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

Kingdee International Software — H1 2023 Earnings Presentation

40 slides from Kingdee International Software's earnings presentation, Aug 18, 2023

  1. Slide 1: 2023 Interim Results Announcement

    Kingdee International Software Group 2023 Interim Results Announcement Stock Code: 268.HK 18 August 2023

  2. Slide 2: Contents

    目录 01 Financial Overview 1-1.Financial Summary| 1-2.Growth of Cloud Services| 1-3.Growth of Cloud Subscription |… P 05 02 Kingdee Cloud 2-1.Kingdee Cloud Cosmic & Constellation | 2-2.Kingdee Cloud Galaxy| 2-3.Kingdee Cloud Stellar | … P 11 03 China Enterprise SaaS Market Outlook 3-1. PaaS Platform |

  3. Slide 3: 2023 Interim Results Review

    2023 Interim Results Review Group Revenue Subscription ARR Cloud Service Revenue RMB 2.57bn RMB 2.54bn RMB 2.04bn 16.8% 36.3% 21.5% Net loss attributable to shareholders Cash & Cash equivalents RMB 284mn RMB 3.84bn 20.5% 3

  4. Slide 4: Kingdee at a Glance

    Kingdee at a Glance Enterprise Business Capability（EBC） Serving over Half of China Top 500 Companies Platform + Finance & HR & Tax + Ecosystem New choice for China Top 500 Companies Committed to be the most trustworthy enterprise service platform Global Leading, China No.1 Serving 43% of the "Specia

  5. Slide 5: Financial Overview

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  6. Slide 6: Focused on Cloud Subscription for High Quality Growth

    Focused on Cloud Subscription for High Quality Growth +17% +17% +35% +16% 21% Group revenue 19% Headcount growth 15% 13% 11% 11% 3% 2% 2017 1H 2018 1H 2019 1H 2020 1H 2021 1H 2022 1H 2023 1H In 2020, the Group continued to deepen its cloud transformation, focusing on the development and promotion of

  7. Slide 7: Financial Summary

    Financial Summary (RMB mn) +16.8% 2,566 2022 1H 2023 1H 2022 1H 2023 1H 2,197 -284 -169 2022 1H 2023 1H -180 -356 Group Revenue Net Operating Cash Flow Net profit attributable to shareholders 7

  8. Slide 8: Growth of Cloud Services

    Growth of Cloud Services ERP & Others ERP & Others +21.5% 79.5% 76.4% Cloud Services Cloud Services 2022 1H 2023 1H 8

  9. Slide 9: Growth of Cloud Subscription

    Growth of Cloud Subscription Subscription ARR (RMB) 2.54bn +36.3% 1.86bn 2022 1H 2023 1H ARR represents annual recurring revenue 9

  10. Slide 10: Operating Expenses

    Operating Expenses RMB1,142mn RMB 239mn RMB 744mn +8.8% y-y growth +2.1% y-y growth +6.6% y-y growth 44.5% 9.3% 29.0% -1.4pp -2.8pp -3.3pp S&M G&A R&D as a % of total revenue as a % of total revenue as a % of total revenue R&D cost: RMB829mn, +4.3% yoy Capitalisation rate: 32.7% 10

  11. Slide 11: Kingdee Cloud

    e = ae then 2 Kingdee Cloud 11

  12. Slide 12: Kingdee Cloud Cosmic and Constellation

    Kingdee Cloud Cosmic Kingdee Cloud Constellation Total Contract Value ¥550mn New Customers 297 ARR growth +95.9% Net Dollar Retention （NDR） 2018.8.8 2019 2020 2021 2022 2023 108% V1.0 Launched 12

  13. Slide 13: Kingdee Cloud Cosmic GPT, the Generative AI for Enterprise Management

    Kingdee Cloud Cosmic GPT, the Generative AI for Enterprise Management Capability Capability Logical inference Content creation Summary Role play Q&A Multi-round dialogue Security layer Services Governance Engine Services Prompt engineering Multi-task scheduling Plug-in service Contextual memory Inte

  14. Slide 14: Cosmic GPT + Finance: Finance AI Assistant for Everyone

    Cosmic GPT + Finance： Finance AI Assistant for Everyone Scenarios Past Now FSS customer service Pre-set Q&A Understanding intention & Generative answers Contract payment approval Structured data review Structured + Unstructured data audit Financial reports Pre-set template Self-generative report Bud

  15. Slide 15: Guangdong Airport: Virtual Employee to Lead Financial Intelligence

    Guangdong Airport: Virtual Employee to Lead Financial Intelligence Efficiency Virtual employee daily workload: 1680 tasks Approval time: from 5.3 days to 2.9 days Monthly settlement time shortened by 30%，Report production time shortened by 47% Workflow 85 workflows under 6 categories, total of 298 s

  16. Slide 16: Cosmic GPT + HR: HR AI Assistant for Everyone

    Cosmic GPT+HR： HR AI Assistant for Everyone Scenarios Past Now Job matching, Selection and recommendation without Talent Select Employee profiling subjective biases JD Generation Template matching Fast response of generative content Word selection, More comprehensive and accurate HR Policy QA Intent

  17. Slide 17: Hisense: Re-build Enterprise Management in HR and Financial Management

    Hisense: Re-build Enterprise Management, Leading New Values in HR and Financial Management Huoshui (活水) Platform, Let the Dream set off again Role Portal HR Specialist Employee External Personnel Interviewer Multiply PC PC/Mobile Mobile PC Talent Selection3.0 Coordination Interviewer Assistant Emplo

  18. Slide 18: Cosmic GPT + Development: Empower Each User with an AI Assistance

    Cosmic GPT + Development： Empower Each User with an AI Assistance • Generative Form Construction Cosmic GPT+ Generative Code Compiling Application Development • Platform Application • Conversational Rule Configuration Development • Conversational Development Q&A Workflow • Conversational Process Cre

  19. Slide 19: Cosmic GPT: Rebuild the Enterprise Digital Power

    Cosmic GPT Rebuild the Enterprise Digital Power Rebuild Experience Rebuild Assignment Rebuild Decision-making From graphical user interface to From automated execution to From experience driven to data conversational interaction generative creativity driven 19

  20. Slide 20: Kingdee Cloud Galaxy

    Kingdee Cloud Galaxy Advance Manufacturing High-Tech New Energy Customer base 34,000+ NDR 96% Life Sciences New Materials Consumer ARR growth +28.6% Operating Margin 20%+ 20

  21. Slide 21: Galaxy: Subscription Growth Drives the OPM Improvement

    Galaxy: Subscription Growth Drives the OPM Improvement for Galaxy Enterprise 43% CAGR 28%+ ARR 21pp OPM 7%+ 2020 2023 H1 21

  22. Slide 22: Galaxy: Keep Exploring Upsell Opportunities

    Galaxy: Keep Exploring Upsell Opportunities Galaxy customers with annual fee over RMB 100K contributes to ~40% of Galaxy ARR RMB300k 30万以上 ~12% of Galaxy customers ~40% of Galaxy ARR + 10万-30万 5万-10万 2万-5万 2万以下 2023 1H 2022 1H 22

  23. Slide 23: Kingdee Cloud Stellar and Jingdou

    Kingdee Cloud Stellar Kingdee Cloud Jingdou Customer Base 39,000 NDR 89% Customer Base 279,000 NDR 85% 23

  24. Slide 24: China Enterprise SaaS Market Outlook

    03 China Enterprise SaaS Market Outlook 24

  25. Slide 25: China Platform-as-a-Service Outlook

    China Platform-as-a-Service Outlook PaaS dbPaaS AIMPaaS Analytics Intelligent Tech (Application Infrastructure & Middleware) 分析和商业智能平 流程机器人平台服 数据库平台服务 应用程序平台服务 集成平台服务 台服务 务 dbPaaS aPaaS iPaaS abiPaaS RPA PaaS 内存数据网格 云事件流处理平台 API管理服务 决策管理平台服务 （IMDG）服务 服务 Market imdgPaaS APIM PaaS ESP PaaS dmPaaS Stru

  26. Slide 26: China Financial Software SaaS Market Outlook

    China Financial Software SaaS Market Outlook 记录 结账 合并 报告 决策/规划/预测 Record Close Consolidate Report Decide/Plan/Forecas 采购到付款 总账结账 内部报告发布 交易/事务处理和记 合并、对账和分 Purchase to General Ledger Internal Report 用户：CxO、董事会、BU、 Key Payment 录 析 等 Transaction process & 收集非财务信息 Consolidate and Process 订单到收款 Record Col

  27. Slide 27: China Human Capital Software/SaaS Overview

    China Human Capital Software/SaaS Overview 战略组织发 战略人才 技能管理 展与变革 风险度量与控制 战略人才规划 文化变革 与人才分析 人力资本预算 员工门户 生态门户 分析与规划 Strategy Strategy Talent Culture Skill HR Resource Risk Employee Ecosystem Structure Measurement (STA&P) Planning Reform Management & Budget Portal Portal 战略 Develop Talent Analysis & Con

  28. Slide 28: Building a Win-win Kingdee Partner Ecosystem

    Building a win-win Kingdee Partner Ecosystem 深圳大学 深商总会 安永 腾讯云 深圳职业技术学院 中企联合 德勤 同济大学 中国中小企业协会 南昌金创 深圳无边界 毕马威 中国上市公司协会 深圳金纳维 雨诺 东南大学 院校联盟 商业联盟 技术平台伙伴 营销服务伙伴 专业服务伙伴 独立软件开发商 （UA） （BA） （TPP） (SSP) （PSP） (ISV) 信任 开放 共赢 统信软件 深圳诺飞 南方科技大学 知室 Cloud Native 赛迪 重庆大学 北京金普蝶 上国会 赛意 湖北经济学院 青岛未来互联 武汉工程大学 28

  29. Slide 29: Xu Shaochun Public Account to Enhance Customer Lifecycle Experience

    Xu Shaochun Public Account to Enhance Customer Lifecycle Experience 385 96% Customer Customer Appreciation Appreciation Letters Growth Rate 96% 53% Customer Service Satisfaction Complaints Rate 29

  30. Slide 30: Subscription ARR 2021-2023 Three-Year Target

    Subscription ARR 2021-2023 Three-Year Target (RMB) 2021-23 CAGR ~3bn 44% ~2.14bn ~1.57bn ~1bn ~630mn 2019 2020 2021 2022 2023 30

  31. Slide 31: Appendix

    e = 2 eae flew ; Appendix 31

  32. Slide 32: Income Statement

    Income Statement Revenue 2,565,850 2,196,656 16.8% Cost of Sales -977,080 -865,848 12.8% Gross Profit 1,588,770 1,330,808 19.4% Gross Margin 61.9% 60.6% 1.3pp Operating Expenses -2,160,938 -2,016,424 7.2% Other Incomes & Gains-Net 183,977 232,049 -20.7% Operating Profit -388,191 -453,567 NA Operatin

  33. Slide 33: Total Revenue by Segments

    Total Revenue by Segments % of Total % of Total （RMB‘000） 2023 1H 2022 1H Change Revenue Revenue Cloud services business 2,038,598 79.5% 1,677,482 76.4% 21.5% -Enterprise Cloud Services 1,404,558 54.8% 1,161,330 52.9% 20.9% -Small & Micro Business 501,028 19.5% 380,235 17.3% 31.8% Finance Cloud Serv

  34. Slide 34: R&D Expenses

    R&D Expenses (RMB‘000) 2023 1H 2022 1H Change Salaries and staff welfare 806,158 769,464 4.8% Fixed costs 14,064 13,334 5.5% Professional service costs 3,244 8,097 -59.9% Travelling costs 4,160 2,253 84.6% Employee recruitment and training expenses 201 383 -47.4% Others 1,361 1,275 6.7% Total R&D co

  35. Slide 35: Selling & Marketing Expenses

    Selling & Marketing Expenses (RMB ‘000) 2023 1H 2022 1H Change Salaries and staff welfare 711,075 696,927 2.0% Sales promotion & marketing 310,813 240,996 29.0% Fixed costs 45,706 44,512 2.7% Travelling expenses 33,624 27,229 23.5% Business advertising expenses 20,121 18,847 6.8% Project cooperation

  36. Slide 36: Administrative Expenses

    Administrative Expenses (RMB‘000) 2023 1H 2022 1H Change Salaries and staff welfare 190,583 187,610 1.6% Fixed costs 22,715 21,689 4.7% Professional service costs 15,354 15,000 2.4% Employee recruitment and training expenses 2,015 3,810 -47.1% Travelling costs 2,136 2,049 4.2% Others 6,151 3,794 62.

  37. Slide 37: Other Income and Gains - Net

    Other Income and Gains -Net (RMB‘000) 2023 1H 2022 1H Change VAT refund 52,513 56,449 -7.0% Government projects 76,798 56,425 36.1% Rental income - net 34,584 33,644 2.8% Net foreign exchange gains 2,183 1,435 52.1% Others 17,899 84,096 -78.7% Total 183,977 232,049 -20.7% VAT % of Total Revenue 2.0%

  38. Slide 38: Cloud Contract Liabilities

    Cloud Contract Liabilities (RMB’000) 2023 1H 2022 1H Change Total Cloud Contract Liabilities 2,554,098 1,964,690 30.0% - Subscription related 2,113,082 1,572,126 34.4% - Others 441,015 392,564 12.3% 38

  39. Slide 39: Balance Sheet Overview

    Balance Sheet Overview (RMB’000) 30 Jun 2023 31 Dec 2022 Trade and other receivables 471,940 397,081 Cash reserves 3,838,923 4,315,305 Total assets 11,754,408 11,731,437 Current assets 3,583,635 3,983,946 Borrowings 707,500 470,000 Trade and other payables 801,210 899,496 Net assets 7,120,865 7,407,

  40. Slide 40: Thank You

    BYNES ten Thanks — b Terima kasih BBY J HRILATES ©1993-2023 SARI SASIRAS) @ RNS PSS

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