[Zhenzhuo HK Market Trends] Renrui Talent (06919.HK) core business shows steady growth, digital transformation yields significant results

$RENRUI HR(06919.HK) held its 2025 results briefing. For the year ended December 31, 2025, the Group achieved revenue of approximately RMB 5.561 billion, representing a year-on-year increase of 22.8%; net profit attributable to ordinary shareholders reached RMB 87.6 million, while adjusted net profit attributable to shareholders was approximately RMB 106 million, a 15.4% increase from the previous year, achieving a fundamental turnaround from loss to profit; operating cash flow, excluding the impact from the sale of a subsidiary, recorded a net inflow of RMB 94 million, indicating a significant improvement in financial health.

Renrui Human Resources is a leading human resources service provider in China, focusing on offering comprehensive flexible staffing, professional recruitment, and HR solutions to enterprises across various industries. Among its businesses, general service outsourcing serves as its foundation, accounting for 63.5% of total revenue in 2025; digital technology and cloud services, as the primary profit driver, saw their revenue share rise to 29.8%, contributing 46.1% to gross profit.

Core Business Shows Steady Growth, Digital Transformation Yields Significant Results

In the digital technology and cloud services segment, the Group achieved revenue of RMB 1.659 billion in 2025, a year-on-year increase of 38.3%, with gross profit of RMB 188 million, up 34.3% year-on-year. The number of employees on assignment in this segment reached 9,071, a 26.9% increase year-on-year, with a target to reach 11,000 in the future.

In terms of industry distribution, the telecommunications sector accounted for 26%, and the automotive manufacturing sector for 16%, demonstrating continuously enhanced resilience against economic cycles.

For the general service outsourcing business, the Group achieved revenue of RMB 3.531 billion in 2025, a 17.3% year-on-year increase, with 27,566 employees on assignment. Facing a diverging job market, the Group proactively adjusted its job structure: demand for traditional general positions declined, while demand for middle/back-office operations, human resources, and skilled workers remained strong. The number of flexible staffing positions in middle/back-office operations, HR, and administration reached 6,113, and demand for skilled workers surged due to the development of the smart manufacturing industry. Throughout the year, 19,101 people were recruited, with business coverage spanning technology/internet, finance, retail, and other sectors.

International Business Experiences Explosive Growth, Globalization Accelerates

Meanwhile, the Group is actively expanding into overseas markets, with international business becoming a new growth engine. In 2025, international business revenue reached RMB 77 million, a year-on-year increase of 291.8%, with gross profit of RMB 20 million, up 152.0% year-on-year, and a gross margin of approximately 26%.

Regarding its global footprint, the Group has established subsidiaries in 24 countries and regions and formed localized service teams in 7 countries and regions.

When discussing the company's future growth potential, the Group's management stated: "International business can be considered the company's 'second growth curve.' With the wave of Chinese companies going global, overseas demand for human resources services continues to grow, and the Group is poised to capture more opportunities abroad."

Financial Quality Continues to Improve, Shareholder Returns Steadily Rise

As of the end of 2025, the Group's total assets amounted to RMB 2.294 billion, with cash and cash equivalents of RMB 636 million, a 59.8% year-on-year increase; total liabilities were RMB 1.006 billion, with bank borrowings reduced to RMB 292 million, a decrease of 35.8%; trade receivables days outstanding decreased from 96 days to 79 days, indicating simultaneous improvement in asset quality and operational efficiency.

Regarding shareholder returns, the Group's dividend policy is to distribute dividends twice a year. In 2025, the dividend per share was HKD 0.19 (interim HKD 0.09 + final HKD 0.10), representing a payout ratio of 30.0% of the full-year net profit attributable to ordinary shareholders.

Enhanced Workforce Efficiency and Platform Empowerment, Advancing Towards a World-Class HR Company

In terms of operational efficiency, the net profit per internal employee increased by 14.2% year-on-year. The Wanma Youcai platform, a core recruitment platform in which the Group holds a stake, has 1.93 million registered job seekers and a high-end digital talent pool of 3.88 million. The C-end enables resume recommendations across the entire network, while the B-end provides AI-powered precise matching and regional talent pool management, effectively improving the efficiency of the entire recruitment process.

Looking ahead, the Group will continue to deepen its international business, improve its global customer service center network, focus on Chinese companies expanding overseas while simultaneously exploring services for large local enterprises in mature markets. Potential acquisitions will focus on targets in mature markets such as Europe, the US, and Japan. Domestically, the focus will be on expanding the scale of IT position recruitment, continuously extending integrated "technical consulting + technology + outsourcing" services for state-owned and central enterprises, and launching integrated "consulting + technology + outsourcing" solutions to achieve a transformation from cost-based services to value-based solutions. As Chinese companies go global, the Group is committed to building international service capabilities and advancing towards becoming a world-class human resources company.