Kingdee releases 2021 annual report: cloud business revenue is 2.758 billion yuan, and cloud transformation strategy has achieved phased success
This week, Kingdee International released its 2021 annual performance report. During the reporting period, the Group recorded revenue of approximately RMB 4.174 billion, an increase of approximately 24.4% over the same period in 2020.
A number of brokerage institutions, including JPMorgan Chase, Haitong Securities, Nomura, and Cinda Securities, have recently upgraded their ratings on Kingdee. Cinda Securities believes that “(Kingdee) has achieved remarkable results in cloud transformation, and is expected to fully benefit from the accelerated trend of digital transformation + Xinchuang + cloud migration.” JPMorgan Chase also said that Kingdee is “one of the first choices in China’s software or SaaS field, and a successful Cloud computing transformation brings higher growth sustainability”, the rating was upgraded from “neutral” to “overweight”.
At this performance conference, Kingdee Group Chairman and CEO Xu Shaochun emphasized that Kingdee International has a clear strategy and hopes to become China’s largest PaaS platform service provider by 2026 and a world-class enterprise SaaS service by 2030 business. Judging from this annual report, Kingdee is firmly sailing towards this goal.
Phased victory of cloud transformation strategy
In fact, as early as 2014, Kingdee took the lead in launching cloud transformation, and in 2020 successfully achieved the strategic goal that more than half of the group’s revenue should come from cloud services.Now the Group’s cloud business has become the core growth point of Kingdee’s revenue in 2021, achieving a year-on-year increase of 44.2% in revenue to approximately RMB 2.758 billion, accounting for approximately 66.1% of revenue.
It is reported that Kingdee has changed the main measurement index from the previous cloud proportion to the annual recurring revenue (ARR) that can better reflect the health of the enterprise’s business model. The annual report shows,In 2021, the annual recurring revenue (ARR) of Kingdee cloud subscription services will be approximately RMB 1.57 billion, a year-on-year increase of 58.5%, and the contract liabilities related to cloud subscription services will achieve a year-on-year increase of 64.6%the Group’s operating cash flow increased by 39.6% year-on-year to approximately RMB 661 million.
Xu Shaochun has previously stated that Kingdee will continue to unswervingly transform to a cloud subscription service model, fully implement the “platform + human, financial and taxation + ecology” strategy, and continuously improve the user experience of products and services. A King Butterfly”
Judging from this annual report, the cloud subscription model has gradually matured, and Kingdee has also become a continuous strategic partner with customers, which has greatly improved customer satisfaction and customer stickiness. The annual report shows,Kingdee Cloud Cosmic and Kingdee Cloud Xinghan recorded a total revenue of approximately RMB 385 million, a year-on-year increase of 102.9%, while the customer renewal rates of Cosmic and Xinghan exceeded 120%.
Kingdee’s “Answer Sheet” for Large Enterprise Services
According to the annual report, in 2021, Cangqiong and Xinghan will sign a total of 551 customers, including 316 new customers, including CCB Jinke, Wuchan Zhongda, Shagang Group, Yixintang, BGI, Chinasoft International, Fenghua Hi-Tech and other industries. Benchmark customers. In the past two years, Qiong Qiong and Xinghan have entered thousands of industries.Accumulated help 102 large enterprise customers to carry out localization substitution.
These outstanding performances are closely related to the PaaS platform Kingdee Cloud Sky, large enterprise SaaS management cloud Kingdee Cloud Xinghan and other competitive products. The launch of this type of product has enabled Kingdee to successfully take the lead in the current state of continuous advancement of the national innovation strategy and the deepening of digital transformation with central state-owned enterprises. Kingdee has also ushered in new development opportunities in the key customer market, and has reached long-term cooperation with many Fortune 500 companies.
byDelonghi SteelFor example, this steel enterprise, established in 2000, has an annual output of 3.5 million tons of iron, steel and timber, and has nearly 4,000 employees. It is now one of the top 500 enterprises in China. As early as 2009, Delong cooperated with Kingdee on the ERP level, and then the cooperation went deep into different business fields of the whole group, with Kingdee ERP as the core business platform, through Kingdee’s existing business systems, as well as the i-MES system, independent research and development. CRM and other systems have created an integrated solution in line with Delonghi management. Over the past few years, the two parties have gradually completed the basic work of Delong’s digital transformation, breaking down the pain points of mining and sales faced by the capital-heavy industry of metallurgy, and realizing standardized, efficient, refined and flexible industry solutions such as automatic settlement of bulk materials and automatic sales settlement.
The core platform of the group has also been fully constructed, realizing the integration of industry and finance, management and control, production, supply and marketing, and system platformization of the whole group, and the efficiency has been increased by more than 2 times.
Ding Liguo, chairman of Delong Steel and Xintiangang Group, revealed that with the strategic shift from “digital Delong” to “intelligent Delong”, and pushing digital applications to the deep-water area, Delong Steel has launched the Kingdee Cloud Sky Pilot. A new generation of enterprise-level PaaS platform, based on enterprise-level cloud-native architecture and the idea of middle-stage, combined with innovative technologies such as artificial intelligence, blockchain, cloud computing, big data, internet of Things, etc. and Kingdee’s years of enterprise-level technical service accumulation, to provide enterprises with Multi-scenario and multi-level digital service support.
During the pilot period, Kingdee will build five digital support platforms for Delong, namely an information system platform for employees, a customer experience platform for customers, an IoT platform for equipment, an ecosystem platform for partners, and an intelligent data analysis platform.
Then China Petroleum International Exploration and Development Corporation (referred to as theCNPC International) as an example, in early 2018, they selected Kingdee Cloud Cosmic as the technology platform to build an overseas social security information network platform to enhance the safety of personnel overseas through information technology.
As a professional company under CNPC responsible for the centralized management of overseas oil and gas exploration and development, refining and chemical engineering, and pipeline operations, most of CNPC’s overseas projects are located in Iraq, South Sudan, Niger, and Chad in high-risk and extremely high-risk countries. The perennial Chinese personnel stationed abroad account for 83% of the Chinese personnel in the overseas sector. However, the social security situation in the countries or regions where overseas projects are located is extremely severe, complex, with high uncertainty and lack of relevant security information management.
To this end, CNPC International needs a set of overseas social security information network platform, built based on the urgent needs of the international social security situation and the concept of HSE (Health, Safety, Environment) management system.
However, there are no standard products on the market that can be used for reference. All applications need to be customized and developed. Based on the urgency of the project, the platform is required to have a short development cycle, be easy to learn and use, and have strong scalability. At the same time, the technology platform is required to provide high availability and high concurrency. The ability to ensure that the system provides 24-hour uninterrupted services, to ensure that all employees can be online at the same time, and when risks occur, messages can be delivered in time.
Based on the low-code visualization development platform of Kingdee Cloud Sky, the customer quickly customized and developed CNPC International’s HSE system. The platform supports cloud-native architecture, supports distributed deployment and elastic scaling of the system, and maximizes the availability of the system.
Through the construction of the HSE system, the safety of project personnel of overseas companies is monitored. When overseas employees are in distress, through the HSE system, they can call for help with one key and feed back necessary rescue information (location, pictures, sounds and videos, etc.). The system can issue alarm information in a timely manner for personnel with abnormal status, push travel risk reminders through the platform, and strengthen social security prevention and control beforehand; further improve social security information management, strengthen social security risk and event management, and track the progress of incident rescue. Ultimately, through technical and management methods, the safety of life and property of overseas staff is guaranteed, and unnecessary losses are reduced for enterprises.
Kingdee Cloud Sky and “Secret Weapon” Multidimensional Database
The reason why many large and medium-sized customers choose Kingdee is inseparable from its strong technical strength, customer service ability, and years of deep cultivation in the digital market. Zhao Yanxi, Executive Vice President of Kingdee China and General Manager of R&D Platform, revealed to the media the three major advantages of Kingdee International at the performance conference:
First, it took the lead in launching the enterprise-level cloud-native architecture technology. Through this technology, Kingdee International has achieved independent and controllable technology, and is not blocked by foreign technology when serving customers;
The second is to support the large concurrency and large inventory of very large enterprises through cloud native and distributed technologies. Generally speaking, customers who want to replace domestic products are enterprises with large business volumes;
The third is the introduction of integrated low-code. Kingdee International’s suite includes functions such as development, analysis, and calculation, which greatly improves work efficiency.
In the more than ten years that Kingdee has been involved in the wave of digital transformation, it has built a broad product matrix, such as Kingdee Cloud Sky, Kingdee Cloud Xinghan, Kingdee Cloud Starry Sky, Kingdee Cloud Star, Kingdee Jingdou Cloud, Cloud A series of products such as Zhijia, Tianyanyun, and Myjiayun continue to deepen in various fields such as business center, data center, finance and taxation, organization and human re
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