HK-listed Renrui Human Resources at record low as key customer cancels contract

Reuters2021-07-02

** Shares of Renrui Human Resources Technology Holdings Ltd plunge 37.2% to an all-time low of HK$13.50, on course for third straight session of losses

** Stock falls most since listing in December 2019 and is the biggest percentage loser on the Hong Kong bourse

** Sichuan-based human resources firm says a major customer plans to terminate its flexible staffing services, which is expected to lead to 10% to 20% year-on-year drop in adjusted net profit for the year ending December 2021

** Says revenue generated from the major customer for providing the flexible staffing services amounted to 1.06 bln yuan ($163.8 mln) in 2020, or 37.6% of its total revenue

** The Hong Kong Hang Seng Commerce & Industry Index falls 1.8%

** The Hang Seng China Enterprises Index slips 1.3%, and the benchmark index slides 1.1%

** As of last close, the stock had dropped 15.2% this year

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