Kingdee International Software Group Software Group Co., Ltd. (00268.HK) announced its 2017 results after trading on March 13, 2018. During the reporting period, the group's cloud services business developed rapidly, with revenue growing by 66.7% compared with the same period last year, of which Jindiyun revenue increased by 87.7%.

I. Financial situation

During the reporting period, the group recorded a turnover of about 2.3 billion yuan, an increase of 23.7% over the same period last year, exceeding the previous analyst forecast of HK $2.23 billion. Among them, the cloud service business maintained rapid growth, with revenue of nearly 570 million yuan, a sharp increase of 66.7% over the same period last year, accounting for 24.7% of the total income; the group recorded an operating profit of about 420 million yuan, an increase of 69.0% over the same period last year; and a net profit of 310 million yuan, an increase of 7.6% compared with 288 million yuan in the same period last year. The net cash generated from operating activities was about 820 million yuan, an increase of 34.6% over the same period last year.The profit growth during the year was mainly due to economies of scale and improved revenue from the cloud business.

II. Main business

1. Jin Dieyun has obvious competitive advantageSteady growth of management software business

As a new management model, Jindieyun has made remarkable achievements in product innovation and market development, with revenue of about 390 million yuan, an increase of 87.7% over the same period last year, an increase of 120% over the same period of last year, and a renewal rate of more than 90%. It is an important factor that constitutes long-term stable cash flow income.

In addition, its large enterprise management software business maintained steady growth, and the total contract value of Kingdee EAS increased by 26.4% compared with the same period last year, which was mainly driven by the obvious enhancement of product competitiveness.

two。 The cloud service process of small and micro enterprises is accelerated, and the strategic layout of enterprise cloud services is becoming more and more perfect.

During the reporting period, in order to further strengthen the mobile layout of small and micro enterprises, Jing Dou Yun officially released the App version to help small and micro enterprises achieve real-time online operation and management; the Group strengthened the layout of e-commerce cloud services, and the deep integration of Guan Yiyun and Jindieyun products to provide merchants with efficient, collaborative, stable and reliable e-commerce cloud services.

After joining hands with Amazon.Com Inc AWS, Jin Dieyun reached a strategic cooperation with Huawei Cloud, which became another major measure of cooperation in the field of Kingdee's "IAAS+PAAS". In addition, Kingdee's strategic investment in innovative enterprises such as Silicon Valley start-up PerceptIn and the first brand of CRM in China indicates that Kingdee's cloud ecological layout is becoming more and more clear and perfect. (editor / Zhang Huiyu)