One of China’s first listed software companies has seen its stock plunge on a first-half profit warning.  

Shenzhen-based Kingdee International Software Group issued a profit warning Friday for the first half of the year, saying that net profit could have dropped by 30% to 40%, potentially falling as low as 100 million yuan ($14.5 million), though the firm said its total revenue is expected to increase and it has seen strong growth in its cloud business, according to a stock filing.

The company attributed the net profit loss to “pressure” brought by transformation in its cloud business, which the company has mentioned in several filings without providing details.

Beijing-based investment bank China International Capital Corp. has since lowered Kingdee’s target share price to HK$7 ($0.89). Kingdee’s stock in Hong Kong dropped by as much 16% Monday morning — the greatest drop Kingdee has recorded during a trading day since June 2015 — before recovering to close 13% down at HK$6.98 by the lunch break.

On March 18, Kingdee’s stock price dropped 14% after independent analyst Daivd Webb released a report which argued the company’s booked profits were the product of non-operational gains such as tax breaks, government grants and questionable transactions, which Kingdee denied. Before Webb published his criticism, Kingdee’s stock price had risen over 50% from the start of the year.

Contact reporter Zhao Runhua (runhuazhao@caixin.com)