Kingdee International Software : IR Newsletter 2Q 2019

金蝶國際軟件集團有限公司

Kingdee International Software Group Company Limited

268.HK

Summary of Operating Activities during

the Period

Kingdee Teamed up with Yiyang Government and Huawei to Build a National-Level Industrial Internet Platform to Promote Industrial Upgrade

On 3 April 2019, the Yiyang Municipal People's Government in Hunan Province, Huawei and Kingdee signed a strategic cooperation agreement at the 2019 New Smart City Summit (Yiyang) for joint development of Yiyang Industrial Internet application platform. The three parties will exert their respective advantages to build a nationallevel Yiyan Industrial Internet platform, to promote Cloud and platform adoption by Yiyang enterprises, thereby driving the development of the city's digital economy and the optimization and upgrading of its industrial structure.

2Q 2019 Kingdee Newsletter

Key News Briefing

• Robert Xu: Industrial Internet creates huge opportunities in the next decade
• Kingdee was included in the top 10 of ACCA's list of China's Next 100 Giants
• IDC Report: Kingdee CloudHub Took Top Spot in Booming SaaS Collaboration Market

Stock Information

(By 28/06/2019)

Closing Price	HKD 8.45
Shares Outstanding	3.311 Billion
Market Cap	HKD 28.001 Billion
52 Week Range	HKD 5.50-11.34
Listing Date	20/07/2005

Company Information

Company Website: http://www.kingdee.com.hk/

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Kingdee International Software Group

Co., Ltd.

Fredrick Law(Director)

Email: [e-mail]

Summer Gan (Director)

Email：[e-mail]

Yoriko Huang (Manager)

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Rachel Kwok/David Shiu/Aggie Fang

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Summary of Operating Activities during the Period

Kingdee Strengthened Cooperation with Xinren Xinshi: Provide Digital Solutions to Micro, Small and Medium-sized Enterprises

On 12 April, the 2019 Strategic Development

Conference of Xinren Xinshi and Kingdee featuring the theme of "Beyond Connection, Fusion and Symbiosis" was held in Beijing. The cooperation between both companies was reinforced after Kingdee's investment in Xinren Xinshi last year. Lin Bo, the CFO of Kingdee, and Chang Xinglong, the CEO of Xinren Xinshi, attended the conference.

At this conference, Xinren Xinshi officially launched Haotian System. It is mainly a data- driven system that integrates with financial management system and provides a collaborative work environment, thereby breaking through the limitations of traditional human resources system. This conference also marked the first public occasion for joint product launch of Kingdee's Cloud product and Xinren Xinshi after the latter had received strategic investment from Kingdee. Both sides have worked closely with each other to provide more comprehensive Cloud services to enterprises. In the future, Kingdee will continue to leverage its strengths in market development and distribution channels to help Xinren Xinshi expand its businesses.

Lin Bo Was Named One of China's Top10 CFO of the Year 2018

On 26 April 2019, the 14th China CFO Conference and CFO of the Year 2018 Awards Presentation Ceremony was held in Beijing It was organized by New Financial Magazine, the Ministry of Finance. Lin Bo, the executive director, CFO and the vice president of Kingdee was named one of China's Top 10 CFO of the Year 2018.

As the CFO of Kingdee, Lin Bo has rich experience in strategic planning, operation management, financial management and investment. In order to fully implement Kingdee's transformation towards Cloud business, Lin Bo took the lead to complete various strategic plans for the expansion of Kingdee Cloud businesses, including the investments in Xinren Xinshi and FXiaoKe.

He also introduced Dasouche as its strategic investor, which laid a solid foundation for Kingdee's transformation towards Cloud business. In 2018, Kingdee achieved revenue growth of 21.9% year-on-year, with revenue from Kingdee Cloud business surged 49.5% year-on-year.

Summary of Operating Activities during the Period

Kingdee Took Part in the 2nd "Digital China Summit", Gaining Wide Attention to Its Platform for Large Enterprises' Digital Transformation

On 6 May, the 2nd Digital China Summit with the theme of "creating new applications with

information technology, promoting new developments with new applications and developing new drivers with new developments" was held in Fuzhou. As a well-known Cloud service provider in China, Kingdee was invited by the organizers to display its latest application solutions at the summit, such as "Kingdee Cloud Cosmic", "Kingdee Industrial Internet Platform" and "Digital Factory". They manifest the new tr-

-end of digital transformation undertaken by the government and enterprises in the age of digital economy.

Up to now, Kingdee Cloud Cosmic has established strategic partnerships with various large conglomerates, including Wen's Group, Huawei, C&D Corporation, PetroChina International, Shenzhen Yuanzhi Investment, Ecolovo Group, Wintop. In the next decade, medium and large-sized enterprises will use Cloud-native platform to reconstruct their own systems, and Kingdee Cloud Cosmic will continue to take the lead and support the digital transformation of large enterprises.

Guests from China Info 100 gathered together at Kingdee's headquarters to exchange views on future development of Industrial Internet

On 10 May, while spring was in the air, many guests from China Info 100 gathered together at Shenzhen Kingdee Software Park S to freely exchange their unique views on the current hottest topic of "Industrial Internet"

Robert Xu, the founder and chairman of Kingdee, delivered a welcome speech that the Company had persistently proceeded with Cloud transformation in recent years, which enabled it to ride the wave of Industrial Internet boom. Industrial Internet creates huge opportunities for the development of IT industry, and a major opportunity for the transformation and upgrading of traditional industries and enterprises. Kingdee not only provides the

back-end software for enterprise supply chain, but also expands into the business management field. He believes that Kingdee will excel in the era of Industrial Internet.

Summary of Operating Activities during the Period

Kingdee smashed things symbolizing 7 major shortcomings of traditional IT and expanded into Industrial Internet services

On 11 May, the first Kingdee Cloud Cosmic Summit was opened in Shenzhen. Robert Xu, the founder and chairman of Kingdee, lifted a hammer and smashed a giant "cocoon" symbolizing the inertia of business operators. This is the sixth time since 2014 that Kingdee has smashed personal computers, servers and the likes in order to demonstrate its determination to destroy the constraints

of traditional management and to establish a new order.

"Kingdee is going to smash the bondage of business operators' thought. With an open and ecological concept, we will help enterprises to reach out to customers directly, to fully implement the digitalization and industrial platform, to connect with their upstream and downstream enterprises, and to form a digital symbiosis," said Robert Xu. He stressed at the summit, "The next decade will see the age of Industrial Internet. The essence of Industrial Internet is not Internet, but the physical industries; the essence of physical industries is not enterprises, but the industrialvalue chains; the essence of the industrial value chains are not their possession, but their links."

Robert Xu: Industrial Internet creates huge opportunities in the next decade

On 11 May, the "First Kingdee Cloud Cosmic Summit" was held in Shenzhen Kingdee Software Park. At the meeting, Robert Xu, the founder and chairman of Kingdee, delivered a keynote speech entitled "The Road to Digital Leaders in the Industrial Internet

Era", highlighting that the Industrial Internet undoubtedly creates huge opportunities in the next decade. He believed that new technologies such as Internet, Big Data and artificial intelligence will profoundly reshape the industrial value chain of traditional industries and the core competence of each enterprise. At the same time, he believed that the Industrial Internet does not simply mean "industry + Internet", but "industry × Internet".

Summary of Operating Activities during the Period

Kingdee was included in the top 10 of ACCA's list of China's Next 100 Giants

The Association of Chartered Certified Accountants ("ACCA") has recently held its 2019 South China Summit in Guangzhou. During the summit, the list of "China's Next 100 Giants" (hereinafter referred to as "the list") was announced with an aim to identify a new generation of Chinese private enterprises with great development potential. The top 10 in the list are Changfei Fiber, Sophia, Kuka Home, Dazu Laser, Huatian Technology, Sina Weibo, Xinwei Communi-

-cation, Livzon Medicine, Kingdee International, Yonyou and Juneyao Airlines (tied for the tenth). It's noteworthy that nearly half of the companies in the top 10 came from Guangdong. Communication, Livzon Medicine, Kingdee International, Yonyou and Juneyao Airlines (tied for the tenth). It's noteworthy that nearly half of the companies in the top 10 came from Guangdong.

As the leader of the Chinese enterprise Cloud service market, Kingdee was included in the top 10 mainly attributable to its continuous transformation and innovation. "Transformation is a norm, and new technologies bring about tremendous changes in financial management. The core concept of our financial management is to make use of "unmanned accounting system to help everyone to manage finance." Its primary goal is to shift from management to empowerment, the empowerment of every individual.

Robert Xu donated RMB45 million to his alma mater, Southeast University

While the Southeast University celebrated the 117th anniversary of its establishment, Robert Xu, the founder and chairman of Kingdee, announced that he would donate RMB45 million to his alma mater. According to the donation agreement, the proceeds of RMB45 million would mainly be used to finance the construction of a complex in the Southeast University, which would be

named "Youth Building".

Robert Xu is an outstanding alumnus who graduated from the Department of Computer Science and Engineering at the Southeast University (formerly Nanjing Institute of Technology) in 1979. Under his leadership, Kingdee International Software Group, became the first Hong Kong-listed software company and the largest enterprise Cloud service company in China. Robert Xu feels that his study experience at the alma mater is a very valuable asset to him. He has always been deeply grateful to his alma mater. In order to give back to his alma mater and to cheer for his junior fellows, Robert Xu made the afore mentioned donation.