Category: Money tips Release Date: 2006-08-14
Daily news cast off the "blue collar" label
Kingdee International Software Group Ltd. (0268.HK, hereinafter referred to as Kingdee) Chairman Xu Shaochun long sighs of relief.
The company just released mid-year report for fiscal year 2006, as of June 30 this year, Kingdee total revenues reached 287 million, representing an increase of 17% over the same period last year. Among them, software sales rose 7.8%, reaching 213 million yuan; software implementation services rose to 39.75 million yuan, an increase of 73.9%. The net profit margin was 10.6%, compared with same period last year by 1%.
This series of figures seems to declare, Kingdee has been cast off with "labor-intensive" and "zero-profit trend," characterized by "blue collar" label.
"This is what I have been searching for the Blue Ocean." September 17, Xu Shaochun interview was very excited.
The four growth points Kingdee
"21st Century": for profit growth, the explanation is that the high-end market, reported a breakthrough. So, high-end market in the end how well?
Xu Shaochun: high-end products EAS in the first half grew 64%, this market breakthrough for us is of strategic significance.
On the product itself is concerned, at least show that EAS has moved from the technological advantages of the past into a market advantage, we have to win the Vanke Group and other customers that this product has received customer validation and recognition. And the main rival of the high-end products accounted for the entire software revenue, down from last year's 23% of the middle of this year reported 15%.
On the other hand, customers in the industrial chain, these groups are leading enterprises to use Kingdee's products, the downstream and peripheral business is very big impact on our product sales of more than mid-range has played a very active role. Currently, major customers right in the end product sales drive probably about 10%, this percentage is increasing, with the same period last year an increase of around 7% -8%.
"21st Century": Kingdee whether this growth sustainable? Kingdee sustained growth may appear in the where?
Xu Shaochun: first, high-end EAS products have entered the period of rapid growth, the break in the middle of this year reported statistics that have been clearly manifested.
Second, the service will certainly going to be a new growth point, the global trend also do so. We now have many ways to provide personalized service, plus there are more than 40 million customers, based on revenue from this source will continue to grow. Kingdee the first half of the service revenues increased 52%, we need to be maintained.
The third point is based on growth in mobile, Internet business, this new business will become a new growth point, but also make our charging model, profit model to change. Such as mobile commerce bring traffic to our revenue, we are in cooperation with the share of telecom.
Another growth point is SaaS (On-line rental) mode. China has a lot of individuals less than 50 micro-enterprises, are extremely bothered by purchasing software, hardware, and maintenance of cost control, and now they can be rented through the network of our products, may be as long as a month to pay about 500 yuan service fee, you can enjoy the Our full service.
