FAST NEWS: Kingdee’s annual loss narrows on double-digit revenue growth
The latest: Kingdee International Software Group Co. Ltd. (0268.HK) announced on Friday that it expects to report a net loss of between 170 million yuan ($23.8 million) and 250 million yuan for last year, representing a 35.7% to 56.3% narrowing of its loss from 2022.
Looking up: Kingdee’s revenue increased about 17% last year to between 5.65 billion yuan and 5.7 billion yuan, and its net cash flow from operating activities surged by 68.3% to 78.9%.
Take Note: The company expects to report that recurring revenue from its cloud subscription services totaled about 2.85 billion yuan last year, up about 32.8% year-on-year, but a slight slowdown from the 36.3% growth in 2022.
Digging Deeper: Founded in 1993, Kingdee is a Chinese software maker that listed on Hong Kong’s small-cap GEM board in 2001 and upgraded to the Main Board in 2005. The company was an early mover in the cloud services industry, announcing the launch of its Kingdee cloud services strategy as early as 2012 to provide enterprise resource planning (ERP) cloud solutions. But after years of rapid growth, the company fell into the red for the first time since 2012 and has reported losses for four consecutive years due to the Covid outbreak and high costs related to its cloud business.
Market Reaction: Kingdee’s shares fell in early Monday trading, and were down 2.9% at HK$10.12 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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