Kingdee plows more cash into loss-making cloud service

Business | 14 Aug 2019 4:47 pm

Kingdee International Software (0268) chief financial officer Lin Bo said the transformation of its cloud service will bring pressure on the company's performance and will try to control costs.

Lin expects the Kingdee Cloud Cosmic business, a cloud service platform for large enterprises, to turn losses into gains in two or three years.

Kingdee will pool 200 million to 300 million yuan into the business.

Meanwhile, Kingdee Cloud Galaxy business, a cloud enterprise resource planning platform for growth companies, may record a profit in the second half, depite a loss of 10 million yuan in the first six months, Lin said.

Chairman Xu Shaochun said Sino-US trade war has not impacted the group's cooperation with Amazon.

Shares of Kingdee International Software added 6.52 percent to HK$7.51 as of 13:48 p.m. 

Net profit for the six months ended June 30 slumped by 35.4 percent year-on-year to 109.64 million yuan. Revenue increased by 16.1 percent year-on-year to 1.49 billion yuan.

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