Goldman Sachs: BEISEN HOLDING (09669) AI ARR Drives Growth, AI Application Penetration Rate Accelerates.

Goldman Sachs released a research report stating that the Chief Financial Officer of BEISEN HOLDING (09669) attended the Asian Leaders Conference held by the bank in Hong Kong from August 31 to September 2. The two parties focused on discussing the ARR growth of AI products, AI-native features in human resources solutions, and competition with AI models and other software vendors. Goldman Sachs currently does not cover BEISEN HOLDING. The report pointed out that in the fiscal year 2026, the value of AI contracts for BEISEN HOLDING is expected to increase to approximately 87 million RMB, which is about ten times that of the fiscal year 2025, which was 8 million RMB. Management believes that AI capabilities and products are key growth drivers for client spending. The ARR of AI products reached 75 million RMB in May 2026, compared to 59 million RMB in March 2026 and 600,000 RMB in March 2025, with growth driven by an expansion in the number of clients and an increase in ARPU for clients using Beisen's AI solutions. As of August 2026, the number of clients has exceeded 2,000. Management maintains a positive outlook on the continued growth of AI products, noting that the current penetration rate among AI clients is only about 20%. Beisen is a leading local HR SaaS enterprise that offers a cloud-based integrated HCM (Human Capital Management) solution, covering core human resources, recruitment, performance, succession, and assessment modules, and is expanding AI human resources applications supported by third-party AI foundational models, including AI learning, AI interviews, and AI recruitment functionalities. Management stated that the company currently offers approximately 50 to 60 AI functionalities or products, charging for only more than 10 core AI functions that have higher added value. Several AI products are gaining more attention from corporate clients. Among these, AI interviews can help clients reduce interview investments and improve effectiveness, supporting an approximately 120% renewal rate; AI learning has achieved accelerated growth following the integration of Cool College; and AI mentor agents can provide customized intelligent solutions for employees in different departments, such as training for sales talent skills. In addition to continuously expanding AI functionalities, management is also optimistic about the data accumulated by the company in talent assessment, as well as the large customer base the company has built in the field of human resources products.