Share Options and Awards - A total of 529,501,600 share options were granted under the 2005 Scheme, with 320,723,193 options exercised and 203,594,907 options lapsed, leaving 5,183,500 options outstanding as of June 30, 2022[3]. - Under the 2015 Scheme, 40,000,000 share options were granted, with 22,291,000 options exercised and 8,945,000 options lapsed, resulting in 8,764,000 options outstanding as of June 30, 2022[3]. - During the reporting period, 3,706,000 share options were exercised and 2,762,500 options lapsed, with no new options granted or cancelled[3]. - The Share Award Scheme, adopted on December 4, 2015, is valid for 10 years and aims to incentivize certain employees and directors[7]. - The maximum number of shares awarded under the Share Award Scheme shall not exceed 3% of the issued share capital of the Company at any time[8]. - The remaining life of the 2015 Scheme was approximately 2 years and 8 months as of the report date[3]. - No share options were granted or cancelled during the reporting period[6]. - 3,564,000 share options were exercised during the reporting period under the 2015 Scheme[3]. - The Company may further grant 228,209,096 share options under the 2015 Scheme, representing approximately 6.57% of the total number of shares[3]. - A total of 7,207,500 awarded shares were granted under the Share Award Scheme during the reporting period, with 1,337,500 shares still outstanding as of June 30, 2022[10]. - The company has a cap on the number of awarded shares that can be granted to any participant, limited to 1% of the issued share capital within any 12-month period[9]. - The Share Award Scheme is effective for 10 years from its adoption date, December 4, 2015[9]. Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 2,196,656,000, representing a 17.3% increase compared to RMB 1,872,399,000 in the same period of 2021[51]. - Loss attributable to owners of the Company for the first half of 2022 was approximately RMB 356,441,000, compared to a loss of RMB 248,108,000 in the same period of 2021[51]. - Basic loss per share attributable to owners of the Company was approximately RMB 10.38 cents, compared to RMB 7.25 cents in the first half of 2021[51]. - The Group reported an operating loss of approximately RMB 453,567,000, compared to an operating loss of approximately RMB 354,584,000 in the same period last year[65]. - The current loss attributable to owners of the Company was approximately RMB 356,441,000, with a net loss margin of approximately 16.2%[65]. - The Group recorded a gross profit of RMB 1,330,808,000, representing a year-over-year increase of approximately 13.3%, while the gross profit margin decreased by 2.1 percentage points to approximately 60.6%[64]. - The company reported a total comprehensive loss of RMB 392,804 for the period, compared to RMB 285,451 in the same period of 2021[96]. - The company reported a loss for the period of RMB (388,857,000) for the six months ended June 30, 2022[99]. - The company reported a net cash outflow from operating activities of approximately RMB (179,869,000), compared to RMB (96,513,000) in the same period of 2021[51]. Revenue Breakdown - Revenue from the cloud service business grew by approximately 35.5% year-over-year from RMB 1,238,258,000 in the same period in 2021 to RMB 1,677,482,000, accounting for 76.4% of the Group's total revenue[53]. - Revenue from the ERP business and others decreased by 18.1% year-over-year to RMB 519,174,000, down from RMB 634,141,000 in the same period last year[61]. - Revenue from external customers for the six months ended June 30, 2022, was RMB 2,179,205,000, an increase of 17.3% compared to RMB 1,857,328,000 in the same period of 2021[122]. - Revenue from services transferred over time amounted to RMB 2,021,187,000, while revenue from products transferred at a point in time was RMB 175,469,000[118]. - The enterprise cloud services segment generated RMB 1,161,330,000, up from RMB 868,670,000, reflecting a growth of 33.7%[183]. Cash Flow and Liquidity - Cash and cash equivalents decreased significantly to RMB 1,078,333 from RMB 2,046,815, highlighting liquidity challenges[90]. - The company reported a net cash outflow from investing activities of RMB (694,852,000) for the six months ended June 30, 2022, compared to RMB (1,195,000,000) in the same period of 2021[102]. - The company reported a net decrease in cash and cash equivalents of RMB 972,683,000, compared to RMB 1,417,947,000 in the same period last year[104]. - The Group's cash and bank deposits totaled approximately RMB 3,713,459,000 as of June 30, 2022, compared to RMB 3,747,373,000 as of December 31, 2021[80]. - The current ratio of current assets to current liabilities was approximately 1.03 as of June 30, 2022, with net current assets amounting to approximately RMB 83,675,000[80]. Research and Development - The Group is committed to increasing investment in product research and development, particularly in Kingdee Cloud products[51]. - Research and development costs were approximately RMB 794,806,000, representing a 19.0% year-over-year increase, with R&D expenses as a percentage of revenue decreasing to 31.8%[64]. - Research and development costs for the six months ended June 30, 2022, amounted to RMB 794,806, an increase of 19% from RMB 667,911 in 2021[186]. Corporate Governance - The company complied with all code provisions of the Corporate Governance Code throughout the reporting period, except for the roles of chairman and chief executive officer[42]. - The audit committee reviewed the unaudited consolidated results for the reporting period and confirmed compliance with applicable accounting standards[48]. - Mr. Xu Shao Chun served as both Chairman and Chief Executive Officer during the reporting period, which the board believes is beneficial for the company's development[42]. - The company aims to enhance its corporate governance and internal controls, as well as improve communication with investors and stakeholders[43]. Employee and Talent Management - The total number of employees in the Group reached 11,708 during the reporting period[85]. - Employee benefit expenses rose to RMB 1,906,823, up 23% from RMB 1,545,690 in the previous year[186]. - Kingdee's ecosystem partners recruited over 500 digital talents during the reporting period[87]. Market and Economic Conditions - The adverse impact on project delivery efficiency was noted due to the continuation of the COVID-19 pandemic[51]. - The impact of COVID-19 has adversely affected project implementation efficiency, leading to uncertainties in financial performance[105]. - The Group continues to monitor the effects of COVID-19 on its financial position and operating results[105].
金蝶国际(00268) - 2022 - 中期财报