Cloud subscription ARR reached 58.5% YoY growth
Shenzhen, China, March 21, 2022 /PRNewswire/ — Kingdee International Software Group Co., Ltd. (“Kingdee International”, “Kingdee” or the “Company”, together with its subsidiaries collectively referred to as the “Group”; Stock Code: 0268.HK) today announced its annual results for the 12 months ended December 31, 2021 (the “Reporting Period”). Focused on the “Platform + Finance & HR & Taxation + Ecosystem” strategy, the Group continued its development and fostered the growth of quality cloud subscription services. During the reporting period, cloud services revenue grew 44.2% year-over-year (year-over-year) to approximately 2,758 million RMB, representing approximately 66.1% of total revenue. Kingdee Cloud Subscription Annual Recurring Revenue (ARR) was around 1.57 billion RMB, an increase of 58.5% year-on-year. At the same time, contractual liabilities related to cloud subscriptions grew 64.6% year-on-year, the group’s operating cash flow increased 39.6% to approximately 661 million RMB.
During the reference period, the Group recorded a total turnover of approximately 4,174 million RMB, which represents an increase of approximately 24.4% compared to the same period in 2020. Revenue from the ERP and other business decreased by 2.0% year-on-year. The loss attributable to owners of the Company for the period was approximately 302 million RMBprimarily due to Kingdee Cloud Cosmic and Kingdee Cloud Constellation’s continued investment in product research and development.
According to IDC, Kingdee ranked #1 in SaaS ERM (Enterprise Resource Management Cloud Service) for large, medium and SME in China, now #1 in market share in terms of SaaS EA (Enterprise Application Software Cloud Services) and Finance Cloud. Meanwhile, Kingdee has become the only Enterprise SaaS provider in China which entered Gartner’s top five application platform software in 2020, as well as the only Chinese vendor to be selected in the IDC Asia Pacific manufacturing the ERP SaaS MarketScape, as a Contender. Additionally, Kingdee Cloud was selected in “The State of Low-Code Platforms of Forrester”, having the most case studies among all enterprise PaaS+SaaS platforms. Kingdee has attached great importance to user privacy and data security, and has obtained the “grand slam” of security and privacy certifications, including ISO27001, ISO27701, Grade III Protection of Information Security, Cloud Security Alliance CSA -STAR.
Large Enterprise Market Leading National Substitution
As a new generation of self-innovating enterprise-class PaaS platform, Kingdee Cloud Cosmic has applied 213 patents in total. Kingdee introduced the industry-leading multi-dimensional database, which would further enhance its technological edge in finance and tax. This technology has been highly recognized by major customers for its high performance and reliability. Kingdee has also actively participated in the ecosystem and innovation of Xinchuang (信创) and the implementation of industry standards. Additionally, Cosmic’s ISV partners in the ecosystem market have reached over 1,200.
Kingdee Cloud Constellation has developed core competencies and domestic surrogate capabilities in Finance, Group Tax, Global Human Resources, Group Production and Purchasing Management with its class applications including financial intermediary platform, enterprise performance management (EPM), global treasury management. . During the period, Constellation EPM, based on a self-developed multidimensional database, has been successfully deployed in various Fortune Global 500 companies, including State Power Investment Corporation and Zhejiang Communications Investment Group. The Constellation Global Treasury Management system has helped Xiamen ITG Group significantly improve the efficiency of its operations. Constellation Supply Chain and Manufacturing has been chosen by manufacturing customers as the central system for their next-generation digital systems. Constellation has also proven its high performance with consistency in processing over hundreds of billions of rows of transaction data, helping various enterprises to overcome the system performance “bottleneck” problem.
During the reporting period, Kingdee Cloud Cosmic and Kingdee Cloud Constellation recorded 385 million RMB in revenue, an increase of 102.9% year-on-year. Additionally, Cosmic and Constellation’s dollar retention rate exceeded 120%. The total number of signed customers reached 551, of which 316 were new customers, including CCB Fintech, WZ Group, Shagang Group, Yixintang, BGI, Chinasoft International, Fenghua Advanced Technology. Over the past two years, Kingdee has advanced domestic substitution with 102 large enterprise customers.
Midsize Business Cloud Subscription ARR Driven 60.3% YoY Growth
Kingdee Cloud Galaxy has covered more than half of technologically advanced enterprises (专精特新) and unicorn companies, and established 800 industrial digitalization patterns in 18 major verticals. During the reporting period, Kingdee Cloud Galaxy has released a variety of intelligent data applications for business operation warning, forecasting and recommendation, to support smooth operation and accurate decision-making for averages. businesses. Meanwhile, Kingdee Cloud Galaxy has continued to explore in-depth industry solutions, focusing on the demand of technologically advanced enterprises, and strengthened research and development for 6 verticals, mainly high-tech, manufacturing, life sciences, food beverages and daily chemicals, wholesale. and retail service, innovative catering.
During the period, Kingdee Cloud Galaxy continued to maintain steady growth and achieved revenue of approximately 1,418 million RMB, an increase of 24.3% over one year. The cumulative number of customers reached 25,400 at the end of the period. Galaxy’s subscription ARR grew 60.3% year-over-year. The dollar retention rate reached a record high of 98.6%. New customers include INNO Laser, Casio Electronics Technology, Weigao Holding, Zero Carbon Technology, Ritar Power, C-MER, Holy Ram Electronics, Jianghua Microelectronics and Qirun Tire.
SMB cloud services revenue grew 82.8% YoY
During the reporting period, SMB cloud services revenue reached 82.8% year-on-year growth, and the overall dollar retention rate improved to around 85%. Kingdee Cloud Stellar has accumulated 11,000 customers by 2021. During the reporting period, based on growing SME demand for digital transformation of direct bank-to-business link, Stellar, China Merchants Bank and Ping An Bank have jointly established a partnership to support SMEs in achieving cash flow and business flow integration and management.
Strengthen the ecosystem strategy, to win together with partners
Kingdee has actively deepened partnership and explored cooperation with service partners such as KPMG, iSoftStone, Chinasoft International, etc. Kingdee has also worked closely with major players such as Huawei, Alibaba, Tencent, AWS and Meituan to co-build industry solutions. Meanwhile, Kingdee Cloud products including Cosmic are fully compatible with 23 domestic partners in Xinchuang (信创), including CEC Cloud, Huawei openEuler OS, Huawei Gauss DB (for open Gauss), Alibaba Cloud Compute Nest, Tencent TCS cloud and 360 browser, etc.
Xu Shaochun WeChat public account as a starting point to promote the reform of customer journey experiences
As a pioneer of enterprise service with Xu Shaochun WeChat (徐少春个人号) public account, Kingdee has established the culture of “wholeheartedly serving enterprise customers” throughout the user journey. In 2021, the public account received more than 35,000 inquiries and consultations, and the NPS (net promoter score) improved by 16 ppt per year. In the future, based on Xu Shaochun public account, Kingdee will constantly optimize the customer success system involving end-to-end customer journey.
Mr. Xu Shaochun, Chairman and CEO of Kingdee Group, said: “Kingdee will remain committed to cloud subscription transformation and fully implement the strategy of “Platform + Finance & HR & Tax + Ecosystem”. Kingdee aims to constantly improve the product and service experience and strive to ” create another Kingdee “with cloud subscription model”. Committing to the Kingdee philosophy of “customer first, long-term adherence to professionalism; long-term adherence to pure and calm spirit”, the group will be on the same road with every customer, using the next-generation EBC packagable digital platform to enable digital business transformation and fuel high-quality growth, and address challenges and unlock resilient growth in all circumstances.
About Kingdee International Software Group Company Limited
Kingdee International Software Group Company Limited (“Kingdee International” or “Kingdee”) was established in 1993. It is listed on the main board of the Hong Kong Stock Exchange (stock code: 0268.HK) and has its registered office at Shenzhen, China. Adhering to the core values ”Act with a clear conscience, with integrity and righteousness”, the Company is committed to helping companies achieve their growth objectives through dedicated services. It strives to provide its customers with the most reliable enterprise service platform.
Many of Kingdee’s cloud service products have won the favor of leading enterprises, including Kingdee Cloud Cosmic (next-generation PaaS platform for enterprise), Kingdee Cloud Constellation (SaaS solution for large enterprise), Kingdee Cloud Galaxy ( SaaS for medium-sized enterprises), Kingdee Cloud Stellar (SaaS solution for micro and small enterprises). Kingdee has provided software and cloud management services to more than 6.8 million enterprises, governments and organizations across the world.
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