51job, Inc. (JOBS) experienced a decline of 22.55% in the premarket after the company announces an update on Going-Private Transaction. However, the last trading session closed at $67.14 with a decrease of 0.13%.
Update on Going-Private Transaction
On 8th November 2021, JOBS announced that certain representatives of the buyer consortium that formed Garnet Faith Limited to procure the Company has been consulting with Chinese regulatory agencies on recent regulatory changes in China that may affect the Company and the Proposed Transaction. The buyer consortium members’ consultation process is presently underway, and a specific completion date cannot be disclosed at this time. Subject to the outcome of the consultation process, the Company expects to file an amended Schedule 13E-3 Transaction Statement (containing the Company’s statement) as soon as feasible.
Second Quarter 2021 Financial Results
JOBS announced second-quarter 2021 financial results on 24th September 2021. The net sales were US$170.2 million for the second quarter ended June 30, 2021. Due to improving market circumstances and higher recruiting activity from businesses this year, internet recruitment services revenues climbed 17.4% to RMB590.6 million in the second quarter of 2021, compared to RMB503.3 million in the same quarter of 2020.
While the Company expects its online recruiting business to continue to recover in 2021, the recruitment outlook may be hampered by uncertainties surrounding continuing worldwide. Furthermore, the general and administrative expenditures climbed 14.8% to US$17.6 million in the second quarter of 2021, compared to RMB99.2 million in the same period the previous year. This hints towards the greater employee salaries, share-based remuneration, and professional services fees.
Other human-resource-related revenues climbed 56.2 percent to RMB508.1 million in the second quarter of 2021. Strong demand for training services, campus recruiting drives, placement initiatives, and business process outsourcing services drove the rise this year.
Purchase of New Headquarters Office Building
On 22 July 2021, JOBS announced that it has agreed to buy an office building in Shanghai that would serve as its new corporate headquarters. The structure is part of the Crystal Plaza complex in the Pudong District’s Qiantan neighborhood. The overall floor space is approximately 32,400 square meters, which will allow the Company to continue to grow and expand its company. The acquisition price is expected to be RMB2.07 billion, which will be paid using cash on hand and borrowed financing. In 2022, the company plans to relocate to its new location.