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 51job, Inc. Reports Fourth Quarter and Fiscal Year 2016 Financial Results
   Wednesday, February 22, 2017 4:15:00 PM ET

51job, Inc. (JOBS ) ("51job" or the "Company"), a leading provider of integrated human resource services in China, announced today its unaudited financial results for the fourth quarter and fiscal year of 2016 ended December 31, 2016.

Fourth Quarter 2016 Financial Highlights:

-- Total revenues increased 13.6% over Q4 2015 to RMB694.2 million (US$100.0 million), within the Company’s guidance range

-- Online recruitment services revenues increased 15.0% over Q4 2015 to RMB423.8 million (US$61.0 million)

-- Other human resource related revenues increased 11.8% over Q4 2015 to RMB270.4 million (US$38.9 million), which reflected the impact of a value-added tax ("VAT") policy change effective May 1, 2016

-- Gross margin of 70.8% compared with 71.6% in Q4 2015

-- Income from operations increased 12.2% over Q4 2015 to RMB209.7 million (US$30.2 million)

-- Fully diluted earnings per share were RMB3.45 (US$0.50)

-- Excluding share-based compensation expense, gain 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 RMB3.61 (US$0.52), exceeding the Company’s guidance range

Fiscal Year 2016 Financial Highlights:

-- Total revenues increased 12.9% over 2015 to RMB2,372.7 million (US$341.7 million)

-- Gross margin of 71.6% compared with 72.3% in 2015

-- Income from operations increased 7.8% over 2015 to RMB611.8 million (US$88.1 million)

-- Fully diluted earnings per share were RMB9.68 (US$1.39)

-- Excluding share-based compensation expense, gain 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 RMB12.13 (US$1.75)

-- Cash and short-term investments increased to RMB6,080.4 million (US$875.8 million) as of December 31, 2016

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, said, "While we delivered solid financial results in 2016, the year was even more noteworthy in our minds for the progress we made on product development and the diversification of our engagement points with both employers and job seekers. Our online service offerings are more innovative and comprehensive than ever following a refresh of the flagship 51job.com portal, the enhancement of our search engine methodology, and the introduction of employee referral and candidate background check services. We believe our strengthened value proposition to users will not only elevate recruitment compatibility and effectiveness, but also provide additional fuel to drive online customer spending and sales productivity over time. In 2017, we will continue to maintain our long-standing discipline in balancing investments and returns, incubate and pilot new products and platforms, and further establish 51job as the most complete HR services provider in China."

Fourth Quarter 2016 Unaudited Financial Results

Total revenues for the fourth quarter ended December 31, 2016 were RMB694.2 million (US$100.0 million), an increase of 13.6% from RMB610.8 million for the same quarter in 2015.

Online recruitment services revenues for the fourth quarter of 2016 were RMB423.8 million (US$61.0 million), representing a 15.0% increase from RMB368.6 million for the same quarter of the prior year. The growth was driven by an increase in the number of unique employers utilizing the Company’s online services, which was partially offset by lower revenue per unique employer. The number of unique employers increased 17.3% to 337,104 in the fourth quarter of 2016 compared with 287,419 in the same quarter of the prior year due to strong customer acquisition. Although the pricing of like-for-like services was generally unchanged over the past year, average revenue per unique employer decreased 2.0% in the fourth quarter of 2016 as compared with the same quarter in 2015. This was primarily due to robust new customer growth which outpaced and offset the effect of greater spending by existing customers, as well as a higher level of average revenue per unique employer in the fourth quarter of the prior year that benefitted from the acquisition of Yingjiesheng.com in 2015.

Other human resource related revenues for the fourth quarter of 2016 increased 11.8% to RMB270.4 million (US$38.9 million) from RMB241.8 million in the same quarter of 2015. The increase was primarily due to greater usage and growth of seasonal campus recruitment, business process outsourcing and training services. However, this growth was partially offset by the impact from the implementation of a VAT policy change effective May 1, 2016 that resulted in a reduction in the amount of revenues recorded.

Gross profit for the fourth quarter of 2016 increased 13.6% to RMB486.6 million (US$70.1 million) from RMB428.4 million for the same quarter of the prior year. Gross margin, which is gross profit as a percentage of net revenues, was 70.8% in the fourth quarter of 2016 compared with 71.6% in the same quarter in 2015.

Operating expenses for the fourth quarter of 2016 increased 14.7% to RMB276.8 million (US$39.9 million) from RMB241.4 million for the same quarter of 2015. Sales and marketing expenses for the fourth quarter of 2016 increased 18.2% to RMB203.3 million (US$29.3 million) from RMB172.0 million for the same quarter of the prior year primarily due to higher employee compensation expenses and headcount additions. General and administrative expenses for the fourth quarter of 2016 increased 6.0% to RMB73.6 million (US$10.6 million) from RMB69.4 million for the same quarter of the prior year primarily due to higher employee compensation and office expenses.

Income from operations for the fourth quarter of 2016 increased 12.2% to RMB209.7 million (US$30.2 million) from RMB187.0 million for the fourth quarter of 2015. Operating margin, which is income from operations as a percentage of net revenues, was 30.5% in the fourth quarter of 2016 compared with 31.3% in the same quarter of 2015. Excluding share-based compensation expense, operating margin would have been 33.5% in the fourth quarter of 2016 compared with 34.7% in the same quarter of 2015.

The Company recognized a gain from foreign currency translation of RMB1.6 million (US$0.2 million) in the fourth quarter of 2016 compared with a loss of RMB21.1 million in the fourth quarter of 2015 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 fourth quarter of 2016, the Company recognized a mark-to-market, non-cash gain of RMB4.1 million (US$0.6 million) associated with a change in fair value of convertible senior notes compared with a loss of RMB18.2 million in the fourth quarter of 2015.

The effective tax rate in the fourth quarter of 2016 decreased to 14.6% compared with 21.1% in the fourth quarter of 2015 as a result of non-tax deductible items, primarily the change in fair value of convertible senior notes, which comprised a smaller portion of the income before income tax base in the fourth quarter of 2016 than in the comparable year-ago period, as well as adjustments to income tax expense for the full year 2016 to reflect actual income tax due. The effective tax rate on non-GAAP results in the fourth quarter of 2016 was 13.7% compared with 15.8% in the fourth quarter of 2015.

Net income attributable to 51job for the fourth quarter of 2016 was RMB203.4 million (US$29.3 million) compared with RMB141.8 million for the same quarter in 2015. Fully diluted earnings per share for the fourth quarter of 2016 were RMB3.45 (US$0.50) compared with RMB2.45 for the same quarter in 2015.

In the fourth quarter of 2016, total share-based compensation expense was RMB20.1 million (US$2.9 million) compared with RMB20.8 million in the fourth quarter of 2015.

Excluding share-based compensation expense, gain/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 fourth quarter of 2016 increased 7.9% to RMB217.9 million (US$31.4 million) compared with RMB201.9 million for the fourth quarter of 2015. Non-GAAP adjusted fully diluted earnings per share were RMB3.61 (US$0.52) in the fourth quarter of 2016 compared with RMB3.40 in the fourth quarter of 2015.

Fiscal Year 2016 Unaudited Financial Results

Total revenues in 2016 were RMB2,372.7 million (US$341.7 million), an increase of 12.9% from RMB2,101.9 million in 2015.

Online recruitment services revenues in 2016 were RMB1,547.1 million (US$222.8 million), representing a 14.1% increase from RMB1,356.4 million in 2015. Unique employers using the Company’s online recruitment services grew 13.3% to 460,811 in 2016 from 406,880 in 2015. An employer who purchases online services multiple times or in multiple quarters throughout the fiscal year is counted as one unique employer for the annual total. Average revenue per unique employer increased 0.7% in 2016 compared with 2015.

Print advertising revenues in 2016 was nil. As of December 31, 2015, the Company ceased all print advertising services.

Other human resource related revenues in 2016 grew 11.5% to RMB825.6 million (US$118.9 million) from RMB740.1 million in 2015. The increase was partially offset by the VAT policy change that went into effect in May 2016.

Income from operations in 2016 increased 7.8% to RMB611.8 million (US$88.1 million) from RMB567.7 million in 2015.

Net income attributable to 51job in 2016 was RMB566.0 million (US$81.5 million) compared with RMB618.1 million in 2015. Fully diluted earnings per share in 2016 were RMB9.68 (US$1.39) compared with RMB10.41 in 2015.

Excluding share-based compensation expense, gain/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 in 2016 increased 4.1% to RMB721.2 million (US$103.9 million) from RMB692.7 million in 2015. Non-GAAP adjusted fully diluted earnings per share were RMB12.13 (US$1.75) in 2016 compared with RMB11.64 in 2015.

As of December 31, 2016, cash and short-term investments totaled RMB6,080.4 million (US$875.8 million) compared with RMB4,950.9 million as of December 31, 2015. Short-term investments consist of certificates of deposit with original maturities from three months to one year.

Business Outlook

Based on current market conditions and factoring in the VAT policy change as well as seasonality related to the Chinese New Year holiday, the Company’s total revenues target for the first quarter of 2017 is in the estimated range of RMB595 million to RMB615 million (US$85.7 million to US$88.6 million). 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 first quarter of 2017 is in the estimated range of RMB2.55 to RMB2.75 (US$0.37 to US$0.40) per share. The Company expects total share-based compensation expense in the first quarter of 2017 to be in the estimated range of RMB22 million to RMB23 million (US$3.2 million to US$3.3 million).

Recent Transactions

The Company has recently completed three transactions for a total consideration of RMB248.9 million (US$36.8 million), which were funded from the Company’s existing cash resources. The Company continues to actively pursue several investment opportunities.

VAT Policy Change

Effective May 1, 2016, in accordance with regulations announced by the PRC Ministry of Finance and State Administration of Taxation, VAT replaced business tax in all industries in China. Because the business tax-to-VAT transition for the Company’s online recruitment services revenues was completed in 2015, these regulations primarily affected the Company’s other human resource related revenues. The Company ceased paying business tax on total revenues and instead started paying VAT on May 1, 2016. The Company’s other human resource related revenues have been negatively affected due to this policy change, which impacts the direct comparability between future and previously reported total revenue and net revenue figures.

Currency Convenience Translation

For the convenience of readers, certain Renminbi amounts have been translated into U.S. dollars at the rate of RMB6.9430 to US$1.00, the noon buying rate on December 30, 2016 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 February 22, 2017 (9:00 a.m. Beijing / Hong Kong time zone on February 23, 2017) to discuss its fourth quarter and fiscal year 2016 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: 800-905945 China: 4001-201203 Conference ID: 51job

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

Contact: Linda Chien Investor Relations 51job, Inc. +86-21-6879-6250 ir@51job.com

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, gain/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 gain/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, gain/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, and http://www.51jingying.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, executive search and compensation analysis. 51job has a call center in Wuhan and a nationwide sales office network spanning 25 cities across China.

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.
Consolidated Statements of Operations and Comprehensive Income
                                                      For the Three Months Ended
                                                      December 31,         December 31,         December 31,
                                                      2015                 2016                 2016
(In thousands, except share and per share data)       (unaudited)          (unaudited)          (unaudited)
                                                      RMB                  RMB                  US$ (Note 1)
Revenues:
Online recruitment services                           368,598              423,760              61,034
Print advertising                                     378                  -                    -
Other human resource related revenues                 241,843              270,392              38,945
Total revenues                                        610,819              694,152              99,979
Less: Business tax and surcharges                     (12,711)             (7,154)              (1,030)
Net revenues                                          598,108              686,998              98,949
Cost of services (Note 2)                             (169,727)            (200,447)            (28,870)
Gross profit                                          428,381              486,551              70,079
Operating expenses:
Sales and marketing (Note 3)                          (172,024)            (203,266)            (29,276)
General and administrative (Note 4)                   (69,385)             (73,550)             (10,593)
Total operating expenses                              (241,409)            (276,816)            (39,869)
Income from operations                                186,972              209,735              30,210
(Loss) Gain from foreign currency translation         (21,060)             1,564                225
Interest and investment income, net                   23,018               13,625               1,962
Change in fair value of convertible senior notes      (18,176)             4,096                590
Other income, net                                     8,747                8,928                1,286
Income before income tax expense                      179,501              237,948              34,273
Income tax expense                                    (37,828)             (34,635)             (4,988)
Net income                                            141,673              203,313              29,285
Net loss attributable to non-controlling interests    176                  118                  17
Net income attributable to 51job, Inc.                141,849              203,431              29,302
Net income                                            141,673              203,313              29,285
Other comprehensive income                            302                  29,457               4,243
Total comprehensive income                            141,975              232,770              33,528
Earnings per share:
Basic                                                 2.47                 3.47                 0.50
Diluted (Note 5)                                      2.45                 3.45                 0.50
Weighted average number of common shares outstanding:
Basic                                                 57,435,477           58,594,960           58,594,960
Diluted                                               58,012,047           58,934,411           58,934,411
Notes:
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.9430
to US$1.00 on December 30, 2016 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 RMB3,339 and RMB3,518 (US$507) for the three months ended
December 31, 2015 and 2016, respectively.
(3) Includes share-based compensation expense of RMB2,869 and RMB3,025 (US$436) for the three months ended
December 31, 2015 and 2016, respectively.
(4) Includes share-based compensation expense of RMB14,627 and RMB13,604 (US$1,959) for the three months ended
December 31, 2015 and 2016, respectively.
(5) Diluted earnings per share is calculated in accordance with the "if converted" method. The potential conversion
of the convertible senior notes was excluded in the computation of diluted earnings per share for the three months
ended December 31, 2015 and 2016 because the effect would be anti-dilutive.
51job, Inc.
Consolidated Statements of Operations and Comprehensive Income
                                                      For the Year Ended
                                                      December 31,         December 31,         December 31,
                                                      2015                 2016                 2016
(In thousands, except share and per share data)       (unaudited)          (unaudited)          (unaudited)
                                                      RMB                  RMB                  US$ (Note 1)
Revenues:
Online recruitment services                           1,356,442            1,547,143            222,835
Print advertising                                     5,328                -                    -
Other human resource related revenues                 740,119              825,552              118,904
Total revenues                                        2,101,889            2,372,695            341,739
Less: Business tax and surcharges                     (46,669)             (34,361)             (4,949)
Net revenues                                          2,055,220            2,338,334            336,790
Cost of services (Note 2)                             (569,979)            (663,001)            (95,492)
Gross profit                                          1,485,241            1,675,333            241,298
Operating expenses:
Sales and marketing (Note 3)                          (654,468)            (783,492)            (112,846)
General and administrative (Note 4)                   (263,067)            (280,002)            (40,329)
Total operating expenses                              (917,535)            (1,063,494)          (153,175)
Income from operations                                567,706              611,839              88,123
(Loss) Gain from foreign currency translation         (55,857)             238                  34
Interest and investment income, net                   93,548               58,933               8,488
Change in fair value of convertible senior notes      67,168               (69,439)             (10,001)
Other income, net                                     71,533               98,315               14,160
Income before income tax expense                      744,098              699,886              100,804
Income tax expense                                    (126,301)            (134,699)            (19,401)
Net income                                            617,797              565,187              81,403
Net loss attributable to non-controlling interests    260                  791                  114
Net income attributable to 51job, Inc.                618,057              565,978              81,517
Net income                                            617,797              565,187              81,403
Other comprehensive income                            890                  29,860               4,301
Total comprehensive income                            618,687              595,047              85,704
Earnings per share:
Basic                                                 10.71                9.74                 1.40
Diluted (Note 5)                                      10.41                9.68                 1.39
Weighted average number of common shares outstanding:
Basic                                                 57,714,850           58,132,976           58,132,976
Diluted                                               62,498,651           58,474,068           58,474,068
Notes:
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.9430
to US$1.00 on December 30, 2016 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 RMB13,770 and RMB14,080 (US$2,028) for the year ended
December 31, 2015 and 2016, respectively.
(3) Includes share-based compensation expense of RMB11,837 and RMB12,104 (US$1,744) for the year ended
December 31, 2015 and 2016, respectively.
(4) Includes share-based compensation expense of RMB60,338 and RMB59,886 (US$8,625) for the year ended
December 31, 2015 and 2016, respectively.
(5) Diluted earnings per share is calculated in accordance with the "if converted" method. This includes the add-back
of interest expense of RMB34,983, change in fair value of convertible senior notes of RMB67,168 and foreign currency
translation loss of RMB64,839 related to the convertible senior notes to the numerator of net income attributable to
51job for the year ended December 31, 2015. The maximum number of 4,035,672 potentially converted shares
related to the convertible senior notes was added to the denominator of diluted common shares for the year ended
December 31, 2015. The potential conversion of the convertible senior notes was excluded in the computation
of diluted earnings per share for the year ended December 31, 2016 because the effect would be anti-dilutive.
51job, Inc.
Reconciliation of GAAP and Non-GAAP Results
                                                           For the Three Months Ended
                                                           December 31,         December 31,         December 31,
                                                           2015                 2016                 2016
(In thousands, except share and per share data)            (unaudited)          (unaudited)          (unaudited)
                                                           RMB                  RMB                  US$ (Note 1)
GAAP income before income tax expense                      179,501              237,948              34,273
Add back: Share-based compensation                         20,835               20,147               2,902
Add back: Loss (Gain) from foreign currency translation    21,060               (1,564)              (225)
Add back: Change in fair value of convertible senior notes 18,176               (4,096)              (590)
Non-GAAP income before income tax expense                  239,572              252,435              36,360
GAAP income tax expense                                    (37,828)             (34,635)             (4,988)
Tax effect of non-GAAP line items                          (6)                  (30)                 (4)
Non-GAAP income tax expense                                (37,834)             (34,665)             (4,992)
Non-GAAP adjusted net income                               201,738              217,770              31,368
Non-GAAP adjusted net income attributable to 51job, Inc.   201,914              217,888              31,385
Non-GAAP adjusted earnings per share:
Basic                                                      3.52                 3.72                 0.54
Diluted (Note 2)                                           3.40                 3.61                 0.52
Weighted average number of common shares outstanding:
Basic                                                      57,435,477           58,594,960           58,594,960
Diluted                                                    62,047,719           62,970,083           62,970,083
                                                           For the Year Ended
                                                           December 31,         December 31,         December 31,
                                                           2015                 2016                 2016
(In thousands, except share and per share data)            (unaudited)          (unaudited)          (unaudited)
                                                           RMB                  RMB                  US$ (Note 1)
GAAP income before income tax expense                      744,098              699,886              100,804
Add back: Share-based compensation                         85,945               86,070               12,397
Add back: Loss (Gain) from foreign currency translation    55,857               (238)                (34)
Add back: Change in fair value of convertible senior notes (67,168)             69,439               10,001
Non-GAAP income before income tax expense                  818,732              855,157              123,168
GAAP income tax expense                                    (126,301)            (134,699)            (19,401)
Tax effect of non-GAAP line items                          (4)                  (22)                 (3)
Non-GAAP income tax expense                                (126,305)            (134,721)            (19,404)
Non-GAAP adjusted net income                               692,427              720,436              103,764
Non-GAAP adjusted net income attributable to 51job, Inc.   692,687              721,227              103,878
Non-GAAP adjusted earnings per share:
Basic                                                      12.00                12.41                1.79
Diluted (Note 3)                                           11.64                12.13                1.75
Weighted average number of common shares outstanding:
Basic                                                      57,714,850           58,132,976           58,132,976
Diluted                                                    62,498,651           62,509,740           62,509,740
Notes:
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.9430
to US$1.00 on December 30, 2016 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 RMB8,988 and RMB9,618 (US$1,385) related to the convertible senior notes to the numerator
of non-GAAP adjusted net income attributable to 51job for the three months ended December 31, 2015 and 2016,
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 December 31, 2015 and 2016.
(3) Diluted earnings per share is calculated in accordance with the "if converted" method. This includes the add-back
of interest expense of RMB34,983 and RMB37,298 (US$5,372) related to the convertible senior notes to the numerator
of non-GAAP adjusted net income attributable to 51job for the year ended December 31, 2015 and 2016,
respectively. The maximum number of 4,035,672 potentially converted shares related to the convertible senior notes
was added to the denominator of diluted common shares for the year ended December 31, 2015 and 2016.
51job, Inc.
Consolidated Balance Sheets
                                                                          As of
                                                                          December 31,     December 31,     December 31,
                                                                          2015             2016             2016
(In thousands, except share and per share data)                           (unaudited)      (unaudited)      (unaudited)
                                                                          RMB              RMB              US$ (Note 1)
ASSETS
Current assets:
                        Cash                                              1,125,352        1,921,074        276,692
                        Restricted cash                                   13,059           389              56
                        Short-term investments                            3,825,547        4,159,318        599,066
                        Accounts receivable (net of allowance of RMB3,290
                        and RMB6,144 as of December 31, 2015 and 2016,
                        respectively)                                     97,880           111,246          16,023
                        Prepayments and other current assets              496,715          527,558          75,984
                        Deferred tax assets, current                      1,745            -                -
Total current assets                                                      5,560,298        6,719,585        967,821
Non-current assets:
                        Long-term investments                             22,800           189,017          27,224
                        Property and equipment, net                       559,404          526,541          75,838
                        Goodwill                                          217,394          217,394          31,311
                        Intangible assets, net                            56,105           73,620           10,603
                        Other long-term assets                            5,578            8,988            1,295
                        Deferred tax assets, non-current                  683              765              111
Total non-current assets                                                  861,964          1,016,325        146,382
Total assets                                                              6,422,262        7,735,910        1,114,203
LIABILITIES AND EQUITY
Current liabilities:
                        Accounts payable                                  24,096           32,516           4,683
                        Salary and employee related accrual               84,185           103,559          14,916
                        Taxes payable                                     114,162          155,786          22,438
                        Advance from customers                            563,621          655,416          94,400
                        Convertible senior notes, current                 -                1,257,709        181,148
                        Other payables and accruals                       349,974          498,036          71,732
Total current liabilities                                                 1,136,038        2,703,022        389,317
Non-current liabilities:
                        Deferred tax liabilities, non-current             34,785           57,166           8,234
                        Convertible senior notes, non-current             1,108,877        -                -
                        Other long-term payables                          8,450            -                -
Total non-current liabilities                                             1,152,112        57,166           8,234
Total liabilities                                                         2,288,150        2,760,188        397,551
Shareholders’ equity:
                        Common shares (US$0.0001 par value: 500,000,000
                        shares authorized, 58,944,631 and 60,062,385
                        shares issued and oustanding as of December 31,
                        2015 and 2016, respectively)                      48               49               7
                        Additional paid-in capital                        1,052,788        1,299,350        187,145
                        Statutory reserves                                13,232           13,360           1,924
                        Accumulated other comprehensive income            2,422            32,282           4,650
                        Retained earnings                                 3,056,552        3,622,402        521,734
Total 51job, Inc. shareholders’ equity                                    4,125,042        4,967,443        715,460
Non-controlling interests                                                 9,070            8,279            1,192
Total equity                                                              4,134,112        4,975,722        716,652
Total liabilities and equity                                              6,422,262        7,735,910        1,114,203
Note (1):  The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of
RMB6.9430 to US$1.00 on December 30, 2016 in New York for cable transfers of Renminbi as set forth in the H.10
weekly statistical release of the Federal Reserve Board.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/51job-inc-reports-fourth-quarter-and-fiscal-year-2016-financial-results-300411525.html

SOURCE 51job, Inc.

https://rt.prnewswire.com/rt.gif?NewsItemId=CN18526&Transmission_Id=201702221615PR_NEWS_USPR_____CN18526&DateId=20170222



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