RENREI HR (06919) expects year-on-year revenue growth.

RENRUI HR (06919) announces that as of December 31, 2024, the Group's revenue for the fiscal year is expected to increase compared to the fiscal year ended December 31, 2023, mainly due to the increase in the number of flexible employees in 2024. As of December 31, 2024, the number of IT and digital talent has grown by over 20% year-on-year, while the number of general service outsourcing employees has increased by over 10%. However, based on the recent operational performance and cash flow situation of the Group's non-wholly-owned subsidiary Shanghai Sui Information Technology Co., Ltd. (Shanghai Sui), the financial performance and business growth of Shanghai Sui did not meet the Group's expectations. Therefore, considering the recent operational and financial performance of Shanghai Sui, as well as the future market prospects, the Group expects to make an impairment provision of approximately RMB 131 million in the financial statements for the fiscal year ending December 31, 2024, related to the goodwill arising from the acquisition of Shanghai Sui (expected impairment provision). Given the above, the Group is expected to incur an annual loss of approximately RMB 54.9 million to RMB 64.9 million for the fiscal year ending December 31, 2024, and the Group's equity holders are expected to incur a loss of approximately RMB 66.4 million to RMB 76.4 million. Excluding the expected impairment provision, the Company expects to achieve a positive net profit for the fiscal year ending December 31, 2024, compared to the fiscal year ended December 31, 2023, mainly due to strong growth in the Group's business profit. The Company hereby clarifies that the expected impairment provision is a non-cash accounting item, and therefore is not expected to have a significant adverse impact on the Company's current and future operations and cash flow.