Company Overview - Kingdee ranks first in China's SaaS ERM market and maintains the largest market share in SaaS EA and Finance Cloud services[2]. - Kingdee has provided management software and cloud services to over 7.4 million enterprises, governments, and organizations globally[3]. - Kingdee is recognized as a leader in both industry empowerment value and technology service capability in the CAICT's 2022 report[2]. - Kingdee's headquarters is located in Shenzhen, China, and it is listed on the Hong Kong Stock Exchange[1]. - Kingdee has maintained the largest share in the enterprise application software sector for fast-growing enterprises for 18 consecutive years[121]. - The company has held the largest share in the enterprise-grade SaaS ERM and financial Cloud services industry for five consecutive years[121]. Financial Performance - Revenue for 2022 reached RMB 4,865,769, an increase of 16.5% from RMB 4,174,147 in 2021[16]. - The company reported a loss attributable to owners of RMB (389,158) in 2022, compared to a loss of RMB (302,330) in 2021[16]. - Kingdee Cloud service revenue grew by 34.6% to RMB 3,714 million, accounting for 76.3% of total revenue[18]. - The annual recurring revenue (ARR) for Kingdee Cloud subscription was approximately RMB 2.14 billion, representing a year-on-year growth of 36.3%[18]. - Total revenue for the year ended December 31, 2022, was approximately RMB 4.866 billion, representing a 16.6% increase compared to RMB 4.174 billion in 2021[28]. - Loss attributable to owners of the Company for 2022 was approximately RMB 389.2 million, compared to a loss of approximately RMB 302.3 million in 2021[29]. - Basic loss per share attributable to owners of the Company was approximately RMB 11.31 cents, up from RMB 9.23 cents in 2021[30]. - Gross profit for the Group was approximately RMB 2,997,633,000, a year-on-year increase of 13.8%, with a gross profit margin of approximately 61.6%[63]. Cloud Services and Products - Kingdee's major cloud service products include Kingdee Cloud Cosmic, Kingdee Cloud Constellation, Kingdee Cloud Galaxy, and Kingdee Cloud Stellar[3]. - Kingdee Cloud Cosmic and Constellation's domestic substitution solutions have matured, supporting comprehensive substitutions for major Top 500 enterprises, enhancing digital technology capabilities[43]. - Kingdee Cloud Galaxy achieved revenue of approximately RMB1,679 million, an increase of 18.4% year-over-year, with an annual recurring revenue (ARR) growth of 31.2% year-over-year and a dollar retention ratio of 97.2%[46]. - Kingdee Cloud Stellar's revenue increased by approximately 358.6% year-over-year, with SME financial cloud services revenue growing by approximately 63.1% year-over-year and a dollar retention ratio of 77.3%[50]. Strategic Focus and Goals - The company aims to help businesses achieve growth targets through dedicated services and trusted enterprise service platforms[1]. - Kingdee plans to continue focusing on the core strategy of "Platform + Finance & HR & Tax + Ecosystem" in 2023, aiming to strengthen its position in the SOE and Top-500 enterprise market[23]. - The company aims to expand its leadership in the manufacturing sector and create a second wave of growth with Galaxy Ultra in the medium enterprise market[23]. - Kingdee aims to create a cloud subscription model and is in the concluding year of its three-year strategy, celebrating its 30th anniversary in 2023[110]. Customer and Market Engagement - Kingdee has signed contracts with 154 large enterprises to assist in domestic substitution, enhancing its reputation in the high-end market[22]. - Kingdee's cloud subscription renewal rates remained strong, with rates exceeding 110% for certain services[22]. - The customer base of Kingdee Cloud Galaxy reached 31,000, with nearly 1,000 new enterprise customers signed during the reporting period[46]. Research and Development - Kingdee has applied over 260 patents and won five national-level awards, becoming a member of the first batch of packageable application promotion centers organized by CAICT[43]. - Total research and development costs were approximately RMB1,458,246,000, reflecting a 15.7% year-over-year increase, with R&D expenses recognized in the consolidated income statement increasing by approximately 9.4% to RMB1,295,476,000[65]. Governance and Management - The Board of Directors consists of executive, non-executive, and independent non-executive directors, with independent directors exceeding one-third of the Board during the reporting period[192]. - The term of appointment for each director is two years, with mandatory rotation every three years at the AGM[193]. - The company has established mechanisms for directors to seek independent professional advice to ensure effective governance[192]. Shareholder Information - The Company reported distributable reserves amounting to RMB5,027,537,000 as of 31 December 2022, a slight increase from RMB5,013,833,000 in 2021[124]. - The Board does not recommend the declaration and payment of a final dividend for the year ended 31 December 2022, consistent with the previous year where no dividend was declared[124]. - A total of 8,390,000 ordinary shares were issued during the year due to the exercise of share options, generating HK$28,217,960 in total[125]. Risk Management - The Group manages credit risk by transacting with high-credit-quality financial institutions in mainland China and Hong Kong[97]. - The Group has established a disciplined fund management principle to efficiently manage market risks and maintain a strong cash position[98]. - The Group's expected credit loss assessment indicated that the majority of loans were in stage 1, with no significant change in credit quality for both 2022 and 2021[85].
金蝶国际(00268) - 2022 - 年度财报