Thursday, March 30, 2023

Renrui HR Announces 2020 Annual Results

Renrui Human Resources Technology Holdings Limited (“Renrui HR” or the “Company”, together with its subsidiaries, the “Group”) (Stock Code: 6919.HK), today announced its annual results for the year ended 31 December 2020 (the “year”).

Summary of Key Financial Performances for the Full Year

  • Total revenue of the Group Amounted to approximately RMB2,830.1 million, representing a year-on-year (“yoy”) growth of approximately RMB542.5 million or 23.7%
  • During the year, the Group was entitled to social insurance premium exemption amounted to approximately RMB197.1 million. In line with the rationale of going through difficult times with the Group’s clients, part of the flexible staffing service fees payable by our clients was waived. Without this adjustment, revenue for 2020 would have increased by approximately 32.3% yoy
  • Operating profit amounted to approximately RMB198.5 million, a yoy increase of approximately RMB80.3 million or 67.9%
  • Adjusted net profit* was approximately RMB183.2 million, representing a yoy increase of approximately RMB48.9 million or 36.5%
  • Adjusted net profit margin* increased from 5.9% in 2019 to 6.5%
  • Recommends the payment of a final dividend of HK$0.42 (2019: nil) for the year ended 31 December 2020
  • During the year, the Group’s revenue was mainly generated from flexible staffing, professional recruitment, BPO, and other HR solutions, accounting for 91.0%, 2.5%, 5.3% and 1.2% of total revenue, respectively
  • Revenue from flexible staffing was approximately RMB2,576.4 million, up by 19.8% compared to 2019. The number of flexible staffing employee increased by approximately 42.4% from 25,118 as at 31 December 2019 to 35,762 as at 31 December 2020
  • Revenue from professional recruitment was approximately RMB69.3 million, an increase of 9.1% from approximately RMB63.5 million as at 31 December 2019. Of which, revenue from recruitment was approximately RMB67.9 million, an increase of 17.9% from approximately RMB57.6 million as at 31 December 2019
  • BPO business showed significant development during the year. Revenue from the segment was approximately RMB150.6 million, an increase of approximately 190.7% from approximately RMB51.8 million as at 31 December 2019

Business Highlights for the Year 2020

  • Market Leader: The Group ranked the first among all flexible staffing services providers in the PRC not only in terms of the number of flexible staffing employees hired as at 31 December 2020, with a market share of approximately 2.3%, but also in terms of annual flexible staffing revenue, with a market share of 3.1%
  • Number of Flexible Staffing Employees Recorded Significant Increase: Increased by 42.4% from 25,118 as at 31 December 2019 to 35,762 as at 31 December 2020
  • Dedicated to the New Economy Industry for co-development: Revenue generated from clients in new economy industries for the year ended 31 December 2020 accounted for approximately 88.9% of overall revenue. Further, approximately 50.4% of our total revenue was contributed by the unicorn companies
  • Integrated human resources ecosystem and platform: In 2020, the conversion rate from offer to on-boarding was approximately 54.9% in 2020, representing a slight increase from approximately 54.6% in 2019. The number of registered candidates on the Xiang Recruitment Platform was approximately 2,590,000, and the number of new registered individual users in 2020 amounted to approximately 680,000

Mr. Zhang Jianguo, Chairman and Chief Executive Officer of Renrui Human Resources Technology Holdings Limited, stated, “The outbreak of the COVID-19 pandemic in 2020 brought many challenges to the market. However, benefitted from the effective pandemic prevention policies by the Chinese government, as well as a series of financial and currency stimulation policies, the economy in Mainland China rapidly recovered. It is therefore expected that the demand for human resources from corporations will continuously increase. The IMF expects that the actual growth rate of China’s GDP in 2021 will be about 8.1%, and the annual growth rate of China’s flexible staffing market is expected to be 20.6% in 2021. Given the rapid growth of China’s flexible staffing industry and the Chinese government’s emphasis on employment stability, the Group is confident of the rapid business development in 2021. Looking forward, we will continue to diversify and expand our customer base to increase revenue. In addition, we will continue expand the geographic support network for domestic and overseas customer service, while continue to enhance the integrated human resource ecosystem and platform, striving to create a professional career ecosystem.

Mr. Kenneth Ke, Chief Investment Officer of Renrui Human Resource Technology Holdings Limited, added, “The recurring income model of Renrui HR has achieved notable results, which increase the accuracy of financial forecast. Consider that China’s flexible staffing market remains large and untapped, the Group will leverage its market leading position and technological first-mover advantage to serve unicorn companies in developing their businesses. Last year, the Group invested in Tianjin Binhai Xunteng Group Co., Ltd. Through comprehensive integration of industry and education, we have established the human resource academia supply chain for Renrui HR. In the next three years, we will speed up the rollout and build-up of a professional career ecological chain through investment and acquisitions. Looking forward, the Group is confident in its business prospects, competitive advantages and growth potential.