Transferred from: Prospective Industry Research Institute

Major listed companies in the industry: Yonyou Network (600588), Kingdee International (00268), Zhiyuan Internet (688369), Pulian Software (300996), etc

The core data of this article: the number of users; Amount of R&D investment; the number of patents; revenue scale; Gross margin; Net profit margin

Kingdee International: ERP software business layout history

In 1993, Kingdee International was established in Shenzhen, Guangdong. The company started with financial software, and the "financial" gene is more obvious in the development process, and in recent years, it has made good progress in the construction of partner ecology. Kingdee International launched financial software in 1994 and agency software in 2015 to serve small and medium-sized enterprises. In 2018, the company launched the Cloud Sky platform to accelerate cooperation with ISVs, IT integrators, consulting services, training and education, financial consulting, software developers and other ecological partners to improve product and service experience, and the ecological construction effect is good. In 2021, the company ranked first in the market share of SaaS ERM (Enterprise Resource Management Cloud Service) for large, medium and small enterprises, and successfully landed 44 domestic substitutions for large enterprises.

Kingdee International: ERP software business layout and operation status

——Customer qualification strength and quantity: large customers are strong, and the number of small customers is considerable

The company's products cover three types of customers, large, medium and small, and provide targeted products to meet the needs of different types of customers. In terms of large-scale customers, Kingdee International has covered a number of large-scale central state-owned enterprises and private head enterprises with strong strength, which are generally purchased by groups, with extremely high customer unit prices, relatively stable cooperation, and considerable profits in future iterations. In terms of small and micro enterprises, the company actively expands customers through products such as Kingdee Cloud Xingchen, Kingdee Jingdou Cloud, and Kingdee KIS Cloud Subscription Service.

——R&D resource investment: continuous rapid growth in the past three years

From 2019 to 2023, Kingdee International maintained a high investment in R&D, and the scale of R&D investment in 2023 reached 1.578 billion yuan, a year-on-year increase of 8%, an increase of more than 100% over 2019.

——Number of patents: The number of invention patent applications is growing rapidly

Enterprise patents are an important embodiment of enterprise intellectual property rights and an important aspect of future competitiveness. Invention patents account for more than 50% of Kingdee's international patent types. From the perspective of the number of invention patent applications, from 2019 to 2023, the number of Kingdee International invention patent applications continued to grow, with 134 applications in 2023, a slight year-on-year decrease, but a significant increase compared with 2019 and 2020. As of December 2024, a total of 50 invention patents have been applied.

Note: The statistical time for 2024 is as of December 19, 2024.

Kingdee International: ERP software business operating performance

From 2021 to 2023, Kingdee International's operating income continued to expand, reaching RMB5.679 billion in 2023, a year-on-year increase of 16.7%. From the perspective of gross profit margin, it will remain at a high level of more than 60%, and the gross profit margin will reach 64.17% in 2023. From the perspective of net profit margin, the net profit margin showed a rebounding trend, with a net profit margin of -4.75% in 2023, mainly due to the increase in expenses due to the company's transition period and increased R&D investment and product promotion.

Kingdee International: ERP software business development plan

In addition, Kingdee focuses on building a software service ecosystem with ecological partners, relying on its own PaaS platform, attracting a wide range of professional partners to join, giving full play to its expertise in their respective fields, integrating advantageous resources, providing customers with better services and enhancing its competitiveness.

For more research and analysis of this industry, please refer to the "Analysis Report on the Development Prospect Forecast and Investment Strategic Planning of China's ERP Software Industry" by the Prospective Industry Research Institute

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