China's Kingdee posts double-digit cloud growth as AI-powered strategy accelerates

Kingdee International Software Group reported strong first-half growth, driven by surging demand for its AI-infused cloud subscription services and continued leadership in China's enterprise software market.

Revenue for the six months ended June 30 rose 11.2 percent year-on-year to 3.19 billion yuan ($442 million), with cloud services up 11.9 percent to 2.67 billion yuan.

Cloud subscription revenue jumped 22.1 percent to 1.68 billion yuan, as annual recurring revenue climbed 18.5 percent to 3.73 billion yuan. Gross profit margin also improved to 65.6 percent.

According to market consultancy IDC, Kingdee maintained the largest market share in China across multiple enterprise application segments – from SaaS ERP and finance cloud to PLM cloud.

It also became the only Chinese company listed in Gartner's discrete manufacturing PLM market guide, and earned top rankings in Gartner reports for high-productivity aPaaS and generative AI applications in enterprise management.

AI has become a major growth driver. In the first half, Kingdee launched its Cosmic AI Agent 2.0 platform and a suite of AI-native agents for finance, analytics, travel, recruitment and quoting, signing contracts worth more than 150 million yuan. New clients included Hisense Group, Tongwei Co and China Jinmao.

Its large-enterprise products Kingdee Cloud Cosmic and Kingdee Cloud Constellation generated 845 million yuan in revenue, up 34.3 percent, with subscription income soaring 41.1 percent and a net dollar retention rate of 108 percent.

Mid-market solution Kingdee Cloud Galaxy lifted subscription revenue 19 percent to 740 million yuan, while small-business offerings Xingchen and Jingdouyun saw subscription sales rise 23.8 percent to 537 million yuan.

Kingdee also accelerated its overseas expansion, adding 259 new clients, which are Chinese enterprises going global and local overseas companies, including Singapore's SKYWIN Energy, and building localized applications for Singapore, Vietnam and Gulf markets. Partnerships with Standard Chartered, HSBC and Deutsche Bank aim to deepen capabilities in treasury, cross-border payments and fintech services.

Xu Shaochun, chairman and CEO of Kingdee, said: "AI+SaaS is reshaping the industry and unlocking unprecedented opportunities for enterprise management. 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."