The company maintained a high revenue growth in 2021, but due to factors such as a major customer service price adjustment, gross profit fell significantly, resulting in a significant decline in net profit. The contract for the customer information audit and customer service post will be terminated from January 2022, which is expected to put pressure on the company's short-term growth. However, the company's comprehensive flexible employment service capacity is still improving, efficiency indicators continue to optimize, and actively open up new customers, as well as through mergers and acquisitions to strengthen the layout in the field of digital professional services, looking forward to the impact of major customer events.
Profit margins have declined significantly due to factors such as high revenue growth and price adjustment for major customers. In 2021, the company achieved revenue of 4.739 billion yuan (+ 67.5%), including comprehensive flexible labor of 4.622 billion yuan (+ 69.5%), professional recruitment of 90 million yuan (+ 29.9%), and other human resources solutions of 27 million yuan (- 19.1%). In 2021, the company achieved an adjusted net profit of 108 million yuan (- 40.9%). The sharp decline in net profit was mainly due to a significant decline in profitability, with a gross profit margin of 5.3% (- 4.3pcts) in 2021, leading to an adjusted net interest rate of only 2.3% (- 4.2pcts). The significant decline in gross profit margin is mainly due to: 1) the substantial adjustment in service prices brought about by the signing of a new agreement with a major customer; 2) the reduction of service premium due to the slowdown in the growth of customer employment demand in the Internet industry; and 3) the policy impact on customer employment demand in the online education industry. Service premium is greatly affected.
Flexible employment and high growth, and efficiency indicators continue to be optimized. By the end of 2021, the number of comprehensive flexible employment employees was 50447 (+ 30.6%), promoting a high increase in income from the comprehensive flexible employment business in 2021. Specifically, the revenue from general service outsourcing is 4.263 billion yuan (+ 66.3%), digital technology and cloud services is 97 million yuan (+ 663.5%), digital operation and customer service is 261 million yuan (+ 73.4%), and the proportion of digital professional services revenue has increased from 5.8% to 7.6%. And the company expects digital technology and cloud services to grow by more than 800% in 2022. Through the continuous strengthening of the standardization of project management process and the continuous promotion of comprehensive online project management, the company management radius and turnover rate and other indicators continue to be optimized. In 2021, the per capita number of management comprehensive flexible employees is 265 (vs. In 2020, it is 232), which is much higher than the industry level of about 150. In 2021, the company's comprehensive flexible employee turnover rate was 7.4% (- 1.6pcts), which is much better than the industry level (15% +).
The expense rate is reduced and the turnover rate of receivables remains benign. In 2021, the company's sales expense rate was 1.4% (- 0.5pct), management expense rate was 2.1% (- 0.5pct), and R & D expense rate was 0.4% (- 0.1pct). The turnover days of adjusted trade receivables and notes receivable in 2021 was 49 days (vs.
It was 48 days in 2020), which was basically the same as the same period last year. The operating cash flow of the company in 2021 was-90 million yuan (vs.
(+ 156 million yuan in 2020), the negative operating cash flow is related to the credit period for some newly signed strategic customers and the implementation of employee home purchase loan plan.
The termination of a major customer service contract causes great short-term pressure, and M & A promotes the layout of digital services. At the end of June 2021, the company announced that it would stop providing flexible employment services for information audit and customer service to a major customer from January 2022. In 2020, the revenue of this part was 1.064 billion yuan, accounting for 37.6% of the total revenue of the company in the current period. Therefore, the termination of the contract has a greater short-term impact on the company. In order to cope with this impact, the company actively opens up new customers and further distributes digital service business through mergers and acquisitions to build a second growth curve. At present, the risk of the company concentrating too much on a single customer has been reduced, with the top ten customers accounting for about 52% of the revenue in the first ten years of 2021 (excluding the related contract income of a major customer). The distribution of customers in the industry is also becoming more and more diversified. The proportion of Internet / high-tech and high-end manufacturing / financial / other (consumer retail, health care and entertainment education, etc.) customers in 2021 is 23.3%, 19.1%, 18.8%, 38.8% respectively. The company promotes the layout of digital professional services through strategic mergers and acquisitions. In September 2021, the company announced the strategic acquisition of a 51% stake in Jiangnan Jinke and Shanghai leading time, and expanded the general service outsourcing and digital professional services business in the banking sector. It was announced in March 2022 that it would strategically acquire a 46% controlling stake in Shanghai Sili, an information technology and software outsourcing service provider, with a net profit of 61.8 million yuan after tax in 2021, which is expected to increase the company's performance after the acquisition.
Risk factors: the renewal rate of head customers is lower than expected; the competition in flexible employment industry is intensified; the growth rate of new economy industry continues to slow down; the progress of new customer development is not as expected.
