This is a summary of the fourth quarter fiscal 2005 earnings call conducted by 51job Inc. (JOBS: chart) on February 27, 2006
Management:

- CEO: Rick Yan
- CFO: Kathleen Chien
- Manager, IR: Linda Chien

Key Investor Issues:

- Total revenues grew 22.5% from RMB118.1 million in 2004.
- Gross profit was RMB74.5 million (US$9.2 million), representing an increase of 33.8% from RMB55.7 million for the same quarter in 2004.
- The Company repurchased in the open market 454,533 ADSs, representing 909,066 common shares, at an average price of US$13.38 per ADS.

Full Year Highlights:

- Total revenues were RMB595.6 million (US$73.8 million), an increase of 24.1% from RMB479.9 million for 2004.
- Gross margin improved up 1.3% from 50.8% to 52.1% for 2004.
- Fully diluted earnings per common share were RMB1.07 (US$0.27 per ADS)
- Non-GAAP adjusted net income grew 18.7% to RMB72.6 million (US$9.0 million) compared with RMB61.1 million in 2004 excluding foreign currency translation losses.

Fourth Quarter Highlights:

Total revenues increased 20.2% to RMB144.7 million (US$17.9 million), in line with the Company''s guidance range of RMB140 to RMB150 million.

- Print advertising revenues increased 6.8% to RMB79.0 million (US$9.8 million) compared with RMB73.9 million for the same quarter in 2004 due primarily to a higher number of recruitment advertisements placed in 51job Weekly.
- Online recruitment services revenues were RMB44.4 million (US$5.5 million), representing a 49.8% growth from RMB29.6 million for the same quarter last year.
- Executive search revenues were RMB6.0 million (US$0.7 million), relatively unchanged from the same quarter last year.
- Other human resource related revenues grew 42.3% to RMB15.4 million (US$1.9 million) from RMB10.8 million for the fourth quarter last year due to increased demand for corporate training and business process outsourcing services.
- Excluding the stationery business, revenues from other human resource related services increased 79.5% from RMB8.6 million in the prior year.
- Gross margin was up reaching 54.4% versus 48.8% in 2004

Operating expenses were RMB53.8 million (US$6.7 million) up from RMB37.0 million for the same period last year.

- Operating expenses percentage of net revenues was 39.3% for the fourth quarter of 2005 compared with 32.4% in 2004.
- Sales and marketing expenses for the fourth quarter of 2005 grew to RMB27.4 million (US$3.4 million) from RMB20.1 million for the same quarter in 2004 mainly due to an increase in sales as well as account management staff.
- Operating income was RMB21 million, an increase from RMB19 million for the fourth quarter of 2004.
- General and administrative expenses increased to RMB23.2 million (US$2.9 million) from RMB13.6 million last year primarily as a result of higher professional services fees, operating several additional sales offices over the comparable period in 2004 and personnel additions.

Income from operations grew 10.7% to RMB20.7 million (US$2.6 million) from RMB18.7 million for the same period last year.

- Interest and investment income increased to RMB5.2 million (US$0.6 million) from RMB2.2 million in 2004 due to increased interest income from higher interest rates.
- Other income included a RMB4.6 million (US$0.6 million) financial subsidy.
- The Company recognized a corresponding foreign currency translation loss of RMB11.3 million (US$1.4 million).

As of December 31, 2005, cash and cash equivalents were RMB830.6 million (US$102.9 million) compared with RMB848.3 million at year-end 2004 and RMB874.3 million at September 30, 2005.

- The decrease in cash was primarily the result of installment payments made under the Company’s letter of intent related to the purchase of a new office complex and the execution of the Company’s share repurchase program.
- The Company repurchased in the open market 454,533 ADSs, representing 909,066 common shares, at an average price of US$13.38 per ADS.

Guidance for the anticipated performance in the first quarter 2006:

- Based on current market and operating conditions, the Company’s revenue target is in the range of RMB165 to RMB175 million (US$20.4 to US$21.7 million).
- The Company’s fully diluted earnings target is in the range of RMB0.28 to RMB0.38 per common share (US$0.07 to US$0.09 per ADS).
- The earnings per share target exclude foreign currency translation losses or gains that may arise from further Renminbi revaluations.

Key questions and answers from the fourth quarter fiscal 2005 earnings call conducted by 51job Inc. (JOBS: chart) on February 17, 2008

Safa Rashtchy: What caused the online business to be so strong?

Kathleen Chien: We are able to get our online users to buy and longer subscriptions.

Safa Rashtchy: What are your observations concerning the pricing in both online and print since they stayed relatively strong, despite the seasonality?

Kathleen Chien: Actually the pricing has not really changed that much quarter on quarter since we feel that our customers are not always that price sensitive.

Safa Rashtchy: How should we look at pricing trends going forward?