FAST NEWS: Tongdao Liepin’s revenue dips on lower hiring

The Latest: Online recruitment platform Tongdao Liepin Group (6100.HK) on Friday announced its revenue decreased 6.4% year-on-year to 471 million yuan ($66 million) in this year’s first quarter, while its net loss narrowed 72.7% to 13.2 million yuan.

Looking Up: The company’s number of verified business users reached 1.33 million during the period, up 12.9% year-on-year, as its platform and services attracted more employers.

Take Note: Average revenue per user for its business customers declined due to softening demand from recruiters, leading to an 11.2% dip in revenue from its business customers to 401 million yuan.

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-matching services to individuals and enterprises through its liepin.com website, its mobile app and WeChat platform. It also provides outsourced recruitment, assessment and training services to companies. It managed to maintain revenue growth during the pandemic, but its momentum slowed last year as the Chinese recruitment market weakened with the nation’s slowing economy.

Market Reaction: Tongdao Liepin shares fell on Monday, closing down 3.8% to HK$2.79 by the midday break. The stock now trades near the lower end of its 52-week range.

Translation by A. Au

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