With its excellent business performance and continuous improvement of quality, Kingdee has delivered a satisfactory report card to the world at the age of 30. It has not only launched the industry's first financial model, but also become the preferred choice for many large enterprises to replace localization. As a leader in the field of information innovation in China, Kingdee has taken the lead in the wave of global digital transformation. Moreover, the above impressive results are created in an environment of increasing downward pressure on the economy.
Losses narrowed, and a number of performance hit historic records.
In the 2023 performance forecast released by Kingdee International, a number of estimated data show an excellent performance"Exceeded expectations"Transcript, revenue is steady**, and performance is rising.
The specific announcement is as follows: It is expected that the group will achieve revenue of about 56 in 20236-5.7 billion yuan, a year-on-year increase of 162%-17.2%;The loss is about 17-2.500 million yuan, a year-on-year decrease of 1400 million - 2RMB 200 million; Net cash flow from operating activities was approximately 63-6.700 million yuan, a significant increase of 68 percent year-on-year3%-78.9%;The cloud subscription ARR is about 28500 million yuan, a year-on-year increase of 328%。
The above data is enough to prove that Kingdee, with its steady growth in total revenue, is a leader in the software &SaaS industry. Net cash flow amounted to approximately 63-6.700 million yuan, the company's operation and financial status are relatively high-quality; Due to the adjustment of business strategy, it is expected to achieve significant cost reduction and efficiency increase throughout the year, and reduce losses year-on-year. In addition, net cash inflows from operating activities are expected to increase significantly to more than 70% this year.
The results of developing large-scale markets are dazzling.
The narrowing of Kingdee's revenue loss already indicates that its high-end market performance has tended to be good. Sales of the main products, Kingdee Cloud Sky and Kingdee Cloud Xinghan, are expected to achieve rapid growth in the high-end market, resulting in a significant improvement in profitability. It is reflected in the signing of projects, especially in the development of large markets.
In terms of project signing, Kingdee Cloud Sky and Kingdee Cloud Xinghan won the first credit in major projects, which shows the strength of their products. As of the first half of the year, the two companies have worked hand in hand with 741 customers, and this year they have successfully attracted 297 important new customers, such as China National Building Materials Group, Shanxi Guoyun and other well-known enterprises. In the second half of the year, it also achieved remarkable results, winning a number of benchmark projects one after another, including Dongfeng Motor, Minmetals Nonferrous Metals, Guangzhou Trading Investment Group, etc., and the winning bids for many projects exceeded 10 million.
In the face of the good results in 2023, many investors also prefer Kingdee. On December 10, 2023, Kingdee entered into a strategic investment agreement with the Qatar Investment Authority, one of the world's largest and most active sovereign wealth**, to invest approximately US$200 million as consideration for the ordinary shares issued by Kingdee under a general mandate, which will account for approximately 426% ("Strategic Investment") with a 180-day lock-up period.
It is foreseeable that Kingdee's overseas market development will also usher in a "qualitative change moment".
In the field of information and innovation, localization substitution has become the first choice.
According to CMB International's latest research report, Kingdee's loss reduction is on track with the help of effective cost control. In the current macro context, digitalization and domestic substitution may still be important long-term trends, and Kingdee is expected to benefit. Compared with its peers, Kingdee's subscription services account for a higher proportion of revenue, and the certainty of revenue growth in 2024 may be higher.
According to the 2023 mid-year performance report, Kingdee has so far helped 177 large Chinese enterprises complete the localization and replacement of key IT systems.
Firmly grasping the opportunity of the comprehensive promotion of the localization substitution of information and innovation, Kingdee has become the preferred localization alternative service provider for large domestic enterprises. Among the cases of domestic benchmarking enterprises completed by Kingdee to achieve domestic substitution, there are well-known enterprises such as Yunnan China Tobacco, Huahai Communications, Yixintang, Weichai Lovol, etc., which proves that Kingdee's ability to carry out domestic substitution for large enterprises is at the forefront of the industry. Kingdee, which is accustomed to "flying against the wind", will naturally have room for development in the future.