FAST NEWS: Tongdao Liepin swings to the red on weak recruiting demand

The latest: Online recruitment platform Tongdao Liepin Group (6100.HK) said Tuesday it recorded a net loss of up to 49 million yuan ($7.1 million) in the first quarter, reversing a 13.2 million yuan net profit in the year-ago period.

Looking up: Hiring demand from corporate clients is still weak due to lingering impact from China’s Covid restrictions. But it is gradually recovering following the lifting of most restrictions last December.

Take Note: Weak recruitment demand resulted in a year-on-year decrease in the company’s advance cash billings last year, affecting revenue that can be recognized this year.

Digging Deeper: Founded in Beijing in 2011 and listed in Hong Kong in 2018, Tongdao Liepin provides a wide range of free and paid talent acquisition services to individuals and companies through its liepin.com website, mobile app and WeChat platform. The company’s revenue dropped by a slight 0.5% year-over-year in 2022, ending years of rapid growth, as China’s strict Covid control measures led many employers to lay off workers and slow their new hiring.

Market Reaction: Tongdao Liepin’s Hong Kong-listed shares rose 1.3% in early trading on Wednesday, but later gave back all of those gains and closed down 0.2% at HK$9.28 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by Jony Ho

To subscribe to Bamboo Works free weekly newsletter, click here