Core Viewpoint - As of July 18, 160 stocks reached their 52-week highs, with notable performances from China New Economy Investment (00080), Aoyuan Group Equity (02905), and Zhong An Holdings Group (08462) showing high growth rates of 288.89%, 55.28%, and 50.00% respectively [1][2]. Summary by Category 52-Week High Performers - China New Economy Investment (00080) closed at 0.440, with a peak price of 0.700, achieving a growth rate of 288.89% [2]. - Aoyuan Group Equity (02905) closed at 0.218, with a peak price of 0.250, achieving a growth rate of 55.28% [2]. - Zhong An Holdings Group (08462) closed at 0.221, with a peak price of 0.228, achieving a growth rate of 50.00% [2]. - Other notable performers include Hualian International (00969) with a growth rate of 40.13% and Zhongke Bio (01237) with a growth rate of 37.25% [2]. Additional High Performers - Wanma Holdings (06928) closed at 0.550 with a growth rate of 30.43% [2]. - Lepu Biopharma-B (02157) closed at 7.940 with a growth rate of 24.54% [2]. - Other stocks with significant growth include ZhiJianYueDong (06860) at 17.14% and China Jindian Group (08281) at 17.12% [2]. 52-Week Low Performers - The document also lists stocks that reached their 52-week lows, with XI Ernan CO-U (09311) showing a decline of 16.10% [6]. - Other notable declines include XI Ernan CO (07311) at -12.62% and Haotian International Construction Investment (01341) at -5.70% [6].

Core Insights - The company reported second-quarter revenue of $4.52 billion, exceeding the expected revenue of $4.37 billion [1] - Adjusted earnings per share (EPS) were $0.78, surpassing market expectations of $0.69 [1] - The company provided third-quarter EPS guidance of $0.77 to $0.87, with market expectations at $0.80 [1]

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 6,270.5 million, representing an 18.2% increase from RMB 5,303.6 million in 2023[9]. - Profit attributable to the company's owners increased to RMB 129.8 million, a growth of 2.7% compared to RMB 126.5 million in 2023[9]. - Adjusted profit attributable to the company's owners rose to RMB 145.6 million, reflecting a 7.8% increase from RMB 135.1 million in the prior year[9]. - Revenue from the flexible workforce segment rose by 19.7% from RMB 5,122.8 million in 2023 to RMB 6,132.9 million in 2024[19]. - Total revenue increased by approximately 18.2% from RMB 5,303.6 million in 2023 to RMB 6,270.5 million in 2024[19]. - Revenue from mainland China increased by 24.8% from RMB 3,578.9 million in 2023 to RMB 4,466.7 million in 2024[20]. - Revenue from recruitment solutions decreased by approximately 26.7% from RMB 157.8 million for the year ended December 31, 2023, to RMB 115.7 million for the year ending December 31, 2024, primarily due to a sluggish employment market and higher client job requirements[21]. - Revenue from other human resources services declined by approximately 4.8% from RMB 22.9 million for the year ended December 31, 2023, to RMB 21.9 million for the year ending December 31, 2024, mainly due to decreased demand from government clients in the current economic environment[21]. Workforce and Employment - The flexible workforce revenue in mainland China grew by 27%, up from 25% in the previous year[9]. - Revenue per employee increased by 36.3% to RMB 5,619, compared to RMB 4,124 in the previous year[9]. - The total number of full-time employees decreased by 13.2% to 1,116 from 1,286 in 2023[9]. - Contract employee numbers rose by 2.4% to 55,300, up from 54,000 in the previous year[9]. - The number of candidates in the flexible workforce talent database grew by 14.5% from 2,523 thousand in 2023 to 2,889 thousand in 2024[17]. - The number of introduced job positions in recruitment solutions decreased by 29.4% from 2,448 in 2023 to 1,728 in 2024[17]. - The average revenue per contract employee increased due to a reduction in short-term positions and an increase in full-time positions in the Greater China region[19]. Dividends and Shareholder Engagement - The company's board proposed a final dividend of HKD 0.31 per share, equivalent to RMB 0.29 per share, representing approximately 45% of the group's earnings per share[11]. - The company reported a proposed final dividend of HKD 0.31 per share, totaling HKD 64.3 million (approximately RMB 60.2 million), which represents about 45% of the profit attributable to shareholders for the fiscal year ending December 31, 2024[154]. - The company has established multiple communication channels with shareholders, including publishing interim and annual reports, and hosting annual general meetings for shareholder engagement[137]. - The company has adopted a dividend policy that allows for the declaration and distribution of dividends, contingent upon the group recording post-tax profits and ensuring normal operations are not affected[153]. Corporate Governance - The company has adopted the corporate governance code as its own since its listing and has complied with its provisions throughout the reporting period[74]. - The board recognizes the importance of corporate culture and shared values for the long-term operation and sustainable growth of the company[74]. - The company has appointed independent non-executive directors with extensive experience in various sectors, enhancing its governance structure[68][69][70]. - The board consists of one executive director and six non-executive directors, ensuring compliance with listing rules regarding independent non-executive directors[78]. - The company has implemented a board diversity policy, emphasizing the importance of diverse board members to achieve strategic goals and sustainable development[90]. - The board is responsible for overseeing major company affairs, including policy formulation, overall strategy, and risk management systems[79]. - The company has purchased liability insurance for directors and senior management to provide adequate protection against potential legal liabilities[81]. - The independent non-executive directors play a crucial role in providing unbiased opinions and monitoring the company's performance[85]. Risk Management - The group faces various financial risks, including currency, interest rate, and liquidity risks, and employs a conservative risk management strategy without using derivatives for hedging[38][39][40][43]. - The board is responsible for maintaining effective risk management and internal control systems, which are reviewed at least annually[124]. - The company has established a quality assurance function to oversee certain internal audit functions, ensuring the accuracy of orders and billing[125]. - An external consultant has been engaged to identify and assess significant business and operational risks, enhancing the objectivity and transparency of the evaluation process[125]. - The internal control systems have been reviewed during the reporting period and deemed effective and sufficient[126]. - The company has implemented procedures for handling and disclosing insider information, ensuring compliance with relevant regulations[127]. Strategic Focus and Future Plans - The company expects stable growth in the flexible workforce business in mainland China, supported by an expanded product portfolio and ongoing development in IT outsourcing[14]. - The company plans to focus on strategic acquisitions and partnerships to strengthen its leadership position in the human resources solutions market[15]. - The company’s strategic focus includes expanding market share and enhancing operational performance through various initiatives[53]. - The company has extended the expected timeline for the use of unutilized net proceeds from December 31, 2025, to December 31, 2026, to optimize financial resource allocation in response to changing market conditions[52]. Compensation and Incentives - The company has implemented long-term incentive plans, including stock option plans and restricted share unit plans, to reward eligible participants[115]. - The annual salary range for senior management members is between RMB 5,500,000 and RMB 6,000,000[116]. - The company emphasizes internal and external fairness in its compensation practices to create long-term value[112]. - The company has adopted a compensation policy aimed at ensuring competitive remuneration for all directors and senior management, aligning their interests with those of shareholders[112]. Management and Leadership - The company’s management team includes experienced professionals with backgrounds in finance and strategic decision-making, contributing to its long-term growth strategy[56]. - The leadership team has a strong academic background, with degrees from prestigious institutions, contributing to informed decision-making[61]. - The company is actively involved in the healthcare sector through its board members, indicating potential strategic interests in this industry[64]. Share Option and Restricted Share Unit Plans - The total number of shares that may be issued under the stock option plan is capped at 10% of the total issued shares on the date of listing, equivalent to 20,000,000 shares[173]. - The stock options granted during the reporting period totaled 6,824,375 shares, with 5,710,500 shares remaining unexercised after accounting for forfeitures[181]. - The 2023 Restricted Share Unit Plan was adopted on November 22, 2023, aimed at recognizing and rewarding participants for their contributions to the group[194]. - Participants in the 2023 Restricted Share Unit Plan include full-time and part-time employees, directors, and senior officers of any member company of the group[195].

Revenue and Growth - Revenue for the year ended December 31, 2024, was RMB 6,270.5 million, an increase of 18.2% compared to RMB 5,303.6 million in 2023[5] - The revenue growth rate for flexible employment in mainland China was 27%, up from 25% in the previous year[5] - Revenue from the flexible employment business segment grew approximately 19.7% to RMB 6,133 million, with mainland China recording a strong growth of 26.8%[7] - Revenue from mainland China grew by 24.8% to RMB 4,466.7 million in 2024, up from RMB 3,578.9 million in 2023[21] - Total revenue increased by 18.2% to RMB 6,270.5 million in 2024, compared to RMB 5,303.6 million in 2023[19] - Revenue from the flexible workforce segment rose by 19.7% to RMB 6,132.9 million in 2024, up from RMB 5,122.8 million in 2023[19] - Major client A1 contributed RMB 2,058,766,000 to total revenue, up from RMB 1,559,980,000 in the previous year, reflecting a growth of 31.9%[87] Profit and Earnings - Profit attributable to owners of the company increased to RMB 129.8 million, a growth of 2.7% from RMB 126.5 million in 2023[8] - Adjusted profit attributable to owners rose to RMB 145.6 million, reflecting a 7.8% increase from RMB 135.1 million in the prior year[8] - The net profit attributable to shareholders for the year was 129,848 RMB, compared to 126,476 RMB in the previous year, indicating a growth of approximately 1.9%[98] - Basic earnings per share for the year was RMB 0.64, up from RMB 0.62, showing a growth of 3.2%[58] - The company reported a total comprehensive income of RMB 152,197 thousand for the year, slightly down from RMB 153,895 thousand, a decrease of about 1.1%[57] Employee and Workforce - The number of full-time employees decreased by 13.2% to 1,116, while contract employees increased by 2.4% to 55,300[5] - The group employs approximately 1,116 full-time employees and about 55,300 contract workers as of December 31, 2024[51] - Total employee costs for the year amounted to 5,870,403 RMB, an increase from 4,900,860 RMB in the previous year, representing a growth of approximately 19.7%[94] - The company has implemented various training programs for contract employees to enhance their skills and adaptability to customer positions[52] Financial Position and Assets - The total current assets increased from RMB 1,827.2 million as of December 31, 2023, to RMB 2,247.4 million as of December 31, 2024[34] - The net current assets as of December 31, 2024, were RMB 1,119.3 million, up from RMB 1,011.1 million in 2023, indicating a growth of approximately 10.7%[34] - The bank balance and cash, including restricted bank deposits, amounted to RMB 980.9 million as of December 31, 2024, slightly down from RMB 984.1 million in 2023[35] - The net asset value increased from RMB 1,279,962 thousand in 2023 to RMB 1,376,848 thousand in 2024, reflecting a growth of approximately 7.57%[60] - The total assets less current liabilities rose from RMB 1,321,481 thousand in 2023 to RMB 1,424,090 thousand in 2024, an increase of about 7.77%[60] Expenses and Costs - Service costs increased by 20.8% to RMB 5,656.9 million in 2024, reflecting the growth in revenue from the flexible workforce business[21] - The group's gross profit decreased by approximately 1.4% from RMB 622.6 million for the year ended December 31, 2023, to RMB 613.6 million for the year ending December 31, 2024[22] - The overall gross margin declined from approximately 11.7% for the year ended December 31, 2023, to about 9.8% for the year ending December 31, 2024, primarily due to a decrease in gross margin from flexible staffing services[22] - Sales expenses decreased by approximately 5.4% from RMB 358.9 million for the year ended December 31, 2023, to RMB 339.4 million for the year ending December 31, 2024[24] - Administrative expenses decreased by approximately 5.2% from RMB 101.9 million for the year ended December 31, 2023, to RMB 96.6 million for the year ending December 31, 2024[24] Strategic Plans and Outlook - The company plans to expand its service offerings in mainland China, particularly with state-owned enterprises and in the financial services sector[8] - The strategic focus for 2025 remains on the flexible workforce in mainland China, targeting high-growth sectors such as new energy, financial services, and healthcare[14] - The group plans to expand into low-penetration areas in South and Central China while consolidating its market leadership in first-tier cities to capture more market share[14] - The group expects stable growth in the flexible workforce business in mainland China, supported by the expansion of its product portfolio and ongoing progress in the IT outsourcing segment[13] - The company maintains a cautiously optimistic outlook for 2025, anticipating more growth opportunities despite ongoing geopolitical tensions and economic challenges[12] Financial Management and Risks - The group faces various financial risks, including currency risk, interest rate risk, and liquidity risk, and implements a conservative risk management strategy[38] - The group will closely monitor foreign exchange risks and consider hedging against significant foreign currency risks as necessary[39] - The group has no significant external debt or equity financing plans at present, indicating a conservative financial strategy[33] - The group plans to continue meeting its operational funding and capital expenditure needs through cash generated from operations and proceeds from its shares listed on the Hong Kong Stock Exchange[33] Compliance and Governance - The company has maintained compliance with all applicable corporate governance codes throughout the reporting period[103] - The board of directors has adopted the standard code for securities trading as per the listing rules, confirming compliance throughout the reporting period[104] - The audit committee, consisting of five members, provides independent opinions on the effectiveness of the financial reporting system, risk management, and internal controls[105] - Deloitte has verified the figures in the preliminary announcement for the consolidated balance sheet, income statement, and cash flow statement for the year ending December 31, 2024[107] New Accounting Standards - The company has adopted new international financial reporting standards effective January 1, 2024, which may impact future financial reporting and disclosures[67] - The company anticipates that the application of the new standards will not have a significant impact on its financial position and performance[76] - The new International Financial Reporting Standards (IFRS) 18 will affect the presentation of the income statement and future financial disclosures, with an expected effective date of January 1, 2027, or later[78]

Revenue and Profit Performance - Revenue for the six months ended June 30, 2024, was RMB 2,948.5 million, representing a 16.6% increase from RMB 2,528.998 million in the same period of 2023[7]. - Profit attributable to owners of the company decreased to RMB 54.4 million, down approximately 2.2% from RMB 55.6 million in the previous year[7]. - Adjusted profit attributable to owners increased to RMB 63.2 million, up about 2.3% from RMB 61.7 million year-on-year[7]. - The overall revenue increased by approximately 16.6% from RMB 2,528.998 million to RMB 2,948.453 million, reflecting strong performance across various service lines[15]. - The company’s profit for the six months ended June 30, 2024, was RMB 54,391,000, a decrease from RMB 55,596,000 for the same period in 2023, representing a decline of approximately 2.2%[141]. Staffing and Employment Metrics - Revenue from flexible staffing in mainland China grew approximately 21.5% compared to the same period last year[8]. - The flexible staffing segment generated revenue of RMB 2,881.6 million, reflecting an 18.4% increase year-on-year[8]. - The total number of contract employees introduced by the company decreased by 2.7% from approximately 40,800 to about 39,700 due to the cancellation of several short-term projects in Taiwan, while there was a robust growth of approximately 11.1% in contract employees in mainland China[9]. - The number of full-time employees decreased by 6.5% from approximately 1,274 to 1,191, reflecting adjustments in workforce management[14]. - As of June 30, 2024, the company employed approximately 1,191 full-time employees and about 39,700 contract workers[52]. Financial Management and Cash Flow - The net cash flow from operating activities increased significantly by 38.4% compared to the previous year, demonstrating strong cash flow management and risk control capabilities[9]. - The company’s net cash used in operating activities was RMB (40,818) thousand, an improvement from RMB (66,316) thousand in the same period of 2023[117]. - The net cash generated from investing activities was RMB 84,544 thousand, significantly higher than RMB 17,289 thousand in the previous year[117]. - The group’s total retained earnings as of June 30, 2024, amounted to approximately RMB 3,662,000,000, an increase from RMB 3,424,000,000 as of December 31, 2023[137]. Revenue Segmentation - Revenue from recruitment solutions decreased by approximately 31.6% from RMB 841 million to RMB 575 million for the six months ending June 30, 2024, due to a sluggish employment market and higher client expectations[16]. - The segment revenue from Human Resource Solutions was RMB 2,939,163 thousand, while other HR services contributed RMB 9,290 thousand, indicating a strong performance in the core service area[123][128]. - Revenue from multinational companies and local enterprises accounted for RMB 2,737,417 thousand, up from RMB 2,401,800 thousand in the previous year, marking a growth of approximately 14%[130]. Cost and Expense Management - Service costs rose by approximately 19.0% from RMB 2,241.1 million to RMB 2,667.1 million for the same period, aligning with revenue growth in flexible staffing[18]. - Sales and administrative expenses decreased by approximately 6.2% from RMB 177.3 million to RMB 166.3 million, primarily due to restructuring efforts[20]. - Total employee costs for the six months ended June 30, 2024, amounted to RMB 2,768,912,000, compared to RMB 2,358,302,000 for the same period in 2023, reflecting an increase of about 17.4%[143]. Shareholder and Equity Information - The company did not declare an interim dividend for the six months ending June 30, 2024, consistent with the previous period[102]. - The company’s issued and paid-up ordinary shares remained at 207,505,000 shares as of June 30, 2024[156]. - The largest controlled entity, ManpowerGroup Inc., holds 36.87% (76,499,388 shares) of the company's shares[98]. Stock Options and Restricted Share Units - The stock option plan allows for a maximum issuance of 20,000,000 shares, which represents 10% of the total shares issued at the time of listing[58]. - The company granted stock options totaling 6,824,375 shares as of June 30, 2024[66]. - The total number of restricted stock units granted in the first half of 2024 is 3,930,940[91]. - The company granted a total of 2,492,000 restricted stock units (RSUs) to directors and eligible employees on March 30, 2023, representing 1.2% of the company's shares on that date[170]. Compliance and Governance - The company has complied with the corporate governance code as of June 30, 2024[53]. - The independent auditor's review did not identify any matters that would lead to a belief that the financial statements were not prepared in accordance with International Accounting Standard 34[108]. Future Outlook and Strategic Plans - The company aims to actively seek strategic acquisitions and partnerships to strengthen its leadership position in the human resource solutions market[12]. - The company plans to continue upgrading its internal technology infrastructure to enhance productivity and improve cross-selling opportunities among different business lines[12]. - The company aims to maintain sufficient resources to restart R&D plans and business expansion when suitable opportunities arise[49].

Revenue Performance - Revenue for the six months ended June 30, 2024, was RMB 2,948.5 million, an increase of 16.6% compared to RMB 2,528.998 million in the same period of 2023[2] - Total revenue for the company was RMB 2,948,453, reflecting a 16.6% growth from RMB 2,528,998 in the previous year[12] - Revenue from flexible staffing services in mainland China grew approximately 21.5% compared to the same period last year[4] - Revenue from flexible workforce solutions reached RMB 2,881,645, an 18.4% increase from RMB 2,433,094 in the previous year[12] - Revenue from recruitment solutions decreased by approximately 31.6% from RMB 84.1 million to RMB 57.5 million, primarily due to a sluggish employment market and higher client demands[13] - Revenue from the mainland China market was RMB 2,060,803,000, representing a 19.3% increase from RMB 1,727,410,000 in the previous year[67] Profitability - Profit attributable to owners of the company decreased to RMB 54.4 million, a decline of approximately 2.2% from the previous year[4] - Adjusted profit attributable to owners increased to RMB 63.2 million, reflecting a growth of about 2.3% year-on-year[4] - The group's gross profit decreased by approximately 2.3% from RMB 287.9 million to RMB 281.3 million, mainly due to a reduction in gross profit from recruitment solutions and other HR services[16] - The overall gross margin declined from approximately 11.4% to 9.5%, attributed to a decrease in the gross margin of flexible employment and a reduction in revenue from high-margin recruitment solutions[16] - The group reported a profit before tax of RMB 79,715,000 for the six months ended June 30, 2024, compared to RMB 78,246,000 in the previous year[53] - The net profit for the period was RMB 64,577,000, up from RMB 63,592,000 in 2023[53] Employee Metrics - The number of contract employees introduced decreased by 2.7% to approximately 39,700, primarily due to the cancellation of several short-term projects in Taiwan[5] - As of June 30, 2024, the approximate number of employees in the flexible workforce segment is 39,700, a decrease of 2.7% from 40,800 in the previous year[11] - The total employee costs for the six months ended June 30, 2024, amounted to RMB 2,768,912,000, representing an increase of 17.4% compared to RMB 2,358,302,000 in the previous year[5] - As of June 30, 2024, the company employed approximately 1,191 full-time employees and about 39,700 contract workers[45] Cash Flow and Financial Position - Net cash flow from operating activities increased significantly by 38.4% compared to the previous year[6] - The group's cash and bank balances, including restricted bank deposits, decreased to RMB 923.4 million as of June 30, 2024, from RMB 984.1 million as of December 31, 2023[26] - The group's net current assets amounted to RMB 1,019.3 million, up from RMB 1,011.1 million as of December 31, 2023[25] - The total current assets increased from RMB 1,827.2 million as of December 31, 2023, to RMB 1,888.3 million as of June 30, 2024[25] - The company's total equity increased to RMB 1,283,483,000 from RMB 1,279,962,000, reflecting a stable financial position[57] Strategic Focus and Outlook - The company continues to expand its service offerings in mainland China, particularly in the information technology outsourcing sector[4] - The flexible workforce remains a strategic focus for the company in mainland China, targeting high-growth sectors such as new energy, financial services, IT services, healthcare, and retail[8] - The company plans to expand its customer base to state-owned enterprises and the financial services sector, aiming to increase market share in mainland China[8] - The company maintains a cautiously optimistic outlook for the second half of 2024, anticipating more growth opportunities despite geopolitical tensions and unclear trade policies impacting recovery[7] Governance and Compliance - The company has established a committee to oversee financial reporting and internal controls, ensuring compliance with corporate governance standards[51] - The company emphasizes the importance of data security and compliance, focusing on upgrading internal operational technology infrastructure[9] Changes in Capital and Investments - The board has decided to reallocate RMB 13 million (8.5% of unutilized proceeds) to brand building and digital marketing to enhance market visibility[43] - An additional RMB 44.4 million (28.9% of unutilized proceeds) will be allocated to working capital and general corporate purposes to improve financial management flexibility[43] - The company has no plans for significant investments or acquisitions of capital assets in the near future[40] - The group did not engage in any significant acquisitions or disposals of subsidiaries, joint ventures, or associates during the period[38]

Stock Options and Restricted Share Units - As of December 31, 2023, the number of stock options available for grant under the stock option plan was 9,746,375 shares and is expected to increase to 13,175,625 shares by the end of the year[1]. - The potential shares to be issued from stock options granted under the plan represent 3.3% of the weighted average number of shares issued as of December 31, 2023[1]. - No stock options were cancelled during the year ending December 31, 2023[2]. - No new stock options were granted or agreed to be granted during the reporting period[3]. - The restricted share unit plan was adopted on June 10, 2021, with a validity period of ten years, leaving approximately seven years and two months remaining[6]. - The board has the discretion to determine the number of restricted share units to be granted under the plan[10]. - The exercise price of shares under the stock option plan will be determined by the board, with a minimum price set at the higher of the closing price on the grant date or the average closing price over the preceding five trading days[13]. - The stock option plan is effective for a period of ten years from the adoption date, with approximately six years and three months remaining as of the report date[14]. - The company granted stock options totaling 10,253,625 shares, with 3,429,250 shares unexercised as of December 31, 2023[17]. - The estimated fair value of stock options granted on specific dates ranges from approximately RMB 3,762,000 to RMB 5,703,000[20]. - As of December 31, 2023, 6,824,375 shares remain unexercised after accounting for 3,429,250 shares that have expired or been forfeited[17]. - The stock options granted are subject to performance targets based on audited revenue or adjusted net profit growth rates[19]. - The exercise price of stock options ranges from HKD 8.61 to HKD 10.94 per share, with varying exercise periods[17]. - No stock options were exercised during the reporting period, thus the weighted average closing price prior to the exercise date is not applicable[22]. - The stock options are divided into two tranches, with specific vesting conditions tied to performance metrics[20]. - The company has a maximum limit on stock options granted to any participant, not exceeding 1% of the total issued share capital[24]. Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 5,303,592, representing a 15.6% increase from RMB 4,588,460 in 2022[59]. - The net profit attributable to shareholders rose to RMB 126.5 million, an increase of approximately 6.6% year-on-year[41]. - The adjusted profit attributable to the company's owners was RMB 135,079, a 2.5% increase from RMB 131,771 in the previous year[59]. - The flexible workforce revenue in mainland China grew by 25.2% year-on-year, contributing significantly to the overall revenue growth[61]. - The total revenue from mainland China increased by over 100% compared to 2020, with flexible staffing revenue growing at a compound annual growth rate of 30%[40]. - The number of contract employees introduced during the year increased by 10% to 54,000, with a significant increase of approximately 25.4% in mainland China[42]. - The number of introduced positions during the year was 2,448, a decrease of 44.1% compared to the previous year[50]. - The company achieved a 24.4% increase in revenue per employee, reaching RMB 4,124[63]. - The revenue from other human resource services slightly increased by 3.0% to RMB 22,900 from RMB 22,300 in the previous year[71]. - The group's service costs increased by approximately 18.1% from RMB 3,964.5 million for the year ended December 31, 2022, to RMB 4,681.0 million for the year ended December 31, 2023[74]. - Gross profit decreased by about 0.2% from RMB 623.9 million for the year ended December 31, 2022, to RMB 622.6 million for the year ended December 31, 2023, primarily due to a decline in gross profit from recruitment solutions[74]. - Sales expenses decreased by approximately 2.1% from RMB 366.7 million for the year ended December 31, 2022, to RMB 358.9 million for the year ended December 31, 2023, mainly due to reduced overall expenses related to recruitment solutions[75]. - The group's gross profit margin declined from approximately 13.6% for the year ended December 31, 2022, to about 11.7% for the year ended December 31, 2023, primarily due to a decrease in revenue from high-margin recruitment solutions[90]. - Revenue from flexible staffing increased by approximately 17.9% from RMB 4,343.6 million for the year ended December 31, 2022, to RMB 5,122.8 million for the year ended December 31, 2023[88]. - The Group's profit attributable to owners increased by approximately 6.6% from RMB 118.6 million for the year ended December 31, 2022, to RMB 126.5 million for the year ended December 31, 2023[98]. - The effective tax rate decreased from approximately 23.1% for the year ended December 31, 2022, to about 20.6% for the year ended December 31, 2023, due to a subsidiary qualifying for a preferential tax rate of 15%[97]. Market Outlook and Strategy - The company maintains a cautious outlook for 2024 due to potential global economic slowdown and geopolitical uncertainties[45]. - The group anticipates a cautious outlook for business growth in 2024 due to ongoing economic challenges, but remains optimistic about the mid-term prospects driven by the flexible staffing industry[82]. - The strategic focus for 2024 will remain on flexible staffing in mainland China, targeting key growth sectors such as renewable energy, financial services, IT services, healthcare, and consumer goods[83]. - The company plans to continue investing in its internal technology platform to enhance productivity and operational efficiency in 2024[48]. - The company aims to expand its market presence through strategic investments in joint ventures in mainland China[47]. - The company plans to expand its service offerings in mainland China, particularly in the flexible workforce sector and IT outsourcing[62]. - The group plans to continue seeking strategic acquisitions and partnerships to strengthen its leadership position in the human resources solutions market[84]. Corporate Governance and Management - The board consists of one executive director and seven non-executive directors, ensuring a diverse governance structure[166]. - The company has multiple independent directors with extensive experience across various sectors, enhancing governance and strategic oversight[158]. - The board is responsible for overseeing all major affairs of the company, including policy formulation, overall strategy, and risk management[167]. - The management team is committed to enhancing shareholder value through effective governance and strategic initiatives[155]. - The company has mechanisms in place to support the independence of the board and independent opinions[198]. - The company continues to enhance its corporate governance framework, focusing on promoting corporate culture among all employees[194]. - The board has adopted the corporate governance code as its own and has complied with the code provisions throughout the reporting period[193]. - The company emphasizes the importance of board independence as a key aspect of good corporate governance[198]. - The management team is responsible for implementing strategies adopted by the board and for the daily management and operations of the group[196]. - New employees are required to participate in orientation training to better understand the company's culture and policies[194]. - The company regularly invites external experts to provide training to management to enhance their knowledge and skills[194]. - The board meets regularly to review the overall business performance and make financial and operational decisions[196]. - The company has established effective mechanisms for independent directors to declare their interests in transactions discussed at board meetings[199]. Employee and Stakeholder Information - As of December 31, 2023, the group employed approximately 1,286 full-time employees and about 54,000 contract employees[171]. - The total number of full-time employees decreased to 1,286, a decline of 7.1% year-on-year[50]. - The number of full-time employees decreased by 7.1% to 1,286, while the number of contract employees increased by 9.8% to 54,000[59]. - The candidate database for flexible staffing grew to 2,523 thousand, representing a 16.9% increase[50]. - The company aims to empower business partners with long-term vitality through its corporate culture aligned with its goals and values[165]. - The independent non-executive director, Ms. Wong Man Lee, has over 31 years of experience in management, marketing, and innovation[185]. - The chairman and CEO positions were held by Darryl E. Green and Choi Chi Fai respectively from January 1, 2021, to June 29, 2023[168]. - Mr. Green has been with MAN Group since May 2007, serving in various executive roles, including President and COO, overseeing operational performance across four regions[146]. - Mr. McGinnis has extensive experience in financial accounting and regulatory reporting, previously serving as CFO at HSBC North America Holdings Inc.[148]. - Mr. Jones has a strong background in capital markets and has served as legal counsel for multiple companies prior to joining MAN[150]. - Mr. Zhai has held significant positions in consumer goods and investment management, contributing to strategic guidance for the group since his appointment as a director in August 2015[152][153]. - Mr. Yang has over 29 years of experience in public service and private enterprise, currently serving as Managing Director for Baozun Asia Pte Ltd.[154]. - Mr. Huang has been an independent non-executive director since March 2019, providing independent opinions to the board[155]. - The board includes members with significant experience in finance, law, and corporate governance, ensuring a diverse skill set[159].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 5,303.6 million, representing a 15.6% increase from RMB 4,588.5 million in 2022[3]. - Revenue from flexible staffing in mainland China grew by 25.2% year-on-year, contributing to a total of RMB 5,123 million for the flexible staffing segment, which increased by 17.9% overall[4]. - The company reported a profit attributable to shareholders of RMB 126.5 million, up 6.6% from RMB 118.6 million in the previous year[18]. - The average revenue per employee increased by 24.4% to RMB 4,124, compared to RMB 3,315 in the previous year[3]. - The recruitment solutions segment saw a significant decline of 29.1%, with revenue dropping to RMB 157.8 million from RMB 222.6 million[12]. - The adjusted profit attributable to owners for the year ended December 31, 2023, was RMB 5,122.8 million, representing an increase of approximately 17.9% from RMB 4,343.6 million for the year ended December 31, 2022[33]. - The gross profit for the year ended December 31, 2023, was RMB 622.6 million, a slight decrease of about 0.2% from RMB 623.9 million for the year ended December 31, 2022, primarily due to a reduction in gross profit from recruitment solutions[34]. - The net profit for the year ended December 31, 2023, was RMB 146,592 thousand, an increase from RMB 135,477 thousand in 2022, reflecting a growth of approximately 8.3%[85]. - Other income for the year was RMB 19,194 thousand, compared to RMB 16,119 thousand in 2022, showing an increase of approximately 12.9%[85]. - The total comprehensive income for the year was RMB 153,895 thousand, down from RMB 183,214 thousand in 2022, indicating a decrease of approximately 16.0%[85]. Expenses and Costs - The overall service costs increased by 18.1% to RMB 4,681 million, aligning with the revenue growth in flexible staffing[13]. - Sales expenses accounted for approximately 6.8% of total revenue for the year ended December 31, 2023, down from 8.0% for the year ended December 31, 2022, due to effective cost control and improved operational efficiency[36]. - Administrative expenses represented about 1.9% of total revenue for the year ended December 31, 2023, compared to 2.2% for the year ended December 31, 2022[36]. - The total employee costs amounted to RMB 4,900,860 thousand, an increase from RMB 4,215,714 thousand in the previous year[140]. - The financing costs increased to RMB (17,755) thousand from RMB 2,366 thousand, reflecting a substantial rise in costs[91]. Strategic Outlook - The company plans to continue seeking strategic acquisitions and partnerships to strengthen its position in the human resource solutions market[8]. - The company maintains a cautious outlook for 2024 but is optimistic about mid-term prospects, particularly in the flexible staffing sector in mainland China[6]. - The company plans to focus on key growth industries in 2024, including new energy, financial services, information technology services, healthcare, and consumer goods[29]. - The company will continue to invest in its internal technology platform to enhance productivity and operational efficiency in 2024[30]. - The group adopts a cautious approach towards its development and investment plans in light of geopolitical tensions and uncertain global economic outlook[48]. Cash Flow and Liquidity - The group maintains sufficient reserves and continues to monitor cash flow forecasts and actual cash flows to manage liquidity risk[45]. - The group expects to meet its operational funding, capital expenditure, and other capital needs through cash generated from operations and funds raised from its listing[71]. - As of December 31, 2023, the group's bank balance and cash amounted to RMB 984.1 million, an increase from RMB 937.8 million as of December 31, 2022[72]. - The current ratio as of December 31, 2023, was 2.2 times, slightly down from 2.3 times as of December 31, 2022[76]. Corporate Governance - The company aims to maintain high levels of corporate governance to enhance shareholder value and accountability[179]. - The company has adopted the corporate governance code as its own, ensuring compliance throughout the reporting period[195]. - The audit committee, consisting of five members, is responsible for overseeing the effectiveness of the financial reporting system and internal controls[197]. - The company has confirmed that all directors adhered to the trading standards during the reporting period[180]. Shareholder Returns - The board proposed a final dividend of HKD 0.31 per share for the year ending December 31, 2023, amounting to approximately HKD 64.3 million (around RMB 58.1 million), subject to shareholder approval[143]. - The company declared an interim dividend of HKD 1.60 per share for the year ended December 31, 2022, totaling approximately HKD 332 million (around RMB 283.9 million)[142]. Market Presence and Recognition - The company continues to expand its service offerings in mainland China, particularly in flexible staffing and financial services sectors[26]. - The company has received several awards for its customized professional services in the Greater China region, highlighting its market recognition[27]. - The company confirmed government subsidies related to COVID-19, primarily associated with the employment support scheme provided by the Hong Kong government[169]. Trade Receivables and Payables - The company's accounts receivable increased to RMB 855,822 thousand in 2023 from RMB 674,943 thousand in 2022, representing a growth of approximately 26.8%[176]. - The aging analysis of trade receivables shows that amounts overdue for more than 90 days rose to RMB 36,020 thousand in 2023 from RMB 12,168 thousand in 2022, an increase of 196.5%[176]. - The company’s trade payables increased to RMB 2,868 thousand in 2023 from RMB 2,708 thousand in 2022, marking a rise of about 5.9%[193].

Revenue Growth - In the first half of 2023, revenue from flexible employment in mainland China increased by approximately 24% compared to the same period last year[8]. - Revenue generated from flexible employment rose from RMB 2,101.3 million in the six months ended June 30, 2022, to RMB 2,433.1 million in the six months ended June 30, 2023, representing an increase of about 15.8%[16]. - Total revenue for the six months ended June 30, 2023, was RMB 2,528.998 million, a 13.5% increase from RMB 2,228.329 million in the same period last year[17]. - The total revenue for the first half of 2023 was RMB 2,529.0 million, representing a year-on-year growth of approximately 13.5%[34]. - Revenue from the flexible staffing business increased by about 15.8% to RMB 2,433.1 million, with revenue from mainland China growing approximately 24% year-on-year[34]. - Revenue from other human resource services rose by approximately 19.3% to RMB 11.8 million from RMB 9.9 million for the same period in 2022, primarily due to increased revenue from consulting services[146]. - For the six months ended June 30, 2023, the company's revenue increased by approximately 13.5% to RMB 2,529.0 million from RMB 2,228.3 million for the same period in 2022[173]. Profitability - The adjusted net profit attributable to the company increased to RMB 61.7 million, up about 3.7% from the previous year[34]. - The profit attributable to the company's owners for the same period was RMB 55,596 thousand, a slight increase of 1.8% compared to RMB 54,591 thousand in 2022[123]. - Adjusted profit attributable to the company's owners was RMB 61,705 thousand, reflecting a 3.7% increase from RMB 59,484 thousand in the previous year[123]. - The company's gross profit margin decreased from approximately 13.3% for the six months ended June 30, 2022, to about 11.4% for the same period in 2023, mainly due to a decline in revenue from high-margin recruitment solutions[149]. - The adjusted profit attributable to the owners of the group for the six months ended June 30, 2023, increased by approximately 3.7% to RMB 61.7 million from RMB 59.5 million for the same period in 2022[180]. Operational Efficiency - The average revenue per employee increased by 22.0% year-on-year due to active cost management and improved operational efficiency[10]. - The sales expenses as a percentage of total revenue decreased from 8.3% in 2022 to 7.0% in 2023, attributed to effective cost control[45]. - The accounts receivable turnover days improved to 51.8 days, down from 53.9 days, indicating a 3.9% improvement[123]. - The group employed approximately 1,274 in-house employees and about 40,800 contract employees as of June 30, 2023[193]. Strategic Focus - The strategic focus for the second half of 2023 will remain on flexible employment in mainland China, targeting key growth industries such as new energy, financial services, IT services, healthcare, and consumer goods[12]. - The company continues to expand its service offerings in mainland China, particularly in flexible staffing, and is actively targeting state-owned enterprises and the financial services sector to increase market share[125]. - The company plans to actively seek strategic acquisitions and partnerships to strengthen its leadership position in the human resource solutions market, focusing on opportunities that enhance its flexible staffing product offerings[128]. - The company plans to expand its flexible workforce business in low-penetration areas such as South and Central China while consolidating its market leadership in first-tier cities[143]. Financial Position - As of June 30, 2023, the company's bank balances and cash amounted to RMB 880.3 million, a decrease from RMB 937.8 million as of December 31, 2022, primarily due to cash outflows from the expansion of flexible employment business[27]. - The net current assets as of June 30, 2023, were RMB 923.9 million, slightly down from RMB 926.7 million at the end of 2022[52]. - The company's current ratio as of June 30, 2023, was 2.3 times, consistent with the ratio as of December 31, 2022[162]. - As of June 30, 2023, the group had outstanding secured bonds amounting to RMB 59.5 million, a significant increase from RMB 9.7 million as of December 31, 2022[187]. Taxation and Other Income - The actual income tax rate for the six months ended June 30, 2023, was approximately 18.7%, down from 20.1% in the same period last year, due to a subsidiary being recognized as a high-tech enterprise[22]. - Other income increased by approximately 71.4% to RMB 9.2 million for the six months ended June 30, 2023, mainly attributed to increased interest income from bank deposits and government subsidies[20]. Employee Relations and Governance - The company has established a union in mainland China to protect employee rights and encourage participation in management decisions[80]. - The company aims to enhance its corporate governance to protect shareholder interests and improve accountability[83]. - The board confirmed compliance with the standard code as of June 30, 2023[85]. Share Options and Plans - The total number of share options available under the share option scheme is capped at 10% of the total issued shares at the time of listing, equivalent to 20,000,000 shares[86]. - As of June 30, 2023, the total number of options granted but not exercised is 10,253,625, with 2,089,750 options expired or forfeited, leaving 8,163,875 options available for exercise[104]. - The restricted share unit plan was adopted on June 10, 2021, with a validity period of 10 years, leaving approximately 7 years and 9 months remaining[98]. - The restricted share unit plan aims to reward participants for their contributions and to attract and retain talent[96]. - The board may grant rewards to participants at any time during the plan's duration, with the number of restricted share units to be determined at the board's discretion[99].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 2,528.998 million, an increase of 13.5% compared to RMB 2,228.329 million in the same period last year[3]. - Adjusted profit attributable to the company's owners increased to RMB 55.596 million, reflecting a slight growth of 1.8% from RMB 54.591 million year-on-year[3]. - Revenue per full-time employee rose to RMB 61,705, up 3.7% from RMB 59,484 in the previous year[3]. - The group's revenue increased by approximately 13.5% from RMB 2,228.3 million for the six months ended June 30, 2022, to RMB 2,529.0 million for the six months ended June 30, 2023[17]. - Revenue from flexible staffing rose by about 15.8% from RMB 2,101.3 million to RMB 2,433.1 million, driven by increased business from major clients and the development of new clients in China[17]. - Revenue from recruitment solutions decreased by approximately 28.2% from RMB 117.1 million to RMB 84.1 million, primarily due to clients being cautious in issuing job offers and a decline in candidates' willingness to change jobs[17]. - Revenue from other human resource services increased by about 19.3% from RMB 9.9 million to RMB 11.8 million, mainly due to increased revenue from consulting services[22]. - The net profit for the period was RMB 63,592 thousand, compared to RMB 66,189 thousand in the previous year, reflecting a decline of approximately 7.9%[68]. - The company reported a total revenue of RMB 2,218,416,000 for the human resources solutions segment for the six months ending June 30, 2023, which indicates a significant increase from the previous period[134]. Workforce and Employee Metrics - The total number of contract employees introduced increased by 33.8% to approximately 40,800, with a significant rise of about 29.2% in mainland China[7]. - As of June 30, 2023, the company employed approximately 1,274 full-time employees and around 40,800 contract workers, indicating a significant workforce to support operations[74]. - Total employee costs for the six months ended June 30, 2023, amounted to RMB 2,358,302,000, up from RMB 2,057,020,000 in the same period of 2022, reflecting an increase of about 14.6%[141]. Market and Strategic Outlook - The company remains cautious about business growth in the second half of the year due to ongoing global economic challenges, but maintains a more optimistic medium-term outlook[11]. - The company continues to expand its service offerings in mainland China, particularly in the flexible workforce sector, and is actively targeting state-owned enterprises and the financial services sector[7]. - The group plans to expand its customer base to state-owned enterprises and the financial services sector to increase market share in mainland China[13]. - The group anticipates stable growth in the flexible staffing business in mainland China, supported by an expanded product portfolio[12]. - The group will actively seek strategic acquisitions and partnerships to strengthen its leadership position in the human resource solutions market[15]. Cost Management and Efficiency - The company has implemented a series of proactive cost management measures to address economic challenges and improve operational efficiency[5]. - The company achieved a reduction in trade receivables turnover days from 53.9 days to 51.8 days, indicating improved risk control capabilities[8]. Financial Position and Assets - As of June 30, 2023, the net current assets amounted to RMB 923.9 million, a slight decrease from RMB 926.7 million as of December 31, 2022[40]. - Cash and cash equivalents decreased to RMB 880.3 million from RMB 937.8 million, primarily due to cash outflows from the expansion of flexible staffing operations[41]. - Total liabilities increased from RMB 723.8 million as of December 31, 2022, to RMB 737.1 million as of June 30, 2023[40]. - The company's trade and other receivables increased to RMB 824,389 thousand as of June 30, 2023, compared to RMB 700,289 thousand as of December 31, 2022[101]. - The company's non-current assets totaled RMB 335,362 thousand, an increase of 19.97% from RMB 279,587 thousand as of December 31, 2022[101]. Governance and Compliance - The board of directors has emphasized high levels of corporate governance to safeguard shareholder interests and enhance corporate value[65]. - The company continues to comply with the corporate governance code as per the listing rules, with a noted exception regarding the attendance of the chairman at the annual general meeting[94]. Dividends and Shareholder Returns - The company did not recommend an interim dividend for the six months ended June 30, 2023, while the previous interim dividend was HKD 1.60 per share, totaling HKD 332 million[67]. - The company declared a final dividend of HKD 0.12 per share, totaling approximately HKD 24.9 million (approximately RMB 22.8 million), which has been approved by shareholders[124].