17 March 2026 — Kingdee International Software Group Company Limited (“Kingdee International”, “Kingdee” or the “Group”; stock code: 268.HK) announced its audited consolidated annual results for the year ended 31 December 2025.
During the reporting period, the Group delivered growth in both revenue and profit, with operating quality continuing to improve and the results of its subscription transformation becoming increasingly evident.
Unless otherwise stated, all amounts are denominated in Renminbi (“RMB”).
Key Financial Highlights
- Total revenue reached approximately RMB7,006 million, representing a year-on-year increase of 12.0%
- Cloud services revenue amounted to approximately RMB5,782 million, accounting for 82.5% of total Group revenue.
- Among this, cloud subscription services revenue increased by 20.9% year-on-year to approximately RMB3,556 million.
- Profit attributable to owners of the Company was approximately RMB93 million
- While adjusted net profit reached approximately RMB232 million, marking a turnaround from loss to profit
- Net cash inflow from operating activities was approximately RMB1,097 million, up 17.6% year-on-year.
Strong Revenue Growth and Improved Profitability
In 2025, amid a complex and fast-changing market environment, Kingdee International continued to pursue high-quality development and delivered a set of results marked by both growth and resilience.
During the reporting period, the Group’s total revenue reached RMB7.006 billion, up 12.0% year-on-year. Cloud services revenue reached RMB5.782 billion, with its contribution to total revenue further increasing to 82.5%, demonstrating the continued consolidation of the Group’s cloud transformation achievements.
In terms of profitability, the Group recorded profit attributable to owners of the Company of RMB93 million and adjusted net profit of RMB232 million, both turning from loss to profit. At the same time, cash flow from operating activities continued to improve, with net inflow reaching RMB1.097 billion, up 17.6% year-on-year, reflecting further enhancement in the Group’s operating efficiency and cash generation capability.
As an important participant in China’s enterprise management cloud services market, Kingdee continues to receive recognition from authoritative institutions. According to IDC reports, Kingdee ranks No. 1 in China across multiple market segments, including enterprise application cloud, SaaS ERP, Financial Cloud, Treasury Cloud, EPM, Tax Cloud and PLM Cloud, and has maintained the No. 1 market share in China’s growth enterprise application software market for 21 consecutive years. Kingdee is also the only Chinese vendor included in Gartner’s Magic Quadrant for Cloud ERP for product-centric enterprises, and has been recognized as an exemplary performer in Gartner’s “Voice of the Customer”.
Subscription Transformation Continued to Deliver Results, with Renewal Rate Reaching a Three-Year High
In 2025, Kingdee’s subscription transformation further entered its harvest stage, with economies of scale continuing to emerge.
During the reporting period, Annual Recurring Revenue (ARR) from the Group’s subscription services was approximately RMB4.090 billion, representing a year-on-year increase of 19.2%. Subscription-related contract liabilities were approximately RMB3.773 billion, representing a year-on-year increase of 20.7%, providing stronger visibility for future revenue growth.
At the same time, the Group’s profitability quality improved steadily:
- Gross profit margin increased by 2.0% year-on-year to 67.1%
- Selling and marketing expense ratio decreased by 1.1% year-on-year
- R&D expense ratio decreased by 2.9% year-on-year
By business segment, Kingdee’s core product lines maintained solid growth momentum:
- Kingdee Cloud Cosmic and Kingdee Cloud Constellation together recorded revenue of RMB1.940 billion, representing a year-on-year increase of 28.0%, of which cloud subscription services revenue rose by 35.4% year-on-year to RMB528 million
- Kingdee Cloud Galaxy recorded cloud subscription services revenue of RMB1.521 billion, representing a year-on-year increase of 19.3%
- Products for small and micro enterprises recorded cloud subscription services revenue of RMB1.142 billion, representing a year-on-year increase of 22.7%
In terms of customer expansion, during the reporting period Kingdee signed a number of major central SOEs, Fortune Global 500 companies and industry-leading enterprises, including CHN Energy, CRRC Group, Ansteel Mining, China Life, Chery Holdings, Taikang Insurance, Messer China and 7-Eleven China. At the same time, the Group signed 1,461 national-level “Little Giant” enterprises, including MiniMax, Kunlun Core, Zhipu Huazhang, BrainCo and Rokid.
Customer retention and upsell performance also improved steadily. During the reporting period, net dollar retention rates (NDR) for each product line were approximately:
- Kingdee Cloud Cosmic and Kingdee Cloud Constellation: 110%, up 2 percentage points year-on-year
- Kingdee Cloud Galaxy: 97%, up 2 percentage points year-on-year
- Kingdee Cloud Stellar: 94%, up 1 percentage point year-on-year
AI First Strategy Accelerated Across the Board, with AI Contract Value Reaching RMB356 Million
During the reporting period, Kingdee continued to deepen its “AI First” strategy, comprehensively upgrading “Kingdee Cloud” to “Kingdee AI”, and its AI transformation entered an accelerated phase.
Leveraging years of accumulated industry-specific scenario understanding, enterprise-grade data assets and enterprise management capabilities, Kingdee is accelerating the development of an AI capability system for enterprise management scenarios, driving AI into the core processes of enterprise operations.
Kingdee AI has now built a full technology stack spanning from intent recognition to intelligent agent execution, launched China’s first enterprise-grade AI-native super portal, “Xiao K”, and released nearly 20 AI agents covering scenarios such as financial analysis, recruitment, contract review and ESG.
Among them, TikSight has already accumulated nearly 400,000 registered users and 35 enterprise customers.
During the reporting period, Kingdee AI achieved contract value of RMB356 million. Newly signed customers included Liuzhou Steel Group, Shenzhen Energy, Guangdong Energy, Fuzhou Port Group and Ningbo Water, continuing to help enterprises achieve cost reduction and efficiency improvement in scenarios such as ChatBI, intelligent document review and fraudulent trade identification.
In the small and micro enterprise market, Kingdee AI also delivered positive results:
- Bookkeeping efficiency improved by over 80%
- Invoicing efficiency improved by 40%
- Tax filing efficiency improved by 60%
- AI assistant users exceeded 200,000
In addition, Kingdee CreditTech focuses on the credit AI field. It has built an AI-native credit decision engine and launched core applications such as industrial chain mapping and tax invoice anti-fraud AI. During the reporting period, it successfully signed major financial institutions including China Construction Bank and Bank of Communications.
AI is also continuously reshaping Kingdee’s own R&D system. During the reporting period, approximately 41% of the Group’s newly added code was generated by AI, and in certain scenarios the proportion of AI-generated code reached as high as 100%. Overall R&D delivery cycles were shortened by 21%. At the same time, Kingdee continued to deepen cooperation with partners such as Volcano Engine, Alibaba Cloud and Huawei Cloud, integrating mainstream large model capabilities into the Kingdee AI product ecosystem.
Global Expansion Progressed Steadily, with 463 New Overseas Customers Added
In terms of globalization, Kingdee’s overseas business expansion accelerated significantly.
During the reporting period, the Group established localized service systems in Qatar, Vietnam, Thailand, Indonesia and Malaysia, and signed 463 new quality enterprise customers during the year, covering key industries such as equipment manufacturing, bulk trading and pharmaceuticals. Customers included Chin Hin Group Berhad, Amlogic, UGREEN and PT Merdeka Battery Materials.
In terms of representative projects, Kingdee built a unified data middle platform for China Aviation Oil (Singapore), supporting cross-regional digital business management; created a benchmark digital transformation project for the Southeast Asian construction industry for Chin Hin Group Berhad; helped NEOTEK Vietnam optimize local tax and customs integration; and won the bid for the Qatar Hejen Racing Committee project, further demonstrating its cross-regional and cross-scenario service capabilities.
At the same time, Kingdee continued to deepen cooperation with local partners such as Vietnam’s FPT Group and Qatar’s Malomatia, promoting the deep integration of AI capabilities with localized services and continuously expanding its global business footprint.
Robert Xu: Building a New AI-Driven Kingdee Over the Next Five Years
Mr. Xu Shaochun, Chairman of the Board and CEO of Kingdee International, said that enterprise software is entering an unprecedented era of opportunity, and as the intelligent agent ecosystem continues to mature, the value boundaries of enterprise management software will be redefined.
He noted that, over the past more than 30 years of serving more than 7.4 million enterprises and government organizations, Kingdee has accumulated deep industry insight, digital assets and trusted AI engineering capabilities, which will become a critical foundation for Kingdee to seize the opportunities of the AI era.
Looking ahead, Kingdee will firmly advance its AI transformation, continue building the most trustworthy AI platform for enterprise management, and create a brand-new AI growth curve over the next five years.
About Kingdee International
Kingdee International Software Group Company Limited was founded in 1993 and is listed on the Main Board of the Hong Kong Stock Exchange (stock code: 0268.HK), with its headquarters in Shenzhen, China.
As one of the world’s leading enterprise management cloud SaaS companies, Kingdee has always been committed to “Empower every enterprise to achieve phenomenal success”, with the vision of becoming “the most trustworthy AI platform for enterprise management.” Over the past 30-plus years, Kingdee has cumulatively provided products and services to more than 7.4 million enterprises and government organizations worldwide, continuously helping enterprises realize digital and intelligent transformation.