Yonyou Network Technology Announces its Annual Report 2021, Cloud Services Revenue Up 55.5% Year-on-Year
Yonyou Network Technology (together with its subsidiaries, is referred to as the “Yonyou”, Stock Code: 600588.SH) announced its financial results for 2021. Gross revenue amounted to RMB 8.932 billion (USD$1.404 billion). Revenue from cloud services (excluding financial cloud services) amounted to RMB 5.321 billion (USD$836 million), up 55.5% year-on-year.
Steady and Fast Growth in Cloud Services Revenue
During the Period, Yonyou’s cloud services grew fast and steadily, 61.6% of revenue comes from cloud services. Revenue from cloud services for large enterprises grew 45.4% year-on-year; revenue from cloud services for mid-size enterprises grew 150.3% year-on-year; revenue from cloud services for small and micro enterprises grew 111.2% year-on-year.
Yonyou continues to develop YonBIP, the world’s leading business innovation platform, increasing its R&D investment to enhance capability of cloud service products. During the reporting period, Yonyou invested RMB2.35 billion in R&D, representing a year-on-year increase of 40.7%, which takes up 26.4% of revenue.
According to Gartner, Yonyou is the only APAC vendor listed in the TOP10 Global ERP software. Yonyou is the No. 1 vendor in the Global SaaS ERP market, and the only China-based vendor listed in Gartner’s Market Guide for Service-Centric Cloud ERP Solutions, and the Market Guide for Integrated HR Service Management Solutions. At the same time, IDC reports show that Yonyou continues to dominate the China’s market, with the No. 1 market share in APaaS market and Enterprise Application SaaS Market.
Serving Large Enterprises with Digital Intelligence
Yonyou has been actively seizing opportunities of developing digital intelligence and software nationalization for large enterprises and has continued to consolidate its absolute leading position. During the reporting period, revenue from cloud service for large enterprises amounted to RMB 3.73 billion, representing a year-on-year growth of 45.4%; the renewal rate of large enterprises for Yonyou’s cloud services reached 103%, and the amount of bulk orders over RMB 5 million increased by 45% year-on-year, with some customers signing contracts of over RMB 100 million.
During the reporting period, Yonyou achieved a breakthrough of signing more than 10 complete contracts in state-owned enterprises, leading the vertical industries such as finance, telecommunication and broadcasting, tobacco and automobile. Leading clients including State Development & Investment Corporation, China Mobile, China Everbright Bank and so on.
Leapfrog Development in Cloud Services for Growing Enterprises
During the reporting period, Yonyou quickly expanded the medium-sized enterprise market through YonSuite, U9C and U8C products to meet different customer needs, resulting in a 150.3% year-over-year growth in cloud services revenue.
YonSuite is China’s first cloud-native, all-in-one SaaS platform for growing enterprises, offering over 20 solutions from 30 industries. U9C targets mid-size enterprises in manufacturing industry, while U8C focuses on service industry, such as trade and commerce, real estate and construction sectors, supporting flexible deployment of public and hybrid clouds.
Subscription for Small and Micro Enterprises Doubles
During the reporting period, Yonyou comprehensively supported the business growth of cloud services. The revenue of cloud services business reached RMB 590 million, representing a year-on-year growth of 111.2%; the number of subscription of cloud services reached 180,000, representing a year-on-year growth of 201%.
Grow with Ecosystem Partners
With strategic partners taking YonBIP as the core, Yonyou builds the integration strategy of developing strategic alliances, integration partners, cloud marketplaces, one-stop services and platform-based businesses, in order to execute five action plans of partner ecosystem.
During the reporting period, Yonyou has cooperated with more than 2,200 business partners, 970 ISV partners, 370 professional service partners, 1,700 banks, 10,000 partners in YonStore, Yonyou’s cloud marketplace, 15,000 products in YonStore, and 126 listed products.
In the future, Yonyou will promote YonBIP to more than 10 million enterprises, gather 100,000 ecosystem partners and billions of individuals in the community, fostering business innovation with professional services and prosperous ecosystem. Yonyou will continue to lead the enterprise cloud services market, to boost the development of cloud services, to empower technology innovation in China’s economy.
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