Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 5,473,251 thousand, a 22.3% increase from RMB 4,472,172 thousand in 2023[4] - Gross profit for 2024 was RMB 498,831 thousand, resulting in a gross margin of 9.1%, slightly down from 9.4% in 2023[4][6] - The company reported a net loss attributable to equity holders of RMB 70,970 thousand for 2024, compared to a profit of RMB 41,045 thousand in 2023[4] - Adjusted net profit attributable to equity holders was RMB 87,888 thousand for 2024, up from RMB 68,249 thousand in 2023[4] - Total revenue for the year ended December 31, 2024, was approximately RMB 5,473.3 million, an increase of approximately RMB 1,001.1 million or 22.4% compared to RMB 4,472.2 million for the year ending December 31, 2023[44] - The revenue from digital technology and cloud services reached approximately RMB 2,144.5 million, with a year-on-year growth of about 22.4%, accounting for approximately 39.1% of the company's total revenue[10] - The company recorded a net loss of approximately RMB 58.2 million for the fiscal year due to impairment provisions of about RMB 130.9 million related to goodwill from the acquisition of Shanghai Sire[11] - The company recorded a revenue of approximately RMB 5,473.3 million for the year ending December 31, 2024, an increase of approximately RMB 1,001.1 million or 22.4% compared to RMB 4,472.2 million for the year ending December 31, 2023[19] - The general service outsourcing segment generated revenue of approximately RMB 3,010.1 million, reflecting an increase of approximately RMB 594.4 million or 24.6% from RMB 2,415.7 million in the previous year[22] - The digital technology and cloud services segment achieved revenue of approximately RMB 2,144.5 million, an increase of approximately RMB 392.0 million or 22.4% compared to RMB 1,752.5 million in the prior year[19] Assets and Liabilities - Total assets increased to RMB 2,651,049 thousand in 2024, up from RMB 2,291,357 thousand in 2023[5] - Current assets rose to RMB 2,248,878 thousand in 2024, compared to RMB 1,753,778 thousand in 2023, indicating improved liquidity[5] - The company’s total equity decreased to RMB 1,418,884 thousand in 2024 from RMB 1,504,528 thousand in 2023[5] - Current liabilities increased to RMB 1,201.82 million in 2024 from RMB 768.22 million in 2023, marking a rise of approximately 56.2%[74] - Trade receivables, contract assets, and notes receivable amounted to RMB 1,730.90 million as of December 31, 2024, up from RMB 1,301.90 million in 2023, reflecting a growth of approximately 33.0%[75] - The company's trade and other payables rose to approximately RMB 701.1 million as of December 31, 2024, an increase of about RMB 160.1 million or 29.6% from RMB 541.0 million on December 31, 2023[85] - Borrowings increased by approximately RMB 271.1 million or 147.0% to about RMB 455.6 million as of December 31, 2024, compared to RMB 184.5 million on December 31, 2023[87] Employee and Workforce - The number of information technology talents employed by the company exceeded 11,800, with a significant increase of 2,365 employees, representing a growth rate of about 25.0% compared to the previous year[17] - The internal growth of flexible staffing employees increased to 26,319, up by 3,399 from the previous year, representing a growth rate of approximately 14.8%[17] - The company increased its flexible workforce from 35,908 employees as of December 31, 2023, to 41,868 employees by December 31, 2024, driven by internal growth[19] - The average adjusted profit per employee increased from approximately RMB 100.9 thousand to about RMB 105.1 thousand year-on-year[12] - The average adjusted profit per internal employee increased to RMB 105.1 thousand in 2024, up from RMB 100.9 thousand in 2023, reflecting a growth of 2.1%[31] - As of December 31, 2024, the company had a total of 44,058 employees, including 1,168 internal employees and 42,890 outsourced employees[32] Strategic Initiatives - The company aims to leverage digital transformation and international development opportunities in the human resources sector[8] - A global expansion strategy is being implemented to enhance localized service capabilities in multiple countries and regions[8] - The company plans to accelerate its international business investments and establish overseas subsidiaries to provide localized human resource services in over 20 countries and regions[13] - The company is focusing on enhancing its integrated human resource ecosystem through self-developed technology and investing in AI recruitment platforms to improve hiring efficiency[13] - The company aims to maintain rapid business growth and restore profitability by leveraging its experience in the human resources industry and ongoing global expansion strategies[11] - The company is focusing on global expansion by providing localized HR services to clients' subsidiaries outside of China, enhancing multi-dimensional service offerings[41] - The company is investing in the Wancai Youcai recruitment platform to explore AI technology applications in recruitment, aiming to improve efficiency and precision[42] Governance and Compliance - The company is preparing for its upcoming listing on the Hong Kong Stock Exchange in May 2024, indicating growth and expansion plans[128] - The company is focused on maintaining compliance with listing rules and enhancing corporate governance through experienced board members[136] - The independent directors bring diverse backgrounds in finance, accounting, and corporate governance, which is expected to strengthen the company's strategic initiatives[135] - The company has seen significant leadership changes with the appointment of various independent directors with extensive experience in finance and compliance[135] - The board includes members with qualifications from prestigious institutions, enhancing the company's governance and strategic direction[136] Risks and Challenges - Major risks include reliance on new economy industry clients for general outsourcing services, which could significantly impact business performance if demand slows[142] - The company has a limited operational history, which poses challenges in managing current and future growth in a rapidly changing market[142] - The company is subject to foreign investment restrictions in the value-added telecommunications business as per the old negative list and the Ministry of Industry and Information Technology consultations[185] - The interpretation and implementation of the Foreign Investment Law of the People's Republic of China may create substantial uncertainty affecting the company's structure and governance[191] Shareholder Information - As of December 31, 2024, the company has issued a total of 156,699,879 shares[166] - Zhang Jianguo holds 46,970,500 shares, representing 29.97% of the company's equity[166] - Major shareholder Wang Fen holds 61,066,300 shares, representing 38.97% of the equity[169] - The board does not recommend the payment of a final dividend for the year ending December 31, 2024, while the previous year had a dividend of HKD 0.09 per share[151] Research and Development - The company invested approximately RMB 60.5 million in research and development for the integrated human resources ecosystem in 2024[26] - Research and development expenses amounted to RMB 60.5 million, a 4.0% increase from RMB 58.2 million in 2023[58]

Core Viewpoint - The performance report of Renrui Talent Technology Holdings Limited for the fiscal year ending December 31, 2024, shows significant growth in revenue, gross profit, and adjusted net profit, indicating strong internal growth capabilities and a successful focus on digital technology talent services [1][3][4]. Financial Performance - Revenue for 2024 reached RMB 5.473 billion, a year-on-year increase of approximately 22.4% [3]. - Gross profit was approximately RMB 498.83 million, reflecting an 18.1% year-on-year increase [3]. - Adjusted net profit attributable to shareholders was about RMB 87.89 million, up 28.8% year-on-year [3]. Business Segments - The revenue growth was driven by various business segments, including general outsourcing services, digital technology and cloud services, digital operations and customer service, and recruitment, all of which experienced steady growth [1][4]. - Comprehensive flexible staffing services, including general outsourcing and digital technology services, generated approximately RMB 5.43 billion in revenue, a year-on-year increase of about 22.5% [4]. Internal Growth Drivers - The increase in internal staffing numbers was a key factor in the revenue growth, with the number of flexible staff rising from 35,908 at the end of 2023 to 41,868 by the end of 2024 [4]. - The internal growth capability is highlighted as a structural advantage, emphasizing the company's ability to create value and maintain long-term competitiveness [4][5]. Strategic Focus - Since initiating its "second entrepreneurship" strategy in mid-2021, the company has successfully developed its digital technology talent business, achieving over RMB 2 billion in revenue within three years [5]. - The internal growth portion of the workforce reached 58.3% by the end of 2024, underscoring the effectiveness of the company's strategic focus on internal capabilities [5].

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 5,473.3 million, an increase of 22.4% compared to RMB 4,472.2 million for the year ended December 31, 2023[3]. - Gross profit for the same period was RMB 498.8 million, reflecting an 18.1% increase from RMB 422.5 million in the previous year[3]. - Adjusted profit attributable to equity holders for the year was RMB 87.9 million, up 28.8% from RMB 68.2 million in the previous year[3]. - The company recorded a net loss of RMB 58.2 million for the year, compared to a profit of RMB 67.8 million in the previous year[3]. - The loss before tax for the year ended December 31, 2024, was approximately RMB 39.5 million, compared to a profit of approximately RMB 74.6 million for the year ended December 31, 2023[46]. - The net loss for the year ended December 31, 2024, was approximately RMB 58.2 million, compared to a profit of approximately RMB 67.8 million for the year ended December 31, 2023[47]. - The loss attributable to equity holders of the company for the year ended December 31, 2024, was approximately RMB 71.0 million, compared to a profit of approximately RMB 41.0 million for the year ended December 31, 2023[48]. - The overall gross margin for the year ended December 31, 2024, was approximately 9.1%, a decrease of about 0.3% compared to 9.4% for the year ended December 31, 2023[35]. - The company reported a net loss of RMB 70,970,000 for the year ended December 31, 2024, compared to a profit of RMB 41,045,000 in 2023[126]. Revenue Breakdown - The revenue breakdown by business segment for the year ended December 31, 2024, shows that Integrated Flexible Staffing contributed RMB 5,425.0 million (99.1% of total revenue), while Professional Recruitment and Other HR Solutions contributed RMB 48.2 million (0.9% of total revenue)[26]. - The general outsourcing business generated revenue of approximately RMB 3,010.1 million for the year ending December 31, 2024, representing an increase of approximately RMB 594.4 million or 24.6% compared to RMB 2,415.7 million for the year ending December 31, 2023[9]. - Revenue from Digital Technology and Cloud Services for the year ended December 31, 2024, was approximately RMB 2,144.5 million, reflecting an increase of about RMB 392.0 million or 22.4% compared to RMB 1,752.5 million for the previous year[31]. - The revenue from the General Services Outsourcing segment was RMB 3,010,094 for the fiscal year ending December 31, 2024, up from RMB 2,415,680 in 2023, reflecting a growth of approximately 24.6%[115]. - The revenue from Digital Technology and Cloud Services increased to RMB 2,144,475 in 2024, compared to RMB 1,752,526 in 2023, marking a growth of around 22.4%[115]. Employee Metrics - The number of IT personnel employed by the company increased to 11,834, a growth of approximately 25.0% from 9,469 in the previous year[6]. - The number of employees in the flexible staffing segment increased from 35,908 to 41,868, indicating a strong growth in workforce[7]. - The average adjusted profit per internal employee for the year ending December 31, 2024, was RMB 105.1 thousand, an increase from RMB 100.9 thousand in 2023[15]. - As of December 31, 2024, the company has a total of 44,058 employees, with 1,168 internal employees and 42,890 outsourced employees, of which 41,868 are flexible workers, representing 95.0% of the total workforce[16]. - The number of comprehensive flexible workers provided to clients reached approximately 26,319, with significant contributions from the technology and internet sectors, accounting for 68.9%[9]. Costs and Expenses - Total costs for the year ended December 31, 2024, amounted to approximately RMB 4,974.4 million, an increase of about RMB 924.7 million or 22.8% compared to RMB 4,049.7 million for the previous year[33]. - Sales and marketing expenses for the year ended December 31, 2024, were approximately RMB 182.0 million, an increase of about RMB 5.4 million or 3.0% from RMB 176.6 million in the previous year[36]. - Research and development expenses for the integrated human resources ecosystem amounted to approximately RMB 60.5 million in 2024[13]. - Research and development expenses increased to RMB 60,494 thousand from RMB 58,168 thousand, highlighting continued investment in innovation[93]. - Administrative expenses decreased to approximately RMB 155.2 million for the year ended December 31, 2024, down by about RMB 4.9 million or 3.1% from RMB 160.2 million in the previous year[38]. Impairments and Losses - A goodwill impairment provision of approximately RMB 130.9 million was recognized due to underperformance of a non-wholly owned subsidiary[6]. - The impairment loss on financial and contract assets increased to approximately RMB 12.2 million for the year ended December 31, 2024, up by about RMB 6.8 million or 125.9% from RMB 5.4 million in the previous year[41]. - The company experienced a fair value loss of RMB (130,945,000) due to goodwill impairment in 2024, with no such loss reported in 2023[117]. - The company reported a provision for impairment losses on trade receivables and contract assets of RMB 25,170,000 in 2024, compared to RMB 13,851,000 in 2023[135]. Cash Flow and Liquidity - Cash and cash equivalents increased to approximately RMB 397.7 million as of December 31, 2024, up by RMB 112.8 million or 39.6% from RMB 284.9 million in 2023[72]. - Net cash used in operating activities for the year ended December 31, 2024, was approximately RMB 106.0 million, a decrease of RMB 45.9 million or 30.2% compared to RMB 151.9 million in 2023[75]. - Net cash inflow from financing activities increased significantly to approximately RMB 190.1 million in 2024, compared to RMB 43.2 million in 2023, primarily due to increased bank borrowings[77]. - The company raised RMB 737,519,000 through bank borrowings in 2024, significantly higher than RMB 340,801,000 in 2023, reflecting increased financing activities[101]. Strategic Initiatives - The company plans to focus on the digital transformation of enterprises, capitalizing on the increasing demand for IT talent[5]. - The company plans to establish subsidiaries in over 20 countries and regions by 2025, focusing on markets such as Hong Kong, Vietnam, Malaysia, Thailand, and Indonesia[20]. - The company is developing a comprehensive human resources ecosystem, continuously improving functionalities and data dashboards to meet business development needs[24]. - The company aims to expand its industry scope through acquisitions and organic growth over the next three years, targeting sectors with increasing demand for flexible staffing services[90]. - The company has earmarked RMB 218.3 million for enhancing its integrated human resources ecosystem and capabilities in AI and data mining by the end of 2024[90]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing financial information and internal controls[149]. - The annual performance for the year ending December 31, 2024, has been reviewed by the audit committee[150]. - The external auditor, PwC, confirmed that the figures in the consolidated financial statements are consistent with the audited financial statements for the year ending December 31, 2024[151]. - The company has adopted the standard code for securities transactions and confirmed compliance by all directors for the year ending December 31, 2024[146]. - The board believes that having the same person serve as both chairman and CEO enhances internal leadership consistency and communication efficiency[145].

Summary of Conference Call Company Overview - The company, Renrui, was established in 2010 and pioneered a full-risk, full-process human resource outsourcing model in China [2] - Initially focused on general position outsourcing, primarily serving clients in the new economy sector, including customer service and related functional roles [2][3] - Since 2020, the company has expanded into digital technology talent outsourcing, responding to the growing demand for digital skills across various industries, including AI and smart manufacturing [3][4] Business Segments - The company operates in four main service areas: 1. General position outsourcing 2. Digital technology talent outsourcing 3. Business Process Outsourcing (BPO) 4. Recruitment services [5] - As of Q3, the company has over 24,000 employees in general outsourcing and over 10,000 in digital technology talent outsourcing, with the latter contributing over 50% to the overall gross profit [3][5] Financial Performance - For the first half of the year, the company reported revenues of 2.48 billion, a 20% year-over-year increase, with gross profit rising from 810 million to 930 million [5] - Digital technology services saw a 28.8% increase in revenue, reaching 950 million [6] - General outsourcing grew by 15%, while BPO and recruitment services also showed growth, albeit at a lower proportion [6] Market Trends and Outlook - The company has observed a trend where clients are increasingly cautious about in-house hiring and are shifting towards outsourcing, especially in high-value positions [6][7] - The demand for flexible labor solutions continues to grow, particularly among large clients in technical and white-collar roles [7] - The company remains optimistic about its performance, expecting to maintain a growth rate of around 20% in line with industry averages [22] Competitive Advantages - Key competitive advantages include: 1. Strong recruitment capabilities, which are critical in the HR outsourcing industry [17][20] 2. Efficient service delivery across various regions and business lines [17] 3. Compliance with increasing regulatory requirements, which enhances client trust [20] 4. Focus on high-value services, which is expected to drive gross margin improvements [20][21] Client Base and Growth Drivers - The growth is primarily driven by: 1. Demand for digital and technical talent, particularly from high-tech and smart manufacturing sectors [14][15] 2. Increased engagement with state-owned enterprises and large clients in the technology sector [15] 3. Expansion into overseas markets, which is seen as a significant growth opportunity [23] Future Guidance - While no specific guidance was provided, the company aims to continue its trajectory of approximately 20% growth, focusing on high-value services and international expansion [22][23] - The company is also considering shareholder returns through dividends, contingent on sustained profitability [24] Additional Insights - The company is leveraging digital tools to enhance operational efficiency and transparency, which is crucial for scaling operations [29][30] - The average tenure of outsourced employees is around one year, indicating a mix of short-term and long-term contracts [32] - Pricing strategies are based on service complexity rather than employee tenure, ensuring competitive service rates [33] This summary encapsulates the key points discussed during the conference call, highlighting the company's operational strategies, financial performance, market trends, and future outlook.

l 6 B පිළි दिन 告 રિમર Renrui Human Resources Technology Holdings Limited 人瑞人才科技控股有限公司 (於開曼群島註冊成立之有限公司) 股份代號：6919 1 公司資料 2 財務摘要 4 管理層討論與分析 6 其他資料 33 釋義 38 簡明綜合收益表 41 簡明綜合全面收益表 42 簡明綜合資產負債表 43 簡明綜合權益變動表 45 簡明綜合現金流量表 47 簡明綜合中期財務資料附註 48 (ମ୍ପ୍ରିଙ୍ 目錄 公司資料 董事會 執行董事 張建國先生（主席兼行政總裁） 張峰先生 張健梅女士 非執行董事 陳瑞先生 獨立非執行董事 提名委員會 張建國先生（主席） 陳美寳女士 沈浩先生 投資及合規委員會 陳瑞先生（主席） 張建國先生 梁銘樞先生 獨立核數師 | --- | --- | |-----------------------------------------|-----------------------------------------| | | | | 陳美寳女士 | | | 沈浩先生 | 羅兵咸永道會計師事務所 | | 梁 ...

Financial Performance - Revenue for the six months ended June 30, 2024, increased by 20.0% to approximately RMB 2,482.3 million compared to RMB 2,068.3 million in the same period of 2023[1] - Gross profit rose by 37.6% to RMB 230.4 million, with a gross margin of approximately 9.3%[1] - Profit attributable to equity holders increased by 117.3% to approximately RMB 21.9 million, compared to RMB 10.1 million in the same period of 2023[1] - The adjusted profit attributable to equity holders was RMB 31.2 million, up 38.8% from RMB 22.4 million in the same period of 2023[1] - The company's total revenue for the six months ended June 30, 2024, was approximately RMB 2,482.3 million, representing a year-on-year increase of about 20.0% compared to RMB 2,068.3 million for the same period in 2023[8] - The integrated flexible staffing service revenue reached approximately RMB 2,456.4 million, an increase of about 19.8% from RMB 2,051.2 million for the same period last year, driven by strong demand for digital and IT talent[9] - Revenue from the digital talent business reached approximately RMB 948.2 million, a growth of 28.8% year-on-year, contributing 38.2% to total revenue[5] - General service outsourcing revenue was approximately RMB 1,376.0 million, reflecting a 15.3% increase compared to the same period in 2023[5] - The overall gross profit margin for the first half of 2024 was approximately 9.3%, up from 8.1% in the same period of 2023, driven by higher contributions from digital technology and cloud services[14] - The company reported a net profit of RMB 20,393 thousand for the six months ended June 30, 2024, compared to RMB 18,851 thousand in the same period of 2023, indicating a growth of approximately 8%[69] Employee Metrics - The number of flexible employees increased from approximately 33,864 as of June 30, 2023, to approximately 38,300 as of June 30, 2024[4] - The number of integrated flexible staffing employees increased from 33,864 as of June 30, 2023, to approximately 38,300 as of June 30, 2024, reflecting a growth rate of about 13.1%[9] - The employee turnover rate for integrated flexible staffing services decreased to approximately 6.7% in the first half of 2024, down from 7.4% in 2023[11] - The number of digital talent employees reached approximately 10,230, an increase of about 2,400 from 7,830 in 2023[10] Strategic Focus and Market Expansion - The company is focusing on strategic clients and expanding into overseas markets through mergers, joint ventures, and establishing new entities[4] - The company is focusing on digital transformation and has initiated a group-level digitalization strategy to enhance operational efficiency and decision-making based on data[6] - The company plans to expand its international business strategy to meet the growing overseas demand for human resource services from existing major clients[6] - The company aims to enhance operational efficiency and reduce costs through continuous R&D innovation and digital business management[4] - The company continues to explore new strategies for market expansion and technological development, particularly in digital services and cloud solutions, to enhance its competitive position in the industry[66] Cost Management and Expenses - The company has implemented cost control measures, including strategic resource allocation and internal expense management systems, to promote sustainable development[6] - Administrative expenses decreased by approximately 4.3% to RMB 71.7 million in the first half of 2024, down from RMB 75.0 million in 2023, due to cost control measures[18] - Sales and marketing expenses rose to approximately RMB 98.8 million, a 12.0% increase from RMB 88.3 million in the same period of 2023, while the percentage of sales and marketing expenses to revenue decreased from 4.3% to 4.0%[16] Financial Position and Cash Flow - Current assets as of June 30, 2024, totaled approximately RMB 1,913.3 million, an increase from RMB 1,753.8 million as of December 31, 2023[30] - The company's borrowings increased by approximately 75.6% to RMB 324.0 million as of June 30, 2024, compared to RMB 184.5 million on December 31, 2023, driven by the expansion of digital technology and cloud services[33] - The company's cash and cash equivalents decreased to approximately RMB 255.2 million as of June 30, 2024, down from RMB 284.9 million on December 31, 2023, a reduction of approximately RMB 29.7 million[39] - Operating cash outflow for the six months ended June 30, 2024, was approximately RMB 171.0 million, a decrease of RMB 15.0 million compared to RMB 186.0 million for the same period in 2023[41] - The net cash inflow from financing activities for the six months ended June 30, 2024, was approximately RMB 119.7 million, an increase of RMB 95.7 million compared to RMB 24.0 million for the same period in 2023[43] Shareholder Returns and Governance - The final dividend of HKD 0.09 per share for the year ended December 31, 2023, was approved, amounting to approximately HKD 14,103,000 (equivalent to RMB 12,881,000), to be paid in July 2024[87] - The company has maintained compliance with the corporate governance code during the six months ended June 30, 2024, except for a deviation regarding the roles of the Chairman and CEO[88] - The company granted options to 24 participants under its post-IPO share option scheme on March 28, 2024, allowing the purchase of up to 3,750,000 shares at an exercise price of HKD 3.79 per share[91] Miscellaneous - The company recorded a foreign exchange loss of approximately RMB 0.2 million for the six months ended June 30, 2024, due to holding cash and cash equivalents denominated in RMB[46] - There have been no significant events affecting the company since June 30, 2024[50] - The company had no significant acquisitions or disposals to disclose as of June 30, 2024[48] - The company did not recognize any impairment provision for goodwill as of June 30, 2024, indicating stable asset valuations[81]

Financial Performance - Total revenue for 2023 reached RMB 4,472,172 thousand, a 23% increase from RMB 3,638,203 thousand in 2022[7]. - Gross profit for 2023 was RMB 422,498 thousand, resulting in a gross margin of 9.4%, up from 5.1% in 2022[7][9]. - Operating profit increased to RMB 82,793 thousand, compared to RMB 11,445 thousand in the previous year[7]. - The net profit attributable to equity holders was RMB 41,045 thousand, a significant recovery from a loss of RMB 7,303 thousand in 2022[7]. - Basic earnings per share for 2023 was RMB 0.27, compared to a loss of RMB 0.05 per share in 2022[7]. - The adjusted net profit margin for 2023 was 1.5%, compared to 0.2% in 2022[9]. - The company reported a final dividend of HKD 0.09 per share for the year ended December 31, 2023, totaling approximately HKD 14.1 million, compared to no dividend for the previous year[142]. - The net profit for the year ended December 31, 2023, was approximately RMB 67.8 million, an increase of about 888.7% from RMB 6.9 million in 2022[58]. Revenue Breakdown - Revenue from digital technology and cloud services surged to approximately RMB 1,752.5 million, marking a remarkable growth of 225.2% compared to 2022[18]. - General outsourcing business revenue for 2023 was approximately RMB 2,415.7 million, a decrease of 12.9% compared to 2022, but the revenue in the second half of 2023 was RMB 1,221.9 million, an increase of 2.4% from the first half of 2023[23]. - The revenue from integrated flexible staffing services was approximately RMB 4,427.5 million, representing 99.0% of total revenue, up from RMB 3,574.0 million (98.2%) in 2022[35]. - Digital technology and cloud services revenue surged by approximately 225.2% to RMB 1,752.5 million, accounting for 39.6% of integrated flexible staffing services revenue, up from 15.1% in 2022[36]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 2,291,357 thousand, an increase from RMB 2,127,887 thousand in 2022[8]. - Total equity rose to RMB 1,504,528 thousand, compared to RMB 1,449,594 thousand in the previous year[8]. - Current liabilities increased to RMB 768,215 thousand, up from RMB 641,124 thousand in 2022[8]. - As of December 31, 2023, the net current assets amounted to approximately RMB 985.6 million, representing an increase of about 15.3% from RMB 855.1 million as of December 31, 2022[64]. - Borrowings increased by approximately 93.8% to RMB 184.5 million as of December 31, 2023, from RMB 95.2 million as of December 31, 2022, primarily to support the expansion of digital technology and cloud services[74]. Employee and Talent Management - The number of flexible workforce employees increased from approximately 30,800 as of December 31, 2022, to about 36,000 by December 31, 2023, with digital talent rising from about 6,300 to approximately 9,500[18]. - The company provided approximately 23,000 employees for general outsourcing services, with technology and internet, finance, and smart manufacturing and automotive sectors accounting for 62%, 24%, and 5% respectively[23]. - The employee turnover rate for integrated flexible staffing services decreased to approximately 8.3% in 2023 from 9.8% in 2022[37]. Strategic Focus and Growth - The company aims to lead in digital technology and talent solutions, focusing on driving digital transformation for businesses[11]. - The company is focusing on a "dual-engine" growth model, emphasizing high-growth digital technology and cloud services alongside stable growth in general outsourcing business[24]. - The company aims to strengthen its core competitiveness in the digital talent market and capture significant market opportunities in 2024[27]. - The company is investing in digital transformation, including the development of the Ruizhi system for integrated management of digital talent business and an AR management system for financial management and risk control[24]. Market and Industry Position - The company has expanded its client base across various industries, including retail, new energy, logistics, and automotive, while also targeting higher-value positions in finance, law, human resources, and administration[23]. - The company is prepared to leverage opportunities arising from China's industrial upgrade and digital transformation, maintaining flexibility in a changing market environment[27]. - The company faces significant risks, including reliance on a few major clients for revenue and the potential impact of economic fluctuations on client demand[134]. Corporate Governance and Management - The management team includes experienced professionals with advanced degrees in business administration and human resource management[111][115]. - The company has received confirmations of independence from its independent non-executive directors[160]. - The company is subject to a rotation policy where one-third of the directors must retire at each annual general meeting[155]. Social Responsibility and Sustainability - The company is committed to fulfilling its corporate social responsibility by helping talents enhance their skills and promoting sustainable development in society[15]. - The company has committed to social responsibility and sustainable development, focusing on employee welfare and environmental protection[136]. Future Outlook - The company aims to adapt to rapid changes in the human resources industry to mitigate competitive pressures and retain clients[134]. - The company is actively involved in the development of new strategies and products in the human resources sector[115].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 4,472,172 thousand, representing a 22.9% increase from RMB 3,638,203 thousand in 2022[2] - Adjusted profit for the year was RMB 105,125 thousand, a significant increase of 338.6% compared to RMB 23,968 thousand in 2022[2] - Profit attributable to equity holders of the company was RMB 68,249 thousand, up 1,095.0% from RMB 5,711 thousand in the previous year[2] - Gross profit for the year reached RMB 422,498 thousand, reflecting a 128.7% increase from RMB 184,700 thousand in 2022[2] - Operating profit surged to RMB 82,793 thousand, marking a 623.4% increase from RMB 11,445 thousand in the prior year[2] - The company reported a net loss of RMB 7,409 thousand from other losses, an improvement from a loss of RMB 13,151 thousand in 2022[9] - The company reported a profit attributable to equity holders of RMB 41,045,000 for the year ended December 31, 2023, compared to a loss of RMB 7,303,000 in 2022, marking a significant turnaround[20] - Basic earnings per share for 2023 was RMB 0.27, compared to a loss per share of RMB 0.05 in 2022[20] - Diluted earnings per share for 2023 was RMB 0.26, reflecting the impact of stock options granted to employees, while the average market price of common shares was below the exercise price, resulting in anti-dilutive effects[24] - The group’s net profit for the year ended December 31, 2023, was RMB 67,786,000, a significant increase from RMB 6,856,000 in 2022, representing a growth of approximately 887%[93] - Total comprehensive income for the year was RMB 70,425,000, compared to RMB 31,049,000 in the previous year, indicating an increase of about 126%[93] Revenue Breakdown - The segment revenue for flexible staffing was RMB 3,574,036 thousand, while the professional recruitment and other HR solutions segment generated RMB 64,167 thousand[62] - Revenue from digital technology and cloud services reached RMB 1,752.5 million, showing explosive growth of 225.2% year-on-year[107] - Revenue from integrated flexible staffing services was approximately RMB 4,427.5 million, representing a growth of about 23.9% from RMB 3,574.0 million in the previous year[119] - Revenue from the top five clients for the year was approximately RMB 1,596.5 million, accounting for about 35.7% of total annual revenue, with the largest client contributing approximately 10.8%[118] - The demand for general outsourcing services showed a recovery trend in the second half of 2023, with revenue of approximately RMB 2,415.7 million for the year, down 12.9% from 2022, but increasing by 2.4% in the second half compared to the first half of 2023[111] Assets and Liabilities - The total assets of the company as of December 31, 2023, amounted to RMB 2,291,357 thousand, compared to RMB 2,127,887 thousand in 2022[95] - The total liabilities as of December 31, 2023, amounted to RMB 786,829 thousand, an increase from RMB 678,293 thousand in the previous year[69] - The total equity as of December 31, 2023, was RMB 1,504,528 thousand, compared to RMB 1,449,594 thousand in the previous year[69] - The company’s accumulated losses stood at RMB 795,348 thousand as of December 31, 2023[71] - The company’s trade and other payables rose to approximately RMB 541.0 million as of December 31, 2023, an increase of RMB 43.0 million from RMB 498.0 million in 2022[164] Cash Flow and Investments - The company reported a net cash outflow from operating activities of RMB 151,887 thousand for the year ended December 31, 2023, compared to a net inflow of RMB 118,905 thousand in 2022[73] - The company incurred a loss of RMB 141,606 thousand from operating activities, including income tax paid of RMB 10,281 thousand[73] - The company experienced a net cash outflow from investing activities of RMB 401,742 thousand in 2022, while the outflow for 2023 was significantly reduced[73] - The financing activities generated a net cash inflow of RMB 43,222 thousand in 2023, compared to a net outflow of RMB 91,336 thousand in 2022[73] Employee and Operational Metrics - The number of employees in the flexible staffing segment increased from approximately 30,800 as of December 31, 2022, to about 36,000 as of December 31, 2023[107] - The number of employees as of December 31, 2023, was 36,915, including 1,007 internal employees and 35,908 flexible staffing employees[138] - Employee turnover rate for 2023 decreased to approximately 8.3%, down from 9.8% in 2022[122] - The average monthly labor cost for employees providing flexible staffing services increased from approximately RMB 9,067 per person in 2022 to RMB 11,000 in 2023[131] Future Outlook and Strategy - The company plans to hold its annual general meeting on June 12, 2024, to discuss future strategies and performance[85] - The company is focused on expanding its digital talent business and enhancing its core competitiveness in the digital talent market to capture significant market opportunities[115] - The company is committed to long-term sustainable growth and creating value for shareholders, supported by a robust digital transformation strategy[114] - The company has identified a growing demand for flexible staffing services, particularly in the financial, information technology, and new retail sectors[200] Tax and Regulatory Matters - The effective corporate income tax rate for certain subsidiaries in western China was 15%, benefiting from preferential tax policies[14] - The company has established a favorable tax rate of 20% for certain subsidiaries under the small and micro enterprise tax incentive policy, applicable to profits not exceeding RMB 1,000,000[16] - The company confirmed that it will not distribute retained earnings from its Chinese subsidiaries as of December 31, 2023, which may impact future cash flows[17] Miscellaneous - The company did not purchase, sell, or redeem any of its listed securities during the fiscal year ending December 31, 2023[52] - The company has not adopted new accounting standards that are expected to have a significant impact on its financial reporting for the foreseeable future[56] - There were no significant off-balance sheet commitments or arrangements as of December 31, 2023[187] - The company has not entered into any major hedging arrangements to manage foreign exchange risk but actively monitors and supervises its foreign exchange exposure[192]

Revenue Growth - In the first half of 2023, the revenue from digital technology and cloud services reached RMB 736.1 million, a significant increase of 560.5% compared to the same period last year[5]. - The organic revenue growth, excluding acquisitions, rose from RMB 111.4 million in the first half of 2022 to RMB 286.6 million in the first half of 2023, representing a growth of 157.2%[5]. - For the six months ended June 30, 2023, the total revenue of the group was approximately RMB 2,068.3 million, an increase of about 19.3% compared to RMB 1,733.9 million for the same period in 2022[20]. - The revenue from the integrated flexible staffing services segment was approximately RMB 2,051.2 million, representing a growth of about 21.0% from RMB 1,695.2 million in the same period last year[22]. - The revenue from professional recruitment and other HR solutions was approximately RMB 17.1 million, down from RMB 38.7 million in the same period last year, due to cautious hiring by clients in an uncertain economic environment[25]. - Revenue from general outsourcing services was approximately RMB 1,193.8 million for the six months ended June 30, 2023, a decrease of 18.3% from RMB 1,461.4 million in the same period last year, attributed to macroeconomic conditions and client restructuring[39]. - Revenue from high-value positions, including finance and legal roles, was approximately RMB 129.4 million for the six months ended June 30, 2023, compared to approximately RMB 42.9 million in the same period last year, indicating significant growth in these areas[39]. Client Acquisition and Market Expansion - The company signed over 200 new clients in the first half of 2023, achieving significant breakthroughs in the automotive, telecommunications, and financial sectors[5]. - The company added over 200 new clients in the digital technology and cloud services sector during the first half of 2023, achieving strong sales performance among both new and existing clients[35]. - The company is optimistic about its long-term growth potential and aims to expand its market share in high-growth industries with strong demand for high-value digital talent solutions[12]. - The integration of the acquired Shanghai Sire is expected to enhance the company's ability to meet diverse client service needs and increase market share[5]. Employee Metrics - The average revenue per employee in the first half of 2023 was approximately RMB 1.93 million, higher than the industry average of RMB 1.50 million[9]. - The turnover rate for flexible workforce employees was approximately 7.6%, significantly lower than the industry average turnover rate of 15%[9]. - The number of integrated flexible staffing employees increased from 28,873 as of June 30, 2022, to 33,864 as of June 30, 2023, reflecting a growth rate of approximately 17.3%[22]. - The number of digital and IT talent reached approximately 7,830 as of June 30, 2023, an increase of about 6,616 from approximately 1,214 as of June 30, 2022[38]. - The company reported a total of 30,165 employees, including 29,333 flexible workers, as of June 30, 2023[110]. Financial Performance - The overall gross profit margin for the six months ended June 30, 2023, was approximately 8.1%, up from 3.8% for the same period in 2022, primarily due to significant contributions from higher-margin digital technology and cloud services[29]. - The gross profit margin for integrated flexible staffing services was approximately 7.9% for the six months ended June 30, 2023, compared to 3.1% in the same period last year, driven by an increase in high-value digital and IT positions[30]. - The company reported a profit of RMB 18,851,000 for the six months ended June 30, 2023, compared to a loss of RMB 24,615,000 in the same period of 2022, marking a significant turnaround[149]. - Adjusted profit for equity holders was RMB 22,439,000, compared to a loss of RMB 22,083,000 in the previous year, indicating a recovery in profitability[149]. - The company recorded a pre-tax profit of approximately RMB 20.1 million for the six months ended June 30, 2023, compared to a pre-tax loss of approximately RMB 28.6 million for the same period in 2022[147]. Expenses and Investments - Sales and marketing expenses for the six months ended June 30, 2023, were approximately RMB 883 million, an increase of about 261.1% from approximately RMB 244 million for the same period in 2022, reflecting increased investment in sales efforts and marketing activities[35]. - Research and development expenses for the first half of 2023 were approximately RMB 26.2 million, up about 97.8% from RMB 13.3 million in the same period of 2022, representing 1.3% of revenue[80]. - Administrative expenses for the first half of 2023 were approximately RMB 75.0 million, an increase of about 30.1% from RMB 57.6 million in the same period of 2022[81]. Stock Options and Equity - As of June 30, 2023, a total of 17,674,100 stock options under the pre-IPO stock option plan remain unexercised, representing approximately 11.3% of the company's issued share capital[111]. - The company has a structured stock reward plan that aligns with its performance goals and employee roles[121]. - The company has not exercised, canceled, or forfeited any stock options under the pre-IPO stock option plan during the six months ended June 30, 2023[112]. - The company’s stock options granted on May 2, 2023, included 300,000 options for two executive directors, with an exercise price of HKD 4.28[135]. Financial Position and Assets - The total assets as of June 30, 2023, amounted to RMB 2,152,862 thousand, an increase from RMB 2,127,887 thousand as of December 31, 2022[99]. - The total equity increased to RMB 1,477,847 thousand as of June 30, 2023, compared to RMB 1,449,594 thousand at the end of 2022[99]. - The total current assets increased to RMB 1,558,862,000 as of June 30, 2023, from RMB 1,496,219,000 as of December 31, 2022, reflecting a growth of approximately 4.2%[151]. - The net current assets rose to RMB 909,472,000, up from RMB 855,095,000, representing an increase of about 6.4%[151]. Compliance and Risk Management - The company has maintained compliance with all covenants related to its bank financing arrangements during the first half of 2023[192]. - The company emphasizes the importance of digitalizing its systems and processes to improve productivity and efficiency across its operations[95].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內 容而引致的任何損失承擔任何責任。 Renrui Human Resources Technology Holdings Limited 人 瑞 人 才 科 技 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：6919） 截 至 2023 年 6 月 30 日 止 6 個 月 之 中 期 業 績 公 告 中期業績摘要 截至6月30日止6個月 2023年 2022年 變動 業績 人民幣千元 人民幣千元 （未經審核）（未經審核） 收入 2,068,304 1,733,889 19.3% 經營溢利╱（虧損） 23,402 (29,619) 不適用 期內溢利╱（虧損） 18,851 (24,615) 不適用 本公司權益持有人應佔溢利╱（虧損） 10,058 (25,425) 不適用 經營活動所用現金淨額 (186,035) (19,749) 842.0% 非香港財務報告準則計量 （未經審核）（未經審核） 經調整溢利╱（虧損） ...