Kingdee plots cloud-based future after delivering 38.5pc profit rise
Hong Kong-listed business software specialist has signed recent cloud-computing deals with Tencent, Coca Cola and Vanke
Kingdee International Software Group, the Hong King-listed business software specialist, has predicted cloud services will be delivering 40-50 per cent of its total revenue within three years, as the slowing Chinese economy pushes more firms towards better management tools.
Robert Xu Shaochun, the chairman and chief executive at Kingdee, said at a press conference on Thursday that cloud services accounted for 20 per cent of the company’s revenue in the first half of this year, and would remain strong in the second half.
Xu pointed out that there is huge potential growth in the market for many more cloud solution providers in the Chinese mainland.
“Competition can actually mean companies working together to make the market larger,” he said, after delivering a strong set of interim figures which showed Kingdee enjoyed a 38.5 per cent year on year rise in net profit to 125.2 million yuan for the period ending June, on the back of a 20.5 per cent jump in revenue to 913 million yuan.
The Shenzhen-based company’s cloud services business revenue, however, soared ahead 138.3 per cent.
The results sparked a 10.29 per cent jump in its share price on Thursday.
“We believe that we can continue to have good and healthy growth,” Xu said.