• Key Excerpts
  • VIE Structure
  • VIE Risks
  • VIE Revenue
  1. Includes Shanghai Wang Ju Human Resource Consulting Co., Ltd., incorporated in the PRC, which conducts human resource services and is 70% owned by 51net HR and 30% owned by Run An.
  2. {"In addition, 51net directly or indirectly wholly owns three PRC subsidiaries which have no current operations"=>"Shanghai Wang Ju Advertising Co., Ltd.; Wang Jin Information Technology (Shanghai) Co., Ltd.; and Wuhan Wang Cai Information Technology Co., Ltd."}
  3. {"Includes six PRC subsidiaries of Tech JV"=>"Shanghai Qianjin Zhong Cheng Human Resources Co., Ltd., a wholly owned subsidiary which conducts human resource services; Shanghai Yishu Information Technology Co., Ltd., a wholly owned subsidiary which conducts online recruitment services; Shanghai Pinyi Information Technology Co., Ltd., a wholly owned subsidiary which conducts online recruitment services; Shanghai Qianjin Advertising Co., Ltd., an 80% owned subsidiary which conducts advertising services; Shanghai Wang Cai Advertising Co., Ltd., a subsidiary jointly owned by Shanghai Qianjin Advertising Co., Ltd. and Tech JV which conducts advertising services; and Beijing Zhiding Youyuan Management Consulting Co., Ltd., a 60% owned subsidiary which conducts human resource services."}

Key excerpts from filing(s) - related to VIEs

The PRC government has regulated foreign ownership in entities providing advertising and human resource related services. Prior to March 2004, PRC laws and regulations prohibited foreign persons from owning a controlling interest in advertising entities. This foreign ownership restriction has been relaxed and foreign persons are now permitted to wholly own advertising entities in China. Foreign ownership in entities providing human resource related services was limited to 49% beginning in November 2003, and this ownership limitation has been increased to 70% for human resource services companies registered in several locations in the PRC, such as Pudong New District in Shanghai since June 2006, Zhongguancun National Innovation Demonstration Zone in Beijing since September 2014, Nanjing since December 2014, and Suzhou since April 2015.

Risks identified in filing(s) - related to VIEs

If the PRC authorities determine that our past ownership structure was inconsistent with the requirements for operating certain of our businesses, we could be subject to sanctions.
We rely on agreements with Qian Cheng, Run An and their respective shareholders to receive all of the beneficial interest of these entities. These contractual arrangements may not be as effective as direct ownership.
The shareholders of our affiliated Chinese entities may have potential conflicts of interest with us, which may adversely affect our business.
The PRC laws and regulations governing our business operations and contractual arrangements are uncertain, and if we are found to be in violation, we could be subject to sanctions. In addition, any changes in such PRC laws and regulations may have a material and adverse effect on our business.
Year Total Revenue VIEs Revenue Contribution of VIEs %
RMB (in millions)
2014 1,897 3 0.16%
2015 2,102 0.6 0%
2016 2,373 0 0%

Ownership and Voting power details

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Source(s)