Financial Highlights  (as of six months ended30 June 2023):

Total revenue of RMB 2529.0 million, representing an increase of approximately 13.5 % compared to the same period of 2022.

Revenue generated from flexible staffing segment, the largest business segment of the Group, grew by approximately 15.8% on a year over year basis to RMB 2433.1 million, of which the flexible staffing revenue from Mainland China maintained strong growth momentum of 24% on a year over year basis.

The total number of associates placed during the Period increased by 33.8% from approximately 30,500 as of 30 June 2022 to approximately 40,800 as of 30 June2023, among which the total number of associates placed in Mainland China grew by approximately 29.2%.

 Net profit attributable to owners of the Company increased to RMB 55.6 million, representing  growth of approximately 1.8% year over year. Adjusted net profit attributable to owners of the Company recorded RMB 61.7 million after adjusting  one-off expenses, increasing by 3.7% year over year.

[August 25, 2023, Hong Kong] ManpowerGroup GreaterChina Limited (“ManpowerGroup Greater China” or the “Company”, and its subsidiaries, the “Group”, stock code: 2180.HK) is pleased to announce the interim results for the six months ended 30 June 2023 (the “Reporting Period”). During the Reporting Period, the Group recorded total revenue of RMB 2529.0 million, representing a year-on-year increase of approximately 13.5%. The Group’s largest business segment, flexible staffing, recorded a year-on-year growth of approximately 15.8 % in revenue to RMB 2433.1 million, with the revenue of flexible staffing business in Mainland China growing by approximately 24 % compared to the same period last year. Revenue generated from Hong Kong had a slight decrease of 0.6% on a year over year basis, mainly due to less Covid-related projects and lagged recovery of demand. Taiwan, despite being negatively impacted by cooling global demand and shift away of production, still recorded revenue growth of 2.6% compared with same period last year. During the period, net profit attributable to owners of the Company increased to RMB 55.6 million, representing a growth of approximately 1.8 % year-on-year; Adjusted net profit attributable to owners of the Company, after adjusting one-off expenses, increased by 3.7% on a year-over-year basis to RMB 61.7 million.

Steady Growth of Flexible Staffing in Mainland China with Expanded Service Offerings

During the first half of 2023, global economic growth continued to slow down; the removal of COVID-19 related restrictions didn’t bring a strong post-COVID economic recovery as expected. Instead, Chinese economy had been facing problems including weak growth momentum and sluggish internal demand especially in the second quarter. Despite macroeconomic uncertainty, the Group continued to expand its service offerings in Mainland China, particularly in the flexible staffing business. In addition to growing its existing accounts, the Group actively expanded into the State-Owned-Enterprise (SOE) sector and financial services sector to increase its market share in Mainland China. In the meantime, the Group had made solid progress in the IT Outsourcing (ITO) business segment to further widen its business offerings and provide comprehensive services in a fast-growing industry. 

During the Period, the Group continued to optimize its operational structure in Mainland China and accelerated expansion into eastern and western China, such as Chengdu and Hangzhou, and bolstered its strong market position in tier-one cities such as Shanghai, Beijing, and Guangzhou. The total number of associates placed during the Period increased by 33.8% from approximately 30,500 as of 30 June 2022 to approximately 40,800 as of 30 June 2023, among which the total number of associates placed in Mainland China grew by approximately 29.2%. With strong growth potential of the human resources industry, the Group is confident about maintaining its leading market position.

Active Cost Management Measures and Acceleration of Internal Technological Upgrade to Increase Operational Efficiency

By implementing active cost management measures and optimizing operational efficiency, the Group achieved 22% growth of average revenue generated per employee on a year over year basis during the period. Moreover, turn over days of trade receivables further decreased to 51.8 days for the Period from 53.9 days of the same period last year, thanks to the Group’s strong risk control capabilities.

During the Reporting Period, in view of the industry trend of digitalisation, the Group continued to upgrade its internal technological platforms and infrastructure for higher operational efficiency and optimize working procedures to achieve better cost effectiveness.

 Leading HR Service Providerin the Greater China Region with wide recognition

The Group’s efforts in providing customized and professional services to its clients in the Greater China region have been recognized with a number of awards, including “2022 Best HR ServiceProvider” (“2022年度最佳人力资源服务机构”) by HRoot, “2022 BestHRTech Service Provider” (“2022年度人力资源最佳服务机构”) by HRTechChina, and“Leading Enterprise in the Big Data Field of the Software Industry in 2022”(“2022年软件行业大数据领域领军企业”) by China Software Industry Association.

Looking ahead into the second half of 2023, China’s economy will continue to face various problems such as shrinking domestic and external demand, mounting pressure onthe private economy, and ongoing geopolitical disputes with the United States. Amidst the uncertainty in the macro-economic environment, the Group is cautious about its business growth in the second half of the year, but is optimistic about business outlook in the medium term on the back of a fast-growing flexible staffing industry, diversification of the portfolio of services, and robustness of its business model.

Mr.CUI Zhihui, Executive Director and Chief Executive Officer of the Group, said, “In the second half of 2023, flexible staffing business in Mainland China will remain our strategic focus. We believe that the Group’s leading position in the human resources industry in the Greater China region, together with its strong global brand and diversified business lines, excellent customer development capabilities and superior cash flow management, will further enableit to fully capture the strong growth potential of the human resources market.”