Yonyou(SH:600588) Sou Hu Cai Jing·2025-07-23 08:43Core Viewpoint - Yonyou Network, a leading enterprise management software company in China, has submitted its IPO application to the Hong Kong Stock Exchange amid declining performance and management instability, raising questions about its future prospects [1][16]. Group 1: Financial Performance - In 2024, Yonyou reported revenue of 9.153 billion yuan, a year-on-year decline of 6.57%, and a net loss of 2.061 billion yuan, a staggering year-on-year drop of 113.13% [1][8]. - This marks the second consecutive year of losses for Yonyou, with net profits decreasing from 11.83 billion yuan in 2019 to 2.19 billion yuan in 2022, and further into losses in 2023 and 2024 [6][8]. - The company attributed the revenue decline to two main factors: delayed customer demand and a shift towards a subscription business model, which impacted short-term revenue [8]. Group 2: Management Changes - Yonyou has experienced significant management upheaval, with three major changes in the core management team within 15 months, including the return of founder Wang Wenjing as president in March 2024 [1][15]. - The frequent turnover in leadership has raised concerns about the company's internal governance and stability, potentially affecting investor confidence [15][16]. Group 3: Market Position and Strategy - Yonyou's market capitalization has plummeted nearly 75% from its peak of 180 billion yuan to approximately 49.7 billion yuan, reflecting a loss of investor confidence [10]. - The company's cloud service revenue, which was expected to drive growth, has instead seen a decline, with revenue growth rates dropping from 55.5% in 2021 to -3.4% in 2024 [11]. - Yonyou's focus on customized cloud services has hindered its ability to scale effectively, contrasting sharply with competitors like Kingdee International, which reported a 13.4% growth in cloud service revenue in 2024 [11][12]. Group 4: Cost Management and Workforce - To manage costs amid declining revenues, Yonyou has implemented significant layoffs, reducing its workforce by 3,666 employees in 2024, while also incurring increased severance costs [14]. - Despite the layoffs, executive compensation has continued to rise, with average salaries for senior management reaching 1.744 million yuan in 2024, raising questions about cost management priorities [14][15].