,035,672 potentially converted shares related to the convertible senior notes was added to the denominator of diluted common shares for the nine months ended September 30, 2017 and 2018.

 

 

51job, Inc. Reports Third Quarter 2018 Financial Results

November 8, 2018

Page 10 

 

 

51job, Inc.

Consolidated Balance Sheets

 

   As of 
   December 31, 2017   September 30,
2018
   September 30,
2018
 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
             
ASSETS            
Current assets:            
 Cash   2,292,476    1,943,100    282,921 
 Restricted cash   249         
 Short-term investments   4,839,550    6,752,240    983,145 

Accounts receivable (net of allowance of RMB5,384 and RMB9,447 as

of December 31, 2017 and September 30, 2018, respectively)

   186,861    207,546    30,219 
 Prepayments and other current assets   559,105    518,521    75,498 
Total current assets   7,878,241    9,421,407    1,371,783 
Non-current assets:               
 Long-term investments   433,886    517,656    75,372 
 Property and equipment, net   497,845    535,356    77,949 
 Goodwill   1,021,454    1,021,454    148,727 
 Intangible assets, net   162,024    227,832    33,173 
 Other long-term assets   17,370    11,020    1,605 
 Deferred tax assets   12,912    15,347    2,235 
Total non-current assets   2,145,491    2,328,665    339,061 
Total assets   10,023,732    11,750,072    1,710,844 
                
LIABILITIES, MEZZANINE EQUITY AND EQUITY               
Current liabilities:               
 Accounts payable   35,532    46,809    6,816 
 Salary and employee related accrual   134,966    192,446    28,021 
 Taxes payable   230,734    196,359    28,590 
 Advance from customers   937,981    1,219,264    177,529 
 Convertible senior notes, current       2,175,341    316,736 
 Other payables and accruals   703,441    1,023,780    149,065 
Total current liabilities   2,042,654    4,853,999    706,757 
Non-current liabilities:               
 Deferred tax liabilities   121,348    135,582    19,741 
 Convertible senior notes, non-current   1,667,967         
Total non-current liabilities   1,789,315    135,582    19,741 
Total liabilities   3,831,969    4,989,581    726,498 
Mezzanine equity:               
 Redeemable non-controlling interests   228,230    221,111    32,194 
                
Shareholders' equity:               

Common shares (US$0.0001 par value: 500,000,000  shares authorized, 61,853004 and

61,780,344 shares issued and outstanding as of December 31, 2017 and
September 30, 2018, respectively)

   50    50    7 
 Additional paid-in capital   1,809,732    2,004,515    291,863 
 Statutory reserves   13,874    13,874    2,020 
 Accumulated other comprehensive income   136,947    116,308    16,935 
 Retained earnings   3,993,777    4,389,760    639,161 
Total 51job, Inc. shareholders' equity   5,954,380    6,524,507    949,986 
Non-controlling interests   9,153    14,873    2,166 
Total equity   5,963,533    6,539,380    952,152 
Total liabilities, mezzanine equity and equity   10,023,732    11,750,072    1,710,844 

 

 

Note (1):  The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.8680 to US$1.00 on September 28, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.