Key Points - **Industry/Company**: Economic International - **Core Viewpoints and Arguments**: The presenter, Du Peng from GF Securities, maintains an "outperform" recommendation for Economic International at the current time node [1]. - **Other Important Content**: N/A

Investment Rating - The report assigns a "Buy" rating to the company with a current price of 8.11 HKD and a target value of 11.88 HKD [1][4]. Core Views - The economic growth outlook has positively changed, with increased policy support for enterprises, which is expected to enhance revenue forecasts and cash flow, positively impacting the company's valuation [2][4]. - The company is actively seizing opportunities in the digital transformation of large enterprises and has made significant progress in securing contracts with major clients [2][4]. - The report maintains an optimistic outlook on the company's prospects based on positive policy adjustments and confidence in the economic fundamentals [2][4]. Summary by Sections Economic Outlook - Recent announcements from the central bank and financial regulatory bodies indicate a package of counter-cyclical policies, including a 20 basis point interest rate cut, which is expected to stimulate economic activity [2]. - The central government's commitment to supporting enterprises and creating a favorable environment for private economic development is highlighted [2]. Revenue Forecasts - The company is projected to achieve revenues of 6.506 billion RMB in 2024, 7.539 billion RMB in 2025, and 8.881 billion RMB in 2026, with year-on-year growth rates of 14.6%, 15.9%, and 17.8% respectively [4][5]. - The company is positioned as a leading player in the domestic cloud ERP market, with a strong competitive product offering and increasing market share [4]. Valuation - The report suggests a valuation of 6x PS for 2024, leading to a target price of approximately 11.88 HKD per share, based on comparable company analysis [4][5]. - The report emphasizes the company's strong financial metrics, including a low accounts receivable to total assets ratio, indicating good financial health compared to peers [4].

Investment Rating - The investment rating for the company is "Buy" with a target price set at 5.96 HKD, maintaining the rating from previous assessments [4]. Core Views - The report highlights that the company's mid-term profit margin visibility is expected to improve due to favorable conditions on both the numerator and denominator sides, with macroeconomic expectations stabilizing [1]. - The company's main product, the financial cloud service, is considered a strong necessity for enterprises, leading to a stable demand forecast for the entire year [2]. - Cost reduction and efficiency improvements are anticipated, with the R&D expense ratio expected to drop below 20% by 2026 [3]. Summary by Sections Investment Rating - The company is rated as "Buy" with a 6-month outlook indicating a potential return of over 20% relative to the Hang Seng Index [11]. Financial Performance - The company is projected to achieve revenues of approximately 64.50 billion RMB in 2024, with net profit estimates adjusted to -0.22 billion RMB for the same year [3]. Market Conditions - The SaaS assets are sensitive to the denominator side, and with the onset of a rate-cutting cycle, the company's valuation is expected to benefit [1]. - The macroeconomic environment is stabilizing, alleviating previous concerns regarding the impact of small and medium enterprises on business performance [1]. Demand Stability - The company maintains a high renewal rate of 95% for its services, indicating strong customer retention and demand stability [2]. - The average revenue per user (ARPU) for the company's services is reported at 50,000 RMB, which is 25% of the average salary for A-share listed companies [2]. Cost Management - The report notes that the software industry has begun more decisive cost-cutting measures, which are expected to reflect positively in financial results by 2025 [3]. - The historical R&D investment ratio for the company is being adjusted, with expectations for a decrease from 25% in 2023 to below 20% by 2026 [3].

Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Insights - The company is experiencing steady revenue growth, with a projected increase in revenue from 5,679 million in 2023 to 8,810 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 16.1% [2][3]. - The gross profit margin is expected to remain stable, with a slight increase from 64.2% in 2023 to 65.3% in 2026 [2][3]. - The company is focusing on cloud services and AI applications, with significant growth in its cloud service revenues, particularly from large enterprises and small businesses [2][3]. - The company reported a narrowing of losses, with a projected return to profitability by 2025, expecting a net profit of 128 million [2][3]. Financial Summary - For 2024, the company anticipates revenues of 6,516 million, with a net loss of 23 million, improving to a profit of 128 million in 2025 and 295 million in 2026 [2][3]. - The operating cash flow is projected to increase significantly, from 6.5 billion in 2023 to 20.5 billion by 2026 [2][3]. - The company has a strong cash position, with cash and cash equivalents expected to rise from 2,964 million in 2023 to 7,119 million in 2026 [4]. Market Position - The company is capitalizing on the digital transformation of large enterprises in China, with a notable increase in contract signings and subscription ARR growth [2][3]. - The report highlights the company's leadership in the small and micro-enterprise market, with a revenue increase of 70.8% in its logistics efficiency applications [2][3].

Share Options and Awards - A total of 529,501,600 share options were granted under the 2005 Scheme, with 323,426,693 options exercised and 206,074,907 options lapsed, resulting in no outstanding options as of June 30, 2024[4]. - The 2015 Scheme has a remaining term of approximately 8 months, with 6,118,500 options outstanding as of June 30, 2024, representing about 7.21% of the total issued shares[5]. - The company may grant an additional 228,409,096 share options under the 2015 Scheme as of June 30, 2024, after accounting for options granted and lapsed[5]. - The exercise price of share options is determined by the Board and cannot be less than the highest of the closing price on the grant date, the average closing price for the preceding five trading days, or the nominal value of the shares[12]. - During the reporting period, a total of 1,707,500 share options were exercised, and 852,500 options lapsed, leaving 6,118,500 options held at the end of the period[15]. - The weighted average closing price prior to the exercise of share options by employees was approximately HK$8.75[15]. - The Share Award Scheme, adopted on December 4, 2015, has a remaining life of approximately one year and four months, aimed at incentivizing key employees and directors[17]. - All award shares granted under the Share Award Scheme relate to existing shares only, with no consideration required for acceptance or vesting[18]. - The Board has discretion in selecting participants for the Share Award Scheme and determining the number of award shares to be awarded[17]. - The terms of the Share Award Scheme do not specify a vesting period or any payment required upon acceptance of an award[19]. - The number of award shares available for grant under the Share Award Scheme decreased from 88,942,233 at the beginning of the Reporting Period to 84,225,153 at the end[26]. - During the Reporting Period, the Company granted a total of 12,821,280 award shares[26]. - The maximum number of shares that may be awarded to a selected participant under the Share Award Scheme in any twelve-month period shall not exceed 1% of the issued share capital, which is 107,830,808 shares as of June 30, 2024[26][29]. - The weighted average fair value of the award shares during the Reporting Period was HKD 7.32 per share[29]. - The weighted average closing price of the Shares immediately before the vesting date was approximately HKD 8.36[29]. - The vesting period for the award shares is four years[29]. - No consideration is required to be paid for the acceptance or vesting of the award shares[29]. - The Company granted 12,231,280 award shares on April 19, 2024, and 440,000 award shares on June 3, 2024[29]. - There were no award shares cancelled during the Reporting Period[32]. - The Board shall not make any further award of shares that will result in exceeding 3% of the issued share capital[26][29]. - During the Reporting Period, the percentage of Shares that may be issued in respect of options and awards under all share schemes is 0% as no options were granted[33]. Financial Performance - For the first half of 2024, Kingdee recorded total revenue of approximately RMB2,870 million, representing an increase of approximately 11.9% compared to the same period in 2023[99]. - Cloud services revenue grew by 17.2% year over year, contributing approximately 83.2% of the Group's total revenue, amounting to approximately RMB2,390 million[98]. - The Annual Recurring Revenue (ARR) for Kingdee Cloud subscription services reached approximately RMB3.15 billion, an increase of 24.2% year over year[98]. - Loss attributable to owners of the Company narrowed to approximately RMB217.9 million, a decrease of 23.2% year over year[100]. - Net cash flow from operating activities was an outflow of approximately RMB166.3 million, slightly improved from RMB168.9 million in the same period last year[101]. - Kingdee maintained the No.1 market share in China for SaaS ERM, Financial Cloud Services, and enterprise EPM according to IDC's 2023 reports[106]. - Kingdee Cloud Cosmic and Kingdee Cloud Constellation recorded Cloud Services revenue of approximately RMB546 million, an increase of approximately 38.9% year over year[110]. - Total signed contract amount for Kingdee's cloud services increased by approximately 63% year over year[110]. - Kingdee reported total revenue of RMB2,870,025,000 for the six months ended June 30, 2024, representing a year-over-year growth of 11.9%[125]. - Revenue from cloud services increased by 17.2% year-over-year to RMB2,389,247,000, accounting for approximately 83.2% of total group revenue[125][126]. - The financial cloud services for small and micro enterprises generated revenue of approximately RMB588 million, increasing by 17.3% year-over-year, with subscription ARR growing by 31%[119][122]. - Kingdee Cloud Galaxy achieved revenue of approximately RMB1,054 million, reflecting a year-over-year increase of 14.3%, with a total customer base exceeding 42,000[115][117]. - The gross profit for the group was approximately RMB1,815,187,000, marking a year-over-year increase of 14.3%, with a gross profit margin of 63.2%[129]. - The revenue from the ERP business and others decreased by approximately 8.8% year-over-year to RMB480,778,000[121][123]. - Kingdee Cloud Stellar's revenue surged by approximately 70.8% year-over-year, with a Net Dollar Retention (NDR) rate of 92%[119][122]. - Selling and marketing expenses increased by 7.2% year-over-year to approximately RMB1,224,514,000, but as a percentage of group revenue, it decreased from 44.5% to 42.7%[130]. - Administrative expenses totaled approximately RMB249,036,000, representing a year-over-year increase of 4.2%, with the percentage of administrative expenses to group revenue decreasing from 9.3% in 1H 2023 to 8.7% in 1H 2024[135]. - Research and development expenses amounted to approximately RMB852,021,000, reflecting a 2.8% year-over-year increase, with the R&D capitalization rate rising to 33.6%[132]. - The Group recorded an operating loss of approximately RMB317,060,000, an improvement of 18.3% compared to the operating loss of approximately RMB388,191,000 in 1H 2023[139]. - The finance income – net amounted to approximately RMB47,722,000, slightly increasing from approximately RMB47,195,000 in the same period of 2023[140]. - The income tax credit for the reporting period was approximately RMB24,707,000, compared to RMB13,562,000 in 1H 2023[141]. - The current loss attributable to owners of the Company was approximately RMB217,851,000, with a net loss margin of approximately 7.6%, improving from 11.1% in 1H 2023[142]. Capital Management and Subscription - The Company completed a Subscription on 14 December 2023, raising gross proceeds of HK$1,561,732,700 and net proceeds of approximately HK$1,560,982,700[41]. - The Subscription Price was set at HK$10.10 per share, with the closing price on 8 December 2023 being HK$10.38[41]. - The intended use of proceeds includes HK$1,248,786,000 (80%) for potential capital market transactions and HK$312,197,000 (20%) for general operation and working capital[42]. - The expected timeline for utilizing unutilized funds includes potential capital market transactions expected to be utilized by December 2025[42]. - The company aims to support its international strategy and optimize its capital structure through the recent Subscription[41]. Shareholder Information - As of June 30, 2024, the total number of issued shares is 3,594,360,271[51]. - Xu Shao Chun holds a total of 703,303,689 shares, representing approximately 19.57% of the total issued shares[51]. - Easy Key Holdings Limited has an interest in 682,198,624 shares, accounting for 18.98% of the total issued shares[60]. - Oriental Tao Limited holds 386,312,000 shares, which is about 10.75% of the total issued shares[60]. - The percentage of shares held by Gary Clark Biddle is 0.03%, with 1,230,000 shares[51]. - Dong Ming Zhu owns 400,000 shares, representing 0.01% of the total issued shares[51]. - The report indicates that no other directors or chief executives had interests in shares or debentures that required disclosure as of June 30, 2024[53]. - The company has not granted any rights or options to acquire shares or debentures to directors during the reporting period[54]. - The total number of shares held by Lin Bo is 2,107,627, which is approximately 0.06% of the total issued shares[51]. - Billion Tao Limited holds 295,886,624 shares, representing 8.23% of the total issued shares of 3,594,360,271 as of June 30, 2024[62]. - BlackRock, Inc. has a total interest in 180,450,107 shares, accounting for 5.02% of the total issued shares[62]. - BlackRock, Inc. holds 6,114,000 short positions, which is 0.17% of the total issued shares[62]. - BlackRock Investment Management Ireland Holdings Unlimited Company has a direct interest of 25,133,855 shares[66]. - The company has not identified any other persons with interests or short positions in the shares as of June 30, 2024[67]. Corporate Governance and Compliance - The company complied with all corporate governance code provisions, except for the roles of chairman and CEO being held by the same individual[82]. - The audit committee reviewed the Group's unaudited consolidated results and confirmed compliance with applicable accounting standards[90]. - The company arranged training for directors and senior management to enhance compliance with listing rules and regulations[83]. - The company confirmed that all directors complied with the code of conduct regarding securities transactions during the reporting period[85]. Financial Position and Risk Management - The Group's total cash and bank deposits decreased to RMB 4,191,310,000 as of June 30, 2024, from RMB 5,692,651,000 as of December 31, 2023, a decline of about 26.4%[170][175]. - The current ratio of current assets over current liabilities was approximately 1.07 as of June 30, 2024, indicating a slight decrease in liquidity compared to previous periods[171]. - The Group's borrowings decreased significantly to RMB 359,600,000 as of June 30, 2024, from RMB 776,900,000 as of December 31, 2023, a reduction of approximately 53.8%[172]. - The gearing ratio as of June 30, 2024, was 62.08%, slightly down from 62.48% as of December 31, 2023, indicating a marginal improvement in financial leverage[169][174]. - The Group held asset management products valued at RMB 85,194,000 as of June 30, 2024, a significant increase from RMB 6,000,000 as of December 31, 2023[170][175]. - The Group's net current assets were approximately RMB 326,904,000 as of June 30, 2024, down from RMB 1,174,033,000 as of December 31, 2023, indicating a decrease of about 72.1%[171]. - The interest rates on loans to third parties remained stable, ranging from 4.28% to 24.00% as of June 30, 2024, consistent with the previous reporting period[162][165]. - The Group has assessed the credit quality of distributors based on their financial position and past experience, setting individual risk limits accordingly[188]. - There is no significant concentration of credit risk in trade receivables from end customers, as the balance is composed of numerous small items spread over a large number of customers[190]. - The Group's investments in debt instruments, including loans to third parties, are considered low risk, with credit ratings monitored for deterioration[190]. - The Group has implemented sophisticated fund management policies to enhance the effectiveness and efficiency of fund management, ensuring financial security and reducing capital costs[194]. - The Group manages idle cash by purchasing wealth management products, which provide higher yields than bank deposits[195]. - A disciplined fund management principle has been established to efficiently manage market risks, supported by annual and monthly funding plans[196]. - The Group has a monthly, quarterly, and annual budget management system approved by the chief financial officer to align capital budget plans with actual business needs[197].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of HKD 11.88 per share, reflecting a reasonable market capitalization of HKD 42.60 billion based on a 6x PS for 2024 [3][10]. Core Insights - The company reported a revenue of RMB 2.87 billion for the first half of 2024, representing a year-on-year growth of 11.9%, while the net profit attributable to shareholders showed a loss of RMB 218 million, which is a narrowing of 23.2% year-on-year [2][10]. - The cloud services segment continues to grow, with revenue reaching RMB 2.39 billion, up 17.2% year-on-year, and accounting for 83.2% of total group revenue [2][10]. - The large enterprise business is experiencing significant growth, with revenues from Kingdee Cloud·Cangqiong and Kingdee Cloud·Xinghan increasing by 38.9% year-on-year to RMB 546 million, and contract signing amounts growing approximately 63% year-on-year [2][10]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved a revenue of RMB 2.87 billion, with a year-on-year growth of 11.9% and a net loss of RMB 218 million, which is a 23.2% improvement from the previous year [2][10]. - The sales, management, and R&D expense ratios were 42.7%, 8.7%, and 28.1%, respectively, showing a decrease of 1.9, 0.6, and 0.9 percentage points year-on-year [2][10]. Cloud Services and Subscription Growth - The cloud services revenue for the first half of 2024 was RMB 2.39 billion, marking a 17.2% increase year-on-year, and the annual recurring revenue (ARR) from cloud subscription services was approximately RMB 3.15 billion, up 24.2% year-on-year [2][10]. - Contractual liabilities related to cloud subscription services grew by 28.2% year-on-year [2][10]. Large Enterprise Business - The large enterprise segment saw revenues of RMB 546 million, a 38.9% increase year-on-year, with a net renewal rate of 97% and a subscription ARR growth of 29% [2][10]. - The medium enterprise business generated RMB 1.054 billion in revenue, up 14.3% year-on-year, with a customer count reaching 42,000 [2][10]. - The small and micro enterprise segment reported revenues of RMB 588 million, a 17.3% increase year-on-year, with a notable 70.8% growth in Kingdee Cloud·Xingchen revenue [2][10]. AI Platform Development - The company upgraded its Kingdee Cloud·Cangqiong to a new generation enterprise-level AI platform, launching the AI management assistant "Cosmic" [3][10]. - The AI applications have been validated in large enterprises, and the company is collaborating with major tech firms like Baidu and Microsoft to explore new intelligent applications [3][10].

Investment Rating - Outperform rating maintained [1] Core Views - Cloud subscription transformation is progressing steadily, with cloud service revenue reaching RMB 2.39 billion in H1 2024, up 17.2% YoY, accounting for 83.2% of total revenue [3] - Large enterprise business revenue and contract amounts continue to grow rapidly, with Kingdee Cloud·Cangqiong and Kingdee Cloud·Xinghan revenue reaching RMB 546 million in H1 2024, up 38.9% YoY [4] - The company upgraded its enterprise-level AI platform, launching the Cosmic AI management assistant, and deepened cooperation with major AI players like Baidu, Microsoft, AWS, and Tencent [4] Financial Performance - H1 2024 revenue reached RMB 2.87 billion, up 11.9% YoY, with net loss narrowing by 23.2% to RMB 218 million [3] - Cloud subscription annual recurring revenue (ARR) reached RMB 3.15 billion, up 24.2% YoY, with related contract liabilities up 28.2% [3] - Revenue from medium-sized enterprise business (Kingdee Cloud·Xingkong) reached RMB 1.054 billion, up 14.3% YoY, with 42,000 customers [4] - Small and micro enterprise business revenue reached RMB 588 million, up 17.3% YoY, with Kingdee Cloud·Xingchen revenue up 70.8% [4] Business Segments - Cloud service business revenue is expected to grow from RMB 4.505 billion in 2023 to RMB 7.848 billion in 2026, with a CAGR of 20.91% [7] - ERP and other business revenue is expected to decline slightly from RMB 1.174 billion in 2023 to RMB 1.089 billion in 2026 [7] - Total revenue is forecasted to grow from RMB 5.679 billion in 2023 to RMB 8.938 billion in 2026, with a CAGR of 17.58% [7] Valuation and Forecast - 2024-2026 revenue is projected at RMB 6.532 billion, RMB 7.602 billion, and RMB 8.938 billion, with YoY growth of 15.0%, 16.4%, and 17.6% respectively [4] - Net profit is expected to turn positive in 2025 at RMB 15 million, reaching RMB 168 million in 2026 [4] - The company is valued at 5-6x 2024 PS, with a fair value range of HKD 9.90-11.88 per share [4] Comparative Analysis - The company's 2024 PS ratio of 3x is lower than the industry average of 7x, indicating potential undervaluation [6] - Key competitors include Yonyou Network, Kingsoft Office, Glodon, and YiduTech, with average PS ratios of 7x for 2024 [6]

Investment Rating - The report maintains a "Buy" rating for Kingdee International (0268.HK) [1] Core Views - The company reported a revenue of 2.87 billion RMB for the first half of 2024, representing a year-on-year growth of 11.9%, while the net loss narrowed to 220 million RMB, a decrease of 23.2% compared to the previous year [2] - The cloud transformation is progressing steadily, with cloud revenue reaching 2.39 billion RMB, up 17.2% year-on-year, accounting for 83.2% of total revenue [2] - The company is expected to maintain a compound annual growth rate (CAGR) of 16.6% in revenue from 2024 to 2026, driven by its strong position in the ERP market and continuous cloud transformation [3] Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 2.87 billion RMB, with a year-on-year growth of 11.9% and a net loss of 220 million RMB, which is a significant improvement from a loss of 280 million RMB in H1 2023 [2] - The annual recurring revenue (ARR) reached 3.15 billion RMB, growing by 24.2% year-on-year, with subscription contract liabilities increasing by 28.2% to 3.18 billion RMB [2] Market Position - Kingdee maintains a strong leadership position in the medium-sized enterprise market, with a revenue of 1.05 billion RMB from its "Starry Sky" product line, reflecting a year-on-year growth of 14.3% [2] - The company has signed contracts with 611 national and provincial specialized enterprises, further enhancing its market share [2] Product Development - The "Cang Qiong Xing Han" product line generated 550 million RMB in revenue, marking a year-on-year increase of 38.9%, with a renewal rate of 97% [2] - The launch of the AI management assistant "Cosmic" is expected to enhance the company's offerings in various fields, including finance and human resources [2] Future Outlook - The company is projected to achieve revenues of 6.55 billion RMB, 7.64 billion RMB, and 9.01 billion RMB for the years 2024, 2025, and 2026, respectively, with corresponding net profits of -70 million RMB, 190 million RMB, and 360 million RMB [14] - The report emphasizes the company's commitment to cloud transformation and building a robust ecosystem to support stable growth [15]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company demonstrated high resilience and quality in its operations, with a significant increase in ARR and cloud revenue [6][7] - The company reported a revenue of 2.87 billion RMB for H1 2024, a year-on-year increase of 11.9%, and a net loss of 218 million RMB, which is a reduction of 65.68 million RMB compared to the previous year [6] - The ARR revenue reached 3.15 billion RMB, reflecting a year-on-year growth of 24.2%, with expectations of a CAGR of over 30% from 2024 to 2026 [6] Summary by Sections Market Data - Closing price (HKD): 5.84 - H-share market capitalization: 20.941 billion HKD - 52-week high/low (HKD): 13.02/5.45 - Exchange rate (RMB/HKD): 1.0911 [2] Financial Performance - H1 2024 revenue: 2.87 billion RMB, up 11.9% YoY - H1 2024 net loss: 218 million RMB, down 65.68 million RMB YoY - H1 2024 cloud revenue: 2.389 billion RMB, up 17.2% YoY, accounting for over 80% of total revenue [6] Customer Growth - Significant growth in large customer contracts, with cloud service revenue from major clients reaching 550 million RMB, up 38.9% YoY [6] - The number of small and medium-sized clients has also increased, with revenue from this segment reaching 1.05 billion RMB, up 14.3% YoY [6] Future Projections - Expected revenues for 2024-2026 are 6.745 billion RMB, 8.095 billion RMB, and 9.805 billion RMB respectively, with net profits projected at 10 million RMB, 205 million RMB, and 432 million RMB [7][10]

Investment Rating - The report assigns a "Buy - A" investment rating to the company with a 6-month target price of HKD 8.37, representing a dynamic price-to-sales ratio of 5 times for 2024 [5][8]. Core Insights - The company continues to push forward with its cloud subscription model, achieving a revenue of RMB 2.87 billion in the first half of 2024, marking an 11.9% year-on-year increase, while the loss attributable to equity holders narrowed by 23.2% to approximately RMB 218 million [2][3]. - The cloud service business generated RMB 2.389 billion in revenue, a growth of 17.2% year-on-year, accounting for about 83.2% of total revenue [3]. - The annual recurring revenue (ARR) from cloud subscription services reached approximately RMB 3.15 billion, reflecting a year-on-year increase of 24.2% [3]. - The company is focusing on high-quality operations in the large enterprise market, with significant growth in cloud service revenue from large enterprises and a strong net dollar retention rate of 97% [3][4]. Summary by Sections Financial Performance - The company reported a revenue of RMB 2.87 billion for the first half of 2024, with a gross margin of approximately 63.2%, up 1.3 percentage points year-on-year [2][3]. - The operating profit margin for the medium-sized enterprise segment reached 20%, with a customer base of 42,000 [3]. - The projected revenues for 2024, 2025, and 2026 are RMB 6.527 billion, RMB 7.570 billion, and RMB 8.838 billion, respectively, with net profits expected to turn positive by 2026 [8][11]. Business Segments - The large enterprise segment, including products like Kingdee Cloud Cangqiong and Kingdee Cloud Xinghan, recorded a revenue of approximately RMB 546 million, growing 38.9% year-on-year [3]. - The medium-sized enterprise segment, represented by Kingdee Cloud Xingkong, achieved a revenue of approximately RMB 1.054 billion, with a year-on-year growth of 14.3% [3]. - The small and micro enterprise segment, through Kingdee Cloud Xincheng, saw a revenue increase of 17.3% year-on-year, with a notable 70.8% growth in Kingdee Cloud Jingdouyun [3]. Market Position and Strategy - The company is recognized as a leading player in the domestic ERP industry, focusing on subscription transformation to drive future growth [8]. - The introduction of AI capabilities through the Kingdee Cloud Cangqiong platform aims to enhance enterprise management and support Chinese companies in their global expansion efforts [4][8].