Share Options and Awards - As of June 30, 2020, a total of 529,501,600 share options were granted under the 2005 Scheme, with 312,464,693 options exercised and 189,677,407 options lapsed[4]. - During the six months ended June 30, 2020, 6,930,500 share options were exercised and 10,844,100 options lapsed, leaving 27,359,500 options outstanding[4]. - Under the 2015 Scheme, 40,000,000 share options were granted, with 15,374,500 options exercised and 5,180,000 lapsed as of June 30, 2020[4]. - The remaining life of the 2015 Scheme is approximately 4 years and 8 months as of the report date[4]. - The company may further grant 219,264,096 share options under the 2015 Scheme, representing approximately 6.58% of the total shares issued as of June 30, 2020[4]. - The total options held as of June 30, 2020, amounted to 46,805,000 after accounting for options exercised and lapsed during the reporting period[5]. - The company granted a total of 10,608,000 award shares under the Share Award Scheme during the six months ended June 30, 2020[7]. - As of June 30, 2020, there were 3,800,000 awarded shares still outstanding for the Directors[7]. - The vesting period for the granted share options is four years, with 25% vesting at the end of each year[8]. - Lin Bo, a Director, has 1,400,000 awarded shares that are still outstanding as of June 30, 2020[8]. - The Share Award Scheme was adopted on December 4, 2015, and is valid for a period of 10 years[7]. Shareholding Structure - Xu Shao Chun, the Chairman and CEO, holds 715,198,624 shares, representing a significant interest in the company[12]. - As of June 30, 2020, Easy Key Holdings Limited holds 715,198,624 shares, representing 21.47% of the issued share capital[22]. - Oriental Gold Limited, a controlled corporation, holds 414,312,000 shares as a beneficial owner[19]. - Billion Ocean Limited has a total of 419,312,000 shares (12.59%) and 295,886,624 shares (8.88%) in long positions[23]. - The Capital Group Companies, Inc. owns 299,492,761 shares, accounting for 8.99% of the total issued shares[23]. - JD Oriental Investment Limited holds 231,330,000 shares, which is 6.94% of the issued share capital[25]. - BlackRock, Inc. has interests in 201,109,248 shares (6.04%) and short positions of 4,688,000 shares (0.14%)[25]. - The total number of issued shares as of June 30, 2020, is 3,330,996,071[26]. - The percentage of shares held by substantial shareholders is disclosed under the provisions of Part XV of the SFO[21]. - The report includes details of share options and interests of various shareholders as of June 30, 2020[28]. Financial Performance - The Group recorded total revenue of RMB1,387,445,000 in the first half of 2020, down 6.6% year-on-year from RMB1,485,156,000 in 1H2019[47]. - Revenue from the ERP business decreased by 37.0% year-on-year, while cloud services business grew by 45.1% year-on-year, accounting for 57.5% of total revenue[47]. - The Group experienced a loss of RMB224,025,000 attributable to owners of the Company in 1H2020, compared to a profit of RMB109,640,000 in 1H2019[47]. - Basic losses per share attributable to owners of the Company amounted to approximately RMB6.87 cents, compared to basic earnings per share of RMB3.40 cents in 1H2019[47]. - Net cash outflow from operating activities was approximately RMB81,581,000, compared to a net cash inflow of RMB189,203,000 in 1H2019[47]. - The Group recorded a gross profit of RMB1,024,648,000 in 1H2020, down by 13.2% year-over-year, with a gross profit margin of approximately 73.9%[71]. - Operating profit decreased to a loss of RMB253,562,000 in 1H2020, compared to a profit of RMB123,922,000 in 1H2019, primarily due to strategic changes and the impact of COVID-19[73]. - The net loss attributable to owners of the Company was RMB224,025,000 in 1H2020, with a net profit margin of -16.1%[77]. - Total revenue for the Group was RMB1,387,445,000, representing a year-over-year decrease of 6.6% from RMB1,485,156,000 in the same period last year[68]. - Revenue from the ERP business decreased by approximately 37.0% year-on-year to RMB589,069,000, down from RMB934,913,000[67]. - Cloud services revenue increased by 45.1% year-on-year to RMB798,376,000, compared to RMB550,243,000 in the previous year[70]. Research and Development - Research and development costs totaled RMB389,755,000, a year-over-year increase of 14.8%, with amortization of these costs rising by 20.9% to RMB212,038,000[71]. - The Group strategically raised wages and incentives for R&D staff to encourage product and technology innovation[102]. - Kingdee Cloud Cosmic has filed over 150 patents, with a core patent winning a national patent award[55]. - Kingdee Cloud Cosmic launched multiple major SaaS applications and over 140 business modules across 20+ cloud applications during the reporting period[54]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the reporting period, except for the roles of chairman and chief executive officer[41]. - The Board is committed to enhancing corporate governance and has arranged training for Directors and senior managers to ensure compliance with Listing Rules and relevant laws[42]. - The Company aims to enhance its corporate governance level and will review roles and responsibilities as necessary[41]. - The Company has adopted a code of conduct for Directors' securities transactions, with all Directors confirming compliance during the reporting period[43]. Cash Flow and Liquidity - Total cash and bank deposits decreased to RMB1,848,255,000 as of June 30, 2020, down from RMB2,586,565,000 as of December 31, 2019, a decline of about 28.5%[93]. - The company reported a net cash outflow of RMB (81,581) from operating activities, indicating a challenging operational environment[116]. - Cash and cash equivalents at the end of the period were RMB 1,456,499, down from RMB 856,380 in 2019, reflecting a net decrease of RMB 446,550[117]. - The Group is committed to maintaining a strong cash position and a healthy debt profile with strong repayment ability[99]. - The Group's current ratio decreased to approximately 1.91 as of June 30, 2020, down from 2.12 as of December 31, 2019[96]. Employee and Operational Metrics - The total number of employees in the Group reached 9,382 during the reporting period[102]. - Employee benefit expenses totaled RMB 1,074,142,000 for the six months ended June 30, 2020, compared to RMB 905,804,000 in 2019, representing an increase of approximately 18.6%[191]. - The Group provided 24-hour telephone and online customer services during the pandemic to ensure normal operation of customers' businesses[102]. Market and Competitive Position - Kingdee's cloud business maintained solid growth despite the impact of COVID-19, aiming for a 60% revenue contribution from cloud services in 2020[103]. - The Group aims to enhance competitiveness through a "Platform + Finance & HR Application + Ecosystem" strategy[48]. - Kingdee Cloud Cosmic was selected into Gartner's High-Productivity PaaS global vendor list and has applied over 150 patents related to cloud-native technology and enterprise management[54]. - The Group has retained the largest share in enterprise application software for fast-growing enterprises for 16 consecutive years[48].