During the period under review, Kingdee achieved RMB440,574,000 in turnover, representing an increase of 4.3% against the first half of 2008. Gross profit increased by approximately 5.2% to RMB348,937,000. Net profit of the Group increased by 43.6% period-on-period to RMB76,577,000.

In the first half of 2009, impacts of the financial and economic crisis prevailed. The adverse market environment on the one hand made enterprises realize the importance of informatization to their business, but on the other hand, compelled SMEs to cut or postpone investment in IT and growth of the IT industry slowed down as a result.

Mr. Xu Shaochun, Chairman of Kingdee, said that presented with both opportunities and challenges in the market, Kingdee pushed ahead with its service transformation strategy guided by the principle of providing diverse and tailored management solutions and IT consultation service products that agree with the business and operational cycles of customers, an approach that helped markedly enhance the Group’s image as a management expert. At the same time, the Group stepped up studies on management consultation and management models with the aim of promoting “the China management model”, and also strived to seize opportunities for M&A that can solidify its industry leadership. 

During the period under review, the service revenue grew a remarkable 24.8% against the same period last year to approximately RMB151,144,000, reflecting the success of the Group’s service transformation strategy. The Group achieved stable growth for its corporate management software business. By launching various kinds of new products for the SME market and high-end market to help customers enhance operational efficiency, the Group maintained dominance in the SME market and was named by IDC as the leader in the SME ERP market for five consecutive years. Meanwhile, the Group also boosted its influence among large enterprises and different industry markets with its revenue from EAS surged by 44.4%. During the period, Kingdee was among “Asia’s 200 Best Under a Billion Companies” for four consecutive years by Forbes Asia magazine.

For its Middleware business, the Group continued to develop the government market and won a number of important tenders including for a platform system from the General Office of the CPC Central Committee and an information resources management platform for central committee of China. Moreover, The Group also launched OperaMasks V2.2 to provide programmers with a more flexible framework for developing new programs. To provide better and timely service to local customers and partners and pave the way for strong growth of the segment, Kingdee middleware has set up subsidiaries in Beijing and Shanghai for the business. As a benchmark provider of basic software in the country, Kingdee participated in the China International Software Expo and China International Software Service Trade Fair and won the Best Technological Innovation in Chinese Software Industry award  and The most capable and innovative software enterprise in China in 2009.

Regarding Online Management Services (SaaS), the www.youshang.com website of the Group signed a number of cooperation agreements, including the Zhuhai office of small and medium enterprises to jointly build an e-commerce service platform for more than 40,000 SMEs in Zhuhai. This mode will be promoted to government departments in various cities in the country. Furthermore, the Industrial and Commercial Bank of China and youshang.com jointly launched the first online banking accounting service in the market – “Online Finance Software for Enterprise E-bank”. The Group will also have its online management service products installed soon in Lenovo commercial PCs. As at 30 June, youshang.com had over 200,000 registered users.

During the period, the Group carried out various strategic deployments. It continued to strengthen cooperation with its strategic investor IBM. The entire software series of Kingdee will be installed in IBM servers and storage products to  provide total software solutions to growth enterprises in China. Furthermore, seizing opportunities in the industry consolidation, the Group completed three M&As in the first half year, namely of Shenzhen Sunsoft Technology, a manufacturer serving the retail industry in Southern China, Guangzhou Qi Sheng Software Limited, an ERP software provider for the garment industry in the Pearl River Delta Region, and NanJing Tongmeng, a developer of taxation software, resulting in boosted industry coverage of the Group’s products. To lift the standards of information systems and operational structures of Chinese enterprises, the Group will assist The Open Group in setting up a China branch and lead the China software sector in contributing to the setting of international industry standards.  Commanded by the continuous expansion of the business scope of the Group, Shenzhen Kingdee Software Park began operation on 22 May, allowing the Group to consolidate resources for boosting overall operational efficiency. The Park stands out as a landmark base fort for high-tech enterprises in Shenzhen.

“As the country’s economic stimulus measures and electronics and information industry promotion plans gradually take effect in the second half year, and demand among Chinese enterprises for informazation to help improve efficiency and lower costs surges after the financial crisis, we have full confidence in the prospects of the management software, middleware and online management services markets in China. In the second half year, the Group will continue its service transformation strategy, accelerate the establishment of the strategic development framework and further expand distribution channels, push on with expanding the large enterprise and industry markets and its share in the SME market, and implement prudent financial strategies. The Group will step up identifying suitable M&A targets and integration of our business so as to cement our industry leadership and bring better returns to investors,” Mr. Xu concluded.

About Kingdee

Kingdee International Software Group Company Limited (HK Stock Code: 268) is a leading provider of enterprise management software and e-Business application solution in the Asia-Pacific region, one of the fastest-growing independent software vendors in the global market, and a leading provider in China's software industry, Kingdee is engaged in developing and selling enterprise management software and e-Business application software, and middleware of e-Business and e-government platforms for enterprises or government. Kingdee also provides software-related management consultation, implementation and technical support services for worldwide customers. With its unique product and service position of "Fast Configuration, Fast Implementation, Fast Application, and Fast Results", Kingdee is able to help customers to easily face the challenges of uncertainty brought by the dynamic business environment, perfectly integrate the business processes and information technology, effectively manage changes, and ensure the fast, sustainable and healthy growth of the organization. For more information, please visit: http://www.kingdee.com/en.