M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update Kingdee (268 HK) Steady rev growth with on-track loss reduction Target Price HK$15.50 Kingdee reported 2023 financial results: revenue was RMB5.7bn, up 17% YoY (Previous TP HK$15.10) (2022: 17% YoY), and net loss attributable to ordinary shareholders was Up/Downside 66.3% RMB210mn (2022: loss of RMB389mn), both in line with our estimate and Current Price HK$9.32 Bloomberg consensus. Kingdee’s loss reduction effort was on tra ...

2024年3月20日 公司研究 保持订阅+AI 优先战略，加速出海业务布局 ——金蝶国际（0268.HK）2023 年度业绩点评 要点 买入（维持） 事件：公司公告23年度业绩，实现总收入56.79亿元人民币，同比增长16.7%； 当前价：9.32港元 其中传统ERP业务收入同比增长2%至11.74亿，云服务业务实现收入45.05 亿元，同比增长21%，收入占比同比提升3pct至79.3%。实现毛利润36.44 亿元，对应毛利率 64.2%，同比提升 2.6pct，主要系云服务收入占比进一步 作者 提高以及云基础设施成本降低；实现归母净亏损2.1亿元，同比收窄46.1%。 分析师：付天姿 执业证书编号：S0930517040002 云订阅服务模式持续推进，加速出海业务布局。云服务业务持续高质量增长， 021-52523692 收入同比增长21%至45.05亿元，占比总收入约79.3%，云订阅服务年经常 futz@ebscn.com 性收入（ARR）同比上升33.1%至28.6亿元，云订阅服务相关的合同负债同 比增长29.6%。1）加速抢占大型企业市场：23年苍穹+星瀚签订合同金额14 联系人：杨朋沛 亿元，实 ...

金蝶國際軟件集團有限公司 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） （股票號碼：268） 截至二零二三年十二月三十一日止年度之全年業績公佈 及 建議採納經修訂和重述的公司章程大綱細則 金蝶國際軟件集團有限公司(「金蝶國際」或「本公司」)董事會(「董事會」)謹此公佈 本公司及其附屬公司(「本集團」)截至二零二三年十二月三十一日止年度之經審核綜合 業績，連同截至二零二二年十二月三十一日止年度之經審核綜合業績比較如下： 截至二零二三年十二月三十一日年度的財務摘要 － 收入較二零二二年增長約16.7%至約人民幣5,679,073,000元，其中雲服務業務收 入較二零二二年增長約21.3%，占比由二零二二年76.3%提升至79.3%（二零二二年 收入約人 ...

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].

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） （股票號碼：268） 截至二零二三年六月三十日止六個月之 中期業績公佈 金蝶國際軟件集團有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬公 司（「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合中期業績如下： 截至二零二三年六月三十日止六個月的財務摘要 − 收入較二零二二年同期增長約 16.8%至約人民幣 2,565,850,000元 − 于二零二三年上半年，本公司權益持有人應佔當期虧損約人民幣 283,535,000 元 （二零二二年同期虧損約人民幣356,441,000 元） ...

·°。Kingdee ● Kingdee International Software Group Company Limited 金蝶國際軟件集團有限公司 Stock Code 股份代號：268 ２０２２-年 報 ANNUAL REPORT Established in 1993, Kingdee International Software Group Company Limited ("Kingdee International" or "Kingdee") is listed on the Main Board of the Hong Kong Stock Exchange (stock code: 0268.HK) and headquartered in Shenzhen, China, and has become a leader in the international market and the best player in China's market as a management cloud SaaS vendor. Adhering to the core values of " ...

金蝶國際軟件集團有限公司 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） （股票號碼：268） 截至二零二二年十二月三十一日止年度之 全年業績公佈 金蝶國際軟件集團有限公司(「金蝶國際」或「本公司」)董事會(「董事會」)謹此公佈本 公司及其附屬公司(「本集團」)截至二零二二年十二月三十一日止年度之經審核綜合業 績，連同截至二零二一年十二月三十一日止年度之經審核綜合業績比較如下： 截至二零二二年十二月三十一日年度的財務摘要 － 收入較二零二一年增長約16.6%至約人民幣4,865,769,000元（二零二一年收入約 人民幣4,174,147,000元），其中雲服務業務收入較二零二一年增長約34.6%，占比由 二零二一年66.1%提升至76.3%。 － 本公司權益持有人應 ...

Share Options and Awards - Total share options granted under the 2005 Scheme: 529,501,600, with 315,801,193 exercised and 197,797,407 lapsed, leaving 15,903,000 outstanding as of 30 June 2021[3] - Share options exercised under the 2005 Scheme during the six months ended 30 June 2021: 2,279,000[3] - Share options lapsed under the 2005 Scheme during the six months ended 30 June 2021: 5,665,000[3] - Total share options granted under the 2015 Scheme: 40,000,000, with 17,677,000 exercised and 8,795,000 lapsed, leaving 13,528,000 outstanding as of 30 June 2021[3] - Share options exercised under the 2015 Scheme during the six months ended 30 June 2021: 1,037,500[3] - Share options lapsed under the 2015 Scheme during the six months ended 30 June 2021: 2,535,000[3] - Remaining share options available for grant under the 2015 Scheme: 228,059,096, representing approximately 6.57% of the total shares issued as of 30 June 2021[3] - Total share options granted to other employees under the 2015 Scheme: 34,647,500, with 2,916,500 exercised and 8,200,000 lapsed, leaving 23,731,000 outstanding as of 30 June 2021[5] - The company granted 6,376,000 award shares under the Share Award Scheme during the six months ended 30 June 2021, with 2,562,500 awarded shares still outstanding as of that date[7] - The company's share award scheme allows for a maximum of 3% of the issued share capital to be awarded under the scheme, with a 1% limit per selected participant in any 12-month period[6] Placing Proceeds Allocation - The gross proceeds from the placing were approximately HK$2,375.1 million, with net proceeds of approximately HK$2,353.0 million after deducting related costs[11] - 50.0% of the placing proceeds (HK$1,176,850,000) were allocated to research and development, with HK$738,045,000 utilized and HK$438,805,000 remaining as of 30 June 2021[12] - 30.0% of the placing proceeds (HK$706,110,000) were allocated to future potential investments, with HK$530,483,000 utilized and HK$175,627,000 remaining as of 30 June 2021[12] - 20.0% of the placing proceeds (HK$470,740,000) were allocated to working capital and general corporate purposes, fully utilized as of 30 June 2021[12] - The net price per Placing Share was approximately HK$17.65, with the placing completed on 28 August 2020[11] Shareholdings and Interests - As of 30 June 2021, Xu Shao Chun held 1,525,000 shares as a beneficiary of a trust and 19,786,263 shares as a beneficial owner[13] - The aggregate interests of directors and the chief executive in shares, underlying shares, or debentures amounted to 2,751,275 shares, representing 0.08% of the total[14] - The weighted average closing price of the company's shares prior to the share option exercise date was HK$29.01[6] - The total number of shares held by directors and executives is 703,509,887, representing 20.27% of the issued shares[17] - Lin Bo holds 1,713,775 shares as a beneficial owner and 1,037,500 shares as a beneficiary of a trust[17] - Gary Clark Biddle holds 1,183,000 shares as a beneficial owner, representing 0.03% of the issued shares[18] - Dong Ming Zhu holds 400,000 shares through share options, representing 0.01% of the issued shares[18] - Liu Chia Yung holds 200,000 shares as a beneficial owner, representing 0.01% of the issued shares[18] - Easy Key Holdings Limited holds 682,198,624 shares, representing 19.66% of the issued shares[23] - Oriental Gold Limited holds 386,312,000 shares as a beneficial owner, representing 11.13% of the issued shares[23] - Billion Ocean Limited holds 295,886,624 shares as a beneficial owner, representing 8.53% of the issued shares[23] - JPMorgan Chase & Co. holds 17,650,592 shares as a controlled corporation and 6,742,371 shares as a short position[23] - The total long positions held by JPMorgan Chase & Co. amount to 305,918,767 shares, representing 8.82% of the issued shares[23] - JD Oriental Investment Limited holds 200,180,000 shares, representing 5.77% of the total issued shares[24] - FMR LLC holds 209,200,485 shares, representing 6.03% of the total issued shares[24] - Schroders Plc holds 173,693,020 shares, representing 5.01% of the total issued shares[24] - JPMorgan Chase & Co. holds 89,042,175 shares directly and 91,515,000 shares through its subsidiaries[27] - JPMorgan Chase & Co. has derivatives interests including 146,000 physically settled listed derivatives and 272,700 cash settled listed derivatives[28] - Max Smart Limited, controlled by Liu Qiangdong, holds 200,180,000 shares indirectly through JD.com, Inc. and JD.com Investment Limited[29] Financial Performance and Metrics - Total revenue for the six months ended 30 June 2021 was RMB1,872,399,000, representing a 35.0% increase compared to the same period in 2020[44] - Loss attributable to owners of the Company was approximately RMB248,108,000, compared to a loss of RMB224,025,000 in the same period in 2020[44] - Basic loss per share attributable to owners of the Company amounted to approximately RMB7.25 cents, compared to RMB6.87 cents in the same period in 2020[44] - Net cash outflow from operating activities was approximately RMB96,513,000, compared to RMB81,581,000 in the same period in 2020[44] - Gross profit increased by 31.9% YoY to RMB 1,174,133,000, with a gross profit margin decrease of 1.5 percentage points to 62.7% due to higher outsourcing costs[60] - Selling and marketing expenses rose by 22.3% YoY to RMB 887,846,000, but decreased as a percentage of revenue from 52.3% to 47.4%[60] - Administrative expenses and net impairment losses increased by 11.6% YoY to RMB 235,255,000, with a decrease in revenue percentage from 15.2% to 12.6%[60] - Research and development expenses surged by 71.4% YoY to RMB 667,911,000, with a R&D capitalization rate drop to 34.2% and capitalized amount decreasing by 6.0% YoY to RMB 228,722,000[60] - Other income and gains-net increased by 45.1% YoY to RMB 219,127,000, mainly due to the rise in fair value of the investment in FXiaoKe[61] - Operating loss widened to RMB 354,584,000, driven by increased R&D investment in cloud products like Kingdee Cloud Cosmic and Kingdee Cloud Constellation[61] - Cloud business operating loss increased by 53.7% YoY to RMB 433,223,000, while ERP business and others recorded an operating profit of RMB 42,724,000[61] - Finance income-net rose to RMB 21,975,000, up from RMB 4,633,000 in the same period of 2020, due to increased finance income[61] - Income tax credit amounted to RMB 38,679,000, up from RMB 9,181,000 in 2020, primarily due to the Group's loss and increased R&D costs[61] - Net loss attributable to owners of the Company was RMB248,108,000, with a net loss margin of 13.3%, and basic loss per share of RMB7.25 cents as of 30 June 2021[62] - Financial assets and derivative instruments at fair value through profit or loss decreased by RMB544,496,000 to RMB1,076,439,000 as of 30 June 2021 compared to 31 December 2020[62] - Investments designated at fair value through profit or loss, including wealth management products, listed equity investments, and unlisted equity investments, totaled RMB1,076,439,000 as of 30 June 2021[66] - The Group disposed of its 5% interest in Shenzhen Fast Learning Education Development Co., Ltd., resulting in a decrease of RMB15,585,000 in the book value of investments in associates[70] - The Group provided a loan of RMB200,000,000 to CITIC Consumer Finance Co., Ltd. at an annual interest rate of 5% for 182 days[72] - Contract liabilities increased to RMB1,690,768,000 as of 30 June 2021, up from RMB1,483,943,000 as of 31 December 2020, primarily due to growth in the Group's cloud service business[74] - Total cash and bank deposits amounted to RMB 3,668,508,000 as of 30 June 2021, a decrease from RMB 4,046,980,000 as of 31 December 2020[76] - Asset management products held by the Group decreased to RMB 173,254,000 as of 30 June 2021, down from RMB 993,656,000 as of 31 December 2020[76] - Net current assets were approximately RMB 2,226,998,000 as of 30 June 2021, compared to RMB 3,584,825,000 as of 31 December 2020[76] - The current ratio of current assets to current liabilities decreased to 1.90 as of 30 June 2021 from 2.38 as of 31 December 2020[76] - Group borrowings decreased by 100% year-over-year to RMB 0 as of 30 June 2021, down from RMB 120,000,000 as of 31 December 2020[76] - The Group's exposure to foreign exchange risk primarily stems from fluctuations in the US dollar/RMB and Hong Kong dollar/RMB exchange rates[78] - The Group does not have a foreign currency hedging policy but monitors foreign exchange exposure and may consider hedging if necessary[78] - Credit risk is managed by transacting with high-credit-quality financial institutions in China and Hong Kong[78] - The Group assesses the credit quality of distributors based on financial position, past experience, and other factors, setting individual risk limits accordingly[78] - The company's trade receivables are diversified with no significant concentration of credit risk, as they are composed of numerous small items spread across a large number of customers[79] - The company's investments in debt instruments, including loans to third parties and related parties, are considered low-risk, with credit ratings monitored for deterioration[79] - The company manages idle cash by purchasing and redeeming wealth management products, which primarily consist of low-risk products issued by financial institutions, to generate higher yields than bank deposits[81] - The company has established a disciplined fund management principle, including annual and monthly funding plans, to efficiently manage market risks and ensure financial security[81] - The company's total number of employees reached 10,589 during the reporting period, with a focus on innovation, quality, and a customer-centric culture[81] - The company implemented organizational strategies such as matrix, platform, systematization, and intelligence, while continuing to attract top-tier talent for cloud transformation[81] - Kingdee signed school-enterprise cooperation agreements with 11 universities, helping to cultivate over 200 graduates for the industry[83] - During the pandemic, Kingdee provided teaching support for over 60 universities, benefiting nearly 10,000 students[83] - Kingdee established a digital classroom, sharing digital management strategies with over 300 senior executives of Chinese enterprises[83] - The company's total assets as of 30 June 2021 were RMB 10,354,271,000, a decrease from RMB 10,722,079,000 at the end of 2020[85] - Non-current assets increased to RMB 5,645,031,000 as of 30 June 2021, up from RMB 4,538,665,000 at the end of 2020[85] - Current assets decreased to RMB 4,709,240,000 as of 30 June 2021, down from RMB 6,183,414,000 at the end of 2020[85] - Total liabilities decreased to RMB 2,681,168,000 as of 30 June 2021, down from RMB 2,763,602,000 at the end of 2020[87] - Net assets decreased to RMB 7,673,103,000 as of 30 June 2021, down from RMB 7,958,477,000 at the end of 2020[87] - Equity attributable to owners of the company decreased to RMB 7,546,472,000 as of 30 June 2021, down from RMB 7,789,631,000 at the end of 2020[87] - Revenue from contracts with customers increased to RMB 1,872,399 thousand in H1 2021, up 34.9% from RMB 1,387,445 thousand in H1 2020[89] - Gross profit rose to RMB 1,174,133 thousand in H1 2021, a 31.8% increase from RMB 890,494 thousand in H1 2020[89] - Operating loss widened to RMB 354,584 thousand in H1 2021, compared to RMB 253,562 thousand in H1 2020[89] - Loss for the period increased to RMB 286,457 thousand in H1 2021, up 18.5% from RMB 241,700 thousand in H1 2020[89] - Loss per share attributable to owners of the Company increased to RMB 7.25 cents in H1 2021, compared to RMB 6.87 cents in H1 2020[89] - Total comprehensive loss for the period was RMB 285,451 thousand in H1 2021, compared to RMB 238,845 thousand in H1 2020[91] - Research and development costs surged to RMB 624,743 thousand in H1 2021, a 74.3% increase from RMB 358,396 thousand in H1 2020[89] - Total equity decreased to RMB 7,673,103 thousand as of 30 June 2021, down from RMB 7,958,477 thousand at the start of the year[93] - Share premium decreased to RMB 5,027,044 thousand as of 30 June 2021, compared to RMB 5,052,514 thousand at the start of the year[93] - Non-controlling interests decreased to RMB 126,631 thousand as of 30 June 2021, down from RMB 168,846 thousand at the start of the year[93] - Net loss for the period was RMB 241.7 million, with a comprehensive loss of RMB 258.845 million[95] - Total equity decreased to RMB 5.9 billion as of 30 June 2020, down from RMB 6.145 billion at the beginning of the year[95] - Net cash outflow from operating activities was RMB 96.513 million for the six months ended 30 June 2021[97] - Net cash outflow from investing activities was RMB 1.195 billion for the six months ended 30 June 2021[97] - Net cash outflow from financing activities was RMB 126.434 million for the six months ended 30 June 2021[99] - Cash and cash equivalents decreased by RMB 1.417 billion to RMB 1.321 billion at the end of June 2021[99] - Purchases of intangible assets amounted to RMB 232.556 million for the six months ended 30 June 2021[97] - Payment for acquisition of a subsidiary was RMB 80.311 million for the six months ended 30 June 2021[97] - Dividends paid in 2020 amounted to RMB 36.756 million[95] - Interest paid was RMB 1.849 million for the six months ended 30 June 2021[97] - The company reclassified outsourcing service fees of RMB 134,154,000 from "selling and marketing expenses" to "cost of sales" for the six months ended 30 June 2020 to align with current reporting practices[103][104] - The reclassification resulted in an increase in cost of sales by RMB 134,154,000 and a corresponding decrease in gross profit and selling and marketing expenses by the same amount for the six months ended 30 June 2020[105] - The company operates in three main segments: Cloud services business, ERP business and others, and Investment properties operating business, with all businesses primarily conducted in the PRC[110] - The Cloud services business includes enterprise cloud services, Small & Micro business finance cloud services, and industry cloud services[110] - The ERP business and others segment includes sales of software and hardware products, provision of software implementation services, software solution consulting, maintenance, upgrade, and other supporting services[110] - The Investment properties operating business involves the operation of investment properties[110] - The company's primary listing is on the Stock Exchange of Hong Kong Limited since 15 February 2001[1] - The unaudited condensed consolidated interim financial statements are presented in thousands of Renminbi (RMB'000) and were approved for issue by the Board of Directors on 18 August 2021[1] - The company's interim financial information is prepared in accordance with IAS 34, 'Interim financial reporting', and should be read in conjunction with the annual financial statements for the year ended 31 December 2020[2] - The company's accounting policies for the interim period are consistent with those applied in the annual financial statements for the year ended 31 December 2020[107] - Total revenue from external customers for the Group was RMB 1,872,399,000, with RMB 1,238,258,