Core Viewpoint - Beisen Holdings (09669.HK) has reported strong mid-term performance for the period ending September 30, 2025, with significant growth in revenue and annual recurring revenue (ARR), marking a turnaround in adjusted net profit for the first time [1][2] Financial Performance - The company expects to achieve revenue between RMB 503.1 million and RMB 526.3 million, representing a year-on-year growth of approximately 15.2% to 20.5% [1] - ARR is projected to be between RMB 946.7 million and RMB 975.4 million, with a year-on-year increase of about 20.8% to 24.4% [1] - Subscription revenue retention rate is anticipated to remain high at 104% to 106%, providing a solid foundation for long-term revenue growth [1] - Adjusted net profit is expected to be between RMB 13.8 million and RMB 23.6 million, a significant improvement from a net loss of RMB 34.2 million in the same period last year [1] Market Position and Outlook - Beisen Holdings is recognized as a leading integrated HCM SaaS provider in China, having maintained the highest market share for nine consecutive years [3] - The company has developed a unified open PaaS platform, iTalentX, which covers the entire employee lifecycle from recruitment to departure [3] - The ongoing commercialization of AI applications in human resources is expected to further enhance the company's market position and drive sustainable growth [3] - The shift towards digital transformation and the necessity of human resource management information systems are creating new growth opportunities for the HCM SaaS market [2]

Group 1 - The company is a leader in integrated HCM SaaS, with stable operating performance and a potential profitability inflection point under the SaaS model. The company is expected to experience new growth opportunities with successful mergers and AI product commercialization by 2025 [1] - The company has a high subscription revenue ratio, with steady revenue growth projected. For the fiscal year 2025, the company is expected to achieve revenue of 945 million yuan, a year-on-year increase of 10.6%, driven primarily by cloud HCM revenue of 722 million yuan, which is expected to grow by 14.2% [2] - The company has initiated AI product development in 2024, achieving successful commercialization verification by August of the same year. By the fiscal year 2025, the company has realized AI commercialization ARR exceeding 6 million yuan, indicating strong growth potential in AI applications [3] Group 2 - The company is expected to achieve revenue of 1.135 billion yuan, 1.335 billion yuan, and 1.563 billion yuan for the fiscal years 2026 to 2028, representing year-on-year growth of 20.1%, 17.6%, and 17.1% respectively. The net profit attributable to the parent company is projected to be -61 million yuan, 55 million yuan, and 200 million yuan for the same periods [1] - The company has established a unified open PaaS platform for cloud HCM solutions, covering the entire lifecycle of human resource management from recruitment to resignation, which is expected to enhance its competitive advantage and accelerate AI transformation [2] - The company is expected to achieve positive operating cash flow of approximately 77 million yuan in the fiscal year 2025, with significant improvement in adjusted net profit, indicating a potential profit inflection point in fiscal year 2026 [2]

Market Overview - The market size of China's human resources digitalization is expected to reach approximately 30.3 billion yuan in 2024, with a year-on-year growth of 13.2%. By 2027, the market size is projected to reach 48.4 billion yuan, with an average compound annual growth rate of 16.9% over the next three years [1][3]. Product Iteration - Leading integrated vendors are inclined to utilize PaaS platforms to build flexible development frameworks that support on-demand customization and rapid iteration [2][35]. - AI applications are expanding from recruitment and assessment to training scenarios, evolving from intelligent interaction to smart suggestions, and from industry models to proprietary enterprise models [2][45]. Current State of Human Resource Management - Most enterprises view their HR departments as the main drivers of transformation, shifting the focus towards maximizing human capital value [6][7]. Digital Transformation Planning - Currently, 97% of enterprises have begun digital transformation efforts, primarily initiated by HR departments. There is a gradual shift from bottom-up to top-down transformation approaches, indicating a strategic shift towards human capital management [7][9]. Focus Areas in Digitalization - The core focus of human resources digitalization is on top-level design and technological implementation, with an emphasis on process innovation and iteration [9][62]. Globalization of HR Systems - For companies expanding overseas, safety and compliance are critical, including personal information protection and adherence to local labor laws. The digitalization of HR should be phased, starting with team expansion and moving towards integrated global talent management [12][51]. Industry-Specific HR Needs - Retail: High turnover and seasonal fluctuations necessitate flexible scheduling and real-time training. The focus is on mobile, automated, and intelligent workforce management systems [18][20]. - Manufacturing: Emphasizes rapid onboarding and performance calculation for blue-collar workers, alongside the need for advanced training for R&D personnel [24][25]. - Internet: Requires agile, integrated talent systems supported by a mature digital infrastructure to facilitate rapid talent acquisition and development [28][29]. Competitive Strategies of HR Vendors - HR digitalization vendors are focusing on mid-sized enterprises, while integrated solutions target larger companies. Niche vendors leverage specific scenarios to gain market entry [38][65]. AI Integration in HR - The application of AI in HR is evolving from isolated implementations to comprehensive integration, focusing on automation and personalization to enhance efficiency and employee experience [62][65].

Group 1 - S&P Global's "Sustainable Development Yearbook (China Edition) 2025" recognized Beisen Holdings for its outstanding management and practices in sustainability, achieving a high score of 42 points in its first year of reporting [1] - Beisen Holdings is the only human resource management software company included in the yearbook, highlighting its proactive layout in low-carbon transformation and gaining international recognition for its efforts in sustainable development [1] - The S&P Global Corporate Sustainability Assessment (CSA) is one of the most influential ESG assessment systems globally, with only 164 out of 1662 Chinese companies making it into the annual yearbook [1] Group 2 - The company emphasizes long-termism and places high importance on its performance in environmental, social, and governance (ESG) management, integrating ESG principles into all operational and developmental aspects [1] - Beisen Holdings is the largest cloud-based Human Capital Management (HCM) solution provider in China, offering a unified and open PaaS infrastructure [3] - The iTalentX platform provides a comprehensive cloud-native SaaS product to help enterprises efficiently recruit, assess, manage, develop, and retain talent, leading the industry in intelligent and optimized human resource management [3] Group 3 - The company continuously innovates product development with a focus on "designing for employees," leveraging advanced technologies like AI to support resilient talent management systems and diverse talent cultures [2] - Beisen Holdings aims to help clients achieve a win-win situation between commercial and social value, empowering their sustainable development capabilities [2]