RENRUI HR (06919) plans to sell 46% equity of Shanghai Sui Rui Information Technology for 321 million yuan.

REN RUI HR (06919) announced that on March 10, 2025, the seller Shanghai Ruiying Talent Technology Group Co., Ltd. (an indirectly wholly-owned subsidiary of the Company) and the buyer Neusoft Corporation Co., Ltd. entered into a supplemental agreement supplementing the asset purchase agreement containing the final price and other terms and conditions. The agreement constitutes a formal agreement. According to the formal agreement and subject to its terms and conditions, the seller agrees to sell and the buyer agrees to acquire 46.0% equity interest (target equity) held by the seller in the target company Shanghai Sui Information Technology Co., Ltd. for a total consideration of RMB 321 million. The target company was established in accordance with Chinese law on November 7, 2013. The target company is an information technology and software service provider, dedicated to providing digital transformation and information technology services to customers. The reasons and benefits of the sale are as follows: (i) The Group originally acquired 46.0% equity interest in the target company in 2022 to accelerate the Group's expansion in the information technology and software outsourcing services industry and promote the Group's strategic upgrade. By absorbing and integrating the target company's professional skills, bid cases, and service experience in the past two years, the Group quickly established its own service capabilities in providing information technology and software outsourcing services. The Group also leveraged the target company's professional skills in sales and customer service in the financial, advanced manufacturing, and high-tech industries, expanding its customer base for information technology and software outsourcing services to new energy, telecommunications, automotive, and other industries. Therefore, the revenue generated by the Group's digital technology and cloud service business from internal growth increased from approximately RMB 28.81 million in 2022 to approximately RMB 81.09 million in 2023, an increase of approximately 181.5%. In the first half of 2024, the revenue generated by the Group's digital technology and cloud service business from internal growth was approximately RMB 52.28 million, an increase of approximately 82.4% from the first half of 2023, exceeding the revenue contribution of digital technology and cloud service business by the target company in the first half of 2024, which was approximately RMB 42.54 million. Therefore, the Board of Directors believes that the Company has established service capabilities and customer base in the information technology and software outsourcing services industry, and the sale will not have a significant adverse impact on the Group's future development in the information technology and software outsourcing services industry. (ii) Based on the target company's recent operating performance and cash flow and referring to the Group's financial budget, the target company's financial performance and business growth may not meet the Group's expectations, and the target company's revenue growth rate is also lower than the Group's expectations; (iii) Considering the Group's current working capital and asset-liability ratio, the sale can enhance the Group's cash reserves, improve the asset-liability ratio, and provide funds for maintaining the rapid internal growth of the Group's digital technology and cloud service business and the Group's future global expansion strategy.