Everbright Securities released a research report stating that KINGDEE INT'L (00268) focuses on a subscription-first and AI-first strategy. As a leading domestic ERP provider, KINGDEE's product capabilities are expected to further strengthen with AI integration. The firm maintains its revenue forecasts for 2025-2027 at RMB 6.9/7.7/8.5 billion and reiterates a "Buy" rating.

On November 4, 2025, KINGDEE announced at its Global Visionaries Conference the full upgrade of "KINGDEE Cloud" to "KINGDEE AI," alongside the launch of a new AI product, "Xiao K," marking the official entry of enterprise management into the AI-native era. Key highlights from Everbright Securities include:

**Product Updates**: 1) **"Xiao K"**: Positioned as a unified entry point for enterprise-level AI agents, it integrates nearly 20 intelligent agents covering supply chain, manufacturing, marketing, HR, finance, ESG, and more, including travel and contract review functionalities. These agents interconnect via "Xiao K" on mobile and PC, addressing specific business pain points while enabling cross-scenario collaboration. Future upgrades will introduce conversational interaction and inter-agent calls.

2) **"KINGDEE AI" Suite**: The rebranded "KINGDEE AI" product family now offers AI solutions for enterprises of all sizes. The flagship "KINGDEE Cloud Starry Sky Edition" will fully upgrade to the "KINGDEE AI Starry Sky Suite" on December 12, supporting one-click upgrades for clients. Pricing models will vary by organization size, usage, and prepayment options.

3) **Data Cloud Foundation**: "KINGDEE Data Cloud" serves as the backbone for AI-era enterprises, providing data collection, organization, and cleansing capabilities to support AI-native agents and enhanced SaaS solutions.

**Operational Data (3Q25)**: - Subscription ARR grew ~18% YoY to RMB 3.86 billion, with a net QoQ increase of RMB 130 million. To achieve its 20% full-year ARR growth target, Q4 requires ~RMB 256 million in net additions. Everbright projects an 18% ARR growth for 2025. - Renewal rates: 105% for flagship products, 95% for Starry Sky, 93% for Star Cloud, and 88% for Jingdou Cloud.

**Global Expansion**: KINGDEE’s three-phase overseas strategy includes: 1) Supporting Chinese enterprises abroad; 2) Engaging local markets (e.g., partnerships with Malaysia’s Revitalization Group and firms in Thailand, Singapore, and Indonesia); 3) Establishing regional R&D and delivery centers (e.g., Southeast Asia Delivery Center in Malaysia). Management aims for overseas revenue to contribute 5%-10% within 3-5 years.

**Risks**: Macroeconomic downturns, slower new client acquisition, intensified cloud service competition, and delays in AI product commercialization.