Kingdee International Software Group Company Limited (KINGDEE INT'L) reported a turnaround for the six months ended 30 June 2026, posting profit attributable to owners of RMB54.50 million compared with a RMB97.74 million loss a year earlier.

Revenue rose 13.6% year on year to RMB3.63 billion, underpinned by a 16.6% increase in cloud services to RMB3.12 billion, which accounted for 86.0% of total sales. Subscription revenue expanded 20.4% to RMB2.03 billion, lifting annual recurring revenue to RMB4.41 billion, up 18.3%.

Gross profit advanced 17.2% to RMB2.46 billion, with gross margin improving 2.1 percentage points to 67.7% on a richer mix of high-margin subscription income and better profitability in implementation and consulting services. Selling and marketing expenses grew 5.3% to RMB1.33 billion, but fell to 36.7% of revenue from 39.6%; R&D expenses rose 4.3% to RMB809.21 million yet narrowed to 22.3% of revenue versus 24.3% a year earlier.

Adjusted profit attributable to owners, which excludes share-based compensation, investment fair-value changes and other non-cash items, reached RMB116.09 million, reversing a RMB51.16 million loss in the prior-year period.

By segment, Subscription & Software revenue climbed 15.1% to RMB2.30 billion, while Implementation, Consulting, Maintenance & Others grew 11.0% to RMB1.32 billion. Revenue from AI-native products (Lingee and Kingdee AI Suite) surged 189.0% to RMB296 million; related contract value soared 159.2% to RMB605 million.

Operating cash inflow totalled RMB142.45 million, compared with a RMB18.22 million outflow last year. Cash and bank deposits stood at RMB2.96 billion at 30 June 2026; the current ratio was 1.01.

The company repurchased 34.92 million shares on the Hong Kong Stock Exchange for HKD279.41 million, subsequently cancelled on 24 July 2026. During the period, 14.02 million award shares were granted under the 2025 Share Award Scheme.

No interim dividend was declared.

Management reaffirmed its “AI First, Subscription First, Globalisation” strategy, highlighting rapid adoption of the Lingee enterprise agent OS and expansion into Southeast Asian markets. KINGDEE INT'L has assisted 70 Fortune Global 500 and 381 China Top 500 enterprises in digital-intelligent transformation and remains the only mainland vendor recognised in both Gartner’s Cloud ERP “Voice of the Customer” and Magic Quadrant for PLM Applications in Discrete Manufacturing.