Kingdee International Software GroupThe 2020 annual report will be released on March 24 and a performance conference will be held on the 25th. In 2020, Kingdee International Software Group's turnover was about 3.356 billion yuan, an increase of 0.9% over the same period last year, while the company's net profit lost 335 million, down 190.04% from the same period last year.
One bright spot is that during the reporting period, Kingdee Cloud's business revenue continued to grow, with an increase of 45.6% over the same period last year, rising from 39.5% in 2019 to 57.0% in 2020. Due to the strong growth of cloud subscription business, the contract liabilities related to subscription services increased by 95.7% compared with the same period last year, and the annual recurrent income of Jindieyun subscription ARR was about 1 billion yuan, an increase of 58% over the same period last year.
At the same time, enterprise resource management planning (ERP) revenue fell 28.2 per cent year-on-year. According to the annual report, the company continued to deepen its cloud transformation, taking the initiative to stop the sale of KIS and Kame3 WISE, and Kingdee EAS software business dropped by about 22.3% compared with the same period last year. Lin Bo, CFO of Kingdee Group, said at the results meeting that the end products of two traditional software, K/3WISE and KIS, were high-margin distribution products, and the company's gross margin fell 6.5 per cent after the suspension of sales.
The current loss attributable to the company's equity holders was 335 million in 2020, but Kingdee International Software Group made a profit of 373 million yuan in 2019, and the net profit changed from profit to loss, mainly because Kingdee International Software Group vigorously implemented the transformation strategy of cloud subscription model, actively stopped selling some ERP software licensed products and increased investment in R & D of cloud products such as Sky.
Xu Shaochun, chairman of the board of directors of Kingdee Group and CEO, expressed the hope that investors will not focus on short-term profits, but on some indicators adapted to the cloud transformation, including cash flow and cloud subscription, and plans to use the subscription model to build a new Kingdee in the next three years.
Kingdee's main products are Golden Butterfly Cloud Sky, Golden Butterfly Cloud Star, Golden Butterfly Cloud Star, respectively for large, medium and small enterprises. Among them, Sky Cloud is the first native cloud architecture platform in China whose core goal is to build the five capabilities of EBC.
[reporter] Li Ronghua
[author] Li Ronghua
[source] Southern newspaper Media Group Nanfang + client