Yonyou's strategy to raise profit margin
By Rich Zhu |
April 26, 2013, Friday
|
Print Edition
Print Edition
YONYOU Software will establish a cloud-computing platform this year in a bid to improve profit margin after its net earnings tumbled 29 percent last year, China's biggest enterprise software maker said yesterday in Shanghai.
"The new platform strategy will help us target more clients and we are glad to invite them to join the platform to establish a better eco-system," Xiang Qihan, Yonyou's executive president, said.
Yonyou has invested heavily in cloud computing technology, which allows users to upload, edit, share and store data in an online platform through various devices.
"With the platform strategy (sharing income with partners), our revenue growth rate is expected to slow down but profit margin will improve," Xiang added.
Yonyou has diversified from just selling software to providing enterprise clients software, on-site operation, and consulting services based on its platform.
In 2012, Shanghai-listed Yonyou's net profit fell an annual 29 percent to 380 million yuan (US$60.3 million).
"The new platform strategy will help us target more clients and we are glad to invite them to join the platform to establish a better eco-system," Xiang Qihan, Yonyou's executive president, said.
Yonyou has invested heavily in cloud computing technology, which allows users to upload, edit, share and store data in an online platform through various devices.
"With the platform strategy (sharing income with partners), our revenue growth rate is expected to slow down but profit margin will improve," Xiang added.
Yonyou has diversified from just selling software to providing enterprise clients software, on-site operation, and consulting services based on its platform.
In 2012, Shanghai-listed Yonyou's net profit fell an annual 29 percent to 380 million yuan (US$60.3 million).
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