Kingdee International transferred 224 million yuan in the medium term without paying interest

(00268-hk) announced that as of June 30, 2020, the performance of the six months ended June 30, 2020 was changed from profit to loss, with a loss of RMB 224 million (profit of about RMB 110 million in the same period of 2019), and no interim interest was paid. During the period, the revenue was 1.39 billion yuan, down 6.6% year on year. The business income of enterprise resource management plan decreased by 37% to 590 million yuan, and the revenue of cloud service business increased by 45.1% to about 800 million yuan, accounting for 57.5% of the total revenue. Cloud subscription business grew strongly, and cloud service related contractual liabilities rose 96.8% to 710 million yuan. In the first half of the year, the service business of Kingdee cloud increased by about 45% to 800 million yuan, accounting for 57.5% of the total revenue. The revenue of Kingdee cloud · sky sky increased by 3.1 times to 62.7 million yuan, while that of Kingdee cloud and star sky increased by 30% to 500 million yuan. However, the business of enterprise management software decreased by 37% to 590 million yuan in the first half of this year. Due to the business model adjustment, continuous increase in research and development investment in cloud products, especially the new generation core product Kingdee cloud · sky sky, and the impact of health events, Kingdee International has a negative impact on the market business of the company’s small and medium-sized enterprises. In the first half of the year, the company recorded a loss of about 224 million yuan, with a profit of 110 million yuan in the same period of last year, and its revenue fell by 6.6% to 1.39 billion yuan year on year Pay interim interest. The novel coronavirus outbreak has adverse effects on the market business of small and micro businesses,

Kingdee said. The group adjusted its business model according to strategic planning, mainly developed and promoted subscription cloud products, and stopped selling some enterprise resource management software license products.