金蝶国际(00268) - 2024 - 中期业绩

Performance Summary Financial Highlights 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 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] Business Review and Outlook Strategic Summary 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] Company Business Summary 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] Cloud Services Business 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] - 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] - 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] Enterprise Resource Planning Business and Others 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 Condensed Consolidated Interim Statement of Financial Position 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 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 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 Segment Information 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] Management Discussion and Analysis Analysis of Key Financial Information 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] - Selling and marketing expenses as a percentage of revenue decreased from 44.5% to 42.7%[80] - Administrative expenses as a percentage of revenue decreased from 9.3% to 8.7%[81] - Research and development expenses as a percentage of revenue decreased from 29.0% to 28.1%[82] Liquidity and Capital Resources 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] Future Outlook 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] - Key areas of exploration include AI innovation applications and supporting Chinese enterprises in their overseas expansion[104] Directors' Report Share Incentive Scheme and Share Repurchase 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] - 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][130] Directors' and Shareholders' Interests 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 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] - The Audit Committee has reviewed the Group's unaudited consolidated results and this announcement[135]