TLDR: Kingdee International Software Group has reported significant double-digit growth in its cloud services for the first half of the year, with total revenue reaching 3.19 billion yuan. This robust performance is largely attributed to the company’s accelerating AI-powered strategy, which has driven demand for its AI-infused cloud subscription services and solidified its leadership in China’s enterprise software market. The company launched new AI platforms and agents, securing substantial contracts and expanding its global footprint.
Kingdee International Software Group, a prominent player in China’s enterprise software market, announced impressive financial results for the first half of the year, ending June 30. The company reported a total revenue of 3.19 billion yuan (approximately $442 million), marking an 11.2 percent year-on-year increase. This growth was significantly propelled by the surging demand for its cloud subscription services, which are increasingly infused with artificial intelligence capabilities.
Cloud services revenue specifically climbed by 11.9 percent to 2.67 billion yuan, while cloud subscription revenue saw an even more substantial jump of 22.1 percent, reaching 1.68 billion yuan. The company’s annual recurring revenue (ARR) also demonstrated strong momentum, increasing by 18.5 percent to 3.73 billion yuan. Kingdee’s gross profit margin improved to 65.6 percent, reflecting enhanced operational efficiency.
According to market consultancy IDC, Kingdee has maintained its dominant market share across several key enterprise application segments in China, including SaaS ERP, finance cloud, and PLM cloud. The company also achieved a notable distinction by becoming the sole Chinese entity listed in Gartner’s discrete manufacturing PLM market guide and secured top rankings in Gartner reports for high-productivity aPaaS and generative AI applications in enterprise management.
Artificial intelligence has emerged as a pivotal growth driver for Kingdee. In the first half, the company unveiled its Cosmic AI Agent 2.0 platform and introduced a comprehensive suite of AI-native agents designed for various business functions such as finance, analytics, travel, recruitment, and quoting. These AI initiatives have already yielded significant commercial success, with new contracts exceeding 150 million yuan. Key new clients leveraging Kingdee’s AI solutions include Hisense Group, Tongwei Co, and China Jinmao.
Performance across Kingdee’s product lines was strong. Its large-enterprise solutions, Kingdee Cloud Cosmic and Kingdee Cloud Constellation, generated 845 million yuan in revenue, a substantial 34.3 percent increase, with subscription income soaring by 41.1 percent and a net dollar retention rate of 108 percent. The mid-market solution, Kingdee Cloud Galaxy, saw its subscription revenue rise by 19 percent to 740 million yuan, while small-business offerings, Xingchen and Jingdouyun, experienced a 23.8 percent increase in subscription sales, reaching 537 million yuan.
Kingdee is also actively pursuing its globalization strategy. The company added 259 new clients in the first half, comprising both Chinese enterprises expanding internationally and local overseas companies, such as Singapore’s SKYWIN Energy. It is developing localized applications for key markets including Singapore, Vietnam, and the Gulf region. Furthermore, strategic partnerships with international financial institutions like Standard Chartered, HSBC, and Deutsche Bank are aimed at enhancing capabilities in treasury, cross-border payments, and fintech services.
Also Read:
- IBM: A Profitable AI Stock Gaining Traction, Often Underestimated by Individual Investors
- Kellton Tech Solutions Shares Soar on Robust Q1 FY26 Performance, Driven by AI-Led Growth
Xu Shaochun, Chairman and CEO of Kingdee, emphasized the transformative impact of AI on the industry. ‘AI+SaaS is reshaping the industry and unlocking unprecedented opportunities for enterprise management,’ Xu stated. He further articulated the company’s strategic direction, adding, ‘With our AI-first, subscription-first and globalization strategy, we are confident in leading this transformation and achieving our vision of becoming the world’s top enterprise management AI company by 2030.’
