Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.87 [8][10]. Core Insights - The recruitment demand in the high-end sector is under pressure, but internal efficiency improvements have supported performance growth. The company's revenue for the first half of 2024 was HKD 1.015 billion, a year-on-year decline of 7.2%, while profit surged to HKD 94 million, reflecting a 100% increase year-on-year [2][10]. - The report forecasts adjusted net profits for 2024-2026 to be HKD 184 million, HKD 229 million, and HKD 276 million respectively, using a comparable company average PE of 15x for valuation, leading to a target market value of HKD 3.12 billion [2][10]. Revenue and Profitability - The second quarter saw a total revenue of HKD 544 million, down 7.8% year-on-year, with B-end revenue declining by 14.1% while C-end revenue grew by 44.5% due to the recovery in online vocational training [4]. - The gross margin reached 78.5%, an increase of 4 percentage points year-on-year, with adjusted operating profit at HKD 95.43 million, up 52% year-on-year, and net profit at HKD 79.23 million, up 30% year-on-year [4]. Market Dynamics - The recruitment demand is experiencing structural differentiation across industries. Sectors like electronics and automotive manufacturing are seeing growth in new job postings, while real estate and finance continue to face recruitment demand contraction [3]. - The company is focusing on enhancing its coverage of small and medium enterprises through tailored packages and leveraging AI to improve service efficiency for larger clients [5]. Client Base and Growth - The total number of paid enterprise clients reached 63,472 in the first half of 2024, marking a 5.1% year-on-year increase, with the RCN business maintaining high growth and covering over 2,100 headhunters [5].

Financial Performance - For the three months ended June 30, 2024, the revenue was RMB 543.8 million, a decrease of 7.8% compared to RMB 589.8 million for the same period in 2023[3]. - The gross profit for the three months ended June 30, 2024, was RMB 426.7 million, down 2.9% from RMB 439.3 million in the same period of 2023[3]. - The net profit for the three months ended June 30, 2024, increased by 29.6% to RMB 79.2 million, compared to RMB 61.1 million for the same period in 2023[3]. - For the six months ended June 30, 2024, the revenue was RMB 1,014.6 million, a decrease of 7.2% from RMB 1,093.0 million for the same period in 2023[4]. - The gross profit for the six months ended June 30, 2024, was RMB 791.9 million, down 3.7% from RMB 822.0 million in the same period of 2023[4]. - The net profit for the six months ended June 30, 2024, surged by 412.9% to RMB 66.0 million, compared to RMB 12.9 million for the same period in 2023[4]. - The group reported a revenue of RMB 1,014,571 thousand for the six months ended June 30, 2024, a decrease of 7.2% compared to RMB 1,092,965 thousand for the same period in 2023[15]. - Total revenue for the six months ended June 30, 2024, was RMB 1,014,571 thousand, a decrease of 7.1% compared to RMB 1,092,965 thousand for the same period in 2023[26]. - The company's net profit for the period was RMB 66,025 thousand, up from RMB 12,872 thousand, representing a year-on-year increase of 413.5%[16]. - Basic earnings per share rose to RMB 9.52, compared to RMB 1.71 for the same period last year, marking an increase of 457.3%[15]. User Growth - The total number of registered individual users reached 100.8 million, an increase of 10.9% from 90.9 million in the previous year[7]. - The number of paying individual users increased by 12.4% to 56,052 from 49,873 in the previous year[7]. - The number of verified corporate users rose by 12.4% to 1,367,938 from 1,217,417 in the previous year[7]. - As of June 30, 2024, the cumulative number of registered individual users surpassed 100.8 million, with a year-on-year increase of 10.9%[12]. Revenue Breakdown - Revenue from services provided to enterprise customers was RMB 853,218 thousand, while revenue from services provided to individual paying users was RMB 160,465 thousand for the six months ended June 30, 2024[26]. - Revenue from corporate clients for the three months ended June 30, 2024, was RMB 452.0 million, accounting for 83.1% of total revenue, down 14.1% from RMB 526.2 million in the prior year[58]. - Revenue from providing talent acquisition and other human resources services to corporate clients was RMB 853.2 million, accounting for 84.1% of total revenue, down 12.8% from RMB 978.0 million in the previous year[44]. - Revenue from providing talent development services to individual users increased by 40.6% to RMB 160.5 million, representing 15.8% of total revenue, compared to RMB 114.1 million in the same period last year[44]. - Revenue from talent development services for individual users in Q2 2024 was RMB 91.3 million, a year-on-year increase of 44.5%[12]. Cost Management - Selling and marketing expenses decreased by 13.4% to RMB 482.7 million, down from RMB 557.6 million, with the percentage of revenue decreasing from 51.0% to 47.6%[48]. - Selling and marketing expenses for the three months ended June 30, 2024, were RMB 230.4 million, a decrease of 17.6% from RMB 279.5 million in the prior year, with the percentage of revenue decreasing from 47.4% to 42.4%[61]. - General and administrative expenses for the six months ended June 30, 2024, were RMB 142.5 million, a decrease of 9.6% from RMB 157.7 million for the same period in 2023[49]. - General and administrative expenses for the three months ended June 30, 2024, were RMB 62.3 million, a decrease of 18.1% from RMB 76.0 million for the same period in 2023[62]. - Research and development expenses for the six months ended June 30, 2024, were RMB 160.5 million, down 5.3% from RMB 169.4 million in the prior year, with R&D expenses as a percentage of revenue increasing from 15.5% to 15.8%[50]. - Research and development expenses for the three months ended June 30, 2024, were RMB 79.2 million, a decrease of 2.1% from RMB 80.9 million for the same period in 2023, with R&D expenses as a percentage of revenue increasing from 13.7% to 14.6%[63]. Operational Efficiency - The operating profit increased significantly to RMB 72,673 thousand, compared to RMB 12,730 thousand in the previous year, reflecting a growth of 470.5%[15]. - Operating profit for the six months ended June 30, 2024, was RMB 72.7 million, significantly up from RMB 12.7 million in the same period last year[43]. - Operating profit for the three months ended June 30, 2024, was RMB 85.6 million, compared to RMB 49.4 million for the same period in 2023, attributed to improved management and sales team efficiency[65]. - Profit before tax for the six months ended June 30, 2024, was RMB 72.9 million, compared to RMB 19.3 million for the same period in 2023[54]. - Profit before tax for the three months ended June 30, 2024, was RMB 86.3 million, up from RMB 62.8 million for the same period in 2023[67]. - The company recognized a loss of RMB 9,966 thousand for expected credit losses on receivables for the six months ended June 30, 2024, compared to RMB 4,441 thousand in the previous year[31]. Cash Flow and Assets - Cash and cash equivalents decreased to RMB 514,789 thousand from RMB 666,734 thousand, indicating a reduction of 22.8%[18]. - Cash and cash equivalents as of June 30, 2024, were RMB 514.8 million, down from RMB 666.7 million as of December 31, 2023[41]. - The net cash used in financing activities was RMB 91,651 thousand, a decrease from RMB 212,639 thousand in the same period of 2023[23]. - The net cash used in operating activities for the six months ended June 30, 2024, was RMB 119.5 million, an improvement from RMB 198.0 million for the same period in 2023, due to cost-saving measures[72]. - The group’s total assets decreased to RMB 3,154,848 thousand as of June 30, 2024, down from RMB 3,169,521 thousand at the end of 2023[19]. - Accounts receivable increased to RMB 164.3 million as of June 30, 2024, from RMB 146.3 million as of December 31, 2023[37]. Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with its provisions, except for the deviation regarding the roles of the chairman and CEO being held by the same individual[84]. - The audit committee has reviewed the interim financial performance for the six months ended June 30, 2024, and found it compliant with relevant accounting standards[86]. - The company has no significant contingent liabilities as of June 30, 2024[77]. - The company has no significant credit risk concentration as of June 30, 2024, with no high concentration of debtors[79]. - The company has no liquidity risk issues, with policies in place to monitor cash reserves and ensure sufficient funding from major financial institutions[80]. Strategic Initiatives - The company is focusing on optimizing budget allocation based on channel conversion rates to improve user acquisition efficiency[12]. - The company plans to focus on enhancing operational efficiency and cost reduction strategies throughout the year[13]. - The company aims to expand its market share in the high-end online recruitment sector by improving service efficiency and product offerings[13]. - The company has launched new AI features, including report interpretation and document generation, to enhance its SaaS offerings[11]. - The "Super Chat" AI product saw a record number of client requests in Q2 2024, indicating a growing preference among corporate clients[9]. - The "Doris" AI interview product is set to expand its market presence, particularly in campus recruitment, with a focus on enhancing brand recognition[10]. - The "Multi-Hunt RCN" platform has signed contracts with 2,100 headhunters and 77 firms, with an 8 percentage point increase in participating firms to 85%[10]. - The flexible employment business continued to grow in Q2 2024, with plans to strengthen service capabilities in the restaurant, retail, and technology sectors[11]. Dividend Policy - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2024[4]. - The company does not recommend the distribution of an interim dividend for the six months ended June 30, 2024[88].

同道猎聘1Q24业绩后小组交流会20240527 全文概要 该会议讨论了公司2024年一季度的财务概况、业务表现及市场 策略，并对未来展望进行分析。总体而言，公司在面临币场挑 战和行业趋势变化的背景下，通过调整营销策略和优化费用结构， 买现了部分业务的增长和利润的减亏。具体来看，公司2024年 一李度总收入为4.71亿元，同比下降6.4%。B端收入同比下降 11.2%，而C端收入则同比上涨35.7%，达到约6900万元。 C端增长主要得益于在线职业资格培训业务的强劲表现，无其是 心理咨询师培训产品。此外，公司通过线上精准投放替代线下广 告，有效提升了营销效率并降低了销售费用。在费用控制方面 公司实施了降本增效措施，预计全年研发费用将与去年持平或微 降，管理费用有较大下降空间。尽管一季度利润受到压力，但相 较去年同期已减亏。用户增长方面，B端 和C 端用户累计注册数 达132.7万家和9700万人，其中C端付费用户明显提升。 A1 技术的应用也为公司带来了正面影响，推出的Al 电话系统、 数字助理功能以及Al 面试工具 Doris,提高了招聘效率并降低了 成本。面对中高端产品市场的挑战，公司依旧专注于中高端招聘 ...

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Financial Performance - For the first quarter of 2024, Tongdao Liepin Group reported revenue of RMB 470.8 million, a decrease of 6.4% compared to RMB 503.2 million in the first quarter of 2023[3] - The gross profit for the first quarter of 2024 was RMB 365.2 million, down 4.6% from RMB 382.7 million in the same period last year[3] - The net loss for the first quarter of 2024 was RMB 13.2 million, a significant reduction of 72.7% from a loss of RMB 48.3 million in the first quarter of 2023[3] - The loss attributable to equity shareholders for the first quarter of 2024 was RMB 10.1 million, down 76.2% from RMB 42.4 million in the first quarter of 2023[3] - The non-GAAP operating loss for the first quarter of 2024 was RMB 1.5 million, a decrease of 90.8% from a loss of RMB 16.0 million in the first quarter of 2023[3] Assets and Equity - As of March 31, 2024, total assets amounted to RMB 3,220.3 million, slightly down from RMB 3,234.7 million as of December 31, 2023[9] - The total equity attributable to equity shareholders was RMB 2,891.2 million as of March 31, 2024, compared to RMB 2,892.8 million at the end of 2023[9] - Cash and cash equivalents were reported at RMB 534.5 million as of March 31, 2024, down from RMB 666.7 million at the end of 2023[7] Operating Expenses - The company incurred operating expenses of RMB 35.8 million for sales and marketing, compared to RMB 28.9 million in the same period last year[4] - Research and development expenses for the first quarter of 2024 were RMB 80.2 million, slightly down from RMB 81.7 million in the first quarter of 2023[4] User Growth - As of March 31, 2024, the number of registered individual users reached 97.8 million, representing a year-on-year growth of 7.6%[13] - The number of verified enterprise users increased to 1,326,709, marking a 12.9% year-on-year growth[13] Revenue Segments - Revenue from the enterprise segment decreased by 11.2% year-on-year to RMB 401 million due to declining recruitment demand and the promotion of lightweight packages[14] - The talent development services generated revenue of RMB 69.2 million in Q1 2024, reflecting a year-on-year growth of 35.7%[17] - The online vocational qualification training business has expanded, driven by increased interest in mental health, contributing to overall revenue growth[17] Product Development and Innovation - The AI product "Super Chat" has facilitated over 160,000 orders, serving approximately 26% of enterprise clients, with a high delivery rate[15] - The "Multi-Recruit RCN" product has covered over 1,900 headhunters, with more than 77% participating in order delivery[15] - The company has upgraded its AI product "AI Interviewer Doris" to enhance interview efficiency for bulk recruitment, particularly in campus hiring scenarios[15] - The online survey business has issued 265 million questionnaires, with a total of 19.4 billion responses collected, despite a decline in related revenue due to weak advertising[16] Strategic Focus and Future Outlook - The company continues to optimize its product offerings and expand market opportunities in response to structural changes in the recruitment landscape[14] - The company aims for high-quality development and cost reduction efficiency as core objectives for 2024[18] - AI applications in recruitment are gaining attention, with the company focusing on enhancing recruitment efficiency through AI capabilities[18] - The company plans to optimize its platform ecosystem to drive stable business development and increase online recruitment product penetration[18] - New business incubation and growth will be a key direction, with the multi-recruitment RCN business expected to expand significantly in its first full fiscal year[18] - The company is confident in the new AI interview assistant product, which is anticipated to enhance customer attraction and conversion efficiency[18] - The company will continue to focus on improving service capabilities to solidify competitive advantages while ensuring stable operating profits and cash flow[18] - The company expects a new round of rapid growth in the mid-to-high-end recruitment market driven by supportive policies and accumulated entrepreneurial confidence[18]

User Growth and Engagement - The company's total registered individual users reached a significant milestone, with a growth rate of 15% year-over-year, reaching 50 million users by the end of 2023[4] - Cumulative registered individual users reached 95.0 million in 2023, a 12.6% YoY increase, while annual paying individual users grew by 8.5% to 102,673[16] - Registered individual users reached 95 million by December 31, 2023, a year-on-year growth of 12.6%, with improved resume quality and user activity[21] Enterprise Client Growth and Revenue - Revenue from enterprise clients increased by 20% compared to the previous year, contributing to 60% of the total revenue[4] - The company expanded its market presence in Southeast Asia, with a 40% increase in enterprise clients from the region[6] - Cumulative verified enterprise users increased by 14.5% YoY to 1,293,796, with annual new verified enterprise users surging 30.0% to 164,228[16] - Registered enterprise users increased to 1.29 million by the end of 2023, a year-on-year growth of 14.5%, with 164,000 new registered enterprise users added during the year, a 30.0% increase[18] - Paid enterprise customers reached 72,000 in 2023, a year-on-year growth of 1.9%, driven by the launch of a lightweight basic package in Q3 2023[18] SaaS Platform and Job Postings - The company's SaaS platform saw a 25% increase in active job postings, with over 1 million active job postings by the end of 2023[4] - New job postings in 2023 declined by 1.0% YoY to 3.81 million, while cumulative job postings dropped 6.7% to 8.3 million[16] - The top three industries with the highest growth in new job postings were energy & chemicals, transportation & logistics, and lifestyle services[14] R&D and AI Investments - The company's R&D investment grew by 30% year-over-year, reaching $50 million, focusing on AI and machine learning technologies[5] - The company launched an AI-powered interview product in Q1 2023, covering over 100 assessment dimensions and achieving results consistent with human HR interviews[12] - The company plans to further integrate AI technology in 2024 to enhance product intelligence and user experience[13] - The company's AI recruitment consultant product was developed, enabling batch processing of core recruitment processes and personalized job recommendations for users[19] Financial Performance - The company's net profit margin improved by 5 percentage points, reaching 18% in 2023[4] - The company's total assets increased by 10% year-over-year, reaching $1.5 billion by the end of 2023[4] - The company's cash flow from operations grew by 15%, reaching $300 million in 2023[4] - The company's market capitalization increased by 25% year-over-year, reaching $5 billion by the end of 2023[4] - The company's total debt decreased by 10%, reaching $200 million by the end of 2023[4] - Revenue for 2023 was RMB 2,282.2 million, a decrease of 13.5% compared to RMB 2,637.9 million in 2022[10] - Gross profit for 2023 was RMB 1,695.7 million, a decrease of 17.2% compared to RMB 2,047.1 million in 2022[10] - Net profit for 2023 was RMB 16.6 million, compared to RMB 89.6 million in 2022[10] - Non-GAAP operating profit for 2023 was RMB 138.8 million, compared to RMB 230.3 million in 2022[10] - The company's net profit attributable to equity shareholders for 2023 was RMB 0.8 million, compared to RMB 44.4 million in 2022[10] Cost Management and Efficiency - The company focused on cost reduction and efficiency improvement strategies, resulting in a net profit of RMB 16.63 million for 2023[11] - Sales and marketing expenses decreased by 17.2% to RMB 1,081.8 million in 2023, primarily due to reduced one-time advertising costs and improved sales efficiency, with expenses as a percentage of revenue falling from 49.5% to 47.4%[29] - General and administrative expenses increased by 10.2% to RMB 380.0 million in 2023, driven by higher one-time share-based compensation and goodwill impairment, with expenses as a percentage of revenue rising from 13.1% to 16.7%[30] - R&D expenses decreased by 10.0% to RMB 360.4 million in 2023, mainly due to cost savings in personnel, with R&D expenses as a percentage of revenue increasing slightly from 15.2% to 15.8%[31] Market Expansion and Strategic Initiatives - The company launched a lightweight basic package for SMEs in Q3 2023 to better serve their mid-to-high-end talent recruitment needs[11] - The company expanded its efforts to acquire state-owned enterprise clients and introduced the "Government Edition" of Liepin in early 2023[11] - The company plans to increase efforts to attract new customers and expand the scale of paying users in 2024[11] - The company will continue to support youth employment and assist the government in promoting the "stabilize employment, protect livelihoods" strategy[11] - The "Duolie RCN" platform, launched in September 2023, has partnered with over 50 headhunting firms and covered more than 1,500 headhunters by the end of 2023[13] - The company launched the Duolie RCN platform in Q3 2023, which has partnered with over 50 headhunting firms and covered more than 1,500 headhunters by the end of 2023[22] - 70% of the headhunting firms on the Duolie RCN platform have participated in order delivery[22] Talent Screening and AI Impact - The company observed a shift in talent screening criteria due to AI advancements, emphasizing creativity and tool proficiency[15] Financial Transactions and Investments - The company's cash and cash equivalents increased from RMB 476.5 million in 2022 to RMB 666.7 million in 2023[52] - Net cash generated from operating activities in 2023 was RMB 18.3 million, a significant decrease from RMB 143.1 million in 2022[54] - Net cash generated from investing activities in 2023 was RMB 514.9 million, primarily due to the maturity of bank time deposits[54] - Net cash used in financing activities in 2023 was RMB 343.3 million, mainly due to payments for restricted share units and share repurchases[55] - Capital expenditures and long-term investments decreased from RMB 88.9 million in 2022 to RMB 22.0 million in 2023, reflecting stricter external investment strategies[56] - The company's capital-to-debt ratio increased to 0.45% in 2023, up from 0.18% in 2022[57] - The company had four bank loans totaling RMB 20.2 million due within one year, with fixed annual interest rates ranging from 3.35% to 5.50%[58] - The company recorded foreign exchange gains of RMB 4.7 million in 2023, compared to RMB 31.9 million in 2022, primarily due to the appreciation of the USD against the RMB[61] - The company had no significant contingent liabilities as of December 31, 2023[61] - The company invested $50,000,000 in a fixed-rate note issued by Citigroup Global Markets Holdings Inc. with an annual interest rate of 5.80%, expected to be held until maturity[65] - The fair value of the note as of December 31, 2023, was $49,985,500, with unrealized gains of $548,219, representing 7.8% of the group's total assets[66] IPO Proceeds Allocation - The company's IPO proceeds amounted to approximately HK$2,804.6 million, with HK$2,552.5 million utilized as of December 31, 2023, and HK$252.1 million remaining unused[70] - 40% of the IPO proceeds (HK$1,121,840,000) were allocated to enhance R&D capabilities and product portfolio[71] - 25% of the IPO proceeds (HK$701,150,000) were allocated for acquisitions, investments, and growth strategies, with HK$438,527,000 already utilized and HK$252,065,000 planned for use in 2024 and 2025[71] - 25% of the IPO proceeds (HK$701,150,000) were allocated to improve sales and marketing plans, aiming to expand the user and customer base and optimize online advertising[71] - 10% of the IPO proceeds (HK$280,460,000) were allocated for working capital and general corporate purposes[71] - The company plans to utilize the remaining HK$252.1 million of IPO proceeds in accordance with the proportions and timelines outlined in the prospectus[71] Corporate Governance and Board Activities - The company's board of directors includes Fan Xinpeng, an independent non-executive director with extensive experience in global investment banking and financial management[75] - The company's senior management team includes Dai Kebin, the executive director, chairman, and CEO, responsible for overall strategic planning and corporate management[76] - The company's annual general meeting will be held on June 6, 2024, with share transfer registration suspended from June 3 to June 6, 2024[86] - The company's environmental policy emphasizes green operations, energy conservation, and reducing carbon footprint[87] - The company's financial summary for the past five fiscal years is detailed on page 172 of the annual report[83] - The company's property, plant, and equipment changes for the year are detailed in Note 12 of the consolidated financial statements[83] - The company's shareholding structure complies with the minimum public float requirement under the Hong Kong Stock Exchange's exemption[84] - The company is committed to maintaining a balanced approach to diversity in recruitment and selection processes at all levels, including the Board of Directors[197] - The Board will consider setting measurable objectives for diversity among executive directors and will review these objectives periodically to ensure they remain appropriate and achievable[197] - The Nomination Committee is responsible for selecting and appointing directors, ensuring a balanced distribution of skills and experience on the Board[198] - The Board reviewed corporate governance policies, training for directors and senior management, and compliance with legal and regulatory requirements during the year ending December 31, 2023[199] - The Board is required to meet at least four times a year, with a majority of directors attending in person or via electronic communication[200] - The Chairman is required to meet with independent non-executive directors at least once a year without the presence of other directors[200] Shareholder and Equity Information - Dai Kebin holds a 34.36% equity interest in the company through The Dai Family Trust, with May Flower Information Technology Co., Limited holding 117,033,166 shares (22.44%) and proxy voting rights for 62,164,060 shares (11.92%)[104] - Chen Xingmao holds a 2.46% equity interest in the company through The Xiaoying Trust, with Xiaoying Information Technology Co., Limited holding 12,805,426 shares[104] - Dai Kebin holds a 17.80% equity interest in Wanshidao (Beijing) Management Consulting Co., Ltd., with 7,073,760 shares, and an additional 9.82% through other entities[107] - Chen Xingmao holds a 2.38% equity interest in Wanshidao (Beijing) Management Consulting Co., Ltd., with 947,460 shares[107] - Tian Ge was appointed as an executive director on April 3, 2024, with a three-year service contract[100] - Fan Xinpeng was appointed as an independent non-executive director on September 12, 2023, with a three-year appointment letter[100] - Shao Yibo and Chen Xingmao resigned as non-executive director and executive director, respectively, on April 3, 2024[98] - The company confirmed the independence of independent non-executive directors Ye Yaming, Zhang Ximeng, and Fan Xinpeng[101] - Dai Kebin's spouse, Song Yueting, holds a 0.27% equity interest in the company through a discretionary trust[105] - Mr. Chen resigned as an executive director on April 3, 2024[108] - Ms. Song Yueting holds 1,390,145 shares (0.27%) through a discretionary trust and 179,197,226 shares (34.36%) through spousal interests[110] - May Flower Information Technology Co., Limited holds 179,197,226 shares (34.36%) as a beneficial owner[110] - Yiheng Capital, LLC holds 42,165,499 shares (8.08%) as a beneficial owner[110] - FIL Limited, Pandanus Associates Inc., and Pandanus Partners L.P. each hold 36,500,776 shares (7.00%) through controlled corporate interests[110] - Tricor Trust (Hong Kong) Limited and Futureshare Limited each hold 37,189,164 shares (7.13%) as trustee and beneficial owner, respectively[110] - May Flower beneficially holds 117,033,166 shares (22.44%) and has voting proxy rights over 62,164,060 shares (11.92%)[111] - No directors or senior executives held interests in competing businesses as of December 31, 2023[114] - The company has obtained exemptions from certain connected transaction requirements under the Hong Kong Stock Exchange Listing Rules[115] - Mr. Dai Kebin is an executive director, major shareholder, and controlling shareholder of the company[116] - The company controls 30% equity of Wanshidao and 100% equity of Tongdao Elite and Liedao through contractual arrangements[118] - Wanshidao, established in 2006, is owned by Tongdao Elite (Hong Kong) Information Technology Co., Ltd. (70%), Dai Kebin (27.62%), and Chen Xingmao (2.38%)[117] - Tongdao Elite, established in 2015, is owned by Liedao (50.1%), Matrix Partners China I Hong Kong Limited (21.88%), Giant Lilly Investment Ltd (21.345%), and Tenzing Holdings Hong Kong Limited (6.675%)[117] - Liedao, established in 2014, is owned by Dai Kebin (99%) and Chen Xingmao (1%)[118] - The contractual arrangements allow the company to effectively control Wanshidao, Tongdao Elite, and Liedao, and receive all economic benefits generated by these entities[118] - The company faces risks related to the contractual arrangements, including potential invalidation due to changes in Chinese laws and regulations[120] - The company has exclusive purchase rights to acquire 30% equity and/or assets of Wanshidao and 100% equity and/or assets of Tongdao Elite and Liedao[121] - The initial term of the exclusive purchase right agreements is 10 years, with automatic renewal unless otherwise specified in writing[121] - Wan Shidao's revenue for 2023 was RMB 45.5 million, accounting for 2.0% of the group's total revenue[127][128] - Tongdao Elite's revenue for 2023 was RMB 1,348.2 million, accounting for 59.1% of the group's total revenue[127][128] - Wan Shidao's profit for 2023 was RMB 9.4 million, compared to a loss of RMB 23.9 million in 2022[127] - Tongdao Elite's loss for 2023 was RMB 63.7 million, compared to a loss of RMB 38.2 million in 2022[127] - Lie Dao's loss for 2023 was RMB 1.9 million, compared to a profit of RMB 9.3 million in 2022[127] - Wan Shidao's total assets for 2023 were RMB 625.3 million, a decrease from RMB 664.6 million in 2022[128] - Tongdao Elite's total assets for 2023 were RMB 1,013.9 million, a decrease from RMB 1,146.4 million in 2022[128] - Lie Dao's total assets for 2023 were RMB 390.8 million, an increase from RMB 369.1 million in 2022[128] - Tongdao Liepin (Tianjin) did not receive any service fees in 2023 and will not retroactively collect any fees for 2023[122] - The company has implemented mitigation measures to monitor regulatory developments and reduce risks associated with contractual arrangements[129] - The Hong Kong Stock Exchange has granted the company exemptions from certain disclosure and approval requirements under Chapter 14A of the Listing Rules, including the need for independent shareholder approval and setting a maximum annual cap for fees payable under contractual arrangements[131] - The company has established a track record in overseas value-added telecommunications services to meet qualification requirements, including registering trademarks, acquiring domain names, and conducting feasibility studies for overseas market expansion[133] - The company has set up overseas subsidiaries, including in Hong Kong and the United States, to expand talent intermediary services and establish an overseas execution team[133] - Independent non-executive directors confirmed that the contractual arrangements allowed the company to retain the majority of earnings from consolidated affiliated entities during the fiscal year[134] - The company's auditors confirmed that the transactions under the contractual arrangements were conducted in accordance with the relevant agreements and no dividends were distributed to equity holders of the consolidated affiliated entities[136] - No significant contracts were entered into between the company or its subsidiaries and the controlling shareholder or its subsidiaries during the fiscal year[138] - The company has implemented indemnity provisions and arranged appropriate directors' liability insurance for its board members[140] Employee and Compensation Information - The company had 5,165 employees as of December 31, 2023, with a shift in sales team composition due to a decrease in talent recruitment and HR service sales personnel offset by an increase in certification training service sales personnel[141] - The company implemented a performance-based compensation system for the sales team, including salary and performance bonuses based on metrics such as total revenue generated and unique customer acquisition and retention[141] - The company's defined contribution retirement plan, organized by provincial and municipal governments, has no forfeitable contributions that

Investment Rating - The investment rating for the company is "Outperform the Market" [6][10]. Core Views - The company reported a revenue of 2.282 billion yuan in 2023, a decrease of 13.5% year-on-year, with an adjusted operating profit of 139 million yuan, down 39.7%, and an adjusted net profit attributable to shareholders of 106 million yuan, down 44.1% [6][9]. - In Q4 2023, the revenue was 630 million yuan, an increase of 0.9% quarter-on-quarter, with an adjusted operating profit of 26 million yuan and an adjusted net profit of 14 million yuan [8][10]. - The company launched a lightweight basic package in Q3 2023, stabilizing contract liabilities at 796 million yuan, which remained flat quarter-on-quarter [7][10]. - The company has established a headhunting cooperation network platform, covering over 1,500 headhunting firms, with 70% participating in order delivery, enhancing its market position [10]. Summary by Sections Financial Performance - 2023 revenue was 2.282 billion yuan, down 13.5% year-on-year, with a net profit of 106 million yuan, down 44.1% [6][9]. - Q4 2023 revenue was 630 million yuan, with enterprise and individual income contributing 548 million yuan and 82 million yuan respectively [8][10]. User Growth and Product Development - The company registered 1.294 million enterprise users in 2023, an increase of 14.5%, with 72,000 paying enterprises, up 1.9% [7][8]. - The introduction of lightweight products reversed the decline in paying enterprise users seen in the first half of 2023 [7]. Financial Projections - Revenue projections for 2024-2026 are 2.43 billion yuan, 2.644 billion yuan, and 2.898 billion yuan respectively, with expected growth rates of 6.5%, 8.8%, and 9.6% [10][12]. - Adjusted net profits for the same period are projected to be 175 million yuan, 245 million yuan, and 305 million yuan [10][12]. Valuation and Market Position - The company is expected to have a reasonable market value range of 2.1 to 2.6 billion yuan, with a target price of 4.0 to 5.0 yuan per share [10][12]. - The company maintains a strong market barrier through its focus on high-end recruitment, positioning itself as a "niche" player in the industry [7][10].

证券研究报告 | 2024年03月26日 同道猎聘（06100.HK）-2023 年业绩点评 增持 2023 年中高端招聘市场相对承压，第四季度经营环比改善 核心观点 公司研究·海外公司财报点评 中高端求职市场承压，2023年收入利润均承压下滑。2023年，公司实现收 社会服务·专业服务 入22.82亿元/-13.5%；实现经调经营溢利1.39亿元/-60.4%；实现经调归 证券分析师：曾光 证券分析师：钟潇 母净利润1.06亿元/-44.1%，收入利润均承压下滑系中高端招聘市场恢复相 0755-82150809 0755-82132098 zengguang@guosen.com.cn zhongxiao@guosen.com.cn 对缓慢所致。截至2023年底，公司合约负债为7.96亿元，同比-4.0%，环 S0980511040003 S0980513100003 比-0.3%。2023Q4经营环比改善，单季度实现收入6.30亿/+0.9%；经调归母 证券分析师：张鲁 净利润亏损1388万元，2022年同期亏损1.60亿元，亏损大幅缩窄。 010-88005377 zhanglu5@guosen.com ...

Financial Performance - For the year ended December 31, 2023, the revenue was RMB 2,282.2 million, a decrease of 13.5% compared to RMB 2,637.9 million in 2022[3] - The gross profit for 2023 was RMB 1,695.7 million, down 17.2% from RMB 2,047.1 million in 2022[3] - The net profit for 2023 was RMB 16.6 million, compared to RMB 89.6 million in 2022, with the attributable net profit to equity shareholders being RMB 0.8 million versus RMB 44.4 million in 2022[3] - The non-GAAP operating profit for 2023 was RMB 138.8 million, down from RMB 230.3 million in 2022, with the attributable non-GAAP profit to equity shareholders being RMB 105.8 million compared to RMB 189.4 million in 2022[3] - The company's revenue for the year ended December 31, 2023, was RMB 2,282,157 thousand, a decrease from RMB 2,637,921 thousand in 2022[18] - The gross profit for the year was RMB 1,695,726 thousand, down from RMB 2,047,093 thousand in the previous year[59] - The operating profit for the year was RMB 33,759 thousand, significantly lower than RMB 85,336 thousand in 2022[59] - The annual profit attributable to equity shareholders was RMB 16,630 thousand, compared to RMB 89,587 thousand in the prior year[59] - The basic earnings per share for the year was RMB 0.16, a decrease from RMB 8.84 in 2022[59] Quarterly Performance - For the three months ended December 31, 2023, the revenue was RMB 630.3 million, an increase of 0.9% from RMB 624.8 million in the same period of 2022[4] - The gross profit for the three months ended December 31, 2023, was RMB 449.2 million, a decrease of 2.9% from RMB 462.8 million in the same period of 2022[4] - The net loss for the three months ended December 31, 2023, was RMB 36.6 million, significantly improved from a loss of RMB 221.9 million in the same period of 2022[4] - Revenue for the three months ended December 31, 2023, was RMB 630.3 million, a 0.9% increase from RMB 624.8 million for the same period in 2022[31] - Revenue from corporate clients for talent acquisition and other HR services was RMB 547.9 million, accounting for 86.9% of total revenue, a decrease of 2.8% from RMB 563.7 million in the prior year[32] - Revenue from individual users for talent development services was RMB 81.9 million, representing 13.0% of total revenue, an increase of 34.9% from RMB 60.7 million in the same period last year[32] User Growth - Cumulative registered individual users reached 95.0 million, a 12.6% increase from 84.4 million in 2022[8] - Annual paid individual users increased to 102,673, up 8.5% from 94,593 in the previous year[8] - Cumulative verified enterprise users grew to 1,293,796, reflecting a 14.5% year-over-year increase[10] - New verified enterprise users added during the year totaled 164,228, marking a 30.0% increase compared to 126,372 in 2022[10] - The number of paid enterprise customers reached 72,037, a 1.9% increase from 70,678 in the previous year[10] Cost and Expenses - Selling and marketing expenses for 2023 were RMB 1,081.8 million, a decrease of 17.2% from RMB 1,306.1 million in 2022, with the percentage of revenue decreasing from 49.5% to 47.4%[23] - General and administrative expenses increased by 10.2% to RMB 380.0 million in 2023, up from RMB 344.9 million in 2022, with the percentage of revenue rising from 13.1% to 16.7%[24][25] - R&D expenses decreased by 10.0% to RMB 360.4 million in 2023, down from RMB 400.3 million in 2022, with the percentage of revenue increasing from 15.2% to 15.8%[26] Cash Flow and Investments - The net cash generated from operating activities for 2023 was RMB 18.3 million, a significant decrease from RMB 143.1 million in 2022, primarily due to reduced collections[45] - The net cash generated from investing activities in 2023 was RMB 514.9 million, up from RMB 60.7 million in 2022, mainly due to the maturity of bank time deposits[46] - The net cash used in financing activities for 2023 was RMB 343.3 million, compared to RMB 226.5 million in 2022, primarily due to payments related to restricted share units and share repurchases[47] - Total capital expenditures and long-term investments decreased from RMB 88.9 million in 2022 to RMB 22.0 million in 2023, reflecting a stricter external investment strategy[48] Strategic Initiatives - The company observed a recovery in the recruitment market, particularly in first-tier cities, driven by emerging industries and government stimulus policies[6] - The rapid development of AI technology is expected to transform talent selection criteria, creating new opportunities in the recruitment market[7] - The company is actively exploring the application of AI technology in recruitment to enhance user experience through precise market control and continuous product innovation[7] - The company launched a lightweight basic package in Q3 2023, significantly increasing enterprise customer numbers and reversing the decline in paid enterprise customers[10] - The company launched the AI smart interview product in Q1 2024, aimed at enhancing recruitment efficiency through advanced assessment models[17] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code throughout the fiscal year[81] - The independent non-executive director and chairman of the audit committee passed away on June 12, 2023, and a new independent non-executive director was appointed on September 12, 2023[87][88] - The board of directors does not recommend the payment of a dividend for the year ending December 31, 2023[91] Social Responsibility - The company actively participated in social responsibility initiatives, including recruitment events for marginalized groups and public employment activities throughout 2023[17]

Financial Performance - For the three months ended September 30, 2023, revenue was RMB 558.9 million, a decrease of 12.9% compared to RMB 641.5 million for the same period in 2022[3] - Gross profit for the three months ended September 30, 2023, was RMB 424.5 million, down 15.0% from RMB 499.7 million in the same period of 2022[3] - Net profit for the three months ended September 30, 2023, was RMB 40.4 million, compared to RMB 127.1 million for the same period in 2022[3] - For the nine months ended September 30, 2023, revenue was RMB 1,651.9 million, a decrease of 17.9% from RMB 2,013.1 million for the same period in 2022[4] - Gross profit for the nine months ended September 30, 2023, was RMB 1,246.6 million, down 21.3% from RMB 1,584.3 million in the same period of 2022[4] - Net profit for the nine months ended September 30, 2023, was RMB 53.3 million, compared to RMB 311.5 million for the same period in 2022[4] - Non-GAAP operating profit for the three months ended September 30, 2023, was RMB 66.2 million, down from RMB 153.1 million in the same period of 2022[3] - Non-GAAP operating profit for the nine months ended September 30, 2023, was RMB 113.2 million, compared to RMB 395.9 million for the same period in 2022[4] - The company reported a total comprehensive income of RMB 90.3 million for the nine months ended September 30, 2023, down from RMB 475.99 million in the same period of 2022[8] - The company experienced a foreign exchange loss of RMB 9.83 million for the three months ended September 30, 2023, compared to a gain of RMB 86.1 million in the same period of 2022[11] - The company's operating profit for the three months ended September 30, 2023, was RMB 48,820 thousand, down 60.3% from RMB 123,035 thousand in the same period of 2022[15] Assets and Liabilities - As of September 30, 2023, the company's total assets decreased to RMB 4,518,942 thousand from RMB 4,924,210 thousand as of December 31, 2022, reflecting a decline of approximately 8.2%[12][13] - The company's net asset value as of September 30, 2023, was RMB 3,198,264 thousand, down from RMB 3,346,162 thousand as of December 31, 2022, representing a decline of approximately 4.4%[13] - The total liabilities decreased to RMB 1,238,327 thousand as of September 30, 2023, from RMB 1,454,427 thousand as of December 31, 2022, indicating a reduction of approximately 15.0%[12] User Growth and Services - The number of registered individual users increased by 13.0% year-over-year to 92.2 million as of September 30, 2023, compared to 81.6 million in 2022[16] - The verified enterprise user count rose by 14.2% year-over-year to 1,262,329 as of September 30, 2023, up from 1,105,094 in 2022[16][20] - Revenue from talent acquisition services for the three months ended September 30, 2023, was RMB 496.4 million, a decrease of 14.4% compared to the same period in 2022[19][20] - Revenue from talent development services was RMB 176.2 million, a year-on-year decrease of 23.1%[21] - The number of verified headhunters on the platform was 210,433 as of September 30, 2023, a slight decrease of 0.4% compared to the same period last year[21] Strategic Initiatives - The company launched a lightweight basic package targeting small and medium enterprises in Q3 2023, aimed at providing standardized online recruitment products at lower costs[22] - The company initiated the "Global Management Trainee Talent Pool (GMTTP)" and "Technical New Generation" campus recruitment live-streaming events in Q3 2023, connecting quality students with enterprise hiring needs[23] - The company introduced an intelligent outreach tool and is exploring the development of an interactive AI job-seeking assistant to enhance talent matching efficiency[23] - The company launched the "Multi-Recruitment Headhunter Cooperation Network (Multi-Recruitment RCN)" in September 2023, aimed at improving operational efficiency in the headhunting industry[26] - The company has launched a multi-hunting SaaS system that utilizes technology, algorithms, and big data to enhance digital management for recruitment firms[27] - The RCN model allows recruitment firms to optimize their operations by selecting collaboration modes based on their strengths, improving overall delivery efficiency[27] Market Outlook and Challenges - The company anticipates continued recovery in the job market, with a focus on enhancing core competitiveness and expanding its service offerings in response to market conditions[18] - The company is focusing on expanding into overseas markets, having become the first mainland recruitment platform to join the Hong Kong government's talent service partnership in August 2023[25] - The company has faced macroeconomic challenges but continues to enhance its market understanding and user-centric product development[27] - The company anticipates a recovery in growth momentum within the human resources industry as the macroeconomic environment stabilizes[27] Corporate Governance and Investor Caution - The financial and business data presented are based on internal records and have not been reviewed by auditors, highlighting the need for caution among investors[28] - The board emphasizes that forward-looking statements are subject to known and unknown risks, which may lead to significant differences from actual performance[28] Marketing and Brand Strategy - Marketing expenditure in Q3 2023 was reduced year-on-year, yet still resulted in effective user growth due to brand recognition and optimized advertising strategies[24] Social Responsibility - The company is committed to social responsibility while focusing on foundational capability building during both favorable and challenging times[27]