Banking Fintech News

Renrui HR Strategically Acquired Two Regional Leading Providers Of Comprehensive Flexible Staffing Services To Commercial Banks

Renrui HR Strategically Acquired Two Regional Leading Providers Of Comprehensive Flexible Staffing Services To Commercial Banks

Further Expanding Customer Coverage in the Financial Services Industry

Renrui Human Resources Technology Holdings Limited, is pleased to announce that on 16 September 2021, the Group has entered into a Sales and Purchase Agreement, and has agreed to acquire 51% of equity interests of Jiangnan Finance Technology Company Limited and Shanghai Lingshi Human Resources Services Limited (referred to below as “Shanghai Lingshi”) for approximately RMB 47million and approximately RMB 33million respectively. The target companies  are the leading HR service providers in the regions, mainly engaged in provision of comprehensive flexible staffing services to local commercial banks in the PRC. As at 31 July 2021, the total number of comprehensive flexible staff employees deployed by the target companies were over 3,400. Upon completion of the acquisitions, Jiangnan Jinke and Shanghai Lingshi will become indirect subsidiaries of the Company, and their financial results will be consolidated into the financial statements of the Group.

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Renrui HR has been committed to continuing to strengthen the capability to deliver fast and professional comprehensive flexible staffing solutions. The acquisitions will strengthen the Group’s expansion capabilities in the financial services industry, further expand its customer base, increase the number of comprehensive flexible staffing employees as well as improve the profitability of the Group:

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  • Enhance the capability of industry expansion: According to the “The List of Legal Persons of Banking Financial Institutions (as of 30 June 2021)” published by the China Banking and Insurance Regulatory Commission on August 19, 2021, as at 30 June 2021, there were more than 1,500 rural commercial banks and approximately 130 city commercial banks in the PRC. The Target Companies has built up business cooperation with approximately 120 rural and city banks and possess extensive experience in providing comprehensive flexible staffing services to banks and financial institutions as such they have huge potential for development in the market. As at 31 July 2021, the Target Companies had more than 3,400 comprehensive flexible employees in over 130 cities in the PRC. Coupled with the strong fast recruitment capability, the acquisitions will enable the Group (including the Target Companies) to expand into the comprehensive flexible staffing service market targeting local financial institutions, which has a comparatively more stable and continuous demand for staffing and a relatively higher gross profit margin.

  • Diversify the customer base: Currently, the target companies have established a stable long-term business cooperation with the rural commercial banks and city commercial banks and have built good relationships with leading players. Through such long-term services, the target companies have accumulated extensive experience and successful precedents together with the relevant entry qualifications for providing comprehensive flexible staffing services to financial institutions. After the completion of the acquisitions, the Group will be able to explore more business opportunities in the financial services industry and diversity the customer base to more banks and financial institutions.

  • Enhance the Group’s profitability: The target companies are principally engaged in providing comprehensive flexible staffing services for the financial industry. Its positions primarily including lobby managers, information technology personnel and customer service personnel. The unaudited revenue of the target companies for the year ended 2019 and 2020 was approximately RMB135 million and RMB180 million, respectively. After the completion of the acquisitions, it will improve the overall profitability of the Group.

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Mr. Zhang Jianguo, Chairman and Chief Executive Officer of Renrui Human Resources Technology Holdings Limited, stated, “China’s financial industry has been growing rapidly in recent years and is expected to drive the staffing demand of enterprises. Benefitting from the stability and sustainability of the banking and financial industry, it will continue to bring new business opportunities to the Group. Thus, it has always been one of the Group’s business strategies to expand its customer coverage to financial institutions. These acquisitions allow Renrui HR to acquire an established team filled with industry experts. Both Jiangnan Jinke and Shanghai Lingshi have extensive experience in providing comprehensive flexible staffing services for financial institutions. We believe that their proven track record and abundant customer resources would help the Group to overcome the high entry barriers and further promote our expansion in the comprehensive flexible staffing service market in the PRC.”

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