Core Viewpoint - Kingdee reported a revenue increase of 11.2% YoY in 1H25, with a net loss of RMB97.7 million, which is an improvement from the previous year's loss [1][5] Financial Performance - Revenue for 1H25 was RMB3.19 billion, aligning with forecasts and consensus [1] - Net loss attributable to ordinary shareholders was RMB97.7 million, improved from RMB217.9 million in 1H24 [1][5] - Cloud services revenue grew 11.9% YoY to RMB2.67 billion, accounting for 83.7% of total revenue [3] - Cloud subscription revenue reached RMB1.68 billion, up 22.1% YoY, making up 52.8% of total revenue [3] - Annual recurring revenue (ARR) for cloud subscription was RMB3.7 billion, an increase of 18.5% YoY [3] Strategic Focus Areas - Kingdee's three strategic focuses are subscription, AI, and globalization [5] - AI contract value exceeded RMB150 million in 1H25, with expectations for AI-related revenue to contribute over 30% of total revenue by 2030 [4][5] - Management anticipates international business revenue to contribute 5-10% of total revenue in the next 3-5 years [5] AI Development - Kingdee launched the Cosmic AI Agent Platform 2.0 and has an active user base of 170,000 enterprises for its AI Assistant [4] - AI-powered applications have improved bookkeeping efficiency by 80%, invoicing efficiency by 40%, and tax filing efficiency by 60% for SMEs [4] Future Guidance - Management maintains guidance for breakeven and over RMB1 billion in operating cash flow (OCF) generation for 2025 [5] - Target for OCF is over RMB3 billion by 2030 [5]