EX-99.1 2 v369376_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Contact:

Rebecca Liu

Investor Relations

51job, Inc.

+(86-21) 6879-6250

ir@51job.com

 

51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

 

SHANGHAI, China, February 20, 2014 – 51job, Inc. (Nasdaq: JOBS), a leading provider of integrated human resource services in China, announced today its unaudited financial results for the fourth quarter and fiscal year of 2013 ended December 31, 2013.

 

Fourth Quarter 2013 Financial Highlights:

 

· Total revenues increased 18.9% over Q4 2012 to RMB472.4 million (US$78.0 million), exceeding the Company’s guidance range
   
· Online recruitment services revenues increased 21.6% over Q4 2012 to RMB289.2 million (US$47.8 million)
   
· Gross margin of 71.3% compared with 70.6% in Q4 2012
   
· Income from operations increased 11.7% over Q4 2012 to RMB133.3 million (US$22.0 million)
   
· Fully diluted earnings per common share were RMB2.57 (US$0.85 per ADS)
   
· Excluding share-based compensation expense and loss from foreign currency translation as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB2.89 (US$0.95 per ADS), exceeding the Company’s guidance range

 

Fiscal Year 2013 Financial Highlights:

 

· Total revenues increased 10.9% over 2012 to RMB1,676,7 million (US$277.0 million)
   
· Gross margin of 72.5% compared with 72.0% in 2012
   
· Operating income increased 0.6% over 2012 to RMB488.6 million (US$80.7 million)
   
· Fully diluted earnings per common share were RMB8.33 (US$2.75 per ADS)
   
· Excluding share-based compensation expense and loss from foreign currency translation as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB9.52 (US$3.15 per ADS)
   
· Cash and short-term investments increased to RMB3,147.5 million (US$519.9 million) as of December 31, 2013

  

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 2

 

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, “We are pleased to close 2013 with record revenues and net income in the fourth quarter. Through successful strategy execution and increased sales and marketing investments, which we expect will generate even greater returns in the future, we accelerated the growth of our online business and significantly expanded our customer base over the past year. We expect to carry solid momentum into 2014 as we focus on efforts to further extend our market leadership in the HR services industry and strengthen our value proposition to employers in China.”

 

Fourth Quarter 2013 Unaudited Financial Results

 

Total revenues for the fourth quarter ended December 31, 2013 were RMB472.4 million (US$78.0 million), an increase of 18.9% from RMB397.3 million for the same quarter in 2012.

 

Online recruitment services revenues for the fourth quarter of 2013 were RMB289.2 million (US$47.8 million), representing a 21.6% increase from RMB237.9 million for the same quarter of the prior year. The growth was principally due to an increase in the number of unique employers using the Company’s online recruitment services, which was partially offset by a decrease in average revenue per unique employer. Unique employers increased 28.6% to 235,940 in the fourth quarter of 2013 compared with 183,446 in the same quarter of the prior year driven by strengthened customer acquisition efforts and increased usage of online recruitment services by employers. However, average revenue per unique employer decreased 5.5% in the fourth quarter of 2013 as compared to the same quarter in 2012 primarily due to the addition of new customers who generally purchase introductory, lower priced services.

 

Print advertising revenues for the fourth quarter of 2013 decreased 53.9% to RMB5.8 million (US$1.0 million) compared with RMB12.7 million for the same quarter in 2012 primarily due to the ongoing business transition away from print advertising services. The estimated number of print advertising pages generated in the fourth quarter of 2013 declined 35.3% to 244 from 377 pages in the same quarter in 2012. In addition, due to the Company’s strategic decision to discontinue certain newspaper editions, the number of cities where 51job Weekly is published decreased to two as of December 31, 2013 compared with seven cities as of December 31, 2012.

 

Other human resource related revenues for the fourth quarter of 2013 increased 20.8% to RMB177.3 million (US$29.3 million) from RMB146.8 million in the same quarter of 2012 primarily due to greater customer adoption and usage of business process outsourcing and training services as well as strong demand for seasonal campus recruitment services.

 

Gross profit for the fourth quarter of 2013 increased 20.3% to RMB323.3 million (US$53.4 million) from RMB268.7 million for the same quarter of the prior year. Gross margin, which is gross profit as a percentage of net revenues, was 71.3% in the fourth quarter of 2013 compared with 70.6% in the same quarter in 2012.

 

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 3

 

Operating expenses for the fourth quarter of 2013 increased 27.2% to RMB190.0 million (US$31.4 million) from RMB149.4 million for the same quarter of 2012. Sales and marketing expenses for the fourth quarter of 2013 increased 31.2% to RMB127.5 million (US$21.1 million) from RMB97.2 million for the same quarter of the prior year primarily due to sales headcount additions, higher employee compensation expenses, and greater spending on advertising and promotional activities. General and administrative expenses for the fourth quarter of 2013 increased 19.7% to RMB62.5 million (US$10.3 million) from RMB52.2 million in the fourth quarter of 2012 primarily due to higher employee compensation expenses, office expenses, professional service fees and depreciation.

 

Income from operations for the fourth quarter of 2013 increased 11.7% to RMB133.3 million (US$22.0 million) from RMB119.4 million for the same quarter of the prior year. Operating margin, which is income from operations as a percentage of net revenues, was 29.4% in the fourth quarter of 2013 compared with 31.4% in the same quarter of 2012. Excluding share-based compensation expense, operating margin would be 33.5% in the fourth quarter of 2013 compared with 35.0% in the same quarter of 2012.

 

Other income in the fourth quarter of 2013 included local government financial subsidies of RMB30.3 million (US$5.0 million). The effective tax rate in the fourth quarter decreased to 14.9% as a result of adjustments to income tax expense for the full year 2013 to reflect actual income tax due.

 

Net income for the fourth quarter of 2013 increased 27.1% to RMB155.3 million (US$25.6 million) from RMB122.1 million for the same quarter in 2012. Fully diluted earnings per common share for the fourth quarter of 2013 were RMB2.57 (US$0.42) compared with RMB2.06 for the same quarter in 2012. Fully diluted earnings per ADS for the fourth quarter of 2013 were RMB5.13 (US$0.85) compared with RMB4.11 in the fourth quarter of 2012.

 

In the fourth quarter of 2013, the Company recognized total share-based compensation expense of RMB18.3 million (US$3.0 million) compared with RMB13.8 million in the fourth quarter of 2012. The Company also recognized a loss from foreign currency translation of RMB1.3 million (US$0.2 million) in the fourth quarter of 2013 compared with RMB1.8 million in the fourth quarter of 2012.

 

Excluding share-based compensation expense, loss from foreign currency translation and gain from sale of long-term investments as well as their related tax impact, non-GAAP adjusted net income for the fourth quarter of 2013 increased 28.3% to RMB174.9 million (US$28.9 million) compared with RMB136.3 million for the fourth quarter of 2012. Non-GAAP adjusted fully diluted earnings per common share were RMB2.89 (US$0.48) in the fourth quarter of 2013 compared with RMB2.30 in the fourth quarter of 2012. Non-GAAP adjusted fully diluted earnings per ADS in the fourth quarter of 2013 were RMB5.78 (US$0.95) compared with RMB4.59 in the fourth quarter of 2012.

 

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 4

 

Fiscal Year 2013 Unaudited Financial Results

 

Total revenues for 2013 were RMB1,676.7 million (US$277.0 million), an increase of 10.9% from RMB1,512.2 million in 2012.

 

Unique employers using the Company’s online recruitment services grew 22.6% to 333,973 in 2013 from 272,322 in 2012. Employers who purchase online services multiple times or in multiple quarters throughout the fiscal year are counted as one unique employer for the annual total. The estimated number of print advertising pages generated in 2013 decreased 45.6% to 1,492 compared with 2,742 estimated pages in 2012.

 

Income from operations for 2013 increased 0.6% to RMB488.6 million (US$80.7 million) from RMB485.5 million in 2012. Net income for 2013 increased 6.5% to RMB500.6 million (US$82.7 million) from RMB470.1 million in 2012. Fully diluted earnings per common share for 2013 were RMB8.33 (US$1.38) compared with RMB7.92 in 2012. Fully diluted earnings per ADS for 2013 were RMB16.67 (US$2.75) compared with RMB15.84 in 2012.

 

Excluding share-based compensation expense, loss from foreign currency translation and gain from sale of long-term investments as well as their related tax impact, non-GAAP adjusted net income for 2013 increased 10.1% to RMB572.0 million (US$94.5 million) from RMB519.8 million in 2012. Non-GAAP adjusted fully diluted earnings per common share were RMB9.52 (US$1.57) for 2013 compared with RMB8.75 in 2012. Non-GAAP adjusted fully diluted earnings per ADS for 2013 were RMB19.05 (US$3.15) compared with RMB17.51 in 2012.

 

As of December 31, 2013, the Company had cash and short-term investments totaling RMB3,147.5 million (US$519.9 million) compared with RMB2,531.4 million as of December 31, 2012. 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 a year-over-year decrease in print advertising revenues as the Company transitions away from this business, the Company’s revenue target for the first quarter of 2014 is in the estimated range of RMB435 million to RMB450 million (US$71.9 million to US$74.3 million). Excluding share-based compensation expense and any loss or gain from foreign currency translation as well as their related tax impact, the Company’s non-GAAP fully diluted earnings target for the first quarter of 2014 is in the estimated range of RMB1.95 to RMB2.15 per common share (US$0.64 to US$0.71 per ADS). The Company expects total share-based compensation expense in the first quarter of 2014 to be approximately RMB19 million to RMB20 million (US$3.1 million to US$3.3 million).

 

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 5

 

Other Company News

 

In the fourth quarter, the Company made a cash payment of RMB148.9 million (US$24.6 million) to complete the purchase of approximately 6,120 square meters of office space in Beijing to house its local sales, customer service and operations staff. The total purchase price for the premises was RMB164.9 million (US$27.2 million) and the transaction was funded from the Company’s existing cash resources.

 

In December 2013, the Company discontinued the publication of 51job Weekly in Chengdu and Harbin but continues to maintain its facilities and all other operations in these cities.

 

Currency Convenience Translation

 

For the convenience of readers, certain Renminbi amounts have been translated into U.S. dollars at the rate of RMB6.0537 to US$1.00, the noon buying rate on December 31, 2013 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

 

Management will hold a conference call at 8:00 p.m. Eastern Time on February 20, 2014 (9:00 a.m. Shanghai / Hong Kong time zone on February 21, 2014) to discuss its fourth quarter and fiscal year 2014 financial results, operating performance and business outlook. To dial in to the call, please use conference ID 4665794 and the following telephone numbers:

 

US: +1-877-941-0844

Hong Kong: +852-3009-5027

International: +1-480-629-9835

 

The call will also be available live and on replay through 51job’s investor relations website, http://ir.51job.com. Please go to the website at least fifteen minutes early to register or install any necessary audio software.

 

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 measures of income before income tax expense, income tax expense, adjusted net income, adjusted earnings per share and adjusted earnings per ADS, which are adjusted from results based on GAAP to exclude share-based compensation expense, loss from foreign currency translation and gain from sale of long-term investments as well as their related tax impact. The Company believes excluding share-based compensation expense and its related tax impact 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 its related tax impact from its non-GAAP financial measures is useful for its management and investors as such translation 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. The Company believes excluding gain from sale of long-term investments and its related tax impact from its non-GAAP financial measures is useful for its management and investors as such gain from sale is unrelated to the Company’s core business operations. 51job also believes these non-GAAP measures excluding share-based compensation expense, loss from foreign currency translation and gain from sale of long-term investments, as well as their related tax impact, 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.

 

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 6

 

About 51job

 

51job, Inc. (Nasdaq: JOBS) is a leading provider of integrated human resource services in China with a strong focus on recruitment related services. Through online recruitment services at http://www.51job.com and print advertisements in 51job Weekly, 51job enables enterprises to attract, identify and recruit employees and connects millions of job seekers with employment opportunities. 51job also provides a number of other value-added human resource services, including business process outsourcing, training, executive search and compensation and benefits analysis. 51job has a call center in Wuhan and a nationwide sales office network spanning 25 cities across China.

 

Safe Harbor Statement

 

Statements in this release regarding targets for the first quarter of 2014, future business and operating results constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon management’s current expectations, and actual results could differ materially. Among the factors that could cause actual results to differ are the number of recruitment advertisements placed, sales orders received and customer contracts executed during the remaining weeks of the first quarter of 2014; any accounting adjustments that may occur during the quarterly close; fluctuations in the value of the Renminbi against the U.S. dollar and other currencies; behavioral and operational changes of customers in meeting their human resource needs as they respond to evolving social, economic, regulatory and political changes in China as well as stock market volatilities; introduction by its competitors of new or enhanced products or services; price competition in the market for the various human resource services that the Company provides in China; acceptance of new products and services developed or introduced by the Company outside of the human resources industry; and fluctuations in general economic conditions. For additional information on these and other factors that may affect the Company’s financial results, please refer to the Company’s filings with the Securities and Exchange Commission. 51job undertakes no obligation to update these targets prior to announcing final results for the first quarter of 2014 or as a result of new information, future events or otherwise.

 

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 7

 

51job, Inc.

Consolidated Statements of Operations and Comprehensive Income

 

    For the Three Months Ended  
    December 31,
2012		     December 31,
2013		     December 31,
2013		  
(In thousands, except share, per share and per ADS data)    (unaudited)     (unaudited)     (unaudited)  
    RMB     RMB     US$ (Note 1)  
                   
Revenues:                        
Online recruitment services     237,861       289,239       47,779  
Print advertising     12,677       5,844       965  
Other human resource related revenues     146,774       177,323       29,292  
Total revenues     397,312       472,406       78,036  
                         
Less: Business and related tax     (16,656 )     (19,252 )     (3,180 )
Net revenues     380,656       453,154       74,856  
                         
Cost of services (Note 2)     (111,908 )     (129,853 )     (21,450 )
                         
Gross profit     268,748       323,301       53,406  
                         
Operating expenses:                        
Sales and marketing (Note 3)     (97,195 )     (127,510 )     (21,063 )
General and administrative (Note 4)     (52,195 )     (62,475 )     (10,320 )
Total operating expenses     (149,390 )     (189,985 )     (31,383 )
                         
Income from operations     119,358       133,316       22,023  
Loss from foreign currency translation     (1,760 )     (1,344 )     (222 )
Interest and investment income     16,186       20,238       3,343  
Other income     13,443       30,132       4,977  
                         
Income before income tax expense     147,227       182,342       30,121  
Income tax expense     (25,104 )     (27,082 )     (4,474 )
                         
Net income     122,123       155,260       25,647  
                         
Other comprehensive income:                        
Foreign currency translation adjustments     23       (66 )     (11 )
                         
Comprehensive income     122,146       155,194       25,636  
                         
Earnings per share:                        
Basic     2.12       2.63       0.43  
Diluted     2.06       2.57       0.42  
                         
Earnings per ADS (Note 5):                        
Basic     4.23       5.26       0.87  
Diluted     4.11       5.13       0.85  
                         
Weighted average number of common shares outstanding:                        
Basic     57,721,227       59,043,449       59,043,449  
Diluted     59,359,096       60,528,878       60,528,878  

__________

 

Notes:

 

1.The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.0537 to US$1.00 on December 31, 2013 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 RMB2,145 and RMB2,929 (US$484) for the three months ended December 31, 2012 and 2013, respectively.
3.Includes share-based compensation expense of RMB1,844 and RMB2,518 (US$416) for the three months ended December 31, 2012 and 2013, respectively.
4.Includes share-based compensation expense of RMB9,774 and RMB12,836 (US$2,120) for the three months ended December 31, 2012 and 2013, respectively.
5.Each ADS represents two common shares.

 

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 8

 

51job, Inc.

Consolidated Statements of Operations and Comprehensive Income

 

   For the Year Ended 
   December 31,
2012		   December 31,
2013		   December 31,
2013		 
(In thousands, except share, per share and per ADS data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
             
Revenues:               
Online recruitment services   943,432    1,084,448    179,138 
Print advertising   105,309    51,023    8,428 
Other human resource related revenues   463,508    541,270    89,412 
Total revenues   1,512,249    1,676,741    276,978 
                
Less: Business and related tax   (64,911)   (68,073)   (11,245)
Net revenues   1,447,338    1,608,668    265,733 
                
Cost of services (Note 2)   (405,233)   (442,454)   (73,088)
                
Gross profit   1,042,105    1,166,214    192,645 
                
Operating expenses:               
Sales and marketing (Note 3)   (370,100)   (459,802)   (75,954)
General and administrative (Note 4)   (186,460)   (217,765)   (35,972)
Total operating expenses   (556,560)   (677,567)   (111,926)
                
Income from operations   485,545    488,647    80,719 
Loss from foreign currency translation   (447)   (6,522)   (1,077)
Interest and investment income   61,653    75,301    12,439 
Other income   18,934    43,522    7,189 
                
Income before income tax expense   565,685    600,948    99,270 
Income tax expense   (95,579)   (100,308)   (16,570)
                
Net income   470,106    500,640    82,700 
                
Other comprehensive income:               
Foreign currency translation adjustments   (9)   (88)   (15)
                
Comprehensive income   470,097    500,552    82,685 
                
Earnings per share:               
Basic   8.17    8.55    1.41 
Diluted   7.92    8.33    1.38 
                
Earnings per ADS (Note 5):               
Basic   16.35    17.10    2.82 
Diluted   15.84    16.67    2.75 
                
Weighted average number of common shares outstanding:               
Basic   57,510,591    58,551,925    58,551,925 
Diluted   59,375,123    60,069,197    60,069,197 
                

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Notes:

 

1.The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.0537 to US$1.00 on December 31, 2013 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 RMB7,870 and RMB10,391 (US$1,716) for 2012 and 2013, respectively.
3.Includes share-based compensation expense of RMB6,766 and RMB8,933 (US$1,476) for 2012 and 2013, respectively.
4.Includes share-based compensation expense of RMB35,902 and RMB45,534 (US$7,522) for 2012 and 2013, respectively.
5.Each ADS represents two common shares.

 

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 9

 

51job, Inc.

Reconciliation of GAAP and Non-GAAP Results

 

   For the Three Months Ended 
   December 31,
2012		   December 31,
2013		   December 31,
2013		 
(In thousands, except share, per share and per ADS data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   USD (Note 1) 
             
GAAP income before income tax expense   147,227    182,342    30,121 
Add back: Share-based compensation expense   13,763    18,283    3,020 
Add back: Loss from foreign currency translation   1,760    1,344    222 
Subtract: Gain from sale of long-term investments   (1,318)   —    — 
Non-GAAP income before income tax expense   161,432    201,969    33,363 
                
GAAP income tax expense   (25,104)   (27,082)   (4,474)
Tax impact of share-based compensation expense, loss from
foreign currency translation and gain from sale of long-term
investments		   (0)   0    0 
Non-GAAP income tax expense   (25,104)   (27,082)   (4,474)
                
Non-GAAP adjusted net income   136,328    174,887    28,889 
                
Non-GAAP adjusted earnings per share:               
Basic   2.36    2.96    0.49 
Diluted   2.30    2.89    0.48 
                
Non-GAAP adjusted earnings per ADS (Note 2):               
Basic   4.72    5.92    0.98 
Diluted   4.59    5.78    0.95 
                
Weighted average number of common shares outstanding:               
Basic   57,721,227    59,043,449    59,043,449 
Diluted   59,359,096    60,528,878    60,528,878 

 

   For the Year Ended 
   December 31,
2012		   December 31,
2013		   December 31,
2013		 
(In thousands, except share, per share and per ADS data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   USD (Note 1) 
             
GAAP income before income tax expense   565,685    600,948    99,270 
Add back: Share-based compensation expense   50,538    64,858    10,714 
Add back: Loss from foreign currency translation   447    6,522    1,077 
Subtract: Gain from sale of long-term investments   (1,318)   —    — 
Non-GAAP income before income tax expense   615,352    672,328    111,061 
                
GAAP income tax expense   (95,579)   (100,308)   (16,570)
Tax impact of share-based compensation expense, loss from
foreign currency translation and gain from sale of long-term
investments		   2    (5)   (1)
Non-GAAP income tax expense   (95,577)   (100,313)   (16,571)
                
Non-GAAP adjusted net income   519,775    572,015    94,490 
                
Non-GAAP adjusted earnings per share:               
Basic   9.04    9.77    1.61 
Diluted   8.75    9.52    1.57 
                
Non-GAAP adjusted earnings per ADS (Note 2):               
Basic   18.08    19.54    3.23 
Diluted   17.51    19.05    3.15 
                
Weighted average number of common shares outstanding:               
Basic   57,510,591    58,551,925    58,551,925 
Diluted   59,375,123    60,069,197    60,069,197 

__________

 

Notes:

 

1.The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.0537 to US$1.00 on December 31, 2013 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.
2.Each ADS represents two common shares.

 

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51job, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

February 20, 2014

Page 10

 

51job, Inc.

Consolidated Balance Sheets

 

   As of 
   December 31,
2012		   December 31,
2013		   December 31,
2013		 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
             
ASSETS               
                
Current assets:               
Cash   1,122,557    1,065,543    176,015 
Restricted cash   14,468    15,489    2,559 
Short-term investments   1,408,845    2,081,964    343,916 
Accounts receivable (net of allowance of RMB3,260 and RMB3,347 as of December 31, 2012 and 2013, respectively)   52,688    62,808    10,375 
Prepayments and other current assets   280,242    345,061    57,000 
Deferred tax assets, current   8,643    9,757    1,612 
                
Total current assets   2,887,443    3,580,622    591,477 
                
Property and equipment, net   280,657    519,277    85,778 
Intangible assets, net   3,919    3,652    603 
Other long-term assets   69,343    18,808    3,107 
Deferred tax assets, non-current   —    632    105 
                
Total non-current assets   353,919    542,369    89,593 
                
Total assets   3,241,362    4,122,991    681,070 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY               
                
Current liabilities:               
Accounts payable   17,146    22,858    3,776 
Salary and employee related accrual   48,450    60,076    9,924 
Taxes payable   65,858    78,100    12,901 
Advance from customers   338,330    411,877    68,037 
Other payables and accruals   103,565    212,978    35,182 
                
Total current liabilities   573,349    785,889    129,820 
                
Deferred tax liabilities, non-current   1,985    5,983    988 
                
Total liabilities   575,334    791,872    130,808 
                
Shareholders’ equity:               
Common shares (US$0.0001 par value; 500,000,000 shares authorized, 57,786,679 and 59,144,055 shares issued and outstanding as of December 31, 2012 and 2013, respectively)   48    48    8 
Additional paid-in capital   1,152,174    1,316,713    217,505 
Statutory reserves   6,944    8,456    1,397 
Accumulated other comprehensive income   1,629    1,541    255 
Retained earnings   1,505,233    2,004,361    331,097 
                
Total shareholders’ equity   2,666,028    3,331,119    550,262 
                
Total liabilities and shareholders’ equity   3,241,362    4,122,991    681,070 

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Note 1:  The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.0537 to US$1.00 on December 31, 2013 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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