Kingdee International Software : Announcements and Notices - Annual Results Announcement for ...

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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY

LIMITED

金蝶國際軟件集團有限公司

（incorporated in the Cayman Islands with limited liability）

(Stock Code: 268)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2018

The board (the "Board") of directors (the "Directors") of Kingdee International Software Group Company Limited ("Kingdee International" or the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2018, together with the comparative audited consolidated figures for the year ended 31 December 2017 are as follows:

Financial highlights for the year ended 31 December 2018

• － Revenue increased by approximately 21.9% compared with 2017 to approximately RMB2,808,658,000.

• － Profit attributable to owners of the Company increased by approximately 32.9% compared with 2017 to approximately RMB412,106,000.

• － Net cash generated from operating activities increased by approximately 9.9% compared with 2017 to approximately RMB905,515,000.

－

Basic earnings per share attributable to owners of the Company during the year increased by approximately 19.5% to approximately RMB13.19 cents (2017: RMB11.04 cents).

－ The Directors recommend the payment by the year ended 31 December 2018 of a

final dividend of RMB1.0 cents per share in respect of the year ended 31 December 2018 (2017: RMB1.3 cents per share).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Notes	2017
RMB'000	RMB'000
Assets
Non-current assets
Land use rights	67,545	69,405
Property, plant and equipment	490,236	510,213
Intangible assets	899,668	817,284
Investment properties	1,816,206	1,721,690
Investments in associates	234,403	31,420
Deferred income tax assets	49	55
Financial assets at fair value through profit or loss	427,456	6,286
Available-for-sale financial assets	-	50,053
Loans to related parties	4	464,537	59,160
Loans to third parties	4	18,940	2,910
4,419,040	3,268,476
Current assets
Inventories	8,436	14,057
Trade and other receivables	4	286,615	319,557
Loans to related parties	4	256,976	104,979
Entrusted loans	4	-	49,600
Loans to third parties	4	88,720	61,020
Contract assets	3	494,662	-
Due from customers on implementation contracts	-	432,802
Available-for-sale financial assets	-	396,818
Financial assets at fair value through profit or loss	211,430	-
Pledged bank deposits	152	2,254
Short-term bank deposits	359,674	1,095,820
Cash and cash equivalents	1,452,848	1,056,675
3,159,513	3,533,582
Total assets	7,578,553	6,802,058

As at 31 December 2018

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

As at 31 December

Notes	2018	2017
RMB'000	RMB'000
Liabilities
Non-current liabilities
Borrowings	5	-	1,193,503
Deferred income tax liabilities	179,319	160,598
179,319	1,354,101
Current liabilities
Trade and other payables	6	580,716	678,120
Contract liabilities	3	846,755	-
Advances from customers on implementation contracts	-	323,897
Borrowings	5	301,125	155,026
Current income tax liabilities	35,890	50,007
Deferred income	7	102,081	197,827
1,866,567	1,404,877
Total liabilities	2,045,886	2,758,978
Net assets	5,532,667	4,043,080
Equity
Equity attributable to owners of the Company
Share capital	79,585	71,599
Share premium	2,903,459	1,681,289
Other reserves	565,259	694,669
Retained earnings	1,917,757	1,547,784
5,466,060	3,995,341
Non-controlling interests	66,607	47,739
Total equity	5,532,667	4,043,080

CONSOLIDATED INCOME STATEMENT

Year ended 31 December

Notes	2018	2017
RMB'000	RMB'000
Revenue from contracts with customers	3,8	2,808,658	2,303,458
Cost of sales	9	(514,339)	(426,974)
Gross profit	2,294,319	1,876,484
Selling and marketing expenses	9	(1,491,302)	(1,235,882)
Administrative expenses	9	(334,342)	(320,203)
Net impairment losses on financial assets and contract
assets	9	(47,697)	-
Research and development costs	9	(405,158)	(345,317)
Fair value gains on investment properties	94,516	96,419
Other income and gains - net	10	342,971	349,258
Operating profit	453,307	420,759
Finance income	29,444	40,029
Finance costs	(30,481)	(67,141)
Finance costs - net	11	(1,037)	(27,112)
Share of losses of associates	(4,240)	(15,227)
Profit before income tax	448,030	378,420
Income tax expense	12	(38,760)	(54,808)
Profit for the year	409,270	323,612
Profit/(loss) attributable to:
Owners of the Company	412,106	310,004
Non-controlling interests	(2,836)	13,608
409,270	323,612
Earnings per share for profit attributable to owners
of the Company (expressed in RMB cents per share)
- Basic	14	13.19	11.04
- Diluted	14	12.45	10.75

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 December

2018	2017
RMB'000	RMB'000
Profit for the year	409,270	323,612
Other comprehensive income:
Items that may not be reclassified to profit or loss:
Revaluation gains on properties upon transfer from property,
plant and equipment and land use rights to investment
properties, net of tax	-	346,500
Items that may be reclassified to profit or loss:
Change in fair value of available-for-sale financial assets, net of
tax	-	267
Reclassify to profit or loss upon disposal of available-for-sale
financial assets	-	(1,855)
Currency translation differences	67,029	11,227
Other comprehensive income for the year, net of tax	67,029	356,139
Total comprehensive income for the year	476,299	679,751
Total comprehensive income/(loss) attributable to:
Owners of the Company	479,135	666,143
Non-controlling interests	(2,836)	13,608
476,299	679,751