KINGDEE INT'L (00268) announced its mid-year results for 2026, with revenue increasing by 13.6% year-on-year and revenue from AI-native products growing by 189% year-on-year.

KINGDEE INT'L (00268) announced the unaudited consolidated results of the company and its subsidiaries (the "Group") for the six months ending June 30, 2026 (the "Reporting Period"; currency unit: unless otherwise stated, amounts are in RMB). During the Reporting Period, the Group recorded total revenue of approximately RMB 3.625 billion, representing a year-on-year increase of about 13.6%, primarily benefiting from the revenue from AI-native products, which grew year-on-year by approximately 189.0% to about RMB 296 million. Cloud service revenue was approximately RMB 3.116 billion, a year-on-year increase of about 16.6%, accounting for about 86.0% of the Group's revenue, of which subscription revenue was approximately RMB 2.028 billion, up about 20.4% year-on-year. Annual Recurring Revenue (ARR) from subscriptions grew approximately 18.3% year-on-year to around RMB 4.413 billion. Gross profit increased year-on-year by approximately 17.2% to about RMB 2.456 billion, with the gross profit margin rising by about 2.1 percentage points year-on-year to approximately 67.7%. Profit attributable to equity holders of the company for the period was approximately RMB 54 million, while the adjusted profit attributable to equity holders was around RMB 116 million. Net cash inflow from operating activities was about RMB 142 million. Pictured are Xu Shaochun (third from left), Chairman of the Board and CEO of the Group, Zhang Yong (second from right), President of the Group, Lin Bo (second from left), Executive Director and Chief Financial Officer, Liu Zhongwen (first from left), Vice President and General Manager of the R&D Center, and Wu Chao (first from right), General Manager of the Investor Relations Department. Kingdee continues to lead the market and has assisted 70 of the Fortune Global 500 companies, 381 of the China Top 500 companies, and 49% of national-level specialized and innovative enterprises in achieving digital transformation, gaining widespread recognition from authoritative agencies both domestically and internationally. Kingdee is the only Chinese company selected for Gartner's "Voice of the Customer for Product-Centric Enterprise Cloud ERP," ranking first globally in customer recommendation willingness, and is also the only Chinese vendor included in Gartner's "Magic Quadrant for PLM Software for Discrete Manufacturing." According to IDC, Kingdee ranks first in China for SaaS EA, SaaS ERM, finance, financial and accounting applications cloud, treasury management cloud, EPM, and tax-related vertical markets, and has maintained the top market share in the Chinese growing enterprise application software market for 22 consecutive years. In the AI domain, Kingdee is the highest-rated Chinese vendor in the IDC Asia-Pacific AI-Enabled ERP Marketscape. It ranks first in revenue and market share for AI-enhanced enterprise-level ERP public cloud (AI-SaaS) in China; Kingdee Lingji has been included in Gartner's "Innovation Insight: Enterprise Intelligent Agents." Thanks to its outstanding performance in sustainability, Kingdee has been included in S&P Global's "Sustainability Yearbook 2026" both globally and in China, and has entered the 2026 Dow Jones Best-in-Class Emerging Markets Index. AI-native product revenue grew by 189% as Lingji accelerates iteration. During the Reporting Period, Kingdee's AI-native products focused on the core needs of large and medium-sized enterprises in enterprise AI transformation, AI-native ERP, and global solutions, targeting eight major industry sectors including equipment manufacturing, electronic high-tech, life sciences, and food and beverage, achieving scaled growth in subscription signings. During this period, AI-native products (a combination of Lingji, Kingdee AI Suite, and Kingdee AI Suite) recorded revenue of approximately RMB 296 million, a year-on-year increase of about 189.0%, with subscription revenue of about RMB 146 million, a year-on-year increase of approximately 282.9%; the contract signing amount reached RMB 605 million, up 159.2% year-on-year, with new contracts signed with Boson Quantum, Shuanghui Group, Siasun Robot & Automation, Kunlunxin, and Mianbi Intelligent, among others. Since its launch on May 20, Lingji has signed contracts with 26 customers and launched over 40 intelligent agents covering common areas such as finance, supply chain, procurement, and manufacturing. During the period, Lingji established strategic cooperation for AI co-creation with prototype customers such as Hytera Communications Corporation, Moore Threads, Qiangbrain Technology, and Kunlunxin, jointly creating the "Lingji Organization" that integrates industry practices, and signed new contracts with clients including Sunshine Zero Carbon, Bawingtong, Guolin New Materials, Jinhe Boyuan, and Yazhen Group. Lingji is the enterprise intelligent agent operating system developed by Kingdee, positioned as the unified entry point for enterprise-level AI, transforming accumulated business data, management knowledge, organizational memory, and business rules into manageable and reusable enterprise-level contexts, supporting cross-module analysis and execution based on the integration of human, business, and financial data. Lingji agents have been deployed in scenarios such as finance and supply chains: the expense review agent can release 20%-30% of the workload for auditors; the bank-enterprise reconciliation agent automatically completes reconciliation and discrepancy adjustment 24/7; the procurement payment review agent reduces order matching processing time from hours to minutes; and the closing agent improves closing efficiency by 30%. On the application development side, Yike Group has based its device management system on Lingji Build, utilizing natural language to invoke multiple intelligent agents, improving development efficiency by over 65%, and shortening the delivery cycle from weeks to days. The share of AI+SaaS subscription revenue reached 60.3%, maintaining continuous quality improvement in operations. During the Reporting Period, AI+SaaS products (AI Xinghan, AI Xingkong, AI Xingchen, etc.) achieved revenue of approximately RMB 2.77 billion, a year-on-year increase of about 10.3%, with subscription revenue of approximately RMB 1.67 billion, a year-on-year increase of about 13.5%, accounting for approximately 60.3% of the total. For the AI+SaaS products aimed at large and medium-sized markets, the revenue reached approximately RMB 1.967 billion, a year-on-year increase of about 8.5%, with subscription revenue of about RMB 1.029 billion, up approximately 10.1% year-on-year. For small and micro markets, the AI+SaaS products generated approximately RMB 803 million in revenue, a year-on-year increase of around 15.3%, with subscription revenue of about RMB 642 million, up about 19.4% year-on-year. By enhancing product quality, delivery efficiency, and organizational operational efficiency, the Group's operational quality continues to improve, with revenue per capita growing by approximately 20.8% year-on-year, and the gross profit margin rising by about 2.1 percentage points to approximately 67.7%. Sales and promotion expenses and R&D costs as a percentage of revenue decreased year-on-year by approximately 2.9 percentage points and 2.0 percentage points, respectively. For large enterprises, the Group focuses on central state-owned enterprises, Fortune Global 500 companies, and industry leaders, promoting the upgrade of clients from standalone ERP to digital resource management platforms (DRP), integrating key business functions such as finance, procurement, production, sales, and human resources to provide operational analysis and decision support. During the Reporting Period, new contracts were signed with clients including China National Pharmaceutical Group, China Resources Vientiane, and DJI Innovations. For medium-sized enterprises, the Group aims at high-growth sectors like specialized and innovative, high-end manufacturing, semiconductors, new energy, and automotive parts, strengthening R&D, production, quality, multi-plant collaboration, and cost control, while standardizing industry modules to enhance delivery efficiency. New contracts were signed during the Reporting Period with clients including Zuoting Yuyuan, Dehua TB New Decoration Material, and Hanjin Machine Tool. For small and micro enterprises, Kingdee has accelerated the implementation of AI capabilities centered around essential scenarios like finance, invoicing, taxation, operational analysis, and supply chains. AI Xingchen has launched eight AI capabilities and introduced industry solutions, boosting customer delivery and launch efficiency by over 50%. Chinese companies going global alongside local businesses, initial formation of localized service networks. During the Reporting Period, Kingdee continued to advance its globalization strategy of "Chinese companies going global + native overseas clients," establishing local service networks in markets such as Malaysia, Thailand, Vietnam, Indonesia, Singapore, and Qatar, facilitating the localization adaptation of products in terms of multilingual, multi-currency, multi-national taxation, and transnational group management. The financial and tax compliance capabilities for six countries are now directly deliverable, and privacy compliance for the Singapore data center has been achieved. The international business signed approximately 140 corporate clients, including new contracts with Yongqing Group, the Hong Kong Treasury, CUCKOO International, and Hailong Singapore across government, finance, manufacturing, and energy sectors. Xu Shaochun, Chairman of the Board and CEO of Kingdee Group, stated that in the AI era, what enterprises need is not another tool, but a secure and trustworthy enterprise intelligent agent operating system that can support business decision-making. This is precisely why Lingji was created, and the market has responded with genuine enthusiasm to this judgment. The results of the first half of the year have already demonstrated that Kingdee's AI transformation is not just a slogan but a validated effective path. We will accelerate, not slow down, until we achieve our goal: to enable enterprises worldwide to truly enter the AI-native era and to recreate Kingdee with AI by 2030.