Kingdee International Announces 2026 Interim Results:Revenue up 13.6% year on year; AI-native product revenue up 189% year on year

(11 August 2026) Kingdee International Software Group Company Limited (“Kingdee International”, “Kingdee” or the “Company”; stock code: 268.HK) announces the unaudited consolidated results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2026 (the “Reporting Period”; unless otherwise stated, all amounts are in RMB). During the Reporting Period, the Group recorded total revenue of approximately RMB3,625 million, representing a year-on-year increase of approximately 13.6%, mainly driven by the 189.0% year-on-year increase in revenue from AI-native products to approximately RMB296 million. Cloud services revenue amounted to approximately RMB3,116 million, representing a year-on-year increase of approximately 16.6% and accounting for approximately 86.0% of the Group’s revenue, of which subscription revenue amounted to approximately RMB2,028 million, representing a year-on-year increase of approximately 20.4%. Subscription annual recurring revenue (ARR) increased by approximately 18.3% year-on-year to approximately RMB4,413 million. Gross profit increased by approximately 17.2% year-on-year to approximately RMB2,456 million, with gross profit margin improving by approximately 2.1 percentage points year-on-year to approximately 67.7%. Profit attributable to Owners of the Company amounted to approximately RMB54 million, while adjusted profit attributable to Owners of the Company amounted to approximately RMB116 million. Net cash inflow generated from operating activities amounted to approximately RMB142 million.

Kingdee continued to lead the market, having assisted 70 Fortune Global 500 companies, 381 China Top 500 companies and 49% of national-level specialised, sophisticated, distinctive and innovative enterprises in their digital and intelligent transformation, and received broad recognition from authoritative institutions in China and overseas. Kingdee is the only Chinese vendor recognized in the Gartner Peer Insights “Voice of the Customer” for Cloud ERP for Product-Centric Enterprises, with the highest customer willingness-to-recommend rating among global vendors. It is also the only Chinese vendor recognized in the Gartner Magic Quadrant for PLM Applications in Discrete Manufacturing. According to IDC, Kingdee ranked first in China’s SaaS EA, SaaS ERM, finance, finance and accounting application cloud, treasury management cloud, EPM and tax markets, while its market share in China’s growth enterprise application software market ranked first for 22 consecutive years. In the area of AI, Kingdee was the highest-rated Chinese vendor in IDC’s Asia/Pacific AI-Enabled ERP Marketscape, and its revenue and market share in China’s AI-enhanced enterprise ERP public cloud (AI-SaaS) market both ranked first. Lingee was included in Gartner’s “Innovation Insight: Enterprise Agentic Capabilities”. In recognition of its outstanding performance in sustainable development, Kingdee was included in the global and China editions of S&P Global’s Sustainability Yearbook 2026 and was also included in the 2026 Dow Jones Best-in-Class Emerging Markets Index.

AI-native product revenue up 189% year on year; Lingee Enterprise Agent Operating System accelerates product iteration

During the Reporting Period, Kingdee’s AI-native products addressed the core needs of medium-to-large enterprises in enterprise AI transformation, AI-native ERP and globalisation solutions, with a focus on eight key industries, including equipment manufacturing, electronics and high-tech, life sciences, and food and beverage, and achieved scaled growth in new subscription signings. During the period, AI-native products (combination of Lingee and Kingdee AI Suite) recorded revenue of approximately RMB296 million, representing a year-on-year increase of approximately 189.0%, of which subscription revenue amounted to approximately RMB146 million, representing a year-on-year increase of approximately 282.9%. The contract value of signings reached RMB605 million, representing a year-on-year increase of 159.2%, newly signed customers including QBoson, Shuanghui Group, Youlu Robotics, Kunlunxin and ModelBest. Since its launch on 20 May, Lingee has signed 26 customers and deployed more than 40 agents covering general business areas including finance, supply chain, procurement and manufacturing. During the period, Lingee entered into strategic AI co-creation partnerships with pilot customers such as Hytera, Moore Threads, BrainCo and Kunlunxin to jointly build the “Lingee Organisation” integrating industry practices, and also signed new customers including Sunshine Zero Carbon, BWTON, Guolin New Materials, RZBC (Juxian) and Yazhen Group.

Lingee is the enterprise agent operating system developed by Kingdee and is positioned as a unified enterprise-level AI entry point. It converts business data, management knowledge, organisational memory and business rules accumulated by enterprises into governable and reusable enterprise-level context, and supports cross-module analysis and execution based on unified workforce, operational and financial data. Lingee agents have been deployed in scenarios including finance and supply chain: the expense review agent can free up 20% to 30% of the manpower required for expense review; the bank reconciliation agent automatically completes reconciliation and variance adjustments on a 24/7 basis; the procurement review agent reduces three-way matching processing time from hours to minutes; and the closing agent improves period-end closing efficiency by 30%. On the application development side, Ecolovo Group used Lingee Build to invoke multiple agents through natural language to develop an equipment management system, improving development efficiency by more than 65% and shortening the delivery cycle from weeks to days.

Subscription revenue accounted for 60.3% of total AI+SaaS revenue; operating quality continued to improve

During the Reporting Period, AI+SaaS products (AI Constellation, AI Galaxy, AI Stellar and others) recorded revenue of approximately RMB2,770 million, representing a year-on-year increase of approximately 10.3%, of which subscription revenue amounted to approximately RMB1,670 million, representing a year-on-year increase of approximately 13.5% and accounting for approximately 60.3% of total AI+SaaS revenue. AI+SaaS products for the medium-to-large market recorded revenue of approximately RMB1,967 million, representing a year-on-year increase of approximately 8.5%, of which subscription revenue amounted to approximately RMB1,029 million, representing a year-on-year increase of approximately 10.1%. AI+SaaS products for the small and micro-enterprise market recorded revenue of approximately RMB803 million, representing a year-on-year increase of approximately 15.3%, of which subscription revenue amounted to approximately RMB642 million, representing a year-on-year increase of approximately 19.4%. Through improving product quality, delivery efficiency and organisational operating efficiency, the Group’s operating quality continued to improve. Revenue per employee increased by approximately 20.8% year-on-year, gross profit margin improved by approximately 2.1 percentage points to approximately 67.7%, while selling and marketing expenses and R&D expenses as a percentage of revenue decreased by approximately 2.9 percentage points and 2.0 percentage points year-on-year, respectively.

For large enterprises, the Group focused on central and state-owned enterprises, Fortune Global 500 companies and industry leaders, driving customers to upgrade from stand-alone ERP systems to digital resource management platforms (DRP). The Group connected core business functions including finance, procurement, production, sales and human resources, and provided operational analysis and decision support. During the Reporting Period, new customers included Sinopharm Group, CR Mixc Lifestyle and DJI. For medium-sized enterprises, the Group focused on high-growth industries such as specialised, sophisticated, distinctive and innovative enterprises, high-end manufacturing, semiconductors, new energy and automotive and auto parts, strengthening R&D, production, quality, multi-factory collaboration and cost control, consolidating standardised industry modules and improving delivery efficiency. During the Reporting Period, new customers included Zuo Ting YouYuan, TUBAO and Hanjiang Machine Tool. For small and micro enterprises, Kingdee focused on essential scenarios including financial and tax compliance, invoicing, tax filing, business analysis and supply chain management, and accelerated the deployment of AI capabilities. AI Stellar has launched eight AI capabilities and introduced industry solutions, driving an increase of more than 50% in customer delivery and deployment efficiency.

Chinese enterprises going global and overseas localisation progressing in parallel; local service network taking shape

During the Reporting Period, Kingdee continued to advance its globalisation strategy of “Chinese enterprises going global + overseas native customers”, establishing local service networks in markets including Malaysia, Thailand, Vietnam, Indonesia, Singapore and Qatar. Kingdee advanced the localised adaptation of its products in terms of multiple languages, multiple currencies, tax compliance across multiple countries and multinational group management. Financial and tax compliance capabilities for six countries are ready for direct delivery, and privacy compliance at the Singapore data centre has been achieved. The international business signed contracts with approximately 140 enterprise customers, including new customers such as Yongqing Group, the Treasury(Hong Kong SAR Government), CUCKOO International and Hailong Singapore from the government, financial services, manufacturing and energy sectors.

Mr. Xu Shaochun, Chairman of the Board and Chief Executive Officer of the Group, said: “In the AI era, enterprises do not need yet another tool. They need a secure and trusted enterprise agent operating system that can be entrusted with business decision-making. This is precisely why Lingee was created, and the market has responded to this proposition with genuine enthusiasm. The results for the first half of the year have demonstrated that Kingdee’s AI transformation is not merely a slogan, but a proven and effective path. We will accelerate, not slow down, until we achieve our goal: empowering enterprises worldwide to truly enter the AI-native era. By 2030, we aim to build another Kingdee with AI native products.”