Kingdee International Software : Announcements and Notices - Profit Warning

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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED

金蝶國際軟件集團有限公司

（於開曼群島註冊成立的有限公司）

（股份代號：268）

PROFIT WARNING

This announcement is made by Kingdee International Software Group Company Limited (the ''Company'') pursuant to Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) (the ''SFO'') and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'').

The board of directors of the Company (the ''Board'') wishes to inform the shareholders of the Company and potential investors that, based on the preliminary assessment of the unaudited management accounts of the Company and its subsidiaries (the ''Group'') for the six months ended 30 June 2019 and the information currently available to the Board, the Group expects to record an increase in total revenue by approximately 15%-20% over the same period in 2018 to approximately between RMB1,470,970,000 to RMB1,534,920,000 (the six months ended 30 June 2018: RMB 1,279,100,000). Revenue from cloud services increased by approximately 50%-60% over the same period in 2018 to approximately between RMB532,720,000 to RMB568,240,000 (the six months ended 30 June 2018: RMB355,150,000). For the reason that the Company accelerated in its execution of cloud transformation strategies and increased strategic input in the development of Kingdee Cloud Cosmic business, the profits of the Group are under pressure. As a result of the above matters, the Board considers that the Group expects to record a decrease in profit attributable to owners of the Company for the six months ended 30 June 2019 by approximately 30%-40% over the same period in 2018 to approximately between RMB101,870,000 to RMB118,840,000 (the six months ended 30 June 2018:

RMB 169,780,000). The Company will continue accelerating in its execution of cloud transformation strategies, and the management of the Company has full confidence in long-term development of the Company.

The Company is still in the process of finalising its results for the six months ended 30 June 2019. The information contained in this announcement is only a preliminary assessment by the Board based on the figures and information currently available, and have not been audited or reviewed by the Company's auditor or the audit committee of the Company. Further details of the Group's financial results for the six months ended 30 June 2019 will be announced in due course.

Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

Kingdee International Software

Group Company Limited

Xu Shao Chun

Chairman

Shenzhen, the People's Republic of China, 5 July 2019

As at the date of this announcement, the Board comprises Mr. Xu Shao Chun (Chairman of the Board and Chief Executive Officer), Mr. Lin Bo as executive directors; Ms. Dong Ming Zhu and Mr. Shen Yuan Qing as non-executive directors and Mr. Gary Clark Biddle, Mr. Cao Yang Feng and Mr. Liu Chia Yung as independent non-executive directors.