Kingdee International Software Group Company (268) investor relations material

Executive summary

• Group revenue rose 13.6% year-over-year to RMB3,625.4 million in 2026 H1, driven by strong AI-native and cloud subscription product growth.

• Gross profit increased 17.2% to RMB2,455.9 million, with gross margin improving by 2.1 percentage points to 67.7%.

• Net profit attributable to owners was RMB54.5 million, reversing a loss last year; adjusted profit reached RMB116.1 million.

• Subscription revenue grew 20.4% YoY, with ARR up 18.3% to RMB4,413 million.

• Operating cash flow turned positive at RMB142.5 million, compared to an outflow last year.

Financial highlights

• Subscription and software revenue rose 15.1% to RMB2,300.6 million; implementation and consulting services up 11% to RMB1,324.8 million.

• AI-native product revenue surged 189% to RMB296 million; contract value up 159.2%.

• Cloud services revenue increased 16.6% to RMB3,116.2 million, accounting for 86% of total revenue.

• Basic EPS was RMB1.55 cents, compared to a loss per share of RMB2.78 cents last year.

• Net current assets stood at RMB48.5 million; current ratio at 1.01.

Outlook and guidance

• Double-digit group revenue growth expected for 2026, with AI-native product revenue projected to surpass RMB1 billion.

• Subscription revenue projected to grow 20%, and adjusted net profit margin to improve from 3.3% to 7%.

• Management aims to accelerate AI transformation and global expansion, targeting another leap in AI-native product growth by 2030.

• Focus remains on “AI first, Subscription first, and Globalisation” strategies.

• Overseas revenue to maintain strong growth; net cash from operations to increase over 20%.