Renrui Human Resources Technology Holdings Limited (6919.HK) Announces 2019 Annual Results.

HONG KONG: Renrui Human Resources Technology Holdings Limited ("Renrui" or "the Company" and its subsidiaries (collectively, the "Group"), stock code: 6919.HK), the largest flexible staffing services provider in China, today announced its annual results for the year ended 31 December 2019 (the "year").

Summary of Key Financial Performances for the Full Year 2019

Total revenue of the Group amounted to approximately RMB2,287.6 million, representing a year-on-year ("yoy") increase of approximately RMB671.7 million or 41.6%

Gross profit reached approximately RMB 240.9 million, a strong increase of 55.5% yoy. Gross profit margin was 10.5%, up by 0.9 percentage points yoy

Adjusted net profit* reached approximately RMB 134.3million, soared by approximately 98.3% yoy

Adjusted net margin* increased by 1.7 percentage points from 4.2% in 2018 to 5.9% in 2019

As of 31 December 2019, the cash and cash equivalents were approximately RMB1,029.5 million, representing an increase of RMB989.2 million yoy

Net cash generated from operating activities was approximately RMB150.5 million, representing an increase of approximately 260.6% as compared to approximately RMB41.7 million in 2018.

Revenue Breakdown by Business Segments

During the year, the Group's revenue generated from flexible staffing, professional recruitment and other human resources solutions, accounting for 94%, 2.8% and 3.2% of total revenue respectively

Revenue from flexible staffing was approximately RMB 2,151.0 million, up by 42.0% yoy. The number of flexible staffing employees increased by 29.0% from 19,464 as at 31 December 2018 to 25,118 as at 31 December 2019

Revenue generated from professional recruitment amounted to approximately RMB63.5 million, representing a slight decrease of 7.1% yoy. Among which, recruitment revenue dropped 7.7% yoy to RMB57.6 million.

Revenue generated from business process outsourcing ("BPO") increased by 125.4% yoy to approximately RMB51.8 million

Revenue generated from corporate training increased by 67.5% yoy to approximately RMB1.6 million

Revenue generated from labor dispatch decreased 18.2% yoy to approximately RMB 7.1 million

Business Highlights for the Year 2019

As at 31 December 2019, ranked first among all flexible staffing services providers in China in terms of the number of flexible staffing employees hired, with a market share of approximately 1.7%. Also, the largest flexible staffing services provider in China in terms of annual flexible staffing...