Renrui Human Resources Technology (6919: HKG), a China-based flexible staffing services provider announced its results on 27 March for the year ended 31 December 2023. Total revenue of the group amounted to approximately RMB 4.47 billion (USD 617.8 million), a year-on-year increase of 22.9%. 

The group's revenue and profits resumed growth during the year, mainly due to high service premiums and high profit margins in the digital and information technology talent business which recorded rapid growth during the year.

Adjusted profit is approximately RMB 105.1 million (USD 14.5 million) (2022: RMB 24.0 million (USD 3.3 million).

The group's revenue mainly comes from comprehensive flexible staffing, professional recruitment and other human resources solutions.

Comprehensive flexible staffing service revenue was approximately RMB 4.42 billion (USD 611.6 million), a year-on-year increase of 23.9%, mainly due to strong customer demand for digital and information technology talent, the higher service premiums for these positions, and the rebound in demand for general service outsourcing.

The comprehensive flexible staffing business includes general service outsourcing, digital technology and cloud services, and digital operations and customer service businesses. Among them, revenue from digital technology and cloud services surged 225.2% year-on-year to approximately RMB 1.75 billion (USD 241.7 million).

Revenue from professional recruitment and other human resources solutions was approximately RMB 44.7 million (USD 6.1 million), a decrease of 30.4% compared with the same period last year.  However, benefiting from the increased recruitment demand for digital and information technology talents and the relatively high service premiums, the average unit price of professional recruitment service fees has also increased significantly. In the second half of 2023, professional recruitment services revenue also increased by 25.1% compared with the first half of the year, reflecting the gradual recovery in recruitment demand.

Zhang Jianguo, chairman and CEO of Renrui Talent Technology, said, "During the year, our business successfully transformed into digital and information technology talents, and we even turned a profit financially. We are very happy for this.”

“In early 2024, we saw the Chinese government introduce a series of regulatory policies [which] are aimed at further stimulating economic growth,” Jianguo added. “We believe that the comprehensive flexible employment market will also have broad development prospects this year. In the future, we will continue to expand the group's digital talent pool and focus on customers by further improving operational efficiency, retention and service growth, and actively expand customers in emerging business areas to further accelerate the group's growth. We will also pay close attention to the latest developments in the industry and technology so as to consolidate our position as a pioneer in the industry and create higher and more sustainable results for shareholders.”

Renrui shares closed at HKD 3.80 (USD 0.49), up 0.26% on the day. The company has a market cap of HKD 579.79 million (USD 74.0 million).