Group 1 - The strategic cooperation agreement between Lixin Accounting Firm and Kingdee Software focuses on creating a digital ecosystem for enterprises, emphasizing "digital-driven, ecological win-win" [1] - The partnership aims to integrate global resources and local technological advantages, targeting areas such as "intelligent audit innovation," "digital enterprise risk management," and "deep integration of financial and operational data" [1][2] - Lixin's President Yang Zhiguo highlighted that the collaboration combines Lixin's global service network with Kingdee's leading digital platform, providing a "deep customs guide" for international clients entering China and a "global navigation system" for Chinese enterprises going abroad [2] Group 2 - Lixin Accounting Firm is one of the most influential professional service institutions in China, with a service network covering major global economies, providing comprehensive support for multinational enterprises [2] - Kingdee International has over 30 years of experience in enterprise management digitalization, serving more than 7.4 million enterprises globally with its core products [2] - The partnership is positioned as a response to the current economic environment, leveraging digitalization as a core engine for high-quality development, as outlined in China's 14th Five-Year Plan [2][3] Group 3 - The collaboration aims to provide integrated support for enterprises' digital transformation needs across various sectors, including finance, supply chain, and intelligent manufacturing [3] - The partnership signifies a deep integration of Chinese professional services with international leading digital technologies, promoting collaborative innovation across the industry [3] - The cooperation is framed as a commitment to connecting China with the world through digitalization, helping enterprises seize opportunities and tackle challenges in the global landscape [3]

Core Viewpoint - Kingdee International (00268) saw a stock price increase of over 4%, reaching HKD 15.05, with a trading volume of HKD 230 million, following the announcement of its financial performance and new client acquisitions [1] Financial Performance - As of September 30, Kingdee's annual recurring revenue (ARR) from its cloud subscription services was approximately RMB 3.86 billion, representing a year-on-year growth of 18% [1] - The net renewal rates for various cloud products were as follows: Kingdee Cloud · Cang Qiong at 105%, Kingdee Cloud · Xing Kong at 95%, Kingdee Cloud · Xing Chen at 93%, and Kingdee Jing Dou Cloud at 88% [1] Client Acquisition - During the reporting period, Kingdee signed new contracts with several clients, including Chin Hin Group Berhad, BAIC Group, Yuchai Group, Xinjian Group, Huaxi Biological, and Qiangnao Technology [1] Strategic Partnerships - On August 13, the company signed an ERP project construction agreement with Chin Hin Group Berhad, leveraging its Xing Han and AI quotation agent products. This partnership signifies a strategic shift from merely following Chinese enterprises abroad to directly engaging with local companies, potentially setting a benchmark for regional replication [1]

Core Viewpoint - Kingdee International (00268) has seen a stock price increase of over 4%, currently trading at HKD 15.05, with a transaction volume of HKD 230 million [1] Financial Performance - As of September 30, Kingdee's annual recurring revenue (ARR) from its cloud subscription services reached approximately RMB 3.86 billion, representing a year-on-year growth of 18% [1] - The net renewal rates for various Kingdee cloud products are as follows: - Kingdee Cloud · Cang Qiong: 105% - Kingdee Cloud · Xing Han: 95% - Kingdee Cloud · Xing Kong: 93% - Kingdee Jing Dou Cloud: 88% [1] Client Acquisition - During the reporting period, Kingdee signed new clients including Chin Hin Group Berhad, BAIC Group, Yuchai Group, Xin Steel Union, Huaxi Biological, and Qiang Nao Technology [1] Strategic Partnerships - On August 13, the company signed an ERP project construction agreement with Chin Hin Group Berhad, leveraging its Xing Han and AI quotation agent products. This partnership signifies a shift from merely following Chinese enterprises abroad to directly engaging with local companies, potentially setting a benchmark for regional replication [1]

Core Insights - Kingdee International (00268) continues to deepen its core strategy of "AI-first, Subscription-first, Globalization" [1] - As of September 30, 2025, the annual recurring revenue (ARR) from Kingdee Cloud subscription services is approximately RMB 3.86 billion, representing a year-on-year growth of about 18% [1] - The net dollar retention rates (NDR) for Kingdee Cloud products are as follows: 105% for Cloud Cang Qiong & Xing Han, 95% for Cloud Xing Kong, 93% for Cloud Xing Chen, and 88% for Kingdee Jing Dou Cloud [1] - During the period, the company has signed contracts with notable enterprises such as Chin Hin Group Berhad, BAIC Group, Yuchai Group, New Steel Union, Huaxi Biology, and Qiang Nao Technology [1]

Core Viewpoint - Kingdee International (00268) is deepening its core strategy of "AI-first, Subscription-first, Globalization" with a projected annual recurring revenue (ARR) of approximately RMB 3.86 billion by September 30, 2025, representing a year-on-year growth of about 18% [1] Group 1: Financial Performance - The ARR for Kingdee's cloud subscription services is expected to reach approximately RMB 3.86 billion by September 30, 2025, with a year-on-year growth of around 18% [1] - The net dollar retention rates (NDR) for various Kingdee cloud products are as follows: Kingdee Cloud · Cang Qiong & Xing Han at 105%, Kingdee Cloud · Xing Kong at 95%, Kingdee Cloud · Xing Chen at 93%, and Kingdee Jing Dou Cloud at 88% [1] Group 2: Strategic Partnerships - During the reporting period, Kingdee has signed contracts with notable companies such as Chin Hin Group Berhad, BAIC Group, Yuchai Group, New Steel Union, Huaxi Biological, and Qiang Nao Technology [1]

Core Viewpoint - Kingdee International (00268.HK) is deepening its core strategy of "AI-first, Subscription-first, Globalization," with a projected annual recurring revenue (ARR) of approximately RMB 3.86 billion by September 30, 2025, representing a year-on-year growth of about 18% [1] Group 1 - The net dollar retention rates (NDR) for Kingdee Cloud's various services are as follows: 105% for Cloud Cang Qiong & Xing Han, 95% for Cloud Xing Kong, 93% for Cloud Xing Chen, and 88% for Kingdee Jing Dou Cloud [1] - The company has secured contracts with notable enterprises such as Chin Hin Group Berhad, BAIC Group, Yuchai Group, Xin Steel Union, Huaxi Biological, and Qiang Nao Technology during the period [1]

Core Viewpoint - Kingdee International Software Group has expanded its international presence by establishing Kingdee Qatar, marking a significant step in its strategy to penetrate the MENA market with AI and cloud-native technologies [2][3]. Group 1: Company Expansion and Strategy - The opening of Kingdee Qatar follows the establishment of its Singapore branch in 2024, indicating a strategic move to deepen its market presence in the Middle East and North Africa [2]. - The investment of approximately $200 million from Qatar Investment Authority (QIA) in December 2023 serves as a financial and strategic support for Kingdee's regional operations [3]. - Kingdee aims to combine localized operations with a global technology platform to set a benchmark for Chinese tech companies transitioning from "digital" to "intelligent" exports [2][3]. Group 2: Product and Technology Development - Kingdee's main products, including "Kingdee Cloud·Cangqiong," have been upgraded to enterprise-level AI platforms, emphasizing the integration of AI technology in financial management, supply chain collaboration, and global compliance [3][4]. - The company has developed localized content packages for the Qatar and Middle East markets, enhancing its rapid localization capabilities [4]. - Kingdee's AI tools, such as AI bookkeeping and supply chain data analysis, are designed to facilitate efficient decision-making in complex overseas business environments [3][4]. Group 3: Ecosystem and Globalization - Kingdee's approach to internationalization includes a comprehensive ecosystem empowerment model, supported by products, customers, and delivery mechanisms [6]. - The company has established over 200 strategic partnerships in Southeast Asia and the Middle East, enhancing its international compliance and data privacy capabilities [6]. - Kingdee has successfully served over 1,000 clients globally, with operations in 172 countries, showcasing its ability to implement digital operations internationally [6][7]. Group 4: Future Outlook and Challenges - The establishment of Kingdee Qatar reflects a shift in Chinese tech companies' internationalization strategies from transactional to systematic and intelligent models [7]. - The company's future success will depend on its ability to integrate AI innovations with regional demands, transitioning from scale expansion to deep empowerment in the global market [7].

Group 1: Data Industry Growth - The data industry in China has rapidly grown during the "14th Five-Year Plan" period, with data production expected to reach 41.06 zettabytes by 2024, more than doubling from the end of the "13th Five-Year Plan" [1] - The number of data enterprises in China has exceeded 400,000, and the data industry scale has reached 5.86 trillion yuan, representing a 117% increase from the end of the "13th Five-Year Plan" [1] Group 2: Unified Data Market Development - Significant progress has been made in building a unified data market during the "14th Five-Year Plan," focusing on institutional framework, infrastructure improvement, and industry application [2] - The central government has issued guidelines to establish a basic framework for data market construction, aiming to eliminate fragmented data management [2] Group 3: Data Infrastructure Enhancement - The National Development and Reform Commission has initiated a new round of data-centric digital infrastructure development, enhancing data circulation and computing power supply [3] - The "East Data West Computing" project has made breakthroughs, utilizing green energy resources in western regions to reduce computing costs [3] Group 4: Data Transaction Growth - By July 2025, over 50 data trading institutions are expected to be operational, with transaction volumes projected to exceed 300 billion yuan, marking a significant quality leap in data trading [4] Group 5: Data Productivity Activation - Companies like Shenzhen Buke Electric Co. have achieved substantial improvements in production efficiency and reduced manufacturing cycles through digital transformation initiatives [5] Group 6: Challenges in Data Market - The data market in China is still in its early stages, facing challenges in data rights confirmation, pricing, and circulation, which hinder the transformation of data from "resource" to "asset" [7] - Issues such as the lack of a national standard for data rights registration and significant differences in local regulations are prevalent [7] Group 7: Future Directions - Continuous efforts are needed in institutional innovation, technological breakthroughs, and ecosystem building during the "15th Five-Year Plan" [8] - Key areas for development include establishing data rights management, advancing privacy computing and blockchain technologies, and fostering specialized data service providers [8]

Core Viewpoint - The manufacturing industry in China is undergoing a significant transformation driven by artificial intelligence and digitalization, moving towards a "smart manufacturing era" to address challenges such as overcapacity and intensified price competition [2][3]. Group 1: Industry Transformation - The manufacturing sector is facing deep challenges characterized by "involution" competition, necessitating a shift towards technology-driven and ecologically coordinated solutions [1]. - By the end of 2024, over 10,000 smart factories are expected to be established, covering more than 80% of major manufacturing categories in China [2]. - China is projected to have the highest number of lighthouse factories globally by 2024, as reported by the World Economic Forum and McKinsey [2]. Group 2: Changes in Manufacturing Practices - The industry is experiencing nine major changes, requiring companies to embrace transformation in both operational and support systems to achieve high-quality growth [3]. - The shift from reverse engineering to forward R&D emphasizes understanding customer needs and defining products independently, enhancing sustainable innovation capabilities [4]. - The transition from static to dynamic planning in production allows for real-time adjustments to meet highly customized customer demands, improving planning efficiency by 50% and reducing lead times by 30% in some cases [5]. Group 3: Collaborative and Flexible Production - The move from large-scale production to flexible production enables companies to adapt to varying demands and optimize resources across the supply chain [7]. - Procurement is evolving from transactional to networked collaboration, enhancing efficiency across all supply chain stages [7]. - Companies are increasingly pursuing globalization, establishing overseas production lines and supply chains to navigate new challenges associated with global operations [7]. Group 4: Financial and Organizational Changes - The role of finance is shifting from traditional accounting to becoming a business partner, providing detailed operational insights to various business units [8]. - Organizational structures are transitioning from hierarchical models to entrepreneurial partner models, fostering collaboration and innovation [8]. - The integration of AI in management processes is transforming manufacturing capabilities, enabling a unified approach to operations and financial management [8]. Group 5: Technological Integration and Future Outlook - The implementation of cloud-based solutions is facilitating rapid R&D iterations and dynamic supply chain collaboration, enhancing overall operational efficiency [9]. - The ongoing digital transformation in manufacturing is not merely a replacement of traditional methods but represents a new paradigm in production possibilities [9].

Summary of Kingdee International Conference Call Company Overview - Kingdee International is transitioning from traditional financial software to cloud services, integrating the cloud computing industry chain to provide comprehensive enterprise management software services, leading the enterprise management SaaS market [2][3][4] Key Financial Metrics - In the first half of 2025, Kingdee's revenue from cloud services reached 850 million RMB, with subscription revenue accounting for approximately 33% [2][10] - Total revenue for 2024 is projected to exceed 6 billion RMB, with traditional ERP products contributing 1.1 billion RMB (18%) and cloud services contributing 82% [2][11] - Subscription revenue for the first half of 2025 is expected to be 1.68 billion RMB, representing 53% of total revenue [2][11] - The company anticipates achieving breakeven in 2025, with operating cash flow expected to exceed 1 billion RMB [4][21] Product Lines and Market Segmentation - Kingdee offers various ERP products tailored to different enterprise sizes: - Large enterprises: Kingdee Cloud · Cang Qiong and Kingdee Cloud · Xing Han, accounting for nearly 30% of cloud service revenue [2][10] - Medium enterprises: Kingdee Cloud · Xing Kong, which constitutes over 40% of cloud service revenue, with a subscription revenue growth of 19% and a renewal rate of 94% [2][12] - Small and micro enterprises: Kingdee Cloud · Xing Chen and Kingdee Cloud · Jin Dou, representing approximately 25%-30% of business, with renewal rates of 93% and 88% respectively [12] AI Integration and Innovations - Kingdee is actively embracing AI, launching Agent Platform 2.0 and several AI products, achieving an AI contract amount of 150 million RMB, indicating significant potential in the enterprise service sector [2][14][21] - The integration of AI with ERP systems is expected to enhance decision-making efficiency and optimize resource allocation [6][16] Market Trends and Growth Opportunities - The global ERP market is estimated to be between 60 to 80 billion USD, with the Chinese market ranging from 60 to 100 billion RMB, both growing at over 10% annually [2][18] - The shift of large state-owned enterprises from foreign ERP systems to domestic solutions like Kingdee is expected to drive demand [19] - The increasing need for digital transformation across various industries, including retail, e-commerce, and finance, presents a broad market opportunity for Kingdee [6][7] Competitive Position and Valuation - Kingdee maintains a leading market share and is well-positioned to capitalize on the transition to cloud and AI technologies [5][24] - The company's current valuation is approximately 7 times PS, with potential for improvement compared to US SaaS companies, which average around 10 times PS [4][24] - Future valuation growth will depend on achieving breakeven, business upgrades, increased AI contributions, and overseas expansion [24][25] Conclusion - Kingdee International is poised for significant growth driven by its cloud service transition, AI integration, and expanding market opportunities, particularly in the context of increasing domestic demand and global expansion efforts [22][23]