Shanghai-based ManpowerGroup Greater China (2180:HKG), a workforce solutions provider in China, announced today its annual financial results for the full year ended 31 December 2022. Revenue increased by 15.6% over the year to RMB 4.58 billion (USD 666.7 million).

Revenue growth was due to an increase in the group's largest business segment, flexible employment, which saw its revenue increase by approximately 17.8% year-on-year to approximately RMB 4.34 billion (USD 631.2 million).

The group's profit for the year attributable to owners of the Company stood at RMB 118.6 million (USD 17.2 million), down 14.8% over the year.

The decrease in profit was mainly due to the company’s accelerated geographical expansion and the cost increase brought about by the optimisation of product structure despite the outbreak of the pandemic and the ensuing lockdowns.

After adjusting one-time expenses such as equity incentive expenses, the adjusted net profit from continuing operations attributable to shareholders was approximately RMB 131.8 million (USD 19.1 million), a year-on-year decrease of approximately 9.6%. 

The group's revenue is mainly derived from human resource solution services, including flexible staffing and recruitment solutions such as talent hunting and recruitment process outsourcing; and other human resource services, including manpower resource consulting services, training and development, career transition, payroll services and government solutions.

Revenue growth in Flexible Employment was mainly due to the increase in the number of contract employees who found jobs and the increase in average salary during the reporting period.

The decline in Employment/Recruitment was mainly due to a decrease in the number of successfully introduced jobs during the reporting period. The HR Services revenue decline was attributable to the decrease in revenue generated from human resource consulting services and government solution services. These decreases were all affected by the decline in demand for recruitment and consulting services as a result of the outbreak of Covid-19 in China.

Revenue by geography

Cui Zhihui, executive director and CEO of the group, said, "We are full of confidence in the prospect of the human resources market. The group is in a leading position in the human resources industry in the Greater China region. With diversified business lines, excellent customer development capabilities and excellent, we believe that we can fully grasp the strong growth potential of the human resources service market in the future.”

ManpowerGroup Greater China Ltd shares closed at HKD 6.83 (USD 0.87), no change on the day and 7.56% above its 52-week low of HKD 6.35 (USD 0.81), set on 17 January 2023. The company has a market cap of HKD 1.42 billion (USD 180.9 million).