HRnetGroup Limited Announces Strategic Subsidiary Changes and Share Acquisitions

Singapore, 25 February 2026 – HRnetGroup Limited has made a series of strategic announcements pursuant to Rule 706A of the SGX-ST Listing Manual, detailing significant changes within its group structure for the half year ended 31 December 2025. These developments may be of key interest to shareholders and investors, as they reflect the company’s ongoing efforts to streamline operations and increase its stake in core subsidiaries.

Key Highlights

• Incorporation of New Subsidiary: HRnetGroup established a new subsidiary, RecruitFast (Kunshan) Human Resources Co., Ltd., in which it holds a 60% deemed interest with an initial registered share capital of S\$0.4 million. This move signals the Group’s continued expansion into the China market and commitment to growing its human resources footprint in the region.
• Liquidation of Non-Core Subsidiary: The company completed the voluntary liquidation of SPV2 Pte Ltd, a subsidiary in which it previously held a 51% interest. This step is part of the Group’s overall strategy to streamline its corporate structure and focus on core, higher-growth assets.
• Increased Stakes in Taiwan Subsidiaries: HRnetGroup has increased its ownership in two divisions of PeopleSearch (Taiwan) Pte Ltd:
  • Division 1: Stake increased by 5.33 percentage points, from 79.34% to 84.67%.
  • Division 2: Stake increased by 5.33 percentage points, from 89.34% to 94.67%.

  The acquisitions were executed through agreements with co-owners, with total cash consideration amounting to S\$0.68 million. The valuation was based on price-earnings ratios applied to operating profits, as per the agreed formulae. Notably, the previously announced consideration for similar transactions was revised down from S\$1.9 million to S\$1.76 million after subsequent adjustments.

Potential Impact and Shareholder Considerations

• Strategic Reallocation of Resources: The moves to establish a new subsidiary in China and to increase ownership in profitable Taiwan subsidiaries underline HRnetGroup’s commitment to expanding in high-potential markets. Such initiatives may enhance long-term earnings growth and shareholder value.
• Non-Material Financial Impact: The company noted that the net asset value of the shares acquired or disposed of is not material in the context of the Group as a whole, and that these transactions are not expected to have any material financial impact for the current financial year. This suggests limited short-term effects on the Group’s consolidated financials.
• Price-Sensitive Adjustments: Investors should note the revision in acquisition consideration for interests in the Taiwan subsidiaries, which decreased from S\$1.9 million to S\$1.76 million. Such adjustments highlight the Group’s prudent approach to deal-making and value optimization.
• No Interested Person Transactions: The company clarified that, other than as disclosed, these transactions do not constitute interested person transactions under SGX rules, and no directors or controlling shareholders (outside of their directorships and shareholdings) have direct or indirect interests in the deals.

Conclusion

HRnetGroup Limited’s recent actions reflect a focused strategy to intensify its presence in growth markets and enhance control over its key subsidiaries. While the financial impact for the current year is not expected to be material, the increased stakes in PeopleSearch (Taiwan) Pte Ltd and the expansion into China could help position the Group for stronger future performance. Investors may view these developments as positive for long-term prospects, although immediate share price movements may be limited due to the non-material impact on financials.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult professional advisors before making investment decisions.

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