Share Options and Awards - As of June 30, 2019, a total of 529,501,600 share options were granted under the 2005 Scheme, with 298,713,643 options exercised and 163,291,807 options lapsed[5]. - During the six months ended June 30, 2019, 6,872,625 share options were exercised and 1,875,000 options lapsed, leaving 67,496,150 options outstanding[5]. - The Company adopted a new share option scheme on May 8, 2015, granting 40,000,000 options under the 2015 Scheme, with 8,663,000 options exercised and 1,100,000 lapsed as of June 30, 2019[5]. - As of June 30, 2019, the Company had granted 2,200,000 award shares under the Share Award Scheme, with 6,450,000 awarded shares still outstanding[10]. - The share option schemes are designed to incentivize and reward contributions from employees, directors, and other eligible participants[5]. - The 2015 Scheme has a mandate limit of 259,264,096 share options, allowing for an additional 219,264,096 options to be granted[5]. - The Company’s share options represent approximately 6.62% of the total number of shares as of June 30, 2019[5]. - The share award scheme is valid for a period of 10 years, commencing from its adoption date on December 4, 2015[10]. - As of June 30, 2019, the interests of directors and chief executives in the shares and debentures of the Company were required to be disclosed under the Securities and Futures Ordinance[19]. - The Company aims to enhance employee motivation and retention through its share option and award schemes[10]. Financial Performance - The Group recorded total revenue of RMB1,485,156,000 for the first half of 2019, up 16.1% from RMB1,279,103,000 in the same period of 2018[55]. - Revenue from the Cloud services business grew by 54.9% year-on-year in the first half of 2019, while revenue from the ERP business slightly increased by 1.2% year-on-year[55]. - Profit attributable to owners of the Company decreased by approximately 35.4% to approximately RMB109,640,000 compared to RMB169,777,000 in the same period of 2018[55]. - Basic earnings per share attributable to owners of the Company decreased by approximately 38.6% year-on-year to approximately RMB3.40 cents[55]. - The Company did not declare an interim dividend for the six months ended 30 June 2019, consistent with the previous year[52]. - The Group recorded gross profit of RMB1,180,429,000, up by 15.1% year-on-year, with a gross profit margin of approximately 79.5%[82]. - Operating profit fell by 26.0% year-on-year to RMB123,922,000, with ERP business segment profit increasing by 5.7% to RMB211,541,000, while cloud services segment loss increased by 84.1% to RMB124,521,000[83]. - Profit for the period was RMB 110,887, a decline of 30.0% compared to RMB 158,389 in 2018[128]. Shareholder Information - As of June 30, 2019, the total number of issued shares was 3,310,533,521, with substantial shareholders holding approximately 22.25% of the total issued share capital[25]. - Xu Shao Chun held 715,198,624 shares, representing approximately 21.6% of the total issued shares[22]. - JD Oriental Investment Limited held 288,526,000 shares, accounting for approximately 8.72% of the total issued shares[37]. - The Capital Group Companies, Inc. reported holding 371,736,037 shares as of March 28, 2019[39]. - The company had no directors or chief executives with interests in shares or debentures that required disclosure as of June 30, 2019[27]. - The aggregate number of shares held by directors was 736,653,658, which is approximately 22.25% of the total issued shares[22]. 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[44]. - The audit committee reviewed the Group's unaudited consolidated results for the six months ended 30 June 2019 and confirmed compliance with applicable accounting standards[50]. - The Group is committed to enhancing its corporate governance and internal controls regarding information disclosure[45]. Cloud Services and Innovations - Kingdee continues to invest in the development of the Kingdee Cloud service ecosystem, leveraging its understanding of Chinese enterprises' management[55]. - Kingdee's cloud transformation is progressing steadily, with ongoing investments in new technologies and business innovations to build the Kingdee ecosystem[61][63]. - Kingdee has been recognized as the leading brand in middleware products according to the Chinese IT users satisfaction survey, further consolidating its market share in proprietary and reliable products[65]. - Kingdee Cloud Cosmic aims to build a strong partner ecosystem by attracting more platform ecosystem partners through various initiatives[68]. - Kingdee Cloud Galaxy's revenue increased by over 50.5% year-on-year to RMB 384 million, with a customer dollar retention rate of over 90%[69]. - Kingdee Cloud Cosmic signed contracts with 43 customers during the reporting period, including 28 new customers from large enterprises[68]. Research and Development - Total research and development costs were RMB339,550,000, representing a year-on-year increase of 19.7%[82]. - Research and development expenses increased by 26.6% year-on-year, and selling and marketing expenses rose by 18.1% due to significant investments in cloud migration strategy[83]. - The capitalized amount during the reporting period for research and development was RMB262,530,000, up by 20.8% year-on-year[82]. Financial Position and Cash Flow - Total cash and bank deposits amounted to RMB1,138,876,000 as of June 30, 2019, a decrease of 37.0% from RMB1,812,674,000 as of December 31, 2018[109]. - The company held wealth management products worth RMB946,485,000 as of June 30, 2019, significantly up from RMB288,347,000 as of December 31, 2018, marking an increase of 228.5%[109]. - The company's borrowings decreased by 13.4% to RMB260,625,000 as of June 30, 2019, compared to RMB301,125,000 as of December 31, 2018[109]. - The current ratio improved to approximately 1.72 as of June 30, 2019, compared to 1.69 as of December 31, 2018, indicating stable liquidity[109]. - The company reported a net cash outflow in loans to third parties from the micro-credit business of RMB (81,501), compared to RMB (62,348) in the prior year, indicating an increase in cash outflow[135]. - Total cash used in investing activities amounted to RMB (745,432), which is an increase from RMB (532,418) in the same period of 2018, representing a rise of 40%[135]. Lease and Accounting Policies - The adoption of IFRS 16 resulted in an increase in right-of-use assets to RMB 47,982,000 as of June 30, 2019, compared to RMB 31,777,000 on January 1, 2019[147]. - Lease liabilities increased to RMB 46,421,000 as of June 30, 2019, from RMB 31,214,000 on January 1, 2019[147]. - The Group's accounting policies are consistent with those of the annual financial statements for the year ended December 31, 2018, except for the adoption of new standards[142]. - The Group has adopted IFRS 16, recognizing leases as right-of-use assets and corresponding liabilities starting from January 1, 2019[158].
金蝶国际(00268) - 2019 - 中期财报