A trade involving 10% equity recently appeared in the Hong Kong stock market, which may change the future market cap fate of RENRUI HR (06919) to some extent.

This trade has two main players, one is A-share listed Beyondsoft Corporation, and the other is the second-largest shareholder of RENRUI HR, Qunlian Capital, who is behind this trade. With a market cap of 7.574 billion yuan, Beyondsoft Corporation decided to replace Qunlian Capital, and the trading chips for both parties are to acquire a 10% equity in RENRUI HR.

According to the disclosure of equity changes by RENRUI HR, this trade was completed on December 24, with a final transaction amount of 3.6 Hong Kong dollars, which is a 10% discount compared to the stock price of RENRUI HR on the previous trading day. A 10% discount is considered a price range for an excellent company, which can attract buyers without causing too much loss to the seller.

According to Zhituo Finance APP, Beyondsoft Corporation is a leader in IT consulting, products, solutions, and services in China, providing high-quality IT solutions and services to global customers based on its deep accumulation in cutting-edge technology fields such as AI, Big Data, Internet of Things, and Cloud Computing.

In terms of financial performance, for the first three quarters of 2024, Beyondsoft Corporation's revenue was 5.098 billion yuan, a year-on-year increase of 5%, with a net income attributable to the parent of 0.179 billion yuan.

As the transferee, Qunlian Capital also gained much from this trade after 13 years. In 2011, Qunlian Capital began to invest in RENRUI HR and became its only A-round investor. Later, in early 2015, when RENRUI HR was expanding rapidly but hadn't yet turned a profit and needed more financial support, Qunlian Capital made an additional investment.

Jiang Haiquan, Executive Director of Qunlian Capital, once stated that the new economy sector is an important investment theme for Qunlian Capital, and any business model that changes efficiency and production methods through the Internet, empowering companies with the Internet, is favored by Qunlian Capital. RENRUI HR improves corporate management efficiency through the Internet, making this business model highly regarded by Qunlian Capital.

On December 13, 2019, RENRUI HR successfully listed on the Hong Kong Stock Exchange, subsequently achieving rapid growth and becoming a leading third-party labor outsourcing and digital talent service giant in China.

According to data from the 2024 mid-year performance report, RENRUI HR achieved revenue of 2.48 billion yuan in the first half of the year, a 20% year-on-year increase; gross profit of 0.23 billion yuan, a 37.6% year-on-year growth; and net income attributable to shareholders of 21.853 million yuan, an increase of 117.3% year-on-year. In addition, the basic earnings per share reached 0.14 yuan, marking a new high in two and a half years.

Currently, the revenue from digital technology and cloud computing services has become the second growth engine for RENRUI HR, contributing 56.1% to gross profit with a revenue share of 38.2%. It is reported that RENRUI HR has achieved robust growth across multiple industries, including Intelligent Manufacturing and Autos, telecommunications, Energy, finance, and Technology and Internet Plus-Related, with over 500 major clients and approximately 20 clients with more than 100 employees.

Against the backdrop of the digital era, Beyondsoft Corporation's equity investment in RENRUI HR not only signifies a potential deep integration of the two companies in the human resources service field but also suggests advantageous complementarity in digital transformation and global layout, jointly opening a new chapter of development.

In terms of technological innovation, Beyondsoft Corporation and RENRUI HR can jointly promote technological innovation and digital transformation. The two parties will strengthen cooperation in cutting-edge technologies such as AI, Big Data, Cloud Computing, etc., develop innovative products and services with independent intellectual property rights, and enhance core competitiveness in their respective fields. Through technological innovation and digital transformation, they may provide clients with smarter and more efficient services and promote the continuous development of the industry.

In terms of resource sharing, Beyondsoft Corporation and RENRUI HR can fully leverage their respective advantages to achieve efficient resource utilization and optimized allocation. Beyondsoft Corporation can utilize RENRUI HR's expertise in human resource services to expand its business scale in the IT service field, providing clients with more comprehensive services.

At the same time, RENRUI HR can leverage Beyondsoft Corporation's global layout and rich IT service experience to accelerate the expansion of its overseas market and enhance its international influence. The two parties can jointly explore new business models and growth points to foster continuous business growth.

Going abroad is a current buzzword for Chinese enterprises. In this year's interim report, RENRUI HR explicitly proposed a new strategy for deploying overseas human resources services, with a focus on making this the company's third growth engine.

RENTER HR CEO Zhang Jianguo emphasized that the overseas development business is mainly a self-built model, and by the end of this year, companies will be established in more than twenty countries in Europe, the Middle East, and Southeast Asia. Plans to expand to more than thirty countries or regions mainly distributed in Europe, the Middle East, South America, and Southeast Asia are set for the first half of next year.

In today's world, where the digital wave is sweeping across the globe, the deep integration of human resources and IT services is becoming an important force in driving industry upgrades. In the future, Beyondsoft Corporation's global layout and advantages of IT service solutions, combined with RENRUI HR's digital talent business and Global Strategy, will bring new growth momentum to both companies.