Kingdee International announced 2005 earnings net profit exceeded 70 million yuan

March 29th, Kingdee International Software Group Company Limited (referred to as Kingdee International) announced its 2005 annual results, as of December 31, 2005, the group continued to maintain business growth, turnover of 529343000 yuan, compared with the same period in 2004 increased by 19%. Gross profit growth of 18% to RMB 425497000 yuan, net profit increased by $72290000 to $40%, while net profit margin increased to 13.7%. The Board proposes to issue a final dividend of HK $0.045 per share (2004: HK $0.04).

During the reporting period, Kingdee International software sales revenue 377105000 yuan, compared to 2004 increased by about 16%, accounting for about 71% of overall turnover; achieve service revenue of 147137000 yuan, compared to 2004 increased by about 25%, accounting for about 28% of total turnover.

From the above data analysis shows that 19.20% of its net assets income rate is much higher than its main domestic rival 8.20% UF, Kingdee visible ability to create value for shareholders is far higher than the competitors; the net profit rate is 13.70%, Kingdee UFIDA 9.90% higher than 38.4%, which also shows that the internal management structure of Kingdee better than competitors, profitability is higher than competitors.

Xu Shaochun, chairman and chief executive officer, said: "with strong marketing, service, partner networks and a large customer base, the group continued to maintain market leadership in 2005. The year under review, the group uses innovative differentiated products and services, and actively strengthen the distribution network in small and medium-sized enterprises continue to consolidate the market, expanding in financial and human resources management software and other large enterprise applications market share, the business continued to maintain steady growth. In addition, the group listed on the main board in July 20, 2005, help to improve the basis of shareholders and shares in circulation, enhance the company's brand image."

2005, Kingdee International launched the low-end market for Kingdee KIS professional edition and consolidate the end of the market Kingdee K/3 V10.2 two upgraded versions. In addition, the group also launched during the year, the basic software platform - Kingdee BOS and high-end ERP products - Kingdee EAS V5.0 version. In order to grasp the market opportunity, the group launched Kingdee Apusic application server 4.1. Kingdee Apusic is the first in China, the world's eleventh through the international standard J2EE1.4 certification middleware products, has been applied in a number of major projects.

With a strong marketing and service network, partners and a huge customer base, an investigation by the independent third party evaluation mechanism, the group continued to maintain market leadership in 2005: the market share of the first small and medium sized enterprises. (IDC "2004 Asia Pacific Software tracking key" and "the first half of the 2005 Asia Pacific Software tracking key")

In addition to continue to maintain and IBM, CITRIX and HYPERION and other global partners in technology, marketing and other aspects of close cooperation with China Mobile, Kingdee International Communication Limited company released the first mobile commerce products, to explore the tremendous business opportunities in mobile commerce market, mobile management and meet more and more enterprise managers.

Kingdee International President Xu Shaochun concluded: 2006 is the group's strategy for the next five years of the start of the year, the group as Chinese software industry leader in the next five years will continue to adhere to the "leading products, partner, active service, development strategy and rapid reaction, with innovation and pioneering" blue Ocean Strategy "and the implementation of the" ERP personalized plan ", and comprehensively promote the innovation of products, channels and organization ability three aspects, consolidation in the small and medium-sized enterprise ERP market and large enterprise financial management and human resource management software market, in order to consolidate the group in China middleware software market leadership for shareholder value and returns the ideal.