51job, Inc. (NASDAQ:JOBS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 09:00 pm ET


51job, Inc. (NASDAQ:JOBS) Q2 2020 Earnings Conference Call - Final Transcript


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Good day and welcome to the 51job, Inc. Second Quarter 2020 Conference Call and Webcast.

[Operator Instructions]

I would now like to turn the conference over to Ms. Linda Chien, Head of Investor Relations. Please go ahead.

Linda Chien

Thank you, Rachel, and thank you all for attending this teleconference to discuss unaudited financial results for the second quarter ended June 30, 2020. With me for today's call are Rick Yan, President and Chief Executive Officer; and Kathleen Chien, Chief Operating Officer and Acting Chief Financial Officer. A press release containing second quarter 2020 results was issued earlier today and a copy may be obtained through our website at ir.51job.com.

Before we begin, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All forward-looking statements are based upon management's expectations at the time of the statements and, involve inherent risks and uncertainties, that may cause actual results to differ materially. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the U.S. Securities and Exchange Commission, including our annual report on Form 20-F. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements, except as required under applicable law.

Also, I would like to remind you that during the course of this call, we will discuss non-GAAP measures. Please refer to the press release for a description of these non-GAAP measures and their significance to management in evaluating the company's financial performance. Reconciliations to the most directly comparable GAAP financial measures are provided where available, in the tables appended to the press release. This conference call is being recorded and broadcasted on the internet and a replay will be available through our website at ir.51job.com.

Now, I'll turn the call over to Rick.

Rick Yan

Thank you, Linda, and welcome to today's call. I will begin with an overview of the second quarter, followed by an assessment of current market conditions. Then, Kathleen will continue with a detailed discussion of our financial results as well as provide our guidance for the third quarter of 2020.

After an extremely difficult start to the year, through vigilant collective efforts among government, business and society to battle the COVID-19 pandemic, economic activity has been increasing and recovery is underway in China. For the second quarter, there was a solid sequential rebound in our other HR services area and we maintained sound profitability that balanced costs management and strategic investments important for future growth. Exceeding our forecast, total revenues were RMB829 million and non-GAAP EPS was RMB5.28 per share.

Our other HR services segment improved significantly from the first quarter and Q2 revenues came in better than expected at RMB325 million. As social gatherings and travel are now generally allowed throughout most of the country, companies are becoming more comfortable with in-person events and we have been able to conduct these