Kingdee International (00268)'s revenue in the first half of the year increased 11.24% year-on-year to a strong leader in the cloud business of 3.192 billion yuan

According to the Zhitong Finance App, Kingdee International (00268) announced interim results for the six months ended June 30, 2025. The group obtained revenue of RMB 3.192 billion (same unit), up 11.24% year on year; gross profit of RMB 2,095 billion, up 15.43% year on year; the company's equity holders should have accounted for a loss of 97.738 million yuan, a decrease of 55.14% year on year; basic loss of 2.78 points per share.

According to the announcement, the reduction in losses was mainly due to the large-scale effect of the cloud subscription business and efficiency improvements brought about by AI.

During the reporting period, Kingdee continued to promote the “subscription first” strategy, continuously optimizing product performance and service quality based on the application scenarios and functional requirements of industry customers. The Group's cloud subscription revenue increased from about RMB 1,380 billion in the same period in 2024 to about RMB 1,684 billion, an increase of about 22.1% over the previous year, accounting for about 52.8% of the group's revenue. The annual recurring revenue (ARR) for cloud subscriptions was approximately RMB 3.73 billion, up 18.5% year over year. The balance of contract liabilities for the cloud subscription business was approximately $3.378 billion, an increase of about 24.7% over the previous year.

Led by “AI First”, Kingdee continues to deeply integrate AI technology into all of Kingdee's SaaS products, services and operation processes, and uses AI to restructure enterprise management. During the reporting period, the AI contract amount exceeded RMB 150 million. Kingdee launched the Sky AI Agent Platform 2.0, as well as AI native agents such as Jinkey Financial Report, ChatBI (Inquire Intelligence), travel intelligence, recruitment agents, BOSS assistants, and quotation agents, to sign contracts with key customers such as Hisense Group, Tongwei Co., Ltd., China Jinmao, and CRRC Tangche to help enterprises explore the deep integration of AI and business. Among them, Hegang Group and Kingdee jointly built an “AI+ Management Innovation Center” to build an intelligent management platform to accelerate the transformation of the company's management system to an intelligent management model with real-time perception, intelligent decision-making, and accurate execution. Through the Kingdee Cloud and Starry Sky “BOSS Assistant+Index Platform” AI kit, Chuangsi Industry & Trade has built a new “data-driven and intelligent decision-making” amoeba management system. The system can accurately locate the root cause of business abnormalities, reduce the positioning time of certain processing process unit fluctuations from 2-3 days to real-time insight, and increase decision-making efficiency by 100%.

Kingdee has achieved intelligent support for the entire fiscal and taxation process around fiscal and taxation scenarios such as collection, bookkeeping, tax reporting, compliance, and analysis of small and micro enterprises. The number of active users of AI assistants has reached 170,000. Kingdee Cloud Star launched AI+ fiscal and taxation applications, which have helped thousands of small and micro enterprises improve overall bookkeeping efficiency by about 80%, invoicing efficiency by about 40%, and tax filing efficiency by about 60%. Kingdee Information Technology continues to build corporate credit AI capabilities, successfully embedded in multiple fintech scenarios, and successfully signed contracts with leading financial institutions such as China Construction Bank and Bank of Communications with its unique “Data+Scenario” solutions; it won the first prize in the Digital China Innovation Competition with the “Smart Finance Risk Control Model” that has been implemented. At the same time, Kingdee is strengthening 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 reasoning performance, and co-create application scenarios.

Kingdee actively promotes a global strategic layout and vigorously expands overseas markets such as Southeast Asia and the Middle East. During the period, Kingdee Cloud and Starry Sky signed contracts with 259 Chinese companies including Jingchen Semiconductor, Greenlink Technology, SKYWIN Energy, and PT WALSIN EVERISING, covering various industries such as modern services, equipment manufacturing, and electronic high-tech. Among them, Kingdee provided the local Singaporean enterprise SKYWIN with a digital platform for the bulk trade industry, helping it achieve full-link collaboration, intelligent monitoring and early warning of futures and spot transactions, as well as centralized management of global fund accounts.