Ding Fan2022-12-22 10:12:46
News from DoNews on December 22 Today, BOSS Zhipin, a technology company in the field of human resources, officially completed its dual primary listing on the main board of the Hong Kong Stock Exchange by way of introduction, and Class A ordinary shares began trading on the Hong Kong Stock Exchange with the stock code “2076”. Morgan Stanley and Goldman Sachs acted as joint sponsors for this listing, Goldman Sachs Securities was the designated dealer, and Haitong International Securities Co., Ltd. was the alternate designated dealer.
After the completion of the dual primary listing, BOSS Zhipin became a company listed on the Nasdaq Exchange and the Hong Kong Stock Exchange at the same time. Among them, each American depositary share (ADS) represents two Class A ordinary shares. Class A ordinary shares listed on the main board of the Hong Kong Stock Exchange are convertible between American depositary shares listed on the NASDAQ exchange.
Zhao Peng, the founder, chairman and CEO of BOSS, said: “Hong Kong is an international financial center and a mature capital market connected to the mainland. In the future, we hope to follow the rules of the Hong Kong stock market to grow together with shareholders and share the dividends of growth together. “
Zhao Peng said, “So far, we have served one-sixth of China’s 600 million non-agricultural labor force and one-sixth of more than 40 million enterprises. There is still a lot to offer in terms of service coverage, service depth, and service experience. Great room for growth. We will abide by our duty and create value for users, employees, and investors, and in the final analysis, create value for society and the times.”
Returning to Hong Kong for listing has become a trend of technology companies, and the online recruitment market is expected to achieve rapid growth
In the past two years, returning to Hong Kong to complete the dual primary listing has become the main development trend of Chinese technology companies. Enterprises that have completed or are in progress include Alibaba, Keike, Bilibili, Weilai, Xiaopeng Motors, Tencent Music, etc. Among them, companies such as Shell, Weilai, and Tencent Music have achieved dual primary listings in Hong Kong through introductions.
An introductory listing does not involve new share issuance or capital raising, nor does it involve dilution of shares. BOSS Zhipin said that the company has sufficient cash reserves and good cash flow, and completed the listing on the Hong Kong Stock Exchange by way of introduction.
It is generally believed in the industry that on this basis, the main listing in multiple places can reduce the risk of listing in a single place, help to enrich the investor structure, accelerate the sharing of development achievements with mainland investors, and improve the liquidity and transaction convenience of mainland investors .
In addition to the trend of Chinese technology companies, the potential of the human resources service market where BOSS direct employment is located has also attracted market attention. According to the CIC report, the scale of China’s human resource service market in terms of revenue will reach approximately RMB 660 billion in 2021 and is expected to exceed RMB 1.4 trillion in 2026, with a CAGR of 16.4% during the period. As the fastest growing market segment in the field of human resources, the size of China’s recruitment service market in terms of revenue will reach about 200 billion yuan in 2021 and is expected to exceed 470 billion yuan in 2026, with a compound annual growth rate of 18.7% during the period.
Among them, China’s online recruitment market is expected to achieve faster growth. The scale will reach 71.4 billion yuan in 2021 in terms of revenue, and it is expected to increase to 250.8 billion yuan in 2026, with a compound annual growth rate of 28.6% during the period. During the same period, the contribution of online recruitment to the recruitment service market is expected to increase from 35.3% in 2021 to 52.6% in 2026.
Compared with developed markets such as the United States, China’s online recruitment market is still in its early stages of development. According to the CIC report, the online recruitment penetration rate of Chinese job seekers will be about 20.3% in 2021, which is about half of that in the US market, showing great growth potential.
Serving 113.2 million job seekers, technology investment drives user stickiness growth
Relying on mobile one-to-one chat and algorithm intelligent recommendation technology, BOSS Zhipin has changed the resume-centered search mode of traditional online recruitment services, alleviated the pain points of poor matching between talents and positions, and low recruitment and job search efficiency, and thus gained more Multiple user options.
According to the prospectus, as of September 30, 2022, BOSS directly hired 113.2 million certified job seekers and 9.6 million certified companies. For the six months ended June 30, 2022, the platform generated an average of 3 billion chat messages per month, which is equivalent to 1,100 chat messages that may generate job opportunities every second.
The active user ecology benefits from BOSS Zhipin’s continuous investment in technology. In the first three quarters of 2022, BOSS directly hired research and development expenses to reach 889 million yuan, which continued to grow year-on-year. In 2020 and 2021, research and development expenses will be 513 million yuan and 822 million yuan respectively, with a year-on-year growth rate of 58% and 60%. As of June 30, 2022, BOSS has directly hired nearly 1,400 R&D personnel.
The technology upgrade provides strong support for the improvement of platform user experience. For the six months ended June 30, 2022, the “average undesired conversion rate”, an indicator to measure the efficiency of job seekers, reached 69%, which means that for every 10 job seekers who reached initial intentions with recruiters, there are 7 recruiters From system recommendation. The indicator “effective conversion rate” to measure the efficiency of recruiters is 40%. This means that for every 10 job seekers recommended by the system to the recruiter, the recruiter will chat with 4 of them.
With the continuous improvement of user experience, the stickiness and retention of BOSS directly hired users have been further enhanced. In the third quarter of 2022, the average monthly active users (MAU) of the BOSS Direct Employment APP reached 32.4 million; in the first half of 2022, the average daily active users (DAU) of the platform APP accounted for 27.8% of the average monthly active users, leading the industry. The 360-day average active user retention rate of BOSS Zhipin will rise to 22% in the first half of 2022, which is higher than the industry average of 10% in the same period.
With the development of key marketing activities such as sponsoring the World Cup in Qatar, BOSS Zhipin will further strengthen the coverage of wider users and regions. Brokerage firms such as Goldman Sachs, CICC, and CITIC are all optimistic about the impact of the launch of the World Cup on user growth. CITIC Securities believes that this will build up strength for the peak season of spring recruitment in 2023.
Profitable for 6 consecutive quarters, many institutions give “buy” and “overweight” ratings
The continuous growth of users has become the basis for the growth of BOSS direct employment revenue. According to the prospectus, in the first three quarters of 2022, BOSS Zhipin achieved revenue of 3.429 billion yuan and cash flow from operating activities of 847 million yuan. In 2020 and 2021, BOSS direct employment income will be 1.944 billion yuan and 4.259 billion yuan respectively, with year-on-year growth rates of 95% and 119% respectively.
It is worth noting that as the talent-first strategy has become an industry consensus, more and more companies have increased their investment in recruitment. In the 12 months ended June 30, 2022, BOSS directly engaged 3.8 million paying corporate customers.
Under non-GAAP, excluding equity incentive expenses, BOSS Zhipin will obtain an adjusted net profit of 853 million yuan in 2021; in the first three quarters of 2022, this indicator will reach 740 million yuan, and BOSS Zhipin has achieved 6 consecutive quarters since its listing Profitable at the adjusted net profit level, demonstrating a stable operating level and profitability.
After the release of the latest financial report, Goldman Sachs, Huaxing, CITIC and other brokerages gave BOSS Zhipin a “buy” or “overweight” rating. Among them, Goldman Sachs believes that “it is expected that with the improvement of the prospect of recruitment demand in 2023, the recruitment demand of small and medium-sized enterprises will rebound faster, and the income and free cash flow of BOSS direct employment will rebound at an accelerated rate in 2023.” CITIC Securities believes that “BOSS direct employment will maintain a high profit. The growth of C-end users is strong, and we are optimistic about the medium and long-term growth potential driven by product and efficiency advantages.”