Kingdee International Software Announces FY2025 Results

[17 March 2026] Kingdee International Software Group Company Limited ("Kingdee International," "Kingdee" or the "Company"; stock code: [268.HK]) today announced the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2025 (the "Reporting Period"; Currency unit: unless otherwise noted, all amounts are in Renminbi ("RMB")). During the Reporting Period, the Group achieved both growth in revenue and profit, recording total revenue of approximately RMB7,006 million, representing a year-on-year increase of approximately 12.0%; cloud service revenue of approximately RMB5,782 million, accounting for approximately 82.5% of Group revenue, of which subscription revenue increased approximately 20.9% year-on-year to RMB3,556 million. Profit attributable to owners of the Company was approximately RMB93 million, with adjusted net profit of approximately RMB232 million, both achieving turnaround from loss to profit. Net cash inflow from operating activities was approximately RMB1,097 million, representing a year-on-year increase of approximately 17.6%.

Kingdee continues to lead the market, having empowered over 70 Fortune Global 500 companies, more than half of the China Fortune 500, and 48% of national-level "Little Giant" (specialized and sophisticated) enterprises to achieve digital and intelligent transformation, and has received extensive recognition from authoritative institutions both internationally and domestically. According to IDC reports, Kingdee ranks No. 1 in the China market across multiple sub-segments including enterprise application cloud, SaaS ERP, Financial Cloud, Treasury Cloud, EPM, Tax Cloud, and PLM Cloud, and has maintained the No. 1 market share in the growth enterprise application software segment for 21 consecutive years. Kingdee is the only Chinese vendor included in Gartner's Magic Quadrant for Cloud ERP as a product-centric enterprise, and has been recognized as an exemplary performer in Gartner's Voice of the Customer for Cloud ERP. In the AI domain, Kingdee was selected for the IDC Asia Pacific AI-Enabled ERP MarketScape (with the highest rating among Chinese vendors) and was honored with the First Prize of the Wu Wenjun Artificial Intelligence Science and Technology Award. Additionally, Kingdee received the MSCI ESG AAA rating (the highest level), with scores ranking first globally in the software and services industry.

During the Reporting Period, Kingdee has successfully executed its subscription transition, with economies of scale continuing to manifest: Annual Recurring Revenue (ARR) from subscription services was approximately RMB4,090 million, representing a year-on-year increase of approximately 19.2%; subscription-related contract liabilities were approximately RMB3,773 million, representing a year-on-year increase of approximately 20.7%, providing sufficient visibility for future revenue.

Gross profit margin improved by approximately 2.0 percentage points year-on-year to 67.1%, while the selling and marketing expense ratio and R&D expense ratio decreased by 1.1 percentage points and 2.9 percentage points year-on-year, respectively.

Kingdee Cloud Cosmic and Kingdee Cloud Constellation together recorded revenue growth of approximately 28.0% year-on-year to approximately RMB1,940 million, of which cloud subscription revenue increased approximately 35.4% year-on-year to approximately RMB528 million; Kingdee Cloud Galaxy achieved cloud subscription revenue of approximately RMB1,521 million, representing a year-on-year increase of approximately 19.3%; small and micro enterprise products achieved cloud subscription revenue of approximately RMB1,142 million, representing a year-on-year increase of approximately 22.7%. During the period, new clients signed include CHN Energy, CRRC Group, Ansteel Mining, China Life, Chery Holdings, Taikang Insurance, Messer China, 7-Eleven China, and other major central SOEs, Fortune 500 companies, and leading private enterprises, as well as 1,461 "Little Giant" enterprises including Minimax, Kunlun Core, Zhipu Huazhang, BrainCo, and Rokid. The net dollar retention rates (NDR) for each product line were approximately: Kingdee Cloud Cosmic and Kingdee Cloud Constellation 110% (up 2 percentage points year-on-year), Kingdee Cloud Galaxy 97% (up 2 percentage points year-on-year), and Kingdee Cloud Stellar 94% (up 1 percentage point year-on-year).

During the Reporting Period, Kingdee continued to deepen its "AI First" strategy, with "Kingdee Cloud" comprehensively upgraded to "Kingdee AI" and accelerating AI transition. Kingdee's deep understanding of industry-specific scenarios and its enterprise-grade data assets accumulated over decades serve as both the fertile ground for AI development and the foundation for building high-quality context engineering - enabling AI to truly comprehend the business language of each individual enterprise. Leveraging this core advantage, Kingdee AI has built a complete technology stack spanning from intent recognition to agent execution, launching "Xiao K," China's first enterprise-grade AI-native super portal and releasing nearly 20 independent AI-native intelligent agents covering scenarios including financial analysis, recruitment, contract review, and ESG. Among these, TikSight has nearly 400,000 registered users and 35 enterprise clients.

During the Reporting Period, Kingdee AI achieved contract value of RMB356 million, with new signings including Liuzhou Steel Group, Shenzhen Energy, Guangdong Energy, CEEG, Fuzhou Port Group, and Ningbo Water, assisting enterprises in achieving tangible cost reduction and efficiency improvement in scenarios such as

ChatBI, intelligent document review and fraudulent trade screening. For the small and micro enterprise market, Kingdee AI achieved bookkeeping efficiency improvements of over 80%, invoicing efficiency improvements of 40%, and tax filing efficiency improvements of 60%, with AI assistant users exceeding 200,000. Kingdee CreditTech focuses on the credit AI domain, having built an AI-native credit decision engine and launched core applications including industrial chain mapping and tax invoice anti-fraud AI. During the period, it successfully signed China Construction Bank, Bank of Communications, and other major banks.

The Group has fully embedded AI into its R&D system, achieving a new R&D paradigm of deep collaboration between AI and engineers - during the period, 41% of newly added code was generated by AI, and AI generated code reached as high as 100% in certain scenarios. R&D delivery cycles were shortened by 21%. The Group also continued to deepen strategic partnerships with Volcano Engine, Alibaba Cloud, Huawei Cloud, and others, integrating mainstream large model capabilities into the Kingdee AI product ecosystem.

During the Reporting Period, the Group has built localized service systems in Qatar, Vietnam, Thailand, Indonesia, Malaysia, and other locations; 463 quality enterprises were successfully signed, covering core industries including equipment manufacturing, bulk commodity trading, and pharmaceuticals, with clients including Chin Hin Group Berhad, Amlogic, UGREEN, and PT Merdeka Battery Materials, among other industry leaders. During the period, Kingdee built a unified data middle platform for China Aviation Oil (Singapore) Corporation to enable cross-regional digital business management, created a digital transformation benchmark for the Southeast Asian construction industry for Chin Hin Group Berhad, optimizing Local Tax and Customs Integration for NEOTEK Vietnam, and won the bid for Qatar Hejen Racing Committee project, demonstrating cross-domain service capabilities. Kingdee continued to deepen partnerships with local partners such as Vietnam's FPT Group and Qatar's Malomatia, integrating AI capabilities with localized services to continuously expand its global business footprint.

About Kingdee International Software Group Company Limited

Kingdee International Software Group Company Limited ("Kingdee International" or "Kingdee") was founded in 1993 and is listed on the Main Board of the Hong Kong Stock Exchange (stock code: 268.HK). Headquartered in Shenzhen, China, Kingdee is a globally leading and China's No. 1 enterprise management cloud SaaS company. Guided by its core values of "Act with conscience, walk the righteous path, lead with benevolence" and its mission to "Empower every enterprise to achieve phenomenal success," Kingdee is committed to becoming "the most trustworthy AI platform for enterprise management." Over more than 30 years, Kingdee has provided products and services to over 7.4 million enterprises and government organizations worldwide, and is the common choice for numerous Fortune 500 companies and "Little Giant" enterprises. Kingdee has received extensive recognition from renowned domestic and international research institutions in cloud services and AI: according to IDC and Gartner data, Kingdee has maintained the No. 1 market share in China's enterprise resource management cloud and aPaaS markets for multiple years, and is the only enterprise management vendor among the Top 10 Generative AI Model (Gen AI model) vendors in the China market.

This press release is issued on behalf of Kingdee International Software Group Company Limited by Wonderful Sky Financial Group Holdings Limited.

For enquiries, please contact: Wonderful Sky Financial Group Angie Li & Lynne Jin

Tel: (852) 6150 8598 / (852) 5471 1140

Email: po@wsfg.hk