Kingdee Posted Growth. Check it out:
(Comtex Business Via Thomson Dialog NewsEdge) SHENZHEN, Sep 29, 2006 (SinoCast China IT Watch via COMTEX) --Kingdee International Software Group Co., Ltd. (SEHK: 0268), a leading enterprise resources planning (ERP) software vendor in China, released its interim report recently.
For the first half ended on June 30, the company's operating revenues hit CNY 287 million, jumping 17 percent from a year ago. Its software sales climbed 7.8 percent year on year to CNY 213 million.
Kingdee's software solution service reached CNY 39.75 million, hiking 73.9 percent compared with last year. And its net profit margin rose 1 percent to 10.6 percent.
In the period, the software vendor, headquartered in Shenzhen, an industrial city in southern China, has gained a good performance in the high-end market. This is attributive to EAS, a high-end product by Kingdee.
For the first half, EAS has grown 64 percent, which is strategically significant to the company's expansion in the high-end market, Xu Shaochun, Kingdee's chairman and chief executive officer, said at an interview.
The product, competitive in technologies, has helped enlarge the company's market share and now is serving big groups like China's leading real estate firm China Vanke Co., Ltd., suggesting more market reception for the product.
Big clients are expected to bring more customers in their sectors to the software vendor, and further drive up the sales of its medium-end products. They have pushed the company's medium-end products sales by about 10 percent in the first half, increasing 7 to 8 percent from the previous year, and the percentage is estimated to continue to rise in coming days.
In addition, Kingdee's major rivals' high-end products account for 15 percent of their total, a fall from 23 percent for 2005, according to their interim reports.
Kingdee's service has been another fuel for its financial growth. Now the company is offering a variety of service tailored for its over 400,000 customers. From January to June, its income from service has increased 52 percent, and the number is expected to climb up further, said the chairman.
Its 2005 fiscal report showed that its business earnings reached CNY 530 million in 2005, an increase of 19 percent compared with the same period of the previous year. And its net profit increased by 40 percent year on year.
This May Kingdee took over a Shenzhen-based ERP manufacturer Godline for CNY 10 million and absorb Godline's brand. Xu Shaochun claimed that they would increase acquisitions of medium- and small-sized ERP manufacturers both at home and abroad to become a leader in the ERP market in the Asia Pacific region.
Founded in 1997, Godline is specialized at the development, promotion and service of ERP products for manufacturing industries. Now its business has covered six manufacturing segments, electric and electronic products assembly, hardware machinery, plastic & electronic, light source and lights, gifts and toys, cables and wires.
ERP software developers such as Kingdee and UFIDA are also facing another difficulty, higher costs resulting from huge investment in research and development.
In such case, some Chinese ERP software developers have quit their research and development and even were kicked out of the ERP sector to become resellers of foreign brands in China.
Industry analysts said that the only way out for Chinese ERP software developers is the ownership of core technologies in the long term.
(USD 1 = CNY 7.96)
From Nanfang Daily, Page 1, Thursday, September 28, 2006
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