Earnings release
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement , make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement . Kingdee KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 金蝶 國際 軟件 集團 有限公司 ( incorporated in the Cayman Islands with limited liability ) ( Stock code : 268 ) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board ( the " Board " ) of directors ( the “ Directors ” ) of Kingdee International Software Group Company Limited ( “ Kingdee ” or the “ Company ” ) is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries ( the “ Group " ) for the six months ended 30 June 2026 are as follows : Financial highlights for the six months ended 30 June 2026 Revenue increased by approximately 13.6 % from the corresponding period in 2025 to approximately RMB3,625,422,000 ( corresponding period in 2025 : approximately RMB3,192,499,000 ) . Gross profit increased by approximately 17.2 % from the corresponding period in 2025 to approximately RMB2,455,912,000 ( corresponding period in 2025 : approximately RMB2,095,341,000 ) . Gross profit margin increased by approximately 2.1 percentage points from the corresponding period in 2025 to approximately 67.7 % . - Profit attributable to Owners of the Company amounted to approximately RMB54,497,000 ( corresponding period in 2025 : loss of approximately RMB97,738,000 ) ; adjusted profit attributable to Owners of the Company amounted to approximately RMB116,090,000 ( corresponding period in 2025 : loss of approximately RMB51,160,000 ) . Net cash inflow generated from operating activities amounted to approximately RMB142,450,000 ( corresponding period in 2025 : outflow of approximately RMB18,215,000 ) . - Basic earnings per share attributable to Owners of the Company amounted to approximately RMB1.55 cents ( corresponding period in 2025 : basic loss per share of approximately RMB2.78 cents ) .
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 2 Business Review and Outlook I. Financial Performance For the six months ended 30 June 2026, the Group recorded revenue of approximately RMB3,625,422,000, representing a year -on-year increase of approximately 13.6% (same period in 2025: approximately RMB3,192,499,000), mainly benefited from AI native product revenue increasing approximately 189.0% to approximately RMB296 million . Cloud services revenue amounted to approximately RMB3,116,191,000, representing a year-on-year increase of approximately 16.6% and accounting for 86.0% of total revenue (same period in 2025: approximately RMB2,672,918,000). Subscription revenue amounted to approximately RMB2,028,003,000, representing a year -on-year increase of approximately 20.4%. Subscription annual recurring revenue (ARR) amounted to approximately RMB4,413 million, representing a year-on-year increase of approximately 18.3%, mainly attributable to the growth in new signings driven by Kingdee AI Suite and robust demand from customers in certain industries. For the six months ended 30 June 2026, the Group recorded gross profit of approximately RMB2,455,912,000 (same period in 2025: approximately RMB2,095,341,000), representing a year -on-year increase of approximately 17.2%. Gross profit margin improved by app roximately 2.1 percentage points year on year to approximately 67.7%, mainly attributable to the increased contribution from subscription revenue with a higher gross profit margin, as well as the year -on-year improvement in the gross profit margin of implementation, consulting maintenance services and others. For the six months ended 30 June 2026, profit attributable to Owners of the Company amounted to approximately RMB54,497,000 (same period in 2025: loss of approximately RMB97,738,000). Adjusted profit attributable to Owners of the Company amounted to approximately RMB116,0 90,000 (same period in 2025: loss of approximately RMB51,160,000), mainly attributable to the growth of the subscription business, optimisation of the product and customer mix, improved operating efficiency and enhanced cost and expense controls. Basic earnings per share attributable to Owners of the Company amounted to approximately RMB1.55 cents (same period in 2025: basic loss per share of approximately RMB2.78 cents). Net cash inflow generated from operating activities amounted to approximately RMB142,4 50,000 (same period in 2025: outflow of approximately RMB18,215,000), mainly attributable to the continued growth in new subscription signings and additional purchases. II. Corporate Strategy and Business Highlights During the Reporting Period, Kingdee pursued its mission of “Empower enterprises, achieve extraordinary” and its vision of becoming “the most trusted enterprise AI partner”, and advanced its business under the strategies of “AI first, Subscription first and Globalisation”. In terms of products, Kingdee combined the Lingee Enterprise Agent Operating System with SaaS solutions to embed AI capabilities into management and business scenarios such as finance, supply chain and manufacturing, helping enterprises shift from “process - driven” to “intelligence-driven” operations.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 3 Kingdee continued to lead the market, having assisted 70 Fortune Global 500 companies, 381 China Top 500 companies and 49% of national-level specialised, sophisticated, distinctive and innovative enterprises in their digital and intelligent transformation, and received broad recognition from authoritative institutions in China and overseas. Kingdee is the only Chinese vendor recognized in the Gartner Peer Insights “Voice of the Customer” for Cloud ERP for Product -Centric Enterprises, with the highest custom er willingness -to- recommend rating among global vendors. It is also the only Chinese vendor recognized in the Gartner Magic Quadrant for PLM Applications in Discrete Manufacturing. According to IDC, Kingdee ranked first in China's SaaS EA, SaaS ERM, finance, finance and accounting application cloud, treasury management cloud, EPM and tax markets, while its market share in China's growing enterprise application software market ranked first for 22 consecutive years. In the area of AI, Kingdee was the highest-rated Chinese vendor in IDC's Asia/Pacific AI- Enabled ERP Marketscape, and its revenue and market share in China's AI -enhanced enterprise ERP public cloud (AI-SaaS) market both ranked first. Lingee was included in Gartner's “Innovation Insight: Enterprise Agentic Capabilities”. In recognition of its outstanding performance in sustainable development, Kingdee was included in the global and China editions of S&P Global's Sustainability Yearbook 2026 and was also included in the 2026 Dow Jones Best-in-Class Emerging Markets Index. (1) AI -native product revenue increased by 189% year on year; Lingee Enterprise Agent Operating System accelerates product iteration During the Reporting Period, Kingdee's AI -native products focused on the core needs of medium -to-large enterprises, including AI transformation, AI -native ERP and globalisation solutions, and achieved scaled growth in new subscription signings across eight key industries, namely automotive and auto parts, equipment manufacturing, electronics and high -tech, process manufacturing, life sciences, food and beverage, modern services, and wholesale and retail. During the period, AI native products (combination of Lingee and Kingdee AI Suite) recorded revenue of approximately RMB296 million, representing a year- on-year increase of approximately 189.0%, of which subscription revenue amounted to approximately RMB146 million, representing a year -on-year increase of approximately 282.9%. The contra ct value of AI native products reached RMB605 million, representing a year -on-year increase of 159.2%, with new customers signed, including Hytera, QBoson, Shuanghui Group, China Film Technology, Youlu Robotics, Kunlunxin, ModelBest and Yunsheng Intelligent. Since its launch on 20 May, Lingee has signed 26 customers and deployed more than 40 agents covering general business areas including finance, supply chain, procurement and manufacturing. During the period, Lingee entered into strategic AI co -creation partnerships with pilot customers such as Hytera, Moore Threads, BrianCo and Kunlunxin to jointly build the “Lingee Organisation” integrating industry practices, and also signed new customers including Sunshine Zero Carbon, BWTON, Guolin New Materials, RZBC (Juxian) Co., Ltd and Yazhen Group. Lingee is the enterprise agent operating system developed by Kingdee and is positioned as a unified enterprise- level AI entry point. It converts business data, management knowledge, organisational memory and business rules accumulated by enterprises into governable and reusable enterpr ise-level context, and supports cross - module analysis and execution based on unified workforce, operational and financial data. Lingee agents have been deployed in scenarios including finance and supply chain: the expense review agent can release 20% to 30% of the manpower required for expense review; the bank -enterprise reconciliation agent automatically completes reconciliation and variance adjustments on a 24/7 basis; the procurement payment review agent reduces three-way matching processing time from hours to minutes; and the closing agent improves closing efficiency by 30%. On the application development side, Ecolovo Group used Lingee Build to invoke multiple agents through natural language to develop an equipment management system, improving development efficiency by more than 65% and shortening the delivery cycle from weeks to days.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 4 (2) Subscription revenue accounted for 60.3% of total AI+SaaS revenue; operating quality continued to improve During the Reporting Period, AI+SaaS products (AI Constellation, AI Galaxy, AI Stellar, etc.) recorded revenue of approximately RMB2 ,770 million, representing a year -on-year increase of approximately 10 .3%, of which subscription revenue amounted to approximately RMB1 ,670 million, representing a year -on-year increase of approximately 13.5% and accounting for approximately 60.3% of total AI+SaaS revenue. AI+SaaS products for the large and medium -sized enterprise market recorded revenue of approximately RMB1 ,967 million, representing a year -on-year increase of approximately 8.5%, of which subscription revenue amounted to approximately RMB1 ,029 million, representing a year- on-year increase of approximately 10.1%. AI+SaaS products for the small and micro enterprise market recorded revenue of approximately RMB 803 million, representing a year -on-year increase of approximately 15. 3%, of which subscription revenue amounted to approximately RMB642 million, representing a year- on-year increase of approximately 19. 4%. By enhancing product quality, delivery efficiency and organisational operating efficiency, the Group continued to improve the quality of its operations. Revenue per employee increased by approximately 20.8% year on year, while gross profit margin increased by approximately 2.1 percentage points to approximately 67.7%. Sales and marketing expenses and research and development expenses as percentages of revenue decreased by approximately 2.9 percentage points and 2.0 percentage points year on year, respective ly. For large enterprises, the Group focused on central and state -owned enterprises, Fortune Global 500 companies and industry leaders, while expanding its coverage of high -end manufacturing, consumer and energy industries. The needs of large enterprises are s hifting from stand -alone ERP replacement to digital resource management platforms (DRP). Kingdee integrates platforms, data, processes and permissions, connects finance, treasury, procurement, production, sales and human resources, and on this basis provid es customers with business analysis and decision support beyond business recording and process control. During the Reporting Period, new customers signed included Sinopharm Group, China Resources Recycling Group, DJI, CR Mixc Lifestyle and Hoshine Silicon Industry. For medium-sized enterprises, the Group focused on high-growth industries such as specialised, sophisticated, distinctive and innovative enterprises, high-end manufacturing, semiconductors, new energy, automotive and auto parts, and electronics and high -tech, with its market share continuing to increase. Kingdee focused on building capabilities in IPD and R&D project management, production process control, quality and batch traceability, supplier lifecycle management, multi -plant collaboration and end-to-end cost management, and consolidating them into standardised and reusable industry modules to shorten delivery cycles and improve replication efficiency. During the Reporting Period, new customers signed included Zuo Ting You Yua n, TUBAO, Hanzhong Machine Tool, Jiale Electric and Nanen Auto. For small and micro enterprises, Kingdee increased investment in essential scenarios including financial and tax compliance, bookkeeping, invoicing, tax filing, business analysis and supply chain management. AI Stellar launched eight AI capabilities, including AI order -taking, AI invoicing, invoice authentication and smart printing, and introduced tiered industry solutions for food and beverage, apparel and footwear, 3C electronics, and pharmaceuticals and medical devices. The delivery and deployment efficiency for small and micro enterprise customers improved by more than 50%.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 5 (3) Chinese enterprises going global and overseas localisation progressed in parallel; local service network taking shape During the Reporting Period, Kingdee continued to advance its globalisation strategy of “Chinese enterprises going global + overseas native customers”, establishing local service networks in markets including Malaysia, Thailand, Vietnam, Indonesia, Singapore and Qatar. Kingdee advanced the localised adaptation of its products in terms of multiple languages, multiple currencies, tax compliance in multiple countries and multinational group management. Financial and tax compliance capabilities in six countries are ready for direct delivery, and privacy compliance at the Singapore data centre has been achieved. The international business signed contracts with approximately 140 enterprise customers, including new customers such as Yongqing Group, the Treasury (Hong Kong SAR Government), CUCKOO International and Hailong Singapore from the government, financial, manufacturing and energy sectors.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 6 CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As at 30 June 2026 Unaudited Audited 30 June 31 December Notes 2026 2025 RMB’000 RMB’000 Assets Non-current assets Property, plant and equipment 6 1,872,689 1,873,619 Right-of-use assets 7 237,352 224,542 Intangible assets 6 1,404,384 1,432,500 Investment properties 1,941,140 1,941,140 Investments in associates 8 538,176 531,791 Deferred income tax assets 137,858 126,202 Contract obtaining costs 311,733 233,083 Financial assets at fair value through profit or loss 9 1,621,877 847,349 Financial assets at fair value through other comprehensive income 4,463 4,463 Trade and other receivables 10 60,634 60,373 Loans to third parties 10 71,627 98,048 Long-term bank deposits 710,000 1,390,000 8,911,933 8,763,110 Current assets Inventories 65,594 60,954 Trade and other receivables 10 427,591 412,194 Loans to third parties 10 290,634 355,721 Contract assets 455,110 449,265 Contract obtaining costs 890,362 860,530 Financial assets at fair value through profit or loss 9 615,249 1,277,481 Pledged bank deposits 39,154 44,936 Short-term bank deposits 644,000 666,962 Cash and cash equivalents 1,563,484 1,694,936 4,991,178 5,822,979 Total assets 13,903,111 14,586,089
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 7 CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION (Continued) As at 30 June 2026 Unaudited Audited 30 June 31 December Notes 2026 2025 RMB’000 RMB’000 Liabilities Non-current liabilities Contract liabilities 797,810 571,337 Lease liabilities 7 37,180 18,896 Deferred income tax liabilities 142,658 149,627 977,648 739,860 Current liabilities Trade and other payables 12 1,024,984 1,757,056 Contract liabilities 3,847,653 3,815,125 Lease liabilities 7 23,413 22,717 Current income tax liabilities 17,740 16,380 Deferred income 28,869 26,230 4,942,659 5,637,508 Total liabilities 5,920,307 6,377,368 Net assets 7,982,804 8,208,721 Equity Equity attributable to owners of the Company Share capital 11 85,228 85,228 Share premium 11 5,938,442 5,988,205 Other reserves 938,511 1,162,810 Retained earnings 1,025,749 971,252 7,987,930 8,207,495 Non-controlling interests (5,126) 1,226 Total equity 7,982,804 8,208,721
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 8 CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT For the six months ended 30 June 2026 Unaudited Six months ended 30 June Notes 2026 2025 RMB’000 RMB’000 Revenue from contracts with customers 13 3,625,422 3,192,499 Cost of sales 14 (1,169,510) (1,097,158) Gross profit 2,455,912 2,095,341 Selling and marketing expenses 14 (1,330,408) (1,263,898) Administrative expenses 14 (368,132) (346,049) Net impairment losses on financial assets and contract assets 14 (24,866) (20,792) Research and development costs 14 (809,206) (775,514) Other income and gains - net 15 80,902 136,223 Finance income 29,854 36,627 Finance costs (2,481) (2,627) Finance income - net 27,373 34,000 Share of profits of associates – net 8 6,385 7,126 Profit/(loss) before income tax 37,960 (133,563) Income tax credit 16 10,185 24,458 Profit/(loss) for the period 48,145 (109,105) Profit/(loss) attributable to: Owners of the Company 54,497 (97,738) Non-controlling interests (6,352) (11,367) 48,145 (109,105) Earnings/(losses) per share for profit/(loss) attributable to owners of the Company (expressed in RMB cents per share) – Basic 17 1.55 （2.78） – Diluted 17 1.55 （2.78）
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 9 CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2026 Unaudited Six months ended 30 June 2026 2025 RMB'000 RMB'000 Profit/(loss) for the period 48,145 (109,105) Items that may be reclassified to profit or loss - Currency translation differences (2,577) 4,922 Other comprehensive (loss)/ income for the period (2,577) 4,922 Total comprehensive income/(loss) for the period 45,568 (104,183) Total comprehensive income/(loss) attributable to: - Owners of the Company 51,920 (92,816) - Non-controlling interests (6,352) (11,367) 45,568 (104,183)
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 10 CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2026 (All amounts in Renminbi thousands unless otherwise stated) Unaudited Attributable to owners of the Company Non- controlling interests Notes Share capital Share premium Other reserves Retained earnings Total Total equity Balance at 1 January 2026 85,228 5,988,205 1,162,810 971,252 8,207,495 1,226 8,208,721 Profit for the period - - - 54,497 54,497 (6,352) 48,145 Other comprehensive loss for the period Currency translation differences - - (2,577) - (2,577) - (2,577) Total comprehensive income for the period - - (2,577) 54,497 51,920 (6,352) 45,568 Transactions with owners Share award plan: - Value of employee services received 11 - 34,551 - - 34,551 - 34,551 - Transfer shares to the awardees upon vesting 11 - (84,314) 84,275 - (39) - (39) - Shares purchased for share award plan - - (60,705) - (60,705) - (60,705) Buy-back of shares - - (245,292) - (245,292) - (245,292) Total transactions with owners - (49,763) (221,722) - (271,485) - (271,485) Balance at 30 June 2026 85,228 5,938,442 938,511 1,025,749 7,987,930 (5,126) 7,982,804
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 11 CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED) For the six months ended 30 June 2025 (All amounts in Renminbi thousands unless otherwise stated) Unaudited Attributable to owners of the Company Non- controlling interests Notes Share capital Share premium Other reserves Retained earnings Total Total equity Balance at 1 January 2025 86,068 6,174,163 911,387 878,338 8,049,956 78,825 8,128,781 Loss for the period - - - (97,738) (97,738) (11,367) (109,105) Other comprehensive income for the period Currency translation differences - - 4,922 - 4,922 - 4,922 Total comprehensive loss for the period - - 4,922 (97,738) (92,816) (11,367) (104,183) Transactions with owners Employees share option scheme: - Proceeds from shares issued 11 56 10,044 - - 10,100 - 10,100 Share award plan: - Value of employee services received 11 - 51,169 - - 51,169 - 51,169 - Transfer shares to the awardees upon vesting 11 - (83,659) 82,507 - (1,152) - (1,152) - Shares purchased for share award plan - - (18,372) - (18,372) - (18,372) Buy-back of shares - - (37,100) - (37,100) - (37,100) Cancellation of shares 11 (896) (217,285) 218,181 - - - - Total transactions with owners (840) (239,731) 245,216 - 4,645 - 4,645 Balance at 30 June 2025 85,228 5,934,432 1,161,525 780,600 7,961,785 67,458 8,029,243
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 12 CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT For the six months ended 30 June 2026 Unaudited Six months ended 30 June 2026 2025 RMB'000 RMB'000 Cash flows from operating activities: Cash generated from operations 150,713 (15,899) Interest paid (1,135) (1,306) Income tax paid (7,128) (1,010) Net cash inflow/(outflow) from operating activities 142,450 (18,215) Cash flows from investing activities: Purchases of property, plant and equipment (89,917) (54,928) Proceeds from disposals of property, plant and equipment 327 71 Purchases of intangible assets (268,503) (262,704) Pledged and short-term bank and long-term bank deposits withdrawn - net 708,744 780,418 Interest received 34,937 108,088 Purchases of financial assets at fair value through profit or loss (3,113,228) (2,448,100) Proceeds from disposal of financial assets at fair value through profit or loss 2,984,169 2,333,230 Dividend received 1,200 - Net cash inflow from investing activities 257,729 456,075 Cash flows from financing activities: Proceeds from share options exercised - 10,100 Capital reduction from non-controlling interests (206,000) - Proceeds from borrowings 420,000 - Repayments of borrowings (420,000) (200,000) Principal elements of lease payments (18,018) (47,373) Payments for purchase of shares for share award plan (60,705) (18,372) Payments for buy-back of shares (245,292) (37,100) Net cash outflow from financing activities (530,015) (292,745) Net (decrease)/increase in cash and cash equivalents (129,836) 145,115 Effects of exchange rate changes on cash and cash equivalents (1,616) (1,691) Cash and cash equivalents at beginning of the period 1,694,936 1,529,682 Cash and cash equivalents at end of the period 1,563,484 1,673,106
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 13 1. General information Kingdee International Software Group Company Limited (the “Company”) was incorporated in the Cayman Islands in 1999 as an exempted company with limited liability. The address of its office is Kingdee Software Park, 2 Keji 12th Road South, Hi-Tech Industrial Park, Nanshan District, Shenzhen, Guangdong Province, the People’s Republic of China (the “PRC”). The Company is an investment holding company. The Company and its subsidiaries (together the “Group”) are principally engaged in the subscription and sales of software and implementation, consulting maintenance services and others. The Company has its primary listing on the Stock Exchange of Hong Kong Limited since 15 February 2001. These unaudited condensed consolidated interim financial statements are presented in thousands of Renminbi (RMB’000), unless otherwise stated. These unaudited condensed consolidated interim financial statements have been approved for issue by the Board of Directors on 11 August 202 6. This condensed consolidated interim financial information has not been audited. 2. Basis of preparation This unaudited condensed consolidated interim financial information for the six months ended 30 June 2026 has been prepared in accordance with IAS 34, ‘Interim financial reporting’. The unaudited condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 202 5 which have been prepared in accordance with International Financial Reporting Standards (“IFRS”). 3. Significant accounting policies The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2025, as described in those annual financial statements, except for below stated. (a) The Group has applied the following amendments for the first time for their annual reporting period commencing 1 January 2026 Amendments to the Classification and Measurement of Financial Instruments — Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity — Amendments to IFRS 9 and IFRS 7 Annual Improvements to IFRS Accounting Standards–Volume 11 — Annual Improvements The amendments listed above did not have any impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 14 3. Significant accounting policies (continued) (b) New standards and interpretations not yet adopted Effective for annual periods beginning on or after IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 Amendment to IAS 21 Translation to a Hyperinflationary Presentation Currency 1 January 2027 IFRS 19 Subsidiaries without Public Accountability Disclosures 1 January 2027 Amendments to IAS 28 Amendments to the Fair Value Option for Investments in Associates and Joint Ventures 1 January 2027 IFRS 20 Regulatory Assets and Regulatory Liabilities 1 January 2029 Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate To be determined Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for the six months ended 30 June 2026 and have not been early adopted by the Group. The Group has concluded on a preliminary basis that adoption of these new and amended standards is not expected to have significant impacts on the financial performance and positions of the Group when they become effective, except for IFRS 18 which will replace IAS 1 Presentation of Financial Statements, introducing new requirements and help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its imp acts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management -defined performance measures within the financial statements. Management is currently assessing the detailed implications of applying the new standard on the Group's consolidated financial statements. Taxes on income for the interim period are accrued using the tax rates that would be applicable to expected total annual assessable profits. 4. Estimates The preparation of interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing this unaudited condensed consolidated interim financial information, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2025. 5. Segment information The chief operating decision -maker (the “CODM”) has been identified as the executive directors of the Company. The executive directors review the Group’s internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 15 5. Segment information (continued) Starting from 1 September 2025, the Group has revised its internal reporting structure to separately measure and review the performance of “Subscription and software ” and “Implementation, consulting maintenance services and others ” as independent segments. Previously, software were included within the “Products, Implementation and Others” for segment results measurement . Accordingly, the Group has identified the following operating segments and has recast the comparative segment information to align with the updated segment structure. Subscription and software — Including subscriptions and sales of software Implementation, consulting maintenance services and others — Including provision of subscription and software implementation services, software solution consulting, maintenance, upgrade and other supporting services, and others The CODM assesses the performance of the operating segments based on the revenue and gross profit for the period of each segment. There were no segment assets and segment liabilities information provided to the CODM, as the CODM does not use this information to allocate resources or to evaluate the performance of the operating segments. The unaudited segment information for the six months ended 30 June 202 6 is as follows: Subscription and software Implementation, consulting maintenance services and others The Group Total RMB’000 RMB’000 RMB’000 Revenue 2,300,590 1,324,832 3,625,422 Cost of sales (81,161) (1,088,349) (1,169,510) Gross profit 2,219,429 236,483 2,455,912 The unaudited segment information for the six months ended 30 June 202 5 is as follows (recast): Subscription and software Implementation, consulting maintenance services and others The Group Total RMB’000 RMB’000 RMB’000 Revenue 1,999,487 1,193,012 3,192,499 Cost of sales (70,077) (1,027,081) (1,097,158) Gross profit 1,929,410 165,931 2,095,341
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 16 5. Segment information (continued) Revenue from external customers from the PRC and other locations is RMB 3,568,248,000 (the same period in 202 5: RMB3,150,889,000) and RMB57,174,000 (the same period in 202 5: RMB41,610,000), respectively for the six months period ended 30 June 2026. There is no single customer that contributed to over 10% of the Group’s revenue for the six months period ended 30 June 2026 and 30 June 2025. 6. Property, plant, equipment and intangible assets (a) Property, plant and equipment Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Opening net book amount at 1 January 1,873,619 1,744,118 Additions 57,143 39,464 Disposals (2,946) (2,693) Depreciation (55,127) (50,748) Closing net book amount at 30 June 1,872,689 1,730,141 (b) Intangible assets Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Opening net book amount at 1 January 1,432,500 1,231,892 Additions 268,600 262,863 Amortisation (296,716) (267,458) Closing net book amount at 30 June 1,404,384 1,227,297
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 17 7. Leases This note provides information for leases where the Group is a lessee. (a) Amounts recognised in the statement of financial position The statement of financial position shows the following amounts relating to leases: Unaudited Audited 30 June 31 December 2026 2025 RMB’000 RMB’000 Right-of-use assets Land use rights (i) 161,369 162,689 Buildings 57,911 39,067 Equipment 18,072 22,786 237,352 224,542 Lease liabilities Current 23,413 22,717 Non-current 37,180 18,896 60,593 41,613 Additions to the right-of-use assets during the six months ended 30 June 2026 were RMB36,912,000 (the six months ended 30 June 2025: RMB40,791,000). (i) The Group has land lease arrangement with Chin ese Mainland government. The land use rights are located in the PRC and held on remaining leases of between 26 to 37 years, and for self-use. (b) Amounts recognised in the statement of profit or loss The income statement shows the following amounts relating to leases: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Depreciation charge of right-of-use assets Land 3,586 2,777 Buildings 17,132 16,108 Equipment 4,714 786 25,432 19,671 Interest expense (included in finance cost) 1,090 1,315 Expense relating to short-term leases 2,003 2,566 The total cash outflow for leases in six months ended 30 June 2026 was RMB20,121,000 (the six months ended 30 June 2025: RMB50,067,000).
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 18 7. Leases (continued) (c) The Group’s leasing activities and how these are accounted for The Group leases various offices and equipment . Rental contracts are typically made for fixed periods of 1 to 6 years, but may have extension options as described in (d) below. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes. (d) Extension and termination options Extension and termination options are included in a number of property leases across the Group. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operations. The majority of extension and termination opt ions held are exercisable only by the Group and not by the respective lessors. 8. Investments in associates The carrying amount of equity -accounted investments has changed as follows for the six months ended 30 June 2026: Unaudited Six months ended 30 June 2026 RMB’000 At 1 January 531,791 Additions - Disposal - Share of profit of associates - net 6,385 At 30 June 538,176 All the associates of the Group are unlisted and operate in Mainland China. There are no significant contingent liabilities relating to liabilities of the associates for which the Group is severally liable.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 19 9. Financial assets at fair value through profit or loss (a) Classification of financial assets at fair value through profit or loss For the six months ended 30 June 202 6, the Group classifies the following financial assets at fair value through profit or loss (FVPL): • Debt investments that do not qualify for measurement at either amortised cost or FVOCI • Equity investments that are held for trading, and • Equity investments for which the entity has not elected to recognise fair value gains and losses through OCI Financial assets measured at FVPL include the following: Unaudited At 30 June 2026 Level 1(i) Level 2(i) Level 3(i) Total RMB’000 RMB’000 RMB’000 RMB’000 Financial assets at fair value through profit or loss Wealth management products(ii) - - 550,891 550,891 Listed equity securities 64,358 - - 64,358 Unlisted equity investment - - 1,621,877 1,621,877 64,358 - 2,172,768 2,237,126 Less: non-current portion - - (1,621,877) (1,621,877) Current portion 64,358 - 550,891 615,249 Audited At 31 December 2025 Level 1(i) Level 2(i) Level 3(i) Total RMB’000 RMB’000 RMB’000 RMB’000 Financial assets at fair value through profit or loss Wealth management products(ii) - - 1,190,215 1,190,215 Listed equity securities 87,266 - - 87,266 Unlisted equity investment - - 847,349 847,349 87,266 - 2,037,564 2,124,830 Less: non-current portion - - (847,349) (847,349) Current portion 87,266 - 1,190,215 1,277,481
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 20 9. Financial assets at fair value through profit or loss (continued) (a) Classification of financial assets at fair value through profit or loss(continued) (i) The table analyses the Group’s financial instruments carried at fair value as at 30 June 202 6 and 31 December 2025 by level of the inputs to valuation techniques used to measure fair value. Such inputs are categorised into three levels within a fair value hierarchy as follows: - Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). The fair value of financial instruments that are not traded in an active market (for example, over- the- counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is avail able and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Specific valuation techniques used to value financial instruments include: - Quoted market prices or dealer quotes for similar instruments. - Discounted cash flow analysis. (ii) This represented the Group's investments in various wealth management products issued by commercial banks and state-owned financial institutions. These products have a term ranging from 1 month to 12 months. They have an expected return rate ranging from 1.10 % to 2. 20%. No single wealth management product investment accounted for over 5% of the Group’s total assets. The fair values of these investments were determined based on income approach. (b) The following table presents the changes in level 3 instruments for the six months ended 30 June 202 6: Unaudited Financial assets at fair value through profit or loss RMB’000 At 1 January 2026 2,037,564 Additions 3,113,228 Disposals (2,984,169) Gains recognised in profit or loss 6,145 At 30 June 2026 2,172,768 Changes in unrealised gains for the period included in profit or loss at the end of the period 6,145
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 21 9. Financial assets at fair value through profit or loss (continued) (b) The following table presents the changes in level 3 instruments for the six months ended 30 June 202 6: (continued) Unaudited Financial assets at fair value through profit or loss RMB’000 At 1 January 2025 1,352,775 Additions 2,448,100 Disposals (2,333,230) Losses recognised in profit or loss (2,794) At 30 June 2025 1,464,851 Changes in unrealised losses for the period included in profit or loss at the end of the period (2,794) 10. Trade and other receivables and loans to third parties Unaudited Audited 30 June 31 December 2026 2025 RMB'000 RMB'000 Trade receivables (a) 303,519 284,594 Less: allowance for impairment of trade receivables (113,146) (116,540) Trade receivables - net 190,373 168,054 Notes receivable 72,924 64,068 Other receivables -Advances to employees 8,047 4,651 -Prepayments 65,076 71,481 -VAT recoverable 14,691 20,034 -Interest receivables 108,670 109,336 -Receivables from related parties 254 303 -Receivables from non-controlling shareholders 40,403 40,403 -Others 16,517 18,934 Less: allowance for impairment of other receivables (excluding prepayments) (28,730) (24,697) 488,225 472,567 Less: non-current portion (60,634) (60,373) Current portion 427,591 412,194 Loans to third parties (b) - Current portion 290,634 355,721 -Non-current portion 71,627 98,048 362,261 453,769
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 22 10. Trade and other receivables and loans to third parties (Continued) (a) Sales are generally made without prescribed credit terms in the sales contracts but customers usually take one to three months to settle the receivables. The aging analysis of trade receivables were as follows: Unaudited Audited 30 June 31 December 2026 2025 RMB'000 RMB'000 0-90 days 127,851 128,762 91-180 days 5,658 1,977 181- 360 days 35,470 21,153 Over 360 days 134,540 132,702 303,519 284,594 (b) The loans to third parties Unaudited Audited 30 June 2026 31 December 2025 RMB’000 RMB’000 Loans to third parties 365,935 458,353 Less: Provisions for collective impairment assessment of the loans (3,674) (4,584) Loans to third parties, net of provision 362,261 453,769 Less: non-current portion (71,627) (98,048) Current portion 290,634 355,721 The loans to third parties represented loans made under the micro -credit business, which bear interest from 8.00% to 24.00% (31 December 2025: 8.00% to 24.00%) per annum and are repayable with fixed terms agreed with the customers, and all denominated in RMB. The fair values of the loans to third parties approximated their carrying amounts. The interest accrued was due within 12 months and presented in interest receivables. The Group considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in cre dit risk, the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Group performed expected credit loss assessment of loans to third parties collectively by grouping loans with similar credit risk characteristics. During the six months ended 30 June 202 6 and 2025, the majority of the loans were in stage 1 and there was no significant change in credit quality for loans for both periods.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 23 11. Share capital and share premium Unaudited Number of shares Share capital Share premium Total (thousands) RMB'000 RMB'000 RMB'000 At 1 January 2026 3,549,469 85,228 5,988,205 6,073,433 Share award plan - Value of services received - - 34,551 34,551 - Transfer shares to the awardees upon vesting - - (84,314) (84,314) At 30 June 2026 3,549,469 85,228 5,938,442 6,023,670 At 1 January 2025 3,586,015 86,068 6,174,163 6,260,231 Employee share option scheme - Proceeds from shares issued 2,343 56 10,044 10,100 Share award plan - Value of services received - - 51,169 51,169 - Transfer shares to the awardees upon vesting - - (83,659) (83,659) Cancellation of shares (38,889) (896) (217,285) (218,181) At 30 June 2025 3,549,469 85,228 5,934,432 6,019,660 12. Trade and other payables Unaudited Audited 30 June 31 December 2026 2025 RMB'000 RMB'000 Trade payables ((a) and (b)) 88,335 110,423 Note payables 39,052 33,364 Salary and staff welfare payables 201,086 418,014 Deposits payable 181,809 243,455 Accrual for expenses 232,545 396,347 Construction payables (c) 226,648 263,862 Unpaid business acquisition consideration 4,000 4,000 Tax payables 10,183 43,453 Payable to non-controlling interests for capital reduction - 206,000 Others 41,326 38,138 1,024,984 1,757,056 (a) The fair values of trade and other payables approximate their carrying amounts. The carrying amounts of the Group’s trade and other payables are mainly denominated in RMB.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 24 12. Trade and other payables (continued) (b) As at 30 June 2026 and 31 December 2025, the aging analysis of trade payables is as follows: Unaudited Audited 30 June 31 December 2026 2025 RMB'000 RMB'000 0-180 days 55,482 97,604 181- 360 days 24,462 9,652 Over 360 days 8,391 3,167 88,335 110,423 (c) It mainly represents the Group's payables to the construction company for the construction costs incurred relating to Kingdee Cloud Building. 13. Revenue from contracts with customers Unaudited Six months ended 30 June 2026 2025 RMB'000 RMB'000 Subscription and software 2,300,590 1,999,487 - Subscription 2,028,003 1,684,262 - Software 272,587 315,225 Implementation, consulting maintenance services and others 1,324,832 1,193,012 - Implementation services 859,195 787,801 - Consulting maintenance and other services 465,637 405,211 3,625,422 3,192,499
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 25 14. Expenses by nature Significant expense items are analysed as follows: Unaudited Six months ended 30 June 2026 2025 RMB'000 RMB'000 Research and development costs Amounts incurred 797,766 778,822 Less: development costs capitalised (267,386) (260,865) Add: amortisation 278,826 257,557 809,206 775,514 Employee benefit expenses (excluding research and development costs) 1,395,622 1,395,342 Outsourcing services 333,111 261,134 Cost of inventories consumed and rental cost of cloud server 78,861 115,098 Depreciation of property, plant and equipment (Note 6(a)) 55,127 50,748 Depreciation of right-of-use assets (Note 7(b)) 25,432 19,671 Amortisation of trademarks, computer software, licenses, copyrights and customer relationship 9,901 17,890 Net impairment losses on financial assets and contract assets 24,866 20,792 15. Other income and gains – net Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Other income VAT refund and Program research income 41,672 82,859 Rental income - net 50,834 39,604 92,506 122,463 Other gains Realised and unrealised net (losses)/gains on financial assets at FVPL (13,047) 9,697 Net foreign exchange losses (4,278) (1,842) Others 5,721 5,905 (11,604) 13,760 80,902 136,223
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 26 16. Income tax credit Unaudited Six months ended 30 June 2026 2025 RMB'000 RMB'000 Current income tax 8,440 130 Deferred income tax (18,625) (24,588) (10,185) (24,458) (a) No provision for profits tax in Hong Kong has been made as the Group has no assessable profits for the period in those jurisdictions. (b) According to regulation (Fa Gai Gao Ji [202 6] No. 487) issued by the National Development and Reform Commission, the entity can register for the National Important Software Enterprise (“NISE”) in tax bureau if the entity complies with relevant requirements with a tax rate of 10%. Based on management’s assessment, it is highly probable that Kingdee Software (China) Co., Ltd. ( “Kingdee China”) will meet those requirements. Therefore, Kingdee China used a preferential deferred income tax rate of 10% for the six months ended 30 June 2026. The application of preferential tax rate stated above is subject to critical estimates of the management of the Group. (c) Kingdee Deeking Cloud Computing Co., Ltd., Kingdee Apusic Cloud Computing Co.,Ltd., Shanghai Guanyi Cloud Computing Software Co., Ltd., Beijing Kingdee Yunji Technology Co., Ltd. , CloudHub Network (Chongqing) Co., Ltd. were each qualified as a High -tech Enterprise and were entitled to a preferential tax rate of 15% for the period ended 30 June 2026. (d) Due to the uncertainty of the announcement of the legislation in some countries and regions and the complexities in applying the legislation and calculating global income, the Group is in the process of assessing its exposure to the Pillar Two legislation. The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 27 17. Earnings/(losses) per share (a) Basic Basic earnings/(losses) per share is calculated by dividing the profit/(loss) attributable to owners of the Company by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased and held for share award plan. Unaudited Six months ended 30 June 2026 2025 Profit/(loss) attributable to owners of the Company (RMB’000) 54,497 (97,738) Weighted average number of ordinary shares in issue (thousands) 3,510,860 3,512,972 Basic earnings/(losses) per share (RMB cents per share) 1.55 (2.78) (b) Diluted Diluted earnings/(losses) per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has two categories of dilutive potential ordinary shares: share options and share awards. For the share options and share awards, the number of shares that could have been issued upon the exercise of all dilutive share options and share awards less the number of shares that could have been issued at fair value (determined as the average annual market share price of the Company’s shares) for the same total proceeds is added to the denominator as the number of ordinary shares issued for no consideration. As the Group incurred losses for the six months ended 30 June 2025, the potential share options and share awards were not included in the calculation of dilutive losses per share, as their inclusion would be anti-dilutive. Accordingly, diluted losses per share for the six months ended 30 June 2025 was the same as basic losses per share of the respective period. Unaudited Six months ended 30 June 2026 2025 Profit/(loss) attributable to owners of the Company (RMB’000) 54,497 (97,738) Profit/(loss) used to determine diluted earnings/(losses) per share (RMB’000) 54,497 (97,738) Weighted average number of ordinary shares in issue (thousands) 3,510,860 3,512,972 Adjustment for: - share awards (thousands) 2,915 - Weighted average number of ordinary shares for diluted earnings/(losses) per share (thousands) 3,513,775 3,512,972 Diluted earnings/(losses) per share(RMB cents per share) 1.55 (2.78)
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 28 18. Dividends The Board did not recommend the payment of an interim dividend for the six months ended 30 June 2026 (the six months ended 30 June 2025: Nil). 19. Related party transactions The Group had transactions with related parties for the period ended 30 June 202 6 as follows: (a) Transactions with related parties Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Sales of products – Associates 146 - – Companies controlled by Directors 195 521 341 521 Sales of services – Associates 1,746 1,452 – Companies controlled by Directors 563 194 2,309 1,646 Rental income – Associates - 1,035 – Companies controlled by Directors 1,119 1,119 1,119 2,154 Products and services are sold based on terms agreed with the counterparties in the ordinary course of business, and the rental rates and interest rates are determined in the same way. (b) Purchase of products and services Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Purchase of products – Associates - 1,154 – Companies controlled by Directors 17 11 17 1,165 Purchase of services – Associates 3,212 26,504 – Companies controlled by Directors 677 41 3,889 26,545 Products and services purchased from associates and companies controlled by Directors are carried out on terms agreed with the counterparties in the ordinary course of business.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED Notes to the condensed consolidated interim financial information 29 19. Related party transactions (continued) (c) Balances with related parties Unaudited Audited 30 June 31 December 2026 2025 RMB'000 RMB'000 Receivables from related parties – Associates 281 390 – Companies controlled by Directors 640 723 921 1,113 Payable to related parties recorded in “Contract Liabilities” – Associates 2,349 2,471 – Companies controlled by Directors 1,890 1,499 4,239 3,970 Payable to related parties recorded in “Trade payables” – Associates 544 779 – Companies controlled by Directors 128 141 672 920 The above balances with related parties were interest free, unsecured and repayable on demand .
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 30 MANAGEMENT DISCUSSION AND ANALYSIS 1. Key Financial Information Revenue For the six months ended 30 June 2026, the Group recorded a total revenue of approximately RMB3,625,422,000, representing a year-on-year increase of approximately 13.6% (for the same period in 2025: approximately RMB3,192,499,000). Revenue from subscription and software grew by approximately 15.1% to RMB2,300,590,000 (for the same period in 2025: approximately RMB1,999,487,000). Revenue from implementation, consulting maintenance services and others amounted to approximately RMB1,324,832,000 (for the same period in 2025: approximately RMB1,193,012,000), reflecting a year -on-year increase of approximately 11.0%. The unaudited segment information for the six months ended 30 June 2026 is as follows: Subscription and software Implementation, consulting maintenance services and others The Group total RMB’000 RMB’000 RMB’000 Revenue 2,300,590 1,324,832 3,625,422 Cost of sales (81,161) (1,088,349) (1,169,510) Gross profit 2,219,429 236,483 2,455,912 The unaudited segment information for the six months ended 30 June 2025 is as follows (recast): Subscription and software Implementation, consulting maintenance services and others The Group total RMB’000 RMB’000 RMB’000 Revenue 1,999,487 1,193,012 3,192,499 Cost of sales (70,077) (1,027,081) (1,097,158) Gross profit 1,929,410 165,931 2,095,341 Gross Profit The Group recorded a gross profit of approximately RMB2,455,912,000 (for the same period in 2025: approximately RMB2,095,341,000), representing a year -on-year increase of approximately 17.2%. The gross profit margin increased by 2.1 percentage points compa red to 2025, reaching approximately 67.7% (for the same period in 2025: approximately 65.6%). The improvement in gross profit margin was primarily benefiting from a higher proportion of subscription revenue —which commands a high gross profit margin —as well as year-on-year improvements in gross profit margins for Implementation, consulting maintenance services and others.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 31 Selling and Marketing Expenses During the Reporting Period, the total selling and marketing expenses amounted to approximately RMB1,330,408,000 (for the same period in 2025: approximately RMB1,263,898,000), reflecting a year -on- year increase of approximately 5.3%. The percentage of selling and marketing expenses relative to total revenue decreased from 39.6% in 2025 to 36.7% in 2026. Administrative Expenses During the Reporting Period, administrative expenses amounted to approximately RMB368,132,000 (for the same period in 2025: approximately RMB346,049,000), representing a year -on-year increase of approximately 6.4%. The percentage of administrative expenses relative to total revenue decreased from 10.8% in 2025 to 10.2% in 2026. Research And Development Expenses During the Reporting Period, the total R&D costs amounted to approximately RMB797,766,000, representing a year-on-year increase of approximately 2.4% (for the same period in 2025: approximately RMB778,822,000). The R&D capitalization rate was approximately 33.5% (for the same period in 2025: 33.5%), with the capitalized amount reaching approximately RMB267,386,000, a year-on-year increase of approximately 2.5% (for the same period in 2025: approximately RMB 260,865,000). The amortization of R&D costs during the reporting period amounted to approximately RMB278,826,000, reflecting a year- on-year increase of approximately 8.3% (for the same period in 2025: approximately RMB257,557,000), while the R&D expenses recognized in the consolidated income statement amounted to approximately RMB809,206,000, representing a year-on-year increase of approximately 4.3% (for the same period in 2025: approximately RMB775,514,000). The percentage of R&D expenses relative to total revenue decreased from 24.3% in 2025 to 22.3% in 2026. Other Income and Gains – Net During the Reporting Period, o ther income and gains – net amounted to approximately RMB80,902,000, representing a year-on-year decrease of 40.6% (for the same period in 2025: approximately RMB136,223,000). Finance Income – Net During the Reporting Period, net finance income amounted to approximately RMB27,373,000, compared to net finance income of approximately RMB34,000,000 in the same period of 2025. Income Tax Credit During the Reporting Period, there was an income tax credit of approximately RMB10,185,000 (for the same period in 2025: approximately RMB24,458,000). Profit/(Loss) and Basic Earnings/(Loss) per Share For the six months ended 30 June 2026, the profit attributable to Owners of the Company was approximately RMB54,497,000 (for the same period in 2025: loss of approximately RMB97,738,000), representing a net profit margin of approximately 1.5% (for the same period in 2025: net loss margin of approximately 3.1%). The basic earnings per share were approximately RMB1.55 cents (for the same period in 2025: basic loss per share of approximately RMB2.78 cents).
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 32 Non-IFRS Financial Measures To supplement the consolidated results of the Group prepared in accordance with IFRS, non-IFRS financial measure adjusted profit attributable to equity holders of the Company have been presented in this announcement. These unaudited non -IFRS financial measures should be considered in addition to, not as a substitute for, measures of the Group’s financial performance prepared in accordance with IFRS. In addition, these non-IFRS financial measures may be defined differently from similar terms used by other companies. The Company’s management believes that the non -IFRS financial measures provide investors with useful supplementary information to assess the performance of the Group’s core operations by excluding certain non- cash items and certain impact of investment-related transactions. The following tables set forth the reconciliations of the Group’s non-IFRS financial measures for the six months ended 30 June 2026 and 2025 to the nearest measures prepared in accordance with IFRS: Unaudited Unaudited 30 June 2026 30 June 2025 RMB’000 RMB’000 Profit/(Loss) attributable to Owners of the Company 54,497 (97,738) Adjustment items: Share-based compensation 34,551 51,169 Net (gains)/losses from associates (6,385) (7,126) Amortization of acquisition-related intangible assets 14,140 4,885 Fair value changes of investments and impairment of goodwill 21,107 (1,918) Income tax effects (1,820) (432) Adjusted profit/(Loss) attributable to Owners of the Company (a non-IFRS measure) 116,090 (51,160) Financial Assets at Fair Value through Profit or Loss As of 30 June 2026, the Group’s financial assets at fair value through profit or loss amounted to approximately RMB2,237,126,000, an increase of RMB112, 296,000 compared to 31 December 2025. This includes a non - current portion of approximately RMB1,621,877,000 (31 December 2025: approximately RMB847,349,000) and a current portion of approximately RMB615,249,000 (31 December 2025: approximately RMB1,277,481,000).
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 33 Financial Assets Measured at FVPL Include the Following: Unaudited Audited 30 June 2026 31 December 2025 RMB’000 RMB’000 Financial assets at fair value through profit or loss Wealth management products (i) 550,891 1,190,215 Listed equity securities 64,358 87,266 Unlisted equity investments 1,621,877 847,349 2,237,126 2,124,830 Less: non-current portion (1,621,877) (847,349) 615,249 1,277,481 (i) This represented the Group’s investments in various wealth management products issued by commercial banks and state -owned financial institutions. These products have a term ranging from 1 month to 12 months with an expected annual return rate ranging from 1.10% to 2.20%. No single wealth management product investment accounted for over 5% of the Group’s total assets. The fair value of these investments is determined based on the income approach. Investments in Associates As of 30 June 2026, the book value of investments in associates changed as follows: Unaudited Six months ended 30 June 2026 RMB’000 At 1 January 531,791 Additions Disposals - Share of profits of associates – net 6,385 At 30 June 538,176 All the associates of the Group are unlisted and operate in Chinese Mainland. There are no significant contingent liabilities relating to liabilities of the associates for which the Group is severally liable. Contract Assets As of 30 June 2026, the Group’s contract assets amounted to approximately RMB455,110,000, compared with approximately RMB449,265,000 as at 31 December 2025.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 34 Loans to Third Parties Unaudited Audited 30 June 2026 31 December 2025 RMB’000 RMB’000 Loans to third parties 365,935 458,353 Less: Provision for collective impairment assessment of the loans (3,674) (4,584) Loans to third parties, net of provision 362,261 453,769 Less: non-current portion (71,627) (98,048) Current portion 290,634 355,721 The loans to third parties represented loans made under the micro -credit business, which bear interest from 8.00% to 24.00% (31 December 2025: 8.00% to 24.00%) per annum and are repayable with fixed terms agreed with the customers, and all denominated in RMB. The fair values of the loans to third parties approximated their carrying amounts. The interest accrued was due within 12 months and presented in interest receivables. The Group considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Group performed an expected credit loss assessment of loans to third parties collectively by grouping loans with similar credit risk characteristics. During the six months ended 30 June 2026 and 30 June 2025, the majority of the loans were in stage 1 and there was no significant change in credit quality for loans for both periods. Contract Liabilities As of 30 June 2026, the Group’s contract liabilities amounted to approximately RMB4,645,463,000. The corresponding contract liabilities as of 31 December 2025 were approximately RMB4,386,462,000 . The increase in contract liabilities during the reporting period was primarily due to the growth in the Group’s subscription business. Cash Flows, Financial, and Capital Resources As of 30 June 2026, the Group recorded total cash and bank deposits of RMB2,956,638,000 (31 December 2025: RMB3,796,834,000). As of 30 June 2026, the Group held wealth management products amounting to RMB550,891,000 (31 December 2025: RMB1,190,215,000). Th e majority of the Group’s cash, bank deposits, and asset management products are denominated in RMB, while the portion denominated in foreign currencies had an RMB equivalent of approximately RMB85,645,000 as of 30 June 2026 (31 December 2025: approximately RMB170,174,000), primarily denominated in USD and HKD. As of 30 June 2026, the Group’s net current assets amounted to approximately RMB48,519,000 (31 December 2025: approximately RMB185,471,000). The current ratio of current assets to current liabilities as of 30 June 2026 was approximately 1.01. As of 30 June 2026, the Group had no outstanding bank borrowings (31 December 2025: Nil).
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 35 Cash Flow and Fair Value Interest Rate Risk The Group’s exposure to interest rate fluctuations primarily arises from borrowings. Borrowings at floating interest rates expose the Group to cash flow interest rate risk, while borrowings at fixed interest rates expose the Group to fair value interest rate risk. The Group currently does not use any interest rate swaps to hedge its interest rate exposure. However, if necessary, the Group will consider hedging significant interest rate exposure. Foreign Exchange Risk The functional currency of the Company and its major subsidiaries is RMB. The majority of the revenues of the Group are derived from operations in the PRC. Foreign exchange risk is the risk of loss resulting from changes in foreign currency exchange rates. Fluctuations in exchange rates between RMB and other currencies in which the Group conducts business may affect its financial position and results of opera tions. The foreign exchange risk facing the Group mainly comes from movements in the US dollars (“USD”)/RMB and Hong Kong dollars (“HKD”)/RMB exchange rates. The Group does not currently adopt a formal foreign currency hedging policy. Nevertheless, management monitors foreign exchange risk and will implement hedging strategies for material foreign currency exposures as and when appropriate. Credit Risk Credit risk arises from cash and cash equivalents, contractual cash flows of debt instruments carried at amortised cost, at fair value through profit or loss (FVPL) and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables. The management manages the credit risk of cash and cash equivalents, pledged and short-term and long-term bank deposits and wealth management products (classified as financial assets at FVPL) by transacting with state-owned financial institutions and reput able commercial banks which are all high -credit-quality financial institutions in Chinese mainland and Hong Kong. In relation to trade receivables and contract assets, the Group has two kinds of distribution channels, one is sales to distributors and the other is sales to end customers. For sales to distributors, the Group has assessed the credit quality of the distributors, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance wi th limits set by management. The compliance with credit limits by distributors is regularly monitored by management. For sales to end customers, the Group has no significant concentration of credit risk in trade receivables since the balance of trade receivables is composed of numerous individual small items and the exposure spreads over a large number of customers. The Group’s investments in debt instruments, including loans to third parties, are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 36 For other receivables, management considers the probability of default upon initial recognition of asset and whether there has been significant increase in credit risk on an on -going basis. The directors of the Company believe that there is no material credit risk inherent in the Group’s outstanding balances of other receivables. Funds and Working Capital Management The management of funds and liquidity is centrally handled by the Treasury Department. The Treasury Department is generally responsible for the overall management and implementation of funds, which includes formulating the Group’s fund management policies, guiding, coordinating, and standardizing the fund management of regional companies, establishing annual fund plans, reviewing and summarizing annual capital budgets, as well as supervising and evaluating the fund management of regional companies. The finance departments of regional companies are committed to implementing the fund management policies established by the headquarters and are responsible for formulating fund plans and executing fund operations at the subsidiary level. The Group also adopts a m eticulous fund management policy and implements a set of fund management rules and guidelines, such as the “Group Fund Basic Internal Control Management Measures” and the “Branch Fund Settlement Management Measures,” to enhance the effectiveness and efficiency of fund management. This ensures financial security and reduces funding costs. To manage idle cash in inventory, the Group purchases and redeems wealth management products to create a "cash pool," from which cash can be obtained when needed, yielding higher returns than bank deposits. The financial assets related to the wealth manage ment products invested in by the Group mainly include low -risk wealth management products issued by financial institutions. The purchase amount will be determined based on surplus funds. The Group uses the “Fund Wealth Management Measures” as the primary f inancial policy for fund management. The Group’s process of purchasing wealth management products and managing related departments consistently adheres to financial policies in conducting business, accounting, and filing procedures. The Group possesses sufficient solvency. Through a comprehensive, reasonable, and professional evaluation mechanism, the Group has established annual and monthly fund planning, along with a set of rigorous fund management principles, enabling effective management of market risks. In terms of budget management, the Group has established monthly, quarterly, and annual budget management systems, which are subject to approval by the Chief Financial Officer. Capital budget plans should be formulated based on the Group’s business plans, project timelines, and contract payment terms to ensure accurate alignment with actual business needs.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 37 Principal Properties The table below provides a breakdown of the Group’s properties for the six months ended 30 June 2026 Property Name Location Current Usage Lease Term Total Appraised Value RMB’000 Beijing Kingdee Software Park. Fuxing 4th Street, Mapo Town, Shunyi District, Beijing, China. Office Long term 615,540 Shanghai Kingdee Software Park. No. 88, Chenhui Road, Zhangjiang Hi -Tech Park, Pudong, Shanghai, China. Office Long term 356,480 Shenzhen Kingdee Software Park. No. 2, 12th Road, Keji South Road, Nanshan District, Shenzhen, Guangdong Province, China. Office Long term 121,440 Shenzhen Kingdee Cloud Building. No. 2, 12th Road, Keji South Road, Nanshan District, Shenzhen, Guangdong Province, China. Office Long term 802,920 Shenzhen W1-B B1, 4th Floor, W1 Building, Gaoxing Industrial Village, Keji South 1st Road, Nanshan District, Shenzhen, Guangdong Province, China. Office Long term 44,760 1,941,140 2. Employees and Remuneration Policies As at the end of the Reporting Period, the Group had 10,517 employees. The Group continued to uphold the principles of “customer-centricity and long-term commitment to quality excellence”, continued to encourage product innovation and quality enhancement, and implemented initiatives relating to organisation, talent, culture and leadership development. The Group also upheld the principles of “putting strivers first and maintaining clarity and integrity over the long term”, recruited leading talent in AI transformation and outstanding fresh graduates, encouraged managers and key employees to rotate across positions, and developed management-oriented and innovation-oriented talent. The Group provided employees with training courses in AI -related professional skills , leadership and other areas, and adopted several share schemes to incentivise and reward the contributions of relevant employees. The remuneration policy of the Group is primarily determined with reference to the responsibilities of each employee's position, work performance, outstanding contributions and length of service, as well as prevailing market conditions. In assessing the re muneration payable to Directors and senior management, the remuneration committee of the Company considers factors including salaries paid by comparable companies, the tenure, commitment, responsibilities and individual performance of the Directors and senior management, as applicable.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 38 3. Social Responsibility During the Reporting Period, Kingdee was featured in S&P Global's Sustainability Yearbook 2026 (China edition) for the fourth consecutive year and was included in the Sustainability Yearbook 2026 (global edition) for the first time. The Group also promoted the integration of AI innovation and sustainable development through product initiatives including low -carbon supply chains, Invoice Cloud, scrap steel management and ESG agents. In terms of talent development, Kingdee collaborated with the Ministry of Education and universities on collaborative talent development initiatives . During the Reporting Period, the Group carried out Ministry of Education education programmes, including industry -academia collaboration and employment demand matching programmes, with more than 50 universities; organised more than 30 events, including the National College Student Enterprise Digital Management Innovation Competition and the 2026 BRICS Skills Competition, attracting more than 1,200 participating teams and over 6,00 0 students; and worked with universities including Nankai University, South China Normal University, Xi'an Jiaotong University and Central University of Finance and Economics to offer more than 30 digital practice-oriented courses . The Group also newly established more than 20 laboratories and practical training bases, providing digital learning and practical teaching services to more than 8,000 students and over 1,000 university teachers. In terms of corporate management, Kingdee launched the second “Best Practices in Enterprise Management” ranking during the period, with the theme “AI + Management: Forging New Quality Productive Forces”, and jointly provided a series of “AI Management Work shops” with universities and enterprises, covering 560 entrepreneurs and senior executives. In terms of public welfare, Kingdee made a donation to Gonghua Town Central Primary School in Yuanjiang City, Hunan Province to improve school conditions, and estab lished scholarships for outstanding students from underprivileged families. 4. Outlook “In the AI era, enterprises do not need yet another tool. They need a secure and trusted enterprise agent operating system that can be entrusted with business decision -making. This is precisely why Lingee was created, and the market has responded to this pr oposition with genuine enthusiasm. The results for the first half of the year have demonstrated that Kingdee’s AI transformation is not merely a slogan, but a proven and effective path. We will accelerate, not slow down, until we achieve our goal: empowering enterprises worldwide to truly enter the AI-native era. By 2030, we aim to build another Kingdee with AI native products.”
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 39 REPORT OF DIRECTORS Share Award Schemes 2015 Share Award Scheme The 2015 Share Award Scheme was adopted by the Company on 4 December 2015 to provide incentives and reward the contributions of key employees and directors of the Group. The 2015 Share Award Scheme shall be valid and effective for a period of 10 years comm encing from the adoption date and it was terminated on 21 January 2025. No further award Shares can be granted under the 2015 Share Award Scheme. Prior to its termination, the Board may, from time to time, in its absolute discretion select the participants , including (i) employees (whether full-time or part-time and including any executive director), consultants or advisers of or to the Group and (ii) any non-executive directors (including independent non-executive directors) of the Group, after taking into account various factors as it deems appropriate and determine the number of award Shares to be awarded to each of the selected participants. The award Shares comprise Shares subscribed for or purchased by the trustee out of cash arranged by the Company to the trustee and are held on trust for the selected participants until such Shares are vested with the selected participants in accordance with the provisions of the 2015 Share Award Scheme. As at the L atest Practicable Date, the award Shares granted under the 2015 Share Award Scheme involve only existing Shares. No consideration is required to be paid for the acceptance or vesting of the award Shares. The terms of the 2015 Share Award Scheme do not specify (i) any period for an award to be vested; (ii) any amount required to be paid on acceptance of an award nor the payment period; and (iii) any basis for determining the purchase price (if any) of award Shares. A selected participant shall be entitled to receive the award Shares held by the trustee appointed by the Company for the purpose of the 2015 Share Award Scheme in accordance with the vesting schedule upon satisfaction of the vesting criteria and conditions specified by the Board in the offer of the grant of the relevant award Shares. The Board shall not make any further award of award Shares which will result in the nominal value of the Shares awarded by the Board under the 2015 Share Award Scheme exceeding 3% of the issued S hare capital from time to time. For the avoidance of doubt, the 3% limit provided above shall exclude any Shares which have been vested. The maximum number of Shares which may be awarded to a selected participant under the 2015 Share Award Scheme in any tw elve (12)-month period shall not exceed 1% of the issued S hare capital from time to time. As disclosed above, the 2015 Share Award Scheme was terminated on 21 January 2025, and thus no new award Shares could be granted thereunder, and the above limitation on the number of grants was no longer applicable after the termination. For details of the 2015 Share Award Scheme, please refer to the announcement of the Company dated 18 December 2015.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 40 2025 Share Award Scheme The Company adopted a new share award scheme on 21 January 2025 (the “2025 Share Award Scheme”) to provide incentives and reward the contributions of key employees, directors and external professional consultants of the Group. The 2025 Share Award Scheme s hall be valid and effective for a period of 10 years commencing from the adoption date. The remaining life of the 2025 Share Award Scheme as at the date of this announcement is approximately 8 years and 5 months. The Board may, from time to time, in its absolute discretion select the participants, including (i) employees (whether full -time or part -time and including any executive directors), (ii) any non -executive directors (including independe nt non-executive directors) of the Group, and (iii) any external professional consultant who provides strategic planning or guidance to any member of the Group in various areas of business or business development, after taking into account such factors as it deems appropriate and grant such number of award Shares to any selected participant. The Company may cause to be paid to the trust (from which award Shares may be granted to selected participants) cash from the Group’s internal resources for the purchase of award Shares on the market by the trustee, and/or instruct the trustee to accept th e transfer of Shares from any Shareholders or any designated party of the Company. Once purchased or transferred, the Shares are to be held by the trustee for the benefit of the selected participants and subject to the terms and conditions of the scheme. T he 2025 Share Award Scheme will be funded solely by existing Shares. No consideration is required to be paid for the acceptance or vesting of the award Shares. The terms of the 2025 Share Award Scheme do not specify (i) any period for an award to be vested; (ii) any amount required to be paid on acceptance of an award nor the payment period; and (iii) any basis of determining the purchase price (if any) of award Shares. A selected participant shall be entitled to receive the award Shares held by the trustee appointed by the Company for the purpose of the 2025 Share Award Scheme in accordance with the vesting schedule upon satisfaction of the vesting criteria and conditions specified by the Board in the offer of the grant of the relevant award Shares. The Board shall not make any further award of award Shares which will result in the number of Shares awarded by the Board under the 2025 Share Award Scheme exceeding 5% of the total number of Shares in issue (excluding treasury Shares) as at the date of adoption of the scheme (i.e. 179,301,213 Shares). For the avoidance of doubt, the 5% limit provided above shall exclude any award Shares that have lapsed. The maximum number of Shares which may be awarded to a selected participant under the 2025 Share Award Scheme in any twelve (12)-month period shall not exceed 1% of the total number of Shares in issue (excluding treasury Shares). For details of the 2025 Share Award Scheme, please refer to the announcement of the Company dated 24 January 2025. The number of award Shares available for grant under the 2015 Share Award Scheme at the beginning and the end of the Reporting Period was nil as the 2015 Share Award Scheme was terminated in January 2025, whereas the number of award Shares available for grant under the 2025 Share Award Scheme at the beginning of the Reporting Period was 166,362,973 and at the end of the Reporting Period was 152,580, 898.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 41 During the Reporting Period, the Company had granted 14,020,060 award Shares pursuant to the 2025 Share Award Scheme, with details of the movements of the outstanding award Shares under the two share award schemes during the Reporting Period as follows: Name or the categories of the grantee Date of grant Number of Award Shares not yet vested as at 31 December 2025 Granted during the Reporting Period Closing price of the Shares immediately before the date of grant Vested during the Reporting Period Lapsed during the Reporting Period Number of Award Shares not yet vested as at 30 June 2026 (HKD) Directors Xu Shao Chun 28/3/2022 37,500 - 16.74 37,500 - - 20/3/2023 50,000 16.30 25,000 - 25,000 2/4/2026 - 2,000,000 8.53 - - 2,000,000 Sub-total 87,500 2,000,000 62,500 - 2,025,000 Lin Bo 28/3/2022 37,500 - 16.74 37,500 - - 20/3/2023 50,000 - 16.30 25,000 - 25,000 8/5/2024 112,500 - 9.21 37,500 - 75,000 16/4/2025 100,000 - 12.30 25,000 - 75,000 2/4/2026 - 150,000 8.53 - - 150,000 Sub-total 300,000 150,000 125,000 - 325,000 Other employees 21/3/2022 1,701,875 - 16.38 1,487,250 214,625 - 28/11/2022 50,000 - 12.52 10,000 40,000 - 31/5/2023 3,348,500 - 10.56 1,522,500 151,750 1,674,250 5/10/2023 95,000 - 8.92 47,500 - 47,500 19/4/2024 6,043,460 - 7.72 1,934,129 158,691 3,950,640 3/6/2024 330,000 - 8.00 10,000 100,000 220,000 16/9/2024 75,000 - 5.70 25,000 - 50,000 17/12/2024 729,729 - 9.03 319,769 - 409,960 7/4/2025 12,403,380 - 13.22 5,197,917 229,942 6,975,521 21/11/2025 434,860 - 14.14 100,673 8,043 326,144 24/6/2026 - 11,870,060 6.20 - - 11,870,060 Sub-total 25,211,804 11,870,060 10,654,738 903,051 25,524,075 Total 25,599,304 14,020,060 10,842,238 903,051 27,874,075 Notes: (1) The vesting period of the award Shares is four (4) years. (2) No consideration is required to be paid for the acceptance or vesting of the award shares. (3) The weighted average fair value of the award Shares granted during the Reporting Period was approximately HK$6.47 per Share. The fair value of the award Shares granted during the Reporting Period was calculated based on the market value of the Shares on the respective grant dates, and expected dividends during the vesting period have been considered in the assessment of the fair value of the award Shares. (4) The weighted average closing price of the Shares was approximately HK$8.57 immediately before the date (i.e. 31 March 2026) of the vesting of the award Shares onto Mr. Xu Shao Chun, Mr. Lin Bo and other employees during the Reporting Period. (5) Performance targets for each grant include the Company’s financial performance indicators and the individual performance indicators of the selected participants. (6) During the Reporting Period, no award Share was cancelled.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 42 During the Reporting Period, the number of Shares that may be issued in respect of awards granted under all share schemes of the Company, including the 2015 Share Award Scheme and the 2025 Share Award Scheme, divided by the weighted average number of Shares of the relevant class in issue (excluding treasury Shares) for the Reporting Period is 0%, as the award Shares granted thus far relate to existing Shares only. Since 1 January 202 3, unless separately approved by the Shareholders in general meeting (with the relevant eligible participant and such eligible participant’s close associates (with the meaning ascribed thereto under the Listing Rules) (or such eligible participant’s associates if such eligible participant is a connected person of the Company) abstaining from voting), no eligible participant shall be granted a share option or award if such grant will result in the total number of Shares issued and to be issued in respect of all share options and awards granted (excluding any lapsed share options and awards) to such eligible participant in the 12 -month period up to and including the date of such grant would in aggregate exceed 1% of the total number of issued Shares. The maximum number of Shares which may be awarded to a Director in any twelve (12) -month period shall not exceed 0.1% of the issued Share capital from time to time. Any award of Shares to a Director in excess of 0.1% of the issued S hare capital is subject to the issue of a circular by the Company and the approval of the Shareholders in advance at a general meeting. The Director, his/her associates and all other core connected persons of the Company must abstain from voting at such general meeting. Equity-linked agreement 2023 subscription of new Shares On 10 December 2023, the Company and Al -Rayyan Holdings LLC (the “Subscriber”) entered into the subscription agreement (the “Subscription Agreement”), pursuant to which the Subscriber subscribed for 154,627,000 new Shares (the “Subscription Shares”) at the price of HK$10.10 per Subscription Share (the “Subscription Price”) under the general mandate granted to the Board at the AGM held on 18 May 2023 (the “Subscription”).
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 43 The Company completed the Subscription on 14 December 2023. The Subscription Price was determined on an arm’s length basis between the Company and the Subscriber with reference to the then prevailing market price of the Shares. The closing price per Share on 8 December 2023 as quoted on the Stock Exchange was HK$10.38, being the trading day preceding the date of signing of the Subscription Agreement. The aggregate nominal value of the Subscription Shares is HK$3,865,675. The Directors considered the reasons for the Subscription were that the Subscription would further support the Company’s in ternational strategy and optimize the capital structure of the Company, and the Subscription was in the interests of the Group and the Shareholders as a whole. The gross proceeds and net proceeds (after deducting all applicable costs and expenses) from the Subscription amounted to approximately HK$1,561,732,700 and approximately HK$1,560,982,700, resp ectively. The net price per Subscription Share was approximately HK$10.095. The intended and actual use of proceeds from the Subscription up to 30 June 2026 were set out as follows: Proceeds from the Subscription HK$’000 Proceeds utilized during the Reporting Period HK$’000 Proceeds utilized up to 30 June 2026 HK$’000 Unutilized funds as at 30 June 2026 HK$’000 Expected timeline for utilizing unutilized funds (Note) Potential capital market transactions (80.0%) 1,248,786 213,768 1,248,786 0 - General operation and working capital (20.0%) 312,197 0 312,197 0 - Note: As of the end of the Reporting Period, all proceeds from the Subscription have been fully utilised. Save as disclosed above, there was no equity-linked agreement being entered into during the Reporting Period or subsisting at the end of the Reporting Period. Directors’ and Chief Executive’s Interests or Short Positions in the Shares, Underlying Shares or Debentures As at 30 June 2026 , the interests and short positions of the Directors and chief executive of the Company in the Shares, underlying S hares and debentures of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the “SFO”)), which would be required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO or which would be required, pursuant to section 352 of the SFO to be entered in the register referred to therein, or which would be required to be notified to the Company and the Stock Exchange pursuant to the “Model Code for Securities Transactions by Directors of Listed Issuers” (the “Model Code”) as set out in Appendix C3 to The Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules"), were as follows:
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 44 Interests in the Shares/ underlying Shares Name of Directors Number of Shares/ underlying Shares Capacity Percentage of total number of issued Shares (where appropriate) (approximate) Xu Shao Chun 682,198,624(L) Interests of controlled corporation (Note 1) 2,025,000(L) Beneficiary of a trust (Note 2) 21,019,555(L) Beneficial owner Aggregate: 705,243,179 19.86% Lin Bo 1,442,298(L) Beneficial owner 325,000(L) Beneficiary of a trust (Note 3) Aggregate: 1,767,298 0.05% Gary Clark Biddle 1,230,000(L) Beneficial owner Aggregate: 1,230,000 0.03% Dong Ming Zhu 280,000(L) Beneficial owner Aggregate: 280,000 0.01% Bo Lian Ming 60,000(L) Beneficial owner Aggregate: 60,000 0.00% Notes: The percentage represents the total number of the Shares interested divided by the total number of issued Shares of 3,549,468 ,771 as at 30 June 2026. (1) Of the 682,198,624 Shares, 386,312,000 Shares were held through Oriental Tao Limited and 295,886,624 Shares were held through Billion Tao Limited. Oriental Tao Limited and Billion Tao Limited are wholly owned by Easy Key Holdings Limited, which is in turn wholly owned by Mr. Xu Shao Chun. Therefore, Mr. Xu Shao Chun is deemed to be interested in those 682,198,624 Shares. (2) The 2,025,000 award Shares granted to Mr. Xu Shao Chun under the 2015 Share Award Scheme and 2025 Share Award Scheme, are held by the trustee, BOCI Trustee (Hong Kong) Limited. Details of the award Shares are set out in the section headed “Share Award Schemes” of this announcement. (3) The 325,000 award Shares granted to Mr. Lin Bo under the 2015 Share Award Scheme and 2025 Share Award Scheme, are held by the trustee, BOCI Trustee (Hong Kong) Limited. Details of the award Shares are set out in the section headed “Share Award Schemes” of this announcement. (4) (L) denotes long position. Save as disclosed above, as at 30 June 2026, none of the Directors and chief executive of the Company had any interests or short positions in the Shares, underlying Shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO), which would be required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO or which would be required, pursuant to section 352 of the SFO to be entered in the register referred to therein, or which would be required to be notified to the Company and the Stock Exchange pursuant to the Model Code. Directors’ Rights to Acquire Shares or Debentures None of the Directors or their respective associates (as defined under the Listing Rules) was granted by the Company, or any of its subsidiaries, any rights or options to acquire Shares or debentures in the Company during the Reporting Period.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 45 Substantial Shareholders’ and Other Persons’ Interests and Short Positions in the Shares, Underlying Shares and Debentures As at 30 June 2026, as far as the Directors were aware, the following persons (other than the Directors and chief executive of the Company) had interests and short positions in the S hares and underlying Shares which would fall to be disclosed to the Company under the provisions of Part XV of the SFO and required to be recorded in the register required to be kept under section 336 of the SFO: Long positions and short positions in Shares/ underlying Shares Name Number of Shares/ underlying Shares Capacity Percentage of total number of issued Shares (where appropriate) (approximate) Easy Key Holdings Limited (Note 1) 682,198,624 (L) Interests of controlled corporation Aggregate: 682,198,624 19.22% Oriental Tao Limited (Note 1) 386,312,000 (L) Beneficial owner Aggregate: 386,312,000 10.88% Billion Tao Limited (Note 1) 295,886,624(L) Beneficial owner Aggregate: 295,886,624 8.33% BlackRock, Inc. (Note 2) 302,049,131(L) 4,023,000(S) Interests of controlled corporation Aggregate: 306,072,131 8.62% JPMorgan Chase & Co.(Note 3) 89,806,004(L) 82,091,044(S) Beneficial owner 88,189,207(L) 33,000(S) Investment Manager 7,576,705(L) Person holding a security interest in the shares 50,051,695(L) Approved Lending Agent Aggregate: 317,747,655 8.95% Notes: The percentage represents the total number of the Shares interested or short positions divided by the total number of issued Shares of 3,549,468,771 as at 30 June 2026. (1) Oriental Tao Limited and Billion Tao Limited are wholly owned by Easy Key Holdings Limited, which is in turn wholly owned by Mr. Xu Shao Chun. (2) According to the disclosure of interests form filed by BlackRock, Inc. on 3 July 2026 regarding the relevant event which took place on 30 June 2026:
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 46 a） BlackRock, Inc. was deemed to be interested in the Shares as follows: Name of controlled corporation Name of controlling person % control Direct interest (Y/N) Number of Shares BlackRock Finance, Inc. BlackRock, Inc. 100 N 302,049,131(L) 4,023,000(S) Trident Merger, LLC BlackRock Finance, Inc. 100 N 322,200(L) BlackRock Investment Management, LLC Trident Merger, LLC 100 N 287,200(L) BlackRock Investment Management, LLC Trident Merger, LLC 100 Y 35,000(L) BlackRock Holdco 2, Inc. BlackRock Finance, Inc. 100 N 301,726,931(L) 4,023,000(S) BlackRock Financial Management, Inc. BlackRock Holdco 2, Inc. 100 N 292,624,931(L) 2,219,000(S) BlackRock Financial Management, Inc. BlackRock Holdco 2, Inc. 100 Y 9,102,000(L) 1,804,000(S) BlackRock Holdco 4, LLC BlackRock Financial Management, Inc. 100 N 93,798,000(L) 2,200,000(S) BlackRock Holdco 6, LLC BlackRock Holdco 4, LLC 90 N 93,798,000(L) 2,200,000(S) BlackRock Delaware Holdings Inc. BlackRock Holdco 6, LLC 100 N 93,798,000(L) 2,200,000(S) BlackRock Institutional Trust Company, National Association BlackRock Delaware Holdings Inc. 100 Y 33,492,000(L) 314,000(S) BlackRock Fund Advisors BlackRock Delaware Holdings Inc. 100 Y 60,306,000(L) 1,886,000(S) BlackRock International Holdings, Inc. BlackRock Financial Management, Inc. 100 N 198,826,931(L) 19,000(S) BR Jersey International Holdings L.P. BlackRock International Holdings, Inc. 86 N 193,402,931(L) 19,000(S) BlackRock Lux Finco S.à r.l. BlackRock HK Holdco Limited 100 N 10,590,646(L) BlackRock Japan Holdings GK BlackRock Lux Finco S.à r.l. 100 N 10,590,646(L) BlackRock Japan Co., Ltd. BlackRock Japan Holdings GK 100 Y 10,590,646(L) BlackRock Holdco 3, LLC BR Jersey International Holdings L.P. 100 N 176,387,134(L) 19,000(S) BlackRock Canada Holdings ULC BlackRock International Holdings, Inc. 100 N 5,424,000(L) BlackRock Asset Management Canada Limited BlackRock Canada Holdings ULC 100 Y 5,424,000(L) BlackRock Australia Holdco Pty. Ltd. BR Jersey International Holdings L.P. 100 N 976,400(L) BlackRock Investment Management (Australia) Limited BlackRock Australia Holdco Pty. Ltd. 100 Y 976,400(L) BlackRock (Singapore) Holdco Pte. Ltd. BR Jersey International Holdings L.P. 100 N 16,039,397(L) BlackRock HK Holdco Limited BlackRock (Singapore) Holdco Pte. Ltd. 100 N 15,116,680(L) BlackRock Asset Management North Asia Limited BlackRock HK Holdco Limited 100 Y 4,526,034(L) BlackRock Cayman 1 LP BlackRock Holdco 3, LLC 100 N 176,387,134(L) 19,000(S)
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 47 Name of controlled corporation Name of controlling person % control Direct interest (Y/N) Number of Shares BlackRock Cayman West Bay Finco Limited BlackRock Cayman 1 LP 100 N 176,387,134(L) 19,000(S) BlackRock Cayman West Bay IV Limited BlackRock Cayman West Bay Finco Limited 100 N 176,387,134(L) 19,000(S) BlackRock Group Limited BlackRock Cayman West Bay IV Limited 90 N 176,387,134(L) 19,000(S) BlackRock Finance Europe Limited BlackRock Group Limited 100 N 88,566,362(L) BlackRock (Netherlands) B.V. BlackRock Finance Europe Limited 100 Y 11,717,349(L) BlackRock International Limited BlackRock Group Limited 100 N 10,225,426(L) BlackRock Group Limited-Luxembourg Branch BlackRock Group Limited 100 N 77,595,346(L) 19,000(S) BlackRock Luxembourg Holdco S.à r.l. BlackRock Group Limited- Luxembourg Branch 100 N 77,595,346(L) 19,000(S) BlackRock Investment Management Ireland Holdings Unlimited Company BlackRock Luxembourg Holdco S.à r.l. 100 N 75,419,346(L) BlackRock Asset Management Ireland Limited BlackRock Investment Management Ireland Holdings Unlimited Company 100 Y 75,419,346(L) BLACKROCK (Luxembourg) S.A. BlackRock Luxembourg Holdco S.à r.l. 100 Y 2,137,000(L) 19,000(S) BlackRock Investment Management (UK) Limited BlackRock Finance Europe Limited 100 N 66,648,639(L) BlackRock Investment Management (UK) Limited BlackRock Finance Europe Limited 100 Y 10,200,374(L) BlackRock Fund Managers Limited BlackRock Investment Management (UK) Limited 100 Y 66,648,639(L) BlackRock Life Limited BlackRock International Limited 100 Y 10,225,426(L) BlackRock (Singapore) Limited BlackRock (Singapore) Holdco Pte. Ltd. 100 Y 922,717(L) BlackRock UK Holdco Limited BlackRock Luxembourg Holdco S.à r.l. 100 N 39,000(L) BlackRock Asset Management Schweiz AG BlackRock UK Holdco Limited 100 Y 39,000(L) EG Holdings Blocker, LLC BlackRock Investment Management, LLC 100 N 287,200(L) Amethyst Intermediate, LLC BlackRock Investment Management, LLC 100 N 287,200(L) Aperio Holdings, LLC Amethyst Intermediate, LLC 60 N 287,200(L) Aperio Holdings, LLC EG Holdings Blocker, LLC 40 N 287,200(L) Aperio Group, LLC Aperio Holdings, LLC 100 Y 287,200(L) and b) details of BlackRock, Inc.’s derivatives interests are as follows: • Unlisted derivatives – Cash settled: 11,774,000 (L) and 4,023,000 (S)
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 48 (3) According to the disclosure of interests form filed by JPMorgan Chase & Co. on 15 June 2026 regarding the relevant event which took place on 10 June 2026: a） JPMorgan Chase & Co. was deemed to be interested in the Shares as follows: Name of controlled corporation Name of controlling person % control Direct interest (Y/N) Number of Shares JPMorgan Asset Management (China) Company Limited JPMorgan Asset Management Holdings Inc. 100 Y 3,714,000(L) 0(S) JPMorgan Asset Management (Taiwan) Limited JPMorgan Asset Management (Asia) Inc. 100 Y 1,562,000(L) 0(S) J.P. Morgan Securities LLC J.P. Morgan Broker-Dealer Holdings Inc. 100 Y 5,203,318(L) 4,561,025(S) J.P. Morgan Investment Management Inc. JPMorgan Asset Management Holdings Inc. 100 Y 912,979(L) 0(S) JPMorgan Chase Bank, National Association JPMorgan Chase & Co. 100 Y 50,580,923(L) 0(S) J.P. Morgan Alternative Asset Management, Inc. JPMorgan Asset Management Holdings Inc. 100 Y 0(L) 33,000(S) JPMorgan Asset Management (Asia Pacific) Limited JPMorgan Asset Management (Asia) Inc. 100 Y 81,471,000(L) 0(S) J.P. MORGAN SECURITIES PLC J.P. MORGAN CAPITAL HOLDINGS LIMITED 100 Y 92,179,391(L) 77,530,019(S) JPMorgan Asset Management Holdings Inc. JPMorgan Chase Holdings LLC 100 N 87,659,979(L) 33,000(S) JPMorgan Chase Holdings LLC JPMorgan Chase & Co. 100 N 92,863,297(L) 4,594,025(S) JPMorgan Asset Management (Asia) Inc. JPMorgan Asset Management Holdings Inc. 100 N 83,033,000(L) 0(S) J.P. Morgan Broker-Dealer Holdings Inc. JPMorgan Chase Holdings LLC 100 N 5,203,318(L) 4,561,025(S) J.P. MORGAN CAPITAL HOLDINGS LIMITED J.P. Morgan International Finance Limited 100 N 92,179,391(L) 77,530,019(S) J.P. Morgan International Finance Limited JPMorgan Chase Bank, National Association 100 N 92,179,391(L) 77,530,019(S) JPMorgan Chase Bank, National Association JPMorgan Chase & Co. 100 N 92,179,391(L) 77,530,019(S) and b) details of JPMorgan Chase & Co.’s derivatives interests are as follows: • Listed derivatives–physically settled: 7,112,000 (L) and 4,452,000 (S) • Listed derivatives–cash-settled: 416,000 (S) • Unlisted derivatives–physically settled: 824,476 (L) and 1,689,492 (S) • Unlisted derivatives–cash-settled: 20,101,041 (L) and 51,971,010 (S) (4) (L) denotes long position and (S) denotes short position. Save as disclosed above, as at 30 June 2026, the Directors were not aware of any other person (other than the Directors and chief executive of the Company) who had an interest and short position in the Shares and underlying Shares as recorded in the register required to be kept under section 336 of the SFO.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 49 Purchase, Sale or Redemption of Shares Redemption of Shares During the Reporting Period, the Company had repurchased the following Shares on the Stock Exchange: Trading day Number of Shares repurchased Highest Price Paid Lowest Price Paid Aggregate Price Paid (HK$) (HK$) (HK$) 04/02/2026 1,000,000 11.10 11.05 11,059,730.00 06/02/2026 500,000 10.87 10.85 5,432,460.00 20/03/2026 1,000,000 9.70 9.70 9,700,000.00 24/03/2026 1,000,000 9.00 9.00 9,000,000.00 26/03/2026 1,000,000 9.00 9.00 9,000,000.00 27/03/2026 3,000,000 8.60 8.56 25,791,630.00 30/03/2026 2,000,000 8.57 8.45 17,008,790.00 31/03/2026 3,000,000 8.55 8.47 25,562,810.00 01/04/2026 1,000,000 8.57 8.51 8,558,230.00 02/04/2026 1,000,000 8.30 8.27 8,291,250.00 13/04/2026 1,000,000 8.00 7.96 7,982,490.00 23/04/2026 1,000,000 8.90 8.88 8,898,470.00 24/04/2026 1,000,000 8.37 8.35 8,363,580.00 28/04/2026 1,000,000 8.30 8.30 8,300,000.00 21/05/2026 1,492,000 7.59 7.55 11,304,600.00 27/05/2026 2,000,000 7.50 7.45 14,967,060.00 28/05/2026 2,000,000 6.99 6.95 13,931,830.00 04/06/2026 1,000,000 7.67 7.66 7,668,090.00 08/06/2026 1,000,000 7.50 7.48 7,491,550.00 10/06/2026 1,000,000 7.20 7.20 7,200,000.00 11/06/2026 2,000,000 7.40 7.34 14,773,600.00 12/06/2026 1,156,000 7.15 7.00 8,241,870.00 15/06/2026 1,000,000 6.90 6.89 6,898,450.00 16/06/2026 1,000,000 6.70 6.70 6,700,000.00 17/06/2026 306,000 6.55 6.55 2,004,300.00 18/06/2026 238,000 6.45 6.45 1,535,100.00 22/06/2026 1,000,000 6.30 6.30 6,300,000.00 24/06/2026 830,000 6.12 6.12 5,079,600.00 25/06/2026 400,000 5.92 5.91 2,366,760.00 TOTAL 34,922,000 279,412,250.00 Those 34,922,000 Shares repurchased were cancelled on 24 July 2026. Save as disclosed above, neither the Company, nor any of its subsidiaries, had repurchased, sold or redeemed any of its listed securities.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 50 Material Acquisitions and Disposals Of Subsidiaries, Significant Investments Held a nd Future Plans for Material Investments or Capital Assets Acquisitions Save as otherwise disclosed in this announcement , in particular, the disclosure in relation to the Group’s investment properties operating business, (i) during the Reporting Period, the Group had not made any other significant investment, nor material acquisitions or disposals of subsidiaries, associate s and joint ventures; and (ii) as at 30 June 2026, the Group did not hold any other significant investments with a value that accounted for more than 5% of the Group’s total assets as at 30 June 2026; nor had future plans for material investments or capital assets acquisitions. Change of Information of Directors During the Reporting Period, there was no information relating to changes of Directors required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules. Corporate Governance The Company had complied with all the code provisions of the Corporate Governance Code (the " Code") (applicable to the Reporting Period) as set out in Appendix C1 to the Listing Rules throughout the Reporting Period, except for the deviation in respect of the roles of chairman and chief executive officer under code provision C.2.1 of the Code. During the Reporting Period, Mr. Xu Shao Chun assumed the roles of both the Chairman and the chief executive officer of the Company. The Board considers that Mr. Xu Shao Chun, as one of the main founders of the Company, has abundant knowledge of the information t echnology industry and possesses a unique strategic perspective. The Board believes that he can lead the Company to formulate effective strategies and react promptly to market changes. His continuous service in both roles is beneficial to the stable and healthy development of the Company. Nevertheless, the Board will review from time to time and make appropriate changes when necessary in order to enhance the level of corporate governance of the Company. The Board is always committed to improving its level of corporate governance. Besides establishing a series of management systems, the Company also, from time to time, arranges trainings for Directors, senior management, and related employees in relation to duties of the Directors, continuing professional development, and other aspects of compliance wit h the Listing Rules as well as other relevant laws and regulations, so that the Directors and the employees of the Company will always be equipped with the necessary knowledge and skills to perform their duties in a better way. The Company will continue to comply with the Listing Rules and other relevant laws and regulations as amended from time to time; further enhance its level of corporate governance; improve and enhance its internal control in respect of disclosure of require d information; and enhance its communication with its investors and other stakeholders. Code of Conduct Regarding Directors' Securities Transactions The Company has adopted a code of conduct regarding Directors’ securities transactions on terms no less exacting than the required standard set out in the Model Code. Having made specific enquiry to each of the Directors, all the Directors confirmed that they had complied with such code of conduct throughout the Reporting Period.
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KINGDEE INTERNATIONAL SOFTWARE GROUP COMPANY LIMITED 51 Audit Committee The audit committee of the Company has reviewed with the management the accounting principles and practices adopted by the Group and discussed auditing, internal controls and financial reporting matters. The audit committee has also reviewed the Group’s unaudited consolidated results for the Reporting Period and this announcement. The audit committee was of the opinion that the preparation of such results complied with the applicable accounting standards and requirements and that adequate disclosures were made. Interim Dividend The Board did not declare an interim dividend for the Reporting Period (six months ended 30 June 2025: nil). Appreciation On behalf of the Board, I would like to express our sincere thanks to all our management and staff for their dedication during the Reporting Period. Also, I would like to thank our Shareholders for their continuous support to the Group. By order of the Board Kingdee International Software Group Company Limited Chairman Xu Shao Chun Shenzhen, the People’s Republic of China 11 August 2026 As at the date of this announcement , the Board comprises Mr. Xu Shao Chun (Chairman of the Board and Chief Executive Officer) and Mr. Lin Bo (Chief Financial Officer) as executive Directors; Ms. Dong Ming Zhu and Mr. Gary Clark Biddle as non -executive Directors; and Mr. Zhou Jun Xiang, Ms. Katherine Rong Xin and Mr. Bo Lian Ming, as independent non-executive Directors. This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.