Strong internal drive: RENRUI HR (06919) achieved a 22.4% year-on-year increase in performance in 2024.

On March 31, 2025, RENRUI HR Technology Holdings Co., Ltd. (Stock Code: 06919), a leading integrated human resources service and digital technology solutions provider in China, announced its 2024 annual performance report as of December 31, 2024. The report shows that RENRUI HR achieved a revenue of 5.473 billion yuan in 2024, an increase of approximately 22.4% year-on-year; a gross profit of approximately 0.499 billion yuan, an increase of approximately 18.1% year-on-year; and an adjusted net profit attributed to the parent company of approximately 0.088 billion yuan, an increase of approximately 28.8% year-on-year. The performance report shows that in 2024, RENRUI HR's income mainly came from general service outsourcing, digital technology and cloud services, digital operation and customer service, recruitment, etc., and the revenue of each business segment achieved steady growth. Among them, comprehensive flexible employment services including general service outsourcing and digital technology and cloud services achieved a revenue of approximately 5.43 billion yuan in 2024, an increase of approximately 22.5% year-on-year. The number of employees in comprehensive flexible employment increased from 35,908 at the end of 2023 to 41,868 at the end of 2024. The number of employees in general service outsourcing flexible employment increased by 14.8% year-on-year to 26,319, and the number of employees in information technology flexible employment increased by 25.0% to 11,834. The strong internal driving force was key to RENRUI HR's performance growth in 2024. The revenue of digital technology and cloud services reached approximately 2.14 billion yuan, a year-on-year increase of 22.4%. The gross profit of this business segment increased by 14.5% year-on-year to 0.275 billion yuan, accounting for approximately 55.2% of RENRUI HR's overall gross profit. It is worth noting that excluding the contribution from the sold Shanghai Sui Rui, the number of employees in information technology flexible employment at RENRUI HR still reached 6,899 (2023: 5,072), with a year-on-year increase of approximately 36.0%. The customers mainly come from the technology and internet, intelligent manufacturing and automotive, telecommunications, and automotive fields, and there are 27 customers with more than one hundred outsourced employees. In his book "Growth Structure," Wang Sai, Managing Partner of Cottrell Consulting Group in China, pointed out, "The internal growth capability of a company has become the watershed and fracture line between mediocre companies and great companies, which can deduce who is swimming naked after the tide." The essence of internal growth lies in the upgrading of the company's value creation capability, reflecting the sustainability and long-term competitiveness of the business. Internal growth depends on the enhancement of the company's own capabilities (such as technology research and development, process optimization, brand building), and once this capability is formed, it will become a structural advantage that is difficult for competitors to replicate quickly. The business development of RENRUI HR is a typical example of internal growth. Since first proposing "second entrepreneurship" in mid-2021, focusing on digital technology talent business to create a "second growth curve," RENRUI HR has achieved a leap from 0 to over 2 billion yuan in this business area in just under 3 years, with the internal part based on the number of on-site employees by the end of 2024 accounting for as much as 58.3%, becoming the biggest driving force for the continuous explosive performance of RENRUI HR.