Market Position and Growth - Kingdee has maintained the largest market share in China's enterprise application software sector for 15 consecutive years[4]. - The company holds the top position in the enterprise-grade SaaS Cloud services industry for the second year in a row[4]. - Kingdee's diverse Cloud services cater to over 6.8 million enterprises and organizations globally[5]. - The company offers various Cloud platforms, including "Kingdee Cloud Cosmic" and "Kingdee Cloud Galaxy," targeting different enterprise sizes[5]. - Kingdee's financial highlights indicate a strong performance, with significant growth in user adoption and service offerings[7]. - The company is recognized as the only Chinese enterprise SaaS Cloud service provider listed in Gartner's global market guide[6]. - Kingdee's total assets increased to RMB 8,420,153,000 in 2019, compared to RMB 7,578,553,000 in 2018[20]. - Kingdee has maintained the number one market share in China's growing enterprise application software market for 15 consecutive years[116]. - The company has achieved the largest share in the enterprise-grade SaaS Cloud services industry for the second year[113]. - Kingdee holds the largest share in the enterprise-grade SaaS ERM (Cloud ERP) and Financial Cloud services industry for the third year[113]. Financial Performance - In 2019, Kingdee's total revenue grew by 18.4% year-on-year, reaching RMB 3,325,590,000[23]. - The cloud business revenue increased by 54.7% year-on-year, contributing significantly to the overall growth[23]. - Kingdee Cloud Galaxy achieved revenue of RMB 868 million, with a dollar retention rate of 90%[24]. - The Group recorded total revenue of RMB3,325,590,000 in 2019, an increase of 18.4% year-on-year, with cloud services revenue growing by 54.7% year-on-year, accounting for 39.5% of total revenue[32]. - Profit attributable to owners of the Company decreased by approximately 9.6% to RMB372,580,000 in 2019[32]. - Basic earnings per share attributable to owners of the Company decreased by approximately 12.7% year-on-year to approximately RMB11.52 cents[32]. - Net cash generated from operating activities reached RMB 962,927,000 in 2019, up from RMB 905,515,000 in 2018[19]. - The Group's cloud business reported an operating loss of RMB195,065,000, an increase of 30.7% year-on-year[64]. - The income tax expense for 2019 was RMB30,333,000, representing a year-on-year decrease of 21.7% from RMB38,760,000 in 2018, mainly due to a decrease in pre-tax profit[66]. Cloud Services and Innovations - Kingdee's cloud business revenue grew by 54.7% year-on-year, reaching RMB1,313,595,000, accounting for 39.5% of total revenue[33]. - Kingdee's enterprise cloud services achieved 53.3% year-on-year growth, with revenue increasing from RMB605,095,000 to RMB927,375,000[33]. - Kingdee Cloud Cosmic generated approximately RMB60 million in revenue and signed 130 new customers, with total new contract value exceeding RMB200 million[34]. - Kingdee Cloud Galaxy's revenue increased by over 43.5% year-on-year to RMB868 million, with a customer dollar retention rate of 90%[36]. - Kingdee released the Kingdee Cloud Cosmic 2.0 version, adding over 100 enterprise applications across 20 cloud services[24]. - Kingdee aims to enhance competitiveness through the "Cosmic Platform + Finance & HR Application + Ecosystem" strategy[32]. - Kingdee is integrating project sales and execution into a unified system to serve high-quality large enterprise customers[32]. - The company is helping channel partners transform into service partners for collaborative growth[32]. - A Customer Success system is being built to enable all-around customer services[32]. Strategic Partnerships and Future Outlook - The company aims to expand its market presence through strategic partnerships and acquisitions[6]. - Kingdee formed joint ventures with industry leaders to expand into the industrial internet sector, enhancing its market presence[25]. - The long-term outlook for the enterprise cloud services industry remains positive despite the impact of the COVID-19 pandemic[28]. - Kingdee anticipates rising demand for cloud transformation post-COVID-19, similar to the consumer shift during the 2003 SARS crisis, with a focus on enhancing product competitiveness[95]. - The Group's cloud business is expected to significantly enhance profitability and consolidate its leadership in enterprise-grade SaaS services, despite potential pressure on profitability in the initial transformation year[95]. Corporate Governance and Management - Xu Shao Chun, the founder and CEO, has been awarded multiple honors for his contributions to the software industry, including the "World Indigenous Entrepreneur Award of the United Nations" and "Outstanding Leader of China's Information Industry"[96]. - Lin Bo, the CFO, has extensive experience in strategic planning and financial management, having joined the company in 1997 and held various managerial positions[97]. - Dong Ming Zhu, a non-executive director, is the chairman and president of Gree Electric Appliances, recognized for her innovative regional sales model in household appliances[99]. - Zhou Bo Wen, a non-executive director, has a Ph.D. in Electrical & Computer Engineering and extensive experience in AI and machine learning, previously serving as a chief scientist at IBM[100]. - Gary Clark Biddle, an independent non-executive director, is a leading expert in financial accounting and corporate management, with a strong academic background[102]. - Cao Yang Feng, an independent non-executive director, has a dual doctoral background in International Entrepreneurship and Human Resource Management, and has provided strategic consulting for large enterprises[103]. Social Responsibility and Community Engagement - Kingdee donated RMB 10 million to support frontline medical staff during the COVID-19 outbreak, demonstrating its commitment to social responsibility[95]. - The Group made charitable donations totaling approximately RMB 1,000,000 for the year ended December 31, 2019, compared to RMB 4,000,000 in 2018[133]. Employee and Talent Management - The total number of employees in the Group reached 8,903, focusing on talent activation, introduction, and development to support cloud transformation[93]. - The Group has established a rigorous capital management principle to ensure financial security and reduce capital costs, with a comprehensive budget management system approved by the Chief Financial Officer[90].
金蝶国际(00268) - 2019 - 年度财报