[August 11, 2025] Kingdee International Software Group Co., Ltd. (“Kingdee International,” “Kingdee,” or the “Company”; stock code: 268.HK) announced the audited condensed interim results of the Company and its subsidiaries (the “Group”) for the six months ended June 30, 2025 (the “Reporting Period”). During the Reporting Period, the Group continued to implement its “Subscription First” strategy, recording revenue of approximately RMB3.192 billion, an increase of approximately 11.2% year-on-year. Cloud service revenue amounted to approximately RMB2.673 billion, an increase of approximately 11.9% year-on-year, and cloud subscription revenue amounted to approximately RMB1.684 billion, an increase of approximately 22.1% year-on-year. Gross profit margin improved by 2.4 percentage points year-on-year to approximately 65.6%. The loss attributable to equity holders of the Company for the period was approximately RMB98 million, a decrease of approximately 55.1% year-on-year. Kingdee Cloud Subscription Service recurring annual revenue (ARR) was approximately RMB3.73 billion, an increase of approximately 18.5% year-on-year. Contract liabilities related to cloud subscription services increased by approximately 24.7% year-on-year.
As a leading global enterprise management cloud SaaS company, Kingdee has been recognized by industry professionals in multiple fields. According to IDC’s latest Enterprise Application Market Tracker, Kingdee ranks first in China’s SaaS ERP, Financial Cloud, Financial and Accounting Application Cloud, Treasury Management Cloud, EPM, Tax, and PLM Cloud segments. Kingdee has held the top spot in IDC’s China Growth Enterprise Application Software Market for 21 consecutive years. Kingdee is the first and only Chinese vendor to be included in Gartner’s “Market Guide for PLM Software in Discrete Manufacturing.” In Gartner’s High-Productivity aPaaS report, Kingdee ranked first in China and the only Asia-Pacific vendor to be recognized in the global top 10. Kingdee was also recognized in Gartner’s Gen AI Model China Top 10 and the only Chinese enterprise management software vendor to be included in Gartner’s AI Code Assistant report. Furthermore, Kingdee won first prize in the Wu Wenjun Artificial Intelligence Science and Technology Award, China’s highest award in the field of artificial intelligence, demonstrating its exceptional strength in AI technology innovation.
Cloud subscription business leads the industry and continues to grow with high quality
Kingdee Cloud Cangqiong and Kingdee Cloud Xinghan have achieved breakthroughs in meeting core requirements in the large enterprise market, including high-value domestic substitution, dual-tier ERP for group-sized enterprises, and penetrating oversight and treasury management for central SOEs. They have become the preferred choice for many large central SOEs and Fortune 500 companies. During the reporting period, they signed 304 new clients, including industry leaders such as Geely Holding, Mengniu Group, Moutai Technology Development, China Pharmaceutical Group, China Paper, Jianlibao, and Longxin Mining. Several key projects, including those with China Aviation Group, Dongfeng Motor, Yunnan Energy Investment, and Shanxi Coking Coal, were successfully launched, helping clients build world-class management systems. During the period, Kingdee Cloud Cangqiong and Kingdee Cloud Xinghan achieved combined revenue of approximately RMB845 million, a year-on-year increase of approximately 34.3%. Cloud subscription revenue amounted to approximately RMB276 million, a year-on-year increase of approximately 41.1%. The net renewal rate (NDR) was 108%.
Kingdee Cloud Starry Sky continues to lead the growth enterprise market, with 46,000 customers, a year-over-year increase of approximately 9.5%. The company has signed 518 new national and provincial-level specialized and innovative enterprises, including industry leaders such as Hytera, Laopu Gold, Unisplendour Qingteng, Jiushi Intelligence, Jingzhida, and Fourier Intelligent Technology. During the period, Kingdee Cloud Starry Sky achieved cloud subscription revenue of approximately RMB740 million, a year-over-year increase of approximately 19.0%, and a net renewal rate (NDR) of 94%.
Kingdee Cloud Star and Kingdee Jingdou Cloud maintained rapid growth, reaching 85,000 and 386,000 customers, respectively, representing year-over-year increases of 35.1% and 15.0%, further solidifying their leading position in the small and micro enterprise market. These small and micro enterprise products generated approximately RMB537 million in combined cloud subscription revenue, a 23.8% year-over-year increase. Net renewal rates (NDRs) for Kingdee Cloud Star and Kingdee Jingdou Cloud were 93% and 88%, respectively.
AI technology innovation leads the way, accelerating the implementation of intelligent scenarios
Kingdee, guided by an “AI-first” approach, continues to deeply integrate AI technology into all of its SaaS products, services, and operational processes, reshaping enterprise management with AI. During the reporting period, the total value of AI contracts signed exceeded RMB 150 million. Kingdee launched the Cangqiong AI Agent Platform 2.0, as well as native AI agents such as Golden Key Financial Report, ChatBI (Ask Numbers Agent), Travel Agent, Recruitment Agent, BOSS Assistant, and Quote Agent. Signing contracts with key clients such as Hisense Group, Tongwei Co., Ltd., China Jinmao, and CRRC Tangche, Kingdee is helping enterprises explore the deep integration of AI into their businesses.
Hesteel Group and Kingdee jointly established the “AI+ Management Innovation Center,” creating a smart management platform to accelerate the company’s transformation to a smart management model characterized by real-time perception, intelligent decision-making, and precise execution. Chuangsi Industry and Trade, leveraging Kingdee Cloud Starry Sky’s “BOSS Assistant + Indicator Platform” AI suite, has established a new “data-driven + intelligent decision-making” Amoeba management system. This system can accurately pinpoint the root causes of operational anomalies, reducing the time required to identify fluctuations in a specific processing unit from 2-3 man-days to instant insights, resulting in a 100% improvement in decision-making efficiency. Kingdee’s AI assistant for small and micro businesses has 170,000 active users. Kingdee Cloud Starry Sky has launched an AI+ finance and tax application, which has helped thousands of small and micro businesses improve their overall accounting efficiency by approximately 80%, invoicing efficiency by approximately 40%, and tax filing efficiency by approximately 60%.
At the same time, Kingdee strengthened its cooperation with strategic partners such as Volcano Engine, Alibaba Cloud, and Huawei Cloud in the field of AI to improve R&D efficiency and large-model inference performance, and jointly create application scenarios.
Accelerate global development and build an overseas ecological partner system
Kingdee is actively pursuing its globalization strategy, expanding into overseas markets such as Southeast Asia and the Middle East. During the period, Kingdee Cloud Starry Sky signed contracts with 259 Chinese companies, including Amlogic Semiconductor, UGREEN Technology, SKYWIN Energy, and PT WALSIN EVERISING, covering a wide range of industries, including modern services, equipment manufacturing, and electronics high-tech. Specifically, Kingdee provided a digital infrastructure for the bulk trading industry to SKYWIN, a local Singaporean company, enabling full-chain collaboration, intelligent monitoring and early warning for futures and spot trading, and centralized global treasury management. Kingdee has developed localized applications and language packages for countries and regions such as Singapore, Vietnam, and the Middle East. Furthermore, Kingdee is actively expanding its overseas ecosystem, bringing in international partners such as Standard Chartered Bank, HSBC, and Deutsche Bank. The partnerships include comprehensive and in-depth collaboration in smart treasury services, cross-border payments, and fintech innovation, supporting the global development of Chinese companies.
Xu Shaochun, Chairman and CEO of the Group, stated that AI + SaaS is reshaping the industry landscape, unlocking unprecedented possibilities for enterprise management and injecting tremendous growth momentum into Kingdee. Looking ahead, we will remain even more resolute and adhere to our core strategy of “AI First, Subscription First, and Globalization.” We will integrate AI technology and management expertise to empower every business and individual worldwide, enabling the global rise of the Chinese management model. Kingdee is poised to become a leading global enterprise management AI company by 2030.