Renrui Human Resources Technology (6919: HKG), a China-based flexible staffing services provider announced its results for the year ended 31 December 2020. Total revenue of the group amounted to approximately RMB 2.83 billion (USD 430.9 million), a year-on-year increase of 23.7%.

The group reported growth in all of its segments.

Gross profit was up 12.4% in 2020 when compared to 2019.

Renrui is principally engaged in the provision of flexible staffing services, professional recruitment services, business process outsourcing services and other human resources solutions services in the People’s Republic of China. Other HR includes corporate training and labour dispatch.

The company completed its initial public offering and its shares were listed on the Main Board of the Hong Kong stock exchange on 13 December 2019.

Revenue by segment

The number of flexible staffing employees increased from 25,118 as of 31 December 2019 to 35,762 as of 31 December 2020.

The group’s Professional Recruitment segment mainly benefited from the implementation of economic recovery policies by the Chinese government, leading to restoration in recruitment demand of new economy enterprises with rapid development in the second half of the year.

The group said the significant growth in BPO services was mainly attributable to ”our long-term clients who engaged us for the provision of flexible staffing services, especially those in the new economy and internet sectors”. They added that“approximately 64.6% of our BPO clients have engaged us for our flexible staffing services and HR services such as professional recruitment and training services”.

During the year, the group said, “Our international business expanded from India to Hong Kong, Vietnam and other countries and regions in 2020. In 2020, we achieved total revenue of approximately RMB 93.7 million (USD 14.2 million) outside of mainland China.”

Kenneth Ke, Chief Investment Officer of Renrui Human Resource Technology Holdings Limited, added, "The recurring income model of Renrui HR has achieved notable results, which increase the accuracy of financial forecast. Consider that China's flexible staffing market remains large and untapped, the group will leverage its market leading position and technological first-mover advantage to serve unicorn companies in developing their businesses.”

Looking forward, the group is confident in its business prospects, competitive advantages and growth potential,” Ke said.

Shares in Renrui closed at HKD 26.60 (USD 3.42), down 0.75% on the day and 34.34% above the 52 week low of HKD 19.80 (USD 2.55) set on 23 September 2020. The company has a market cap of HKD 4.19 billion (USD 539.00 billion).