Kingdee International Posts H1 2026 Profit of RMB 54.5 Million, Cloud Revenue Up 16.6%

Kingdee International released its results for the first half of 2026. During the period, the company achieved total revenue of approximately RMB 3.625 billion, up 13.6% year-on-year; adjusted net profit attributable to shareholders was approximately RMB 116 million. On a profit attributable to shareholders basis, the first-half profit was RMB 54.497 million, compared with a loss of RMB 97.738 million in the same period last year. The company did not declare an interim dividend, with basic earnings per share of RMB 0.0155.

In cloud services, first-half cloud revenue was approximately RMB 3.116 billion, up 16.6% year-on-year. Among this, cloud subscription revenue was approximately RMB 2.028 billion, up approximately 20.4% year-on-year; annual recurring revenue (ARR) from subscriptions was approximately RMB 4.413 billion, up approximately 18.3% year-on-year. The company stated that revenue from AI-native products reached RMB 296 million, up 1.89 times year-on-year, driving subscription growth.

In terms of profitability, the gross margin for the first half was 67.7%, up 2.1 percentage points year-on-year. The company attributed the improvement to a higher proportion of subscription revenue with higher gross margins, as well as improved gross margins in implementation, consulting, operations and maintenance services, and other businesses.