Summary of Kingdee International's Conference Call Company Overview - **Company**: Kingdee International Software Group Co., Ltd. - **Fiscal Year**: 2024 - **Total Revenue**: RMB 3.93 billion, with cloud service revenue accounting for 81.6%, a year-on-year increase of 13.4% [2][3][4] - **Net Loss**: Reduced by 32.3% to RMB 142 million [2][3] - **Operating Cash Flow**: Increased by 42.9% to RMB 934 million [2][3] - **Cash Reserves**: RMB 4.65 billion at year-end, indicating a healthy financial position [2][3] Key Financial Metrics - **Profit Margin**: Increased from 3% in 2023 to 6% in 2024 [2][5] - **Research and Development (R&D) Investment**: Stable with a slight increase of 0.4% [2][6] - **Administrative Expenses**: Increased by 9.9% due to personnel restructuring [2][5] Cloud Service Performance - **Cloud Service Revenue Growth**: 13.4% increase, contributing to 81.6% of total revenue [2][4] - **Annual Recurring Revenue (ARR)**: Grew by 20% to RMB 3.43 billion, with a 5.4 times increase since 2020 [2][4] - **Contract Liabilities**: High levels indicating potential future revenue [4] Large Enterprise Market - **Contract Growth**: Number of contracts over RMB 10 million doubled, totaling RMB 2.1 billion [2][7] - **New Customers**: 652 new large enterprise customers [2][7] - **ARR Growth for Large Clients**: Increased by 30% [2][7] - **Net Renewal Rate**: Improved to 108% [2][7] AI Integration and Innovations - **AI Applications**: Significant improvements in client management and operational efficiency, e.g., a 70% reduction in workload for China Merchants [2][8] - **AI Product Launches**: Introduction of EBC digital employee solutions and the Cangqiong GPT platform [2][11] - **Future AI Spending**: Expected global IT spending on AI to reach USD 500 billion by 2027 [2][10] Strategic Direction - **AI Development Goals**: Aim to become a leading enterprise management AI company by 2030 [2][10] - **Internal AI Utilization**: Initiatives to enhance efficiency and reduce costs through AI [2][20] - **Market Positioning**: Focus on becoming a benchmark for AI usage within the software industry [2][20] Challenges and Outlook - **Market Sensitivity**: The small and medium enterprise market is sensitive to economic conditions, impacting growth [2][19] - **Future Growth Expectations**: Anticipated improvement in performance due to increased demand for digital transformation among SMEs [2][19] - **Profitability Outlook**: Continued profitability expected, with a conservative approach to future guidance [2][21] Conclusion - **Investment Potential**: Kingdee International is positioned as a valuable player in the enterprise management AI sector, with a focus on sustainable growth and innovation in cloud services and AI applications [2][29]

Kingdee International Software Group Company (00268) H2 2024 Earnings Call March 18, 2025 07:36 AM ET Moderator And analyst to Jonas for the Kinti International twenty twenty four Annual Results Announcement. First of all, please allow me to introduce the management team with SKT A. There, Chairman of the Board and CEO, Mr. Robert Xu President, Mr. Jason Zhang Executive Director and CFO, Mr. Linbo Vice President and the General Manager of the R and D Center, Mr. Liu Zhong Wen General Manager of the IR, Mr. ...

Revenue Growth - Revenue for the year ended December 31, 2024, increased by approximately 10.2% to RMB 6,255,684,000, compared to RMB 5,679,073,000 in 2023[2] - Cloud service revenue grew by approximately 13.4% year-on-year, accounting for 81.6% of total revenue, up from 79.3% in 2023[4] - Annual Recurring Revenue (ARR) for cloud subscription services reached approximately RMB 3.43 billion, representing a year-on-year growth of 20.0%[4] - The company signed contracts worth approximately RMB 2.1 billion, with a year-on-year growth of 51.9%[12] - For the fiscal year ending December 31, 2024, the total revenue from external customers in China was RMB 6,185,824,000, an increase from RMB 5,636,312,000 in 2023, representing a growth of approximately 9.7%[46] - The cloud services business generated revenue of RMB 5,106,725,000 for the fiscal year 2024, up from RMB 4,504,983,000 in 2023, reflecting a growth of about 13.3%[42][44] - The total group revenue for 2024 was RMB 6,255,684,000, compared to RMB 5,679,073,000 in 2023, marking an increase of around 10.1%[42][44] Profitability and Losses - Loss attributable to equity holders narrowed to approximately RMB 142,068,000, down from RMB 209,890,000 in 2023[2] - The total comprehensive income for the year ended December 31, 2024, was RMB 23,206 thousand, a significant improvement from a loss of RMB 202,725 thousand in 2023[26] - The annual loss for 2024 was RMB 184,339 thousand, compared to a loss of RMB 269,806 thousand in 2023, indicating a reduction in losses by approximately 31.7%[26] - The group reported a loss attributable to equity holders of approximately RMB 142,068,000 for the year ended December 31, 2024, compared to a loss of RMB 209,890,000 in the same period of 2023, resulting in a net loss margin of about 2.3%[125] - Basic loss per share for 2024 was RMB 4.01, compared to RMB 6.07 in 2023, indicating a reduction in loss per share[106] Cash Flow and Financial Position - Net cash inflow from operating activities was approximately RMB 933,530,000, compared to RMB 653,319,000 in 2023[4] - Operating cash flow for the year ended December 31, 2024, was RMB 951,584 thousand, an increase of 41% from RMB 675,222 thousand in 2023[32] - Cash used in investing activities totaled RMB 1,073,932 thousand, a decrease of 17% from RMB 1,304,553 thousand in 2023[32] - Cash flow from financing activities resulted in a net cash outflow of RMB 1,291,276 thousand, compared to a net inflow of RMB 1,670,991 thousand in 2023[32] - The company's cash and cash equivalents decreased by RMB 1,431,678 thousand, ending the year at RMB 1,529,682 thousand, down from RMB 2,963,723 thousand at the beginning of the year[32] - The total cash and bank deposits recorded by the group were RMB 4,175,154,000 as of December 31, 2024, down from RMB 5,692,651,000 in 2023[134] Investment and Assets - The investment business reported a significant loss of approximately RMB 48.53 million, an increase of 1851% year-on-year, primarily due to fair value losses on investment properties[18] - The total assets decreased from RMB 14.139 billion to RMB 13.781 billion, while total liabilities increased from RMB 5.437 billion to RMB 5.652 billion[20][22] - The fair value of investment properties as of December 31, 2024, is RMB 2,164,691,000, up from RMB 1,726,750,000 in 2023, reflecting a growth of 25.4%[65] - The total net book value of property, plant, and equipment as of February 28, 2024, is RMB 1,919,498,000, an increase from RMB 1,376,694,000 as of February 28, 2023, representing a growth of approximately 39.4%[57] Research and Development - Research and development costs for 2024 amounted to RMB 1,514,433 thousand, an increase of 5.2% from RMB 1,439,671 thousand in 2023[13] - The company plans to fully transform into an enterprise management AI company by 2025, leveraging its powerful AI platform to enhance productivity for global customers[149] Strategic Focus and Market Presence - The company aims to deepen its global market presence, focusing on opportunities for Chinese enterprises going abroad[9] - The strategic focus includes "AI-first, subscription-first, and globalization" to drive digital transformation and international development[5] - Kingdee expanded its strategic ecosystem by deepening collaborations with major AI model providers and state-owned enterprises, resulting in over 200 digital products and 19 joint industry solutions[16] Shareholder Actions and Governance - The company did not recommend any dividend for the year ending December 31, 2024, consistent with the previous year[104] - The board of directors has not complied with the corporate governance code regarding the separation of the roles of chairman and CEO[160] - The audit committee consists of two independent non-executive directors and one non-executive director, ensuring oversight of financial reporting and risk management[163] - PwC has been appointed as the external auditor for the year 2024, with no changes in auditors over the past three years[164] Employee and Social Responsibility - The group has a total of 12,149 employees, focusing on customer-centric and professional innovation, while providing various training programs to enhance skills and leadership[146] - The company engaged in various public welfare activities, including poverty alleviation education and environmental initiatives[148] - The company organized blood donation events and environmental walks in multiple cities to promote social responsibility[148]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is undergoing a significant cloud transformation, which is expected to drive revenue growth and lead to a gradual narrowing of losses, with a forecast to achieve breakeven by 2025 [3][6] - The integration of AI capabilities into ERP systems is a key focus, with the launch of the DeepSeek model enhancing the company's SaaS applications [4][45] - The company has a strong competitive advantage in the SME market, with high renewal rates and significant growth in large enterprise cloud revenue [5][6] Summary by Sections 1. Cloud Transformation and Revenue Growth - The company has transitioned from traditional ERP to cloud services, with revenue increasing from 1.586 billion in 2015 to 5.679 billion in 2023, reflecting a CAGR of 17.29% [3][24] - Losses peaked at 360 million in 2020 due to increased R&D and the cessation of certain ERP product sales, but narrowed to 143 million in 2023, with expectations of breakeven by 2025 [3][25] 2. AI Integration in ERP - The company has been implementing AI strategies since 2017, with significant advancements in financial and HR management through partnerships and the development of large-scale AI models [4][46] - The launch of the "Cang Qiong GPT" model in 2023 represents a major step in enhancing the company's AI capabilities within its ERP offerings [4][46] 3. Competitive Positioning - The company has demonstrated a strong competitive edge in the SME market, achieving a cloud revenue of 1.642 billion in the first half of 2024, with renewal rates of 95% for SMEs and 92% for small enterprises [5][6] - In the large enterprise segment, cloud revenue reached 546 million in the first half of 2024, marking a year-on-year growth of 38.9% [5][6] 4. Financial Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 6.484 billion, 7.561 billion, and 8.860 billion respectively, with net profits expected to turn positive by 2025 [6][10] - The company's subscription ARR reached 3.15 billion in the first half of 2024, indicating strong growth potential [5][38]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is undergoing a significant cloud transformation, which is expected to drive revenue growth and lead to a gradual narrowing of losses, with a forecast to achieve breakeven by 2025 [3][6] - The integration of AI capabilities into ERP systems is positioned to enhance the company's competitive edge and facilitate intelligent transformation [4][5] Summary by Sections 1. Business Transformation and Growth - The company has transitioned from traditional ERP to cloud services, with revenue increasing from 1.586 billion yuan in 2015 to 5.679 billion yuan in 2023, reflecting a CAGR of 17.29% [3][24] - The cloud service revenue accounted for 83.25% of total revenue in the first half of 2024, indicating a rapid shift from traditional ERP services [26][29] - The company expects to narrow its losses to 0.78 billion yuan in 2024 and achieve a net profit of 1.97 billion yuan in 2025 [6][10] 2. AI Integration and Market Position - The company has integrated AI capabilities into its ERP offerings, launching the "DeepSeek" model to enhance its SaaS applications [4][45] - The AI-driven products are expected to optimize processes in financial and human resource management, improving efficiency and decision-making [45][46] - The ERP software market in China is projected to grow from 385 billion yuan in 2021 to 682 billion yuan by 2027, with a CAGR of approximately 11% [50] 3. Financial Performance and Projections - The company forecasts revenues of 6.484 billion yuan, 7.561 billion yuan, and 8.860 billion yuan for 2024, 2025, and 2026 respectively, with a return to profitability expected in 2025 [6][10] - The subscription ARR for cloud services reached 3.15 billion yuan in the first half of 2024, with a significant growth trajectory [38][40] - The company's gross margin is expected to recover as operational efficiencies improve, following a period of high R&D and sales expenses [34][36]

Key Points Summary of Kingdee International Conference Call Company Overview - **Company**: Kingdee International - **Industry**: Enterprise Resource Planning (ERP) and AI Applications Core Insights and Arguments - **AI Integration in ERP**: Kingdee has made significant advancements in AI applications within its ERP systems, with strong demand from downstream customers exceeding market expectations. A recent AI application launch event in Guangzhou attracted over 1,000 attendees, indicating a strong interest from business owners in integrating AI into ERP software for cost reduction and efficiency improvement [3][5]. - **Deepening AI Applications**: Starting in the second half of 2025, AI applications in ERP systems will transition from peripheral systems (like financial analysis and contract review) to core areas such as production and financial management, enhancing operational efficiency [3][4]. - **New AI Product Launches**: Kingdee has introduced eight new AI products, including an AI application platform, financial analysis tools, contract review, and HR recruitment process matching. These products aim to assist decision-making and optimize processes, thereby increasing Average Revenue Per User (ARPU) and user engagement [3][7]. - **General Models Empowering ERP**: Open-source general models like DeepSeek have lowered the barriers for AI applications, allowing Kingdee to conduct industry-specific training to bridge gaps in ERP systems and achieve more precise decision-making [3][10]. - **Industry-Specific Models**: Embedding industry-specific knowledge into vertical models is expected to address core business issues with higher precision, with training anticipated to be completed by the second half of 2025 [3][10]. - **Financial Resilience and Business Model Transformation**: Kingdee is projected to achieve a revenue growth of 10%-15% in 2025, with a recovery in operating cash flow and continuous growth in contract liabilities, indicating a significant transformation in its business model and potential for valuation recovery [3][12]. - **Valuation Recovery Potential**: Historical PS median and SAP's cloud transformation performance suggest that Kingdee's current valuation has substantial upside potential, driven by AI applications and fundamental turning points [3][14]. Additional Important Insights - **Market Response to AI Demand**: The market's response to AI integration in ERP systems has been robust, with significant interest from enterprises in optimizing business processes through advanced AI technologies [5]. - **Digitalization as a Precondition**: Digitalization is essential for advancing AI in ERP, as it enables effective data collection and utilization for intelligent decision-making and automation [6]. - **Challenges in Professional Applications**: While general models have leveled the playing field, their ability to support deep and widespread applications in specialized fields remains to be validated over time [8]. - **Future Growth Prospects**: Kingdee's future growth is promising, with a focus on AI applications expected to drive significant improvements in product value and market share, particularly in the context of domestic substitution [11][19]. - **Key Upcoming Events**: Two critical events in 2025 to monitor Kingdee's AI application progress include the May conference for new product features and the completion of training for the industry-specific model in June [21]. This summary encapsulates the key points from the conference call, highlighting Kingdee International's strategic focus on AI integration within ERP systems, its product innovations, and the anticipated financial performance and valuation recovery.

金蝶國際軟件集團有限公司(「本公司」)董事會(「董事會」)宣佈，本公司將於二零二五年 三月十七日（星期一）上午十時在中國廣東省深圳市南山區高新科技園南區科技南十二路 二號金蝶軟件園舉行董事會會議，藉以(其中包括)審議並批准本公司及其附屬公司截至二 零二四年十二月三十一日止的全年業績及公告及末期股息分配的建議(如有)。 承董事會命 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不會就本公佈全部或任何部分內容而產生 或因倚賴該等內容而引致之任何損失承擔任何責任。 KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 金蝶國際軟件集團有限公司 ( 於開曼群島註冊成立的有限公司 ) （股份代號：268） 董事會召開日期 中華人民共和國深圳，二零二五年三月三日 於本公佈刊發時，董事會成員包括執行董事徐少春先生（董事會主席及首席執行官）及林 波先生（首席财务官）；非執行董事董明珠女士及 Gary Clark Biddle 先生；及獨立非執行 董事周俊祥先生，Katherine Rong Xin ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 金蝶國際軟件集團有限公司 呈交日期： 2025年2月24日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | 00268 | 說明 | 普通股 | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | 庫存股份變動 | 每股發行/出售價 (註4) | | ...

Investment Rating - The report maintains a "Buy" rating for Kingdee International (0268.HK) [5] Core Views - The company is expected to achieve a revenue growth of 14% in 2024, reaching 6.45 billion RMB, with specific segments like Cangqiong and Xinghan projected to maintain over 40% growth [1] - Operating cash flow is anticipated to exceed 900 million RMB in 2024, with a narrowing loss forecasted to 100 million RMB, indicating a path towards breakeven in 2025 [1] - The company is focusing on subscription-first and AI-first strategies, benefiting from the domestic substitution trend and rapid order growth in its cloud services [5] Summary by Sections Revenue and Growth - The overall revenue for 2024 is projected at 6.45 billion RMB, with Cangqiong and Xinghan expected to grow at over 40% [1] - The company has signed over 250 clients as part of its strategy to replace foreign vendors like SAP and Oracle, with a net renewal rate of 97% for Cangqiong and Xinghan as of Q3 2024 [2] Market Position - Kingdee has maintained its leading position in the mid-sized enterprise market, serving over 42,000 clients and holding the top market share for four consecutive years [3] - The launch of the new flagship version of Kingdee Cloud Xingkong in November 2024 is expected to enhance product offerings and profitability [3] AI Integration - The company has integrated DeepSeek into its SaaS applications, aiming to provide efficient and cost-effective solutions, including private deployment options for clients [4] - The introduction of the Cangqiong APP as an AI management assistant is expected to drive significant revenue growth in AI-related services, projected to reach tens of millions in 2024 [4] Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are set at 6.45 billion, 7.47 billion, and 8.63 billion RMB respectively, with a gradual improvement in profitability expected [6] - The company anticipates a return to profitability with a net profit of 175 million RMB in 2025 and 385 million RMB in 2026 [6]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並表明不會就本公告全部或任何部分內容所產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 金蝶國際軟件集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：268） 終止二零一五年股份獎勵計劃 及 採納二零二五年股份獎勵計劃 鑒於二零一五年股份獎勵計劃將於二零二五年十二月期滿，為繼續不時向獲選參與 者授予獎勵股份以示鼓勵，董事會欣然宣佈，其已於二零二五年一月二十一日批准 採納二零二五年股份獎勵計劃，以即時取代及終止二零一五年股份獎勵計劃。 二零二五年股份獎勵計劃將僅由現有股份撥付，及須遵守上市規則第 17.12 條適用的 披露規定。 終止二零一五年股份獎勵計劃及採納二零二五年股份獎勵計劃 董事會欣然宣佈，其已於二零二五年一月二十一日批准採納二零二五年股份獎勵計劃， 以即時取代及終止二零一五年股份獎勵計劃。二零一五年股份獎勵計劃不再授予任何新 的獎勵股份。二零一五年股份獎勵計劃的條款在所有其 ...