Kingdee International Software Group Company (268) H2 2025 earnings summary

Executive summary

• Achieved 12.0% year-over-year revenue growth to RMB7,006 million, driven by strong cloud subscription and AI-driven efficiency gains.

• Subscription ARR surpassed RMB4 billion, maintaining leadership in China's SaaS industry.

• Net profit attributable to equity owners turned positive at RMB93 million, compared to a loss of RMB142 million in 2024; adjusted net profit (Non-IFRS) reached RMB232 million.

• Operating cash flow hit a historic high of RMB1,097 million, up 17.6% year-over-year.

• No final dividend was declared for 2025.

Financial highlights

• Group revenues grew 12.0% year-over-year to RMB7,006 million.

• Subscription revenues increased 20.9% to RMB3,556 million.

• Gross profit rose 15.6% to RMB4,704 million, with gross margin improving to 67.1%.

• Contract liabilities CAGR (2020-2025) reached 28.0%, with group net cash around RMB5 billion.

• Basic EPS was RMB2.64 cents, reversing a prior-year loss per share.

Outlook and guidance

• Double-digit group revenue growth expected in 2026, with Kingdee AI Suite revenue to exceed RMB1 billion.

• Subscription revenue projected to maintain ~20% growth.

• Adjusted net margin forecasted to rise from 3.3% to ~7%.

• Operating cash flow growth targeted at 20%+.

• Focus on "AI First, Subscription First, and Globalization" to drive future growth.