SHANGHAI, China, Aug. 6 /Xinhua-EMWNews/ -- 51job, Inc.

(Nasdaq: JOBS), a leading provider of integrated human resource services in

China, announced today unaudited financial results for the second quarter

of 2008 ended June 30, 2008.






    Second Quarter 2008 Financial Highlights:

    -- Total revenues increased 4.2% over Q2 2007 to RMB218.7 million (US$31.9

       million), impacted by the Sichuan earthquake, change in the public

       holiday calendar and softening market demand for recruitment services

    -- Online revenues increased 17.0% over Q2 2007 to RMB83.3 million

       (US$12.1 million)

    -- Gross margin of 54.9% compared with 57.8% in Q2 2007

    -- Fully diluted earnings per common share were RMB0.34 (US$0.10 per ADS)

    -- Excluding share-based compensation expense and foreign currency

       translation loss, non-GAAP adjusted fully diluted earnings per common

       share were RMB0.58 (US$0.17 per ADS), in line with the Company's

       guidance range of RMB0.53 to RMB0.68

    Commenting on the results, Rick Yan, President and Chief Executive

Officer of 51job, Inc., said, "Revenues for the second quarter were below

expectations as we were impacted by the combination of the devastating

Sichuan earthquake, the loss of the seasonal recruitment peak following the

elimination of the May weeklong holiday and reduced demand for recruitment

services. During the quarter, we began to see sluggish hiring by our

corporate customers amid higher labor costs, challenging conditions for

certain industries including exporters and slower economic growth in China.

We expect recruitment activity in the third quarter will further moderate

as we believe regulations instituted by the government for the Olympic

Games will restrict normal business practices for companies in Beijing and

indirectly affect businesses nationwide. In addition, we expect individuals

will focus more on these once- in-a-lifetime Games in China and less on job

searches during this period."



    "Despite this difficult market environment, we continue to view 2008 as

a year of investment and will remain aggressive in executing our strategic

initiatives of new product development and brand building. We manage our

business for the long term and will not sacrifice future growth for

short-term results. We strongly believe these investments will enable us to

extend our market leadership position in China and position us for higher

growth and profitability when economic conditions improve," said Mr. Yan.



    Second Quarter 2008 Unaudited Financial Results



    Total revenues for the second quarter ended June 30, 2008 were RMB218.7

million (US$31.9 million), an increase of 4.2% from RMB209.9 million for

the same quarter in 2007.



    Print advertising revenues for the second quarter of 2008 decreased

12.7% to RMB93.9 million (US$13.7 million) compared with RMB107.6 million

for the same quarter in 2007. The decrease was primarily the result of

general business disruptions and reduced customer activity resulting from

the Sichuan earthquake in May, the loss of the post-holiday seasonal peak

following the government's elimination of the weeklong May holiday this

year, a decline in customer demand and lower average revenue per page.

Print advertising prices charged in each city were generally unchanged

year-over-year and average revenue per page in the second quarter of 2008

decreased 13.7% over the same quarter in 2007 due to higher revenue

contribution from lower priced cities. The estimated number of print

advertising pages generated in the second quarter of 2008 was 4,263

compared with 4,213 pages in the same quarter in 2007.



    Online recruitment services revenues for the second quarter of 2008

were RMB83.3 million (US$12.1 million), representing a 17.0% growth from

RMB71.2 million for the same quarter of the prior year. The increase was

mainly attributable to the growth in the number of employers using the

Company's online services and higher average revenue per unique employer,

which was partially offset by general business disruptions for many

customers resulting from the Sichuan earthquake and reduced customer

demand. Unique employers using the Company's online recruitment services

increased 11.8% to 64,813 in the second quarter of 2008 compared with

57,975 in the same quarter of the prior year.



    Executive search revenues for the second quarter of 2008 decreased

32.5% to RMB3.2 million (US$0.5 million) from RMB4.7 million for the same

quarter in 2007 due to fewer assignments and candidate placements. For the

second quarter of 2008, other human resource related revenues increased

44.7% to RMB38.4 million (US$5.6 million) from RMB26.5 million in the

second quarter of 2007 due principally to a greater number of customers

using corporate training and human resource outsourcing services.



    Gross profit for the second quarter of 2008 was RMB114.4 million

(US$16.7 million) compared with RMB115.1 million for the same quarter of

the prior year. Gross margin, which is equal to gross profit divided by net

revenues, decreased to 54.9% in the second quarter of 2008 compared with

57.8% in the same quarter in 2007 due primarily to an increase in wages and

labor costs.



    Operating expenses for the second quarter of 2008 increased 16.8% to

RMB84.1 million (US$12.3 million) from RMB72.0 million for the same quarter

of 2007 due primarily to higher sales and marketing expenses. Operating

expenses as a percentage of net revenues was 40.4% for the second quarter

of 2008 compared with 36.2% for the second quarter of 2007. Excluding

share-based compensation expense, operating expenses as a percentage of net

revenues was 37.5% in the second quarter of 2008 compared with 33.3% in the

second quarter of 2007.



    Sales and marketing expenses for the second quarter of 2008 increased

23.6% to RMB52.2 million (US$7.6 million) from RMB42.2 million for the same

quarter of the prior year due to higher labor costs resulting from staff

additions and rising wage levels as well as greater advertising and

promotion expenses.



    General and administrative expenses for the second quarter of 2008 were

RMB31.9 million (US$4.7 million) compared with RMB29.8 million in the

second quarter of 2007 due primarily to higher office expenses, labor costs

and share-based compensation expense, which were partially offset by lower

professional services fees.



    Income from operations for the second quarter of 2008 decreased 29.7%

to RMB30.3 million (US$4.4 million) from RMB43.1 million for the same

quarter of the prior year. The Company's effective tax rate was 36.3% in

the second quarter of 2008 compared with 31.2% in the second quarter of the

prior year due primarily to the increase in the loss from foreign currency

translation resulting from the appreciation of the Renminbi against the

U.S. dollar. Loss from foreign currency translation is not deductible from

taxable income under PRC tax law.



    Net income for the second quarter of 2008 decreased 37.8% to RMB19.3

million (US$2.8 million) from RMB31.0 million for the same quarter in 2007.

Fully diluted earnings per common share for the second quarter of 2008 were

RMB0.34 (US$0.05) compared with RMB0.55 for the same quarter in 2007. Fully

diluted earnings per ADS for the second quarter of 2008 were RMB0.68

(US$0.10) compared with RMB1.10 in the second quarter of 2007.



    In the second quarter of 2008, the Company recognized total share-based

compensation expense of RMB7.2 million (US$1.0 million) compared with

RMB6.8 million in the second quarter of 2007. The Company also recognized a

foreign currency translation loss of RMB6.6 million (US$1.0 million) in the

second quarter of 2008 compared with a translation loss of RMB4.3 million

in the second quarter of 2007 resulting from the appreciation of the

Renminbi against the U.S. dollar.



    Excluding share-based compensation expense and foreign currency

translation loss which had no impact on the Company's cash earnings,

non-GAAP adjusted net income for the second quarter of 2008 decreased 21.5%

to RMB33.1 million (US$4.8 million) from RMB42.1 million for the second

quarter of 2007. Non-GAAP adjusted fully diluted earnings per common share

were RMB0.58 (US$0.08) in the second quarter of 2008 compared with RMB0.74

in the second quarter of 2007. Non-GAAP adjusted fully diluted earnings per

ADS in the second quarter of 2008 were RMB1.17 (US$0.17) compared with

RMB1.49 in the second quarter of 2007.



    Six Months 2008 Unaudited Financial Results



    Total revenues for the six months ended June 30, 2008 were RMB455.2

million (US$66.4 million), an increase of 10.9% from RMB410.4 million in

the comparable period in 2007. Income from operations for the six months

ended June 30, 2008 decreased 18.9% to RMB68.8 million (US$10.0 million)

from RMB84.9 million for the same period last year.



    Net income for the first half of 2008 decreased 34.2% to RMB41.6

million (US$6.1 million) from RMB63.2 million for the same period in 2007.

Fully diluted earnings per common share for the first half of 2008 was

RMB0.73 (US$0.11) from RMB1.12 in the comparable period in 2007. Fully

diluted earnings per ADS for the first half of 2008 were RMB1.47 (US$0.21)

compared with RMB2.23 in the same period in 2007.



    Excluding share-based compensation and foreign currency translation

loss, non-GAAP adjusted net income for the six months ended June 30, 2008

decreased 14.9% to RMB71.9 million (US$10.5 million) from RMB84.4 million

for the six months ended June 30, 2007. Non-GAAP adjusted fully diluted

earnings per common share were RMB1.27 (US$0.19) in first half of 2008

compared with RMB1.49 in the same period in 2007. Non-GAAP adjusted fully

diluted earnings per ADS in the first half of 2008 were RMB2.53 (US$0.37)

compared with RMB2.98 in the same period in 2007.



    As of June 30, 2008, the Company had cash and short-term investments

totaling RMB1.041 billion (US$151.7 million) compared with RMB1.008 billion

at December 31, 2007 and RMB1.023 billion at March 31, 2008.



    Business Outlook



    The Company expects that the Olympic Games in Beijing will negatively

impact customer demand and recruitment behavior in China in the third

quarter as government regulations restrict normal business practices for

companies in Beijing and, to a lesser extent, businesses nationwide. In

addition, the Company expects high public interest in the Olympic Games

will reduce job searching activity by individuals during this period. For

the third quarter of 2008, based on current market and operating

conditions, the Company's revenue target is in the estimated range of

RMB205 million to RMB215 million (US$29.9 million to US$31.3 million).

Excluding share-based compensation expense and any foreign currency

translation losses or gains, the Company's non-GAAP fully diluted earnings

target for the third quarter of 2008 is in the estimated range of RMB0.38

to RMB0.48 per common share (US$0.11 to US$0.14 per ADS). The Company

expects aggregate share-based compensation expense in the third quarter of

2008 to be approximately RMB7 million to RMB8 million (US$1.0 million to

US$1.2 million).



    Other Company News



    In July, the Company changed its newspaper contractor in Tianjin to

Tianjin Education News. There was no interruption in the printing and

distribution of 51job Weekly during the transition.



    Currency Convenience Translation



    For the convenience of readers, certain Renminbi amounts have been

translated into U.S. dollars at the rate of RMB6.8591 to US$1.00, the noon

buying rate in the City of New York for cable transfers of Renminbi per

U.S. dollar as certified for customs purposes by the Federal Reserve Bank

of New York, as of June 30, 2008.



    Conference Call Information



    Management of 51job will host a conference call at 9:00 p.m. Eastern

Time on August 6, 2008 (9:00 a.m. Shanghai / Hong Kong time zone on August

7, 2008) to discuss second quarter 2008 results. The call will 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 and download and install any necessary audio software.

Participants may also dial into the teleconference at +1-800-238-9007

(+1-719-457-2552 for international callers) and provide the passcode

3267347. An audio replay of the conference call will be available three

hours after completion through August 13, 2008, by dialing +1-888-203-1112

(+1-719-457-0820 for international callers) and entering the passcode

3267347.



    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 adjusted net income, adjusted

earnings per common share and adjusted earnings per ADS, which are adjusted

from results based on GAAP to exclude the impact of share-based

compensation expense and foreign currency translation gain or loss. The

Company believes excluding stock-based compensation expense 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 foreign currency translation gain or loss from its

non-GAAP financial measures is useful for its management and investors as

such translation gain or loss is unrelated to the Company's core business

operations and will not result in cash settlement nor impact the Company's

cash earnings. 51job also believes these non-GAAP measures excluding

share-based compensation expense and foreign currency translation gain or

loss 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.

    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. Offering a broad array of products and services, 51job connects

millions of job seekers with employment opportunities and streamlines the

recruitment process and human resource administration for tens of thousands

of companies in China. Through print advertisements in 51job Weekly and

online recruitment services at http://www.51job.com, both domestic Chinese

employers and multinational companies alike are able to attract, identify

and recruit new employees. 51job also provides executive search services

and a number of other value- added human resource services, including

training, business process outsourcing and salary surveys. 51job's

nationwide office network in China spans 26 cities operating 23 local

editions of 51job Weekly.



    Safe Harbor Statement



    Statements in this release regarding targets for the third quarter of

2008, 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 third quarter of 2008; 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 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 third

quarter of 2008 or as a result of new information, future events or

otherwise.






                       -- Financial tables to follow --







                                 51job, Inc.

                    Consolidated Statements of Operations



                                               For the Three Months Ended

                                            June 30,   June 30,    June 30,

                                              2007       2008        2008

    (In thousands, except number of shares

     and per share data)                   (unaudited)(unaudited) (unaudited)

                                               RMB        RMB         USD

                                                                    (Note 1)



    Revenues:

        Print advertising                     107,569     93,946      13,696

        Online recruitment services            71,203     83,287      12,143

        Executive search                        4,676      3,158         460

        Other human resource related

         revenues                              26,497     38,354       5,592

    Total revenues                            209,945    218,745      31,891



    Less: Business and related tax            (10,775)   (10,476)     (1,527)

    Net revenues                              199,170    208,269      30,364



    Cost of services (Note 2)                 (84,076)   (93,867)    (13,685)



    Gross profit                              115,094    114,402      16,679



    Operating expenses:

        Sales and marketing (Note 3)          (42,232)   (52,208)     (7,611)

        General and administrative (Note 4)   (29,804)   (31,927)     (4,655)

    Total operating expenses                  (72,036)   (84,135)    (12,266)



    Income from operations                     43,058     30,267       4,413

    Loss from foreign currency translation     (4,270)    (6,564)       (957)

    Interest and investment income              5,946      6,811         993

    Other income (expense)                        392       (220)        (32)



    Income before provision for income tax     45,126     30,294       4,417

    Income tax expense                        (14,095)   (10,984)     (1,602)



    Net income                                 31,031     19,310       2,815



    Earnings per share:

        Basic                                    0.55       0.34        0.05

        Diluted                                  0.55       0.34        0.05



    Earnings per ADS (Note 5):

        Basic                                    1.10       0.68        0.10

        Diluted                                  1.10       0.68        0.10



    Weighted average number of common

     shares outstanding:

        Basic                              56,206,580 56,576,628  56,576,628

        Diluted                            56,613,893 56,747,286  56,747,286



    Notes:

    1. The conversion of RMB amounts into USD amounts is based on the noon

       buying rate of USD1.00=RMB6.8591 on June 30, 2008 in The City of New

       York for cable transfers of RMB as certified for customs purposes by

       the Federal Reserve Bank of New York.

    2. Includes share-based compensation expense of RMB1,168 and RMB1,153

       (US$168) for the three months ended June 30, 2007 and 2008,

       respectively.

    3. Includes share-based compensation expense of RMB1,005 and RMB992

       (US$145) for the three months ended June 30, 2007 and 2008,

       respectively.

    4. Includes share-based compensation expense of RMB4,648 and RMB5,053

       (US$737) for the three months ended June 30, 2007 and 2008,

       respectively.

    5. Each ADS represents two common shares.







                                 51job, Inc.

                    Consolidated Statements of Operations



                                                For the Six Months Ended

                                            June 30,   June 30,    June 30,

                                              2007       2008        2008

    (In thousands, except number of shares

     and per share data)                   (unaudited)(unaudited) (unaudited)

                                               RMB        RMB         USD

                                                                    (Note 1)



    Revenues:

        Print advertising                     221,126    216,372      31,545

        Online recruitment services           132,788    161,717      23,577

        Executive search                        8,528      8,655       1,262

        Other human resource related

         revenues                              47,988     68,439       9,978

    Total revenues                            410,430    455,183      66,362



    Less: Business and related tax            (21,878)   (22,816)     (3,326)

    Net revenues                              388,552    432,367      63,036



    Cost of services (Note 2)                (168,926)  (193,163)    (28,162)



    Gross profit                              219,626    239,204      34,874



    Operating expenses:

        Sales and marketing (Note 3)          (76,008)  (107,599)    (15,687)

        General and administrative (Note 4)   (58,719)   (62,766)     (9,151)

    Total operating expenses                 (134,727)  (170,365)    (24,838)



    Income from operations                     84,899     68,839      10,036

    Loss from foreign currency translation     (7,037)   (16,836)     (2,455)

    Interest and investment income             11,396     13,056       1,904

    Other income (expense)                        370        (49)         (7)



    Income before provision for income tax     89,628     65,010       9,478

    Income tax expense                        (26,442)   (23,451)     (3,419)



    Net income                                 63,186     41,559       6,059



    Earnings per share:

        Basic                                    1.12       0.73        0.11

        Diluted                                  1.12       0.73        0.11



    Earnings per ADS (Note 5):

        Basic                                    2.25       1.47        0.21

        Diluted                                  2.23       1.47        0.21



    Weighted average number of common

     shares outstanding:

        Basic                              56,175,178 56,549,376  56,549,376

        Diluted                            56,583,148 56,724,423  56,724,423



    Notes:

    1. The conversion of RMB amounts into USD amounts is based on the noon

       buying rate of USD1.00=RMB6.8591 on June 30, 2008 in The City of New

       York for cable transfers of RMB as certified for customs purposes by

       the Federal Reserve Bank of New York.

    2. Includes share-based compensation expense of RMB2,352 and RMB2,162

       (US$315) for the six months ended June 30, 2007 and 2008, respectively.

    3. Includes share-based compensation expense of RMB2,022 and RMB1,860

       (US$271) for the six months ended June 30, 2007 and 2008, respectively.

    4. Includes share-based compensation expense of RMB9,835 and RMB9,475

       (US$1,381) for the six months ended June 30, 2007 and 2008,

       respectively.

    5. Each ADS represents two common shares.







                                 51job, Inc.

                 Reconciliation of GAAP and Non-GAAP Results



                                               For the Three Months Ended

                                            June 30,   June 30,    June 30,

                                              2007       2008        2008

    (In thousands, except number of shares

     and per share data)                   (unaudited)(unaudited) (unaudited)

                                               RMB        RMB         USD

                                                                    (Note 1)



    GAAP income before provision for income

     tax                                       45,126     30,294       4,417

    Add back: Share-based compensation

     expense                                    6,821      7,198       1,050

    Add back: Loss from foreign currency

     translation                                4,270      6,564         957

    Non-GAAP income before provision for

     income tax                                56,217     44,056       6,424

    Non-GAAP income tax expense               (14,100)   (10,992)     (1,603)

    Non-GAAP adjusted net income               42,117     33,064       4,821



    Non-GAAP adjusted earnings per share:

        Basic                                    0.75       0.58        0.08

        Diluted                                  0.74       0.58        0.08



    Non-GAAP adjusted earnings per ADS

     (Note 2):

        Basic                                    1.50       1.17        0.17

        Diluted                                  1.49       1.17        0.17



    Weighted average number of common

     shares outstanding:

        Basic                              56,206,580 56,576,628  56,576,628

        Diluted                            56,613,893 56,747,286  56,747,286









                                                For the Six Months Ended

                                            June 30,   June 30,    June 30,

                                              2007       2008        2008

    (In thousands, except number of shares

     and per share data)                   (unaudited)(unaudited) (unaudited)

                                               RMB        RMB         USD

                                                                    (Note 1)



    GAAP income before provision for income

     tax                                       89,628     65,010       9,478

    Add back: Share-based compensation

     expense                                   14,209     13,497       1,967

    Add back: Loss from foreign currency

     translation                                7,037     16,836       2,455

    Non-GAAP income before provision for

     income tax                               110,874     95,343      13,900

    Non-GAAP income tax expense               (26,449)   (23,464)     (3,421)

    Non-GAAP adjusted net income               84,425     71,879      10,479



    Non-GAAP adjusted earnings per share:

        Basic                                    1.50       1.27        0.19

        Diluted                                  1.49       1.27        0.19



    Non-GAAP adjusted earnings per ADS

     (Note 2):

        Basic                                    3.01       2.54        0.37

        Diluted                                  2.98       2.53        0.37



    Weighted average number of common

     shares outstanding:

        Basic                              56,175,178 56,549,376  56,549,376

        Diluted                            56,583,148 56,724,423  56,724,423



    Notes:

    1. The conversion of RMB amounts into USD amounts is based on the noon

       buying rate of USD1.00=RMB6.8591 on June 30, 2008 in The City of New

       York for cable transfers of RMB as certified for customs purposes by

       the Federal Reserve Bank of New York.

    2. Each ADS represents two common shares.







                                 51job, Inc.

                         Consolidated Balance Sheets



                                         December 31,  June 30,    June 30,

                                             2007        2008        2008

    (In thousands, except number of

     shares)                              (audited)  (unaudited) (unaudited)

                                             RMB         RMB         USD

                                                                   (Note 1)

    ASSETS



    Current assets:

        Cash                               1,007,520     865,046     126,116

        Short-term investments                    --     175,600      25,601

        Accounts receivable (net of

         allowance of RMB3,879 and

         RMB3,823 as of December 31,

         2007 and June 30, 2008,

         respectively)                        29,706      29,444       4,293

        Prepayments and other current

         assets                               33,132      60,915       8,881

        Deferred tax assets, current           4,930       4,087         596



    Total current assets                   1,075,288   1,135,092     165,487



    Long-term investments                      8,788       7,983       1,164

    Property and equipment                   205,984     206,354      30,085

    Intangible assets                          6,869       5,718         834

    Other long-term assets                     5,031       5,175         754

    Deferred tax assets, non-current           1,206       1,160         169



    Total assets                           1,303,166   1,361,482     198,493



    LIABILITIES



    Current liabilities:

        Accounts payable                       9,804      13,846       2,019

        Salary and employee related

         accrual                              29,064      18,850       2,748

        Taxes payable                         33,498      21,762       3,173

        Advance from customers                75,535      98,095      14,301

        Other payables and accruals           28,214      24,141       3,520



    Total current liabilities                176,115     176,694      25,761



    Deferred tax liabilities, non-current        516         682          99



    Total liabilities                        176,631     177,376      25,860



    Shareholders' equity:

        Common shares (US$0.0001 par

         value; 500,000,000 shares

         authorized, 56,519,471 and

         56,641,283 shares issued and

         outstanding as of December 31,

         2007 and June 30, 2008,

         respectively)                            47          47           7

        Additional paid-in capital           894,019     909,636     132,617

        Statutory reserves                     5,991       5,991         874

        Other comprehensive gain                 680       1,075         157

        Retained earnings                    225,798     267,357      38,978



    Total shareholders' equity             1,126,535   1,184,106     172,633



    Total liabilities and shareholders'

     equity                                1,303,166   1,361,482     198,493



    Note 1: The conversion of RMB amounts into USD amounts is based on the

            noon buying rate of USD1.00=RMB6.8591 on June 30, 2008 in The City

            of New York for cable transfers of RMB as certified for customs

            purposes by the Federal Reserve Bank of New York.







    For more information, please contact:



     Linda Chien

     Investor Relations

     51job, Inc.

     Tel:   +86-21-6879-6250

     Email: [email protected]