KINGDEE INT'L (00268) announced its 2025 financial results, revealing a significant turnaround to profitability. The company reported revenue of approximately RMB 7.006 billion, representing a year-on-year increase of about 12.0%. Profit attributable to equity shareholders was approximately RMB 92.914 million, a notable improvement from a loss in the previous year. Basic earnings per share were approximately RMB 0.0264. Net cash inflow from operating activities was strong at about RMB 1.097 billion.

The period marked a successful transition to a subscription-based model, with scaling effects becoming increasingly evident. Revenue from cloud services reached approximately RMB 5.782 billion, accounting for about 82.5% of the group's total revenue. Within this, subscription service revenue was approximately RMB 3.556 billion, a robust increase of about 20.9% year-on-year. Annual Recurring Revenue (ARR) for subscription services reached approximately RMB 4.09 billion, up 19.2%. Contract liabilities related to subscriptions grew about 20.7% to approximately RMB 3.773 billion, providing strong visibility for future revenue. The gross profit margin improved by about 2.0 percentage points to 67.1%, while the sales expense ratio and R&D expense ratio decreased by 1.1 and 2.9 percentage points, respectively, compared to the same period last year.

In the large enterprise market, KINGDEE INT'L focused on core needs such as globalized operations, group-wide control, full-process efficiency improvements, and two-tier ERP systems, empowering businesses to navigate complex operational scenarios effectively. The company actively responded to state-owned asset supervision policies by launching an intelligent agent for穿透式监管 (penetrating supervision), pre-configuring state-owned asset supervision models. This utilizes AI technology to enable instant risk identification and penetrating management of "all levels, all processes, and all elements" of business operations. Furthermore, KINGDEE INT'L provided deeply integrated, AI-powered bespoke solutions targeting core challenges in sectors like advanced manufacturing, consumer goods, and steel/metallurgy. This approach led to contracts with leading clients and rapid progression to implementation and acceptance, establishing a virtuous cycle of "solution leadership - benchmark validation - industry replication" that significantly strengthened its leadership position in key vertical markets.

Revenue from KINGDEE Cloud •苍穹 (Cangqiong) and KINGDEE Cloud •星瀚 (Xinghan) grew 28.0% year-on-year to approximately RMB 1.94 billion. Subscription revenue for these products surged 35.4% to about RMB 528 million. The Net Dollar Retention Rate (NDR) improved by 2 percentage points to 110%. During the period, the company secured new contracts with major central state-owned enterprises, Fortune 500 companies, and leading private firms, including National Energy Group, CRRC Group, China Life Insurance, Ansteel Mining, Chery Holding, Taikang Insurance Group, Messer China, and 7-Eleven China.

In the mid-market segment, leveraging its integrated product advantages covering R&D, production, supply, sales, and service, along with business-finance integration, KINGDEE INT'L focused on eight key industries, including electronic high-tech, automotive components, and equipment manufacturing. It has become a preferred choice for China's most dynamic enterprises, achieving a 48% market share among national-level "Specialized, Refined, Unique, and Innovative" (专精特新) SMEs. KINGDEE Cloud •星空 (Xingkong) achieved subscription revenue of approximately RMB 1.521 billion, up 19.3% year-on-year. Its NDR increased by 2 percentage points to 97%, with the customer base reaching 49,000. The company added 1,461 new national and provincial-level "专精特新" enterprises, including leading high-tech companies such as Kunlun Xin, Xiyu Technology, Zhipu Huazhang, BrainCo, Lingban Technology, and Jingzhida.

KINGDEE INT'L solidified its leading market share position in the small and micro-enterprise (SME) segment, with subscription revenue growing about 22.7% year-on-year to approximately RMB 1.142 billion. The NDR for KINGDEE Cloud •星辰 (Xingchen) and KINGDEE Jingdouyun stood at 94% and 88%, respectively, with the former improving by 1 percentage point and the latter remaining stable. Their customer bases reached 98,000 and 406,000, respectively.

During the reporting period, the company continued to deepen its "AI-First" strategy, comprehensively upgrading "KINGDEE Cloud" to "KINGDEE AI" to accelerate its AI transformation. KINGDEE INT'L's deep understanding of industry scenarios and its long-accumulated enterprise-level data assets serve as fertile ground for AI development and form the basis for high-quality contextual engineering, enabling AI to truly understand the business language of each enterprise. Building on this core advantage, KINGDEE AI has established a complete technology stack from intent recognition to intelligent agent execution. It launched "Xiao K," China's first enterprise-grade AI-native super interface, and released nearly 20 independent AI-native agents covering scenarios such as financial analysis, recruitment, contract review, and ESG. One agent, Jinyue Financial Reports, has already attracted nearly 400,000 registered users and 35 enterprise clients. Contract value signed for KINGDEE AI during the period was approximately RMB 356 million, with new clients including Liuzhou Steel Group, Shenzhen Energy, Guangdong Energy, China Electric Equipment, Fuzhou Port Group, and Ningbo Water Group. These solutions help enterprises reduce costs and improve efficiency in areas like ChatBI, intelligent document review, and fraudulent trade screening. For the SME market, KINGDEE AI has enabled an over 80% improvement in bookkeeping efficiency, a 40% increase in invoicing efficiency, and a 60% boost in tax filing efficiency, with its AI assistant users exceeding 200,000.

In the AI for credit domain, KINGDEE Fintech has built an AI-native credit decision engine and launched core applications like industrial chain mapping and AI for tax invoice anti-fraud. It successfully signed contracts with major banks such as China Construction Bank and Bank of Communications during the period.

The company announced that it has fully embedded AI into its R&D system, creating a new paradigm of deep AI-engineer collaboration. Notably, 41% of new code generated during the period was AI-generated, reaching 100% in some specific scenarios, and the R&D delivery cycle was shortened by 21%. The group also deepened strategic collaborations with partners like Volcano Engine, Alibaba Cloud, and Huawei Cloud to integrate leading large language model capabilities into the KINGDEE AI product ecosystem.

Additionally, KINGDEE INT'L accelerated its global expansion. During the reporting period, it established local service networks in Qatar, Vietnam, Thailand, Indonesia, and Malaysia. The company successfully signed 463 quality enterprise clients, covering core industries such as modern services, equipment manufacturing, bulk commodities trade, and pharmaceuticals. These international clients include industry leaders like Malaysia's Revitalization Group, Allwinner Technology, Ugreen Group, SKYWIN Energy, PT Merdeka, and Momentum Industrial.