Kingdee International announces 2024 annual results, operating cash flow grows 42.9%

Kingdee International Software Group Co., Ltd. (“Kingdee International”, “Kingdee” or “the Company”; stock code: 268.HK) announced the audited consolidated results of the Company and its subsidiaries (the “Group”) for the year ending December 31, 2024 (the “Reporting Period”).

During the reporting period, the Group further promoted the transformation of its cloud subscription service model, and its cloud service business achieved a year-on-year growth of 13.4%, accounting for approximately 81.6% of the Group’s revenue. Kingdee Cloud Subscription Service Annual Recurring Revenue (ARR) was approximately RMB 3.43 billion, an increase of 20.0% over the same period last year; the contract liabilities related to cloud subscription services achieved a year-on-year increase of 28.5%, and the Group’s operating cash flow was approximately RMB 934 million, an increase of 42.9% over the same period last year.

During the reporting period, the Group recorded revenue of approximately RMB6.256 billion, an increase of approximately 10.2% year-on-year; the loss attributable to the Company’s equity holders for the period was approximately RMB142 million, a year-on-year reduction of approximately 32.3%; the basic loss per share attributable to the Company’s equity holders for the period was approximately RMB0.401 cents.

As a global leading enterprise management cloud SaaS company, Kingdee has made remarkable achievements in the field of cloud services. According to IDC reports, Kingdee ranks first in the Chinese market for SaaS EA (Enterprise Application Cloud), SaaS ERM (Enterprise Resource Management Cloud), Financial Cloud, EPM, and PLM. It has been the first in the Chinese market share of growing enterprise application software for 20 consecutive years, and is the only Chinese market share in the Asia-Pacific SaaS ERP Small and Medium Market Competitiveness Report to be zero. Kingdee was successfully selected into Gartner’s “Artificial Intelligence Code Assistant Market Guide” and is the only Chinese management software vendor selected.

High-quality operation in the large enterprise market, AI-driven management upgrade

During the reporting period, Kingdee seized the opportunity of large enterprises to accelerate domestic substitution and industrialization, and made significant progress in the fields of central enterprises, state-owned enterprises and Fortune 500 enterprises. The contract signing amount of high-end manufacturing industry doubled, and the contract signing amount of consumer industry increased by 56% compared with last year. It successfully signed contracts and won bids for many industry leaders, such as China Petroleum Industry Group, China Aoki, China Aoki Group, China Aoki, China Aoki, China Science, China Aoki, China Aoki, and China Science. During the period, Kingdee Cloud · Cangqiong and Kingdee Cloud · Xinghan recorded a total of approximately RMB 1.304 billion in cloud service revenue, a year-on-year increase of 32.9%, and a contract signing amount of approximately RMB 2.1 billion, a year-on-year increase of 51.9%; Cangqiong and Xinghan cloud subscription ARR increased by 30.0% year-on-year, and the net amount was 0008608% for the period.

During the reporting period, Kingdee accelerated the promotion of AI application innovation and scene implementation. Kingdee Cloud · Cangqiong was upgraded to a new generation of enterprise-level AI platform, and AI management assistant and Cangqiong APP were released to provide enterprises with solutions for fast and efficient use of AI. Cangqiong AI Agent platform has signed contracts with 20 customers including Hisense Group, Wens Group, Zhiyang Innovation, Hubei China Tobacco, etc. Kingdee Cloud · Xinghan has launched more than 20 AI applications and signed contracts with nearly 20 large enterprises, jointly launching AI intelligent transformation. Among them, Wuchan Zhongda uses intelligent data insights to promote the efficiency of financial management processes; Tongwei Co., Ltd. launched HR AI assistant to realize intelligent inquiry, non-sensing bill of lading, and one-click navigation; CSSC Jiujiang relies on intelligent contract management to improve the efficiency of contract management and review and reduce contract risks.

Continue to lead the market for growing enterprises and actively assist Chinese enterprises to expand overseas

During the reporting period, Kingdee continued to deepen the product advantages of R&D-production-supply-sales-service integration and deep integration of business and finance, embraced AI transformation, and strengthened its global capabilities. Kingdee Cloud Star achieved revenue of approximately RMB 2.153 billion, a year-on-year increase of 10.3%; subscription ARR increased by 18.7% year-on-year, and the net dollar retention rate (NDR) was 95%. The number of customers reached 44,000, including industry leaders such as Yushu Technology, Sony Precision, Shanghai Xianhui, Dalian Electric Ceramics, Inbol, and Chaoyun. More than 1,500 new national and provincial specialized and new enterprises were signed, and the market share of national specialized and new “little giants” reached 46%, further consolidating the market leadership.

During the reporting period, Kingdee Cloud Starry Sky flagship version, based on the advantages of “AI priority, manufacturing leadership”, realized AI intelligence in multiple scenarios, including Boss Assistant, AI accounting, decision-making large screen and many other AI applications, and signed 30+ customers in 2024, such as Chuangsi Industry and Trade, Jiefeng Hat Industry, Huaxin Electric Ceramics, Precision Haomi Electric Ceramics, Precision Xia and other corporate information, Xia Xia and other corporate information. Starry Sky launched localization packages for Singapore, Vietnam, Thailand, Indonesia, Malaysia and other countries, effectively helping Chinese companies to go overseas, and signed 340 overseas companies in 18 industries, including OPPO, Tangqun Chair, Maxcess, Xiongtao Power Supply, OTTO and others.

Consolidate the leading position in the small and micro enterprise market, and AI will help improve efficiency and innovation

During the reporting period, Kingdee continued to maintain its leading position in the small and micro enterprise market. The Small and Micro Financial Cloud achieved revenue of approximately RMB 1.229 billion, a year-on-year increase of 13.8%, and the Small and Micro Financial Cloud subscription ARR increased by 26% year-on-year; among which, Kingdee Cloud·Xingchen revenue increased by approximately 71.8% year-on-year, and the Net Dollar Retention (NDR) was 9%.

During the period, Kingdee’s small and micro products released applications such as small and micro AI assistant, AI billing, and AI accounting, which have enabled AI for more than 7,500 small and micro enterprises, helping small and micro enterprises to increase billing efficiency by 90% and accounting efficiency by 10 times. In terms of internationalization, Kingdee Cloud Star released a multi-language package and began to provide international SaaS services to customers around the world; Kingdee Jingdou Cloud has comprehensively strengthened its invoice and tax capabilities, covering 36 tax areas and 19 common tax types across the country, to escort enterprises to operate in compliance and legal manner.

Xu Shaochun, Chairman and CEO of Kingdee Group, said that the SaaS industry is undergoing reconstruction and the golden decade has arrived. In 2025, Kingdee will begin to fully transform into an enterprise management AI company, and through providing a powerful Sky AI platform and AI agents with rich scenarios, it will help every customer around the world improve new quality productivity and achieve success for customers, partners and every one of our employees.