Company Overview The company is the largest provider of human resources solutions in Greater China, covering mainland China, Hong Kong, Macau and Taiwan. As of the end of December 2018, the company operated more than 20 offices, covered 130 cities in Greater China, and had a talent database with more than 4 million candidates (as of June 18, 2019), providing human resources services to more than 22,000 customers, including 260 Fortune 500 companies and well-known local enterprises. The controlling shareholder of the company is Manpower Group, which is listed on the New York Stock Exchange. In FY2016-FY2018, the company's revenue was approximately RMB 1.62 billion, $2.01 billion and $2.49 billion, with CAGR of 25%; gross profit of RMB 380 million, $457 million and $565 million, respectively, and CAGR of 21.9%; net profit of approximately RMB 77 million, $95 million and $113 million respectively; net profit of about 4.7%, 4.7% and 4.6% respectively. Industry conditions and prospects The continuous talent upgrading and economic transformation of the Chinese labor market, and the demand for middle and high-end talents from enterprises continues to increase. The human resources service industry in mainland China has continued to grow rapidly over the past five years, mainly driven by the increase in demand for qualified and competitive talents and the increase in corporate budgets distributed to human resources services (especially human resources solutions departments). In terms of revenue, the overall market size increased from RMB 191.2 billion in 2014 to RMB 408.5 billion in 2018, with a CAGR of 20.9%, and is expected to reach RMB 1,014.2 billion in 2023. The ratio between supply and demand of human resources in mainland China is calculated by dividing the total number of job vacancies at a given point in time by the number of job seekers. According to data from the Ministry of Human Resources and Social Security, from 2014 to 2018, supply in the human resources market in mainland China was in short supply year by year, and the ratio between supply and demand has remained above 1 since that period. Therefore, the difference between supply and demand opens up opportunities for the continued development of the human resources solutions market in mainland China. Advantages and opportunities A world-renowned brand that is trusted by multinational and local customers; rooted in the local market, has a long history of operation, and has established a solid customer base. An experienced and highly motivated management team and an efficient partner system. Weaknesses and Risks Human labor industries are or may be replaced or impacted by technology. Coupled with intense competition, demand for some of the company's services may decrease or disappear. A company's operating performance may be significantly adversely affected by volatility or uncertainty, and demand for services may be affected by investment valuations interrupted by geopolitical events such as the US-China trade war and Brexit. The investment valuation is calculated based on prospectus pricing (HK$9.9-12.6). The company's 2018 price-earnings ratio P/E was 17.5x-22.2x, and the net market ratio P/B was 1.82x-2.06x, making the valuation reasonable. Based on comprehensive considerations, a special rating of “5” was given for IPOs.