The digital economy is rapidly developing both in China and on a global scale. The convergence of three distinct waves, namely digital intelligence, localization, and globalization, has resulted in substantial market opportunities. In light of these circumstances, Yonyou Network is presented with a unique opportunity for growth and development, by entering the Yonyou Network 3.0 strategic development phase.
Yonyou Network Technology Co., Ltd (hereinafter referred to as "Yonyou Network", Chinese: 用友网络, SH: 600588), headquartered in Beijing, recently announced its unaudited financial results for the first quarter ended March 31, 2023. The financial reports show that Yonyou Network achieved total operating revenue of CNY 1.48 billion (USD 207.05 million), up 15.3% year-on-year, and a net profit loss of CNY 397 million, compared with a loss of CNY 393 million in the same period last year.
In terms of cloud service business revenue, the company achieved a total revenue of CNY 950 million, up 27.0% year-on-year. The revenue of cloud service business accounted for 64.4% of the operating revenue. Among them, cloud services for large enterprises reached CNY 567.91 million, up 20.2% year-on-year; cloud services for medium-sized enterprises reached CNY 145.89 million, an increase of 64.8% from the same period last year; and cloud subscription revenue for small and micro enterprises reached CNY 112.41 million, up 31.5% over the previous year.
Founded in 1988, Yonyou Network is a leading global provider of enterprise cloud services and software, continuously committed to driving business and social progress with creativity and technology. Currently, Yonyou Network is building and running the world's leading business innovation platform, Yonyou BIP, to serve enterprises' digital intelligence transformation and business innovation and achieve millions of digital intelligence enterprises. According to Gartner research, Yonyou ranked first in the Asia-Pacific region in the global ERP SaaS market. It is the only China enterprise-level SaaS vendor selected among the top 15 global application platform software, the only China vendor selected in the Gartner Global Cloud ERP Market Guide, and Comprehensive Human Resource Service Market Guide.
In terms of SaaS, Yonyou Network performed exceptionally well. According to the "China Enterprise-level SaaS Market Tracking Report (2022H2)" released by world-renowned IT market research firm IDC, Yonyou Network has won several market firsts in China's enterprise application SaaS market, covering the No. 1 market share in EA (enterprise application) SaaS, No. 1 market share in ERM (enterprise resource management) SaaS, No. 1 market share in finance SaaS, and No. 1 market share in SCM (supply chain) SaaS.
In terms of overseas business, Yonyou Network's global business started in 2003 with the establishment of its overseas headquarters in Hong Kong. So far, Yonyou Network has been rooted in overseas markets for 20 years, with branches and local service teams in Singapore, Malaysia, Thailand, Indonesia and other places, covering more than 40 countries and regions, and ranking first in the number of overseas ERP customers and revenue scale in the same industry in China. At present, Yonyou Network has over 230 branches and 10,000 strategic partners worldwide. In 2023, Yonyou Network upgrades its global business system from Globalization 1.0 to Globalization 2.0, with business moving from Asia Pacific to the world.
The major competitors of Yonyou Network include Chinese companies such as Kingdee (Chinese: 金蝶), China National Software (Chinese: 中国软件), as well as international players such as SAP from Germany, and Oracle from the United States.
As of press time, Yonyou Network closed at CNY 27.71 apiece, with a market cap of CNY 74.53 billion.