Kingdee International Software Group Company (268) H2 2023 earnings summary

Executive summary

• Revenue rose 16.7% YoY to RMB 5.679bn; cloud services revenue grew 21.3% and reached 79.3% of revenue.

• Subscription ARR increased 33.1% to RMB 2.86bn; operating cash flow rose 74.5% to RMB 653mn.

• Net loss attributable to shareholders narrowed 46.1% to RMB 210mn; operating loss also narrowed YoY.

Financial highlights

• Revenue was RMB 5,679mn, up 16.7% YoY; gross profit rose 21.6% to RMB 3,644mn.

• Operating cash flow reached RMB 653mn, up 74.5% YoY from RMB 374mn.

• Net loss attributable to shareholders was RMB 210mn versus RMB 389mn in 2022; loss before tax was RMB 301mn versus RMB 474mn.

Outlook and guidance

• 2024–2026 targets: revenue CAGR of 15–20% and subscription ARR CAGR of 30%, with subscription and AI prioritized.

• Product TAM estimates by 2030: RMB 23bn for ERP AI PaaS, RMB 47.5bn for China financial software SaaS, and RMB 44bn for China human capital software SaaS.