Investment Rating - The report maintains a BUY rating for Kingdee with a target price lowered to HK$10.80 per share from HK$15.50, indicating an upside potential of 84.9% from the current price of HK$5.84 [3]. Core Insights - Kingdee's revenue for 1H24 increased by 11.9% YoY to RMB2.87 billion, slightly below Bloomberg consensus estimates, attributed to a lengthened deal cycle and macroeconomic challenges affecting small and micro enterprises [2]. - The net loss for 1H24 was RMB218 million, representing a 23% YoY reduction and 20% narrower than consensus estimates, showcasing Kingdee's focus on improving operational efficiency [2]. - The company's core SaaS product, Galaxy, demonstrated healthy growth with a 24% YoY increase in subscription ARR in 1H24, although the dollar retention rate slightly decreased to 95% [2]. - Kingdee's cloud revenue grew by 17.2% YoY to RMB2.4 billion, accounting for 83.2% of total revenue, while license ERP revenue declined by 8.8% YoY [2]. Financial Performance Summary - Revenue projections for FY24E have been lowered by 4% to RMB6.475 billion, with expectations for 2H24 revenue growth to reaccelerate to 16% [2][6]. - The gross profit margin improved to 63.2% in 1H24, up 1.3 percentage points YoY, driven by increased cloud revenue contribution [2]. - Kingdee's operating loss is projected to narrow, with a forecasted net profit of RMB240.6 million in FY25E and RMB466.8 million in FY26E [5][9]. Customer and Market Dynamics - Kingdee signed 275 new customers for its Cosmic & Constellation (C&C) business in 1H24, with revenue growth of 38.9% YoY [2]. - The lifetime contract value (LTCV) for C&C customers has shown a solid expansion trajectory, indicating strong demand for localized software solutions [2]. - Management's guidance remains optimistic for operational cash flow (OCF) growth, targeting RMB900 million for 2024, despite a slower overall revenue growth pace [2].

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Views - The company is expected to accelerate its transition to a cloud subscription service model, with a focus on AI applications driving innovation [5][6]. - Financially, the increase in SaaS revenue is anticipated to enhance gross margins, while a slight decrease in total employees suggests a potential for faster profitability recovery [5][6]. Summary by Sections Financial Performance - For the first half of 2024, the company reported revenue of 2.87 billion yuan, an increase of 11.9%, while the net profit attributable to the parent company was a loss of 218 million yuan, a reduction in loss of 23.2% [6]. - The gross margin improved to 63.2%, up 1.3 percentage points year-on-year, primarily due to the increased subscription revenue [6]. - Cloud service revenue reached 2.39 billion yuan, growing by 17.2%, accounting for 83.2% of total revenue, reflecting the effectiveness of the subscription-first strategy [6]. Customer Segmentation - The company is focusing on large enterprises, with revenue from its cloud services for large enterprises growing by 38.9% year-on-year [6]. - Revenue from small and micro enterprises also showed strong growth, with a 17.3% increase in cloud financial services revenue [6]. Future Outlook - The company aims to continue expanding its customer base across various market segments, which is expected to lead to stable revenue growth [6]. - The ongoing push for AI application innovation and the increasing share of cloud service revenue are projected to further enhance gross margins [6].

Investment Rating - The report maintains a "Buy" rating for Kingdee International (00268 HK) with a target price of HKD 11 88 per share [4][17] Core Views - Kingdee International reported H1 2024 revenue of RMB 2 87 billion, up 11 9% YoY, with a net loss attributable to shareholders of RMB -220 million, improving from RMB -280 million in H1 2023 [2][6] - Cloud transformation continues to progress, with cloud business revenue growing 17 2% YoY to RMB 2 39 billion, accounting for 83 2% of total revenue ARR reached RMB 3 15 billion, up 24 2% YoY [2][7] - Key cloud products maintained high renewal rates: 97% for Cangqiong/Xinghan, 95% for Xingkong, and 92% for Xingchen, reflecting strong competitiveness in cloud services [2][9] - R&D and sales expense ratios declined by 0 9pct and 1 9pct YoY, respectively, indicating the cloud transformation is entering a harvest phase [2] Financial Performance - Traditional software revenue declined 8 8% YoY to RMB 480 million, while cloud revenue grew 17 2% YoY to RMB 2 39 billion [7] - Gross margin improved to 63 2% in H1 2024, up from 61 9% in H1 2023 [7] - Operating cash flow was RMB -166 million, slightly better than RMB -169 million in H1 2023 [7] - Contract liabilities related to cloud subscriptions reached RMB 2 71 billion, up 28 2% YoY [7] Cloud Business Breakdown - Cangqiong/Xinghan (PaaS/SaaS for large enterprises) revenue grew 38 9% YoY to RMB 550 million, with ARR up 29% YoY and a renewal rate of 97% [12][13] - Xingkong (mid-market SaaS) revenue increased 14 3% YoY to RMB 1 05 billion, with a renewal rate of 95% and 42,000 cumulative customers [14] - Xingchen (SME cloud) revenue surged 70 8% YoY, with a renewal rate of 92% [16] Market Expansion - Kingdee secured major clients in H1 2024, including China National Petroleum Corporation, China Aviation Group, and Dongfeng Motor [12] - The company expanded its global presence, signing 121 new overseas customers in regions like Southeast Asia and Europe [14] Valuation and Forecast - The report forecasts 2024-2026 revenue of RMB 6 51 billion, RMB 7 54 billion, and RMB 8 88 billion, respectively, with YoY growth rates of 14 6%, 15 9%, and 17 8% [17] - Based on a 6x PS multiple for 2024, the target price is set at HKD 11 88 per share [17] Competitive Positioning - Kingdee is positioned as a leading domestic cloud ERP provider, with strong market share growth, particularly in the large enterprise segment [17] - The company's financial quality is better than peers, with receivables accounting for only 2 6% of total assets in H1 2024, compared to 10 4% for Yonyou Network [17]

Investment Rating - The report maintains a "Buy" rating for Kingdee International (0268.HK) [2] Core Views - Kingdee International's total revenue for H1 2024 reached 28.7 billion RMB, with a year-on-year growth of 8.8% [2] - The company's cloud service revenue grew by 17.2% year-on-year to 23.89 billion RMB, accounting for approximately 83.2% of total revenue [2] - The gross profit was 18.15 billion RMB, corresponding to a gross margin of 63.2%, indicating a slight increase of 1.3 percentage points year-on-year [2] - The company is actively pursuing cloud subscription services, with significant progress in securing large enterprise contracts [2] - The annual recurring revenue (ARR) for cloud subscription services increased by 28.2% year-on-year [2] Summary by Relevant Sections Financial Performance - In H1 2024, Kingdee International reported a net loss attributable to shareholders of 2.84 billion RMB, while maintaining guidance for breakeven in the current year [2] - The company achieved a net renewal rate of 97% for its cloud subscription services [2] - The total contract value for new contracts signed in H1 2024 reached 12.2 billion RMB, reflecting a continuous expansion of customer lifetime value [2] Strategic Focus - Kingdee International's future strategy emphasizes subscription-first AI management solutions, with ongoing innovations in AI applications [2] - The company has established partnerships with major enterprises such as Hisense Group and China Jinmao, validating its AI applications in human resource management [2] Market Position - Kingdee International is solidifying its leadership position in the mid-sized market, with significant revenue growth from its cloud services [2] - The company has expanded its international presence, helping Chinese enterprises to go global, with new clients in countries like Indonesia and Singapore [2] Earnings Forecast and Valuation - The report projects a slight downward adjustment in revenue forecasts for 2024-2026 due to the impact of macroeconomic pressures on small and medium enterprises [2] - The forecasted GAAP net profit for 2024 is adjusted to a loss of 1.8 billion RMB, with expectations of recovery in subsequent years [2]

[Performance Summary](index=1&type=section&id=Performance%20Summary) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2024, the Group's total revenue increased by 11.9% year-on-year to approximately RMB 2.87 billion, while loss attributable to equity holders significantly narrowed to approximately RMB 218 million from RMB 284 million in the prior period Financial Performance Summary | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Revenue** | Approx. RMB 2.87 billion | - | | **YoY Growth** | 11.9% | - | | **Loss Attributable to Equity Holders** | Approx. RMB 218 million | Approx. RMB 284 million | | **Basic Loss Per Share** | Approx. 6.12 cents | Approx. 8.23 cents | [Company Financial Performance](index=2&type=section&id=Company%20Financial%20Performance) In H1 2024, the Group's total revenue increased by 11.9% to RMB 2.87 billion, driven by cloud services growth of 17.2% and 24.2% ARR growth, narrowing loss attributable to equity holders by 23.2% to RMB 218 million Key Financial Indicators | Financial Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | RMB 2.87 billion | +11.9% | | **Cloud Services Revenue** | RMB 2.39 billion | +17.2% | | **Cloud Subscription Services ARR** | RMB 3.15 billion | +24.2% | | **Cloud Subscription Contract Liabilities** | - | +28.2% | | **Loss Attributable to Equity Holders** | RMB 218 million | -23.2% | | **Basic Loss Per Share** | 6.12 cents | Narrowed | | **Net Cash Flow from Operating Activities** | Outflow of RMB 166 million | Largely Stable | - The narrowing of losses is primarily due to the gradual realization of economies of scale in the large enterprise business[4](index=4&type=chunk) [Business Review and Outlook](index=2&type=section&id=Business%20Review%20and%20Outlook) [Strategic Summary](index=2&type=section&id=Strategic%20Summary) The Group's core strategy focuses on empowering enterprises by cultivating large enterprise markets, penetrating medium enterprise markets for overseas expansion, and leveraging AI to lead in micro and small enterprise markets - The Group's key strategic initiatives include: - **Large Enterprise Market**: Prioritizing product and value, deeply cultivating key industries, and establishing digital benchmarks - **Medium Enterprise Market**: Focusing on integrated R&D, production, supply, sales, and service, empowering with AI, and accelerating internationalization to seize opportunities for Chinese enterprises expanding overseas - **Micro and Small Enterprise Market**: Maintaining leadership in financial and tax products, continuously innovating with AI, and consolidating market leadership[6](index=6&type=chunk) [Company Business Summary](index=3&type=section&id=Company%20Business%20Summary) The Group's business continues to grow, with cloud services revenue increasing by 17.2% as the primary source, while large, medium, and micro enterprise markets achieved steady growth, particularly in domestic substitution, overseas expansion, and AI applications, despite a decline in traditional ERP business revenue - According to IDC's 2023 report, Kingdee ranks first in China's SaaS ERM, financial cloud, and enterprise EPM markets, and has maintained its leading market share in China's growth-oriented enterprise application software market for 19 consecutive years[7](index=7&type=chunk) [Cloud Services Business](index=3&type=section&id=Cloud%20Services%20Business) Cloud services, the Group's core growth engine, saw revenue increase by 17.2% to RMB 2.39 billion, accounting for 83.2% of total revenue, with strong performance across segments including large enterprise market revenue growth of 38.9%, medium market growth of 14.3%, and micro financial cloud growth of 17.3% Cloud Services Revenue by Segment | Segment | Revenue | YoY Growth | | :--- | :--- | :--- | | **Total Cloud Services Business** | RMB 2.39 billion | 17.2% | | **Large Enterprises (Cosmic & Xinghan)** | RMB 546 million | 38.9% | | **Medium Enterprises (Xingkong)** | RMB 1.054 billion | 14.3% | | **Micro Financial Cloud** | RMB 588 million | 17.3% | - Large Enterprise Market: Successfully signed leading enterprises such as China National Petroleum Corporation and Dongfeng Motor, launched AI management assistant Cosmic, and deepened AI cooperation with Baidu and Microsoft[9](index=9&type=chunk) - Medium Enterprise Market: Seized opportunities for Chinese enterprises expanding overseas, newly signed 121 outbound enterprises, with business covering Southeast Asia, the United States, and Europe[10](index=10&type=chunk) - Micro and Small Enterprise Market: Kingdee Cloud · Xingchen revenue increased by **70.8% year-on-year**, and intelligent solutions such as AI inventory management were launched[11](index=11&type=chunk) [Enterprise Resource Planning Business and Others](index=4&type=section&id=Enterprise%20Resource%20Planning%20Business%20and%20Others) As the Group transitions to cloud services, traditional Enterprise Resource Planning (ERP) and other business revenues continued to contract, decreasing by **8.8% year-on-year** to **RMB 481 million** during the reporting period ERP and Other Business Revenue | Business Segment | H1 2024 Revenue | H1 2023 Revenue | YoY Change | | :--- | :--- | :--- | :--- | | **ERP and Others** | RMB 481 million | RMB 527 million | -8.8% | [Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets decreased to **RMB 13.04 billion** from **RMB 14.14 billion** at the beginning of the year, with total liabilities decreasing to **RMB 4.996 billion** from **RMB 5.437 billion**, resulting in net assets of **RMB 8.047 billion** Key Financial Position Indicators | Indicator (RMB thousand) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | 13,042,893 | 14,139,197 | | **Total Liabilities** | 4,995,770 | 5,437,045 | | **Net Assets** | 8,047,123 | 8,702,152 | | **Contract Liabilities** | 3,367,104 | 3,176,589 | [Condensed Consolidated Interim Statement of Profit or Loss](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) In H1 2024, the Group achieved revenue of **RMB 2.87 billion**, a **11.9% year-on-year increase**, with gross profit of **RMB 1.82 billion** and a gross margin of **63.2%**, while operating loss narrowed to **RMB 317 million** and net loss attributable to equity holders decreased by **23.2%** to **RMB 218 million** Key Profit or Loss Indicators | Indicator (RMB thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Revenue** | 2,870,025 | 2,565,850 | | **Gross Profit** | 1,815,187 | 1,588,770 | | **Operating Loss** | (317,060) | (388,191) | | **Loss Attributable to Equity Holders of the Company** | (217,851) | (283,535) | | **Basic Loss Per Share (RMB cents)** | (6.12) | (8.23) | [Condensed Consolidated Interim Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) During the reporting period, net cash outflow from operating activities was **RMB 166 million**, largely stable year-on-year, while net cash outflow from investing activities was **RMB 651 million**, and from financing activities was **RMB 889 million**, primarily due to loan repayments and share repurchase payments, with cash and cash equivalents at period-end totaling **RMB 1.258 billion** Key Cash Flow Activities | Cash Flow Activities (RMB thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | (166,292) | (168,887) | | **Net Cash Used in Investing Activities** | (650,806) | (914,362) | | **Net Cash Used in Financing Activities** | (888,701) | 209,919 | | **Net Decrease in Cash and Cash Equivalents** | (1,705,799) | (873,330) | | **Cash and Cash Equivalents at Period-End** | 1,258,498 | 1,071,870 | [Notes to Financial Information](index=12&type=section&id=Notes%20to%20Financial%20Information) [Segment Information](index=14&type=section&id=Segment%20Information) The Group is segmented into Cloud Services, ERP and Others, and Investment Property Operations; Cloud Services is the largest revenue source but remains at a loss, while ERP business is marginally profitable despite shrinking, and investment properties provide stable profit, with most revenue from mainland China H1 2024 Segment Performance | H1 2024 Segment Performance (RMB thousand) | Cloud Services Business | ERP Business and Others | Investment Property Operations | Group Total | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 2,389,247 | 480,778 | - | 2,870,025 | | **Operating (Loss)/Profit** | (347,384) | 4,456 | 25,868 | (317,060) | - The Group's primary operations are in China, with revenue from external customers in mainland China totaling **RMB 2.848 billion**, accounting for **99.2% of total revenue**[31](index=31&type=chunk) [Management Discussion and Analysis](index=38&type=section&id=Management%20Discussion%20and%20Analysis) [Analysis of Key Financial Information](index=38&type=section&id=Analysis%20of%20Key%20Financial%20Information) Management analysis indicates revenue growth was primarily driven by a **17.2% strong increase** in cloud services, with gross margin improving by **1.3 percentage points to 63.2%** due to a higher proportion of subscription revenue, while selling, administrative, and R&D expenses as a percentage of revenue all decreased, reflecting improved cost control and operational efficiency, collectively narrowing the operating loss - Gross margin improved from **61.9% to 63.2%**, primarily due to an increased proportion of subscription revenue[79](index=79&type=chunk) - Selling and marketing expenses as a percentage of revenue decreased from **44.5% to 42.7%**[80](index=80&type=chunk) - Administrative expenses as a percentage of revenue decreased from **9.3% to 8.7%**[81](index=81&type=chunk) - Research and development expenses as a percentage of revenue decreased from **29.0% to 28.1%**[82](index=82&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of the end of the reporting period, the Group held total cash and bank balances of **RMB 4.19 billion**, with an equity ratio (total liabilities/total equity) of **62.08%**, remaining relatively stable, and manages liquidity, interest rate, foreign exchange, and credit risks centrally through a unified treasury department Liquidity and Capital Resources Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Cash and Bank Balances** | RMB 4.19 billion | RMB 5.69 billion | | **Equity Ratio** | 62.08% | 62.48% | | **Current Ratio** | 1.07 | - | - The Group's foreign exchange risk primarily arises from USD to RMB and HKD to RMB exchange rates; currently, there is no foreign currency hedging policy, but management monitors these risks[97](index=97&type=chunk) [Future Outlook](index=45&type=section&id=Future%20Outlook) The Group will continue to firmly execute its core strategy of "Subscription First, AI First," focusing on AI innovation and supporting Chinese enterprises' overseas expansion to continuously enhance product and service quality for high-quality growth, while upholding its new mission of "Empowering Enterprises to Achieve Excellence" - The company will continue to focus on its core strategy of "**Subscription First, AI First**" in the future[104](index=104&type=chunk) - Key areas of exploration include AI innovation applications and supporting Chinese enterprises in their overseas expansion[104](index=104&type=chunk) [Directors' Report](index=46&type=section&id=Directors%20Report) [Share Incentive Scheme and Share Repurchase](index=46&type=section&id=Share%20Incentive%20Scheme%20and%20Share%20Repurchase) During the reporting period, the company actively utilized its share incentive scheme, granting **12.82 million** award shares, while also repurchasing and canceling **46.88 million** shares from the open market at a total cost of approximately **HKD 397 million** to enhance shareholder value - During the reporting period, **12,821,280** award shares were granted under the share award scheme[109](index=109&type=chunk) - During the reporting period, the company repurchased a total of **46,876,000** shares on the Stock Exchange at a total cost of approximately **HKD 397 million**, all of which have been canceled[129](index=129&type=chunk)[130](index=130&type=chunk) [Directors' and Shareholders' Interests](index=50&type=section&id=Directors%27%20and%20Shareholders%27%20Interests) The report discloses the shareholding status of directors and major shareholders, with Mr. Xu Shaochun, Chairman of the Board, holding approximately **19.57%** of the company's interests, and BlackRock, Inc. as a major shareholder with approximately **5.02%** long position Major Shareholders' Interests | Shareholder Name | Nature of Interest | Shareholding Percentage | | :--- | :--- | :--- | | **Xu Shaochun (Chairman)** | Interest in controlled corporation/Beneficial owner, etc. | 19.57% | | **Easy Key Holdings Limited** | Interest in controlled corporation | 18.98% | | **BlackRock, Inc.** | Interest in controlled corporation | 5.02% | [Corporate Governance](index=56&type=section&id=Corporate%20Governance) During the reporting period, the company complied with most provisions of the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are both held by Mr. Xu Shaochun, which the Board believes benefits the company's stable development and strategic execution, and the Audit Committee has reviewed the current period's results - The company has one deviation from the Corporate Governance Code: the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. Xu Shaochun, which the Board believes facilitates effective strategy formulation and rapid response to market changes[132](index=132&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated results and this announcement[135](index=135&type=chunk)

Summary of Conference Call Industry or Company Involved - The discussion focuses on a specific core product that has been emphasized over the past year, indicating its significance in the current macroeconomic environment [1]. Core Points and Arguments - The overall fundamentals of the core product are believed to exhibit strong alpha characteristics in the current macroeconomic context [1]. - The valuation and cost-effectiveness of the product are considered to be at historically low levels, suggesting a favorable investment opportunity [1]. - The organization of this exchange activity indicates a proactive approach to engage stakeholders and share insights on the product's potential [1]. Other Important but Possibly Overlooked Content - The emphasis on the product's performance and valuation suggests a strategic focus on identifying and capitalizing on market opportunities during challenging economic times [1].

股 票 研 究 [Table_industryInfo] 计算机 [ Table_Main[ 金 TIna 蝶fbole] 国 _T 际itle （] 0268） [评Tab级le_：Inv est] 增持 当前价格（港元）： 9.21 云转型卓有成效、AI 协同发力，盈利拐点将至 2024.05.21 海 [ 交Ta易bl数e_据M arket] 外 李沐华(分析师) 陈剑鑫(研究助理) 52周内股价区间（港元） 7.28-13.88 公 010-83939797 021-38038262 当前股本（百万股） 3,594 当前市值（百万港元） 33,098 司 limuhua@gtjas.com chenjianxin027974@gtjas.co （ 证书编号 S0880519080009 mS0 880123030056 [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 订阅优先：再显成效，云服务营收占比继续提升，续费率维持高位。AI优先：大模型 金蝶国际 恒生指数 香 加速ERP国产替代，Cosmic优化用户体验。叠加降本增效，扭亏步伐或超预期。 20% 摘要： 港 8% ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% within the next 6 to 12 months [8]. Core Insights - The company has launched an AI management assistant named Cosmic, which accelerates its "subscription-first, AI-first" strategy. This product is based on extensive data from over 7.4 million enterprise clients and aims to enhance management efficiency across various business scenarios [5]. - The company's cloud transformation strategy is progressing rapidly, with a reported annual recurring revenue (ARR) of approximately 2.98 billion yuan as of Q1 2024, reflecting a growth rate of 28%. The company has achieved high net dollar retention rates across its cloud products, indicating strong customer loyalty [5]. - Financial performance is improving, with a gross margin of 64.17% in 2023, up from 61.61% the previous year. The net loss has significantly decreased from 389 million yuan to 210 million yuan year-on-year, and operating cash flow reached 653 million yuan, a 74.6% increase from the previous year [5]. Financial Projections - Revenue projections for the company have been adjusted to 6.737 billion yuan for 2024, 7.931 billion yuan for 2025, and 9.333 billion yuan for 2026, with corresponding net profits of -43 million yuan, 181 million yuan, and 459 million yuan respectively. The price-to-sales (P/S) ratios are projected to be 4.4, 3.8, and 3.2 for the same years [4][3]. - The company is expected to achieve a gross margin of 65% in 2024, with a net profit margin turning positive by 2025 [7]. Market Position - The company holds a market capitalization of approximately 32.92 billion HKD, with a share price of 9.16 HKD [4]. - The report highlights the company's competitive advantages and the optimization of its revenue structure, which supports the positive outlook for its stock performance [4].

[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