Breaking through the waves and breaking through the numbers: The "second curve" outbreak and cash flow revolution behind RENRUI HR (06919) 2025 annual report.

In the complex narrative of the Hong Kong stock market's financial report season, RENRUI HR (06919) released its annual report for 2025, undoubtedly a highly compelling business example. The financial report shows that in 2025, the company achieved total revenue of 55.6 billion yuan, a year-on-year increase of 22.8%; successfully turning losses into profits, with a net profit attributable to shareholders of 87.55 million yuan, and adjusted net profit attributable to shareholders of 101 million yuan, a year-on-year increase of 15.4%. The board of directors decided to distribute a dividend of 0.19 Hong Kong dollars per share, with a dividend ratio of 30% of that year's profit. More significantly, digital technology and cloud services have officially become the group's leading profit pillar, moving from the strategic second curve to the first, along with a significant improvement in operating cash flow from negative to positive, a surge in global business growth. RENRUI HR has completed a critical transformation from a leading domestic flexible workforce provider to a global digital human resources service provider. The Chairman and CEO of RENRUI HR, Zhang Jianguo, praised the growth of the second curve, stating that revenue in this sector had a "three-year compound growth rate of 43.1%", with a diversified industry distribution and strong counter-cyclical capabilities. The strong rise of digital technology and cloud services has officially become the group's "largest profit pillar" in 2025, representing a key performance highlight. This sector achieved an annual revenue of as high as 1.659 billion yuan, a year-on-year increase of 38.3%; with a gross profit of 188 million yuan, contributing 46.1%. This data signifies that RENRUI HR has successfully crossed a threshold, transitioning from a low value-added model relying solely on headcount fees to a high value-added model relying on technology and expertise. The logic behind this transformation lies in precise industry positioningreaching a customer base in the communication industry of 26%, surpassing the internet industry for the first time, and holding a 16% share in the automotive manufacturing industry. This shift not only reflects RENRUI's keen grasp of the trends in new energy vehicles and high-end manufacturing but also builds diverse counter-cyclical capabilities. Another core driver is the AI trend. In 2025, the number of AI-related technology talents at RENRUI HR increased by over 105% compared to the previous year. Leveraging the "Ten Thousand Talents" platform, AI matched talents and positions multidimensionally, utilizing an upgraded intelligent core to automate business flow control, resulting in a 14.2% increase in net profit per employee. If digital technology business is the spear of attack, then the improvement in cash flow serves as the shield in defense. In 2025, RENRUI HR achieved a historic turnaround from a net cash outflow to a net cash inflow in operating activities. The net cash outflow from operating activities decreased by 61 million yuan compared to 2024, a decrease of 57.7%. Excluding the impact of divested subsidiaries, the net cash inflow from operating activities reached 9.4 million yuan. Behind this miracle is the management's nearly harsh reshaping of risk control. The company elevated trade receivables management to a strategic level, establishing a full-chain risk control system, reducing the turnover days of trade receivables from 96 days in 2024 to 79 days, accelerating the average collection period by 17 days. This efficient fund turnover not only releases substantial liquidity but also provides a solid financial foundation for future expansion. Additionally, the company's interest-bearing debt decreased by 35.8%, the current ratio rose to 2.1 times, and it is in a net cash position. RENRUI HR's CFO, Li Wenjia, pointed out at a performance meeting that this move had made the company's "financial structure healthy and significantly increased its risk resistance." This means that RENRUI HR has rid itself of the burden of high leverage and has reserved ample ammunition for future strategic expansion. As the internal growth engine roars, RENRUI HR's global layout represents its external growth catalyst for opening up future growth opportunities. The annual report data shows that RENRUI HR's international business revenue reached 77 million yuan in 2025, a staggering increase of 291.8% compared to the previous year; with a gross profit of 20 million yuan, a year-on-year increase of 152%. By the end of 2025, RENRUI HR had established subsidiaries in 24 countries and regions globally, doubling the number from the previous year. Its footprint not only covers Southeast Asia and the Middle East but also accelerated its expansion into core markets in Europe, America, and Japan in early 2026, with the appointment of country managers for subsidiaries in Japan, Germany, and the United States. This strategic layout holds significant depth: in Southeast Asia and the Middle East, RENRUI established digital operations and customer service centers (in Uzbekistan, Egypt, Indonesia), using local population advantages and locations to provide offshore services for customers; while in mature markets such as Europe, America, and Japan, it focuses on servicing Chinese high-end manufacturing, new energy, and internet giants, addressing challenges in employment compliance, cross-cultural management, and recruitment difficulties. Zhang Jianguo attributes this rapid growth to the strategy of "following large customers": "As our clients expand overseas, we can quickly land services locally." He expects that the growth rate of overseas business in 2026 and 2027 will at least double, serving as an indispensable human resources partner for Chinese companies going international. Behind the switch in business dynamics and global expansion is a profound innovation in RENRUI HR's service model. Faced with industry-wide pressure on gross profit margins due to upstream client budget constraints, RENRUI HR did not engage in internal price wars but chose to extend its service value chain upwards. The establishment of "Ruihua Zhice" in mid-2025 signifies the company's introduction of an integrated "consulting + technology + outsourcing" solution. This model no longer confines itself to simple labor outsourcing but penetrates through management consulting, enabling clients (especially large national enterprises) to clarify their digital transformation strategies, solidify these concepts into digital platforms through the technical team, and then introduce specialized talents for on-site services. This transformation elevates RENRUI HR from a supplier focusing on cost savings to a strategic partner in value creation, greatly enhancing customer retention (average service duration of the top ten customers exceeds 8 years) and business barriers. Looking back at the beginning of 2026, RENRUI HR's 2025 financial report is not just a list of financial data but also a business textbook on "how to find certainty in uncertainty." It demonstrates with facts that through an integrated solution of "consulting + technology + outsourcing," companies can successfully build competitive barriers; through global expansion, they can turn the red dividends of Chinese companies going international into their own growth dividends. From the profit overtaking of digital technology to the complete return to positive cash flow, and to the blazing spread across 24 countries globally, RENRUI HR is crafting a globalization story for Chinese service enterprises.