HRnetGroup (CHZ) investor relations material

Executive summary

• Revenue was S$292.2m, down 1.1% YoY; gross profit rose 1.5% to S$62.1m and operating profit rose 9.4% to S$20.1m.

• Core operating profit before tax, defined as gross profit less operating expenses, increased 10.0% at constant currency to S$20.2m.

• NPAT declined 27.3% to S$21.1m, mainly due to lower other income.

Financial highlights

• Revenue was S$292.2m versus S$295.5m in 1H25; gross profit was S$62.1m versus S$61.2m.

• SG&A expenses fell 1.9% to S$42.0m; employee benefit expenses rose 1.4% to S$33.7m.

• Other income fell S$10.3m to S$5.4m, reflecting a S$4.4m adverse fair-value swing, S$4.1m lower government wage-credit support and S$1.3m lower interest income.

• Profit before tax was S$25.6m versus S$34.2m; income tax expense was S$4.4m versus S$5.1m.

Outlook and guidance

• Tactical resource shifts between Professional Recruitment and Flexible Staffing will follow client talent needs and demand across markets, sectors and service lines.

• Strategic investments and bolt-on M&A are intended to accelerate Recurring HR Services, adding capabilities, clients and recurring revenue.

• Expansion aims to build critical mass and deepen client coverage in Asian markets, supported by 43 Business Leader Co-Owners and 20 high-potential Co-Owners in incubation.