Release Date: December 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tongdao Liepin Group (HKSE:06100, Financial) achieved a non-GAAP operating profit of 85 million RMB, marking a year-on-year increase of 28.3%.
- The company's talent development services revenue increased by 23.7% year-on-year, driven by online professional training business growth.
- The number of registered business users on the platform grew by 10.9% compared to the same period last year.
- The company has successfully integrated AI technology into its services, enhancing product innovation and operational efficiency.
- Tongdao Liepin Group (HKSE:06100) has maintained a stable growth in the number of active companies and paying business customers, particularly in emerging industries.
Negative Points
- The company's total revenue for Q3 2024 decreased by 10% year-on-year, reflecting ongoing market challenges.
- Revenue from tailored recruitment and other human resource services dropped by 14.3% year-on-year.
- The mid to high-end recruitment market remains under pressure, with a 6% year-on-year decline in total recruitment positions.
- Cash billings in the third quarter experienced a double-digit decline compared to the same period last year.
- Despite cost reduction efforts, the overall market conditions continue to pose significant challenges to business growth.
Q & A Highlights
Q: With the recent government stimulus policies, what is the company's expectation regarding their impact on the recruitment market, especially for mid to high-end segments? Have there been any positive trends observed on the platform?
A: Kebin Dai, CEO: The policies have improved market confidence, but the complex international environment and domestic challenges mean we must remain cautious. The recruitment market, particularly mid to high-end, continues to face pressure, with a 6% year-on-year decline in recruitment positions. However, there is some recovery in industries like electronics and new energy vehicles. We are actively exploring new opportunities and hope for macroeconomic improvements to boost the recruitment market.
Q: Looking ahead to 2025, what are the company's strategic goals, and how will it balance revenue growth, profitability, and shareholder returns?
A: Kebin Dai, CEO: We will continue to develop both vertically and horizontally, focusing on mid to high-end recruitment and sub-businesses like flexible staffing and online services. We aim to leverage AI for product innovation and efficiency. Our primary focus will be on policy implementation and market stabilization before pursuing growth. We will control costs and expenses to ensure stable profits and healthy cash flow, and we aim to improve shareholder returns as profits recover.
Q: Can you provide a forecast for 2025 in terms of revenue and profit, considering the current job market situation?
A: Ge Tian, CFO: The recruitment market remains under pressure, with a double-digit decline in cash billings in Q3. We maintain a cautious outlook and hope for gradual recovery next year. We will further observe market conditions before providing specific guidance for 2025 revenue and profit.
Q: There was a significant decline in sales expenses but an increase in G&A expenses in Q3. What is the outlook for the full-year expenses ratio?
A: Ge Tian, CFO: The decline in sales expenses is due to refined budget management and sales structure optimization. The increase in G&A expenses is mainly due to one-time costs from organizational restructuring. Excluding these, G&A expenses actually decreased. We expect the full-year operating expense ratio to be lower than last year, with a 10-15% optimization range for expenses.
Q: How is the company addressing the challenges in the recruitment market and improving operational efficiency?
A: Kebin Dai, CEO: We are optimizing organizational structure and improving operational efficiency through AI technology and cost-saving strategies. We focus on product innovation and professional services to explore new market opportunities. Despite challenges, we aim to maintain business stability and a healthy platform ecosystem.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
