Release Date: March 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tongdao Liepin Group (TGDLF, Financial) achieved a total revenue of RMB2.08 billion for the full year, outperforming initial guidance despite an 8.8% year-on-year decrease.
- The company's profitability improved significantly, with adjusted operating profits reaching RMB229 million, a year-on-year increase of 64.9%.
- The BHC ecosystem experienced sustained growth, with the number of verified enterprise users increasing by 10.4% year-on-year.
- AI-driven strategies and cost reduction measures led to a marked improvement in profitability, with adjusted net profit attributable to shareholders increasing by 61.1% year-on-year.
- The company maintained a strong cash position with total cash reserves of around 2.8 billion yuan, providing a solid foundation for future operations and product development.
Negative Points
- The overall revenue for the fourth quarter decreased by 10.6% year-on-year, reflecting ongoing challenges in the recruitment market.
- Revenue from talent recruitment and other human resource services to business customers decreased by 12.9% year-on-year.
- The mid to high-end recruitment market has not fully recovered, impacting revenue generation.
- Despite improvements, the gross profit for the full year decreased by 6.7% year-on-year.
- The company faced pressures in the capital market due to the overall market environment and adjustments in the shareholder structure.
Q & A Highlights
Q: How should we think about the recruitment sector after the Chinese New Year, and what is the outlook for 2025?
A: As a cyclical industry, mid to high-end recruitment largely depends on the macroeconomic trajectory. In 2024, new job postings on our platform declined, but incremental policies introduced at the end of last year have stabilized postings at the start of this year. Recruitment demand in IoT and AI sectors has grown significantly, while traditional industries like consumer goods have not shown clear recovery signs. We remain cautiously optimistic about the recovery of the mid to high-end recruitment market in 2025.
Q: Can you provide details on how the upcoming AI version app will empower existing business models and its impact on future revenue growth and cost structures?
A: Our AI-powered recruitment product addresses long-standing issues in corporate recruitment, enhancing efficiency through intelligent algorithms. Customers have shown high acceptance, indicating our products meet their demands for efficient and cost-effective recruitment tools. The efficiency and accuracy of AI recruitment products will help attract new customers and enhance retention, driving renewals and upselling. As usage scales up, the marginal cost will decrease, potentially stabilizing and increasing our gross margin.
Q: What is the current business model for Doris, and what progress has been made in optimizing its AI models?
A: Doris, our innovative talent assessment system, has been upgraded to version 5.0, featuring enhanced capabilities for smarter interviews. It serves various groups, including white, blue, and red-collar workers, through AI interviews and assessments. Since its launch, Doris has served over 10,500 clients, and we expect revenue to reach tens of millions of yuan in 2025. We are expanding into integrated hardware and software services for government and universities.
Q: How did the company perform financially in 2024, and what are the expectations for 2025?
A: In 2024, the company achieved a total revenue of RMB2.08 billion, an 8.8% year-on-year decrease, but outperformed initial guidance. Adjusted operating profits reached RMB229 million, a 64.9% increase. For 2025, with macro policy support and rising talent demand in emerging industries, we expect industry recovery. We will focus on profit and cash flow improvement, and have announced a special dividend, reflecting confidence in future developments.
Q: What are the company's strategies for cost control and efficiency improvement?
A: In 2024, we focused on cost cutting and efficiency enhancements, reducing total operating expenses by 16.1% year-on-year. Sales and marketing expenses decreased significantly, and we do not plan to increase marketing expenses this year. R&D expenses are expected to have optimization potential in 2025, supported by AI tech empowerment and organizational upgrades. We anticipate a slight reduction in GNA expenses in 2025, maintaining a balance between revenue generation and cost control.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
