[Table_Page] 公告点评|软件与服务 证券研究报告 [【Table_T广itle] 发计算机 &海外】金蝶国际 [公Tab司le_I评nves级t] 买入 当前价格 7.28港元 （00268.HK） 合理价值 15.14港元 前次评级 买入 从现金流再看金蝶国际投资价值 报告日期 2024-04-22 [ 核Tabl 心e_Su 观mm 点ary] ： [相Tab对le_P市icQ场uote表] 现  大中型企业产品续费率有一定季节性特点，而小微企业产品全年续费率 10% 0% 比较平稳。24Q1苍穹星瀚续费率环比年初下降约8pct，星空续费率环 04/23 06/23 08/23 10/23 12/23 02/24 04/24 -11% 比年初下降约2pct。对大中型企业而言，Q1一般是采购淡季，因此续 -21% 费率环比年初下降属正常现象。23年数据显示，苍穹星瀚及星空23年 -32% -42% 全年续费率相较23Q1有一定修复，关注24年后续变化。小微企业产 金蝶国际 恒生指数 品星辰及精斗云24Q1续费率环比年初基本持平，季节性不明显，这实 际也与广大小微企业采购特征一致。 [分Ta析b ...

Financial Performance - Revenue for 2023 reached RMB 5,679,073 thousand, an increase from RMB 4,865,769 thousand in 2022[6] - Net loss attributable to owners of the Company in 2023 was RMB 209,890 thousand, improving from a loss of RMB 389,158 thousand in 2022[6] - Basic loss per share in 2023 was RMB (6.07) cents, compared to RMB (11.31) cents in 2022[6] - Revenue in 2023 reached RMB 5.68 billion, a year-on-year growth of 16.7%[14] - Net loss attributable to shareholders narrowed by 46.1% year-on-year to RMB 210 million in 2023[14] - Operating cash flow increased by 74.5% year-on-year to RMB 650 million in 2023[14] - Kingdee's total revenue for 2023 reached approximately RMB 5,679,073,000, representing a 16.7% year-on-year growth compared to 2022[21] - Net cash flow from operating activities increased by 74.5% year-on-year to approximately RMB 653,319,000[21] - The company's loss attributable to owners narrowed to approximately RMB 209,890,000, compared to a loss of RMB 389,158,000 in 2022[21] - Total revenue for the year ended 31 December 2023 was RMB5,679,073,000, representing a yoy growth of 16.7% (2022: RMB4,865,769,000)[35] - Gross profit increased by 21.6% yoy to RMB3,643,989,000 (2022: RMB2,997,633,000), with gross profit margin rising to 64.2% (2022: 61.6%)[38] - Loss attributable to owners of the Company decreased to RMB209,890,000, with a net loss margin of 3.7% and basic losses per share of RMB6.07 cents[44] - Total assets increased to RMB 14,139,197,000 in 2023 from RMB 11,731,437,000 in 2022, reflecting a growth of 20.5%[190] - Revenue from contracts with customers rose to RMB 5,679,073,000 in 2023, up 16.7% from RMB 4,865,769,000 in 2022[195] - Gross profit improved to RMB 3,643,989,000 in 2023, a 21.6% increase compared to RMB 2,997,633,000 in 2022[195] - Operating loss narrowed to RMB 419,947,000 in 2023 from RMB 587,344,000 in 2022, indicating a 28.5% improvement[195] - Research and development costs increased to RMB 1,439,671,000 in 2023, up 11.1% from RMB 1,295,476,000 in 2022[195] - Net assets grew to RMB 8,702,152,000 in 2023, a 17.5% increase from RMB 7,407,583,000 in 2022[192] - Total liabilities rose to RMB 5,437,045,000 in 2023, up 25.8% from RMB 4,323,854,000 in 2022[192] - Loss for the year decreased to RMB 269,806,000 in 2023, a 40.4% improvement from RMB 452,404,000 in 2022[195] - Share of profits of associates increased to RMB 28,506,000 in 2023, up 121.8% from RMB 12,850,000 in 2022[195] - Basic loss per share improved to RMB 6.07 cents in 2023 from RMB 11.31 cents in 2022, reflecting a 46.3% reduction[195] - Annual loss for 2023 decreased to RMB 269.8 million from RMB 452.4 million in 2022, showing a reduction of 40.4%[196] - Total comprehensive loss for 2023 was RMB 202.7 million, compared to RMB 366.5 million in 2022, a decrease of 44.7%[196] - Other comprehensive income for 2023 was RMB 67.1 million, down from RMB 85.9 million in 2022, a decrease of 21.9%[196] - Total equity increased from RMB 7,407,583 thousand in 2022 to RMB 8,702,152 thousand in 2023, reflecting a growth of 17.5%[199] - Net cash inflow from operating activities rose to RMB 653,319 thousand in 2023, up from RMB 374,437 thousand in 2022, a 74.5% increase[200] - Net cash outflow from investing activities increased to RMB 1,304,553 thousand in 2023, compared to RMB 787,031 thousand in 2022, a 65.8% rise[200] - Net cash inflow from financing activities surged to RMB 1,670,991 thousand in 2023, a significant increase from RMB 300,525 thousand in 2022, up 456.1%[200] - Cash and cash equivalents at the end of 2023 stood at RMB 2,963,723 thousand, a 52.6% increase from RMB 1,942,735 thousand at the end of 2022[200] - The company issued new shares worth RMB 1,411,847 thousand in 2023, compared to no issuance in 2022[200] - Retained earnings decreased to RMB 1,020,406 thousand in 2023 from RMB 1,230,296 thousand in 2022, a 17.1% decline[199] - Non-controlling interests dropped to RMB 103,096 thousand in 2023 from RMB 142,230 thousand in 2022, a 27.5% decrease[199] - The company's total comprehensive loss for 2023 was RMB 202,725 thousand, compared to a loss of RMB 269,806 thousand in 2022, a 24.9% improvement[199] - Proceeds from disposal of financial assets at fair value through profit or loss were RMB 61,142 thousand in 2023, down from RMB 829,459 thousand in 2022, a 92.6% decrease[200] Cloud Services and SaaS Performance - Cloud Services revenue grew by 21.3% year-on-year, accounting for 79.3% of total revenue in 2023[14] - Annual Recurring Revenue (ARR) from cloud subscription services increased by 33.1% year-on-year to RMB 2.86 billion in 2023[14] - Cloud subscription net dollar retention rates were 105.3% for Kingdee Cloud Cosmic and Constellation, 97.2% for Kingdee Cloud Galaxy, and 90.8% for Kingdee Cloud Stellar in 2023[14] - Cloud services revenue grew by 21.3% year-on-year, accounting for 79.3% of the Group's total revenue[21] - Annual Recurring Revenue (ARR) for Kingdee Cloud subscription services reached approximately RMB 2.86 billion, a 33.1% year-on-year increase[21] - Contract liabilities related to cloud subscription services grew by 29.6% year-on-year[21] - Cloud services revenue increased to RMB 4,504,983,000, up 21.3% YoY, accounting for 79.3% of the Group's revenue[23] - Revenue from the Cloud Services increased by 21.3% yoy to RMB4,504,983,000 (2022: RMB3,714,093,000)[35] - Kingdee Cloud Cosmic and Kingdee Cloud Constellation recorded revenue of approximately RMB981 million, representing a year-over-year (yoy) growth of approximately 40.9%, with subscription ARR increasing by approximately 48.7% yoy and a Net Dollar Retention (NDR) rate of 105.3%[26] - Kingdee Cloud Galaxy achieved revenue of approximately RMB1,952 million, representing a yoy growth of approximately 16.2%, with subscription ARR increasing by approximately 29.2% yoy and an NDR of 97.2%[27] - Kingdee Cloud Stellar revenue increased by approximately 108.6% yoy, with an NDR of 90.8%[29] - SME finance cloud realized revenue of approximately RMB1,080 million, representing a yoy increase of approximately 25.4%, with subscription ARR increasing by approximately 45.6% yoy[29] - Kingdee Cloud Galaxy signed more than 1,400 national and provincial specialized and new enterprises, with a market share of 43% among national specialized and new "small giants"[27] Market Position and Awards - The company has been ranked No.1 by IDC in China's growing enterprise application software market share for 19 consecutive years[1] - Kingdee was selected as one of the S&P Global "Sustainability Yearbook (China Edition) 2023", with ESG score ranking first among software enterprises[1] - The company won the IDC 2023 Global Customer Satisfaction Award for Financial SaaS[1] - Kingdee is the only Chinese vendor ranked among the top 10 Gartner's high-productivity aPaaS platform vendors for three consecutive years[1] - The company has been ranked No.1 by IDC in 2023 H1 ERM SaaS and Financial SaaS market[1] - Kingdee won the first prize of the "China Standard Innovation Contribution Award", the highest national honor in China's standardization field[1] - Kingdee maintained the number one position in Gartner's high-productivity aPaaS market for three consecutive years and entered the top ten global aPaaS market share[16] - Kingdee ranked first in IDC SaaS market share and Gartner's high-productivity aPaaS market for three consecutive years[19] - The company was the only Chinese firm to win IDC's 2023 Financial SaaS Global Customer Satisfaction Award[19] - Kingdee's ESG score was the highest among Chinese software companies, earning it a place in the S&P Global Sustainability Yearbook (China Edition) 2023[19] - Kingdee maintained the No.1 market share in China's SaaS ERM and Financial cloud services for IDC 2023 H1[22] - Kingdee ranked among the top ten global high-productivity aPaaS platforms by Gartner for three consecutive years[22] - Kingdee achieved 19 consecutive years as the No.1 market share leader in China's growing enterprise application software market[22] - Kingdee was selected for the S&P Global Sustainable Yearbook (China Edition) 2023, achieving the highest ESG score among Chinese software companies[70] Strategic Initiatives and Partnerships - Kingdee launched the Cosmic GPT platform and introduced China's first financial vertical LLM, accelerating financial management intelligence[15] - Over 50 Fortune 500 companies and SOEs formed new partnerships with Kingdee in 2023, including Sinochem, China National Building Material Group, and Mercedes-Benz China[15] - Kingdee launched the enterprise-level large language model (LLM) platform, Kingdee Clouds Cosmic GPT, integrating with Baidu and Microsoft's LLMs[23] - Kingdee introduced China's first financial model, leveraging 30 years of financial knowledge and serving over 7.4 million customers[23] - Kingdee Clouds Constellation replaced foreign ERP products in the Weichai Lovol project, improving 21 key business indicators and integrating 18 peripheral systems[23] - Kingdee's Constellation HR Cloud helped large enterprises like Huawei and China Construction Bank achieve digital HR transformation[24] - Kingdee's global platform capabilities (language, deployment, privacy) were validated by international enterprises such as China Merchants Group and Hisense[25] - Kingdee has helped 221 enterprises complete localization substitution as of the reporting period[26] - Kingdee Cloud Stellar Ultra Edition was released, providing integrated production, supply, and marketing solutions to small and micro manufacturing and trade enterprises[28] - The SME partner ecosystem expanded, with the number of marketing and service partners exceeding 1,900[28] - Kingdee entered into new strategic cooperation with cloud service vendors such as CTYun, Baidu, and Microsoft, and deepened cooperation with partners like KPMG, iSoftStone, Ernst & Young, Deloitte, and HAND Information[30] - Nearly 200 ISV partners have built digital products based on Cosmic, forming joint industry solutions covering 19 major industries[30] - Kingdee's 2024 strategy focuses on "Subscription priority, AI priority" to enhance digital management value for Chinese enterprises[70] - The Group continues to deepen cloud transformation and support enterprises in building new-quality productivity[70] Corporate Governance and Leadership - Xu Shao Chun, aged 60, is the founder, chairman, and CEO of the Group, with a Master of Accounting and an EMBA degree[71] - Xu Shao Chun has been awarded numerous accolades, including the "World Indigenous Entrepreneur Award of the United Nations" and "Shenzhen Science and Technology Innovation Mayor's Award"[71] - Lin Bo, aged 50, has been an executive Director since 2016 and currently serves as the CFO of the Company[71] - Lin Bo holds a bachelor's degree in Computer Science from Xiamen University and has extensive experience in strategic planning, marketing, and financial management[71] - Lin Bo was awarded the "Top 10 CFO in China of the year 2018"[71] - Ms. DONG Ming Zhu, aged 69, has been a non-executive Director since 2012 and is currently the chairman and President of Gree Electric Appliances, Inc. of Zhuhai (stock code: SZ000651)[72] - Ms. DONG has been elected as a member of the 10th, 11th, 12th, 13th, and 14th National People's Congress and holds various prestigious positions including United Nations Ambassador for Sustainable Urban Development[72] - Ms. DONG has been awarded numerous honors including "National Model Worker", "National May 1 Labor Medal", and "China Outstanding Individual for Quality (National Individual Quality Award)"[72] - Gary Clark BIDDLE, aged 72, has been an independent non-executive Director since 2004 and was re-designated as a non-executive Director on 31 December 2021[72] - Mr. BIDDLE is a Professor of Financial Accounting at the University of Melbourne and a visiting professor at Columbia University, the University of Hong Kong, and London Business School[72] - Mr. BIDDLE earned his MBA and PhD degrees at the University of Chicago and has served as a professor at several prestigious universities including the University of Chicago and the University of Washington[72] - Mr. BIDDLE is a member of the American Institute of Certified Public Accountants (AICPA), Australian Institute of Company Directors, CPA Australia, and Hong Kong Institute of Certified Public Accountants (HKICPA)[72] - Mr. BIDDLE is a leading expert in financial and management accounting, value creation, economic forecasting, corporate governance, and performance metrics[72] - Mr. BIDDLE is currently an independent non-executive director of Shui On Land Limited (stock code: 272)[72] - ZHOU Jun Xiang has been an independent non-executive Director since 31 December 2021, holding a bachelor's degree in computer science and a master's degree in accounting, and is currently a Partner at Beijing Dahua International Accounting Firm[73] - Katherine Rong XIN has been an independent non-executive Director since 31 December 2021, holding a master's degree in applied linguistics, an MBA, and a doctorate in business administration, and is currently a professor at the China Europe International Business School[73] - ZHOU Jun Xiang is a member of the Expert Group and Review Committee of Shenzhen Municipal Government Guidance Fund, Shenzhen Municipal Government Stable Fund, and Shenzhen Angel FOF[73] - Katherine Rong XIN was awarded the Chinese Most Cited Researchers by Elsevier for seven consecutive years from 2014 to 2020[73] - ZHOU Jun Xiang is currently an independent director of Suntak Technology Co., Ltd., Shenzhen Institute of Building Research Co., Ltd., and Shen Zhen Kaifa Technology Co., Ltd.[73] - Katherine Rong XIN is currently an independent director of Contemporary Amperex Technology Co., Ltd. and an independent non-executive director of Fosun Tourism Group, EuroEyes International Eye Clinic Limited, and Landsea Green Life Service Company Limited[73] - BO Lian Ming, aged 60, has been an independent non-executive Director since 30 December 2022, with extensive experience in management and corporate leadership[74] - SIU Man Ho, Simon, aged 50, joined the Company in 2019, is a practicing solicitor of the High Court of Hong Kong, and has expertise in corporate finance, capital markets, and mergers and acquisitions[74] - ZHANG Yong, aged 49, is the president of Kingdee International and Kingdee China, with significant experience in marketing and team management since joining the Company in 1995[75] - The Board comprises 7 Directors, including 2 executive Directors, 2 non-executive Directors, and 3 independent non-executive Directors, with 2 female members out of 7[150] - The Board's age distribution includes 2 members aged 50-59, 4 aged 60-69, and 1 aged 70-79[150] - The length of service for Directors includes 3 with less than 5 years, 1 with 6-10 years, and 3 with over 10 years of service[150] - The Nomination Policy was revised on 15 March 2023 to ensure a balance of skills, experience, and diversity in the Board[151][154] - The Nomination Committee is responsible for identifying qualified candidates for Board membership and making recommendations to the Board[152] - The Nomination Committee reviews the Board's structure, size, composition, and diversity (including gender and ethnicity) at least annually[153][155] - The company is committed to increasing the proportion of female Board members over time as suitable candidates are identified[149] - The company will continue to apply the principle of merit-based appointments while considering the benefits of diversity on the Board[149] - The Nomination Committee held two meetings during the reporting period to review the Board's structure, size, composition, and diversity, as well as the time commitment required from Directors, especially independent non-executive Directors[157] - The Nomination Committee's criteria for selecting and recommending candidates for directorship include considerations of qualifications, skills, and alignment with the company's goals and development strategy[157

证券研究报告 | 2024年03月24日 金蝶国际（00268.HK） 买入 2023 年报点评：ARR 同增 33%，盈利与现金流改善明显 核心观点 公司研究·财报点评 公司2023年收入增长16.7%，订阅ARR同比增长约33.1%。公司2023年年 互联网·互联网Ⅱ 度实现收入56.79亿元，同比增长16.7%，全年增速保持平稳，其中云服务 证券分析师：张伦可 联系人：刘子谭 收入45.05亿元（占比79.3%），同比增长21.3%。云订阅服务年经常性收 0755-81982651 zhanglunke@guosen.com.cnliuzitan@guosen.com.cn 入（ARR）为28.6亿元，同比增长33.1%；ERP收入11.74亿元，同比增长 S0980521120004 1.9%。来自经营活动产生的现金流净额6.53亿元（同比增长74.5%）。归属 基础数据 母公司股东净亏损2.10亿元，同比收窄46.1%。 投资评级 买入(上调) 合理估值 12.00 - 14.00港元 大企业云订阅ARR增长49%，续费率达105.3%。2023年，公司企业云服务、 收盘价 9.60港元 小微财务云 ...

港股公司报告 | 公司点评 金蝶国际（00268） 证券研究报告 2024年03月22日 投资评级 订阅优先、AI 优先，V 型反转逐渐明晰 行业 资讯科技业/软件服务 6个月评级 买入（维持评级） 当前价格 9.4港元 事件： 目标价格 港元 金蝶国际发布年报，23年实现收入56.79亿元，yoy+16.7%。公司23年归 母净亏损 2.10 亿元，同比减亏 1.79 亿元；经营活动产生的现金流量净额 基本数据 为6.53亿元，同比增长74.5%。合同负债达31.77亿，yoy+20.74%。 港股总股本(百万股) 3,593.47 港股总市值(百万港元) 33,778.62 1、订阅转型基本达成，公司目标未来三年订阅ARR CAGR 30% 每股净资产(港元) 2.61 公司 23 年实现收入 56.79 亿元，yoy+16.7%。其中云服务业务收入 资产负债率(%) 38.45 yoy+21.3%，占公司收入79.3%。订阅ARR约为28.6亿，yoy+33.1%。分产 一 年内最高/最低(港元) 14.74/7.22 品看： 1）苍穹和星瀚收入约9.81亿，yoy+40.9%。对应ARR yoy+48 ...

Investment Rating - The report maintains a BUY rating for Kingdee with a target price of HK$15.50, reflecting a potential upside of 66.3% from the current price of HK$9.32 [4]. Core Insights - Kingdee reported a revenue of RMB5.7 billion for 2023, representing a 17% year-over-year growth, and a net loss of RMB210 million, which is a significant reduction from a loss of RMB389 million in 2022 [2][12]. - The company is well-positioned to benefit from the domestic substitution trend, supported by strong product capabilities and an enhanced partner ecosystem [2]. - The cloud segment contributed 79% of total revenue, with cloud revenue growing 21% year-over-year to RMB4.5 billion [2]. Financial Performance - Revenue growth is projected to continue with a compound annual growth rate (CAGR) of 15-20% from 2023 to 2026 [2]. - The annual recurring revenue (ARR) grew by 34% year-over-year, indicating a solid SaaS growth outlook for 2024 [2]. - Kingdee's core SaaS product, Galaxy, achieved revenue of RMB2.0 billion, up 16.3% year-over-year, with a stable dollar retention rate of 97.2% [2]. Business Segments - The Galaxy product line recorded over 39,000 customers by the end of 2023, with a net addition of over 8,000 customers year-over-year [2]. - The Cosmic & Constellation (C&C) segment saw a revenue increase of 40.9% year-over-year, and management expects revenue growth to reaccelerate in 2024 due to strong project pipelines [2]. Financial Guidance - Management has guided for a subscription ARR CAGR of 30% from 2023 to 2026 and aims for at least RMB900 million in operating cash flow in 2024, indicating a growth of at least 38% year-over-year [2].

申万宏源研究 上海市南京东路99号 | +86 21 2329 7818 www.swsresearch.com 简单金融 成就梦想 计算机 | 公司研究 经营性现金流高增，AI 引领抢滩大型企业 2024年3月20日 金蝶国际 (0268.HK) 买入 公司发布2023年全年业绩，符合市场预期。据公司报告，公司2023全年实现收入56.79亿元， yoy +16.7%；归母净亏损2.10亿元，亏损同比缩窄约46%。业绩符合市场预期。 维持 经营性净现金流高增，云转型成果显著。据公司公告，公司报告期内营运活动产生的净现金流入约 6.53亿元，yoy+74.5%，展现高经营质量。云服务业务实现收入45.05亿元，yoy+21.3%，占比 集团收入79.3%。订阅服务年经常性收入（ARR）约为28.6亿元，yoy+33.1%，云订阅服务相关 市场数据：2024年3月19日 合同负债实现同比增29.6%。 收盘价（港币） 9.32 恒生中国企业指数 6146.99 业绩目标彰显长期发展信心。据公司业绩交流会，公司在2024-2026年坚持订阅优先、AI优先战 52周最高/最低价 (港币) 14.74/7.22 略， ...

Investment Rating - The report maintains a "Buy" rating for Kingdee International with a target price of HKD 18.21 per share [1] Core Views - Kingdee's subscription-based cloud service revenue demonstrates strong resilience, with a 16.7% YoY growth in 2023, indicating a performance inflection point [1][6] - The company's gross margin increased by 2.6 PCT in 2023, while sales, management, and R&D expense ratios decreased by 0.8 PCT, 1.8 PCT, and 1.2 PCT respectively, signaling a successful subscription model transition [1][6] - Contract liabilities related to cloud subscriptions grew by 29.6% YoY in 2023, indicating strong future revenue growth potential [1][6] - Operating cash flow increased by 75% YoY in 2023, reaching RMB 653 million, suggesting a bottoming out and potential for further release [1][6] Financial Performance - 2023 revenue reached RMB 5.679 billion, a 16.7% YoY increase, with a net loss attributable to shareholders narrowing to RMB 210 million, a 46% reduction from the previous year [1][2] - Cloud business revenue grew 21.3% YoY to RMB 4.505 billion, accounting for 79.3% of total revenue, with ARR increasing by 33.1% to RMB 2.86 billion [3] - Gross margin improved to 64.2% in 2023, up from 61.6% in 2022, driven by the increasing proportion of subscription revenue [3] - R&D investment reached RMB 1.51 billion, a 3.5% YoY increase, with a capitalization rate of 31.7% [3] Business Segments - The enterprise resource management (ERP) and other businesses generated RMB 1.174 billion in revenue, a 1.9% YoY increase [3] - The cloud business for large enterprises (including the Cangqiong PaaS platform and Xinghan SaaS) achieved RMB 981 million in revenue, a 40.9% YoY growth, with a renewal rate of 105.3% [3][10] - The Xingkong cloud business generated RMB 1.952 billion in revenue, a 16.2% YoY increase, with a 97.2% renewal rate and 39,000 customers [3][11] Future Projections - The report forecasts 2024, 2025, and 2026 revenues of RMB 6.595 billion, RMB 7.671 billion, and RMB 9.030 billion respectively, with YoY growth rates of 16.1%, 16.3%, and 17.7% [13] - The company is expected to achieve positive net profits starting from 2025, with RMB 303 million and RMB 466 million in 2025 and 2026 respectively [13] Valuation - The report applies a 9x PS valuation multiple for 2024, based on comparable company valuations, resulting in a target price of HKD 18.21 per share [13]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company achieved total revenue of 5.679 billion RMB in 2023, a year-on-year increase of 16.7%. Traditional ERP business revenue grew by 2% to 1.174 billion RMB, while cloud service revenue reached 4.505 billion RMB, up 21% year-on-year, accounting for 79.3% of total revenue [2] - The gross profit was 3.644 billion RMB, with a gross margin of 64.2%, an increase of 2.6 percentage points year-on-year, primarily due to the higher proportion of cloud service revenue and reduced cloud infrastructure costs [2] - The company reported a net loss attributable to shareholders of 210 million RMB, narrowing by 46.1% year-on-year [2] - The cloud subscription service model continues to advance, with annual recurring revenue (ARR) from cloud subscriptions increasing by 33.1% to 2.86 billion RMB [2] - The company signed contracts worth 1.4 billion RMB with large enterprises, achieving revenue of 981 million RMB, a 40.9% increase year-on-year [2] - The company plans to expand its international business in regions such as Vietnam, Singapore, and Southeast Asia [2] Summary by Sections Financial Performance - Total revenue for 2023 was 5.679 billion RMB, with a growth rate of 16.7% [3] - The company expects revenue of 6.593 billion RMB in 2024, with a growth rate of 16.1% [3] - GAAP net profit is projected to improve to -89 million RMB in 2024, with a forecasted recovery to 198 million RMB in 2025 [3] Market Position - The company has signed contracts with 1,458 large clients in 2023, including notable names like China National Chemical Corporation and Dongfeng Motor [2] - The company maintains a leading position in the medium-sized market, serving 43% of national-level specialized small giant enterprises [2] Strategic Initiatives - The company's future strategy focuses on a subscription-first and AI-first approach, with plans to launch 10 new AI-related application scenarios in 2024 [2] - The company has introduced an enterprise-level large model capability platform, integrating with major AI models from Baidu and Microsoft [2]

Financial Performance - The company's revenue for the year ended December 31, 2023, increased by approximately 16.7% to about RMB 5,679,073,000, with cloud services revenue growing by about 21.3%, accounting for 79.3% of total revenue[3]. - The net loss attributable to equity holders for the period was approximately RMB 209,890,000, a reduction from RMB 389,158,000 in the previous year, indicating improved operational quality[5]. - The annual recurring revenue (ARR) from cloud subscription services reached approximately RMB 2.86 billion, reflecting a year-on-year growth of 33.1%[5]. - The net cash inflow from operating activities was approximately RMB 653,319,000, representing a year-on-year increase of about 74.5%[5]. - Total revenue from contracts with customers reached RMB 5,679,073 thousand in 2023, a rise of 16.7% compared to RMB 4,865,769 thousand in 2022[27]. - Gross profit improved to RMB 3,643,989 thousand in 2023, up from RMB 2,997,633 thousand in 2022, marking a growth of 21.6%[27]. - The company reported a net loss before tax of RMB 301,126 million, a decrease from a loss of RMB 474,218 million in the prior year, reflecting a reduction of about 36.5%[46][48]. - The total comprehensive loss for the year was RMB 202,725 thousand in 2023, compared to RMB 366,541 thousand in 2022, indicating a reduction in comprehensive loss of 44.6%[29]. Cloud Services - Kingdee's cloud services revenue grew from RMB 3,714,093,000 in the previous year to RMB 4,504,983,000, marking a year-on-year increase of approximately 21.3%[10]. - Kingdee Cloud's revenue from the Cloud services, including Cangqiong and Xinghan, reached approximately RMB 981 million, representing a year-on-year growth of about 40.9%[13]. - The subscription Annual Recurring Revenue (ARR) for Cangqiong and Xinghan increased by approximately 48.7%, with a Net Dollar Retention (NDR) rate of 105.3%[13]. - Kingdee Cloud's Xinghan achieved revenue of approximately RMB 1.952 billion, with a year-on-year growth of about 16.2%[15]. - The subscription ARR for Xinghan grew by approximately 29.2%, with an NDR of 97.2% and a customer base of around 39,000[15]. - Revenue recognized from contract liabilities related to cloud services was RMB 1,773,859,000, an increase of 34.4% from RMB 1,320,693,000 in 2022[53]. Strategic Initiatives - The company launched the enterprise-level large model capability platform, Kingdee Cloud·Cangqiong GPT, which integrates with major models from Baidu and Microsoft, enhancing its offerings for complex business scenarios[11]. - The company aims to build a world-class ecosystem by collaborating with leading international consulting and implementation partners to address modern enterprise management challenges[7]. - Kingdee's cloud subscription service model transformation is a key strategic focus, aiming to redefine delivery models and partner relationships in the cloud era[7]. - The company plans to continue expanding its cloud services and ERP business, focusing on innovation and market penetration strategies[46]. Market Position and Recognition - The company received multiple accolades, including being recognized as the top player in the Chinese market for SaaS ERP and financial cloud services by IDC in 2023[9]. - Kingdee has helped a total of 221 enterprises complete domestic substitution, enhancing its market position[13]. - The company signed contracts with over 1,400 national and provincial specialized enterprises during the reporting period, with a market share of 43% in the national "little giant" category[15]. Financial Health - Total assets increased to RMB 14,139,197 thousand in 2023, up from RMB 11,731,437 thousand in 2022, representing a growth of 20.5%[23]. - Cash and cash equivalents increased significantly to RMB 2,963,723 thousand in 2023 from RMB 1,942,735 thousand in 2022, reflecting a growth of 52.5%[25]. - Total liabilities rose to RMB 5,437,045 thousand in 2023, compared to RMB 4,323,854 thousand in 2022, an increase of 25.8%[25]. - The company's equity increased to RMB 8,702,152 thousand in 2023 from RMB 7,407,583 thousand in 2022, a growth of 17.4%[25]. - The company reported a net financial income of RMB 90,315 thousand in 2023, down from RMB 100,276 thousand in 2022, a decrease of 9.7%[27]. Research and Development - Research and development costs increased to RMB 1,439,671 thousand in 2023, up from RMB 1,295,476 thousand in 2022, representing an increase of 11.1%[27]. - The company plans to continue expanding its cloud services and enhance R&D efforts to drive future growth[96]. Shareholder Information - The company did not recommend the distribution of dividends for the year ended December 31, 2023, consistent with the previous year[110]. - The company issued shares resulting in proceeds of RMB 1,411,847 thousand in 2023, compared to no proceeds in 2022[34]. - The company repurchased a total of 5,571,000 shares for a total consideration of HKD 68,618,000 (approximately RMB 61,138,000) for its employee share award plan[86]. Risk Management - The company faced foreign exchange risk primarily from fluctuations in the exchange rates between RMB and USD, as well as RMB and HKD, which could impact its financial position and operating results[149]. - The company has established a rigorous capital management principle to effectively manage market risks and maintain a solid debt structure[155].

Share Options and Awards - As of June 30, 2023, a total of 529,501,600 share options were granted under the 2005 Scheme, with 322,469,193 options exercised and 205,222,407 options lapsed, leaving 1,810,000 options outstanding[4]. - The 2015 Scheme has a remaining term of approximately 1 year and 8 months, with 7,261,000 share options outstanding as of June 30, 2023, allowing for the potential grant of 228,409,096 additional options[4]. - The exercise price of share options is determined by the Board and cannot be less than the highest of the closing price on the grant date, the average closing price for the five trading days prior, or the nominal value of the shares[5]. - The vesting period for share options is four years, with 25% vesting at the end of each year, and all options granted have been fully vested[7]. - The weighted average closing price prior to the exercise of share options was approximately HK$16.42 for Mr. Lin Bo and HK$13.76 for other employees[7]. - The Share Award Scheme, adopted on December 4, 2015, is valid for 10 years, with approximately 2 years and 4 months remaining as of the report date[8]. - The award shares in the Share Award Scheme are held in trust until vested, with no specified payment required upon acceptance of an award[9]. - The number of award shares available for grant under the Share Award Scheme decreased from 81,235,953 at the beginning of the reporting period to 62,227,753 at the end of the reporting period[12]. - During the half year ended June 30, 2023, the company granted 7,997,000 award shares under the Share Award Scheme[12]. - The maximum number of shares that may be awarded to a selected participant under the Share Award Scheme in any twelve-month period is capped at 1% of the issued share capital, which is currently 104,291,048 shares[11]. - The vesting schedule for the share options is set at four years, with 25% vesting at the end of each year[11]. - The weighted average closing prices before exercise for Mr. Lin Bo and other employees were approximately HKD 16.42 and HKD 13.76, respectively[11]. - No share options were cancelled during the half year ended June 30, 2023[11]. - The remaining term of the Share Award Scheme is approximately two years and four months as of the report date[11]. - The company has not exceeded the 3% limit on the nominal value of shares awarded under the Share Award Scheme, which excludes any vested shares[11]. - The total number of shares vested during the reporting period was 300,000 shares[13]. - The company aims to incentivize and reward contributions from certain employees and directors through the Share Award Scheme adopted on December 4, 2015[11]. Financial Performance - In the first half of 2023, the Group achieved a 21.5% year-over-year growth in cloud services revenue, contributing approximately 79.5% of total revenue[53]. - The Annual Recurring Revenue (ARR) for Kingdee Cloud subscription services reached approximately RMB2.54 billion, marking a 36.3% year-over-year increase[53]. - Total revenue for the six months ended June 30, 2023, was approximately RMB2,565,850,000, representing a 16.8% increase compared to the same period in 2022[53]. - Loss attributable to owners of the Company narrowed to approximately RMB283,535,000, a reduction of about 20.5% year-over-year[53]. - Basic loss per share attributable to owners of the Company was approximately RMB8.23 cents, compared to RMB10.38 cents in the same period of 2022[53]. - Net cash flow from operating activities was an outflow of approximately RMB168,887,000, an improvement from RMB179,869,000 in the prior year[53]. - The Company continues to adhere to the strategy of "Platform + Finance & HR & Tax + Ecosystem" to enhance enterprise service capabilities[53]. - Kingdee aims to become the "most trustworthy enterprise service platform" to support enterprises in achieving high-quality development[53]. Capital Raising and Use of Proceeds - The company completed the placing of 133,280,000 new shares at a price of HK$17.82 per share, raising approximately HK$2,375.1 million in gross proceeds[18]. - The net proceeds from the placing were approximately HK$2,353.0 million, with a net price per placing share of approximately HK$17.65[19]. - The intended use of proceeds from the placing includes maintaining cash flow, enhancing the capital base, and preparing for future investments, particularly in cloud transformation[18]. - The company raised capital to support its cloud transformation through the placing of shares[18]. Corporate Governance - The company complied with all corporate governance code provisions except for the roles of chairman and CEO being held by Mr. Xu Shao Chun[43]. - The company is committed to enhancing corporate governance and internal controls[44]. - All directors confirmed compliance with the code of conduct regarding securities transactions throughout the reporting period[45]. - The company is committed to ongoing improvements in corporate governance and compliance training for its directors and staff[46]. Shareholder Information - As of June 30, 2023, the total number of issued shares was approximately 3,476,328,271[27]. - Xu Shao Chun holds a beneficial ownership of 20,833,683 shares, representing 0.60% of the total issued shares[21]. - Lin Bo has a beneficial ownership of 1,703,265 shares, accounting for 0.05% of the total issued shares[22]. - The total aggregate interests of directors and chief executives in shares and underlying shares amounted to 703,419,807, representing 20.23% of the total issued shares[22]. - Easy Key Holdings Limited holds 682,198,624 shares, representing 19.62% of the issued share capital[35]. - Oriental Tao Limited and Billion Tao Limited hold 386,312,000 shares and 295,886,624 shares, representing 11.11% and 8.51% respectively[35]. - JPMorgan Chase & Co. has a total interest in 27,129,987 shares, accounting for 0.78% of the issued share capital[35]. - The company reported no substantial shareholders with interests that required disclosure under the Securities and Futures Ordinance as of June 30, 2023[33]. Research and Development - Research and development funding amounted to 1,176,850, representing 50.0% of the allocated funds[20]. - The company reported a significant increase in purchases of property, plant, and equipment, totaling RMB 221,205,000 for the first half of 2023, compared to RMB 79,248,000 in the same period of 2022[108]. - Research and development expenses totaled approximately RMB829,188,000, an increase of 4.3% year-over-year, with the R&D capitalization rate rising to 32.7%[66]. Financial Position and Cash Flow - The Group recorded a gross profit of approximately RMB1,588,770,000, a year-over-year increase of approximately 19.4%, with a gross profit margin of approximately 61.9%[66]. - Selling and marketing expenses totaled approximately RMB1,142,317,000, representing an increase of 8.8% year-over-year, and decreased as a percentage of revenue from 47.8% to 44.5%[66]. - Administrative expenses amounted to approximately RMB238,954,000, reflecting a year-over-year increase of 2.1%, with the percentage of administrative expenses to revenue decreasing from 10.7% to 9.3%[66]. - The Group recorded an operating loss of approximately RMB388,191,000, an improvement from a loss of approximately RMB453,567,000 in the same period last year[67]. - The current loss attributable to owners of the Company was approximately RMB283,535,000, with a net loss margin of approximately 11.1%[67]. - The Group's total cash and bank deposits of RMB3,800,840,000 as of June 30, 2023, down from RMB4,296,103,000 as of December 31, 2022[81]. - The Group's borrowings amounted to RMB707,500,000 as of June 30, 2023, compared to RMB470,000,000 as of December 31, 2022[81]. - The Group's gearing ratio was 65.07%, an increase from 58.37% as of December 31, 2022[81]. Market and Customer Insights - Kingdee Cloud Cosmic and Kingdee Cloud Constellation are positioned as leading products for large enterprises, enhancing AI integration and innovation in enterprise management[58]. - Kingdee Cloud Cosmic and Constellation recorded approximately RMB393 million in revenue, an increase of 38.3% year-over-year, with cloud subscription ARR growth of approximately 95.9% year-over-year and Net Dollar Retention (NDR) of 108%[59]. - Kingdee Cloud Galaxy achieved revenue of approximately RMB922 million, an increase of 17.3% year-over-year, with cloud subscription ARR expansion of approximately 28.6% year-over-year and NDR of 96%[60]. - Kingdee Cloud Stellar's revenue increased by approximately 152.9% year-over-year, with NDR rising to 89%[60]. - The number of customers for Kingdee Cloud Galaxy expanded to 34,000, with new clients including Songyang Compressor and COSCO Shipping Special Equipment Manufacturing[60]. - Financial cloud services for small and micro enterprises achieved revenue of approximately RMB501 million, increasing by approximately 31.8% year-over-year, with cloud subscription ARR growth of approximately 45.0% year-over-year[60]. Taxation and Compliance - The current income tax for the six months ended June 30, 2023, was RMB 2,138,000, slightly down from RMB 2,341,000 in 2022, a decrease of 8.7%[199]. - Kingdee China is expected to qualify for a preferential corporate income tax rate of 10% based on management's assessment of meeting relevant requirements[199]. - Several subsidiaries were recognized as High-tech Enterprises, entitled to a preferential tax rate of 15% for the period ended June 30, 2023[199].