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 HK13.76 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 HK2,375.1 million in gross proceeds[18]. - The net proceeds from the placing were approximately HK17.65[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].
金蝶国际(00268) - 2023 - 中期财报