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Form 6-K 51JOB, INC. For: Sep 24

September 24, 2021 9:01 AM EDT

 

 

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of September 2021

 

Commission File Number: 000-50841

 

51job, Inc. 

(Translation of registrant’s name into English)

 

Building 3 

No. 1387 Zhang Dong Road 

Shanghai 201203 

People’s Republic of China 

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  51JOB, INC.
   
  By: /s/ Rick Yan 
    Name: Rick Yan
    Title: President and Chief Executive Officer

 

Date: September 24, 2021

 

 

 

 

EXHIBIT INDEX

 

Exhibit Description
   
99.1 Press release regarding second quarter 2021 unaudited financial results dated September 24, 2021

 

 

 

 

Exhibit 99.1

 

New 51job Logo JPG (070105)

 

51job, Inc. Reports Second Quarter 2021 Financial Results

 

SHANGHAI, September 24, 202151job, Inc. (Nasdaq: JOBS) (“51job” or the “Company”), a leading provider of integrated human resource services in China, announced today its unaudited financial results for the second quarter of 2021 ended June 30, 2021.

 

Second Quarter 2021 Financial Highlights:

 

·Net revenues increased 32.6% over Q2 2020 to RMB1,098.7 million (US$170.2 million)

·Online recruitment services revenues increased 17.4%

·Other human resource related revenues increased 56.2%

·Income from operations was RMB109.3 million (US$16.9 million)

·Fully diluted earnings per share was RMB2.66 (US$0.41)

·Excluding share-based compensation expense, loss from foreign currency translation, and change in fair value of listed equity securities investment, as well as the related tax effect of these items, non-GAAP adjusted fully diluted earnings per share was RMB3.64 (US$0.56)

 

Second Quarter 2021 Unaudited Financial Results

 

Net revenues for the second quarter ended June 30, 2021 were RMB1,098.7 million (US$170.2 million), an increase of 32.6% from RMB828.6 million for the same quarter in 2020.

 

Online recruitment services revenues for the second quarter of 2021 increased 17.4% to RMB590.6 million (US$91.5 million) compared with RMB503.3 million for the same quarter in 2020 primarily due to improved market conditions and more hiring activity from employers this year. While the Company believes there will be continued recovery in its online recruitment business in 2021, the recruitment outlook may be affected by uncertainty in the ongoing global pandemic and occasional restrictions instituted by authorities to contain outbreaks in China.

 

Other human resource related revenues for the second quarter of 2021 increased 56.2% to RMB508.1 million (US$78.7 million) from RMB325.4 million for the same quarter in 2020. The growth was primarily driven by strong demand for training services, campus recruitment campaigns, placement projects and business process outsourcing services this year.

 

Gross profit for the second quarter of 2021 increased 21.8% to RMB678.9 million (US$105.1 million) from RMB557.5 million for the same quarter of the prior year. Gross margin, which is gross profit as a percentage of net revenues, was 61.8% in the second quarter of 2021 compared with 67.3% for the same quarter in 2020. The increase in cost of services was primarily due to higher employee compensation expenses, staff additions and greater direct costs, such as venue rentals and media production services, incurred in providing training, campus recruitment and placement services to employers.

 

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51job, Inc. Reports Second Quarter 2021 Financial Results

September 24, 2021

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Operating expenses for the second quarter of 2021 increased 45.3% to RMB569.5 million (US$88.2 million) from RMB391.9 million for the same quarter in 2020. Sales and marketing expenses for the second quarter of 2021 increased 55.7% to RMB455.6 million (US$70.6 million) from RMB292.7 million for the same quarter of the prior year, primarily due to greater spending on brand advertising as well as more headcount and higher employee compensation expenses. Advertising and promotion expenses increased 86.9% to RMB127.4 million (US$19.7 million) in the second quarter of 2021 from RMB68.2 million in the same quarter of the prior year. The Company has plans to significantly increase sales and marketing investments this year to strengthen its brands and promote its wide range of service offerings.

 

General and administrative expenses for the second quarter of 2021 increased 14.8% to RMB113.9 million (US$17.6 million) from RMB99.2 million for the same quarter of the prior year, primarily due to higher employee compensation, share-based compensation, and professional services fees.

 

Income from operations for the second quarter of 2021 was RMB109.3 million (US$16.9 million) compared with RMB165.5 million for the second quarter of 2020. Operating margin, which is income from operations as a percentage of net revenues, was 9.9% in the second quarter of 2021 compared with 20.0% for the same quarter in 2020. Excluding share-based compensation expense, operating margin would have been 14.4% in the second quarter of 2021 compared with 24.6% for the same quarter in 2020.

 

The Company recognized a loss from foreign currency translation of RMB12.5 million (US$1.9 million) in the second quarter of 2021 compared with RMB0.5 million in the second quarter of 2020, primarily due to the impact of the change in exchange rate between the Renminbi and the U.S. dollar on the Company’s U.S. dollar cash deposits.

 

Interest and investment income for the second quarter of 2021 was RMB31.9 million (US$4.9 million) compared with RMB66.4 million in the second quarter of 2020, primarily due to the reallocation of cash resources from time deposits to lower interest-bearing demand accounts.

 

The Company recognized a mark-to-market, non-cash loss of RMB5.2 million (US$0.8 million) in the second quarter of 2021 compared with a gain of RMB56.8 million in the second quarter of 2020 associated with a change in fair value of listed equity securities investment in Huali University Group Limited, which is traded on the Hong Kong Stock Exchange.

 

Other income in the second quarter of 2021 included local government financial subsidies of RMB85.2 million (US$13.2 million) compared with RMB144.9 million in the second quarter of 2020.

 

Net income attributable to 51job for the second quarter of 2021 was RMB181.7 million (US$28.1 million) compared with RMB376.7 million for the same quarter in 2020. Fully diluted earnings per share for the second quarter of 2021 was RMB2.66 (US$0.41) compared with RMB5.55 for the same quarter in 2020.

 

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51job, Inc. Reports Second Quarter 2021 Financial Results

September 24, 2021

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In the second quarter of 2021, total share-based compensation expense was RMB49.3 million (US$7.6 million) compared with RMB38.1 million in the second quarter of 2020.

 

Excluding share-based compensation expense, loss from foreign currency translation, and change in fair value of listed equity securities investment, as well as the related tax effect of these items, non-GAAP adjusted net income attributable to 51job for the second quarter of 2021 was RMB248.7 million (US$38.5 million) compared with RMB358.5 million for the second quarter of 2020. Non-GAAP adjusted fully diluted earnings per share was RMB3.64 (US$0.56) in the second quarter of 2021 compared with RMB5.28 in the second quarter of 2020.

 

As of June 30, 2021, cash and short-term investments totaled RMB10,812.9 million (US$1,674.7 million) compared with RMB10,761.9 million as of December 31, 2020.

 

Currency Convenience Translation

 

For the convenience of readers, certain Renminbi amounts have been translated into U.S. dollar amounts at the rate of RMB6.4566 to US$1.00, the noon buying rate on June 30, 2021 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

 

Use of Non-GAAP Financial Measures

 

To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), 51job uses non-GAAP financial measures of income before income tax expense, income tax expense, adjusted net income, adjusted net income attributable to 51job and adjusted earnings per share, which are adjusted from results based on GAAP to exclude share-based compensation expense, gain/loss from foreign currency translation and change in fair value of listed equity securities investment, as well as the related tax effect of these items. The Company believes excluding share-based compensation expense and its related tax effect from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company’s core operating results as such expense is not directly attributable to the underlying performance of the Company’s business operations and do not impact its cash earnings. The Company believes excluding gain/loss from foreign currency translation and change in fair value of listed equity securities investment, as well as the related tax effect, from its non-GAAP financial measures is useful for its management and investors as such translation, mark-to-market gain or loss is not indicative of the Company’s core business operations and will not result in cash settlement nor impact the Company’s cash earnings. 51job also believes these non-GAAP financial measures excluding share-based compensation expense, gain from foreign currency translation and change in fair value of listed equity securities investment, as well as the related tax effect of these items, are important in helping investors to understand the Company’s current financial performance and future prospects and to compare business trends among different reporting periods on a consistent basis. The presentation of these additional measures should not be considered a substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial statements.

 

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51job, Inc. Reports Second Quarter 2021 Financial Results

September 24, 2021

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About 51job

 

Founded in 1998, 51job is a leading provider of integrated human resource services in China. With a comprehensive suite of HR solutions, 51job meets the needs of enterprises and job seekers through the entire talent management cycle, from initial recruitment to employee retention and career development. The Company’s main online recruitment platforms (http://www.51job.com, http://www.yingjiesheng.com, http://www.51jingying.com, http://www.lagou.com, and http://www.51mdd.com), as well as mobile applications, connect millions of people with employment opportunities every day. 51job also provides a number of other value-added HR services, including business process outsourcing, training, professional assessment, campus recruitment, executive search and compensation analysis. 51job has a call center in Wuhan and a nationwide network of sales and service locations spanning more than 30 cities across China.

 

Contact

 

Investor Relations, 51job, Inc.

Tel: +86-21-6879-6250

Email: [email protected]

 

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51job, Inc. Reports Second Quarter 2021 Financial Results

September 24, 2021

Page 5

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “confident” and similar statements. Among other things, statements that are not historical facts, including statements about 51job’s beliefs and expectations, as well as 51job’s strategic and operational plans, are or contain forward-looking statements. 51job may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. All forward-looking statements are based upon management’s expectations at the time of the statements and involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: execution of 51job’s strategies and business plans; growth and trends of the human resource services industry in China; market acceptance of 51job’s products and services; competition in the industry; 51job’s ability to control costs and expenses; 51job’s ability to retain key personnel and attract new talent; relevant government policies and regulations relating to 51job’s industry, corporate structure and business operations; seasonality in the business; fluctuations in the value of the Renminbi against the U.S. dollar and other currencies; risks related to acquisitions or investments 51job has made or will make in the future; accounting adjustments that may occur during the quarterly or annual close or auditing process; and fluctuations in general economic and business conditions in China and globally, including the impact of the coronavirus or other pandemic. Further information regarding these and other risks are included in 51job’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release and based on assumptions that 51job believes to be reasonable as of this date, and 51job undertakes no obligation to update any forward-looking statement, except as required under applicable law.

 

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51job, Inc. Reports Second Quarter 2021 Financial Results

September 24, 2021

Page 6

 

51job, Inc.
Consolidated Statements of Operations and Comprehensive Income
 
   For the Three Months Ended 
   June 30, 2020   June 30, 2021   June 30, 2021 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
Revenues:               
Online recruitment services   503,254    590,594    91,471 
Other human resource related revenues   325,374    508,147    78,702 
Net revenues   828,628    1,098,741    170,173 
Cost of services (Note 2)   (271,176)   (419,884)   (65,032)
Gross profit   557,452    678,857    105,141 
                
Operating expenses:               
Sales and marketing (Note 3)   (292,732)   (455,648)   (70,571)
General and administrative (Note 4)   (99,192)   (113,888)   (17,639)
Total operating expenses   (391,924)   (569,536)   (88,210)
Income from operations   165,528    109,321    16,931 
                
Loss from foreign currency translation   (547)   (12,523)   (1,940)
Interest and investment income, net   66,419    31,938    4,947 
Change in fair value of listed equity securities investment   56,806    (5,158)   (799)
Other income, net   144,590    85,015    13,167 
Income before income tax expense   432,796    208,593    32,306 
Income tax expense   (59,621)   (37,517)   (5,811)
Net income   373,175    171,076    26,495 
Net loss attributable to non-controlling interests   3,485    10,600    1,642 
Net income attributable to 51job, Inc.   376,660    181,676    28,137 
                
Net income   373,175    171,076    26,495 
Other comprehensive loss   (5)   (225)   (35)
Total comprehensive income   373,170    170,851    26,460 
                
Earnings per share:               
Basic   5.62    2.69    0.42 
Diluted   5.55    2.66    0.41 
                
Weighted average number of common shares outstanding:               
Basic   67,009,015    67,434,856    67,434,856 
Diluted   67,878,333    68,247,200    68,247,200 

 

 

Notes:          
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.4566 to US$1.00 on June 30, 2021 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.
(2) Includes share-based compensation expense of RMB6,079 and RMB7,875 (US$1,220) for the three months ended June 30, 2020 and 2021, respectively. 
(3) Includes share-based compensation expense of RMB5,225 and RMB6,770 (US$1,048) for the three months ended June 30, 2020 and 2021, respectively.
(4) Includes share-based compensation expense of RMB26,826 and RMB34,684 (US$5,372) for the three months ended June 30, 2020 and 2021, respectively.

 

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51job, Inc. Reports Second Quarter 2021 Financial Results

September 24, 2021

Page 7

 

51job, Inc.

Consolidated Statements of Operations and Comprehensive Income

 

   For the Six Months Ended 
   June 30, 2020   June 30, 2021   June 30, 2021 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
Revenues:               
Online recruitment services   1,050,271    1,135,956    175,937 
Other human resource related revenues   569,468    857,938    132,878 
Net revenues   1,619,739    1,993,894    308,815 
Cost of services (Note 2)   (525,479)   (741,650)   (114,867)
Gross profit   1,094,260    1,252,244    193,948 
                
Operating expenses:               
Sales and marketing (Note 3)   (568,924)   (929,566)   (143,971)
General and administrative (Note 4)   (189,834)   (209,428)   (32,436)
Total operating expenses   (758,758)   (1,138,994)   (176,407)
Income from operations   335,502    113,250    17,541 
                
Gain (Loss) from foreign currency translation   9,624    (7,178)   (1,112)
Interest and investment income, net   110,734    91,955    14,242 
Change in fair value of equity securities investment   66,697    (18,413)   (2,852)
Other income, net   148,925    89,744    13,900 
Income before income tax expense   671,482    269,358    41,719 
Income tax expense   (96,392)   (52,164)   (8,079)
Net income   575,090    217,194    33,640 
Net loss attributable to non-controlling interests   6,816    21,707    3,362 
Net income attributable to 51job, Inc.   581,906    238,901    37,002 
                
Net income   575,090    217,194    33,640 
Other comprehensive income (loss)   303    (163)   (25)
Total comprehensive income   575,393    217,031    33,615 
                
Earnings per share:               
Basic   8.70    3.54    0.55 
Diluted   8.56    3.50    0.54 
                
Weighted average number of common shares outstanding:               
Basic   66,906,106    67,421,251    67,421,251 
Diluted   67,942,579    68,202,198    68,202,198 

 

 

Notes:

(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.4566 to US$1.00 on June 30, 2021 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

(2) Includes share-based compensation expense of RMB11,996 and RMB14,077 (US$2,181) for the six months ended June 30, 2020 and 2021, respectively.

(3) Includes share-based compensation expense of RMB10,312 and RMB12,102 (U$1,874) for the six months ended June 30, 2020 and 2021, respectively.

(4) Includes share-based compensation expense of RMB52,946 and RMB62,068 (US$9,613) for the six months ended June 30, 2020 and 2021, respectively.  

 

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51job, Inc. Reports Second Quarter 2021 Financial Results

September 24, 2021

Page 8

 

51job, Inc.

Reconciliation of GAAP and Non-GAAP Results

 

   For the Three Months Ended 
   June 30, 2020   June 30, 2021   June 30, 2021 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
GAAP income before income tax expense   432,796    208,593    32,306 
Add: Share-based compensation   38,130    49,329    7,640 
Add: Loss from foreign currency translation   547    12,523    1,940 
Add (Less): Change in fair value of listed equity securities investment   (56,806)   5,158    799 
Non-GAAP income before income tax expense   414,667    275,603    42,685 
GAAP income tax expense   (59,621)   (37,517)   (5,811)
Tax effect of non-GAAP line items   (8)   (9)   (1)
Non-GAAP income tax expense   (59,629)   (37,526)   (5,812)
Non-GAAP adjusted net income   355,038    238,077    36,873 
Non-GAAP adjusted net income attributable to 51job, Inc.   358,523    248,677    38,515 
Non-GAAP adjusted earnings per share:               
Basic   5.35    3.69    0.57 
Diluted   5.28    3.64    0.56 
Weighted average number of common shares outstanding:               
Basic   67,009,015    67,434,856    67,434,856 
Diluted   67,878,333    68,247,200    68,247,200 

 

   For the Six Months Ended 
   June 30, 2020   June 30, 2021   June 30, 2021 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
GAAP income before income tax expense   671,482    269,358    41,719 
Add: Share-based compensation   75,254    88,247    13,668 
Add (Less): (Gain) Loss from foreign currency translation   (9,624)   7,178    1,112 
Add (Less): Change in fair value of listed equity securities investment   (66,697)   18,413    2,852 
Non-GAAP income before income tax expense   670,415    383,196    59,351 
GAAP income tax expense   (96,392)   (52,164)   (8,079)
Tax effect of non-GAAP line items   (39)   84    13 
Non-GAAP income tax expense   (96,431)   (52,080)   (8,066)
Non-GAAP adjusted net income   573,984    331,116    51,285 
Non-GAAP adjusted net income attributable to 51job, Inc.   580,800    352,823    54,647 
Non-GAAP adjusted earnings per share:               
Basic   8.68    5.23    0.81 
Diluted   8.55    5.17    0.80 
Weighted average number of common shares outstanding:               
Basic   66,906,106    67,421,251    67,421,251 
Diluted   67,942,579    68,202,198    68,202,198 

 

 

Note (1): The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.4566 to US$1.00 on June 30, 2021 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

 

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51job, Inc. Reports Second Quarter 2021 Financial Results

September 24, 2021

Page 9

 

51job, Inc.

Consolidated Balance Sheets

 

   As of 
   December 31,
2020
   June 30,
2021
   June 30,
2021
 
(In thousands, except share and per share data)  (unaudited)   (unaudited)   (unaudited) 
   RMB   RMB   US$ (Note 1) 
ASSETS               
Current assets:               
Cash   3,292,698    9,036,457    1,399,569 
Restricted cash   2,258         
Short-term investments   7,469,213    1,776,482    275,142 
Accounts receivable (net of allowance of RMB26,798 and RMB24,240 as of December 31, 2020 and  June 30, 2021, respectively)   290,480    329,184    50,984 
Prepayments and other current assets   492,980    562,226    87,078 
Total current assets   11,547,629    11,704,349    1,812,773 
Non-current assets:               
Time deposits   719,189    732,212    113,405 
Long-term investments   1,576,250    1,556,171    241,020 
Property and equipment, net   273,157    269,892    41,801 
Goodwill   1,036,124    1,036,124    160,475 
Intangible assets, net   163,503    145,628    22,555 
Right-of-use assets   307,869    314,536    48,715 
Other long-term assets   13,946    424,144    65,692 
Deferred tax assets   38,013    44,102    6,831 
Total non-current assets   4,128,051    4,522,809    700,494 
Total assets   15,675,680    16,227,158    2,513,267 
LIABILITIES, MEZZANINE EQUITY AND EQUITY               
Current liabilities:               
Accounts payable   83,087    136,943    21,210 
Salary and employee related accrual   182,565    134,771    20,873 
Taxes payable   172,254    122,720    19,007 
Advances from customers   1,158,604    1,310,715    203,004 
Lease liabilities, current   34,952    42,406    6,568 
Other payables and accruals   1,178,955    1,305,834    202,248 
Total current liabilities   2,810,417    3,053,389    472,910 
Non-current liabilities:               
Lease liabilities, non-current   44,949    47,719    7,391 
Deferred tax liabilities   232,087    225,891    34,986 
Total non-current liabilities   277,036    273,610    42,377 
Total liabilities   3,087,453    3,326,999    515,287 
Mezzanine equity:               
Redeemable non-controlling interests   189,811    167,434    25,932 
                
Shareholders' equity:               
Common shares (US$0.0001 par value: 500,000,000 shares authorized, 67,406,657 and 67,437,209 shares issued and outstanding as of December 31, 2020 and June 30, 2021,  respectively)   54    54    8 
Additional paid-in capital   5,206,154    5,301,874    821,156 
Statutory reserves   18,474    18,474    2,861 
Accumulated other comprehensive income   276,975    276,812    42,873 
Retained earnings   6,871,090    7,109,991    1,101,197 
Total 51job, Inc. shareholders' equity   12,372,747    12,707,205    1,968,095 
Non-controlling interests   25,669    25,520    3,953 
Total equity   12,398,416    12,732,725    1,972,048 
Total liabilities, mezzanine equity and equity   15,675,680    16,227,158    2,513,267 

 

 

Note (1): The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.4566 to US$1.00 on June 30, 2021 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

 

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