KINGDEE INT'L (00268) achieved a turnaround from losses to profits in 2025, with significant results in subscription transformation. The acceleration of AI transformation and speeding up of global expansion.

KINGDEE INT'L (00268) announced its performance for 2025, with revenue of approximately 7.006 billion yuan, a year-on-year growth of about 12.0%. The net profit attributable to equity holders of the company is approximately 92.914 million yuan, turning losses into profits year-on-year; with a basic earnings per share of approximately 2.64 cents. The net cash flow generated from operating activities is approximately 1.097 billion yuan. During the period, Kingdee's subscription transformation was successful, with the continuous release of economies of scale: cloud service revenue was approximately 5.782 billion yuan, accounting for about 82.5% of the group's revenue, of which subscription services achieved revenue of approximately 3.556 billion yuan, a year-on-year growth of about 20.9%. Annual recurring revenue (ARR) from subscription services was approximately 4.09 billion yuan, a year-on-year growth of around 19.2%; subscription-related contract liabilities were about 3.773 billion yuan, a year-on-year growth of about 20.7%, providing sufficient visibility for future revenue. The gross profit margin increased by about 2.0 percentage points year-on-year to 67.1%, with sales expense ratio and research and development expense ratio decreasing by 1.1 percentage points and 2.9 percentage points respectively from the same period last year. Kingdee focuses on globalized operations, group-controlled management, full-process efficiency, and dual-layer ERP solutions in large markets to empower enterprises to effectively deal with complex business scenarios. Kingdee actively responds to the State-owned Assets Supervision and Administration Commission's deepening "AI+" special action and the deepening implementation of penetration supervision of state-owned assets by launching an intelligent penetration supervision body, presetting state-owned asset supervision models, and using AI technology to achieve real-time risk identification and penetration supervision of businesses at all levels, processes, and elements. Meanwhile, Kingdee provides AI-integrated solutions for core pain points in the high-end manufacturing, consumption, steel and metallurgy industries, signing contracts with top customers and quickly advancing to online acceptance, forming a virtuous cycle of "solution leadership - benchmark verification - industry replication," significantly strengthening its leading position in the industry market. During the period, revenue from Kingdee Cloud Cangqiong and Kingdee Cloud Xinghan increased by 28.0% year-on-year to approximately 1.94 billion yuan, with subscription revenue increasing by 35.4% year-on-year to approximately 528 million yuan; the net dollar retention rate increased by 2 percentage points to 110% year-on-year. During the period, new contracts were signed with large central state-owned enterprises, Fortune Global 500 companies, and leading private enterprises such as National Energy, CRRC Group, China Life Insurance, Ansteel Group, Chery Holding, Taikang Insurance, Messer China, and 7-Eleven China. With its integrated product advantages in research, production, supply, sales, and service, Kingdee has focused on eight advantageous industries including electronics, high-tech, automotive components, and equipment manufacturing in the medium-sized enterprise market, becoming the common choice for China's most dynamic group of enterprises, with a national market share of "specialization, sophistication, newness" reaching 48%. Revenue from Kingdee Cloud Xingkong reached approximately 1.521 billion yuan, a year-on-year increase of about 19.3%, with the net dollar retention rate increasing by 2 percentage points to 97% year-on-year, and the number of customers reaching 49,000, with 1,461 new contracts signed with national and provincial-level specialized and new enterprises, including Kunlunchip, Sparse Sky Technology, KNOWLEDGE ATLAS Huazhang, Qiangnao Technology, Lingban Technology, and Shenzhen SEICHI Technologies. In the small and micro-enterprise market, Kingdee has solidified its position as a leader in market share, achieving subscription revenue of approximately 1.142 billion yuan, a year-on-year growth of about 22.7%. The net dollar retention rates for Kingdee Cloud Xingchen and Kingdee Jingdouyun are 94% and 88% respectively, with an increase of 1 percentage point and remaining the same year-on-year, and the number of customers reaching 98,000 and 406,000 respectively. During the reporting period, Kingdee continued to deepen its "AI First" strategy, upgrading "Kingdee Cloud" to "Kingdee AI" across the board and accelerating the AI transformation. With a deep understanding of industry scenarios and years of accumulated enterprise-level data assets, Kingdee's AI not only serves as the soil for AI's growth but also as the foundation for constructing a high-quality contextual engineering, enabling AI to truly understand the business language of every enterprise. Based on this core advantage, Kingdee AI has built a complete technical stack from intent recognition to intelligent entity execution: launching China's first enterprise-level AI-native super portal "XiaoK," and introducing nearly 20 independent AI-native intelligent entities covering financial analysis, recruitment, contract review, ESG, among other scenarios, with nearly 400,000 registered users and 35 enterprise customers for KingDee Finance Report. During the reporting period, Kingdee AI signed contracts worth approximately 356 million yuan, assisting enterprises in reducing costs and improving efficiency in scenarios such as ChatBI, intelligent order review, and false trade screening with new contracts with top companies such as Liugang Group, Shenzhen Energy Group, Guangdong Energy, Zhongdian Electric, Fuzhou Port Group, Ningbo Water, among others. For the small and micro market, Kingdee AI achieved an accounting efficiency improvement of over 80%, an invoicing efficiency improvement of 40%, and a tax reporting efficiency improvement of 60%, with over 200,000 AI assistant users. In the field of credit AI, Kingdee Credit Technology has built an AI-native credit decision engine and launched core applications such as the industrial chain map and tax invoice anti-fraud AI. During the reporting period, successful contracts were signed with leading banks such as China Construction Bank Corporation and BANKCOMM. The announcement stated that the group has fully embedded AI into its research and development system, realizing a new development paradigm of deep collaboration between AI and engineers41% of new code generated by AI during the reporting period, with some scenarios having AI-generated code proportions as high as 100% and a 21% reduction in research and development delivery cycles. The group continues to deepen strategic cooperation with technology giants such as Volcano Engine, Alibaba Cloud, and Huawei Cloud, integrating mainstream large model capabilities into the Kingdee AI product system. Furthermore, Kingdee is accelerating its globalization layout, having built local service networks in Qatar, Vietnam, Thailand, Indonesia, Malaysia, among other places during the reporting period, with contracts signed with 463 high-quality enterprises covering core industries such as modern services, equipment manufacturing, bulk trading, pharmaceuticals, with customers including Malaysia's Revival Group, Crystal Technology Semiconductor, Ugreen Group Limited, SKYWIN Energy, PT Merdeka, Momentum Industrial, and other industry-leading companies.