Core Viewpoint - The company reported a revenue growth of 11.2% in H1 2025, with a significant increase in subscription ARR by 18.5%, indicating a solid growth trajectory in its cloud services business [1][2]. Financial Performance - In H1 2025, the company achieved a total revenue of 3.192 billion yuan, with cloud service revenue accounting for 2.673 billion yuan, representing 83.7% of total revenue and a year-on-year growth of 11.9% [1]. - The annual recurring revenue (ARR) from cloud subscription services reached 3.73 billion yuan, reflecting an 18.5% year-on-year increase [1]. - The net loss attributable to shareholders was 98 million yuan, a reduction of 55% compared to the previous year, with a net loss margin of 3.1%, down 4.5 percentage points year-on-year [2]. Profitability and Cost Management - The gross margin improved by 2.4 percentage points to 65.6%, while the gross margin for cloud subscription services increased by 0.9 percentage points to 96.2% [2]. - The total operating expense ratio decreased by 5 percentage points, with sales, management, and R&D expense ratios changing by -3.1, +2.1, and -3.8 percentage points respectively [2]. Business Segmentation - The revenue growth rates for different segments of cloud services were as follows: large enterprise cloud business (Kingdee Cloud · Xinghan) grew by 41.1% with a net retention rate of 108%; medium enterprise cloud business (Kingdee Cloud · Xingkong) grew by 19% with a retention rate of 94%; and small and micro enterprise cloud business (Kingdee Cloud · Xingchen) grew by 23.8% with a retention rate of 93% [1]. Future Outlook - Despite macroeconomic pressures, the company maintains a solid growth logic, with revised revenue forecasts for 2025-2027 at 7.123 billion, 8.138 billion, and 9.382 billion yuan respectively, reflecting a slight downward adjustment of 2%-3% [3]. - The adjusted net profit forecasts for 2025-2027 are 145 million, 400 million, and 633 million yuan, indicating an optimistic trend in profitability and cash flow improvement [3].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][31] Core Viewpoints - The company achieved a revenue of 3.192 billion yuan in H1 2025, representing an 11.2% year-on-year growth, driven primarily by cloud services [8][18] - The annual recurring revenue (ARR) from cloud subscriptions reached approximately 3.73 billion yuan, with an 18.5% year-on-year increase, indicating a stable growth trajectory despite macroeconomic pressures [9][31] - The company aims for AI revenue to account for 30% of total revenue by 2030, with a focus on integrating AI into its management software solutions [26][31] Summary by Sections Financial Performance - In H1 2025, the company reported a net loss of 98 million yuan, a significant reduction of 55% compared to the previous year, with a net loss margin of 3.1% [2][18] - Gross margin improved to 65.6%, with cloud subscription business gross margin reaching 96.2% [2][18] - Operating cash flow for H1 2025 was 18.22 million yuan, showing an 89% improvement year-on-year [9][36] Revenue Breakdown - Cloud service revenue accounted for 83.7% of total revenue, with a year-on-year growth of 11.9% [8][17] - Large enterprise cloud business revenue grew by 41.1%, while medium and small enterprises saw growth rates of 19% and 23.8%, respectively [17][18] Cost Management - The company reduced its total operating expenses by 5%, with specific reductions in sales and R&D expenses [2][19] - Employee count decreased by 9%, leading to a 19.4% increase in revenue per employee [19][36] Future Outlook - The company has adjusted its revenue forecasts for 2025-2027 to 7.123 billion, 8.138 billion, and 9.382 billion yuan, respectively, reflecting a slight downward revision [3][33] - Profitability is expected to improve, with net profit projections for 2025-2027 adjusted to 145 million, 400 million, and 633 million yuan, respectively [3][37]

Core Insights - The combination of AI and SaaS is becoming a key driver for the transformation of enterprise management models amid macroeconomic uncertainty and technological change [1] - Kingdee International reported resilient performance in the first half of 2025, with total revenue of 3.192 billion yuan, a year-on-year increase of 11.2%, and cloud subscription revenue growing by 22.1% to 1.684 billion yuan, surpassing 50% of total revenue for the first time [1][2] - The company disclosed that its AI contract signing amount has exceeded 150 million yuan and set a strategic goal for AI revenue to account for 30% of total revenue by 2030 [1][4] Financial Performance - Kingdee's cloud business has achieved a compound annual growth rate of 47.3% over the past decade, with cloud service revenue accounting for 83.7% of total revenue in the first half of 2025 [2] - The gross margin improved to 65.6%, with a 2.4 percentage point increase year-on-year, driven by the growth of high-margin cloud subscription revenue [2] - Operating cash flow showed significant improvement, narrowing to -18 million yuan from -166 million yuan in the same period last year, with management projecting positive cash flow exceeding 1 billion yuan for the full year 2025 [2] AI Commercialization - Kingdee's AI commercialization began to show results in the first half of 2025, with the launch of the Cangqiong AI Agent platform 2.0 and various native intelligent agents across different enterprise sizes [3][4] - The company reported a 34.3% year-on-year revenue growth in large enterprises, with cloud subscription revenue increasing by 41.1% and a net dollar retention rate (NDR) of 108% [3] - AI applications are being integrated into various business processes, enhancing productivity and decision-making efficiency across sectors [9] Competitive Advantages - Kingdee's core competitive advantages include deep industry know-how, data security, and reliable hosting, which are difficult for generic AI models to replicate [6][7] - The company has built a unique growth flywheel that leverages SaaS applications to accumulate vast amounts of business data, which in turn empowers AI training and enhances SaaS product value [7] International Expansion - Kingdee is pursuing a pragmatic internationalization strategy, initially following Chinese enterprises abroad and establishing localized teams in Southeast Asia and the Middle East [9] - The company has set up overseas offices in countries like Malaysia, Singapore, and Qatar, adapting products to 14 languages and various national regulations [9] - Collaborations with international financial institutions in smart treasury services and cross-border payments are expected to enhance competitive differentiation in overseas markets [9] Future Outlook - Kingdee aims for AI revenue to reach 30% of total revenue by 2030, with cloud subscription and AI revenue combined to account for 80%-90% of total revenue, and per capita revenue exceeding 1 million yuan [10][11]

Core Insights - The combination of AI and SaaS is reshaping enterprise management models amid macroeconomic uncertainty and technological change [1][2] - Kingdee International reported resilient performance in the first half of 2025, with total revenue of 3.192 billion yuan, a year-on-year increase of 11.2%, and cloud subscription revenue growing by 22.1% to 1.684 billion yuan, surpassing 50% of total revenue for the first time [1][4] - The company aims for AI revenue to account for 30% of total revenue by 2030, with AI contract signing amounts exceeding 150 million yuan [2][6] Financial Performance - Kingdee's gross margin improved to 65.6%, with losses narrowing by 55.1% year-on-year [1] - The company achieved a significant improvement in operating cash flow, with a cash flow of -18 million yuan in the first half of 2025, a substantial reduction from -166 million yuan in the same period last year [4] - The high-margin cloud subscription business, which grew by 22.1%, contributed to an overall gross margin increase of 2.4 percentage points [4] Market Segmentation - Large enterprise business showed strong performance, with revenue growth of 34.3% and cloud subscription revenue growth of 41.1%, achieving a net dollar retention rate (NDR) of 108% [5] - Medium-sized enterprises saw revenue growth of approximately 9.5%, with cloud subscription revenue growing by 19% and an NDR of 94% [5] - Small enterprises maintained a cloud subscription revenue growth of 23.8%, continuing to lead in market share [5] AI Integration and Product Development - Kingdee's AI applications are increasingly integrated into various business processes, enhancing productivity and decision-making efficiency [11] - The company has developed multiple AI products, such as the Cangqiong AI Agent platform 2.0, which have been implemented across different enterprise scenarios [4][6] - The AI-driven SaaS model is expected to enhance the value and depth of SaaS products, creating a positive feedback loop for further SaaS deployment [9] Strategic Goals and International Expansion - Kingdee's long-term goals include achieving 30% of total revenue from AI by 2030 and 80%-90% from combined cloud subscription and AI revenue [12][13] - The company is expanding internationally, establishing local teams and ecosystems in Southeast Asia and the Middle East, with plans to increase overseas revenue contribution to 5%-10% in the next three to five years [11][12]

近日，金蝶公布公司及其附属公司（「集团」）截至2025年6月30日止六个月（「报告期」）之未经审 核简明综合中期业绩。 报告期内，金蝶录得收入约人民币31.92亿元，同比增长约11.2%，其中，云服务收入约人民币26.73亿 元，同比增长约11.9%，云订阅收入约人民币16.84亿元，同比增长约22.1%；毛利率同比改善2.4个百分 点至约65.6%；公司权益持有人当期应占亏损约为人民币0.98亿元，同比缩窄约55.1%。金蝶云订阅服务 年经常性收入（ARR）约为人民币37.3亿元，同比增长约18.5%；云订阅服务相关的合同负债实现同比 增长约24.7%。 "我们相信今年一定是实现盈利的一年，今年的经营性现金流一定会在十亿以上。"金蝶集团执行董事、 首席财务官林波表示，该公司对长期的利润经营充满信心。 根据IDC最新发布的企业应用市场相关追踪报告，金蝶在中国市场的SaaS ERP、财务云、财务和会计应 用云、司库管理云、EPM、税务、PLM云等多个细分领域均位列第一，并已连续21年蝉联IDC中国成长 型企业应用软件市场占有率第一。与此同时，金蝶成为首家且唯一入选Gartner《离散制造业PLM软件 市场指南》 ...

Core Insights - Kingdee International reported a revenue of approximately 3.192 billion yuan for the first half of the year, representing a year-on-year growth of about 11.2% [1] - The company's cloud service revenue reached approximately 2.673 billion yuan, with a year-on-year increase of about 11.9%, while cloud subscription revenue was around 1.684 billion yuan, growing by approximately 22.1% [1] - The net loss attributable to equity holders narrowed significantly to approximately 98 million yuan [1] Group 1: Cloud Subscription Business - The cloud subscription business maintained industry leadership, signing 304 new clients including major enterprises such as Geely Holding, Mengniu Group, and Moutai Technology [1] - Key projects with clients like China Aviation Group and Dongfeng Motor were successfully launched, enhancing client management systems [1] - Kingdee Cloud products, including Kingdee Cloud Cangqiong and Kingdee Cloud Xinghan, generated approximately 845 million yuan in revenue, reflecting a year-on-year growth of about 34.3% [1] Group 2: Small and Micro Enterprises Market - Kingdee Cloud Xingkong led the growth in the small and micro enterprises market, with a customer base of 46,000, a year-on-year increase of approximately 9.5% [2] - The cloud subscription revenue from Kingdee Cloud Xingkong was about 740 million yuan, growing by approximately 19.0%, with a net dollar retention rate (NDR) of 94% [1][2] Group 3: AI Technology Integration - Kingdee International is integrating AI technology into all its SaaS products and services, with a focus on "AI first" [2] - The total contract value for AI-related services exceeded 150 million yuan during the reporting period [2] - New AI platforms and intelligent agents were launched, with significant contracts signed with clients such as Hisense Group and China CNR [2] Group 4: Future Strategy - The Chairman and CEO of Kingdee International emphasized that AI and SaaS are reshaping the industry landscape, providing unprecedented growth opportunities [3] - The company will continue to adhere to its core strategies of "AI first, subscription first, and globalization" to become a leading global enterprise management AI company [3]

Core Viewpoint - Kingdee International Software Group Limited reported a revenue of approximately RMB 3.192 billion for the first half of 2025, representing a year-on-year growth of about 11.2%, with cloud service revenue reaching approximately RMB 2.673 billion, up by 11.9% [1] Group 1: Financial Performance - The company disclosed its AI contract amount for the first time, exceeding RMB 150 million in the first half of 2025, emphasizing the integration of AI technology into all SaaS products and services [1] - Kingdee's cloud products, Kingdee Cloud·Cangqiong and Kingdee Cloud·Xinghan, generated a combined revenue of approximately RMB 845 million, reflecting a year-on-year growth of about 34.3% [2] - The net dollar retention rate (NDR) for these products was reported at 108% [2] Group 2: Market Expansion - Kingdee Cloud·Xingkong, targeting growth enterprises, achieved a cloud subscription revenue of approximately RMB 740 million, with a year-on-year growth of about 19% and an NDR of 94% [2] - The company is actively expanding its global strategy, with services now covering 172 countries and regions, supporting 14 languages, and assisting over 1,000 overseas clients in digital operations [3] Group 3: Future Outlook - The CFO of Kingdee expressed confidence in achieving profitability in 2025, with expected operating cash flow exceeding RMB 1 billion [3] - The company anticipates that AI revenue will account for 30% of total revenue by 2030, with ongoing investments in AI talent and product management [3]

Investment Rating - The report maintains a "Buy" rating for Kingdee International (0268.HK) [4] Core Insights - The company achieved total revenue of 3.19 billion RMB in 25H1, a year-on-year increase of 11.2%, with cloud service revenue growing by 11.9% to 2.67 billion RMB [1] - The gross profit reached 2.095 billion RMB, reflecting a 15.4% year-on-year growth, resulting in a gross margin of 65.6% [1] - The company reported a net loss attributable to shareholders of approximately 97.74 million RMB, which was higher than the Bloomberg consensus estimate of a loss of 72.53 million RMB [1] Revenue Breakdown - The company restructured its revenue segments to focus on cloud subscription revenue, which accounted for 52.8% of total revenue in 25H1, up from 48.1% in 24H1 [2] - Cloud subscription revenue reached 1.684 billion RMB, a 22.1% year-on-year increase, with an annual recurring revenue (ARR) growth of 18.5% to 3.73 billion RMB [2] - The company signed 304 new clients, including major enterprises like Geely Holding and Mengniu Group, contributing to a net dollar retention (NDR) of 108% for its Cangqiong & Xinghan business unit [2] AI Commercialization Progress - The company reported AI contract amounts exceeding 150 million RMB in 1H25, with the launch of several AI-native products [3] - Active users of the AI assistant for small and micro enterprises reached 170,000, significantly improving accounting and invoicing efficiencies [3] Profit Forecast and Valuation - The revenue forecast for 25-27 has been slightly revised down to 6.9 billion, 7.7 billion, and 8.5 billion RMB respectively, reflecting a minor adjustment due to macroeconomic impacts [4] - The net profit forecast for 25-27 has been upgraded to 160 million, 480 million, and 880 million RMB respectively, indicating a positive outlook for profitability [4] - The report emphasizes that Kingdee, as a leading domestic ERP provider, is expected to enhance its product capabilities with AI integration [4]

8月11日，金蝶国际（00268）公布公司及其附属公司截至2025年6月30日止六个月之未经审核简明综合 中期业绩。报告期内，集团持续推进"订阅优先"战略，集团录得收入约人民币31.92亿元，同比增长约 11.2%，其中，云服务收入约人民币26.73亿元，同比增长约11.9%，云订阅收入约人民币16.84亿元，同 比增长约22.1%；毛利率同比改善2.4个百分点至约65.6%；公司权益持有人当期应占亏损约为人民币 0.98亿元，同比缩窄约55.1%。金蝶云订阅服务年经常性收入（ARR）约为人民币37.3亿元，同比增长 约18.5%；云订阅服务相关的合同负债实现同比增长约24.7%。 作为全球领先的企业管理云SaaS公司，金蝶在多个领域获得行业专业机构的认可。根据IDC最新发布的 企业应用市场相关追踪报告，金蝶在中国市场的SaaS ERP、财务云、财务和会计应用云、司库管理 云、EPM、税务、PLM云等多个细分领域均位列第一，并已连续21年蝉联IDC中国成长型企业应用软件 市场占有率第一。与此同时，金蝶成为首家且唯一入选Gartner《离散制造业PLM软件市场指南》的中 国厂商；在Gartner发布的高生产力a ...

Core Insights - Kingdee International reported a revenue of approximately RMB 3.192 billion for the six months ending June 30, 2025, representing a year-on-year growth of about 11.2% [1] - The company continues to implement its "subscription-first" strategy, with cloud service revenue reaching approximately RMB 2.673 billion, up 11.9% year-on-year, and cloud subscription revenue of approximately RMB 1.684 billion, growing by 22.1% [1] - The gross profit margin improved by 2.4 percentage points to approximately 65.6%, while the loss attributable to equity holders narrowed by about 55.1% to approximately RMB 98 million [1] Financial Performance - Annual Recurring Revenue (ARR) from cloud subscription services reached approximately RMB 3.73 billion, marking an 18.5% increase year-on-year [1] - Contract liabilities related to cloud subscription services grew by approximately 24.7% year-on-year [1] Market Position and Recognition - Kingdee is recognized as a leading global enterprise management cloud SaaS company, ranking first in various segments of the SaaS ERP and financial cloud markets in China according to IDC [2] - The company has been awarded the highest honor in China's AI field, the "Wu Wenjun Artificial Intelligence Science and Technology Award" [2] Business Growth and Client Acquisition - The cloud subscription business achieved significant growth, with Kingdee Cloud·Cangqiong and Kingdee Cloud·Xinghan generating approximately RMB 845 million in revenue, a year-on-year increase of 34.3% [3] - During the reporting period, Kingdee signed 304 new clients, including major companies like Geely Holding and Mengniu Group [3] AI Integration and Innovation - Kingdee is integrating AI technology into all its SaaS products and services, with AI contract signing amounts exceeding RMB 150 million during the reporting period [5] - The company launched several AI-native intelligent agents, enhancing operational efficiency for clients [5] Global Expansion Strategy - Kingdee is actively pursuing a global strategy, expanding into Southeast Asia and the Middle East, signing contracts with 259 companies, including local enterprises [7] - The company is collaborating with international partners like Standard Chartered Bank and Deutsche Bank to enhance its global service offerings [7]