Renrui Human Resources Technology Holdings Limited recently announced that it has acquired 51% equity stakes in Jiangnan Finance Technology (Changzhou) Company Limited as well as Shanghai Lingshi Human Resources Services Limited, through a sales and purchase agreement. Renrui has acquired and bought the equity interests of Jiangnan Jinke and Shanghai Lingshi for RMB 47million and RMB 33 million respectively. Jiangnan Jinke and Shanghai Lingshi, after successful completion of the acquisition, will become indirect subsidiaries of Renrui and will further contribute to the gross P&L of the Renrui HR group.
The acquired HR companies provide flexible staffing and recruitment related services to local commercial banks in the PRC. The job roles include technology personnel, lobby managers, customer service executives, etc. Notably, until July, the target companies had managed to deliver 3400 comprehensive flexible staffing services to its clients across 130 cities. Since Renrui is focused on strengthening its staffing services, the recent acquisition will be a boon for the HR company, enabling expansion of services in the banking and finance industry.
Jiangnan Jinke and Shanghai Lingshi have ample experience in rendering staffing services to banks and financial institutions. Evidently, both the HR giants have business ties with almost 120 local and city banks. This will prove to be beneficial for Renrui, enabling it to step foot in the local financial market as well. The staffing demand among local financial institutions is quite steady and consistent, which can potentially deliver high margin profits.
The target companies have a strong customer and user base among local and city banks. Their long term extensive experience and amicable relations with financial institutions can aid Renrui in charting its next growth phase. The acquisition is further reported to enhance Renrui's pool of comprehensive flexible staffing workers, customer base and monetary gains. Along with the anticipated profits for Renrui, the acquired HR companies will also entertain profitability.
Mr. Zhang Jianguo, Chairman and Chief Executive Officer of Renrui said, “China's financial industry has been growing rapidly in recent years and is expected to drive the staffing demand of enterprises. 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.”