The letter of appointment was issued like a piece of paper, and at the same time, there was also information about the drastic layoffs of UFIDA network on social **. Relevant people said that the proportion of layoffs in this round is about 10%-30%.
textHan Xiang.
Yonyou Network, an enterprise management software giant, was "critically attacked" at the beginning of the year.
On January 3, Yonyou Network issued an announcement on personnel changes, and Wang Wenjing, chairman and president, applied for resignation from the position of president of the company, and continued to serve as the chairman of the company and members of the relevant special committees under the board of directors. Wang Wenjing is succeeded by Chen Qiangbing, whose term runs until the 2025 general meeting of shareholders. It is worth noting that Chen Qiangbing joined UFIDA in 2000 and served as president for two years from 2019 to 2021.
On January 26, Yonyou Network released its 2023 annual performance forecast. According to the data, Yonyou Network's net loss attributable to the parent in 2023 will be 88-9.800 million yuan, deducting non-net loss of 1.1-1.2 billion yuan.
At the same time as the release of the results of the "thunderstorm", the appointment and transfer of internal personnel of the UFIDA network are frequent, and a new round of "cost reduction and efficiency increase" is also slowly unfolding.
Deteriorating performance
Yonyou's performance changed face, appearing after 2019.
In 2019, Yonyou Network achieved a net profit attributable to the parent company of 118.3 billion yuan, a year-on-year increase of 9326%。In 2018, Yonyou's net profit attributable to the parent company increased by 57% year-on-year33% to 61.2 billion yuan. From 2020 to 2022, Yonyou Network's net loss attributable to the parent company is: 03% for 98.5 billion yuan, 70.8 billion and 2$1.9 billion.
The UF network is plummeting. The forecast for 2023 is a direct net loss of 88-9.800 million yuan. The Digital Intelligence Research Society found that this is the first time in 26 years that Yonyou Network has ushered in an annual loss.
At the same time, Yonyou's operating cash flow also deteriorated. The data shows that from 2018 to 2022, Yonyou Network's operating cash flow will achieve 204.3 billion yuan, 153.3 billion yuan, 161.3 billion yuan, 130.4 billion and 28.6 billion yuan, a year-on-year increase of 1920% and 7806% drop. In the first three quarters of 2023, Yonyou Network had a net operating cash outflow of 188.2 billion yuan.
The great change in performance has also affected the enthusiasm for investment in the capital market. In less than a month in 2024, Yonyou's share price has fallen by more than 30%. On January 29, the share price of Yonyou Network hit 12The 52-week low of 32 yuan shares, the total market value is only 42 billion yuan. You must know that in 2020, the market value of Yonyou Network will exceed more than 170 billion, ranking firmly on the throne of "enterprise management software giant". Now there is only a fraction left.
The dilemma faced by Yonyou Network is also a problem encountered by the famous "Southern Kingdee". According to the disclosed financial report data, Kingdee International's net loss attributable to the parent company in the first half of 2023 was 2800 million yuan. On a slightly better note, Kingdee International's operating income can still maintain a double-digit growth rate, which is gratifying.
Behind a new round of cost reduction and efficiency increase
From 1988, when Wang Wenjing resigned and went to sea to found UFIDA, to landing in the capital market in 2001, and then becoming the richest man in Jiangxi in 2015. The development history of Yonyou Network is also Wang Wenjing's personal development history. Since 1999, Wang Wenjing has served as the chairman of the board. In addition, Wang Wenjing served as president for 14 years from 2004 to 2019. Later, from 2021 to the present, Wang Wenjing has been the president for another three years. At the beginning of 2024, Wang Wenjing announced his departure as president.
In the magnificent historical process, the UFIDA network ushered in a "turning point". Industry insiders told the Digital Intelligence Research Agency that since 2024, Yonyou Network has issued more than 60 letters of appointment.
The letter of appointment was issued like a piece of paper, and at the same time, there was constant information on social ** that UF Network had drastic layoffs. Relevant sources told the Digital Intelligence Research Agency that the layoff ratio is about 10%-30%.
Behind the new round of cost reduction and efficiency increase is the unfavorable transformation of Yonyou Network.
When the traditional ERP software could not meet the needs of industry customers, Yonyou Network and Kingdee International started the road of transformation.
It is worth mentioning that Kingdee International took the lead in breaking the game. In 2014, Xu Shaochun, chairman of the board of directors of Kingdee International, smashed the client server to show his determination. It was also in this year that Yonyou Network began its transformation.
But it was Kingdee International that took the lead in achieving results. In 2019, Kingdee International took the lead in entering the EBC era from ERP. EBC stands for Enterprise Business Capability, which is characterized by high resilience and flexibility. Under the guidance of EBC, Kingdee International has built an enterprise-level PaaS platform, Kingdee Cloud Sky, and launched SaaS applications such as Xinghan, Xingkong and Xingchen for large, medium and small enterprise customers based on the firmament.
Not to be left behind, Yonyou Network has launched Yonbip, a business innovation platform for Yonyou. YONBIP is the integration of Yonyou with a new generation of information technology, with eight characteristics, such as digitalization, intelligence, and platformization. Similar to Kingdee International, Yonyou has also developed products such as YONBIP, YONSUITE, U9Cloud, U8Cloud and Chanjet for different types of enterprises according to different customer sizes.
Interestingly, it is precisely because of the transformation that the performance of Yonyou Network began to deteriorate. Judging from the performance in 2022, the growth rate of yonyou network's operating income this year is less than 9%, but the operating cost has risen by more than 37%. This year, selling expenses also jumped by 36%. In comparison, R&D expenses increased by only 24% year-on-year this year5%, far less than the growth rate of costs and sales expenses.
In other words, most of the current transformation of Yonyou Network is driven by the growth rate of sales revenue, rather than R&D and innovation. In this analysis, the UFIDA network that relies on sales promotion has greatly increased its costs, which has greatly reduced gross profit.
The transformation has not been effective, and in the face of competition, Yonyou Network has to reduce costs and increase efficiency in order to maintain its fundamentals. The Digital Intelligence Research Society believes that Chen Qiangbing, who has been working in UFIDA for more than 20 years, is an executive who has worked hard from the grassroots level, and he must have two brushes. Therefore, after the "labor pain", there is still hope for the UFIDA network to return to the upward track.
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