ManpowerGroup Greater China Announces 2019 Interim Results

HONG KONG, Aug. 28, 2019 /PRNewswire/ --

FINANCIAL HIGHLIGHTS

• Revenue increased by approximately 31.1% to RMB1,441.6 million (2018 Interim Period: RMB1,099.7 million).
• Gross profit increased by approximately 19.0% to RMB297.4 million (2018 Interim Period: RMB250.0 million).
• Adjusted profit for the period attributable to owners of the Company from continuing operations* (excluding one-off listing expenses) increased by approximately 38.9% to RMB56.1 million (2018 Interim Period: RMB40.4 million).
• The earnings per share calculated based on the adjusted profit for the period attributable to owners of the Company from continuing operations* was RMB0.37 per share (2018 Interim Period: RMB0.27 per share).

ManpowerGroup Greater China Limited ("ManpowerGroup Greater China" or the "Company", together with its subsidiaries, the "Group", stock code: 2180.HK), the leading workforce solutions provider in Greater China, is pleased to announce its financial results for the six months ended 30 June 2019 ("2019 Interim Period" or the "Period" ). It's the Company's first interim results announcement after its successful listing on the Main Board of Stock Exchange (the "Listing") on 10 July 2019.

Revenue Continues to Grow Rapidly While Flexible Staffing Service Recorded New Success

During the Period, the Group recorded a revenue of RMB1,441.6 million, representing an increase of 31.1% compared to the corresponding period in 2018. In particular, revenue generated from the arrangement of flexible staffing, the Group's major business, grew by 35.4% to RMB1,256.7 million. During the Period, adjusted profit attributable to owners of the Company from continuing operations (excluding one-off listing expenses) was RMB56.1 million, representing a 38.9% increase from RMB40.4 million for the six months ended 30 June 2018. The earnings per share calculated based on the adjusted profit for the period attributable to owners of the Company from continuing operations was RMB0.37 per share for the six months ended 30 June 2019, increased from RMB0.27 per share for the six months ended 30 June 2018.

Leveraging on its well-established brand awareness and the global reputation of its largest stakeholder, ManpowerGroup Inc., the Group successfully capitalised on the strong potential in the PRC workforce solution market and the increase in popularity of flexible staffing model as evidenced by the growth in the Group's overall revenue and, particularly, the flexible staffing business line during the Period. During the six months ended 30 June 2019, the revenue generated from flexible staffing, headhunting, Recruiting process outsourcing ("RPO") and other human resources services accounted for 87.2%,9.5%,1.0% and 2.3% of the total revenue respectively.

Further Enlarged Business Scale with Wide Recognition by the Greater China Market

As at 30 June 2019, the Group had served over 22,800 clients, including over 270 Fortune 500 companies and prominent local public and private employers. During the Period, the Group has acquired over 300 new clients. The Group also strived to strengthen its relationship with its clients by expanding service offerings with an aim to fully cover its clients' workforce related needs and create values. In addition, the Group focused on driving the growth of its talent pool by leveraging its ability to match talents with suitable career opportunities, the quality of its services and its ability to engage talents throughout different stages of their career life cycle. As at 30 June 2019, the Group had over 4.5 million candidates in its talent pool. Furthermore, the Group upgraded its internal online management systems during the Period, which has contributed to optimising its execution and management of flexible staffing and headhunting businesses and improved operating efficiency.

During the Period, the Group continued to maintain its wide recognition in the Greater China region. The Group received "The Best HR Service Organization of the Year 2018" from HR Salon and "Best HR Awards-2018 -- Recruitment Agency of the Year" from CTgoodjobs. The Group was also named "The Best Comprehensive HR Service Provider in Greater China (Foreign Company/Joint Venture)" by HRoot. It was also one of the "Top 12 Flexible Staffing Service Providers" and "Top 10 Individual Ability Development Solution Providers" recognised by HR Excellence Center in 2019.

Successful Listing Boosted Technology R&D and Dedicated to Expanding Business Development and Market Share

On 10 July 2019, ManpowerGroup Greater China was successfully listed on the Main Board of Stock Exchange, marking a key milestone in the development of the Group. With the access to additional funding from the Listing, the Group will strengthen its technological capabilities and invest in digital workforce platforms for its flexible staffing business, including the development of a flexible staffing system, which enables the Group to capture increased flexible staffing business opportunities and increase the size of its flexible staffing talent database; and the development of a training platform, which allows the Group to provide more upskill training to its employees, associates and clients.

The Group will continue to focus on the strategies to expand its business and market share, in particular the flexible staffing business, by hiring partners and consultants in support of its organic growth and through strategic merger and acquisitions. Looking forward, the Group will continue to expand its service offerings, particularly flexible staffing business, in its existing markets including Shanghai and Beijing. In addition, the Group will expand its geographic coverage by establishing presence in areas with strong economic fundamentals and large human resources service markets, such as second-tier cities of China and cities in Central China and Western China.

Mr. YUAN Jianhua, the executive Director and Chief Executive Officer of ManpowerGroup Greater China Limited, said: "Amid the market turbulence and uncertainties in light of certain macroeconomic factors, we are confident of the Group's future prospects. In particular, with the accelerated investments in the aspects of personnel, region and technology boosted by the successful listing, we expect continuous growth in overall revenue cored by flexible staffing business. As a token of appreciation to shareholders for their support, the Group expects to distribute dividend of approximately 35% to 45% of the annual profits of 2019. Looking forward, the Group will take active steps to improve efficiency in order to deliver better financial results and create greater value for our shareholders."

About ManpowerGroup Greater China Limited 

ManpowerGroup Greater China Limited ("ManpowerGroup Greater China" or the "Company", together with its subsidiaries, the "Group", stock code: 2180.HK), is the largest workforce solutions provider in the Greater China Region by revenue in 2018. The Group provides comprehensive workforce solutions and other HR services to clients located in each market in Greater China, namely, Mainland China, Hong Kong, Macau and Taiwan. As of December 31, 2018, the Group had served over 22,500 clients, including over 260 Fortune 500 companies and prominent local public and private employers. The Group's services, namely, flexible staffing, headhunting, RPO and other HR services, are aimed at complementing clients' business models throughout the different stages of the relevant industry lifecycles. The Group's flexible staffing and headhunting services are popular among clients who are interested in expansion, and RPO service appeals to clients who wish to improve cost-efficiency. The Group's largest stakeholder, ManpowerGroup Inc., is a New York Stock Exchange-listed Fortune 500 company and is a world leader in workforce solutions and services with a long operating history of over 70 years and a global network of nearly 2,600 offices, according to its 2018 annual report.