Investment Rating - The report maintains a "Buy" rating for Kingdee International with a target price of HKD 18.21 per share [1] Core Views - Kingdee's subscription-based cloud service revenue demonstrates strong resilience, with a 16.7% YoY growth in 2023, indicating a performance inflection point [1][6] - The company's gross margin increased by 2.6 PCT in 2023, while sales, management, and R&D expense ratios decreased by 0.8 PCT, 1.8 PCT, and 1.2 PCT respectively, signaling a successful subscription model transition [1][6] - Contract liabilities related to cloud subscriptions grew by 29.6% YoY in 2023, indicating strong future revenue growth potential [1][6] - Operating cash flow increased by 75% YoY in 2023, reaching RMB 653 million, suggesting a bottoming out and potential for further release [1][6] Financial Performance - 2023 revenue reached RMB 5.679 billion, a 16.7% YoY increase, with a net loss attributable to shareholders narrowing to RMB 210 million, a 46% reduction from the previous year [1][2] - Cloud business revenue grew 21.3% YoY to RMB 4.505 billion, accounting for 79.3% of total revenue, with ARR increasing by 33.1% to RMB 2.86 billion [3] - Gross margin improved to 64.2% in 2023, up from 61.6% in 2022, driven by the increasing proportion of subscription revenue [3] - R&D investment reached RMB 1.51 billion, a 3.5% YoY increase, with a capitalization rate of 31.7% [3] Business Segments - The enterprise resource management (ERP) and other businesses generated RMB 1.174 billion in revenue, a 1.9% YoY increase [3] - The cloud business for large enterprises (including the Cangqiong PaaS platform and Xinghan SaaS) achieved RMB 981 million in revenue, a 40.9% YoY growth, with a renewal rate of 105.3% [3][10] - The Xingkong cloud business generated RMB 1.952 billion in revenue, a 16.2% YoY increase, with a 97.2% renewal rate and 39,000 customers [3][11] Future Projections - The report forecasts 2024, 2025, and 2026 revenues of RMB 6.595 billion, RMB 7.671 billion, and RMB 9.030 billion respectively, with YoY growth rates of 16.1%, 16.3%, and 17.7% [13] - The company is expected to achieve positive net profits starting from 2025, with RMB 303 million and RMB 466 million in 2025 and 2026 respectively [13] Valuation - The report applies a 9x PS valuation multiple for 2024, based on comparable company valuations, resulting in a target price of HKD 18.21 per share [13]

申万宏源研究 上海市南京东路99号 | +86 21 2329 7818 www.swsresearch.com 简单金融 成就梦想 计算机 | 公司研究 经营性现金流高增，AI 引领抢滩大型企业 2024年3月20日 金蝶国际 (0268.HK) 买入 公司发布2023年全年业绩，符合市场预期。据公司报告，公司2023全年实现收入56.79亿元， yoy +16.7%；归母净亏损2.10亿元，亏损同比缩窄约46%。业绩符合市场预期。 维持 经营性净现金流高增，云转型成果显著。据公司公告，公司报告期内营运活动产生的净现金流入约 6.53亿元，yoy+74.5%，展现高经营质量。云服务业务实现收入45.05亿元，yoy+21.3%，占比 集团收入79.3%。订阅服务年经常性收入（ARR）约为28.6亿元，yoy+33.1%，云订阅服务相关 市场数据：2024年3月19日 合同负债实现同比增29.6%。 收盘价（港币） 9.32 恒生中国企业指数 6146.99 业绩目标彰显长期发展信心。据公司业绩交流会，公司在2024-2026年坚持订阅优先、AI优先战 52周最高/最低价 (港币) 14.74/7.22 略， ...

M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update Kingdee (268 HK) Steady rev growth with on-track loss reduction Target Price HK$15.50 Kingdee reported 2023 financial results: revenue was RMB5.7bn, up 17% YoY (Previous TP HK$15.10) (2022: 17% YoY), and net loss attributable to ordinary shareholders was Up/Downside 66.3% RMB210mn (2022: loss of RMB389mn), both in line with our estimate and Current Price HK$9.32 Bloomberg consensus. Kingdee’s loss reduction effort was on tra ...

2024年3月20日 公司研究 保持订阅+AI 优先战略，加速出海业务布局 ——金蝶国际（0268.HK）2023 年度业绩点评 要点 买入（维持） 事件：公司公告23年度业绩，实现总收入56.79亿元人民币，同比增长16.7%； 当前价：9.32港元 其中传统ERP业务收入同比增长2%至11.74亿，云服务业务实现收入45.05 亿元，同比增长21%，收入占比同比提升3pct至79.3%。实现毛利润36.44 亿元，对应毛利率 64.2%，同比提升 2.6pct，主要系云服务收入占比进一步 作者 提高以及云基础设施成本降低；实现归母净亏损2.1亿元，同比收窄46.1%。 分析师：付天姿 执业证书编号：S0930517040002 云订阅服务模式持续推进，加速出海业务布局。云服务业务持续高质量增长， 021-52523692 收入同比增长21%至45.05亿元，占比总收入约79.3%，云订阅服务年经常 futz@ebscn.com 性收入（ARR）同比上升33.1%至28.6亿元，云订阅服务相关的合同负债同 比增长29.6%。1）加速抢占大型企业市场：23年苍穹+星瀚签订合同金额14 联系人：杨朋沛 亿元，实 ...

Financial Performance - The company's revenue for the year ended December 31, 2023, increased by approximately 16.7% to about RMB 5,679,073,000, with cloud services revenue growing by about 21.3%, accounting for 79.3% of total revenue[3]. - The net loss attributable to equity holders for the period was approximately RMB 209,890,000, a reduction from RMB 389,158,000 in the previous year, indicating improved operational quality[5]. - The annual recurring revenue (ARR) from cloud subscription services reached approximately RMB 2.86 billion, reflecting a year-on-year growth of 33.1%[5]. - The net cash inflow from operating activities was approximately RMB 653,319,000, representing a year-on-year increase of about 74.5%[5]. - Total revenue from contracts with customers reached RMB 5,679,073 thousand in 2023, a rise of 16.7% compared to RMB 4,865,769 thousand in 2022[27]. - Gross profit improved to RMB 3,643,989 thousand in 2023, up from RMB 2,997,633 thousand in 2022, marking a growth of 21.6%[27]. - The company reported a net loss before tax of RMB 301,126 million, a decrease from a loss of RMB 474,218 million in the prior year, reflecting a reduction of about 36.5%[46][48]. - The total comprehensive loss for the year was RMB 202,725 thousand in 2023, compared to RMB 366,541 thousand in 2022, indicating a reduction in comprehensive loss of 44.6%[29]. Cloud Services - Kingdee's cloud services revenue grew from RMB 3,714,093,000 in the previous year to RMB 4,504,983,000, marking a year-on-year increase of approximately 21.3%[10]. - Kingdee Cloud's revenue from the Cloud services, including Cangqiong and Xinghan, reached approximately RMB 981 million, representing a year-on-year growth of about 40.9%[13]. - The subscription Annual Recurring Revenue (ARR) for Cangqiong and Xinghan increased by approximately 48.7%, with a Net Dollar Retention (NDR) rate of 105.3%[13]. - Kingdee Cloud's Xinghan achieved revenue of approximately RMB 1.952 billion, with a year-on-year growth of about 16.2%[15]. - The subscription ARR for Xinghan grew by approximately 29.2%, with an NDR of 97.2% and a customer base of around 39,000[15]. - Revenue recognized from contract liabilities related to cloud services was RMB 1,773,859,000, an increase of 34.4% from RMB 1,320,693,000 in 2022[53]. Strategic Initiatives - The company launched the enterprise-level large model capability platform, Kingdee Cloud·Cangqiong GPT, which integrates with major models from Baidu and Microsoft, enhancing its offerings for complex business scenarios[11]. - The company aims to build a world-class ecosystem by collaborating with leading international consulting and implementation partners to address modern enterprise management challenges[7]. - Kingdee's cloud subscription service model transformation is a key strategic focus, aiming to redefine delivery models and partner relationships in the cloud era[7]. - The company plans to continue expanding its cloud services and ERP business, focusing on innovation and market penetration strategies[46]. Market Position and Recognition - The company received multiple accolades, including being recognized as the top player in the Chinese market for SaaS ERP and financial cloud services by IDC in 2023[9]. - Kingdee has helped a total of 221 enterprises complete domestic substitution, enhancing its market position[13]. - The company signed contracts with over 1,400 national and provincial specialized enterprises during the reporting period, with a market share of 43% in the national "little giant" category[15]. Financial Health - Total assets increased to RMB 14,139,197 thousand in 2023, up from RMB 11,731,437 thousand in 2022, representing a growth of 20.5%[23]. - Cash and cash equivalents increased significantly to RMB 2,963,723 thousand in 2023 from RMB 1,942,735 thousand in 2022, reflecting a growth of 52.5%[25]. - Total liabilities rose to RMB 5,437,045 thousand in 2023, compared to RMB 4,323,854 thousand in 2022, an increase of 25.8%[25]. - The company's equity increased to RMB 8,702,152 thousand in 2023 from RMB 7,407,583 thousand in 2022, a growth of 17.4%[25]. - The company reported a net financial income of RMB 90,315 thousand in 2023, down from RMB 100,276 thousand in 2022, a decrease of 9.7%[27]. Research and Development - Research and development costs increased to RMB 1,439,671 thousand in 2023, up from RMB 1,295,476 thousand in 2022, representing an increase of 11.1%[27]. - The company plans to continue expanding its cloud services and enhance R&D efforts to drive future growth[96]. Shareholder Information - The company did not recommend the distribution of dividends for the year ended December 31, 2023, consistent with the previous year[110]. - The company issued shares resulting in proceeds of RMB 1,411,847 thousand in 2023, compared to no proceeds in 2022[34]. - The company repurchased a total of 5,571,000 shares for a total consideration of HKD 68,618,000 (approximately RMB 61,138,000) for its employee share award plan[86]. Risk Management - The company faced foreign exchange risk primarily from fluctuations in the exchange rates between RMB and USD, as well as RMB and HKD, which could impact its financial position and operating results[149]. - The company has established a rigorous capital management principle to effectively manage market risks and maintain a solid debt structure[155].

Share Options and Awards - As of June 30, 2023, a total of 529,501,600 share options were granted under the 2005 Scheme, with 322,469,193 options exercised and 205,222,407 options lapsed, leaving 1,810,000 options outstanding[4]. - The 2015 Scheme has a remaining term of approximately 1 year and 8 months, with 7,261,000 share options outstanding as of June 30, 2023, allowing for the potential grant of 228,409,096 additional options[4]. - The exercise price of share options is determined by the Board and cannot be less than the highest of the closing price on the grant date, the average closing price for the five trading days prior, or the nominal value of the shares[5]. - The vesting period for share options is four years, with 25% vesting at the end of each year, and all options granted have been fully vested[7]. - The weighted average closing price prior to the exercise of share options was approximately HK$16.42 for Mr. Lin Bo and HK$13.76 for other employees[7]. - The Share Award Scheme, adopted on December 4, 2015, is valid for 10 years, with approximately 2 years and 4 months remaining as of the report date[8]. - The award shares in the Share Award Scheme are held in trust until vested, with no specified payment required upon acceptance of an award[9]. - The number of award shares available for grant under the Share Award Scheme decreased from 81,235,953 at the beginning of the reporting period to 62,227,753 at the end of the reporting period[12]. - During the half year ended June 30, 2023, the company granted 7,997,000 award shares under the Share Award Scheme[12]. - The maximum number of shares that may be awarded to a selected participant under the Share Award Scheme in any twelve-month period is capped at 1% of the issued share capital, which is currently 104,291,048 shares[11]. - The vesting schedule for the share options is set at four years, with 25% vesting at the end of each year[11]. - The weighted average closing prices before exercise for Mr. Lin Bo and other employees were approximately HKD 16.42 and HKD 13.76, respectively[11]. - No share options were cancelled during the half year ended June 30, 2023[11]. - The remaining term of the Share Award Scheme is approximately two years and four months as of the report date[11]. - The company has not exceeded the 3% limit on the nominal value of shares awarded under the Share Award Scheme, which excludes any vested shares[11]. - The total number of shares vested during the reporting period was 300,000 shares[13]. - The company aims to incentivize and reward contributions from certain employees and directors through the Share Award Scheme adopted on December 4, 2015[11]. Financial Performance - In the first half of 2023, the Group achieved a 21.5% year-over-year growth in cloud services revenue, contributing approximately 79.5% of total revenue[53]. - The Annual Recurring Revenue (ARR) for Kingdee Cloud subscription services reached approximately RMB2.54 billion, marking a 36.3% year-over-year increase[53]. - Total revenue for the six months ended June 30, 2023, was approximately RMB2,565,850,000, representing a 16.8% increase compared to the same period in 2022[53]. - Loss attributable to owners of the Company narrowed to approximately RMB283,535,000, a reduction of about 20.5% year-over-year[53]. - Basic loss per share attributable to owners of the Company was approximately RMB8.23 cents, compared to RMB10.38 cents in the same period of 2022[53]. - Net cash flow from operating activities was an outflow of approximately RMB168,887,000, an improvement from RMB179,869,000 in the prior year[53]. - The Company continues to adhere to the strategy of "Platform + Finance & HR & Tax + Ecosystem" to enhance enterprise service capabilities[53]. - Kingdee aims to become the "most trustworthy enterprise service platform" to support enterprises in achieving high-quality development[53]. Capital Raising and Use of Proceeds - The company completed the placing of 133,280,000 new shares at a price of HK$17.82 per share, raising approximately HK$2,375.1 million in gross proceeds[18]. - The net proceeds from the placing were approximately HK$2,353.0 million, with a net price per placing share of approximately HK$17.65[19]. - The intended use of proceeds from the placing includes maintaining cash flow, enhancing the capital base, and preparing for future investments, particularly in cloud transformation[18]. - The company raised capital to support its cloud transformation through the placing of shares[18]. Corporate Governance - The company complied with all corporate governance code provisions except for the roles of chairman and CEO being held by Mr. Xu Shao Chun[43]. - The company is committed to enhancing corporate governance and internal controls[44]. - All directors confirmed compliance with the code of conduct regarding securities transactions throughout the reporting period[45]. - The company is committed to ongoing improvements in corporate governance and compliance training for its directors and staff[46]. Shareholder Information - As of June 30, 2023, the total number of issued shares was approximately 3,476,328,271[27]. - Xu Shao Chun holds a beneficial ownership of 20,833,683 shares, representing 0.60% of the total issued shares[21]. - Lin Bo has a beneficial ownership of 1,703,265 shares, accounting for 0.05% of the total issued shares[22]. - The total aggregate interests of directors and chief executives in shares and underlying shares amounted to 703,419,807, representing 20.23% of the total issued shares[22]. - Easy Key Holdings Limited holds 682,198,624 shares, representing 19.62% of the issued share capital[35]. - Oriental Tao Limited and Billion Tao Limited hold 386,312,000 shares and 295,886,624 shares, representing 11.11% and 8.51% respectively[35]. - JPMorgan Chase & Co. has a total interest in 27,129,987 shares, accounting for 0.78% of the issued share capital[35]. - The company reported no substantial shareholders with interests that required disclosure under the Securities and Futures Ordinance as of June 30, 2023[33]. Research and Development - Research and development funding amounted to 1,176,850, representing 50.0% of the allocated funds[20]. - The company reported a significant increase in purchases of property, plant, and equipment, totaling RMB 221,205,000 for the first half of 2023, compared to RMB 79,248,000 in the same period of 2022[108]. - Research and development expenses totaled approximately RMB829,188,000, an increase of 4.3% year-over-year, with the R&D capitalization rate rising to 32.7%[66]. Financial Position and Cash Flow - The Group recorded a gross profit of approximately RMB1,588,770,000, a year-over-year increase of approximately 19.4%, with a gross profit margin of approximately 61.9%[66]. - Selling and marketing expenses totaled approximately RMB1,142,317,000, representing an increase of 8.8% year-over-year, and decreased as a percentage of revenue from 47.8% to 44.5%[66]. - Administrative expenses amounted to approximately RMB238,954,000, reflecting a year-over-year increase of 2.1%, with the percentage of administrative expenses to revenue decreasing from 10.7% to 9.3%[66]. - The Group recorded an operating loss of approximately RMB388,191,000, an improvement from a loss of approximately RMB453,567,000 in the same period last year[67]. - The current loss attributable to owners of the Company was approximately RMB283,535,000, with a net loss margin of approximately 11.1%[67]. - The Group's total cash and bank deposits of RMB3,800,840,000 as of June 30, 2023, down from RMB4,296,103,000 as of December 31, 2022[81]. - The Group's borrowings amounted to RMB707,500,000 as of June 30, 2023, compared to RMB470,000,000 as of December 31, 2022[81]. - The Group's gearing ratio was 65.07%, an increase from 58.37% as of December 31, 2022[81]. Market and Customer Insights - Kingdee Cloud Cosmic and Kingdee Cloud Constellation are positioned as leading products for large enterprises, enhancing AI integration and innovation in enterprise management[58]. - Kingdee Cloud Cosmic and Constellation recorded approximately RMB393 million in revenue, an increase of 38.3% year-over-year, with cloud subscription ARR growth of approximately 95.9% year-over-year and Net Dollar Retention (NDR) of 108%[59]. - Kingdee Cloud Galaxy achieved revenue of approximately RMB922 million, an increase of 17.3% year-over-year, with cloud subscription ARR expansion of approximately 28.6% year-over-year and NDR of 96%[60]. - Kingdee Cloud Stellar's revenue increased by approximately 152.9% year-over-year, with NDR rising to 89%[60]. - The number of customers for Kingdee Cloud Galaxy expanded to 34,000, with new clients including Songyang Compressor and COSCO Shipping Special Equipment Manufacturing[60]. - Financial cloud services for small and micro enterprises achieved revenue of approximately RMB501 million, increasing by approximately 31.8% year-over-year, with cloud subscription ARR growth of approximately 45.0% year-over-year[60]. Taxation and Compliance - The current income tax for the six months ended June 30, 2023, was RMB 2,138,000, slightly down from RMB 2,341,000 in 2022, a decrease of 8.7%[199]. - Kingdee China is expected to qualify for a preferential corporate income tax rate of 10% based on management's assessment of meeting relevant requirements[199]. - Several subsidiaries were recognized as High-tech Enterprises, entitled to a preferential tax rate of 15% for the period ended June 30, 2023[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不會就本公佈全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 金 蝶 國 際 軟 件 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股票號碼：268） 截至二零二三年六月三十日止六個月之 中期業績公佈 金蝶國際軟件集團有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬公 司（「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合中期業績如下： 截至二零二三年六月三十日止六個月的財務摘要 − 收入較二零二二年同期增長約 16.8%至約人民幣 2,565,850,000元 − 于二零二三年上半年，本公司權益持有人應佔當期虧損約人民幣 283,535,000 元 （二零二二年同期虧損約人民幣356,441,000 元） ...

·°。Kingdee ● Kingdee International Software Group Company Limited 金蝶國際軟件集團有限公司 Stock Code 股份代號：268 ２０２２-年 報 ANNUAL REPORT Established in 1993, Kingdee International Software Group Company Limited ("Kingdee International" or "Kingdee") is listed on the Main Board of the Hong Kong Stock Exchange (stock code: 0268.HK) and headquartered in Shenzhen, China, and has become a leader in the international market and the best player in China's market as a management cloud SaaS vendor. Adhering to the core values of " ...

金蝶國際軟件集團有限公司 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不會就本公佈全部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 金 蝶 國 際 軟 件 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股票號碼：268） 截至二零二二年十二月三十一日止年度之 全年業績公佈 金蝶國際軟件集團有限公司(「金蝶國際」或「本公司」)董事會(「董事會」)謹此公佈本 公司及其附屬公司(「本集團」)截至二零二二年十二月三十一日止年度之經審核綜合業 績，連同截至二零二一年十二月三十一日止年度之經審核綜合業績比較如下： 截至二零二二年十二月三十一日年度的財務摘要 － 收入較二零二一年增長約16.6%至約人民幣4,865,769,000元（二零二一年收入約 人民幣4,174,147,000元），其中雲服務業務收入較二零二一年增長約34.6%，占比由 二零二一年66.1%提升至76.3%。 － 本公司權益持有人應 ...