The company reported a total operating income of 3.22 billion yuan, an increase of 5.9% over the same period last year, of which the revenue of the flexible labor business in the mainland increased by 12.2%, and the net profit reached 130 million yuan, an increase of 14.7% over the same period last year. After deducting the impairment loss of goodwill and the impact of share option expenses granted, the adjusted homed net profit was 136 million, an increase of 0.9% over the same period last year. The dividend payout rate is 45%. By the end of the 20th year, the number of outsourced workers was 38500, an increase of 13.2%, of which the number of outsourced workers in the mainland increased by 27%.
Revenue increased by 5.9% over the same period last year, a steady growth against the trend. In fiscal year 20, the company achieved a total operating income of 3.22 billion yuan, an increase of 5.9% over the same period last year, mainly due to the strong growth of flexible employment business, which increased by 12.2% over the same period last year. The revenue share of the largest customer reached 21.9%, increasing 9pct. From a regional point of view, the growth of the mainland is strong, while Hong Kong, Macao and Taiwan are relatively stable. Revenue in the mainland reached 1.76 billion yuan, an increase of 16.7% over the same period last year, and the proportion of revenue increased from 49.7% in fiscal year 19 to 54.7% in fiscal year 20, a steady increase.
In terms of business, flexible employment business increased by 12.2% over the same period last year. The income of flexible employment business reached 3.01 billion yuan, an increase of 12.2% over the same period last year. The share of income contribution further increased from 88.3% in 19 years to 93.5% in FY20, mainly due to the expansion of flexible employment business and the increase in the number of contract employees during the period. There were 39000 flexible employment contract employees in FY20, an increase of 13.2 per cent over the same period last year, while the number of candidates further expanded to 1.7 million, an increase of 6.3 per cent over the same period last year.
At the beginning of the 20th century, the company merged talent hunting and RPO business into a new recruitment solution service. Revenue from recruitment solution services reached 190 million in FY20, down 33.1% from a year earlier. Affected by the epidemic, the number of successful job referrals decreased. In FY20, about 3686 jobs were successfully introduced, down 43.3% from the same period last year; the database of candidates for recruitment services was 31 million, an increase of 29.2% over the same period last year; and the number of recruiters was about 216, down 52.1% from the same period last year.
By the end of fiscal year 20, the company had 1054 full-time employees, down 15.5% from the same period last year. Per capita income increased significantly. In fiscal year 20, per employee generated per capita revenue of 3.058 million yuan, an increase of 25.5% over the same period last year, and an adjusted net profit of 129000 yuan per capita, an increase of 19.3% over the same period last year.
The proportion of flexible employment business increases the impact of the superimposed epidemic, and the gross profit margin goes down. The gross profit margin for fiscal year 20 was 16.6%, a year-on-year decline in 2.7pct, mainly due to an increase in the proportion of revenue generated by flexible employment, a decrease in revenue from recruitment solutions in Greater China, and a decline in revenue in Hong Kong. From a business point of view, the gross profit margin of flexible employment business in FY20 was 11.5%, up 0.2 pct; the gross profit margin of recruitment solutions business was 91.0%, an increase of 1.3 pct; and the gross profit margin of other human resources services business was 74.3%, increasing 32.1pct.
The operating efficiency has been improved, and the rates of sales expenses and management expenses have declined steadily. In fiscal year 20, the sales expense rate was 9.4%, a decrease of 2pct; the management expense rate was 2.2%, a decrease in 0.3pct, and the decrease in sales expenses and the percentage of management expenses in revenue was mainly due to the improvement of operating efficiency.
The adjusted net profit increased by 0.9% compared with the same period last year, and the adjusted net interest rate decreased slightly. In fiscal year 20, the net profit attributed to the parent company was 130 million yuan, an increase of 14.7% over the same period last year. In terms of net interest rate, excluding the impact of non-recurring profit and loss, the net interest rate for fiscal year 20 was 4.23%, down 0.21pct from the same period last year.
The operating cash flow is good and there is plenty of cash on hand. The company's operating net cash flow in fiscal year 20 is 270 million yuan, accounting for 196.2% of the net profit. The cash flow is good under the epidemic, which is conducive to the stable and sustainable development of the follow-up business. The turnover days of trade receivables was 52.1 days, down slightly from the same period last year.
Investment suggestion: as the largest human resources solution service provider in Greater China, the company will focus on flexible employment business in 2021, accelerate mergers and acquisitions, and promote the sustained and rapid growth of flexible employment business in the mainland. Active investment in and research and development of human resources platform is expected to further improve operational efficiency. Net profit for 21-22 years is expected to be 1.4 billion yuan, corresponding to 12/10xPE, maintaining the buy rating.
Risk hint: the economic slowdown has dragged down the headhunting business, overseas outbreaks have returned, and technology investment has fallen short of expectations.