RENRUI HR (06919) announced that the Group is expected to achieve an annual profit of approximately RMB 74.1 million to RMB 84.1 million for the year ending December 31, 2025, and a profit attributable to the company's equity holders of approximately RMB 80.6 million to RMB 90.6 million. This represents a turnaround from a loss to a profit compared to the year ended December 31, 2024.
The primary reason is that an impairment provision for goodwill arising from the acquisition of Shanghai Surui Information Technology Co., Ltd. was recognized in the financial statements for the year ended December 31, 2024, whereas no such impairment provision is expected to be recognized in the financial statements for the year ending December 31, 2025.
Furthermore, the Group's profit for the year ending December 31, 2025, is expected to increase correspondingly with the growth in the Group's revenue for that period. The anticipated revenue growth is mainly attributable to an increase in the number of on-site personnel for the Group's flexible staffing services for IT talent and mid-to-back-office positions, which continues to drive revenue growth from Digital Technology & Cloud Services and General Service Outsourcing.
As the second growth curve of the Group's operational strategy, Digital Technology & Cloud Services has been a key development focus in recent years. Increased demand for these services from clients in the internet, telecommunications, and automotive industries has driven the growth in the number of on-site IT talent provided through the Group's flexible staffing services.
Regarding the positions filled by the General Service Outsourcing business, the Group has been actively expanding client demand for flexible staffing in mid-to-back-office roles, such as operations, human resources, and administrative management, which offer higher service value and longer contract durations. The growing client demand for flexible staffing in these mid-to-back-office positions has consequently driven an increase in the number of on-site personnel for the Group's General Service Outsourcing business.