Kingdee International Software Group Co., Ltd. · HKEX:268

Kingdee International Software — FY2024 Earnings Presentation

33 slides from Kingdee International Software's earnings presentation, Mar 18, 2025

  1. Slide 1: 2024 Annual Results Announcement

    Kingdee International Software Group 2024 Annual Results Announcement Stock Code: 268.HK 18 March 2025

  2. Slide 2: Overview

    Overview 01 Financial Review P 03 02 Kingdee Cloud Business Update P 12 03 Outlook P 19 04 Appendix P 25 2

  3. Slide 3: Financial Review

    1 ° Kingdee Financial Review

  4. Slide 4: 2024 Overview

    2024 Overview Group Revenue Subscription ARR Net Loss Attributable to Shareholders RMB6,256 million RMB3.43 billion RMB142 million 10.2% 20.0% 32.3% Operating Cash Flow Share Repurchase Cash & Cash Equivalents RMB934 million HKD840 million RMB4.65 billion *by the end of annual report blackout period

  5. Slide 5: Resilient Revenue Growth along with Significant Employee Revenue Productivity Uplift

    Resilient Revenue Growth along with Significant Employee Revenue Productivity Uplift 8 years revenue CAGR： 16.4% Revenue Headcount YoY Growth 2017 2018 2019 2020 2021 2022 2023 2024 Revenue YoY 24% 22% 18% 1% 24% 17% 17% 10% Growth Headcount YoY 8% 17% 15% 20% 9% 4% 3% -2% Growth Employee Revenue 36

  6. Slide 6: Group Revenue Mix Shift to Cloud Services

    Group Revenue Mix Shift to Cloud Services Kingdee Cloud revenue contribution reached 81.6% in 2024 ERP and Others ERP and Others 20.7% 18.4% Cloud Services Revenue +13.4 YoY 79.3% 81.6% Cloud services business Cloud services business 6

  7. Slide 7: Industry Leading Subscription ARR

    Industry Leading Subscription ARR （RMB million） Increased by 5.4 times since the beginning of 2020 3,430 2,860 2,140 1,570 1,000 630 2019 2020 2021 2022 2023 2024 Subscription ARR represents annual recurring revenue from Kingdee Cloud subscription services 7

  8. Slide 8: Improving B/S with Rising Cloud Services Mix

    Improving B/S with Rising Cloud Services Mix （RMB million） 3,724 Contract liabilities Account receivables Cloud revenue contribution 997 118 141 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 8

  9. Slide 9: Cloud Services OPM on Improving Trend

    Cloud Services OPM on Improving Trend OPM of Kingdee Cloud services 6% 3% -2% -17% -15% -22% -29% -31% -35% -35% 2020 H1 2020 H2 2021 H1 2021 H2 2022 H1 2022 H2 2023 H1 2023 H2 2024 H1 2024 H2 9

  10. Slide 10: OCF Returning to Historical High

    OCF Returning to Historical High (RMB million) 963 906 934 824 661 653 473 374 2017 2018 2019 2020 2021 2022 2023 2024 10

  11. Slide 11: Operating Expenses

    Operating Expenses RMB2,503 million RMB539 million RMB1,514 million +7.9% yoy growth +9.9% yoy growth +5.2% yoy growth 40.0% 8.6% 24.2% -0.8pp -0.02pp -1.2pp S&M G&A R&D as a % of total revenue as a % of total revenue as a % of total revenue R&D investments: RMB1,516mn, +0.4% yoy R&D Capitalization

  12. Slide 12: Kingdee Cloud Business Update

    02 Kingdee Cloud Business Update 12

  13. Slide 13: Kingdee Cloud Cosmic and Constellation

    Kingdee Cloud Cosmic Kingdee Cloud Constellation Contract Value ¥2.1bn +52% RMB10mn and above contracts value +100% New Customers 652 ARR Growth +30% Net Dollar Retention （NDR） 108% 13

  14. Slide 14: Cohort Analysis for Large Enterprise Contracts

    Cohort Analysis for Large Enterprise Contracts Customer lifetime contract value contribution Lifetime contract value expansion from initial contract Customer Cohort 2018 1.5x 2019 2.1x 2020 2021 2.3x 2022 2023 3.6x 2024 4.7x 5.5x 2018 2019 2020 2021 2022 2023 2024 As illustrated above, 2020 customer

  15. Slide 15: Product Value of Kingdee Cloud Constellation

    Product Value of Kingdee Cloud Constellation AI-Driven Process Global Business Excellence Operations Intelligent data insights: Wuchan Zhongda Global unified governance: China Merchants Group Smart contract risk control: CSSC Jiujiang Localization Hub: Sailun Tire ASEAN factory tax & HR digital assi

  16. Slide 16: Kingdee Cloud Galaxy: Manufacturing

    Kingdee Cloud Galaxy Net customer base Robotics 44,000 AI Market share in National- level Niche-and-Specialized Little Giants 46% Autonomous Auto Parts Driving ARR Growth +19% Manufacturing Life Sciences Net Dollar Retention Advanced （NDR） 95% 16

  17. Slide 17: Product Value of Kingdee Cloud Galaxy

    Product Value of Kingdee Cloud Galaxy AI-Powered Management Global Expansion Transformation Excellence Boost efficiency: Houde Food AI accounting Enable smart decisions: YTOT five intelligent AI Global operations：NISCO cross-border R&D- production-supply collaboration dashboards Digital supply chain

  18. Slide 18: Kingdee Cloud Stellar and Kingdee Jingdou Cloud

    Kingdee Cloud Stellar Kingdee Jingdou Cloud Net customer base 75,000 Net Dollar Retention （NDR） 93% Net customer base 360,000 Net Dollar Retention （NDR） 88% 18

  19. Slide 19: Outlook

    or °*. Kingdee (@)Ujarere)< 19

  20. Slide 20: The Next Decade: AI + Management

    The Next Decade: AI + Management • The AI Era: Transforming Business Operations and Reshaping Models • AI is Redefining Business Operations and Core Competitiveness • The Future: Every Company is a Smart Decision Factory ——Harvard Business Review Press, Competing in the Age of AI By 2027, 80% of ent

  21. Slide 21: Global Leading Enterprise Management AI Company by 2030

    Global Leading Enterprise Management AI Company by 2030 Enterprise Management AI AI + Management Management Cloud Cloud EBC Cloud EBC AI Platform 21

  22. Slide 22: Enterprise Management AI Growth Flywheel

    Enterprise Management AI Growth Flywheel Data Value Scenario Model 22

  23. Slide 23: Kingdee's AI Journey

    Kingdee’s AI Journey 2025.02 Full Integration with 2017 Deepseek Drive Efficiency, Ensure Cloud-powered Finance Bot Security, Reduce Costs – 2024.10 Smart finance based on AI technologies Accelerate Enterprise AI 2024.05 Implementation including image/voice recognition and LBS Cosmic APP Agent-Centr

  24. Slide 24: Kingdee Cloud "AI + Management" Solutions

    Kingdee Cloud "AI + Management" Solutions AI + Knowledge AI + Finance AI + HR AI + Operations AI + Decision-Making Smart Knowledge Q&A Expense Policy Q&A HR Policy Q&A Smart Customer Service BOSS Assistant Intelligent Business Search Multi-Modal Intelligent Auditing Intelligent Internal Recruitment

  25. Slide 25: Appendix

    04 Appendix 25

  26. Slide 26: Income Statement

    Income Statement Revenue 6,255,684 5,679,073 10.2% Cost of Sales -2,185,012 -2,035,084 7.4% Gross Profit 4,070,672 3,643,989 11.7% Gross Margin 65.1% 64.2% +0.9pp Operating Expenses -4,596,862 -4,320,335 NA Other Incomes & Gains-Net 190,928 256,399 -25.5% Operating Profit -335,262 -419,947 NA Operat

  27. Slide 27: Revenue by Segments

    Revenue by Segments % of Total % of Total 2024 2023 Change Revenue Revenue Cloud services business 5,106,725 81.6% 4,504,983 79.3% 13.4% -Enterprise Cloud Services 3,623,654 57.9% 3,127,280 55.1% 15.9% -Small & Micro Business Finance 1,228,680 19.6% 1,080,010 19.0% 13.8% Cloud Services -Industry Clo

  28. Slide 28: R&D Expenses

    R&D Expenses Change Salaries and staff welfare 1,435,609 1,439,657 -0.3% Fixed costs 35,808 35,439 1.0% Professional service costs 22,625 13,008 73.9% Travelling costs 10,597 9,802 8.1% Others 11,284 12,013 -6.1% Total R&D costs 1,515,923 1,509,919 0.4% Less: development costs capitalised 484,284 47

  29. Slide 29: Selling & Marketing Expenses

    Selling & Marketing Expenses Change Salaries and staff welfare 1,447,746 1,403,510 3.2% Sales promotion & marketing 874,793 734,546 19.1% Fixed costs 85,451 84,364 1.3% Travelling expenses 75,692 74,661 1.4% Project cooperation fee 10,864 13,798 -21.3% Others 8,306 8,766 -5.2% Total 2,502,852 2,319,

  30. Slide 30: Administrative Expenses

    Administrative Expenses Change Salaries and staff welfare 370,130 331,105 11.8% Fixed costs 101,008 91,845 10.0% Professional service costs 49,336 49,457 -0.2% Employee recruitment and training expenses 5,456 5,014 8.8% Travelling costs 7,746 7,792 -0.6% Others 5,011 4,751 5.5% Total 538,687 489,964

  31. Slide 31: Other Income and Gains - Net

    Other Income and Gains -Net Change VAT refund and VAT input tax surplus deduction 139,850 129,125 8.3% Government projects 90,931 100,910 -9.9% Rental income - net 58,995 66,087 -10.7% Others -43,678 -10,865 NA Total 246,098 285,257 -13.7% 31

  32. Slide 32: Cloud Contract Liabilities

    Cloud Contract Liabilities Change Total Cloud Contract Liabilities 3,462,546 2,867,294 20.8% - Subscription related 3,126,470 2,433,629 28.5% - Others 336,076 433,665 -22.5% 32

  33. Slide 33: Thanks

    e °. Kingdee BYNES ten Thanks — b Terima kasih BBY J Copyrights ©1993-2025 Kingdee International Software Group Company Limited

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