Company Overview - Kingdee International, founded in 1993 in Shenzhen, is a leading global provider of enterprise management cloud SaaS services, leveraging technologies such as cloud computing, big data, and AI to create digital solutions covering the entire lifecycle of enterprises, serving over 7.4 million businesses and government organizations globally across more than 20 industries [1][23] - The company ranks first in the Chinese market for SaaS EA, SaaS ERM, financial cloud, EPM, and PLM, and is the only enterprise management vendor in the top 10 of the generative AI model market in China, maintaining a leading market share in the growth enterprise application software sector for 20 consecutive years [1][23] Company Development Stages - The company's development has gone through four stages: 1. Financial software period (1993-2001): Established with the launch of Kingdee financial software in 1995 and the first internet-based ERP system in 1999 [2][24] 2. ERP period (2001-2011): Introduced BPM-based strategic management solutions and launched the EAS software for large enterprises [2][24] 3. Cloud service transformation period (2011-2023): Released Kingdee K/3 Cloud in 2012, marking a shift from traditional ERP models [2][24] 4. AI era (2023-present): Launched Cangqiong GPT in 2023 and plans to fully transform into an enterprise management AI company by 2025 [2][24] Shareholding Structure - The founder, Xu Shaochun, holds a total of 19.81% of the shares, making him the largest shareholder. The management team has extensive industry experience, with most members having over five years of tenure in the company [4][26] Main Business - Kingdee's main business includes enterprise-level cloud services and digital management solutions, forming a diverse product matrix that includes a cloud-native PaaS platform and layered SaaS management clouds [5][27] - The company’s flagship products include the Kingdee Cloud Cangqiong AI platform and SaaS management clouds such as Xinghan, Xingkong, and Xingchen, catering to different enterprise needs [5][27] Financial Performance - The company has seen significant growth in cloud service revenue, which accounted for 83.74% of total revenue in the first half of 2025, with cloud service revenue reaching 2.673 billion yuan, a year-on-year increase of 11.9% [6][28] - Total revenue for the first half of 2025 was 3.192 billion yuan, a year-on-year increase of 11.24%, with a net profit of -98 million yuan, reflecting a 55.14% year-on-year improvement [7][29] Profitability and Cost Management - The company’s gross margin and net margin have shown recovery, with a gross margin of 65.63% and a net margin of -3.42% in the first half of 2025, indicating improvements in profitability [10][31] - The company has also seen a decrease in expense ratios, with sales, management, and R&D expense ratios at 39.59%, 10.84%, and 24.4% respectively [11][31] Cloud Transformation Impact - The shift to a SaaS subscription model has enhanced customer retention and revenue stability, with renewal rates for large, growing, and small enterprises reaching 108%, 95%, and 93% respectively [17][18] - The company’s annual recurring revenue (ARR) reached 3.73 billion yuan in the first half of 2025, a year-on-year increase of 18.5%, contributing to 54.83% of total revenue [17][18] Market Trends and Future Outlook - The transition from traditional ERP to cloud-native EBC (Enterprise Business Capability) is essential for AI deployment, with predictions indicating that AI will add approximately $13 trillion to the global economy by 2030 [15][36] - The adoption of cloud-native technologies is rapidly increasing, with a projected 89% global adoption rate by 2024, indicating a significant shift in enterprise software architecture [14][35]

证券研究报告 | 2025年12月04日 2025年12月06日 2025年12月08日 金蝶国际（00268.HK） 优于大市 企业 SaaS 服务领军者，AI 赋能重构管理软件 企业管理解决方案完善，积极推进 AI 落地。公司是全球领先的企业管理云 SaaS 服务商，构建了覆盖企业全生命周期的数字化解决方案，主要产品包括 企业级 AI 平台金蝶云苍穹，SaaS 管理云星瀚、星空、星辰。公司自 2011 年 开启云转型，2025H1 公司云服务收入占公司收入比重达 83.74%。随着订阅 模式的成熟，公司收入持续提升，2020-2024 年间 CAGR 达 16.84%，近年来 销售毛利率、净利率均有所回升。 云原生 EBC 重构管理软件，为 AI 落地的必要方案。公司与 Gartner 共同提 出企业数字化管理进入后 ERP 时代，开始向云原生 EBC 转型。EBC 把原本封 闭的功能模块重新拆分成可被 AI 调用的能力服务，成为企业 AI 落地必要的 接口层。公司为云原生 EBC 转型的先驱，客户粘性持续提升。 信创、更新需求推动软件换代，国产替代仍有较大空间。在 ERP 换代需求推 动下，央国企引领 ...

证券研究报告 | 2025年12月04日 2025年12月06日 2025年12月08日 金蝶国际（00268.HK） 优于大市 企业 SaaS 服务领军者，AI 赋能重构管理软件 企业管理解决方案完善，积极推进 AI 落地。公司是全球领先的企业管理云 SaaS 服务商，构建了覆盖企业全生命周期的数字化解决方案，主要产品包括 企业级 AI 平台金蝶云苍穹，SaaS 管理云星瀚、星空、星辰。公司自 2011 年 开启云转型，2025H1 公司云服务收入占公司收入比重达 83.74%。随着订阅 模式的成熟，公司收入持续提升，2020-2024 年间 CAGR 达 16.84%，近年来 销售毛利率、净利率均有所回升。 云原生 EBC 重构管理软件，为 AI 落地的必要方案。公司与 Gartner 共同提 出企业数字化管理进入后 ERP 时代，开始向云原生 EBC 转型。EBC 把原本封 闭的功能模块重新拆分成可被 AI 调用的能力服务，成为企业 AI 落地必要的 接口层。公司为云原生 EBC 转型的先驱，客户粘性持续提升。 信创、更新需求推动软件换代，国产替代仍有较大空间。在 ERP 换代需求推 动下，央国企引领 ...

Core Viewpoint - Kingdee International (0268.HK) reported a continued loss in the first half of 2025, with a loss of 97.738 million yuan, accumulating over 1.4 billion yuan in losses over the past five and a half years [1][2]. Financial Performance - In the first half of 2025, Kingdee International achieved revenue of 3.192 billion yuan, a year-on-year increase of 11.2%, while the loss attributable to equity holders narrowed by 55.1% compared to the previous year [2][3]. - Cumulative losses over five and a half years reached 1.477 billion yuan [2]. Cost Structure - Research and development expenses were controlled at 777 million yuan, down 3.8% year-on-year, while sales expenses rose to 1.264 billion yuan, an increase of 3.18%, marking a historical high for the period [3]. - Administrative expenses increased by 39% to 346 million yuan due to personnel restructuring and severance payments [3]. Strategic Focus - The company has accelerated its AI transformation, launching several AI-native products in the first half of 2025, including the Cloud AI Agent platform 2.0 and various intelligent assistants [3]. - AI contract amounts exceeded 150 million yuan, with expectations that AI revenue could account for 30% of total revenue by 2030 [3]. Business Segments - The cloud service business remains the largest revenue source, contributing over 80% of total revenue, with a revenue of 2.673 billion yuan in the first half of 2025, growing approximately 11.9% year-on-year [5]. - However, the growth rate of cloud service revenue has been declining, with previous growth rates of 35.5%, 21.5%, and 17.2% from 2022 to 2024 [5]. Market Performance - In the large enterprise market, Kingdee's cloud services performed well, generating approximately 845 million yuan, a year-on-year increase of 34.3% [6]. - The mid-sized market showed weaker performance, with customer growth stagnating and a decline in new contracts signed [6]. - The small enterprise segment also faced challenges, with renewal rates below industry standards despite customer growth [6]. International Expansion - Kingdee is actively expanding its overseas business, particularly in Southeast Asia and the Middle East, but revenue from international operations remains low at 41.61 million yuan, accounting for only 1.32% of total revenue [7]. - The company has faced challenges in penetrating the high-end enterprise market dominated by international giants like SAP and Oracle [7]. Shareholder Sentiment - Recent shareholder reductions indicate a lack of confidence in the company's ability to turn around its financial performance, with stock prices significantly down from historical highs [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 6.256 billion yuan for 2024, representing a year-on-year growth of 10.2%. The cloud business contributed 5.107 billion yuan, growing by 13.4% and accounting for 81.6% of total revenue. The annual recurring revenue (ARR) from cloud subscriptions reached 3.43 billion yuan, up 20% year-on-year, with contract liabilities increasing by 28.5%. The net loss attributable to shareholders for 2024 was 142 million yuan, an improvement from a loss of 270 million yuan in 2023 [4][5] Summary by Sections Financial Performance - For 2024, the company achieved a revenue of 6.256 billion yuan, with a year-on-year increase of 10.2%. The projected revenues for 2025, 2026, and 2027 are 7.040 billion yuan, 7.965 billion yuan, and 8.912 billion yuan, respectively, indicating growth rates of 12.5%, 13.1%, and 11.9% [10] - The net profit for 2024 was a loss of 142 million yuan, with forecasts of 96 million yuan, 237 million yuan, and 416 million yuan for 2025, 2026, and 2027, respectively, showing significant year-on-year growth of 167.9%, 145.8%, and 75.4% [10] Product Development - The company has fully empowered its products with AI, leading to a revenue of 1.304 billion yuan from its large client offerings, which grew by 32.9% year-on-year. The total contract value reached approximately 2.1 billion yuan, up 51.9% year-on-year [5] - The small and micro product segment also saw the implementation of AI features, generating 1.229 billion yuan in revenue, a year-on-year increase of 13.8%, with a net renewal rate of 93% [5] Future Outlook - The company expects revenues for the fiscal years 2025 to 2027 to be 7.040 billion yuan, 7.965 billion yuan, and 8.912 billion yuan, respectively, with net profits projected at 96 million yuan, 237 million yuan, and 416 million yuan [7][10] - The company maintains a "Buy" rating based on these projections, indicating confidence in its growth trajectory and profitability improvements [7]