51job, Inc. Reports Fourth Quarter and Fiscal Year 2021 Financial Results

SHANGHAI,April 1,2022 --51job,Inc. (Nasdaq: JOBS) ("51job" or the "Company"),a leading provider of integrated human resource services in China,announced today its unaudited financial results for thefourth quarterand fiscal year of 2021 ended December 31,2021.

Fourth Quarter 2021 Financial Highlights:

Net revenues increased 15.7% over Q4 2020 to RMB1,345.2 million (US$211.1 million)

Online recruitment services revenues increased 12.0%

Other human resource related revenues increased 19.0%

Income from operations was RMB304.6 million (US$47.8 million)

Fully diluted earnings per share was RMB5.23 (US$0.82)

Non-GAAP adjusted fully diluted earnings per share[1] was RMB5.99 (US$0.94)

Fiscal Year 2021 Financial Highlights:

Net revenues increased 19.8% from 2020 to RMB4,420.4 million (US$693.7 million)

Online recruitment services revenues increased 11.6%

Other human resource related revenues increased 31.3%

Income from operations was RMB551.3 million (US$86.5 million)

Fully diluted earnings per share was RMB9.40 (US$1.47)

Non-GAAP adjusted fully diluted earnings per share was RMB13.12 (US$2.06)

[1]Adjusted fully diluted earnings per share is anon-GAAPfinancial measure,which excludes share-based compensation expense,loss from foreign currency translation,and changes in fair value of listed equity securities investment and long-term investment,as well as the related tax effect of these items. Please refer to the "Use ofNon-GAAPFinancial Measures" section and "Reconciliation of GAAP andNon-GAAPResults" tables contained in this press release.

Fourth Quarter 2021 Unaudited Financial Results

Net revenues for the fourth quarter ended December 31,2021 were RMB1,345.2 million (US$211.1 million),an increase of 15.7% from RMB1,163.1 million for the same quarter in 2020.

Online recruitment services revenues for the fourth quarter of 2021 increased 12.0% to RMB617.7 million (US$96.9 million) compared with RMB551.6 million for the same quarter in 2020,primarily due to an improvement in hiring sentiment,demand and activity from employers in 2021.

Other human resource related revenues for the fourth quarter of 2021 increased 19.0% to RMB727.5 million (US$114.2 million) from RMB611.5 million for the same quarter in 2020. The growth was primarily driven by robust employer demand for seasonal campus recruitment,business process outsourcing and training services in 2021.

Cost of services for the fourth quarter of 2021 increased 29.1% to RMB535.2 million (US$84.0 million) from RMB414.5 million for the same quarter in 2020,primarily due to higher employee compensation expenses,headcount additions and greater direct costs,such as venue rental,media production and technology support,incurred in providing campus recruitment services to employers. Gross profit for the fourth quarter of 2021 increased 8.2% to RMB810.0 million (US$127.1 million) from RMB748.6 million for the same quarter in 2020. Gross margin,which is gross profit as a percentage of net revenues,was 60.2% in the fourth quarter of 2021 compared with 64.4% for the samequarterin 2020.

Operating expenses for the fourth quarter of 2021 increased 28.9% to RMB505.4 million (US$79.3 million) from RMB392.0 million for the same quarter in 2020. Sales and marketing expenses for the fourth quarter of 2021 increased 34.3% to RMB403.6 million (US$63.3 million) from RMB300.6 million for the same quarter in 2020,staff additions and greater spending on advertising and brand awareness campaigns. Advertising and promotion expenses increased 27.7% to RMB90.0 million (US$14.1 million) for the fourth quarter of 2021 from RMB70.5 million for the same quarter in 2020.

General and administrative expenses for the fourth quarter of 2021 increased 11.3% to RMB101.8 million (US$16.0 million) from RMB91.4 million for the same quarter in 2020,primarily due to higher employee compensation expenses

Income from operations for the fourth quarter of 2021 was RMB304.6 million (US$47.8 million) compared with RMB356.6 million for the fourth quarter of 2020. Operating margin,which is income from operations as a percentage of net revenues,was 22.6% for the fourth quarter of 2021 compared with 30.7% for the same quarter in 2020. Excluding share-based compensation expense,operating margin would have been 24.9% for the fourth quarter of 2021 compared with 33.7% for the same quarter in 2020.

The Company recognized a loss from foreign currency translationof RMB10.9 million (US$1.7 million) in the fourth quarter of 2021 compared with RMB33.9 million in the fourth quarter of 2020,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.

The Company recognized a mark-to-market,non-cash loss of RMB10.7 million (US$1.7 million) in the fourth quarter of 2021 compared with RMB9.4 million in the fourth quarter of 2020 associated with a change in fair value of listed equity securities investment in Huali University Group Limited,which is traded on the Hong Kong Stock Exchange. The Company also recognized RMB3.4 million (US$0.5 million) in professional services fees and administrative expenses related to the proposed going-private transaction in the fourth quarter of 2021.

Other income in the fourth quarter of 2021 included local government financial subsidies of RMB98.6 million (US$15.5 million) compared with RMB14.9 million in the fourth quarter of 2020.

Net income attributable to 51job for the fourth quarter of 2021 was RMB355.2 million (US$55.7 million) compared with RMB342.0 million for the same quarter in 2020. Fully diluted earnings per share for the fourth quarter of 2021 was RMB5.23 (US$0.82) compared with RMB5.01 for the same quarter in 2020.

In the fourth quarter of 2021,total share-based compensation expense was RMB29.9 million (US$4.7 million) compared with RMB35.0 million in the fourth quarter of 2020.

Excluding share-based compensation expense,loss from foreign currency translation and change in fair value of listed equity securities investment,as well as the related tax effect of these items,non-GAAP adjusted net income attributable to 51job for the fourth quarter of 2021 was RMB406.7 million (US$63.8 million) compared with RMB420.1 million for the fourth quarter of 2020. Non-GAAP adjusted fully diluted earnings per share was RMB5.99 (US$0.94) in the fourth quarter of 2021 compared with RMB6.16 in the fourth quarter of 2020.

Fiscal Year 2021 Unaudited Financial Results

Net revenues in 2021 were RMB4,420.4 million (US$693.7 million),an increase of 19.8% from RMB3,689.0 million in 2020

Online recruitment services revenues in 2021 increased 11.6% to RMB2,396.2 million (US$376.0 million) from RMB2,147.3 million in 2020. The increase was primarily due to the improvement in business activity and more recruitment needs of employers in China in 2021.

Other human resource related revenues in 2021 increased 31.3% to RMB2,024.2 million (US$317.6 million) from RMB1,541.6 million in 2020,primarily due to resilient customer demand and usage of the Company's training,campus recruitment,placement and business process outsourcing services.

Cost of services in 2021 increased 32.9% to RMB1,676.7 million (US$263.1 million) from RMB1,261.7 million in 2020,primarily due to higher employee compensation expenses and headcount additions. Gross profit in 2021 increased 13.0% to RMB2,743.7 million (US$430.5 million) from RMB2,427.2 million in 2020. Gross margin was 62.1% in 2021 compared with 65.8% in 2020.

Income from operations in 2021 decreased 36.4% to RMB551.3 million (US$86.5 million) from RMB867.1 million in 2020,primarily due to the significant increase in sales and marketing expenses in 2021. Operating margin was 12.5% in 2021 compared with 23.5% in 2020. Excluding share-based compensation expense,operating margin would have been 15.9% in 2021 compared with 27.4% in 2020.

Net income attributable to 51job in 2021 was RMB640.7 million (US$100.5 million) compared with RMB1,097.3 million in 2020. Fully diluted earnings per share in 2021 was RMB9.40 (US$1.47) compared with RMB16.12 in 2020.

Excluding share-based compensation expense,non-GAAP adjusted net income attributable to 51job in 2021 was RMB894.4 million (US$140.4 million) compared with RMB1,243.9 million in 2020. Non-GAAP adjusted fully diluted earnings per share was RMB13.12 (US$2.06) in 2021 compared with RMB18.28 in 2020.

As of December 31,2021,cash and short-term investments totaled RMB10,587.0 million (US$1,661.3 million) compared with RMB10,761.9 million as of December 31,2020.

Currency Convenience Translation

For the convenience of readers,certain Renminbi amounts have been translatedinto U.S. dollar amounts at the rate of RMB6.3726to US$1.00,the noon buying rate on December 30,2021 in New York for cable transfers of Renminbias set forth in the H.10 weekly statistical release of theFederal Reserve Board.

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,loss from foreign currency translation and changes in fair value of listed equity securities investment and long-term investment,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 loss from foreign currency translation and changes in fair value of listed equity securities investment and long-term investment,as well as the related tax effect,from its non-GAAP financial measures is useful for its management and investors as such translation,mark-to-market gain or 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,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,http://www.51jingying.com,http://www.lagou.com,and http://www.51mdd.com),as well as mobile applications,connect millions of people withemployment 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 network of sales and service locations spanning more than 30 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,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 theU.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; growth and trends of the human resource services industry in China; market acceptance of 51job's products and services; competition in the industry; 51job's ability to control costs and expenses; 51job's ability to retain key personnel and attract new talent; relevant government policies and regulations relating to 51job's industry,corporate structure and business operations; seasonality in the business;fluctuations in the value of the Renminbi against the U.S. dollar and other currencies; 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; and fluctuations in general economic and business conditions in China and globally,including the impact of the coronavirus or other pandemic. 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 releaseand 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.

Contact

Investor Relations,51job,Inc.

Tel: +86-21-6879-6250

Email: ir@51job.com

51job,Inc.

Consolidated Statements of Operations and Comprehensive Income

For the Three Months Ended

December 31,

2020

December 31,

2021

December 31,

2021

(In thousands,except share and per share data)

(unaudited)

(unaudited)

(unaudited)

RMB

RMB

US$ (Note 1)

Revenues:

Online recruitment services

551,562

617,703

96,931

Other human resource related revenues

611,545

727,480

114,157

Net revenues

1,163,107

1,345,183

211,088

Cost of services (Note 2)

(414,504)

(535,189)

(83,983)

Gross profit

748,603

809,994

127,105

Operating expenses:

Sales and marketing (Note 3)

(300,583)

(403,604)

(63,334)

General and administrative (Note 4)

(91,439)

(101,786)

(15,972)

Total operating expenses

(392,022)

(505,390)

(79,306)

Income from operations

356,581

304,604

47,799

Loss from foreign currency translation

(33,851)

(10,917)

(1,713)

Interest and investment income,net

59,482

56,142

8,810

Change in fair value of listed equity securities investment

(9,404)

(10,715)

(1,681)

Fees and expenses related to proposed going-private

transaction

—

(3,357)

(527)

Other income,net

11,691

98,335

15,431

Income before income tax expense

384,499

434,092

68,119

Income tax expense

(52,695)

(83,210)

(13,057)

Net income

331,804

350,882

55,062

Net loss attributable to non-controlling interests

10,244

4,273

671

Net income attributable to 51job,Inc.

342,048

355,155

55,733

Net income

331,062

Other comprehensive income (loss)

22,745

(269)

(42)

Total comprehensive income

354,549

350,613

55,020

Earnings per share:

Basic

5.07

5.27

0.83

Diluted

5.01

5.23

0.82

Weighted average number of common shares outstanding:

Basic

67,402,582

67,437,209

67,209

Diluted

68,245,670

67,941,118

67,118

Notes:

(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.3726

to US$1.00 on December 30,2021 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 RMB6,307 and RMB4,933 (US$774) for the three months ended

December 31,2020 and 2021,respectively.

(3) Includes share-based compensation expense of RMB5,422 and RMB4,241 (US$666) for the three months ended

December 31,respectively.

(4) Includes share-based compensation expense of RMB23,280 and RMB20,717 (US$3,251) for the three months ended

December 31,respectively.

51job,Inc.

Consolidated Statements of Operations and Comprehensive Income

For the Year Ended

December 31,except share and per share data)

(unaudited)

(unaudited)

(unaudited)

RMB

RMB

US$ (Note 1)

Revenues:

Online recruitment services

2,147,334

2,396,209

376,017

Other human resource related revenues

1,541,617

2,024,219

317,644

Net revenues

3,688,951

4,420,428

693,661

Cost of services (Note 2)

(1,261,731)

(1,676,727)

(263,115)

Gross profit

2,427,220

2,743,701

430,546

Operating expenses:

Sales and marketing (Note 3)

(1,182,677)

(1,790,535)

(280,974)

General and administrative (Note 4)

(377,438)

(401,827)

(63,055)

Total operating expenses

(1,560,115)

(2,192,362)

(344,029)

Income from operations

867,105

551,339

86,517

Loss from foreign currency translation

(53,442)

(15,793)

(2,478)

Interest and investment income,net

228,500

212,690

33,376

Change in fair value of listed equity securities investment

10,760

(88,296)

(13,856)

Fees and expenses related to proposed going-private

transaction

—

(87,544)

(13,738)

Change in fair value of long-term investment

39,614

—

—

Other income,net

167,308

192,233

30,166

Income before income tax expense

1,259,845

764,629

119,987

Income tax expense

(188,417)

(155,721)

(24,436)

Net income

1,071,428

608,908

95,551

Net loss attributable to non-controlling interests

25,848

31,775

4,986

Net income attributable to 51job,Inc.

1,097,276

640,683

100,537

Net income

1,551

Other comprehensive income (loss)

22,451

(415)

(65)

Total comprehensive income

1,093,879

608,493

95,486

Earnings per share:

Basic

16.35

9.50

1.49

Diluted

16.12

9.40

1.47

Weighted average number of common shares outstanding:

Basic

67,101,601

67,429,296

67,296

Diluted

68,056,724

68,185,891

68,891

Notes:

(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.3726

to US$1.00 on December 30,2021 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 RMB23,648 and RMB24,019 (US$3,769) for the year ended

December 31,respectively.

(3) Includes share-based compensation expense of RMB20,329 and RMB20,648 (US$3,240) for the year ended

December 31,respectively.

(4) Includes share-based compensation expense of RMB99,829 and RMB104,889 (US$16,460) for the year ended

December 31,Inc.

Reconciliation of GAAP and Non-GAAP Results

For the Three Months Ended

December 31,except share and per share data)

(unaudited)

(unaudited)

(unaudited)

RMB

RMB

US$ (Note 1)

GAAP income before income tax expense

384,119

Add: Share-based compensation

35,009

29,891

4,691

Add: Loss from foreign currency translation

33,851

10,917

1,713

Add: Change in fair value of listed equity securities investment

9,404

10,715

1,681

Non-GAAP income before income tax expense

462,763

485,615

76,204

GAAP income tax expense

(52,057)

Tax effect of non-GAAP line items

(208)

(7)

(1)

Non-GAAP income tax expense

(52,903)

(83,217)

(13,058)

Non-GAAP adjusted net income

409,860

402,398

63,146

Non-GAAP adjusted net income attributable to 51job,Inc.

420,104

406,671

63,817

Non-GAAP adjusted earnings per share:

Basic

6.23

6.03

0.95

Diluted

6.16

5.99

0.94

Weighted average number of common shares outstanding:

Basic

67,118

For the Year Ended

December 31,except share and per share data)

(unaudited)

(unaudited)

(unaudited)

RMB

RMB

US$ (Note 1)

GAAP income before income tax expense

1,987

Add: Share-based compensation

143,806

149,556

23,469

Add: Loss from foreign currency translation

53,442

15,793

2,478

Add (Less): Change in fair value of listed equity securities

investment

(10,760)

88,296

13,856

Less: Change in fair value of long-term investment

(39,614)

—

—

Non-GAAP income before income tax expense

1,406,719

1,018,274

159,790

GAAP income tax expense

(188,436)

Tax effect of non-GAAP line items

(279)

79

12

Non-GAAP income tax expense

(188,696)

(155,642)

(24,424)

Non-GAAP adjusted net income

1,218,023

862,632

135,366

Non-GAAP adjusted net income attributable to 51job,243,871

894,407

140,352

Non-GAAP adjusted earnings per share:

Basic

18.54

13.26

2.08

Diluted

18.28

13.12

2.06

Weighted average number of common shares outstanding:

Basic

67,891

Note (1): The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of

RMB6.3726 to US$1.00 on December 30,2021 in New York for cable transfers of Renminbi as set forth in the

H.10 weekly statistical release of the Federal Reserve Board.

51job,Inc.

Consolidated Balance Sheets

As of

December 31,except share and per share data)

(unaudited)

(unaudited)

(unaudited)

RMB

RMB

US$ (Note 1)

ASSETS

Current assets:

Cash

3,292,698

10,539,923

1,653,944

Restricted cash

2,258

—

—

Short-term investments

7,469,213

47,116

7,394

Accounts receivable (net of allowance of RMB26,798 and

RMB27,522 as of December 31,respectively)

290,480

382,164

59,970

Prepayments and other current assets

492,980

561,677

88,139

Total current assets

11,547,629

11,530,880

1,809,447

Non-current assets:

Time deposits

719,189

745,450

116,977

Long-term investments

1,576,250

1,474,928

231,448

Property and equipment,net

273,157

755,789

118,600

Goodwill

1,036,124

1,124

162,590

Intangible assets,net

163,503

126,497

19,850

Right-of-use assets

307,869

1,839,143

288,602

Other long-term assets

13,946

14,065

2,207

Deferred tax assets

38,013

52,793

8,284

Total non-current assets

4,128,051

6,044,789

948,558

Total assets

15,675,680

17,575,669

2,758,005

LIABILITIES,MEZZANINE EQUITY AND EQUITY

Current liabilities:

Current portion of long-term bank loan

—

52,500

8,238

Accounts payable

83,087

136,999

21,498

Salary and employee related accrual

182,565

221,890

34,819

Taxes payable

172,254

212,873

33,404

Advances from customers

1,158,604

1,615

182,598

Lease liabilities,current

34,952

42,093

6,605

Other payables and accruals

1,178,955

1,132,921

177,780

Total current liabilities

2,810,417

2,962,891

464,942

Non-current liabilities:

Long-term bank loan

—

997,500

156,530

Lease liabilities,non-current

44,949

37,776

5,928

Deferred tax liabilities

232,087

224,571

35,240

Total non-current liabilities

277,036

1,847

197,698

Total liabilities

3,087,453

4,222,738

662,640

Mezzanine equity:

Redeemable non-controlling interests

189,811

156,880

24,618

Shareholders' equity:

Common shares (US$0.0001 par value: 500,000,000 shares

authorized,67,657 and 67,209 shares issued and

outstanding as of December 31,respectively)

54

54

8

Additional paid-in capital

5,206,154

5,363,570

841,661

Statutory reserves

18,474

18,840

2,956

Accumulated other comprehensive income

276,975

276,560

43,398

Retained earnings

6,871,090

7,511,407

1,704

Total 51job,Inc. shareholders' equity

12,372,747

13,170,431

2,066,727

Non-controlling interests

25,669

25,620

4,020

Total equity

12,398,416

13,196,051

2,070,747

Total liabilities,mezzanine equity and equity

15,005

Note (1): The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.3726

to US$1.00 on December 30,2021 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical

release of the Federal Reserve Board.

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