Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information | ' |
Entity Registrant Name | '51JOB, INC. |
Entity Central Index Key | '0001295484 |
Document Type | '20-F |
Document Period End Date | 31-Dec-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Accelerated Filer |
Trading Symbol | 'JOBS |
Entity Common Stock, Shares Outstanding | 59,144,055 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
USD ($) | CNY | CNY | CNY | |||||
Revenues: | ' | ' | ' | ' | ||||
Online recruitment services | $179,138 | 1,084,448 | 943,432 | 803,004 | ||||
Print advertising | 8,428 | 51,023 | 105,309 | 208,365 | ||||
Other human resource related revenues | 89,412 | 541,270 | 463,508 | 358,730 | ||||
Total revenues | 276,978 | 1,676,741 | 1,512,249 | 1,370,099 | ||||
Less: Business and related taxes | -11,245 | -68,073 | -64,911 | -70,421 | ||||
Net revenues | 265,733 | 1,608,668 | 1,447,338 | 1,299,678 | ||||
Cost of services(1) | -73,088 | [1] | -442,454 | [1] | -405,233 | [1] | -370,661 | [1] |
Gross profit | 192,645 | 1,166,214 | 1,042,105 | 929,017 | ||||
Operating expenses(1): | ' | ' | ' | ' | ||||
Sales and marketing | -75,954 | [1] | -459,802 | [1] | -370,100 | [1] | -329,466 | [1] |
General and administrative | -35,972 | [1] | -217,765 | [1] | -186,460 | [1] | -158,355 | [1] |
Total operating expenses | -111,926 | -677,567 | -556,560 | -487,821 | ||||
Income from operations | 80,719 | 488,647 | 485,545 | 441,196 | ||||
Loss from foreign currency translation | -1,077 | -6,522 | -447 | -9,363 | ||||
Loss from impairment of long-term investments | ' | ' | ' | -15,081 | ||||
Interest and investment income | 12,439 | 75,301 | 61,653 | 42,033 | ||||
Other income | 7,189 | 43,522 | 18,934 | 8,779 | ||||
Income before income tax expense | 99,270 | 600,948 | 565,685 | 467,564 | ||||
Income tax expense | -16,570 | -100,308 | -95,579 | -81,056 | ||||
Net income | 82,700 | 500,640 | 470,106 | 386,508 | ||||
Other comprehensive income: | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | -15 | -88 | -9 | 325 | ||||
Comprehensive income | $82,685 | 500,552 | 470,097 | 386,833 | ||||
Earnings per share: | ' | ' | ' | ' | ||||
- Basic (in CNY and dollars per share) | $1.41 | 8.55 | 8.17 | 6.81 | ||||
- Diluted (in CNY and dollars per share) | $1.38 | 8.33 | 7.92 | 6.54 | ||||
Earnings per ADS(2): | ' | ' | ' | ' | ||||
- Basic (in CNY and dollars per share) | $2.82 | [2] | 17.1 | [2] | 16.35 | [2] | 13.62 | [2] |
- Diluted (in CNY and dollars per share) | $2.75 | [2] | 16.67 | [2] | 15.84 | [2] | 13.09 | [2] |
Weighted average number of shares outstanding: | ' | ' | ' | ' | ||||
- Basic (in shares) | 58,551,925 | 58,551,925 | 57,510,591 | 56,754,240 | ||||
- Diluted (in shares) | 60,069,197 | 60,069,197 | 59,375,123 | 59,067,424 | ||||
[1] | Share-based compensation: Included in cost of services (6,084) (7,870) (10,391) (1,716) Included in operating expenses - Sales and marketing (5,230) (6,766) (8,933) (1,476) - General and administrative (26,660) (35,902) (45,534) (7,522) | |||||||
[2] | Each ADS represents two common shares. |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | Included in cost of services | Included in cost of services | Included in cost of services | Included in cost of services | Included in operating expenses - Sales and marketing | Included in operating expenses - Sales and marketing | Included in operating expenses - Sales and marketing | Included in operating expenses - Sales and marketing | Included in operating expenses - General and administrative | Included in operating expenses - General and administrative | Included in operating expenses - General and administrative | Included in operating expenses - General and administrative | |
USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | |||||
Share-based compensation | ($10,714) | -64,858 | -50,538 | -37,974 | ($1,716) | -10,391 | -7,870 | -6,084 | ($1,476) | -8,933 | -6,766 | -5,230 | ($7,522) | -45,534 | -35,902 | -26,660 |
Number of common shares represented by each ADS | 2 | 2 | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
Current assets: | ' | ' | ' |
Cash | $176,015 | 1,065,543 | 1,122,557 |
Restricted cash | 2,559 | 15,489 | 14,468 |
Short-term investments | 343,916 | 2,081,964 | 1,408,845 |
Accounts receivable (net of allowance for doubtful accounts of RMB3,260 and RMB3,347 as of December 31, 2012 and 2013, respectively) | 10,375 | 62,808 | 52,688 |
Prepayments and other current assets | 57,000 | 345,061 | 280,242 |
Deferred tax assets, current | 1,612 | 9,757 | 8,643 |
Total current assets | 591,477 | 3,580,622 | 2,887,443 |
Non-current assets: | ' | ' | ' |
Property and equipment, net | 85,778 | 519,277 | 280,657 |
Intangible assets, net | 603 | 3,652 | 3,919 |
Other long-term assets | 3,107 | 18,808 | 69,343 |
Deferred tax assets, non-current | 105 | 632 | ' |
Total non-current assets | 89,593 | 542,369 | 353,919 |
Total assets | 681,070 | 4,122,991 | 3,241,362 |
Current liabilities (including amounts of the consolidated VIEs and VIEs' subsidiaries without recourse to the primary beneficiaries of RMB166 and RMB130 as of December 31, 2012 and 2013, respectively): | ' | ' | ' |
Accounts payable | 3,776 | 22,858 | 17,146 |
Salary and employee related accrual | 9,924 | 60,076 | 48,450 |
Taxes payable | 12,901 | 78,100 | 65,858 |
Advance from customers | 68,037 | 411,877 | 338,330 |
Other payables and accruals | 35,182 | 212,978 | 103,565 |
Total current liabilities | 129,820 | 785,889 | 573,349 |
Deferred tax liabilities, non-current | 988 | 5,983 | 1,985 |
Total liabilities | 130,808 | 791,872 | 575,334 |
Commitments and contingencies | ' | ' | ' |
Shareholders' equity: | ' | ' | ' |
Common shares (US$0.0001 par value per share; 500,000,000 shares authorized, 57,786,679 and 59,144,055 shares issued and outstanding as of December 31, 2012 and 2013, respectively) | 8 | 48 | 48 |
Additional paid-in capital | 217,505 | 1,316,713 | 1,152,174 |
Statutory reserves | 1,397 | 8,456 | 6,944 |
Accumulated other comprehensive income | 255 | 1,541 | 1,629 |
Retained earnings | 331,097 | 2,004,361 | 1,505,233 |
Total shareholders' equity | 550,262 | 3,331,119 | 2,666,028 |
Total liabilities and shareholders' equity | $681,070 | 4,122,991 | 3,241,362 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | USD ($) | CNY | USD ($) | CNY |
CONSOLIDATED BALANCE SHEETS | ' | ' | ' | ' |
Allowance for doubtful accounts receivable | ' | 3,347 | ' | 3,260 |
Amounts of the current liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to the primary beneficiaries | ' | 130 | ' | 166 |
Par value per common share (in dollars per share) | $0.00 | ' | $0.00 | ' |
Common shares, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 |
Common shares, shares issued | 59,144,055 | 59,144,055 | 57,786,679 | 57,786,679 |
Common shares, shares outstanding | 59,144,055 | 59,144,055 | 57,786,679 | 57,786,679 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Total | Total | Common shares | Common shares | Additional paid-in capital | Additional paid-in capital | Statutory reserves | Statutory reserves | Accumulated other comprehensive income | Accumulated other comprehensive income | Retained earnings | Retained earnings |
In Thousands, except Share data | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY |
Balance at Dec. 31, 2010 | ' | 1,654,856 | ' | 47 | ' | 997,933 | ' | 6,811 | ' | 1,313 | ' | 648,752 |
Balance (in shares) at Dec. 31, 2010 | ' | ' | ' | 56,473,949 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of share options | ' | 26,560 | ' | 0 | ' | 26,560 | ' | ' | ' | ' | ' | ' |
Exercise of share options (in shares) | ' | ' | ' | 511,392 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | ' | 37,974 | ' | ' | ' | 37,974 | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of common shares | ' | -648 | ' | 0 | ' | -648 | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of common shares (in shares) | ' | ' | ' | -4,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Appropriation of statutory reserves | ' | ' | ' | ' | ' | ' | ' | 521 | ' | ' | ' | -521 |
Foreign currency translation adjustments | ' | 325 | ' | ' | ' | ' | ' | ' | ' | 325 | ' | ' |
Net income | ' | 386,508 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 386,508 |
Balance at Dec. 31, 2011 | ' | 2,105,575 | ' | 47 | ' | 1,061,819 | ' | 7,332 | ' | 1,638 | ' | 1,034,739 |
Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | 56,981,341 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of share options | ' | 39,818 | ' | 1 | ' | 39,817 | ' | ' | ' | ' | ' | ' |
Exercise of share options (in shares) | ' | ' | ' | 805,338 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | ' | 50,538 | ' | ' | ' | 50,538 | ' | ' | ' | ' | ' | ' |
Appropriation of statutory reserves | ' | ' | ' | ' | ' | ' | ' | 812 | ' | ' | ' | -812 |
Reversal of statutory reserves due to closure of certain subsidiaries | ' | ' | ' | ' | ' | ' | ' | -1,200 | ' | ' | ' | 1,200 |
Foreign currency translation adjustments | ' | -9 | ' | ' | ' | ' | ' | ' | ' | -9 | ' | ' |
Net income | ' | 470,106 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 470,106 |
Balance at Dec. 31, 2012 | ' | 2,666,028 | ' | 48 | ' | 1,152,174 | ' | 6,944 | ' | 1,629 | ' | 1,505,233 |
Balance (in shares) at Dec. 31, 2012 | ' | 57,786,679 | ' | 57,786,679 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of share options | ' | 99,681 | ' | 0 | ' | 99,681 | ' | ' | ' | ' | ' | ' |
Exercise of share options (in shares) | 1,357,376 | ' | ' | 1,357,376 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | ' | 64,858 | ' | ' | ' | 64,858 | ' | ' | ' | ' | ' | ' |
Appropriation of statutory reserves | ' | ' | ' | ' | ' | ' | ' | 2,262 | ' | ' | ' | -2,262 |
Reversal of statutory reserves due to closure of certain subsidiaries | ' | ' | ' | ' | ' | ' | ' | -750 | ' | ' | ' | 750 |
Foreign currency translation adjustments | -15 | -88 | ' | ' | ' | ' | ' | ' | ' | -88 | ' | ' |
Net income | 82,700 | 500,640 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,640 |
Balance at Dec. 31, 2013 | $550,262 | 3,331,119 | $8 | 48 | $217,505 | 1,316,713 | $1,397 | 8,456 | $255 | 1,541 | $331,097 | 2,004,361 |
Balance (in shares) at Dec. 31, 2013 | 59,144,055 | ' | 59,144,055 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
Cash flows from operating activities: | ' | ' | ' | ' |
Net income for the year | $82,700 | 500,640 | 470,106 | 386,508 |
Adjustments for: | ' | ' | ' | ' |
Share-based compensation | 10,714 | 64,858 | 50,538 | 37,974 |
Depreciation | 5,264 | 31,867 | 27,496 | 26,389 |
Amortization of intangible assets | 301 | 1,824 | 1,500 | 1,615 |
Allowance for doubtful accounts | 347 | 2,102 | 7,654 | 801 |
Loss due to disposal of fixed assets | 28 | 171 | 65 | 141 |
Loss from foreign currency translation | 1,077 | 6,522 | 447 | 9,363 |
Loss from impairment of long-term investments | ' | ' | ' | 15,081 |
Gain from sale of long-term investments | ' | ' | -1,318 | ' |
Deferred tax (benefit) expense | 372 | 2,252 | 2,498 | -3,880 |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Increase in accounts receivable | -1,802 | -10,909 | -10,555 | -11,123 |
Increase in prepayments and other current assets | -10,924 | -66,132 | -86,485 | -124,580 |
Increase (Decrease) in accounts payable | 993 | 6,013 | -3,523 | 5,357 |
Increase in salary and employee related accrual | 1,921 | 11,626 | 4,163 | 4,744 |
Increase in taxes payable | 1,845 | 11,171 | 7,082 | 24,131 |
Increase in advance from customers | 12,149 | 73,547 | 47,870 | 104,269 |
Increase in other payables and accruals | 18,082 | 109,463 | 56,720 | 21,624 |
(Increase) Decrease in other long-term assets | 264 | 1,596 | 302 | -1,459 |
Net cash provided by operating activities | 123,331 | 746,611 | 574,560 | 496,955 |
Cash flows from investing activities: | ' | ' | ' | ' |
Proceeds from sale of long-term investments | ' | ' | 1,318 | ' |
Purchase of short-term investments | -111,191 | -673,119 | -138,502 | -863,400 |
Purchase of property and equipment | -36,690 | -222,108 | -136,760 | -58,870 |
Purchase of intangible assets | -257 | -1,557 | -1,129 | -1,100 |
Net cash used in investing activities | -148,138 | -896,784 | -275,073 | -923,370 |
Cash flows from financing activities: | ' | ' | ' | ' |
Repurchase and retirement of common shares | ' | ' | ' | -648 |
Proceeds from the exercise of share options | 16,466 | 99,681 | 39,818 | 26,560 |
Net cash provided by financing activities | 16,466 | 99,681 | 39,818 | 25,912 |
Effect of foreign exchange rate changes on cash | -1,077 | -6,522 | -447 | -8,686 |
Net (decrease) increase in cash | -9,418 | -57,014 | 338,858 | -409,189 |
Cash, beginning of year | 185,433 | 1,122,557 | 783,699 | 1,192,888 |
Cash, end of year | 176,015 | 1,065,543 | 1,122,557 | 783,699 |
Supplemental disclosure of cash flow information: | ' | ' | ' | ' |
Cash paid during the years for income taxes | 14,502 | 87,793 | 96,407 | 71,435 |
Supplemental disclosure of non-cash investing activities: | ' | ' | ' | ' |
Accrual related to purchase of property, equipment and software | -74 | -449 | -750 | -407 |
Supplemental disclosure of non-cash financing activities: | ' | ' | ' | ' |
Restricted cash related to the exercise of share options, end of year | $2,559 | 15,489 | 14,468 | 4,263 |
ORGANIZATION_AND_NATURE_OF_OPE
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2013 | |
ORGANIZATION AND NATURE OF OPERATIONS | ' |
ORGANIZATION AND NATURE OF OPERATIONS | ' |
1. ORGANIZATION AND NATURE OF OPERATIONS | |
The accompanying consolidated financial statements include the financial statements of 51job, Inc. (the "Company"), which was incorporated in the Cayman Islands in March 2000, its subsidiaries and certain variable interest entity ("VIE") subsidiaries. | |
The Company, its subsidiaries and VIE subsidiaries are hereinafter collectively referred to as the "Group." The Group is an integrated human resource services provider in the People's Republic of China (the "PRC" or "China") and is principally engaged in recruitment related advertising services, including Internet recruitment services and the production of a city-specific publication of advertisement listings as newspaper inserts. The Group also provides other human resource related services, such as business process outsourcing, training, campus recruitment and executive search. | |
PRINCIPAL_ACCOUNTING_POLICIES
PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PRINCIPAL ACCOUNTING POLICIES | ' | ||||||||||
PRINCIPAL ACCOUNTING POLICIES | ' | ||||||||||
2. PRINCIPAL ACCOUNTING POLICIES | |||||||||||
(a) | |||||||||||
Basis of Presentation and Use of Estimates | |||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). | |||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reported years. Management's significant estimates include those related to allowances for accounts receivable, allowances for prepayments and other current assets, fair values of options to purchase the Company's common shares, estimated useful lives of property and equipment and intangible assets, consolidation of VIEs, assessment of recoverability of long-term investments and deferred tax valuation allowance. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may materially differ from those estimates. | |||||||||||
(b) | |||||||||||
Basis of Consolidation | |||||||||||
The consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE subsidiaries of which the Company is the primary beneficiary. All significant transactions and balances between the Company, its subsidiaries and VIE subsidiaries have been eliminated upon consolidation. | |||||||||||
A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors; to cast majority of votes at the meeting of the board of directors; or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. | |||||||||||
The Company has adopted Accounting Standards Codification ("ASC") 810 "Consolidation" for all periods presented. It requires VIEs to be consolidated by the primary beneficiary of the entity. An entity is considered to be a VIE if certain conditions are present, such as if the equity investors in the entity do not have the characteristics of a controlling financial interest or the entity does not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. In determining whether the Company or its subsidiary is the primary beneficiary of a VIE, the Company considered whether it has the rights to a majority of the economic benefits and obligation to absorb a majority of the expected losses. In addition, the Company considered whether it has the power to direct activities that are significant to the VIE's economic performance, including the power to appoint senior management, right to direct company strategy, power to approve capital expenditure budgets, and power to establish and manage ordinary business operation procedures and internal regulations and systems. | |||||||||||
The Company's wholly owned subsidiaries include the following: | |||||||||||
• | |||||||||||
51net.com Inc. ("51net"), incorporated in the British Virgin Islands in August 1999; | |||||||||||
• | |||||||||||
51net Beijing, incorporated in the Cayman Islands in April 2000, which wholly owns Qian Cheng Wu You Network Information Technology (Beijing) Co., Ltd. ("WFOE"), incorporated in the PRC in July 2000; and | |||||||||||
• | |||||||||||
51net HR, incorporated in the Cayman Islands in April 2000, which owns 70% of Shanghai Wang Ju Human Resource Consulting Co., Ltd. ("Wang Ju"), incorporated in the PRC in October 2006. | |||||||||||
51net's principal subsidiaries include the following: | |||||||||||
• | |||||||||||
Qianjin Network Information Technology (Shanghai) Co., Ltd. ("Tech JV"), incorporated in the PRC in January 2000, which is 50% owned by 51net; | |||||||||||
• | |||||||||||
Wang Jin Information Technology (Shanghai) Co., Ltd. ("Wang Jin"), incorporated in the PRC in June 2004, which is wholly owned by 51net; | |||||||||||
• | |||||||||||
Shanghai Wang Ju Advertising Co., Ltd., incorporated in the PRC in June 2007, which is wholly owned by 51net; and | |||||||||||
• | |||||||||||
Wuhan Wang Cai Information Technology Co., Ltd., incorporated in the PRC in December 2009, which is wholly owned by Wang Jin. | |||||||||||
Tech JV's principal subsidiaries include the following: | |||||||||||
• | |||||||||||
Shanghai Qianjin Advertising Co., Ltd. ("AdCo"), incorporated in the PRC in June 2001, which is 80% owned by Tech JV; | |||||||||||
• | |||||||||||
Shanghai Wang Cai Advertising Co., Ltd. ("Wang Cai AdCo"), incorporated in the PRC in April 2005, which is jointly owned by Tech JV and AdCo; and | |||||||||||
• | |||||||||||
Shanghai Qianjin Zhong Cheng Human Resources Co., Ltd., incorporated in the PRC in December 2010; which is wholly owned by Tech JV. | |||||||||||
The Company's VIE subsidiaries include the following: | |||||||||||
• | |||||||||||
Beijing Run An Information Consultancy Co., Ltd. ("Run An"), incorporated in the PRC in January 1997, which wholly owns Beijing Qian Cheng Si Jin Advertising Co., Ltd. ("Qian Cheng") and owns 30% of Wang Ju; and | |||||||||||
• | |||||||||||
Qian Cheng, incorporated in the PRC in February 1999, which owns 20% of AdCo and effectively owns 50% of Tech JV by direct and indirect ownership through Qian Cheng's wholly owned subsidiary Wuhan Mei Hao Qian Cheng Advertising Co., Ltd. ("Wuhan AdCo"), incorporated in the PRC in August 2001. | |||||||||||
As of December 31, 2013 and for all years presented, the Company is the primary beneficiary of two VIEs, Run An and Qian Cheng, which were in existence prior to the establishment of the Company and are considered predecessors of the Group. The Company does not have any ownership interest in the VIEs, but through certain arrangements as described below, the Company receives all of the economic benefits, absorbs all of the expected losses and has the power to direct activities that are significant to the VIEs. In addition, through a call option agreement between 51net and Qian Cheng, 51net is able to purchase the equity interests in Tech JV that are held by Qian Cheng and Wuhan AdCo as well as the equity interests in AdCo and its subsidiaries that are held by Qian Cheng. As a result, Run An, Qian Cheng and all of Tech JV and AdCo are included in the consolidated financial statements, and the Company effectively holds all of the equity interests in its subsidiaries including the VIE subsidiaries. | |||||||||||
For the year ended December 31, 2011, the Company was also the primary beneficiary of Shanghai Run An Lian Information Consultancy Co., Ltd. ("RAL"), a VIE which was established in April 2004. On December 30, 2011, the Shanghai Administration for Industry and Commerce approved the closure of RAL, which was wholly owned by Run An. RAL previously held an Internet content provider license and a permit issued by the Shanghai human resources and social security bureau which allowed it to conduct human resource related services. | |||||||||||
Run An holds a human resource service permit issued by the Beijing human resources and social security bureau which allows it to provide recruitment, training and human resource consulting services. Run An is jointly owned by David Weimin Jin and Tao Wang, both of whom are executive officers of the Company. As of December 31, 2013, the registered capital of Run An was RMB6,000 and its accumulated loss was RMB1,345. | |||||||||||
Qian Cheng holds an advertisement license. Qian Cheng is wholly owned by Run An. As of December 31, 2013, the registered capital of Qian Cheng was RMB1,500 and its retained earnings were RMB783. | |||||||||||
As the consolidated VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. Currently, there is no contractual arrangement that could require the Company to provide additional financial support to the consolidated VIEs, but the Company may provide such support on a discretionary basis in the future, which could expose the Company to loss. | |||||||||||
The Group has entered into various agreements as related to its VIE subsidiaries. The key provisions of the agreements with the Company or its subsidiaries and the VIE subsidiaries or its shareholders are as follows: | |||||||||||
Technical and Consulting Service Agreements. WFOE has entered into technical and consulting service agreements with Run An and Qian Cheng, respectively, under which WFOE has the exclusive right, subject to certain exceptions, to provide technical services to Run An and Qian Cheng for service fees. WFOE did not issue any invoices to either Run An or Qian Cheng, and neither Run An nor Qian Cheng paid any fees to WFOE for the years ended December 31, 2011, 2012 and 2013. The technical and consulting service agreements with WFOE are valid to September 11, 2017 under the Run An agreement and valid to May 2, 2034 under the Qian Cheng agreement, and can only be terminated by WFOE during the term. Such term is renewable upon written consent of the parties. Although the renewal is upon mutual consent, WFOE may, through its power of attorney, direct Run An and, through Run An, cause Qian Cheng to renew the technical and consulting service agreements upon expiration. | |||||||||||
Equity Pledge Agreement. As security for the obligations of Run An under the technical and consulting service agreement and the obligations of Run An and its shareholders under the exclusive purchase option agreement described below, the shareholders of Run An have pledged all of their equity interest in Run An to WFOE. According to the pledge agreement, WFOE has the right to dispose of the pledged equity pursuant to PRC law in the event of default by Run An or its shareholders as provided in the pledge agreement. Additionally, the shareholders of Run An have agreed that they will not dispose of the pledged equity or take any actions that will prejudice WFOE's interest under the equity pledge agreements. The equity pledge agreement among WFOE, Run An and its shareholders was entered into on January 27, 2014 and shall expire two years after the fulfillment of all obligations under the Run An technical and consulting service agreement and the exclusive purchase option agreement. This pledge agreement, in combination with the exclusive purchase option agreement, contains content that is substantially the same as the pledge agreements entered into between WFOE and Run An's shareholders in September 2007 and between WFOE and Qian Cheng's shareholders in May 2004. This pledge agreement has been registered with the relevant bureau of the PRC State Administration for Industry and Commerce. | |||||||||||
Exclusive Purchase Option Agreement. WFOE has entered into an exclusive purchase option agreement with the shareholders of Run An, dated as of January 27, 2014, under which WFOE or its designee is granted an irrevocable option to purchase all or a portion of the equity interests in Run An at any time by issuing a written notice to the shareholders, subject to compliance with applicable PRC laws and regulations. The purchase price shall be equal to the contribution actually made by the shareholder for his equity interest in Run An. If the lowest price permitted under PRC law is above the contribution actually made by the shareholder, the premium shall be paid to Tech JV in accordance with the terms of the loan agreements described below. The exclusive purchase option agreement has the same term as the Run An technical and consulting service agreement. WFOE also has the exclusive right to terminate the agreement at any time by delivering a written notice to the shareholders of Run An. | |||||||||||
Powers of Attorney. In conjunction with the signing of the equity pledge agreement and the exclusive purchase option agreement, each of the shareholders of Run An has signed an irrevocable power of attorney to appoint WFOE, as attorney-in-fact to vote, by itself or any other person to be designated at its discretion, on all matters of Run An that need to be decided by its shareholders. Because Qian Cheng is a wholly owned subsidiary of Run An and Wuhan AdCo is a wholly owned subsidiary of Qian Cheng, through controlling all material matters of Run An (including but not limited to all material operational matters and the appointment and removal of directors and senior management), WFOE also has indirect control on all material matters of Qian Cheng and Wuhan AdCo. Each power of attorney was entered into on January 27, 2014 and will remain effective for as long as Run An exists. The shareholders of Run An are not entitled to terminate or amend the terms of the power of attorney without prior written consent from WFOE. | |||||||||||
Loan Agreements. Tech JV has entered into loan agreements dated as of September 11, 2007 for an aggregate amount of RMB6,000 with the shareholders of Run An, with the sole and exclusive purpose to fund the capitalization of Run An. The loans can be repaid only with the proceeds received from the transfer of the shareholders' equity interest in Run An to Tech JV or its designee. The interest-free loan agreements are valid to September 11, 2017, and the term may be extended upon written consent of the parties. | |||||||||||
Call Option Agreement. 51net has entered into a call option agreement with Qian Cheng dated as of August 1, 2002, and supplemented and amended as of May 3, 2004 and August 1, 2012, under which 51net or its designee is granted an irrevocable option to purchase all of Qian Cheng's equity interest in Tech JV and AdCo for RMB1,200 or, if such purchase price is not permissible under the applicable PRC laws, the lowest price permitted under then applicable PRC laws. In addition, Qian Cheng granted 51net an irrevocable option to purchase any and all of its equity interests in the subsidiaries of AdCo at the lowest price permitted under PRC laws. The call option agreement is valid to July 31, 2022, and the term may be extended upon written consent of the parties. | |||||||||||
Management monitors the regulatory risk associated with these contractual arrangements. The Company's PRC legal counsel has advised management that these contractual arrangements are not in violation of existing PRC laws, rules and regulations in all material aspects. Based on such advice and management's knowledge and experience, the Company believes that its contractual arrangements with its consolidated VIEs and their shareholders are valid, legally binding and in compliance with current PRC laws. However, there are substantial uncertainties regarding the interpretation and application of current or future PRC laws, rules and regulations that could limit the Company's ability to enforce these contractual arrangements. Management monitors the regulatory risk associated with these contractual arrangements. See Note 15 for further discussion. | |||||||||||
Summary financial information of the Group's VIEs included in the consolidated financial statements is as follows: | |||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
RMB | RMB | ||||||||||
Total assets | 7,038 | 7,180 | |||||||||
Total liabilities | 166 | 130 | |||||||||
For the year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Total revenues | 7,931 | 2,340 | 98 | ||||||||
Net income | 281 | 1,730 | 161 | ||||||||
For the year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Net cash (used in) provided by operating activities | (926 | ) | 1,400 | 274 | |||||||
Net cash used in investing activities | — | — | — | ||||||||
Net cash provided by financing activities | — | — | — | ||||||||
| | | | | | | | | | | |
Net (decrease) increase in cash | (926 | ) | 1,400 | 274 | |||||||
Cash, beginning of year | 5,929 | 5,003 | 6,403 | ||||||||
| | | | | | | | | | | |
Cash, end of year | 5,003 | 6,403 | 6,677 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(c) | |||||||||||
Foreign Currencies | |||||||||||
The Group's functional and reporting currency is the Renminbi ("RMB"). Transactions denominated in currencies other than RMB are translated into RMB at the exchange rates quoted by the People's Bank of China prevailing at the dates of the transactions. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations and comprehensive income. Monetary assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the People's Bank of China at the balance sheet dates. All such exchange gains and losses are included in the consolidated statements of operations and comprehensive income. The exchange differences for translation of group companies' balances where RMB is not their functional currency are included in cumulative translation adjustments, which is a separate component of shareholders' equity in the consolidated financial statements. | |||||||||||
The unaudited United States dollar ("US$") amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the rate of US$1.00 =MB6.0537 on December 31, 2013, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2013, or at any other rate. | |||||||||||
(d) | |||||||||||
Cash and Restricted Cash | |||||||||||
Cash represents cash on hand and demand deposits placed with banks or other financial institutions. Restricted cash represents cash proceeds from the exercise of share options by the Company's employees, executives and directors held in a bank account which have yet to be transmitted to them. Included in the cash and restricted cash balances as of December 31, 2012 and 2013 are amounts denominated in United States dollars totaling US$33,572 and US$29,715, respectively (equivalent to approximately RMB211,017 and RMB181,169, based on the RMB to US$ exchange rate quoted by the People's Bank of China on December 31, 2012 and 2013, respectively). The Group receives substantially all of its revenues in RMB, which currently is neither a freely convertible currency nor can it be freely remitted out of China. | |||||||||||
(e) | |||||||||||
Accounts Receivable | |||||||||||
Accounts receivable is presented net of allowance for doubtful accounts. The Company provides general and specific provisions for bad debts when facts and circumstances indicate that the receivable is unlikely to be collected. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. | |||||||||||
(f) | |||||||||||
Investments | |||||||||||
Short-term investments consist of certificates of deposit with original maturities between three months and one year. | |||||||||||
Long-term investments consist of non-interest bearing loans provided in 2007 and 2008 to Area Link Co., Ltd. ("Area Link"), which is the holding company of a coupon advertising services business in China. Area Link is affiliated with Recruit Holdings Co., Ltd. ("Recruit"), a shareholder of the Company. In the year ended December 31, 2011, the Company determined that the carrying value of long-term investments in Area Link was not recoverable and recognized a loss from impairment totaling RMB15,081. In the year ended December 31, 2012, the coupon advertising services business owned by Area Link was sold, the Company recognized a gain from sale with proceeds of RMB1,318, and this amount was included in other income. See Note 11. | |||||||||||
Investments are evaluated for impairment at the end of each period. Unrealized losses are recorded as impairment losses when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial conditions and near-term prospects of the issuers; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. | |||||||||||
(g) | |||||||||||
Property and Equipment | |||||||||||
Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis to allocate the cost of the assets to their estimated residual value over the following estimated useful lives: | |||||||||||
Estimated useful lives | |||||||||||
Land use rights | 32.42 to 50 years | ||||||||||
Building | 20 years | ||||||||||
Leasehold improvements | Lesser of the lease period or the estimated useful life | ||||||||||
Electronic equipment | 3 to 5 years | ||||||||||
Furniture and fixtures | 5 years | ||||||||||
Motor vehicles | 5 years | ||||||||||
Other assets | 5 years | ||||||||||
(h) | |||||||||||
Intangible Assets | |||||||||||
Intangible assets include purchased computer software and licenses and are amortized on a straight-line basis over their estimated useful lives, which range from five to ten years. | |||||||||||
(i) | |||||||||||
Impairment of Long-Lived Assets | |||||||||||
The Group has adopted ASC 360 "Property, Plant and Equipment," which addresses the financial accounting and reporting for the recognition and measurement of impairment losses for long-lived assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that carrying amount of an asset group may not be recoverable. The recoverability of an asset group is based on the undiscounted future cash flows the asset group is expected to generate and recognize an impairment loss when the estimated undiscounted future cash flows expected to result from the use of the asset group plus net proceeds expected from the disposition of the asset group, if any, are less than the carrying value of the asset group. If the Group identifies an impairment, the Group reduces the carrying amount of the asset group to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. No impairment of long-lived assets was recognized in the years ended December 31, 2011, 2012 and 2013. | |||||||||||
(j) | |||||||||||
Revenue Recognition | |||||||||||
Online Recruitment Services Revenues | |||||||||||
The Group provides online recruitment advertising and other technical services through its www.51job.com website. The average display period of online recruitment services normally ranges from one week to one year. Fees for its online recruitment advertisement and other technical services are recognized as revenue ratably over the display period of the contract or when services are provided, collectibility is reasonably assured, and other criteria in accordance with ASC 605 "Revenue Recognition" ("ASC 605") are met. For a transaction involving multiple services, the Company recognizes revenue at relative fair value which is determined based on the Company's regular selling prices charged in unbundled arrangements. Cash received in advance of services are recognized as advance from customers. | |||||||||||
Print Advertising Revenues | |||||||||||
The Group provides recruitment advertising services through a weekly newspaper which is distributed in certain cities in the PRC. Arrangements for recruitment advertisement on the weekly newspaper are generally short-term in nature. Fees for these types of print recruitment advertising services are recognized as revenue when collectibility is reasonably assured, upon the publication of the advertisements and when other criteria in accordance with ASC 605 are met. Cash received in advance of services are recognized as advance from customers. | |||||||||||
Other Human Resource Related Revenues | |||||||||||
The Group also provides other value-added human resource products, such as business process outsourcing, training, campus recruitment, executive search and other services. Revenue is recognized when (i) persuasive evidence of an agreement exists, (ii) services are rendered, (iii) the sales price and terms are fixed or determinable, and (iv) the collection of the receivable is reasonably assured, as prescribed by ASC 605. | |||||||||||
Business and Related Taxes | |||||||||||
The Company's subsidiaries and its VIE subsidiaries are subject to business taxes and related surcharges on the revenues earned for services provided in the PRC. The applicable rate of business taxes is 5% after certain deductions. In the consolidated statements of operations and comprehensive income, business taxes and related surcharges for revenues earned are deducted from gross revenues to arrive at net revenues. | |||||||||||
Effective January 1, 2012, the PRC State Council instituted a pilot value-added tax ("VAT") reform program applicable to businesses in "selected modern service industries" in Shanghai. Under this program, businesses would switch from business tax payers to VAT payers and are permitted to offset input VAT supported by valid VAT invoices received from vendors against their VAT liability. As a result, some of the Company's subsidiaries became subject to VAT at a rate of 6% beginning January 1, 2012. In July 2012, the PRC Ministry of Finance announced that the VAT program would be expanded to additional trial regions, namely Beijing, Tianjin and the provinces of Jiangsu, Anhui, Zhejiang, Fujian, Hubei and Guangdong. Starting August 1, 2013, the VAT program was expanded to all regions in the PRC. This new VAT program and its expansion did not and are not expected to have a material impact on the Company's financial statements. | |||||||||||
(k) | |||||||||||
Cost of Services | |||||||||||
Cost of services consist primarily of payroll compensation and related employee costs, subcontracting fees, printing and publishing expenses, and other expenses incurred by the Group which are directly attributable to the rendering of the Group's recruitment advertising and other human resource services. | |||||||||||
(l) | |||||||||||
Sales and Marketing Expenses | |||||||||||
Sales and marketing expenses consist primarily of the Group's sales and marketing personnel payroll compensation and related employee costs and advertising and promotion expenses. Advertising and promotion expenses generally represent the cost of promotions to create or stimulate a positive image of the Group or a desire for the Group's services. Advertising and promotion expenses are charged to the consolidated statements of operations and comprehensive income when incurred and totaled RMB62,371, RMB65,667 and RMB80,307 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||
(m) | |||||||||||
Share-Based Compensation | |||||||||||
The Company accounts for share-based compensation arrangements with employees in accordance with ASC 718 "Compensation—Stock Compensation." It requires the Company to measure at the grant date the fair value of the stock-based award and recognize compensation costs, net of estimated forfeitures, on a straight-line basis, over the requisite service period. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. Risk-free interest rates are based on U.S. Treasury yield for the terms consistent with the expected life of award at the time of grant. Expected life takes into account vesting and contractual terms, employee demographics and historical exercise behavior, which the Company believes are useful reference points. The assumption for expected dividend yield is consistent with the Company's current policy of no dividend payout. The Company estimates expected volatility at the date of grant based on historical volatilities of the market price of its American depositary shares ("ADSs"). Forfeiture rate is estimated based on historical forfeiture patterns and adjusted to reflect future change in circumstances and facts, if any. If actual forfeitures differ from those estimates, the Company may need to revise those estimates used in subsequent periods. The weighted average fair value per stock option on grant date is RMB70.26, RMB60.88 and RMB70.30 for year ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||
For the years ended December 31, 2011, 2012 and 2013, the fair value of options granted was estimated with the following assumptions: | |||||||||||
2011 | 2012 | 2013 | |||||||||
Risk-free interest rate | 1.58 | % | 0.59 | % | 0.76 | % | |||||
Expected life (years) | 4 | 4 | 4 | ||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||
Volatility | 48 | % | 53 | % | 49 | % | |||||
Fair value of the common share on date of option grant | US$28.72 | US$23.79 | US$30.14 | ||||||||
(n) | |||||||||||
Operating Leases | |||||||||||
Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases, net of any incentives received by the Group from the leasing company, are charged to the consolidated statements of operations and comprehensive income on a straight-line basis over the lease periods. | |||||||||||
(o) | |||||||||||
Taxation | |||||||||||
The Company accounts for income taxes under the liability method. Under this method, deferred income taxes are recognized for the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities by applying enacted statutory rates applicable to future years in which the differences are expected to reverse. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of, the deferred tax assets will not be realized. | |||||||||||
The Company adopted ASC 740-10-25 "Income Taxes—Overall—Recognition" to account for uncertainties in income taxes effective January 1, 2007. The Company recognizes a tax benefit associated with an uncertain tax position when, in management's judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. The Company has elected to classify interest and penalties related to an uncertain tax position, if any and when required, as general and administrative expenses. In the years ended December 31, 2011, 2012 and 2013, the Company did not record any interest and penalties associated with uncertain tax positions as there were no uncertain tax positions. | |||||||||||
(p) | |||||||||||
Statutory Reserves | |||||||||||
With the exception of Tech JV which is 50% owned by 51net, a British Virgin Islands company, and Wang Ju which is majority owned by 51net HR, a Cayman Islands company, the Group's subsidiaries and VIE subsidiaries incorporated in the PRC are required on an annual basis to allocate at least 10% of their after-tax profit, after the recovery of accumulated deficit to the statutory common reserve. The amount of allocation is calculated based on an entity's after-tax profit shown in its statutory financial statements which are prepared in accordance with PRC accounting standards and regulations until the reserve has reached 50% of the registered capital of each company. Once the total statutory common reserve fund reaches 50% of the registered capital of the respective companies, further appropriations are discretionary. The statutory common reserve fund is not distributable to shareholders except in the event of liquidation. Since 2008, the statutory common reserve fund for more than half of the Company's subsidiaries and VIE subsidiaries incorporated in the PRC had reached 50% of the registered capital of the respective companies. As a result, no appropriations were made by these entities to their respective statutory reserve funds in the years ended December 31, 2011, 2012 and 2013. With the exception of a few entities, all remaining subsidiaries whose total statutory common reserve fund had not reached 50% of its respective registered capital had accumulative losses as of December 31, 2011, 2012 and 2013. As a result, these entities did not make appropriations to their statutory reserve funds in the years ended December 31, 2011, 2012 and 2013. During the years ended December 31, 2011, 2012 and 2013, the Group's subsidiaries made total appropriations to their statutory common reserve fund in the amount of RMB521, RMB812 and RMB2,262, respectively. During the years ended December 31, 2012 and 2013, the Group made a reversal of RMB800 and RMB500, respectively, from the statutory common reserve fund to retained earnings due to the closure of certain subsidiaries. The statutory common reserve funds of these closed subsidiaries were distributed to their respective shareholders, which are ultimately held by the Group. No reversal of the statutory common reserve fund was made in the year ended December 31, 2011. | |||||||||||
In addition, the Group's subsidiaries and VIE subsidiaries incorporated in the PRC may, at the discretion of its board of directors, on an annual basis set aside the statutory common welfare fund, which can be used for staff welfare of the Group. No appropriations to the statutory common welfare fund were made for the years ended December 31, 2011, 2012 and 2013. During the years ended December 31, 2012 and 2013, the Group made a reversal of RMB400 and RMB250, respectively, from the statutory common welfare fund to retained earnings due to the closure of certain subsidiaries. The statutory common welfare funds of these closed subsidiaries were distributed to their respective shareholders, which are ultimately held by the Group. No reversal of the statutory common welfare fund was made in the year ended December 31, 2011. | |||||||||||
Appropriations to the statutory common reserve fund and the statutory common welfare fund are accounted for as a transfer from retained earnings to the statutory reserves. | |||||||||||
There are no legal requirements in the PRC to fund these reserves by transfer of cash to any restricted accounts, and the Group does not do so. These reserves are not distributable as cash dividends. | |||||||||||
(q) | |||||||||||
Dividend | |||||||||||
Dividends are recognized when declared. PRC regulations currently permit payment of dividends only out of accumulated profits as determined in accordance with PRC accounting standards and regulations. Additionally, the Company's PRC subsidiaries and VIE subsidiaries can only distribute dividends after they have met the PRC requirements for appropriation to statutory reserves. See Note 2(p). In addition, the net assets of the Company's subsidiaries associated with their paid-in capital are not distributable in the form of dividends. Aggregate net assets of the Company's PRC subsidiaries not distributable in the form of dividends to the parent as a result of the aforesaid PRC regulations and related to the subsidiaries' paid-in capital were approximately RMB516,662 and RMB517,175, or 19.4% and 15.5% of total consolidated net assets as of December 31, 2012 and 2013, respectively. However, the PRC subsidiaries may transfer such net assets to the Company by other means, including through royalty and trademark license agreements or certain other contractual agreements, at the discretion of the Company without third party consent. | |||||||||||
(r) | |||||||||||
Earnings Per Share | |||||||||||
In accordance with ASC 260 "Earnings Per Share," basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to common shareholders as adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of the common shares issuable upon the exercise of outstanding share options (using the treasury stock method). | |||||||||||
(s) | |||||||||||
Fair Value Measurement | |||||||||||
Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participates at the measurement date in accordance with ASC 820 "Fair Value Measurements and Disclosures" ("ASC 820"). When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. | |||||||||||
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||
Level 1—Observable inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities | |||||||||||
Level 2—Include other inputs that are directly or indirectly observable in the marketplace | |||||||||||
Level 3—Unobservable inputs which are supported by little or no market activity | |||||||||||
ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (i) market approach; (ii) income approach; and (iii) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. | |||||||||||
(t) | |||||||||||
Segment Reporting | |||||||||||
Based on the criteria established by ASC 280 "Segment Reporting," the Group currently operates and manages its business as a single operating and single reportable segment. The Group's chief operating decision-maker ("CODM") is the chief executive officer. The CODM reviews operating results to make decisions about allocating resources and assessing performance for the entire Group. The Group primarily generates its revenues from customers in the PRC, and assets of the Group are also located in PRC. Accordingly, no geographical segments are presented. | |||||||||||
(u) | |||||||||||
Stock Repurchase | |||||||||||
When the Company's common shares are repurchased for retirement, the excess of cost over par value is charged entirely to additional paid-in capital, limited to additional paid-in capital of the same issue being retired. | |||||||||||
(v) | |||||||||||
Comprehensive Income | |||||||||||
The Company has adopted ASC 220 "Comprehensive Income." Other comprehensive income/loss is defined as the change in equity of a company during the period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income mainly consists of cumulative foreign currency translation adjustments. | |||||||||||
(w) | |||||||||||
Recent Accounting Pronouncements | |||||||||||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" ("ASU 2013-02"). ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The adoption of ASU 2013-02 beginning on January 1, 2013 did not have a material impact on the Company's consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). ASU 2013-11 requires an entity to present an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, except for when a net operating loss carryforward is not available as of the reporting date to settle taxes that would result from the disallowance of the tax position or when the entity does not intend to use the deferred tax asset for purposes of reducing the net operating loss carry forward. ASU 2013-11 is effective for fiscal years beginning after December 15, 2013 and for interim periods within that fiscal year. The adoption of ASU 2013-11 is not expected to have a material impact on the Company's consolidated financial statements. | |||||||||||
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
ACCOUNTS RECEIVABLE | ' | ||||||||||
ACCOUNTS RECEIVABLE | ' | ||||||||||
3. ACCOUNTS RECEIVABLE | |||||||||||
2012 | 2013 | ||||||||||
RMB | RMB | ||||||||||
Accounts receivable | 55,948 | 66,155 | |||||||||
Less: Allowance for doubtful accounts | (3,260 | ) | (3,347 | ) | |||||||
| | | | | | | | ||||
52,688 | 62,808 | ||||||||||
| | | | | | | | ||||
| | | | | | | | ||||
The movement of allowance for doubtful accounts is analyzed as follows: | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Balance at beginning of period | 1,965 | 2,022 | 3,260 | ||||||||
Additions | 801 | 1,575 | 789 | ||||||||
Write-offs | (744 | ) | (337 | ) | (702 | ) | |||||
| | | | | | | | | | | |
Balance at end of period | 2,022 | 3,260 | 3,347 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
PREPAYMENTS_AND_OTHER_CURRENT_
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PREPAYMENTS AND OTHER CURRENT ASSETS | ' | |||||||
PREPAYMENTS AND OTHER CURRENT ASSETS | ' | |||||||
4. PREPAYMENTS AND OTHER CURRENT ASSETS | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Rental and other deposits | 1,461 | 3,413 | ||||||
Prepayments for rental and others | 10,603 | 15,386 | ||||||
Employee advances | 2,781 | 1,980 | ||||||
Payments made on behalf of customers | 226,485 | 271,015 | ||||||
Prepaid insurance premium | 975 | 1,072 | ||||||
Interest income receivable | 36,231 | 47,656 | ||||||
Unutilized input value-added tax | — | 3,167 | ||||||
Others | 1,706 | 1,372 | ||||||
| | | | | | | | |
Total | 280,242 | 345,061 | ||||||
| | | | | | | | |
| | | | | | | | |
Payments made on behalf of customers are associated with the operations of the Company's business process outsourcing services. The Company has remitted funds in advance on behalf of customers for purposes such as monthly employee benefits, social insurance and payroll payments, which will be reimbursed to the Company in the near term. The Company provided an allowance for payments made on behalf of customers when facts and circumstances indicate that the receivable is unlikely to be collected. The allowance balance for payments made on behalf of customers was RMB6,079 and RMB3,632 as of December 31, 2012 and 2013, respectively. | ||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
5. PROPERTY AND EQUIPMENT | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Land and building | 289,536 | 526,294 | ||||||
Leasehold improvements | 14,075 | 19,902 | ||||||
Electronic equipment | 94,530 | 110,863 | ||||||
Furniture and fixtures | 10,305 | 10,376 | ||||||
Motor vehicles | 7,067 | 6,880 | ||||||
Other assets | 11,378 | 13,928 | ||||||
Less: Accumulated depreciation | (146,234 | ) | (168,966 | ) | ||||
| | | | | | | | |
Net book value | 280,657 | 519,277 | ||||||
| | | | | | | | |
| | | | | | | | |
Depreciation expense was RMB26,389, RMB27,496 and RMB31,867 for the years ended December 31, 2011, 2012 and 2013, respectively. Loss due to disposal of fixed assets was RMB141, RMB65 and RMB171 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INTANGIBLE ASSETS | ' | |||||||
INTANGIBLE ASSETS | ' | |||||||
6. INTANGIBLE ASSETS | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Computer equipment software | 21,448 | 20,392 | ||||||
Acquired training licenses | 3,522 | 3,522 | ||||||
Less: Accumulated amortization | (21,051 | ) | (20,262 | ) | ||||
| | | | | | | | |
Net book value | 3,919 | 3,652 | ||||||
| | | | | | | | |
| | | | | | | | |
Amortization expense was RMB1,615, RMB1,500 and RMB1,824 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||
The Company will record estimated amortization expenses of RMB1,464, RMB909, RMB603, RMB509 and RMB167 for the years ending December 31, 2014, 2015, 2016, 2017 and 2018, respectively. | ||||||||
OTHER_PAYABLES_AND_ACCRUALS
OTHER PAYABLES AND ACCRUALS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
OTHER PAYABLES AND ACCRUALS | ' | |||||||
OTHER PAYABLES AND ACCRUALS | ' | |||||||
7. OTHER PAYABLES AND ACCRUALS | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Professional service fees | 1,920 | 3,792 | ||||||
Office expenses | 6,632 | 6,567 | ||||||
Receipts from customers | 84,248 | 191,829 | ||||||
Revenue from newspaper sales collected on behalf of newspaper contractors | 178 | — | ||||||
Payables to employees related to net proceeds from share options exercised | 9,466 | 9,416 | ||||||
Others | 1,121 | 1,374 | ||||||
| | | | | | | | |
Total | 103,565 | 212,978 | ||||||
| | | | | | | | |
| | | | | | | | |
Receipts from customers are associated with the operations of the Company's business process outsourcing services. The Company has received funds in advance from customers for purposes such as monthly employee benefits, social insurance and payroll payments, which will be disbursed by the Company to other parties on behalf of customers in the near term. | ||||||||
TAXATION
TAXATION | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
TAXATION | ' | ||||||||||
TAXATION | ' | ||||||||||
8. TAXATION | |||||||||||
Cayman Islands | |||||||||||
Under the current laws of the Cayman Islands, the Company and its subsidiaries that are incorporated in the Cayman Islands are not subject to tax on income or capital gain. In addition, upon payments of dividends by those companies to their shareholders, no Cayman Islands withholding tax will be imposed. | |||||||||||
British Virgin Islands | |||||||||||
Under the current laws of the British Virgin Islands, the Company's subsidiary that is incorporated in the British Virgin Islands is not subject to tax on income or capital gain. In addition, upon payments of dividends by that company to its shareholders, no British Virgin Islands withholding tax will be imposed. | |||||||||||
Hong Kong | |||||||||||
51net is registered in Hong Kong as a non-Hong Kong company and is subject to Hong Kong profits tax at a rate of 16.5% on its assessable profit. | |||||||||||
China | |||||||||||
The Enterprise Income Tax Law of the PRC ("EIT Law"), which became effective January 1, 2008, applies a uniform enterprise income tax rate ("EIT") of 25% to both foreign-invested enterprises and domestic enterprises. | |||||||||||
In December 2009, Tech JV was designated by relevant local authorities in Shanghai as a "High and New Technology Enterprise" under the EIT Law. Tech JV became subject to a preferential tax rate of 15%. In 2012, its preferential tax status has been renewed by local tax authorities through 2014. Tech JV is entitled to this preferential 15% tax rate as long as it maintains the required qualifications, which is subject to review every three years. | |||||||||||
The EIT Law also imposes a 10% withholding income tax ("WHT") for dividends declared out of the profits earned after January 1, 2008 by a foreign-invested enterprise ("FIE") to its immediate holding company outside China. For certain treaty jurisdictions such as Hong Kong which has signed tax treaties with the PRC, the WHT rate is 5%. Since the Company intends to permanently reinvest earnings to further expand its businesses in mainland China, its FIEs do not intend to declare dividends to its immediate foreign holding entities in the foreseeable future. Accordingly, as of December 31, 2013, the Company has not recorded any withholding tax on the retained earnings of its FIEs in China. Cumulative undistributed earnings of the Company's PRC subsidiaries intended to be permanently reinvested totaled RMB1,941,315 and RMB2,505,576, and the amount of the unrecognized deferred tax liability on the permanently reinvested earnings was RMB194,132 and RMB250,558 as of December 31, 2012 and 2013, respectively. | |||||||||||
Composition of Income Tax Expense | |||||||||||
Income (loss) before income tax expense for the years ended December 31, 2011, 2012 and 2013 were taxed within the following jurisdictions: | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
PRC entities | 526,236 | 608,637 | 665,131 | ||||||||
Non-PRC entities | (58,672 | ) | (42,952 | ) | (64,183 | ) | |||||
| | | | | | | | | | | |
Total | 467,564 | 565,685 | 600,948 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The current and deferred portion of income tax expense included in the consolidated statements of operations and comprehensive income for the years ended December 31, 2011, 2012 and 2013 are as follows: | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Current income tax expense | |||||||||||
PRC entities | 84,936 | 93,081 | 98,056 | ||||||||
Non-PRC entities | — | — | — | ||||||||
| | | | | | | | | | | |
Total | 84,936 | 93,081 | 98,056 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Deferred income tax expense (benefit) | |||||||||||
PRC entities | (3,880 | ) | 2,498 | 2,252 | |||||||
Non-PRC entities | — | — | — | ||||||||
| | | | | | | | | | | |
Total | (3,880 | ) | 2,498 | 2,252 | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income tax expense | |||||||||||
PRC entities | 81,056 | 95,579 | 100,308 | ||||||||
Non-PRC entities | — | — | — | ||||||||
| | | | | | | | | | | |
Total | 81,056 | 95,579 | 100,308 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Reconciliation of the Differences Between Statutory Tax Rate and the Effective Tax Rate | |||||||||||
Reconciliation between the statutory EIT rate in the PRC and the Group's effective tax rate for the years ended December 31, 2011, 2012 and 2013 are as follows: | |||||||||||
2011 | 2012 | 2013 | |||||||||
EIT statutory rate | 25% | 25% | 25% | ||||||||
Difference in EIT rates of certain subsidiaries | (10 | )% | (10 | )% | (10 | )% | |||||
Non-deductibility of expenses incurred outside the PRC | 3% | 2% | 3% | ||||||||
Other permanent differences | — | (1 | )% | (1 | )% | ||||||
Change in valuation allowance | (1 | )% | 1% | — | |||||||
| | | | | | | | | | | |
Effective EIT rate of the Group | 17% | 17% | 17% | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income tax expense for the years ended December 31, 2011, 2012 and 2013 differs from the amounts computed by applying the EIT primarily due to the preferential tax rate enjoyed by Tech JV in the PRC. The aggregate amount and per share effect of the tax holidays are as follows: | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
(in thousands, except per share data) | |||||||||||
Aggregate effect | 46,225 | 57,889 | 63,361 | ||||||||
Basic net income per share effect | 0.81 | 1.01 | 1.08 | ||||||||
Diluted net income per share effect | 0.78 | 0.97 | 1.05 | ||||||||
Significant components of deferred tax assets and liabilities as of December 31, 2012 and 2013 are as follows: | |||||||||||
2012 | 2013 | ||||||||||
RMB | RMB | ||||||||||
Deductible temporary differences related to other payables and accruals | 7,232 | 8,712 | |||||||||
Deductible temporary differences related to provision for doubtful accounts | 1,448 | 1,062 | |||||||||
| | | | | | | | ||||
Total current deferred tax assets | 8,680 | 9,774 | |||||||||
Less: Valuation allowance | (37 | ) | (17 | ) | |||||||
| | | | | | | | ||||
Net current deferred tax assets | 8,643 | 9,757 | |||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Tax loss carryforwards | 471 | 4,005 | |||||||||
| | | | | | | | ||||
Amount offset by non-current deferred tax liabilities | — | (2,847 | ) | ||||||||
| | | | | | | | ||||
Total non-current deferred tax assets | 471 | 1,158 | |||||||||
Less: Valuation allowance | (471 | ) | (526 | ) | |||||||
| | | | | | | | ||||
Net non-current deferred tax assets | — | 632 | |||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Total deferred tax assets | 8,643 | 10,389 | |||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Taxable temporary differences related to depreciation period | (1,985 | ) | (2,587 | ) | |||||||
Taxable temporary differences related to subsidy income | — | (6,243 | ) | ||||||||
Amount offset by non-current deferred tax assets | — | 2,847 | |||||||||
| | | | | | | | ||||
Total non-current deferred tax liabilities | (1,985 | ) | (5,983 | ) | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Total deferred tax liabilities | (1,985 | ) | (5,983 | ) | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
All current deferred tax assets and liabilities within a single tax jurisdiction are offset and presented as a single amount, and all non-current deferred tax assets and liabilities within a single tax jurisdiction are offset and presented as a single amount in accordance with ASC 740-10-45-6 "Income Taxes—Overall—Other Presentation Matters." | |||||||||||
As of December 31, 2012 and 2013, valuation allowances were provided on the deferred tax assets to the extent that management believed it was more likely than not that such deferred tax assets would not be realized in the foreseeable future. Valuation allowances were also provided because it was more likely than not that the Group will not be able to utilize certain tax loss carryforwards generated by certain subsidiaries or VIE subsidiaries. As those entities continue to generate tax losses and tax planning strategies are not available to utilize those tax losses in other group companies, management believes it is more likely than not that such losses will not be utilized before they expire. However, certain valuation allowance was reversed in 2011, 2012 and 2013 when the Group generated sufficient taxable income to utilize the deferred tax assets. If events occur in the future that prevent the Group from realizing some or all of its deferred tax assets, an adjustment to the valuation allowances will be recognized when such events occur. In the PRC, tax loss carryforwards generally expire after five years. Tax loss carryforwards in the amount of RMB252 as of December 31, 2013 will expire beginning 2015. | |||||||||||
The following represents a roll-forward of the valuation allowance for each of the years: | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Balance at beginning of period | 1,498 | 554 | 508 | ||||||||
Additions | — | 508 | 385 | ||||||||
Reversals | (944 | ) | (554 | ) | (350 | ) | |||||
| | | | | | | | | | | |
Balance at end of period | 554 | 508 | 543 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||
9. SHARE-BASED COMPENSATION | ||||||||||||||
In September 2000, the Company adopted a share option plan ("2000 Option Plan") which provides for the issuance of up to 4,010,666 common shares. The total number of common shares reserved under the 2000 Option Plan was increased to 5,530,578 in February 2004 and to 7,530,578 in July 2006. The 2000 Option Plan expired in 2010 and issuances from this plan ceased in 2009. On April 30, 2009, the Company adopted a new share option plan ("2009 Option Plan"). The 2009 Option Plan provides for the issuance of up to 5,000,000 common shares. The total number of common shares reserved under the 2009 Option Plan was increased to 10,000,000 in December 2011. Under the option plans, the directors may, at their discretion, issue share options to purchase the Company's common shares to any senior executives, directors, employees or consultants of the Group. The share options are granted at the fair market value of the common shares at the date of grant and can be exercised within six years from the date of grant. | ||||||||||||||
The following table summarizes the Company's share option activity for the year ended December 31, 2013: | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of shares | average | average | intrinsic value | |||||||||||
exercise | remaining | (thousands) | ||||||||||||
price | contractual | |||||||||||||
life (years) | ||||||||||||||
Outstanding at January 1, 2013 | 5,267,540 | US$ | 18.01 | |||||||||||
Granted | 1,364,064 | US$ | 30.14 | |||||||||||
Exercised | 1,357,376 | US$ | 11.88 | |||||||||||
Forfeited | 32,804 | US$ | 23.79 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2013 | 5,241,424 | US$ | 22.71 | 3.7 | US$ | 85,100 | ||||||||
| | | | | | | | | | | | | | |
Vested and expected to vest at December 31, 2013 | 4,993,818 | US$ | 22.49 | 3.65 | US$ | 82,191 | ||||||||
| | | | | | | | | | | | | | |
Exercisable at December 31, 2013 | 2,513,568 | US$ | 17.66 | 2.71 | US$ | 53,515 | ||||||||
| | | | | | | | | | | | | | |
The aggregate intrinsic value in the table above represents the difference between the Company's closing stock price on the last trading day in 2013 and the exercise price for in-the-money options. | ||||||||||||||
The total intrinsic value of options exercised for the three years ended December 31, 2011, 2012 and 2013 was RMB41,546, RMB84,524 and RMB159,400 (US$26,331), respectively. | ||||||||||||||
As of December 31, 2013, there was RMB177,331 (US$29,293) of unrecognized share-based compensation cost related to non-vested share options. That deferred cost is expected to be recognized over a weighted average vesting period of 2.68 years. To the extent the actual forfeiture rate is different from the original estimate, actual share-based compensation related to these awards may be different from the expectation. For the year ended December 31, 2013, total cash received from the exercise of share options amounted to RMB99,681 (US$16,466). | ||||||||||||||
A summary of non-vested share option activity for the year ended December 31, 2013 is presented below: | ||||||||||||||
Number | Weighted | |||||||||||||
of shares | average | |||||||||||||
grant-date | ||||||||||||||
fair value | ||||||||||||||
Non-vested at January 1, 2013 | 2,668,000 | US$ | 9.17 | |||||||||||
| | | | | | | | |||||||
Granted | 1,364,064 | US$ | 11.61 | |||||||||||
Vested | 1,271,404 | US$ | 8.41 | |||||||||||
Forfeited | 32,804 | US$ | 9.6 | |||||||||||
| | | | | | | | |||||||
Non-vested at December 31, 2013 | 2,727,856 | US$ | 10.74 | |||||||||||
| | | | | | | | |||||||
Expected to vest at December 31, 2013 | 2,480,250 | US$ | 10.74 | |||||||||||
| | | | | | | | |||||||
There were no capitalized share-based compensation costs for the years ended December 31, 2011, 2012 and 2013. Share-based compensation expense with respect to the share option plans recognized during the years ended December 31, 2011, 2012 and 2013, totaled RMB37,974, RMB50,538 and RMB64,858 (US$10,714), respectively. The total fair value of share options vested during the year ended December 31, 2011, 2012 and 2013 was RMB29,059, RMB53,236 and RMB64,696 (US$10,687), respectively. | ||||||||||||||
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2013 | |
EMPLOYEE BENEFITS | ' |
EMPLOYEE BENEFITS | ' |
10. EMPLOYEE BENEFITS | |
The full-time employees of the Company's subsidiaries and VIE subsidiaries that are incorporated in the PRC are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance, pension benefits and housing fund. These companies are required to contribute to these benefits based on certain percentages of the employees' salaries in accordance with the relevant regulations and charge the amount contributed to these benefits to the consolidated statements of operations and comprehensive income. The total amounts charged to the consolidated statements of operations and comprehensive income for such employee benefits amounted to RMB83,985, RMB100,219 and RMB121,147 for the years ended December 31, 2011, 2012 and 2013, respectively. The PRC government is responsible for the welfare and medical benefits and ultimate pension liability to these employees. | |
RELATED_PARTY_TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Dec. 31, 2013 | |
RELATED PARTY TRANSACTION | ' |
RELATED PARTY TRANSACTION | ' |
11. RELATED PARTY TRANSACTION | |
In August 2007, the Company entered into a cooperation agreement with Recruit, which is a shareholder of the Company, to form a new company under Area Link to provide coupon advertising services in China. Under the agreement as amended in August 2009, the Company may provide up to RMB32,800 in financing to Area Link for the coupon company and has the ability to acquire up to 40% of Area Link's share capital. The Company completed the termination of the cooperation agreement with Recruit in December 2012. The Company did not provide financing to Area Link for the years ended December 31, 2011 and 2012. See Note 2(f). | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
EARNINGS PER SHARE | ' | ||||||||||
12. EARNINGS PER SHARE | |||||||||||
Basic earnings per share and diluted earnings per share have been calculated for the years ended December 31, 2011, 2012 and 2013 as follows: | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
(in thousands, except share and | |||||||||||
per share data) | |||||||||||
Numerator: | |||||||||||
Net income | 386,508 | 470,106 | 500,640 | ||||||||
| | | | | | | | | | | |
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted average common shares outstanding | 56,754,240 | 57,510,591 | 58,551,925 | ||||||||
Effect of dilutive share options | 2,313,184 | 1,864,532 | 1,517,272 | ||||||||
| | | | | | | | | | | |
Denominator for diluted earnings per share | 59,067,424 | 59,375,123 | 60,069,197 | ||||||||
| | | | | | | | | | | |
Basic earnings per share | 6.81 | 8.17 | 8.55 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted earnings per share | 6.54 | 7.92 | 8.33 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The Company excluded outstanding share options of 1,294,660 in 2011, 2,520,002 in 2012 and 2,707,713 in 2013 from the calculation of diluted earnings per common share because the exercise prices of these share options were greater than or equal to the average market value of the common shares. These options could be included in the calculation in the future if the average market value of the common shares increases and is greater than the exercise price of these options. | |||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||
13. COMMITMENTS AND CONTINGENCIES | |||||||||||
Operating Lease Commitments | |||||||||||
The Group has entered into non-cancelable agreements with initial or remaining terms in excess of one year for the rental and property management of office premises and for the lease of office equipment. Future minimum payments with respect to these agreements for the twelve months ending December 31 of the coming years are as follows: | |||||||||||
Office | Office | Total | |||||||||
premises | equipment | ||||||||||
RMB | RMB | RMB | |||||||||
2014 | 30,624 | 5,799 | 36,423 | ||||||||
2015 | 22,889 | 406 | 23,295 | ||||||||
2016 | 20,037 | 209 | 20,246 | ||||||||
2017 | 16,432 | — | 16,432 | ||||||||
2018 | 12,584 | — | 12,584 | ||||||||
Thereafter | 265 | — | 265 | ||||||||
| | | | | | | | | | | |
102,831 | 6,414 | 109,245 | |||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Rental expenses for the years ended December 31, 2011, 2012 and 2013 were RMB37,042, RMB39,708 and RMB44,537, respectively. | |||||||||||
Publication Fees | |||||||||||
The Group has entered into a non-cancelable agreement for the publication of 51job Weekly. Future minimum payments with respect to this agreement for the twelve months ending December 31, 2014 is RMB150. | |||||||||||
Contractual Purchase Obligations | |||||||||||
The Group's contractual purchase obligations consist of agreements to purchase advertising services from media companies and to purchase office furnishings. Future minimum payments with respect to these agreements for the twelve months ending December 31 of the coming year are as follows: | |||||||||||
Advertising services | Office furnishings | Total | |||||||||
RMB | RMB | RMB | |||||||||
2014 | 9,396 | 13,290 | 22,686 | ||||||||
Contingencies | |||||||||||
As of the filing date of this Form 20-F, the Group is not currently a party to, nor is aware of, any legal proceeding, investigation or claim which is likely to have a material adverse effect on the Group's business, financial condition, results of operations and cash flows. | |||||||||||
Tech JV obtained an advertising license in May 2000, when Tech JV was a 98% foreign owned entity, and a license to conduct human resource services in September 2002, when Tech JV was a 99% foreign owned entity. During the period from the date Tech JV acquired these licenses to the Group's restructuring in May 2004, Tech JV and its licensed PRC subsidiaries conducted all of the advertising and human resource related services. Following the acquisition of these licenses and commencing these operations, the PRC government enacted laws limiting foreign ownership in entities conducting advertising and human resource related services. The PRC government has permitted 100% foreign ownership of advertising businesses since December 2005 and has limited the foreign ownership of human resource services companies to no more than 70% under certain circumstances since August 2006. Starting from January 2008, the PRC government no longer implemented any foreign ownership percentage limitation for Hong Kong service providers and Macau service providers. | |||||||||||
Prior to the restructuring in May 2004, the ownership percentage of Tech JV was above the maximum foreign ownership permitted for an entity conducting advertising and human resource operations. The PRC government has not published an official ruling with respect to the status of foreign ownership arrangements that were established prior to the enactment of these limitations and the Group has not received any waiver from the PRC government with respect to this past non-compliance. The PRC government may determine that the Group's ownership structure was inconsistent with or insufficient for the proper operation of the Group's businesses, or that the Group's business licenses or other approvals were not properly issued or not sufficient. In the opinion of management with the advice of PRC legal counsel, the likelihood of loss with respect to the Group's past ownership structure is remote. | |||||||||||
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2013 | |
FINANCIAL INSTRUMENTS | ' |
FINANCIAL INSTRUMENTS | ' |
14. FINANCIAL INSTRUMENTS | |
Financial instruments of the Group are primarily comprised of cash, restricted cash, short-term investments, receivables, long-term investments and payables. The carrying values of cash, restricted cash, accounts receivable and payables approximated their estimated fair values due to the short-term maturities of these instruments. Short-term investments, which consist of certificates of deposits, are classified within Level 1 and the carrying values approximated their estimated fair values because such deposits bear market interest rates. Long-term investments consisted of non-interest bearing loans to Area Link, for which full impairment provision was provided in the year ended December 31, 2011. See Note 2(f). | |
CERTAIN_RISKS_AND_CONCENTRATIO
CERTAIN RISKS AND CONCENTRATION | 12 Months Ended |
Dec. 31, 2013 | |
CERTAIN RISKS AND CONCENTRATION | ' |
CERTAIN RISKS AND CONCENTRATION | ' |
15. CERTAIN RISKS AND CONCENTRATION | |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash, restricted cash, short-term investments and receivables. As of December 31, 2012 and 2013, the Group's cash, restricted cash and short-term investments were held in major financial institutions located in the PRC, Hong Kong and the United States which management believes are of high credit quality. As of December 31, 2013, the Company had approximately RMB2,866,033 (US$473,435) in cash and certificates of deposit in the PRC, which constitute about 91% of total cash, restricted cash and short-term investments. Approximately 61% of the Company's total cash, restricted cash and short-term investments were held at a branch of Bank of Nanjing in Shanghai, PRC. As PRC bank regulatory authorities are empowered to take over the operation and management of a PRC state-owned bank when it faces a material credit crisis, the Company does not foresee substantial credit risk with respect to cash and short-term investments held at PRC state-owned banks, such as Bank of Nanjing. However, in the event of bankruptcy of a financial institution in which the Company has deposits or investments, it may be unlikely to claim its deposits or investments back in full. | |
Receivables are typically unsecured and denominated in RMB, and are derived from revenues earned from operations or from payments made on behalf of certain customers arising in the PRC. Management believes credit risk on receivables is moderate due to the diversity of its services and customers. | |
No individual customer accounted for more than 10% of net revenues during the years ended December 31, 2011, 2012 and 2013. No individual customer accounted for more than 10% of accounts receivable as of December 31, 2012 and 2013. | |
Currency Convertibility Risk | |
The Group's sales and purchase and expense transactions are generally denominated in RMB and a significant portion of the Group's liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's Bank of China. | |
PRC Regulatory Risk | |
The Group is subject to regulatory risks, which include the interpretation of current tax laws, the legality of its corporate structure and the scope of its operations in the PRC, which may result in limitations on the Group's ability to conduct business in the PRC. In addition, the Group conducts some of its operations in China through VIEs and consolidates them pursuant to a series of contractual arrangements. If the contractual arrangements establishing the VIE structure are found to be in violation of any existing or future PRC laws, rules or regulations, the Group may be subject to penalties, which may include but not be limited to, the cancellation or revocation of the Group's business and operating licenses, being required to restructure the Group's operations or discontinue the Group's operating activities. The imposition of any of these or other penalties may result in a material and adverse effect on the Group's ability to conduct its operations. In such case, the Group may lose its rights to direct the activities of and receive economic benefits from its VIEs, which may result in deconsolidation of the VIEs. The Group's business, operating results and financial condition could also be materially and adversely affected by significant political, economic and social uncertainties in the PRC. | |
PRINCIPAL_ACCOUNTING_POLICIES_
PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PRINCIPAL ACCOUNTING POLICIES | ' | ||||||||||
Basis of Presentation and Use of Estimates | ' | ||||||||||
(a) | |||||||||||
Basis of Presentation and Use of Estimates | |||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). | |||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reported years. Management's significant estimates include those related to allowances for accounts receivable, allowances for prepayments and other current assets, fair values of options to purchase the Company's common shares, estimated useful lives of property and equipment and intangible assets, consolidation of VIEs, assessment of recoverability of long-term investments and deferred tax valuation allowance. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may materially differ from those estimates. | |||||||||||
Basis of Consolidation | ' | ||||||||||
(b) | |||||||||||
Basis of Consolidation | |||||||||||
The consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE subsidiaries of which the Company is the primary beneficiary. All significant transactions and balances between the Company, its subsidiaries and VIE subsidiaries have been eliminated upon consolidation. | |||||||||||
A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors; to cast majority of votes at the meeting of the board of directors; or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. | |||||||||||
The Company has adopted Accounting Standards Codification ("ASC") 810 "Consolidation" for all periods presented. It requires VIEs to be consolidated by the primary beneficiary of the entity. An entity is considered to be a VIE if certain conditions are present, such as if the equity investors in the entity do not have the characteristics of a controlling financial interest or the entity does not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. In determining whether the Company or its subsidiary is the primary beneficiary of a VIE, the Company considered whether it has the rights to a majority of the economic benefits and obligation to absorb a majority of the expected losses. In addition, the Company considered whether it has the power to direct activities that are significant to the VIE's economic performance, including the power to appoint senior management, right to direct company strategy, power to approve capital expenditure budgets, and power to establish and manage ordinary business operation procedures and internal regulations and systems. | |||||||||||
The Company's wholly owned subsidiaries include the following: | |||||||||||
• | |||||||||||
51net.com Inc. ("51net"), incorporated in the British Virgin Islands in August 1999; | |||||||||||
• | |||||||||||
51net Beijing, incorporated in the Cayman Islands in April 2000, which wholly owns Qian Cheng Wu You Network Information Technology (Beijing) Co., Ltd. ("WFOE"), incorporated in the PRC in July 2000; and | |||||||||||
• | |||||||||||
51net HR, incorporated in the Cayman Islands in April 2000, which owns 70% of Shanghai Wang Ju Human Resource Consulting Co., Ltd. ("Wang Ju"), incorporated in the PRC in October 2006. | |||||||||||
51net's principal subsidiaries include the following: | |||||||||||
• | |||||||||||
Qianjin Network Information Technology (Shanghai) Co., Ltd. ("Tech JV"), incorporated in the PRC in January 2000, which is 50% owned by 51net; | |||||||||||
• | |||||||||||
Wang Jin Information Technology (Shanghai) Co., Ltd. ("Wang Jin"), incorporated in the PRC in June 2004, which is wholly owned by 51net; | |||||||||||
• | |||||||||||
Shanghai Wang Ju Advertising Co., Ltd., incorporated in the PRC in June 2007, which is wholly owned by 51net; and | |||||||||||
• | |||||||||||
Wuhan Wang Cai Information Technology Co., Ltd., incorporated in the PRC in December 2009, which is wholly owned by Wang Jin. | |||||||||||
Tech JV's principal subsidiaries include the following: | |||||||||||
• | |||||||||||
Shanghai Qianjin Advertising Co., Ltd. ("AdCo"), incorporated in the PRC in June 2001, which is 80% owned by Tech JV; | |||||||||||
• | |||||||||||
Shanghai Wang Cai Advertising Co., Ltd. ("Wang Cai AdCo"), incorporated in the PRC in April 2005, which is jointly owned by Tech JV and AdCo; and | |||||||||||
• | |||||||||||
Shanghai Qianjin Zhong Cheng Human Resources Co., Ltd., incorporated in the PRC in December 2010; which is wholly owned by Tech JV. | |||||||||||
The Company's VIE subsidiaries include the following: | |||||||||||
• | |||||||||||
Beijing Run An Information Consultancy Co., Ltd. ("Run An"), incorporated in the PRC in January 1997, which wholly owns Beijing Qian Cheng Si Jin Advertising Co., Ltd. ("Qian Cheng") and owns 30% of Wang Ju; and | |||||||||||
• | |||||||||||
Qian Cheng, incorporated in the PRC in February 1999, which owns 20% of AdCo and effectively owns 50% of Tech JV by direct and indirect ownership through Qian Cheng's wholly owned subsidiary Wuhan Mei Hao Qian Cheng Advertising Co., Ltd. ("Wuhan AdCo"), incorporated in the PRC in August 2001. | |||||||||||
As of December 31, 2013 and for all years presented, the Company is the primary beneficiary of two VIEs, Run An and Qian Cheng, which were in existence prior to the establishment of the Company and are considered predecessors of the Group. The Company does not have any ownership interest in the VIEs, but through certain arrangements as described below, the Company receives all of the economic benefits, absorbs all of the expected losses and has the power to direct activities that are significant to the VIEs. In addition, through a call option agreement between 51net and Qian Cheng, 51net is able to purchase the equity interests in Tech JV that are held by Qian Cheng and Wuhan AdCo as well as the equity interests in AdCo and its subsidiaries that are held by Qian Cheng. As a result, Run An, Qian Cheng and all of Tech JV and AdCo are included in the consolidated financial statements, and the Company effectively holds all of the equity interests in its subsidiaries including the VIE subsidiaries. | |||||||||||
For the year ended December 31, 2011, the Company was also the primary beneficiary of Shanghai Run An Lian Information Consultancy Co., Ltd. ("RAL"), a VIE which was established in April 2004. On December 30, 2011, the Shanghai Administration for Industry and Commerce approved the closure of RAL, which was wholly owned by Run An. RAL previously held an Internet content provider license and a permit issued by the Shanghai human resources and social security bureau which allowed it to conduct human resource related services. | |||||||||||
Run An holds a human resource service permit issued by the Beijing human resources and social security bureau which allows it to provide recruitment, training and human resource consulting services. Run An is jointly owned by David Weimin Jin and Tao Wang, both of whom are executive officers of the Company. As of December 31, 2013, the registered capital of Run An was RMB6,000 and its accumulated loss was RMB1,345. | |||||||||||
Qian Cheng holds an advertisement license. Qian Cheng is wholly owned by Run An. As of December 31, 2013, the registered capital of Qian Cheng was RMB1,500 and its retained earnings were RMB783. | |||||||||||
As the consolidated VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. Currently, there is no contractual arrangement that could require the Company to provide additional financial support to the consolidated VIEs, but the Company may provide such support on a discretionary basis in the future, which could expose the Company to loss. | |||||||||||
The Group has entered into various agreements as related to its VIE subsidiaries. The key provisions of the agreements with the Company or its subsidiaries and the VIE subsidiaries or its shareholders are as follows: | |||||||||||
Technical and Consulting Service Agreements. WFOE has entered into technical and consulting service agreements with Run An and Qian Cheng, respectively, under which WFOE has the exclusive right, subject to certain exceptions, to provide technical services to Run An and Qian Cheng for service fees. WFOE did not issue any invoices to either Run An or Qian Cheng, and neither Run An nor Qian Cheng paid any fees to WFOE for the years ended December 31, 2011, 2012 and 2013. The technical and consulting service agreements with WFOE are valid to September 11, 2017 under the Run An agreement and valid to May 2, 2034 under the Qian Cheng agreement, and can only be terminated by WFOE during the term. Such term is renewable upon written consent of the parties. Although the renewal is upon mutual consent, WFOE may, through its power of attorney, direct Run An and, through Run An, cause Qian Cheng to renew the technical and consulting service agreements upon expiration. | |||||||||||
Equity Pledge Agreement. As security for the obligations of Run An under the technical and consulting service agreement and the obligations of Run An and its shareholders under the exclusive purchase option agreement described below, the shareholders of Run An have pledged all of their equity interest in Run An to WFOE. According to the pledge agreement, WFOE has the right to dispose of the pledged equity pursuant to PRC law in the event of default by Run An or its shareholders as provided in the pledge agreement. Additionally, the shareholders of Run An have agreed that they will not dispose of the pledged equity or take any actions that will prejudice WFOE's interest under the equity pledge agreements. The equity pledge agreement among WFOE, Run An and its shareholders was entered into on January 27, 2014 and shall expire two years after the fulfillment of all obligations under the Run An technical and consulting service agreement and the exclusive purchase option agreement. This pledge agreement, in combination with the exclusive purchase option agreement, contains content that is substantially the same as the pledge agreements entered into between WFOE and Run An's shareholders in September 2007 and between WFOE and Qian Cheng's shareholders in May 2004. This pledge agreement has been registered with the relevant bureau of the PRC State Administration for Industry and Commerce. | |||||||||||
Exclusive Purchase Option Agreement. WFOE has entered into an exclusive purchase option agreement with the shareholders of Run An, dated as of January 27, 2014, under which WFOE or its designee is granted an irrevocable option to purchase all or a portion of the equity interests in Run An at any time by issuing a written notice to the shareholders, subject to compliance with applicable PRC laws and regulations. The purchase price shall be equal to the contribution actually made by the shareholder for his equity interest in Run An. If the lowest price permitted under PRC law is above the contribution actually made by the shareholder, the premium shall be paid to Tech JV in accordance with the terms of the loan agreements described below. The exclusive purchase option agreement has the same term as the Run An technical and consulting service agreement. WFOE also has the exclusive right to terminate the agreement at any time by delivering a written notice to the shareholders of Run An. | |||||||||||
Powers of Attorney. In conjunction with the signing of the equity pledge agreement and the exclusive purchase option agreement, each of the shareholders of Run An has signed an irrevocable power of attorney to appoint WFOE, as attorney-in-fact to vote, by itself or any other person to be designated at its discretion, on all matters of Run An that need to be decided by its shareholders. Because Qian Cheng is a wholly owned subsidiary of Run An and Wuhan AdCo is a wholly owned subsidiary of Qian Cheng, through controlling all material matters of Run An (including but not limited to all material operational matters and the appointment and removal of directors and senior management), WFOE also has indirect control on all material matters of Qian Cheng and Wuhan AdCo. Each power of attorney was entered into on January 27, 2014 and will remain effective for as long as Run An exists. The shareholders of Run An are not entitled to terminate or amend the terms of the power of attorney without prior written consent from WFOE. | |||||||||||
Loan Agreements. Tech JV has entered into loan agreements dated as of September 11, 2007 for an aggregate amount of RMB6,000 with the shareholders of Run An, with the sole and exclusive purpose to fund the capitalization of Run An. The loans can be repaid only with the proceeds received from the transfer of the shareholders' equity interest in Run An to Tech JV or its designee. The interest-free loan agreements are valid to September 11, 2017, and the term may be extended upon written consent of the parties. | |||||||||||
Call Option Agreement. 51net has entered into a call option agreement with Qian Cheng dated as of August 1, 2002, and supplemented and amended as of May 3, 2004 and August 1, 2012, under which 51net or its designee is granted an irrevocable option to purchase all of Qian Cheng's equity interest in Tech JV and AdCo for RMB1,200 or, if such purchase price is not permissible under the applicable PRC laws, the lowest price permitted under then applicable PRC laws. In addition, Qian Cheng granted 51net an irrevocable option to purchase any and all of its equity interests in the subsidiaries of AdCo at the lowest price permitted under PRC laws. The call option agreement is valid to July 31, 2022, and the term may be extended upon written consent of the parties. | |||||||||||
Management monitors the regulatory risk associated with these contractual arrangements. The Company's PRC legal counsel has advised management that these contractual arrangements are not in violation of existing PRC laws, rules and regulations in all material aspects. Based on such advice and management's knowledge and experience, the Company believes that its contractual arrangements with its consolidated VIEs and their shareholders are valid, legally binding and in compliance with current PRC laws. However, there are substantial uncertainties regarding the interpretation and application of current or future PRC laws, rules and regulations that could limit the Company's ability to enforce these contractual arrangements. Management monitors the regulatory risk associated with these contractual arrangements. See Note 15 for further discussion. | |||||||||||
Summary financial information of the Group's VIEs included in the consolidated financial statements is as follows: | |||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
RMB | RMB | ||||||||||
Total assets | 7,038 | 7,180 | |||||||||
Total liabilities | 166 | 130 | |||||||||
For the year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Total revenues | 7,931 | 2,340 | 98 | ||||||||
Net income | 281 | 1,730 | 161 | ||||||||
For the year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Net cash (used in) provided by operating activities | (926 | ) | 1,400 | 274 | |||||||
Net cash used in investing activities | — | — | — | ||||||||
Net cash provided by financing activities | — | — | — | ||||||||
| | | | | | | | | | | |
Net (decrease) increase in cash | (926 | ) | 1,400 | 274 | |||||||
Cash, beginning of year | 5,929 | 5,003 | 6,403 | ||||||||
| | | | | | | | | | | |
Cash, end of year | 5,003 | 6,403 | 6,677 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Foreign Currencies | ' | ||||||||||
(c) | |||||||||||
Foreign Currencies | |||||||||||
The Group's functional and reporting currency is the Renminbi ("RMB"). Transactions denominated in currencies other than RMB are translated into RMB at the exchange rates quoted by the People's Bank of China prevailing at the dates of the transactions. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations and comprehensive income. Monetary assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the People's Bank of China at the balance sheet dates. All such exchange gains and losses are included in the consolidated statements of operations and comprehensive income. The exchange differences for translation of group companies' balances where RMB is not their functional currency are included in cumulative translation adjustments, which is a separate component of shareholders' equity in the consolidated financial statements. | |||||||||||
The unaudited United States dollar ("US$") amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the rate of US$1.00 =MB6.0537 on December 31, 2013, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2013, or at any other rate. | |||||||||||
Cash and Restricted Cash | ' | ||||||||||
(d) | |||||||||||
Cash and Restricted Cash | |||||||||||
Cash represents cash on hand and demand deposits placed with banks or other financial institutions. Restricted cash represents cash proceeds from the exercise of share options by the Company's employees, executives and directors held in a bank account which have yet to be transmitted to them. Included in the cash and restricted cash balances as of December 31, 2012 and 2013 are amounts denominated in United States dollars totaling US$33,572 and US$29,715, respectively (equivalent to approximately RMB211,017 and RMB181,169, based on the RMB to US$ exchange rate quoted by the People's Bank of China on December 31, 2012 and 2013, respectively). The Group receives substantially all of its revenues in RMB, which currently is neither a freely convertible currency nor can it be freely remitted out of China. | |||||||||||
Accounts Receivable | ' | ||||||||||
(e) | |||||||||||
Accounts Receivable | |||||||||||
Accounts receivable is presented net of allowance for doubtful accounts. The Company provides general and specific provisions for bad debts when facts and circumstances indicate that the receivable is unlikely to be collected. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. | |||||||||||
Investments | ' | ||||||||||
(f) | |||||||||||
Investments | |||||||||||
Short-term investments consist of certificates of deposit with original maturities between three months and one year. | |||||||||||
Long-term investments consist of non-interest bearing loans provided in 2007 and 2008 to Area Link Co., Ltd. ("Area Link"), which is the holding company of a coupon advertising services business in China. Area Link is affiliated with Recruit Holdings Co., Ltd. ("Recruit"), a shareholder of the Company. In the year ended December 31, 2011, the Company determined that the carrying value of long-term investments in Area Link was not recoverable and recognized a loss from impairment totaling RMB15,081. In the year ended December 31, 2012, the coupon advertising services business owned by Area Link was sold, the Company recognized a gain from sale with proceeds of RMB1,318, and this amount was included in other income. See Note 11. | |||||||||||
Investments are evaluated for impairment at the end of each period. Unrealized losses are recorded as impairment losses when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial conditions and near-term prospects of the issuers; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. | |||||||||||
Property and Equipment | ' | ||||||||||
(g) | |||||||||||
Property and Equipment | |||||||||||
Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis to allocate the cost of the assets to their estimated residual value over the following estimated useful lives: | |||||||||||
Estimated useful lives | |||||||||||
Land use rights | 32.42 to 50 years | ||||||||||
Building | 20 years | ||||||||||
Leasehold improvements | Lesser of the lease period or the estimated useful life | ||||||||||
Electronic equipment | 3 to 5 years | ||||||||||
Furniture and fixtures | 5 years | ||||||||||
Motor vehicles | 5 years | ||||||||||
Other assets | 5 years | ||||||||||
Intangible Assets | ' | ||||||||||
(h) | |||||||||||
Intangible Assets | |||||||||||
Intangible assets include purchased computer software and licenses and are amortized on a straight-line basis over their estimated useful lives, which range from five to ten years. | |||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||
(i) | |||||||||||
Impairment of Long-Lived Assets | |||||||||||
The Group has adopted ASC 360 "Property, Plant and Equipment," which addresses the financial accounting and reporting for the recognition and measurement of impairment losses for long-lived assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that carrying amount of an asset group may not be recoverable. The recoverability of an asset group is based on the undiscounted future cash flows the asset group is expected to generate and recognize an impairment loss when the estimated undiscounted future cash flows expected to result from the use of the asset group plus net proceeds expected from the disposition of the asset group, if any, are less than the carrying value of the asset group. If the Group identifies an impairment, the Group reduces the carrying amount of the asset group to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. No impairment of long-lived assets was recognized in the years ended December 31, 2011, 2012 and 2013. | |||||||||||
Revenue Recognition | ' | ||||||||||
(j) | |||||||||||
Revenue Recognition | |||||||||||
Online Recruitment Services Revenues | |||||||||||
The Group provides online recruitment advertising and other technical services through its www.51job.com website. The average display period of online recruitment services normally ranges from one week to one year. Fees for its online recruitment advertisement and other technical services are recognized as revenue ratably over the display period of the contract or when services are provided, collectibility is reasonably assured, and other criteria in accordance with ASC 605 "Revenue Recognition" ("ASC 605") are met. For a transaction involving multiple services, the Company recognizes revenue at relative fair value which is determined based on the Company's regular selling prices charged in unbundled arrangements. Cash received in advance of services are recognized as advance from customers. | |||||||||||
Print Advertising Revenues | |||||||||||
The Group provides recruitment advertising services through a weekly newspaper which is distributed in certain cities in the PRC. Arrangements for recruitment advertisement on the weekly newspaper are generally short-term in nature. Fees for these types of print recruitment advertising services are recognized as revenue when collectibility is reasonably assured, upon the publication of the advertisements and when other criteria in accordance with ASC 605 are met. Cash received in advance of services are recognized as advance from customers. | |||||||||||
Other Human Resource Related Revenues | |||||||||||
The Group also provides other value-added human resource products, such as business process outsourcing, training, campus recruitment, executive search and other services. Revenue is recognized when (i) persuasive evidence of an agreement exists, (ii) services are rendered, (iii) the sales price and terms are fixed or determinable, and (iv) the collection of the receivable is reasonably assured, as prescribed by ASC 605. | |||||||||||
Business and Related Taxes | |||||||||||
The Company's subsidiaries and its VIE subsidiaries are subject to business taxes and related surcharges on the revenues earned for services provided in the PRC. The applicable rate of business taxes is 5% after certain deductions. In the consolidated statements of operations and comprehensive income, business taxes and related surcharges for revenues earned are deducted from gross revenues to arrive at net revenues. | |||||||||||
Effective January 1, 2012, the PRC State Council instituted a pilot value-added tax ("VAT") reform program applicable to businesses in "selected modern service industries" in Shanghai. Under this program, businesses would switch from business tax payers to VAT payers and are permitted to offset input VAT supported by valid VAT invoices received from vendors against their VAT liability. As a result, some of the Company's subsidiaries became subject to VAT at a rate of 6% beginning January 1, 2012. In July 2012, the PRC Ministry of Finance announced that the VAT program would be expanded to additional trial regions, namely Beijing, Tianjin and the provinces of Jiangsu, Anhui, Zhejiang, Fujian, Hubei and Guangdong. Starting August 1, 2013, the VAT program was expanded to all regions in the PRC. This new VAT program and its expansion did not and are not expected to have a material impact on the Company's financial statements. | |||||||||||
Cost of Services | ' | ||||||||||
(k) | |||||||||||
Cost of Services | |||||||||||
Cost of services consist primarily of payroll compensation and related employee costs, subcontracting fees, printing and publishing expenses, and other expenses incurred by the Group which are directly attributable to the rendering of the Group's recruitment advertising and other human resource services. | |||||||||||
Sales and Marketing Expenses | ' | ||||||||||
(l) | |||||||||||
Sales and Marketing Expenses | |||||||||||
Sales and marketing expenses consist primarily of the Group's sales and marketing personnel payroll compensation and related employee costs and advertising and promotion expenses. Advertising and promotion expenses generally represent the cost of promotions to create or stimulate a positive image of the Group or a desire for the Group's services. Advertising and promotion expenses are charged to the consolidated statements of operations and comprehensive income when incurred and totaled RMB62,371, RMB65,667 and RMB80,307 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||
Share-Based Compensation | ' | ||||||||||
(m) | |||||||||||
Share-Based Compensation | |||||||||||
The Company accounts for share-based compensation arrangements with employees in accordance with ASC 718 "Compensation—Stock Compensation." It requires the Company to measure at the grant date the fair value of the stock-based award and recognize compensation costs, net of estimated forfeitures, on a straight-line basis, over the requisite service period. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. Risk-free interest rates are based on U.S. Treasury yield for the terms consistent with the expected life of award at the time of grant. Expected life takes into account vesting and contractual terms, employee demographics and historical exercise behavior, which the Company believes are useful reference points. The assumption for expected dividend yield is consistent with the Company's current policy of no dividend payout. The Company estimates expected volatility at the date of grant based on historical volatilities of the market price of its American depositary shares ("ADSs"). Forfeiture rate is estimated based on historical forfeiture patterns and adjusted to reflect future change in circumstances and facts, if any. If actual forfeitures differ from those estimates, the Company may need to revise those estimates used in subsequent periods. The weighted average fair value per stock option on grant date is RMB70.26, RMB60.88 and RMB70.30 for year ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||
For the years ended December 31, 2011, 2012 and 2013, the fair value of options granted was estimated with the following assumptions: | |||||||||||
2011 | 2012 | 2013 | |||||||||
Risk-free interest rate | 1.58 | % | 0.59 | % | 0.76 | % | |||||
Expected life (years) | 4 | 4 | 4 | ||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||
Volatility | 48 | % | 53 | % | 49 | % | |||||
Fair value of the common share on date of option grant | US$28.72 | US$23.79 | US$30.14 | ||||||||
Operating Leases | ' | ||||||||||
(n) | |||||||||||
Operating Leases | |||||||||||
Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases, net of any incentives received by the Group from the leasing company, are charged to the consolidated statements of operations and comprehensive income on a straight-line basis over the lease periods. | |||||||||||
Taxation | ' | ||||||||||
(o) | |||||||||||
Taxation | |||||||||||
The Company accounts for income taxes under the liability method. Under this method, deferred income taxes are recognized for the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities by applying enacted statutory rates applicable to future years in which the differences are expected to reverse. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of, the deferred tax assets will not be realized. | |||||||||||
The Company adopted ASC 740-10-25 "Income Taxes—Overall—Recognition" to account for uncertainties in income taxes effective January 1, 2007. The Company recognizes a tax benefit associated with an uncertain tax position when, in management's judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. The Company has elected to classify interest and penalties related to an uncertain tax position, if any and when required, as general and administrative expenses. In the years ended December 31, 2011, 2012 and 2013, the Company did not record any interest and penalties associated with uncertain tax positions as there were no uncertain tax positions. | |||||||||||
Statutory Reserves | ' | ||||||||||
(p) | |||||||||||
Statutory Reserves | |||||||||||
With the exception of Tech JV which is 50% owned by 51net, a British Virgin Islands company, and Wang Ju which is majority owned by 51net HR, a Cayman Islands company, the Group's subsidiaries and VIE subsidiaries incorporated in the PRC are required on an annual basis to allocate at least 10% of their after-tax profit, after the recovery of accumulated deficit to the statutory common reserve. The amount of allocation is calculated based on an entity's after-tax profit shown in its statutory financial statements which are prepared in accordance with PRC accounting standards and regulations until the reserve has reached 50% of the registered capital of each company. Once the total statutory common reserve fund reaches 50% of the registered capital of the respective companies, further appropriations are discretionary. The statutory common reserve fund is not distributable to shareholders except in the event of liquidation. Since 2008, the statutory common reserve fund for more than half of the Company's subsidiaries and VIE subsidiaries incorporated in the PRC had reached 50% of the registered capital of the respective companies. As a result, no appropriations were made by these entities to their respective statutory reserve funds in the years ended December 31, 2011, 2012 and 2013. With the exception of a few entities, all remaining subsidiaries whose total statutory common reserve fund had not reached 50% of its respective registered capital had accumulative losses as of December 31, 2011, 2012 and 2013. As a result, these entities did not make appropriations to their statutory reserve funds in the years ended December 31, 2011, 2012 and 2013. During the years ended December 31, 2011, 2012 and 2013, the Group's subsidiaries made total appropriations to their statutory common reserve fund in the amount of RMB521, RMB812 and RMB2,262, respectively. During the years ended December 31, 2012 and 2013, the Group made a reversal of RMB800 and RMB500, respectively, from the statutory common reserve fund to retained earnings due to the closure of certain subsidiaries. The statutory common reserve funds of these closed subsidiaries were distributed to their respective shareholders, which are ultimately held by the Group. No reversal of the statutory common reserve fund was made in the year ended December 31, 2011. | |||||||||||
In addition, the Group's subsidiaries and VIE subsidiaries incorporated in the PRC may, at the discretion of its board of directors, on an annual basis set aside the statutory common welfare fund, which can be used for staff welfare of the Group. No appropriations to the statutory common welfare fund were made for the years ended December 31, 2011, 2012 and 2013. During the years ended December 31, 2012 and 2013, the Group made a reversal of RMB400 and RMB250, respectively, from the statutory common welfare fund to retained earnings due to the closure of certain subsidiaries. The statutory common welfare funds of these closed subsidiaries were distributed to their respective shareholders, which are ultimately held by the Group. No reversal of the statutory common welfare fund was made in the year ended December 31, 2011. | |||||||||||
Appropriations to the statutory common reserve fund and the statutory common welfare fund are accounted for as a transfer from retained earnings to the statutory reserves. | |||||||||||
There are no legal requirements in the PRC to fund these reserves by transfer of cash to any restricted accounts, and the Group does not do so. These reserves are not distributable as cash dividends. | |||||||||||
Dividend | ' | ||||||||||
(q) | |||||||||||
Dividend | |||||||||||
Dividends are recognized when declared. PRC regulations currently permit payment of dividends only out of accumulated profits as determined in accordance with PRC accounting standards and regulations. Additionally, the Company's PRC subsidiaries and VIE subsidiaries can only distribute dividends after they have met the PRC requirements for appropriation to statutory reserves. See Note 2(p). In addition, the net assets of the Company's subsidiaries associated with their paid-in capital are not distributable in the form of dividends. Aggregate net assets of the Company's PRC subsidiaries not distributable in the form of dividends to the parent as a result of the aforesaid PRC regulations and related to the subsidiaries' paid-in capital were approximately RMB516,662 and RMB517,175, or 19.4% and 15.5% of total consolidated net assets as of December 31, 2012 and 2013, respectively. However, the PRC subsidiaries may transfer such net assets to the Company by other means, including through royalty and trademark license agreements or certain other contractual agreements, at the discretion of the Company without third party consent. | |||||||||||
Earnings Per Share | ' | ||||||||||
(r) | |||||||||||
Earnings Per Share | |||||||||||
In accordance with ASC 260 "Earnings Per Share," basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to common shareholders as adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of the common shares issuable upon the exercise of outstanding share options (using the treasury stock method). | |||||||||||
Fair Value Measurement | ' | ||||||||||
(s) | |||||||||||
Fair Value Measurement | |||||||||||
Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participates at the measurement date in accordance with ASC 820 "Fair Value Measurements and Disclosures" ("ASC 820"). When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. | |||||||||||
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||
Level 1—Observable inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities | |||||||||||
Level 2—Include other inputs that are directly or indirectly observable in the marketplace | |||||||||||
Level 3—Unobservable inputs which are supported by little or no market activity | |||||||||||
ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (i) market approach; (ii) income approach; and (iii) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. | |||||||||||
Segment Reporting | ' | ||||||||||
(t) | |||||||||||
Segment Reporting | |||||||||||
Based on the criteria established by ASC 280 "Segment Reporting," the Group currently operates and manages its business as a single operating and single reportable segment. The Group's chief operating decision-maker ("CODM") is the chief executive officer. The CODM reviews operating results to make decisions about allocating resources and assessing performance for the entire Group. The Group primarily generates its revenues from customers in the PRC, and assets of the Group are also located in PRC. Accordingly, no geographical segments are presented. | |||||||||||
Stock Repurchase | ' | ||||||||||
(u) | |||||||||||
Stock Repurchase | |||||||||||
When the Company's common shares are repurchased for retirement, the excess of cost over par value is charged entirely to additional paid-in capital, limited to additional paid-in capital of the same issue being retired. | |||||||||||
Comprehensive Income | ' | ||||||||||
(v) | |||||||||||
Comprehensive Income | |||||||||||
The Company has adopted ASC 220 "Comprehensive Income." Other comprehensive income/loss is defined as the change in equity of a company during the period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income mainly consists of cumulative foreign currency translation adjustments. | |||||||||||
Recent Accounting Pronouncements | ' | ||||||||||
(w) | |||||||||||
Recent Accounting Pronouncements | |||||||||||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" ("ASU 2013-02"). ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The adoption of ASU 2013-02 beginning on January 1, 2013 did not have a material impact on the Company's consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). ASU 2013-11 requires an entity to present an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, except for when a net operating loss carryforward is not available as of the reporting date to settle taxes that would result from the disallowance of the tax position or when the entity does not intend to use the deferred tax asset for purposes of reducing the net operating loss carry forward. ASU 2013-11 is effective for fiscal years beginning after December 15, 2013 and for interim periods within that fiscal year. The adoption of ASU 2013-11 is not expected to have a material impact on the Company's consolidated financial statements. | |||||||||||
PRINCIPAL_ACCOUNTING_POLICIES_1
PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PRINCIPAL ACCOUNTING POLICIES | ' | ||||||||||
Summary of financial information of Group's VIEs | ' | ||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
RMB | RMB | ||||||||||
Total assets | 7,038 | 7,180 | |||||||||
Total liabilities | 166 | 130 | |||||||||
For the year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Total revenues | 7,931 | 2,340 | 98 | ||||||||
Net income | 281 | 1,730 | 161 | ||||||||
For the year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Net cash (used in) provided by operating activities | (926 | ) | 1,400 | 274 | |||||||
Net cash used in investing activities | — | — | — | ||||||||
Net cash provided by financing activities | — | — | — | ||||||||
| | | | | | | | | | | |
Net (decrease) increase in cash | (926 | ) | 1,400 | 274 | |||||||
Cash, beginning of year | 5,929 | 5,003 | 6,403 | ||||||||
| | | | | | | | | | | |
Cash, end of year | 5,003 | 6,403 | 6,677 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of estimated useful lives of property and equipment | ' | ||||||||||
Estimated useful lives | |||||||||||
Land use rights | 32.42 to 50 years | ||||||||||
Building | 20 years | ||||||||||
Leasehold improvements | Lesser of the lease period or the estimated useful life | ||||||||||
Electronic equipment | 3 to 5 years | ||||||||||
Furniture and fixtures | 5 years | ||||||||||
Motor vehicles | 5 years | ||||||||||
Other assets | 5 years | ||||||||||
Schedule of assumptions used to estimate the fair value of stock options | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
Risk-free interest rate | 1.58 | % | 0.59 | % | 0.76 | % | |||||
Expected life (years) | 4 | 4 | 4 | ||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||
Volatility | 48 | % | 53 | % | 49 | % | |||||
Fair value of the common share on date of option grant | US$28.72 | US$23.79 | US$30.14 |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
ACCOUNTS RECEIVABLE | ' | ||||||||||
Schedule of accounts receivable | ' | ||||||||||
2012 | 2013 | ||||||||||
RMB | RMB | ||||||||||
Accounts receivable | 55,948 | 66,155 | |||||||||
Less: Allowance for doubtful accounts | (3,260 | ) | (3,347 | ) | |||||||
| | | | | | | | ||||
52,688 | 62,808 | ||||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of movement of allowance for doubtful accounts | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Balance at beginning of period | 1,965 | 2,022 | 3,260 | ||||||||
Additions | 801 | 1,575 | 789 | ||||||||
Write-offs | (744 | ) | (337 | ) | (702 | ) | |||||
| | | | | | | | | | | |
Balance at end of period | 2,022 | 3,260 | 3,347 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
PREPAYMENTS_AND_OTHER_CURRENT_1
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PREPAYMENTS AND OTHER CURRENT ASSETS | ' | |||||||
Schedule of prepayments and other current assets | ' | |||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Rental and other deposits | 1,461 | 3,413 | ||||||
Prepayments for rental and others | 10,603 | 15,386 | ||||||
Employee advances | 2,781 | 1,980 | ||||||
Payments made on behalf of customers | 226,485 | 271,015 | ||||||
Prepaid insurance premium | 975 | 1,072 | ||||||
Interest income receivable | 36,231 | 47,656 | ||||||
Unutilized input value-added tax | — | 3,167 | ||||||
Others | 1,706 | 1,372 | ||||||
| | | | | | | | |
Total | 280,242 | 345,061 | ||||||
| | | | | | | | |
| | | | | | | | |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
Schedule of property and equipment | ' | |||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Land and building | 289,536 | 526,294 | ||||||
Leasehold improvements | 14,075 | 19,902 | ||||||
Electronic equipment | 94,530 | 110,863 | ||||||
Furniture and fixtures | 10,305 | 10,376 | ||||||
Motor vehicles | 7,067 | 6,880 | ||||||
Other assets | 11,378 | 13,928 | ||||||
Less: Accumulated depreciation | (146,234 | ) | (168,966 | ) | ||||
| | | | | | | | |
Net book value | 280,657 | 519,277 | ||||||
| | | | | | | | |
| | | | | | | | |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INTANGIBLE ASSETS | ' | |||||||
Schedule of intangible assets | ' | |||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Computer equipment software | 21,448 | 20,392 | ||||||
Acquired training licenses | 3,522 | 3,522 | ||||||
Less: Accumulated amortization | (21,051 | ) | (20,262 | ) | ||||
| | | | | | | | |
Net book value | 3,919 | 3,652 | ||||||
| | | | | | | | |
| | | | | | | | |
OTHER_PAYABLES_AND_ACCRUALS_Ta
OTHER PAYABLES AND ACCRUALS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
OTHER PAYABLES AND ACCRUALS | ' | |||||||
Schedule of other payables and accruals | ' | |||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Professional service fees | 1,920 | 3,792 | ||||||
Office expenses | 6,632 | 6,567 | ||||||
Receipts from customers | 84,248 | 191,829 | ||||||
Revenue from newspaper sales collected on behalf of newspaper contractors | 178 | — | ||||||
Payables to employees related to net proceeds from share options exercised | 9,466 | 9,416 | ||||||
Others | 1,121 | 1,374 | ||||||
| | | | | | | | |
Total | 103,565 | 212,978 | ||||||
| | | | | | | | |
| | | | | | | | |
TAXATION_Tables
TAXATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
TAXATION | ' | ||||||||||
Schedule of income (loss) before income tax expense taxed between jurisdictions | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
PRC entities | 526,236 | 608,637 | 665,131 | ||||||||
Non-PRC entities | (58,672 | ) | (42,952 | ) | (64,183 | ) | |||||
| | | | | | | | | | | |
Total | 467,564 | 565,685 | 600,948 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of current and deferred portion of income tax expense included in the consolidated statements of operations and comprehensive income | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Current income tax expense | |||||||||||
PRC entities | 84,936 | 93,081 | 98,056 | ||||||||
Non-PRC entities | — | — | — | ||||||||
| | | | | | | | | | | |
Total | 84,936 | 93,081 | 98,056 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Deferred income tax expense (benefit) | |||||||||||
PRC entities | (3,880 | ) | 2,498 | 2,252 | |||||||
Non-PRC entities | — | — | — | ||||||||
| | | | | | | | | | | |
Total | (3,880 | ) | 2,498 | 2,252 | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income tax expense | |||||||||||
PRC entities | 81,056 | 95,579 | 100,308 | ||||||||
Non-PRC entities | — | — | — | ||||||||
| | | | | | | | | | | |
Total | 81,056 | 95,579 | 100,308 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation between the statutory EIT rate in the PRC and the Group's effective tax rate | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
EIT statutory rate | 25% | 25% | 25% | ||||||||
Difference in EIT rates of certain subsidiaries | (10 | )% | (10 | )% | (10 | )% | |||||
Non-deductibility of expenses incurred outside the PRC | 3% | 2% | 3% | ||||||||
Other permanent differences | — | (1 | )% | (1 | )% | ||||||
Change in valuation allowance | (1 | )% | 1% | — | |||||||
| | | | | | | | | | | |
Effective EIT rate of the Group | 17% | 17% | 17% | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of aggregate amount and per share effect of the tax holidays | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
(in thousands, except per share data) | |||||||||||
Aggregate effect | 46,225 | 57,889 | 63,361 | ||||||||
Basic net income per share effect | 0.81 | 1.01 | 1.08 | ||||||||
Diluted net income per share effect | 0.78 | 0.97 | 1.05 | ||||||||
Schedule of significant components of deferred tax assets and liabilities | ' | ||||||||||
2012 | 2013 | ||||||||||
RMB | RMB | ||||||||||
Deductible temporary differences related to other payables and accruals | 7,232 | 8,712 | |||||||||
Deductible temporary differences related to provision for doubtful accounts | 1,448 | 1,062 | |||||||||
| | | | | | | | ||||
Total current deferred tax assets | 8,680 | 9,774 | |||||||||
Less: Valuation allowance | (37 | ) | (17 | ) | |||||||
| | | | | | | | ||||
Net current deferred tax assets | 8,643 | 9,757 | |||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Tax loss carryforwards | 471 | 4,005 | |||||||||
| | | | | | | | ||||
Amount offset by non-current deferred tax liabilities | — | (2,847 | ) | ||||||||
| | | | | | | | ||||
Total non-current deferred tax assets | 471 | 1,158 | |||||||||
Less: Valuation allowance | (471 | ) | (526 | ) | |||||||
| | | | | | | | ||||
Net non-current deferred tax assets | — | 632 | |||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Total deferred tax assets | 8,643 | 10,389 | |||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Taxable temporary differences related to depreciation period | (1,985 | ) | (2,587 | ) | |||||||
Taxable temporary differences related to subsidy income | — | (6,243 | ) | ||||||||
Amount offset by non-current deferred tax assets | — | 2,847 | |||||||||
| | | | | | | | ||||
Total non-current deferred tax liabilities | (1,985 | ) | (5,983 | ) | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Total deferred tax liabilities | (1,985 | ) | (5,983 | ) | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of movement in valuation allowance | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
Balance at beginning of period | 1,498 | 554 | 508 | ||||||||
Additions | — | 508 | 385 | ||||||||
Reversals | (944 | ) | (554 | ) | (350 | ) | |||||
| | | | | | | | | | | |
Balance at end of period | 554 | 508 | 543 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||
Summary of share option activity | ' | |||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of shares | average | average | intrinsic value | |||||||||||
exercise | remaining | (thousands) | ||||||||||||
price | contractual | |||||||||||||
life (years) | ||||||||||||||
Outstanding at January 1, 2013 | 5,267,540 | US$ | 18.01 | |||||||||||
Granted | 1,364,064 | US$ | 30.14 | |||||||||||
Exercised | 1,357,376 | US$ | 11.88 | |||||||||||
Forfeited | 32,804 | US$ | 23.79 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2013 | 5,241,424 | US$ | 22.71 | 3.7 | US$ | 85,100 | ||||||||
| | | | | | | | | | | | | | |
Vested and expected to vest at December 31, 2013 | 4,993,818 | US$ | 22.49 | 3.65 | US$ | 82,191 | ||||||||
| | | | | | | | | | | | | | |
Exercisable at December 31, 2013 | 2,513,568 | US$ | 17.66 | 2.71 | US$ | 53,515 | ||||||||
| | | | | | | | | | | | | | |
Summary of non-vested share option activity | ' | |||||||||||||
Number | Weighted | |||||||||||||
of shares | average | |||||||||||||
grant-date | ||||||||||||||
fair value | ||||||||||||||
Non-vested at January 1, 2013 | 2,668,000 | US$ | 9.17 | |||||||||||
| | | | | | | | |||||||
Granted | 1,364,064 | US$ | 11.61 | |||||||||||
Vested | 1,271,404 | US$ | 8.41 | |||||||||||
Forfeited | 32,804 | US$ | 9.6 | |||||||||||
| | | | | | | | |||||||
Non-vested at December 31, 2013 | 2,727,856 | US$ | 10.74 | |||||||||||
| | | | | | | | |||||||
Expected to vest at December 31, 2013 | 2,480,250 | US$ | 10.74 | |||||||||||
| | | | | | | |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
Schedule of basic earnings per share and diluted earnings per share | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
RMB | RMB | RMB | |||||||||
(in thousands, except share and | |||||||||||
per share data) | |||||||||||
Numerator: | |||||||||||
Net income | 386,508 | 470,106 | 500,640 | ||||||||
| | | | | | | | | | | |
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted average common shares outstanding | 56,754,240 | 57,510,591 | 58,551,925 | ||||||||
Effect of dilutive share options | 2,313,184 | 1,864,532 | 1,517,272 | ||||||||
| | | | | | | | | | | |
Denominator for diluted earnings per share | 59,067,424 | 59,375,123 | 60,069,197 | ||||||||
| | | | | | | | | | | |
Basic earnings per share | 6.81 | 8.17 | 8.55 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted earnings per share | 6.54 | 7.92 | 8.33 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||
Schedule of future minimum payments relating to operating lease commitments | ' | ||||||||||
Future minimum payments with respect to these agreements for the twelve months ending December 31 of the coming years are as follows: | |||||||||||
Office | Office | Total | |||||||||
premises | equipment | ||||||||||
RMB | RMB | RMB | |||||||||
2014 | 30,624 | 5,799 | 36,423 | ||||||||
2015 | 22,889 | 406 | 23,295 | ||||||||
2016 | 20,037 | 209 | 20,246 | ||||||||
2017 | 16,432 | — | 16,432 | ||||||||
2018 | 12,584 | — | 12,584 | ||||||||
Thereafter | 265 | — | 265 | ||||||||
| | | | | | | | | | | |
102,831 | 6,414 | 109,245 | |||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of future minimum payments with respect to contractual purchase obligations | ' | ||||||||||
Future minimum payments with respect to these agreements for the twelve months ending December 31 of the coming year are as follows: | |||||||||||
Advertising services | Office furnishings | Total | |||||||||
RMB | RMB | RMB | |||||||||
2014 | 9,396 | 13,290 | 22,686 |
PRINCIPAL_ACCOUNTING_POLICIES_2
PRINCIPAL ACCOUNTING POLICIES (Details) (CNY) | 0 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jan. 27, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 11, 2007 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
item | item | item | 51net HR | 51net | Tech JV | Run An | Run An | Run An | Qian Cheng | Qian Cheng | Qian Cheng | ||
Wang Ju | Tech JV | AdCo | Wang Ju | Tech JV | AdCo | ||||||||
Basis of consolidation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in subsidiary (as a percent) | ' | ' | ' | ' | 70.00% | 50.00% | 80.00% | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | 50.00% | 20.00% |
Number of consolidated VIEs | ' | 2 | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered capital | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | 1,500 | ' | ' |
Retained earnings/(Accumulated loss) | ' | ' | ' | ' | ' | ' | ' | -1,345 | ' | ' | 783 | ' | ' |
Expiration term of equity pledge agreement | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest-free loans to shareholders of VIEs | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' |
Purchase price for Qian Cheng's equity interest in Tech JV and AdCo under the call option agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200 | ' | ' |
PRINCIPAL_ACCOUNTING_POLICIES_3
PRINCIPAL ACCOUNTING POLICIES (Details 2) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | The Group's VIEs | The Group's VIEs | The Group's VIEs | |
CNY | CNY | CNY | |||||
Financial information of the Group's VIEs | ' | ' | ' | ' | ' | ' | ' |
Total assets | ' | ' | ' | ' | 7,180 | 7,038 | ' |
Total liabilities | ' | ' | ' | ' | 130 | 166 | ' |
Total revenues | 276,978 | 1,676,741 | 1,512,249 | 1,370,099 | 98 | 2,340 | 7,931 |
Net income | 82,700 | 500,640 | 470,106 | 386,508 | 161 | 1,730 | 281 |
Net cash (used in) provided by operating activities | 123,331 | 746,611 | 574,560 | 496,955 | 274 | 1,400 | -926 |
Net cash used in investing activities | -148,138 | -896,784 | -275,073 | -923,370 | ' | ' | ' |
Net cash provided by financing activities | 16,466 | 99,681 | 39,818 | 25,912 | ' | ' | ' |
Net (decrease) increase in cash | -9,418 | -57,014 | 338,858 | -409,189 | 274 | 1,400 | -926 |
Cash, beginning of year | 185,433 | 1,122,557 | 783,699 | 1,192,888 | 6,403 | 5,003 | 5,929 |
Cash, end of year | $176,015 | 1,065,543 | 1,122,557 | 783,699 | 6,677 | 6,403 | 5,003 |
PRINCIPAL_ACCOUNTING_POLICIES_4
PRINCIPAL ACCOUNTING POLICIES (Details 3) | 12 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
CNY | CNY | CNY | Minimum | Minimum | Maximum | Maximum | Land use rights | Land use rights | Building | Leasehold improvements | Electronic equipment | Electronic equipment | Furniture and fixtures | Motor vehicles | Other assets | Denominated in United States dollars | Denominated in United States dollars | Denominated in United States dollars | Denominated in United States dollars | |
Minimum | Maximum | Minimum | Maximum | USD ($) | CNY | USD ($) | CNY | |||||||||||||
Principal accounting policies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange rate used for conversion of RMB into U.S. dollars in the financial statements | 6.0537 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cash and restricted cash held in U.S. dollars | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $29,715 | 181,169 | $33,572 | 211,017 |
Loss from impairment of long-term investments | ' | ' | 15,081 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of coupon advertising services business | ' | 1,318 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | ' | ' | ' | ' | '32 years 5 months 1 day | '50 years | '20 years | ' | '3 years | '5 years | '5 years | '5 years | '5 years | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Lesser of the lease period or the estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of intangible assets | ' | ' | ' | '5 years | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets recognized | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Display period of online recruitment services | ' | ' | ' | ' | '7 days | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business tax rate (as a percent) | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value-added tax rate (as a percent) | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising and promotion expenses | 80,307 | 65,667 | 62,371 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PRINCIPAL_ACCOUNTING_POLICIES_5
PRINCIPAL ACCOUNTING POLICIES (Details 4) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | |
USD ($) | CNY | CNY | CNY | USD ($) | USD ($) | |
Share based compensation | ' | ' | ' | ' | ' | ' |
Weighted average fair value per stock option on grant date (in dollars or CNY per share) | $11.61 | 70.3 | 60.88 | 70.26 | ' | ' |
Risk-free interest rate (as a percent) | 0.76% | 0.76% | 0.59% | 1.58% | ' | ' |
Expected life (years) | '4 years | '4 years | '4 years | '4 years | ' | ' |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' |
Volatility (as a percent) | 49.00% | 49.00% | 53.00% | 48.00% | ' | ' |
Fair value of the common share on date of option grant (in dollars per share) | $30.14 | ' | ' | ' | $23.79 | $28.72 |
PRINCIPAL_ACCOUNTING_POLICIES_6
PRINCIPAL ACCOUNTING POLICIES (Details 5) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
PRINCIPAL ACCOUNTING POLICIES | ' | ' | ' |
Uncertain tax positions | 0 | 0 | 0 |
Principal accounting policies | ' | ' | ' |
Percentage allocation of annual after-tax profit to statutory common reserve | 10.00% | ' | ' |
Statutory common reserve as a percentage of registered capital reached | 50.00% | ' | ' |
Total appropriations to the statutory common reserve fund | 2,262 | 812 | 521 |
Amount reversed from the statutory common reserve fund | 500 | 800 | 0 |
Appropriations to the statutory common welfare fund | 0 | 0 | 0 |
Amount reversed from statutory common welfare fund | 250 | 400 | 0 |
Net assets not distributable | 517,175 | 516,662 | ' |
Aggregate net assets not distributable as percentage of total consolidated net assets | 15.50% | 19.40% | ' |
51net | Tech JV | ' | ' | ' |
Principal accounting policies | ' | ' | ' |
Ownership interest in subsidiary (as a percent) | 50.00% | ' | ' |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | CNY | CNY |
ACCOUNTS RECEIVABLE | ' | ' | ' | ' | ' |
Accounts receivable | ' | 66,155 | 55,948 | ' | ' |
Less: Allowance for doubtful accounts | ' | -3,347 | -3,260 | -2,022 | -1,965 |
Accounts receivable, net | $10,375 | 62,808 | 52,688 | ' | ' |
ACCOUNTS_RECEIVABLE_Details_2
ACCOUNTS RECEIVABLE (Details 2) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts | ' | ' | ' |
Balance at beginning of period | 3,260 | 2,022 | 1,965 |
Additions | 789 | 1,575 | 801 |
Write-offs | -702 | -337 | -744 |
Balance at end of period | 3,347 | 3,260 | 2,022 |
PREPAYMENTS_AND_OTHER_CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
PREPAYMENTS AND OTHER CURRENT ASSETS | ' | ' | ' |
Rental and other deposits | ' | 3,413 | 1,461 |
Prepayments for rental and others | ' | 15,386 | 10,603 |
Employee advances | ' | 1,980 | 2,781 |
Payments made on behalf of customers | ' | 271,015 | 226,485 |
Prepaid insurance premium | ' | 1,072 | 975 |
Interest income receivable | ' | 47,656 | 36,231 |
Unutilized input value-added tax | ' | 3,167 | ' |
Others | ' | 1,372 | 1,706 |
Total | 57,000 | 345,061 | 280,242 |
Allowance for payments made on behalf of customers | ' | 3,632 | 6,079 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | Land and building | Land and building | Leasehold improvements | Leasehold improvements | Electronic equipment | Electronic equipment | Furniture and fixtures | Furniture and fixtures | Motor vehicles | Motor vehicles | Other assets | Other assets | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross book value | ' | ' | ' | ' | 526,294 | 289,536 | 19,902 | 14,075 | 110,863 | 94,530 | 10,376 | 10,305 | 6,880 | 7,067 | 13,928 | 11,378 |
Less: Accumulated depreciation | ' | -168,966 | -146,234 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net book value | 85,778 | 519,277 | 280,657 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense | 5,264 | 31,867 | 27,496 | 26,389 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss due to disposal of fixed assets | $28 | 171 | 65 | 141 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | Computer equipment software | Computer equipment software | Acquired training licenses | Acquired training licenses |
CNY | CNY | CNY | CNY | ||||
Intangible assets | ' | ' | ' | ' | ' | ' | ' |
Gross book value | ' | ' | ' | 20,392 | 21,448 | 3,522 | 3,522 |
Less: Accumulated amortization | ' | -20,262 | -21,051 | ' | ' | ' | ' |
Net book value | $603 | 3,652 | 3,919 | ' | ' | ' | ' |
INTANGIBLE_ASSETS_Details_2
INTANGIBLE ASSETS (Details 2) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
INTANGIBLE ASSETS | ' | ' | ' | ' |
Amortization expense | $301 | 1,824 | 1,500 | 1,615 |
Estimated amortization expenses | ' | ' | ' | ' |
2014 | ' | 1,464 | ' | ' |
2015 | ' | 909 | ' | ' |
2016 | ' | 603 | ' | ' |
2017 | ' | 509 | ' | ' |
2018 | ' | 167 | ' | ' |
OTHER_PAYABLES_AND_ACCRUALS_De
OTHER PAYABLES AND ACCRUALS (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
OTHER PAYABLES AND ACCRUALS | ' | ' | ' |
Professional service fees | ' | 3,792 | 1,920 |
Office expenses | ' | 6,567 | 6,632 |
Receipts from customers | ' | 191,829 | 84,248 |
Revenue from newspaper sales collected on behalf of newspaper contractors | ' | ' | 178 |
Payables to employees related to net proceeds from share options exercised | ' | 9,416 | 9,466 |
Others | ' | 1,374 | 1,121 |
Total | $35,182 | 212,978 | 103,565 |
TAXATION_Details
TAXATION (Details) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TAXATION | ' | ' | ' |
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% |
Withholding income tax rate (as a percent) | 10.00% | ' | ' |
Cumulative undistributed earnings of the Company's PRC subsidiaries | 2,505,576 | 1,941,315 | ' |
Unrecognized deferred tax liability of the Company's PRC subsidiaries | 250,558 | 194,132 | ' |
Tech JV | ' | ' | ' |
TAXATION | ' | ' | ' |
Preferential income tax rate for High and New Technology Enterprise (as a percent) | 15.00% | ' | ' |
Review frequency of the qualifications for High and New Technology Enterprise | '3 years | ' | ' |
Hong Kong | ' | ' | ' |
TAXATION | ' | ' | ' |
Withholding income tax rate for Hong Kong (as a percent) | 5.00% | ' | ' |
Hong Kong | 51net | ' | ' | ' |
TAXATION | ' | ' | ' |
Income tax rate (as a percent) | 16.50% | ' | ' |
China | ' | ' | ' |
TAXATION | ' | ' | ' |
Income tax rate (as a percent) | 25.00% | ' | ' |
TAXATION_Details_2
TAXATION (Details 2) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
Composition of Income Tax Expense | ' | ' | ' | ' |
Income (loss) before income tax expense - PRC entities | ' | 665,131 | 608,637 | 526,236 |
Income (loss) before income tax expense - Non-PRC entities | ' | -64,183 | -42,952 | -58,672 |
Income before income tax expense | $99,270 | 600,948 | 565,685 | 467,564 |
TAXATION_Details_3
TAXATION (Details 3) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
Current income tax expense | ' | ' | ' | ' |
PRC entities | ' | 98,056 | 93,081 | 84,936 |
Total | ' | 98,056 | 93,081 | 84,936 |
Deferred income tax expense (benefit) | ' | ' | ' | ' |
PRC entities | ' | 2,252 | 2,498 | -3,880 |
Total | 372 | 2,252 | 2,498 | -3,880 |
Income tax expense | ' | ' | ' | ' |
PRC entities | ' | 100,308 | 95,579 | 81,056 |
Total | $16,570 | 100,308 | 95,579 | 81,056 |
TAXATION_Details_4
TAXATION (Details 4) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of the Differences Between Statutory Tax Rate and the Effective Tax Rate | ' | ' | ' |
EIT statutory rate (as a percent) | 25.00% | 25.00% | 25.00% |
Difference in EIT rates of certain subsidiaries (as a percent) | -10.00% | -10.00% | -10.00% |
Non-deductibility of expenses incurred outside the PRC (as a percent) | 3.00% | 2.00% | 3.00% |
Other permanent differences (as a percent) | -1.00% | -1.00% | ' |
Change in valuation allowance (as a percent) | ' | 1.00% | -1.00% |
Effective EIT rate of the Group (as a percent) | 17.00% | 17.00% | 17.00% |
TAXATION_Details_5
TAXATION (Details 5) (CNY) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TAXATION | ' | ' | ' |
Aggregate effect | 63,361 | 57,889 | 46,225 |
Basic net income per share effect (in CNY per share) | 1.08 | 1.01 | 0.81 |
Diluted net income per share effect (in CNY per share) | 1.05 | 0.97 | 0.78 |
TAXATION_Details_6
TAXATION (Details 6) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | |
TAXATION | ' | ' | ' |
Deductible temporary differences related to other payables and accruals | ' | 8,712 | 7,232 |
Deductible temporary differences related to provision for doubtful accounts | ' | 1,062 | 1,448 |
Total current deferred tax assets | ' | 9,774 | 8,680 |
Less: Valuation allowance | ' | -17 | -37 |
Net current deferred tax assets | ' | 9,757 | 8,643 |
Tax loss carryforwards | ' | 4,005 | 471 |
Amount offset by non-current deferred tax liabilities | ' | -2,847 | ' |
Total non-current deferred tax assets | ' | 1,158 | 471 |
Less: Valuation allowance | ' | -526 | -471 |
Net non-current deferred tax assets | 105 | 632 | ' |
Total deferred tax assets | ' | 10,389 | 8,643 |
Taxable temporary differences related to depreciation period | ' | -2,587 | -1,985 |
Taxable temporary differences related to subsidy income | ' | -6,243 | ' |
Amount offset by non-current deferred tax assets | ' | 2,847 | ' |
Total non-current deferred tax liabilities | -988 | -5,983 | -1,985 |
Total deferred tax liabilities | ' | -5,983 | -1,985 |
Tax loss carryforwards, expiration year | '5 years | '5 years | ' |
Tax loss carryforwards | ' | 252 | ' |
TAXATION_Details_7
TAXATION (Details 7) (Valuation allowance - Deferred tax assets, CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation allowance - Deferred tax assets | ' | ' | ' |
Roll forward of the valuation allowance | ' | ' | ' |
Balance at beginning of period | 508 | 554 | 1,498 |
Additions | 385 | 508 | ' |
Reversals | -350 | -554 | -944 |
Balance at end of period | 543 | 508 | 554 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) | 1 Months Ended | 0 Months Ended | |||
Sep. 30, 2000 | Jul. 31, 2006 | Feb. 29, 2004 | Apr. 30, 2009 | Dec. 31, 2011 | |
2000 Option Plan | 2000 Option Plan | 2000 Option Plan | 2009 Option Plan | 2009 Option Plan | |
SHARE-BASED COMPENSATION | ' | ' | ' | ' | ' |
Common shares reserved for issuance under share option plan | 4,010,666 | 7,530,578 | 5,530,578 | 5,000,000 | 10,000,000 |
Period from the date of grant to exercise the share options | '6 years | ' | ' | '6 years | ' |
SHAREBASED_COMPENSATION_Detail1
SHARE-BASED COMPENSATION (Details 2) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
Number of shares | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 5,267,540 | 5,267,540 | ' | ' |
Granted (in shares) | 1,364,064 | 1,364,064 | ' | ' |
Exercised (in shares) | 1,357,376 | 1,357,376 | ' | ' |
Forfeited (in shares) | 32,804 | 32,804 | ' | ' |
Outstanding at the end of the period (in shares) | 5,241,424 | 5,241,424 | ' | ' |
Vested and expected to vest at the end of the period (in shares) | 4,993,818 | 4,993,818 | ' | ' |
Exercisable at the end of the period (in shares) | 2,513,568 | 2,513,568 | ' | ' |
Weighted average exercise price | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $18.01 | ' | ' | ' |
Granted (in dollars per share) | $30.14 | ' | ' | ' |
Exercised (in dollars per share) | $11.88 | ' | ' | ' |
Forfeited (in dollars per share) | $23.79 | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | $22.71 | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars per share) | $22.49 | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | $17.66 | ' | ' | ' |
Weighted average remaining contractual life | ' | ' | ' | ' |
Outstanding at the end of the period | '3 years 8 months 12 days | '3 years 8 months 12 days | ' | ' |
Vested and expected to vest at the end of the period | '3 years 7 months 24 days | '3 years 7 months 24 days | ' | ' |
Exercisable at the end of the period | '2 years 8 months 16 days | '2 years 8 months 16 days | ' | ' |
Aggregate intrinsic value | ' | ' | ' | ' |
Outstanding at the end of the period | $85,100 | ' | ' | ' |
Vested and expected to vest at the end of the period | 82,191 | ' | ' | ' |
Exercisable at the end of the period | 53,515 | ' | ' | ' |
Total intrinsic value of options exercised | 26,331 | 159,400 | 84,524 | 41,546 |
Unrecognized share-based compensation cost related to non-vested share options | 29,293 | 177,331 | ' | ' |
Weighted average vesting period | '2 years 8 months 5 days | '2 years 8 months 5 days | ' | ' |
Cash received from the exercise of share options | $16,466 | 99,681 | ' | ' |
SHAREBASED_COMPENSATION_Detail2
SHARE-BASED COMPENSATION (Details 3) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
Share-Based Compensation | ' | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | 2,668,000 | 2,668,000 | ' | ' |
Granted (in shares) | 1,364,064 | 1,364,064 | ' | ' |
Vested (in shares) | 1,271,404 | 1,271,404 | ' | ' |
Forfeited (in shares) | 32,804 | 32,804 | ' | ' |
Non-vested at the end of the period (in shares) | 2,727,856 | 2,727,856 | ' | ' |
Expected to vest at the end of the period (in shares) | 2,480,250 | 2,480,250 | ' | ' |
Weighted average grant-date fair value | ' | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | $9.17 | ' | ' | ' |
Granted (in dollars or CNY per share) | $11.61 | 70.3 | 60.88 | 70.26 |
Vested (in dollars per share) | $8.41 | ' | ' | ' |
Forfeited (in dollars per share) | $9.60 | ' | ' | ' |
Non-vested at the end of the period (in dollars per share) | $10.74 | ' | ' | ' |
Expected to vest at the end of the period (in dollars per share) | $10.74 | ' | ' | ' |
Capitalized share-based compensation costs | ' | 0 | 0 | 0 |
Share-based compensation | 10,714 | 64,858 | 50,538 | 37,974 |
Fair value of share options vested | $10,687 | 64,696 | 53,236 | 29,059 |
EMPLOYEE_BENEFITS_Details
EMPLOYEE BENEFITS (Details) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
EMPLOYEE BENEFITS | ' | ' | ' |
Employee benefits expenses | 121,147 | 100,219 | 83,985 |
RELATED_PARTY_TRANSACTION_Deta
RELATED PARTY TRANSACTION (Details) (Area Link, CNY) | 40 Months Ended |
In Thousands, unless otherwise specified | Nov. 30, 2012 |
Area Link | ' |
Related Party Transaction | ' |
Maximum amount of financing provided for coupon company | 32,800 |
Maximum percentage of share capital that may be acquired in lieu of repayment of financing provided | 40.00% |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
Numerator: | ' | ' | ' | ' |
Net income | $82,700 | 500,640 | 470,106 | 386,508 |
Denominator: | ' | ' | ' | ' |
Denominator for basic earnings per share - weighted average common shares outstanding (in shares) | 58,551,925 | 58,551,925 | 57,510,591 | 56,754,240 |
Effect of dilutive share options (in shares) | 1,517,272 | 1,517,272 | 1,864,532 | 2,313,184 |
Denominator for diluted earnings per share (in shares) | 60,069,197 | 60,069,197 | 59,375,123 | 59,067,424 |
Basic earnings per share (in CNY per share) | $1.41 | 8.55 | 8.17 | 6.81 |
Diluted earnings per share (in CNY per share) | $1.38 | 8.33 | 7.92 | 6.54 |
Excluded outstanding share options (in shares) | 2,707,713 | 2,707,713 | 2,520,002 | 1,294,660 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating lease commitments | ' | ' | ' |
2014 | 36,423 | ' | ' |
2015 | 23,295 | ' | ' |
2016 | 20,246 | ' | ' |
2017 | 16,432 | ' | ' |
2018 | 12,584 | ' | ' |
Thereafter | 265 | ' | ' |
Total | 109,245 | ' | ' |
Rental expenses | 44,537 | 39,708 | 37,042 |
Office premises | ' | ' | ' |
Operating lease commitments | ' | ' | ' |
2014 | 30,624 | ' | ' |
2015 | 22,889 | ' | ' |
2016 | 20,037 | ' | ' |
2017 | 16,432 | ' | ' |
2018 | 12,584 | ' | ' |
Thereafter | 265 | ' | ' |
Total | 102,831 | ' | ' |
Office equipment | ' | ' | ' |
Operating lease commitments | ' | ' | ' |
2014 | 5,799 | ' | ' |
2015 | 406 | ' | ' |
2016 | 209 | ' | ' |
Total | 6,414 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (CNY) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Contractual purchase obligations | ' |
2014 | 22,686 |
Publication Fees | ' |
Contractual purchase obligations | ' |
2014 | 150 |
Advertising services | ' |
Contractual purchase obligations | ' |
2014 | 9,396 |
Office furnishings | ' |
Contractual purchase obligations | ' |
2014 | 13,290 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 3) | Dec. 31, 2013 | Sep. 30, 2002 | 31-May-00 |
Tech JV | Tech JV | ||
Commitments and Contingencies Disclosure | ' | ' | ' |
Percentage of foreign ownership in Tech JV | ' | 99.00% | 98.00% |
Maximum foreign ownership percentage of advertising companies in the PRC | 100.00% | ' | ' |
Maximum foreign ownership percentage of human resource services companies permitted in the PRC | 70.00% | ' | ' |
CERTAIN_RISKS_AND_CONCENTRATIO1
CERTAIN RISKS AND CONCENTRATION (Details) (Total cash, restricted cash and short-term investments, Credit concentration risk, PRC) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | CNY | Bank of Nanjing in Shanghai, PRC | |
Unusual Risk or Uncertainty | ' | ' | ' |
Cash and certificates of deposit | $473,435 | 2,866,033 | ' |
Percentage of cash, restricted cash and short-term investments held in the PRC | 91.00% | 91.00% | 61.00% |