ZHAOPIN LTD (ADR) BEIJING, Aug. 15, 2017 /PRNewswire/ -- Zhaopin Limited (NYSE: ZPIN) ("Zhaopin" or the "Company"), a leading career platform([1]) in China focused on connecting users with relevant job opportunities through their career lifecycle, today announced its unaudited financial results for the fourth quarter and the fiscal year ended June 30, 2017.
Throughout the release, one ADS represents two Class A ordinary shares. Fiscal year refers to the 12 months ended June 30.
Fourth Quarter of Fiscal Year 2017 Financial Highlights
Percentage growth metrics refer to the fourth quarter of fiscal year 2017 ("Q4 FY17") compared to the fourth quarter of fiscal year 2016 ("Q4 FY16")
-- Total revenue increased by 19.8% to RMB486.7 million (US$71.8 million).
-- Online recruitment services revenue increased by 23.4% to RMB433.1
million (US$63.9 million).
-- Gross margin was 93.4%, compared with 91.5% in Q4 FY16.
-- Net income decreased by 36.5% to RMB57.1 million (US$8.4 million).
-- Excluding share-based compensation expenses, non-GAAP([2]) net income
decreased by 36.5% to RMB58.1 million (US$8.6 million).
-- Basic and diluted net income per ADS was RMB1.04 (US$0.16) and RMB1.02
(US$0.16), respectively.
-- Non-GAAP basic and diluted net income per ADS was RMB1.06 (US$0.16) and
RMB1.02 (US$0.16), respectively.
Fiscal Year 2017 Financial Highlights
Percentage growth metrics refer to fiscal year 2017 ("FY17") compared to fiscal year 2016 ("FY16")
-- Total revenue increased by 24.1% to RMB1,914.7 million (US$282.4
million).
-- Online recruitment services revenue increased by 23.0% to RMB1,608.8
million (US$237.3 million).
-- Gross margin was 89.1% compared with 91.0% in FY16.
-- Net income decreased by 36.6% to RMB180.0 million (US$26.5 million).
-- Excluding share-based compensation expenses, non-GAAP net income
decreased by 11.9% to RMB253.9 million (US$37.5 million).
-- Basic and diluted net income per ADS were RMB3.28 (US$0.48) and RMB3.18
(US$0.46), respectively.
-- Non-GAAP basic and diluted net income per ADS were RMB4.60 (US$0.68) and
RMB4.46 (US$0.66), respectively.
-- Net cash([3]) was RMB2.59 billion (US$382.0 million or equivalent to net
cash per ADS of US$6.82) as of June 30, 2017.
"We were pleased to finish fiscal year 2017 on a solid financial and operational footing. Fourth quarter revenue increased by 19.8% year over year ("yoy") as online recruitment services revenue increased by 23.4%. The number of unique customers([4]) grew by 18.4% yoy, to 454,100 unique customers. This solid growth was attributable to strong execution of our sales force and sustained benefits from re-investments in marketing and advertising." commented Mr. Evan Guo, Chief Executive Officer and Director of Zhaopin.
"As we look ahead, to support long-term growth in the highly competitive market alongside an evolving macro environment, our focus will remain on reinvestment and innovation to strengthen our core online platform, growing our R&D capabilities to further differentiate our products and services from our competitors. We believe this strategy is compelling and the right approach to support Zhaopin's market position as a leading career development platform in China," concluded Mr. Evan Guo.
[1] Zhaopin's website is the most
popular career platform in China as
measured by average daily unique
visitors in each of the 12 months
ended June 30, 2017, the number of
registered users as of June 30, 2017
and the number of unique customers
for the three months ended June 30,
2017.
[2] Non-GAAP results exclude share-
based compensation and withholding
income tax attributable to
undistributed earnings from Zhaopin's
PRC subsidiaries generated prior to
current period. Explanation of the
Company's non-GAAP financial
measures and related reconciliations
to GAAP financial measures are
included in the accompanying "Non-
GAAP Financial Measures" and
"Reconciliation of GAAP and Non-GAAP
Results".
[3] Net cash equals total cash less
total bank loans. Total cash includes
cash and cash equivalent of
RMB2,277.7 million, time deposits and
restricted time deposits of RMB487.0
million. Total bank loans include
long-term bank loans of RMB175.0
million.
[4] A "unique customer" refers to a
customer that purchases the Company's
online recruitment services during a
specified period. Zhaopin makes
adjustments for multiple purchases by
the same customer to avoid double
counting. Each customer is assigned a
unique identification number in the
Company's information management
system. Affiliates and branches of a
given customer may, under certain
circumstances, be counted as separate
unique customers.
Fourth Quarter of Fiscal Year 2017 Unaudited Financial Results
Revenue
Total revenue was RMB486.7 million (US$71.8 million) in Q4 FY17, representing an increase of 19.8% from RMB406.1 million in Q4 FY16.
Online recruitment services revenue for Q4 FY17 was RMB433.1 million (US$63.9million), representing a 23.4% increase from RMB350.9million for Q4 FY16. The increase was primarily driven by growth in the number of unique customers using the Company's online recruitment services. The Company served 454,100 unique customers during Q4 FY17, representing an 18.4% increase compared with 383,561 unique customers served during Q4 FY16. The Company believes its strategic focus on continued geographic expansion and improvement in customer service contributed to the growth in the number of unique customers. Average revenue per unique customer ("ARPU") increased by 4.3% during Q4 FY17 compared with Q4 FY16. The increase in ARPU was primarily due to the introduction of new products and cross-selling and up-selling of value-added services. This was partially offset by downward pressure on ARPU from the acquisition of new customers, who typically purchase lower-priced products at first. Zhaopin's ARPU may vary from quarter to quarter.
Other services revenue for Q4 FY17 was RMB53.7million (US$7.9 million), representing a decrease of 2.9% from RMB55.3 million during Q4 FY16. The decrease was primarily due to decline in campus recruitment services revenue, as a result of intense competition.
Other services revenue refers to revenue from campus recruitment services, assessment services, and other human resource related services. These services complement the Company's core online employment services by catering to the different needs in a job seeker's career life cycle, from college to graduation, first time job seeking through changing jobs. Strategically, these services play an important role in establishing and deepening Zhaopin's relationship with job seekers and employers.
Gross Profit and Gross Margin
Gross profit for Q4 FY17 was RMB451.4 million (US$66.6 million), representing an increase of 22.8% from RMB367.5 million for Q4 FY16.
Gross margin for Q4 FY17, as measured by gross profit as a percentage of net revenue, was 93.4%, compared to 91.5 % for Q4 FY16. The increase in gross margin was mainly due to the increased proportion of online recruitment services revenue over total revenue, as online recruitment services have a higher gross margin than other services.
Operating Expenses
Operating expenses for Q4 FY17 were RMB376.6 million (US$55.5 million), representing an increase of 38.8% from RMB271.4 million for Q4 FY16.
-- Sales and marketing expenses for Q4 FY17 were RMB262.5 million (US$38.7
million), representing an increase of 34.5% from RMB195.2 million for Q4
FY16. The increase was primarily due to increases in sales headcount and
compensation, and advertising expenses. As a percentage of net revenue,
sales and marketing expenses increased from 48.6% for Q4 FY16 to 54.3%
for Q4 FY17, primarily as a result of strengthened marketing activities
in Q4 FY17.
-- General and administrative expenses for Q4 FY17 were RMB114.0million
(US$16.8 million), representing a 49.8% increase from RMB76.1 million
for Q4 FY16. The increase was primarily driven by increases in employee
compensation expenses and professional services fees. Share-based
compensation expenses decreased from RMB1.7 million for Q4 FY16 to
RMB1.0 million (US$0.15 million) for Q4 FY17 as a result of the
Company's graded vesting schedule used to recognize its share-based
compensation expenses. As a percentage of net revenue, general and
administrative expenses increased from 19.0% for Q4 FY16 to 23.6% for Q4
FY17.
Income from Operations
Income from operations for Q4 FY17 was RMB74.8 million (US$11.0 million), representing a 22.2% decrease from RMB96.2 million for Q4 FY16. Operating margin, as measured by income from operations as a percentage of net revenue, was 15.5% in Q4 FY17, compared with 23.9% in Q4 FY16. In Q4 FY17, the Company recognized total share-based compensation expenses of RMB1.0 million (US$0.15 million) as compared with RMB1.7 million in Q4 FY16. Excluding share-based compensation expenses, non-GAAP income from operations for Q4 FY17 was RMB75.8 million (US$11.2 million), as compared with RMB97.8 million during Q4 FY16. Excluding share-based compensation expenses, operating margin would be 15.7% in Q4 FY17, as compared with 24.4% in Q4 FY16.
Investment and Interest Income, net
Net investment and interest income for Q4 FY17 was RMB11.4 million (US$1.7 million), representing a 34.2% increase from RMB8.5 million for Q4 FY16. The growth in net investment and interest income resulted from increased interest and investment income from larger bank deposits generated from business operations and investments in principal-protected wealth management products.
Other Income, net
Other income for Q4 FY17 was RMB1.0 million (US$0.15 million), compared with RMB0.67 million for Q4 FY16.
Income tax expenses
Income tax expenses in Q4 FY17 was RMB27.5 million (US$4.1 million), representing a 77.7% increase compared with RMB15.5 million in Q4 FY16. The effective tax rate in Q4 FY17 was 32.5%, compared to 14.7% in Q4 FY16. The change in the effective tax rate was mainly due to the accrual of RMB8.8 million withholding income tax in relation to undistributed earnings from Zhaopin's PRC subsidiaries in China, because Zhaopin's intention to reinvest all of its profits indefinitely is no longer certain.
Net income
Net income for Q4 FY17 was RMB57.1 million (US$8.4 million), representing a 36.5% decrease from RMB89.9 million for Q4 FY16. The decrease was primarily due to lower income from operations and the accrual of RMB8.8 million withholding income tax in relation to undistributed earnings from Zhaopin's PRC subsidiaries.
Non-GAAP net income for Q4 FY17 was RMB58.1 million (US$8.6 million), representing a 36.5% decrease from RMB91.6 million for Q4 FY16.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS for Q4 FY17 were RMB1.04 (US$0.16) and RMB1.02 (US$0.16), respectively, compared with basic and diluted net income per ADS of RMB1.62 and RMB1.56, respectively, for Q4 FY16.
Non-GAAP basic and diluted net income per ADS for Q4 FY17 were RMB1.06 (US$0.16) and RMB1.02 (US$0.16), respectively, compared with non-GAAP basic and diluted net income per ADS of RMB1.66 and RMB1.60, respectively, for Q4 FY16.
Fiscal Year 2017 Unaudited Financial Results
Revenue
Total revenue were RMB1,914.7 million (US$282.4 million) in FY17, representing an increase of 24.1% from RMB1,542.9 million in FY16.
Online recruitment services revenue for FY17 was RMB1,608.8 million (US$237.3 million), representing a 23.0% increase from RMB1,307.6 million for FY16. The Company served 613,083([5]) unique customers during FY17, representing a 20.3% increase compared with 509,813 unique customers served during FY16. The increase was primarily driven by increased efforts to acquire and retain customers as a result of the Company's strategic focus on continued geographic expansion, particularly amongst SMEs, and improvement of customer services.
Other services revenue for FY17 was RMB305.9 million (US$45.1 million), representing an increase of 30.0% from RMB235.3 million during FY16. The increase was mainly driven by continued growth in the Company's assessment services and campus recruitment services.
[5] The number of unique
customers in the fiscal year
ended June 30, 2017 has
reflected the elimination of
multiple purchases made by the
same customer during the fiscal
year ended June 30, 2017, while
the number of unique customers
in the quarter ended June 30,
2017 has reflected the
elimination of multiple
purchases made by the same
customer during that quarter.
The difference between the
number of unique customers in
the fiscal year ended June 30,
2017 and the number of unique
customers in the quarter ended
June 30, 2017 was relatively
small, due to the fact that a
small portion of unique
customers terminated their
agreements with us prior to the
quarter ended June 30, 2017 and
did not renew their agreements
with us in the quarter ended
June 30, 2017.
Gross Profit and Gross Margin
Gross profit for FY17 was RMB1,691.9 million (US$249.6 million), representing an increase of 22.1% from RMB1,385.7 million for FY16.
Gross margin for FY17, as measured by gross profit as a percentage of net revenue, was 89.1%, compared with 91.0% for FY16.
Operating Expenses
Operating expenses for FY17 were RMB1,394.2 million (US$205.7 million), representing an increase of 29.3% from RMB1,078.3 million for FY16.
-- Sales and marketing expenses for FY17 were RMB983.7 million (US$145.1
million), representing an increase of 26.5% from RMB777.8 million for
FY16. The increase was primarily due to increases in sales compensation
expenses, expenditure on advertising activities and investment in new
business initiatives.
-- General and administrative expenses for FY17 were RMB410.5 million
(US$60.6 million), representing a 36.6% increase from RMB300.5 million
for FY16. The increase was primarily driven by increases in employee
compensation expenses and professional service fees due to the potential
going-private transaction.
Income from Operations
Income from operations for FY17 was RMB297.7 million (US$43.9 million), representing a 3.1% decrease from RMB307.3 million for FY16. Operating margin, as measured by income from operations as a percentage of net revenue, was 15.7% in FY17, compared with 20.2% in FY16. In FY17, the Company recognized total share-based compensation expenses of RMB4.3 million (US$0.63 million), compared with RMB4.2 million in FY16. Excluding share-based compensation expenses, non-GAAP income from operations for FY17 was RMB302.0 million (US$44.5 million), as compared to RMB311.5 million during FY16. Excluding share-based compensation expenses, operating margin would be 15.9% in FY17, compared with 20.5% in FY16.
Net Investment and Interest Income
Net investment and interest income for FY17 was RMB44.1 million (US$6.5 million), representing a 52.2% increase from RMB29.0 million for FY16. The significant growth in net investment and interest income was mainly due to increased interest income from bank deposits and investments in principal-protected wealth management products as well as reduced loan interest expenses and loan facility transaction costs.
Other Income, net
Other income for FY17 was RMB7.0 million (US$1.0 million), representing a 17.7% increase from other income of RMB5.9 million for FY16.
Income tax expenses
Income tax expenses for FY17 was RMB166.1 million (US$24.5 million), representing a 185.4% increase compared with RMB58.2 million for FY16. The effective tax rate for FY17 was 48.0%, compared to 17.0% for FY16. The change in the effective tax rate was mainly due to the accrual of RMB102.9 million withholding income tax in relation to undistributed earnings from Zhaopin's PRC subsidiaries in China, of which RMB69.7 million withholding income tax expense was attributable to undistributed profit prior to the start of FY17, because Zhaopin's intention to reinvest all of its profits indefinitely is no longer certain since Q2 FY17
Net Income
Net income for FY17 was RMB180.0 million (US$26.5 million), representing a 36.6% decrease from RMB284.1 million for FY16.
Non-GAAP net income for FY17 was RMB253.9 million (US$37.5 million), representing an 11.9% decrease from RMB288.3 million for FY16.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS for FY17 were RMB3.28 (US$0.48) and RMB3.18 (US$0.46) respectively, compared with basic and diluted net income per ADS of RMB5.18 and RMB4.96, respectively, for FY16.
Non-GAAP basic and diluted net income per ADS for FY17 were RMB4.60 (US$0.68) and RMB4.46 (US$0.66) respectively, compared with non-GAAP basic and diluted net income per ADS of RMB5.26 and RMB5.04, respectively, for FY16.
Cash and Cash Equivalents, Restricted Cash and Time Deposits
As of June 30, 2017, the Company had cash and cash equivalents, restricted cash and time deposits of RMB2,764.7 million (US$407.8 million), representing a 20.8% increase from RMB2,289.2 million as of June 30, 2016. The increase in the Company's cash and cash equivalents, restricted cash and time deposits was mainly attributable to strong net cash flows generated from operating activities, issuance of ordinary shares upon exercise of employees' stock options.
Net cash flow generated from operating activities in FY17 amounted to RMB567.0 million (US$83.6 million), representing an increase of 32.4% from RMB428.3 million in FY16.
Status of Going-private Transaction
On April 6, 2017, the Company announced that it has entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") with SEEK International Investments Pty Ltd. ("SEEK International"), and Zebra Mergerco, Ltd., a Cayman Islands exempted company incorporated by an affiliate of Hillhouse Capital Management, Ltd. ("Hillhouse Capital Management"), and FV Investment Holdings, an affiliate of FountainVest Partners ("FV Investment", together with SEEK International and Hillhouse Capital Management, the "Buyer Group"). Pursuant to the Merger Agreement, the Buyer Group will acquire all of the outstanding shares of the Company for cash consideration, that together with the amount of the Special Dividend (as discussed below) will equal US$9.10 per ordinary share of the Company (each, a "Share") and US$18.20 per ADS.
On June 19, 2017, the Company declared the final amount of the Special Dividend as US$0.94 per Share (corresponding with US$1.88 per ADS), which was determined in accordance with the Merger Agreement. Payment of the Special Dividend is conditioned upon the consummation of the Merger and is to be made by the Company as soon as practicable (and no later than three business days) following the Effective Time. Only holders of record of Shares and ADSs as of immediately prior to the Effective Time will be entitled to receive the Special Dividend in respect of their Shares and ADSs, as applicable.
The closing of the merger is currently expected to occur shortly after the consummation of an extraordinary general meeting of shareholders of the Company, and is subject to customary closing conditions, including the approval by majority of not less than two-thirds of the votes of holders of the Shares present and voting in person or by proxy as a single class at a meeting of the Company's shareholders, and the other closing conditions specified in the Merger Agreement.
The Company and certain other participants in the transactions have filed with the U.S. Securities and Exchange Commission (the "SEC") a Schedule 13E-3 transaction statement, which includes a proxy statement of the Company. The Company plans to mail the definitive proxy statement to its shareholders and ADS holders in due course prior to an extraordinary meeting of shareholders of the Company, which is currently expected to be held in the second half of September 2017. The Schedule 13E-3 includes a description of the Merger Agreement and contains other important information about the merger, the Company and the other participants in the merger. INVESTORS AND SHAREHOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE MATERIALS AND OTHER MATERIALS FILED WITH OR FURNISHED TO THE SEC WHEN THEY BECOME AVAILABLE, AS THEY CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, THE TRANSACTIONS CONTEMPLATED BY THE MERGER AGREEMENT AND RELATED MATTERS. In addition to receiving the definitive proxy statement and Schedule 13E-3 transaction statement by mail, shareholders are also able to obtain these documents, as well as other filings containing information about the Company, the Merger and related matters, without charge, from the SEC's website (http://www.sec.gov) or at the SEC's public reference room at 100 F Street, NE, Room 1580, Washington, D.C. 20549.
Due to the potential pending going-private transaction, Zhaopin will not be providing an outlook statement.
Exchange Rate
This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB6.7793 to US$1.00, as set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2017.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (GAAP), Zhaopin uses non-GAAP measures of adjusted income from operations, adjusted net income, adjusted net income per share and adjusted net income per ADS, which are adjusted from results based on GAAP to exclude share-based compensation expenses and the withholding income tax attributable to undistributed earnings of Zhaopin's PRC subsidiaries generated prior to current period. The Company believes that excluding share-based compensation expenses and the withholding income tax attributable to undistributed earnings of Zhaopin's PRC subsidiaries generated prior to current period 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 expenses are not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. Zhaopin also believes these non-GAAP measures excluding share-based compensation expenses and the withholding income tax attributable to undistributed earnings of Zhaopin's PRC subsidiaries generated prior to current period, 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.
Conference Call
Zhaopin's management will host an earnings conference call on Tuesday, August 15, 2017 at 10:30 p.m. U.S. Eastern Time (10:30 a.m. Beijing/ Hong Kong Time on August 16, 2017).
Dial-in details for the earnings conference call are as follows:
International: +1-412-902-4272
U.S. Toll Free: +1-888-346-8982
Hong Kong Toll Free: 800-905945
Mainland China Toll Free: 4001-201203
Passcode: ZPIN
Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.
A telephone replay of the call will be available after the conclusion of the conference call through 10:30 p.m. U.S. Eastern Standard Time, August 24, 2017. The dial-in details for the replay are as follows:
International: +1-412-317-0088
U.S. Toll Free: +1-877-344-7529
Passcode: 10111019
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Zhaopin's website at http://www.zhaopin.com.
About Zhaopin Limited
Zhaopin is a leading career platform in China, focusing on connecting users with relevant job opportunities throughout their career lifecycle. The Company's zhaopin.com website is the most popular career platform in China as measured by average daily unique visitors in each of the 12 months ended June 30, 2017, number of registered users as of June 30, 2017 and number of unique customers for the three months ended June 30, 2017. The Company's over 140.0 million registered users include diverse and educated job seekers who are at various stages of their careers and are in demand by employers as a result of the general shortage of skilled and educated workers in China. In the fiscal year ended June 30, 2017, approximately 49.3 million job postings([6]) were placed on Zhaopin's platform by 613,083 unique customers including multinational corporations, small and medium-sized enterprises and state-owned entities. The quality and quantity of Zhaopin's users and the resumes in the Company's database attract an increasing number of customers. This in turn leads to more users turning to Zhaopin as their primary recruitment and career- related services provider, creating strong network effects and significant entry barriers for potential competitors. For more information, please visit http://www.zhaopin.com.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and 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," "confident" and similar statements. Zhaopin may also make written or oral forward-looking statements in its reports filed with or furnished 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. Any statements that are not historical facts, including statements about Zhaopin's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Zhaopin's goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its user and customer base for its online career platform; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect its users' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Zhaopin does not undertake any obligation to update such information, except as required under applicable law.
[6] Zhaopin calculates the
number of job postings by
counting the number of newly
placed job postings during
each respective period. Job
postings that were placed
prior to a specified period -
even if available during such
period -are not counted as
job postings for such period.
Any particular job posting
placed on the Company's
website may include more than
one job opening or position.
ZHAOPIN LIMITED
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
(Amounts in thousands, except for number of shares For the Three Months Ended
and ADS and per share and per ADS data)
-------------------------------------- --------------------------------------
June 30, 2016 June 30, 2017 June 30, 2017
------------- ------------- -------------
RMB RMB US$
(Unaudited) (Unaudited) (Unaudited)
Revenue
Online recruitment services 350,856 433,068 63,881
Other services revenue 55,290 53,665 7,916
Total Revenue 406,146 486,733 71,797
Less: Business tax and surcharges (4,586) (3,457) (510)
Net Revenue 401,560 483,276 71,287
Cost of services (34,032) (31,926) (4,709)
------- ------- ------
Gross profit 367,528 451,350 66,578
------- ------- ------
Operating expenses:
Sales and marketing expenses (195,231) (262,522) (38,724)
General and administrative expenses (76,132) (114,045) (16,823)
Total operating expenses (271,363) (376,567) (55,547)
-------- -------- -------
Income from operations 96,165 74,783 11,031
Other income/(expenses):
Foreign currency exchange gain/(loss) 33 (2,633) (388)
Investment and interest income, net 8,492 11,397 1,681
Other income, net 667 1,012 149
--- ----- ---
Income before income tax expenses 105,357 84,559 12,473
Income tax expenses (15,457) (27,471) (4,052)
------- -------
Net income 89,900 57,088 8,421
Add: Net loss attributable to the non-controlling 138 1,186 175
interest shareholders
Net income attributable to Zhaopin Limited's 90,038 58,274 8,596
shareholders
Net income per share:
-Basic 0.81 0.52 0.08
-Diluted 0.78 0.51 0.08
Net income per ADS:
-Basic 1.62 1.04 0.16
-Diluted 1.56 1.02 0.16
Weighted average number of shares used in computing
net income per share:
-Basic 110,890,906 111,736,492 111,736,492
-Diluted 114,700,298 115,276,164 115,276,164
Comprehensive income:
Net income 89,900 57,088 8,421
Foreign currency translation adjustment, net of tax 6,787 (13,886) (2,048)
----- ------- ------
Total comprehensive income 96,687 43,202 6,373
====== ====== =====
ZHAOPIN LIMITED
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
(Amounts in thousands, except for number of For the Twelve Months Ended
shares and ADS and per share and per ADS data)
--------------------------------------------- ---------------------------------------------
June 30, 2016 June 30, 2017 June 30, 2017
------------- ------------- -------------
RMB RMB US$
(Unaudited) (Unaudited) (Unaudited)
Revenue
Online recruitment services 1,307,646 1,608,750 237,303
Other services revenue 235,250 305,905 45,123
Total Revenue 1,542,896 1,914,655 282,426
Less: Business tax and surcharges (20,207) (15,546) (2,293)
Net Revenue 1,522,689 1,899,109 280,133
Cost of services (137,023) (207,186) (30,561)
-------- -------- -------
Gross profit 1,385,666 1,691,923 249,572
--------- --------- -------
Operating expenses:
Sales and marketing expenses (777,783) (983,741) (145,110)
General and administrative expenses (300,546) (410,485) (60,550)
Total operating expenses (1,078,329) (1,394,226) (205,660)
---------- ---------- --------
Income from operations 307,337 297,697 43,912
Other income/(expenses):
Foreign currency exchange gain/(loss) 80 (2,638) (389)
Investment and interest income, net 28,959 44,064 6,500
Other income, net 5,908 6,954 1,026
----- ----- -----
Income before income tax expenses 342,284 346,077 51,049
Income tax expenses (58,196) (166,099) (24,501)
------- --------
Net income 284,088 179,978 26,548
Add: Net (income)/loss attributable to the non- (266) 2,612 385
controlling interest shareholders
Net income attributable to Zhaopin Limited's 283,822 182,590 26,933
shareholders
Net income per share:
-Basic 2.59 1.64 0.24
-Diluted 2.48 1.59 0.23
Net income per ADS:
-Basic 5.18 3.28 0.48
-Diluted 4.96 3.18 0.46
Weighted average number of shares used in
computing net income per share:
-Basic 109,481,823 111,354,480 111,354,480
-Diluted 114,266,812 115,030,843 115,030,843
Comprehensive income:
Net income 284,088 179,978 26,548
Foreign currency translation adjustment, net of 19,736 (3,321) (490)
tax
Total comprehensive income 303,824 176,657 26,058
======= ======= ======
ZHAOPIN LIMITED
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for number of shares) As of June 30, As of June 30
-------------------------------------------------- --------------- -------------
2016 2017 2017
---- ---- ----
RMB RMB US$
(Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents 1,725,464 2,277,681 335,976
Time deposits and restricted time deposits 563,741 350,000 51,628
Accounts receivable, net 21,949 30,648 4,521
Amounts due from a related party 437 - -
Prepayments and other current assets 117,369 141,526 20,875
Deferred tax assets 27,055 43,084 6,355
Total current assets 2,456,015 2,842,939 419,355
--------- --------- -------
Non-current assets:
Restricted time deposits - 137,011 20,210
Long-term investment - 60,000 8,850
Property and equipment, net 50,839 51,026 7,527
Intangible assets, net 19,865 24,493 3,613
Goodwill 64,827 85,011 12,540
Other non-current assets 4,127 91,017 13,426
Deferred tax assets 2,917 4,972 733
Total non-current assets 142,575 453,530 66,899
------- ------- ------
TOTAL ASSETS 2,598,590 3,296,469 486,254
========= ========= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term bank loans 172,411 - -
Amount due to related party - 251 37
Accounts payable 8,460 15,011 2,214
Deferred revenue 708,359 886,002 130,692
Salaries and welfare payable 124,031 174,405 25,726
Taxes payable 70,563 96,340 14,211
Accrued expense and other current liabilities 100,110 258,824 38,179
Total current liabilities 1,183,934 1,430,833 211,059
--------- --------- -------
Non-current liabilities?
Deferred revenue 4,293 4,070 600
Long-term bank loans - 175,042 25,820
Deferred tax liabilities 19,511 71,756 10,585
Total liabilities 1,207,738 1,681,701 248,064
--------- --------- -------
Shareholders' equity?
Ordinary shares 7,485 7,562 1,115
Additional paid-in capital 1,546,833 1,576,142 232,493
Statutory reserves 10,769 8,280 1,221
Accumulated other comprehensive income 16,565 13,244 1,954
Accumulated deficit (202,718) (17,639) (2,602)
Non-controlling interests 11,918 27,179 4,009
Total shareholders' equity 1,390,852 1,614,768 238,190
--------- --------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2,598,590 3,296,469 486,254
========= ========= =======
ZHAOPIN LIMITED
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except for number of For the Three Months Ended
shares and ADS and per share and per ADS data)
--------------------------------------------- ---------------------------------------------
June 30, 2016 June 30, 2017 June 30, 2017
------------- ------------- -------------
RMB RMB US$
(Unaudited) (Unaudited) (Unaudited)
GAAP income before income tax expenses 105,357 84,559 12,473
Add back: share-based compensation expenses 1,662 1,019 150
Non-GAAP income before income tax expenses 107,019 85,578 12,623
GAAP income tax expenses (15,457) (27,471) (4,052)
Add back: Tax impact of share-based compensation - - -
expenses
Non-GAAP income tax expenses (15,457) (27,471) (4,052)
------- ------- ------
Non-GAAP net income 91,562 58,107 8,571
Add: Net loss attributable to the non-controlling 138 1,186 175
interest
Non-GAAP net income attributable to Zhaopin 91,700 59,293 8,746
Limited's shareholders
Net income per share:
-Basic 0.81 0.52 0.08
-Diluted 0.78 0.51 0.08
Add: Non-GAAP adjustments to net income per
share
-Basic 0.02 0.01 -
-Diluted 0.02 - -
Non-GAAP net income per share
-Basic 0.83 0.53 0.08
-Diluted 0.80 0.51 0.08
Non-GAAP net income per ADS
-Basic 1.66 1.06 0.16
-Diluted 1.60 1.02 0.16
Weighted average number of shares used in
computing non-GAAP net income per share:
-Basic 110,890,906 111,736,492 111,736,492
-Diluted 114,700,298 115,276,164 115,276,164
=========== =========== ===========
ZHAOPIN LIMITED
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except for number of shares For the Twelve Months Ended
and ADS and per share and per ADS data)
-------------------------------------- --------------------------------------
June 30, 2016 June 30, 2017 June 30, 2017
------------- ------------- -------------
RMB RMB US$
(Unaudited) (Unaudited) (Unaudited)
GAAP income before income tax expenses 342,284 346,077 51,049
Add back: share-based compensation expenses 4,165 4,292 633
Non-GAAP income before income tax expenses 346,449 350,369 51,682
GAAP income tax expenses (58,196) (166,099) (24,501)
Add back: Tax impact of share-based compensation - - -
expenses
Add back: withholding income tax expense - 69,678 10,278
attributable to undistributed profit prior to the start of
FY17
---
Non-GAAP income tax expenses (58,196) (96,421) (14,223)
------- ------- -------
Non-GAAP net income 288,253 253,948 37,459
Less: Net (income)/loss attributable to the non- (266) 2,612 385
controlling interest
Non-GAAP net income attributable to Zhaopin 287,987 256,560 37,844
Limited's shareholders
Net income per share:
-Basic 2.59 1.64 0.24
-Diluted 2.48 1.59 0.23
Add: Non-GAAP adjustments to net income per share
-Basic 0.04 0.66 0.10
-Diluted 0.04 0.64 0.10
Non-GAAP net income per share
-Basic 2.63 2.30 0.34
-Diluted 2.52 2.23 0.33
Non-GAAP net income per ADS
-Basic 5.26 4.60 0.68
-Diluted 5.04 4.46 0.66
Weighted average number of shares used in
computing non-GAAP net income per share:
-Basic 109,481,823 111,354,480 111,354,480
-Diluted 114,266,812 115,030,843 115,030,843
For more information, please contact:
Zhaopin Limited
Ms. Daisy Wang
Investor Relations
ir@zhaopin.com.cn
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
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SOURCE Zhaopin Limited
