Core Viewpoint - The company reported a total revenue of 3.19 billion RMB for H1 2025, reflecting an 11.2% year-on-year growth, with cloud service revenue growing by 11.9% to 2.67 billion RMB [4] Group 1: Financial Performance - The company achieved a gross profit of 2.095 billion RMB, a 15.4% increase year-on-year, resulting in a gross margin of 65.6%, which is above the Bloomberg consensus estimate of 65.2% [4] - The net loss attributable to shareholders was approximately 97.74 million RMB, which was worse than the Bloomberg consensus estimate of a loss of 72.53 million RMB, primarily due to a 39% increase in management expenses [4] - The company had 11,043 employees as of H1 2025, down from 12,149 at the end of 2024 [4] Group 2: Subscription and Customer Growth - The company restructured its revenue segments to focus on cloud subscription revenue, which reached 1.684 billion RMB in H1 2025, a 22.1% year-on-year increase, accounting for 52.8% of total revenue [5] - The Annual Recurring Revenue (ARR) from cloud subscriptions grew by 18.5% to 3.73 billion RMB, with contract liabilities increasing by 24.7% to 3.38 billion RMB [5] - The company signed 304 new customers, including major firms like Geely Holding and Moutai Technology, contributing to a revenue of 845 million RMB from its flagship products [5] Group 3: AI Commercialization Progress - The company disclosed that the AI contract amount exceeded 150 million RMB in H1 2025, with the launch of several AI-native products [6] - Active users of the AI assistant for small and micro enterprises reached 170,000, significantly improving accounting efficiency by approximately 80% and invoicing efficiency by about 40% [6] - Key clients for AI solutions include Hisense Group and China CNR Corporation, indicating strong market interest and adoption [6]

21世纪经济报道记者骆轶琪 深圳报道 AI时代正在加速国内软件行业的能力演进。 8月11日晚间，金蝶国际（0268.HK）发布半年度财报显示，期内实现收入约31.92亿元人民币（下 同），同比增长约11.2%；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%。 8月12日举行的业绩交流会上，金蝶集团执行董事、首席财务官林波指出，相信今年公司将实现盈利， 粗略预估年末经营性现金流将超10亿元人民币。 他进一步分析，云订阅的主要成本来自于IaaS，但随着IT技术持续发展、计算能力提高等因素影响，预 计未来公司云订阅毛利率还有提升空间。 按照公司规模角度看，服务于大型企业的金蝶·云星瀚期内收入增速最高，达41.1%，当然也与该业务基 数表现有关，NDR（净金额留存率）为108%；服务于小微市场的金蝶·云星辰云订阅收入增速次之，达 23.8%，NDR为93%；服务于中型企业市场的金蝶·云星空云订阅收入增长19%，NDR为94%。 对于不同企业对于云订阅的需求变化，金蝶集团总裁章勇在现场指出，大型企业目前更为关注业务板块 整合及供应链透明化、全球业务运营支持；中型企业更强调快速部署、更低成本，以及 ...

Core Viewpoint - The AI era is accelerating the evolution of the domestic software industry, with Kingdee International reporting a revenue increase and narrowing losses, indicating a positive outlook for profitability driven by cloud subscription and AI efficiency improvements [2][3]. Financial Performance - Kingdee International achieved a revenue of approximately 3.192 billion RMB, a year-on-year increase of about 11.2% [2]. - The company reported a loss attributable to equity holders of approximately 98 million RMB, a year-on-year reduction of about 55.1% [2]. - Cloud subscription revenue reached approximately 1.684 billion RMB, growing by about 22.1% year-on-year [3]. - The gross margin improved by 2.4 percentage points to approximately 65.6%, primarily due to the increased proportion of cloud subscription revenue [3]. Business Model Evolution - Kingdee has transitioned to a subscription-based cloud service model, with annual recurring revenue (ARR) from cloud subscriptions growing by 18.5% to 3.73 billion RMB [3]. - The company aims to increase the proportion of cloud subscription business, delegating implementation tasks to third-party partners to enhance efficiency and flexibility [3]. - The gross margin for cloud subscriptions reached 96.2%, with expectations for further improvement as IT technology advances [3]. AI and Product Development - Kingdee launched several AI-native products, including the Cangqiong AI Agent platform 2.0, and is focusing on multi-agent collaboration for large enterprises [4][5]. - The company is addressing the high internal management requirements of large enterprises by offering customizable AI solutions [5]. - Kingdee emphasizes the importance of data security and reliable business data management in advancing AI applications [7]. Market Trends and Challenges - The year is recognized as the "Agent Year," with various vendors entering the market, but challenges such as renewal willingness and potential product homogenization are emerging [6]. - Kingdee is strategically selecting AI products based on high-frequency demand and collaboration with enterprises for co-creation [7]. - The company identifies data quality, technical talent shortages, and ecosystem development as key challenges in implementing AI solutions [8]. International Expansion - Kingdee is actively investing in overseas markets, particularly in Southeast Asia and the Middle East, with plans for product localization [9]. - The company has already released product packages for 14 countries and regions, with potential expansion into Africa, Europe, and Japan in the future [9].

Core Viewpoint - Kingdee International is optimistic about achieving profitability in 2025, driven by growth in cloud subscription services and AI efficiency improvements [1][2]. Financial Performance - In the first half of 2025, Kingdee recorded revenue of approximately 3.192 billion RMB, a year-on-year increase of about 11.2% [1]. - The company's gross margin improved by 2.4 percentage points to approximately 65.6% [1]. - The loss attributable to equity holders narrowed to approximately 98 million RMB [1]. - Cloud subscription revenue reached 1.684 billion RMB, a year-on-year increase of 22.1% [2]. - The gross margin for cloud subscription services was 96.2%, up 0.9 percentage points year-on-year [2]. Operational Strategy - The company aims to maintain or slightly reduce its current employee count of around 11,000 while optimizing personnel structure, particularly by increasing AI talent recruitment [3][4]. - Kingdee's management believes that the "AI + SaaS" model will be a core competitive advantage in the next decade, with expectations that AI revenue will account for 30% or more by 2030 [5]. Market Dynamics - Kingdee's cloud subscription business has shown growth across large, medium, and small enterprises, with significant year-on-year increases in revenue from large enterprises (41.1%), growth enterprises (19%), and small enterprises (23.8%) [7]. - The company sees substantial growth potential in the large enterprise market, with current cloud subscription revenue accounting for 52.8% of total SaaS revenue, with aspirations to increase this to 80%-90% [8]. AI Development - Kingdee has launched several AI-native products and platforms, with total AI contract signing amounts exceeding 150 million RMB in the first half of 2025 [5]. - The company acknowledges challenges in AI implementation, including data quality issues, a shortage of hybrid talent, and resistance to organizational change [7].

Core Viewpoint - Kingdee International is optimistic about achieving profitability in 2025, driven by growth in cloud subscription services and AI efficiency improvements [1][2]. Financial Performance - In the first half of 2025, Kingdee recorded revenue of approximately 3.192 billion RMB, a year-on-year increase of about 11.2% [1]. - The company's gross margin improved by 2.4 percentage points to approximately 65.6% [1]. - The loss attributable to equity holders narrowed to approximately 98 million RMB [1]. - Cloud subscription revenue reached 1.684 billion RMB, up 22.1% year-on-year, while "products, implementation, and others" revenue was 1.508 billion RMB, a slight increase of 1.2% [2]. Operational Efficiency - The average revenue per employee increased by 19.4% year-on-year due to personnel structure optimization [1]. - Sales and marketing expense ratio and R&D expense ratio decreased, while administrative expense ratio increased by 2.1 percentage points to 10.8% due to personnel optimization and severance payments [3]. AI and SaaS Strategy - Kingdee's CEO believes that the "golden decade" of "AI + SaaS" is underway, with expectations that AI revenue will account for 30% or more by 2030 [1][5]. - The company has launched several AI-native products and aims to enhance its AI capabilities to drive SaaS applications in enterprises [5][6]. - The AI contract signing amount has exceeded 150 million RMB, indicating strong market interest [6]. Market Segmentation - Kingdee's cloud subscription business saw revenue growth across large, medium, and small enterprises, with large enterprises contributing approximately 276 million RMB, a year-on-year increase of about 41.1% [7]. - The company aims to increase the proportion of cloud subscription revenue, currently at 52.8%, to 80%-90% in the future, indicating significant growth potential in the large enterprise market [7].

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]

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]

Core Viewpoint - The SaaS industry is experiencing a mixed situation in the AI era, with improvements in financial performance but a lack of interest from the capital market [2][4][8]. Group 1: Financial Performance - SaaS companies listed in Hong Kong have shown significant improvement in their financial results for the first half of 2025, with more companies moving closer to profitability [2][4]. - Kingdee International reported revenue of 3.1925 billion RMB, a year-on-year increase of 11.2%, while its net loss narrowed by 55.1% to 97.738 million RMB [4][5]. - Youzan achieved a revenue increase of 4% to 714 million RMB and successfully turned a profit with a net profit of 71.742 million RMB [4][5]. - Both Maifushi and Mingyuan Cloud also reported turning losses into profits, with net profits ranging from 31.8 million to 41 million RMB and 12.09 million to 15.41 million RMB, respectively [5][6]. Group 2: Market Reaction - Despite the improved financial performance, the capital market reacted negatively, with the SaaS concept index in Hong Kong dropping by 1.61% on August 12, 2025 [2][3]. - Concerns about the sustainability of profitability and insufficient revenue growth have led to skepticism among investors [8]. Group 3: Challenges and Opportunities - The SaaS industry faces challenges such as increased competition from major players like Alibaba Cloud and Tencent Cloud, as well as a slow economic recovery affecting IT budgets [8][9]. - AI technology presents both opportunities and challenges for SaaS companies, enhancing product competitiveness and operational efficiency while also requiring significant investment [9][12]. - Kingdee International aims to become a leading enterprise management AI platform, integrating AI into all its SaaS products, which has already shown positive results in contract amounts and user engagement [10][12]. Group 4: Long-term Viability - For sustainable profitability, SaaS companies need to focus on scaling, cost control, and customer retention rather than merely cutting costs [8][12]. - The integration of AI into SaaS services is still in its early stages, and companies must explore deeper customer needs to fully leverage AI's potential [12][13].