From "Product Implementation" to "Value Recognition", XUANWU CLOUD AI+SaaS Will Enter a Strategic Fulfillment Period

In 2025, the AI industry will usher in a critical turning point from "technology demonstration" to "value creation," with the capital market's perception of AI shifting from "model frenzy" to "application supremacy." A number of AI+SaaS companies deeply engaged in vertical fields are quietly standing at the forefront.

Recently, the mid-term performance report for 2025 released by the intelligent CRM service provider XUANWU CLOUD (02392) also demonstrates how AI+SaaS can deeply empower vertical industries. The interim report shows that XUANWU CLOUD not only achieved an increase in gross profit margin during the reporting period but also returned to positive operating cash flow, indicating a more robust operation. Meanwhile, the company continues to innovate in the AI+fast-moving consumer goods vertical field, launching SKU supermodels for the beverage and liquor industries, anti-cheating detection models for the milk powder industry, and numerous AI standard products. This has led to a significant increase in AI-related contracts in the first half of the year, which also means that XUANWU CLOUD's AI "engine" power is gradually strengthening.

Continuous Optimization of Business Structure, Strategic Focus Achieves Results

XUANWU CLOUD's mid-term performance for 2025 shows that the company achieved total revenue of 410 million yuan (RMB, the same below). Among them, the SaaS segment, which the company continues to focus on, performed outstandingly, achieving revenue of 240 million yuan, accounting for 59.6% of total revenue. The business revenue structure continues to optimize, reflecting the effectiveness of the company's strategic focus.

In terms of profitability, through deepening the integration of AI and SaaS business, the gross profit margin of this segment steadily increased to 26.5%, effectively driving up the overall gross profit margin level of the company. The overall gross profit margin during the period reached 18.2%, an increase of 2.6 percentage points year-on-year, reflecting a comprehensive improvement in the company's operational quality. Additionally, under prudent financial strategies and strict cash flow management, XUANWU CLOUD's operating cash flow returned to positive, further demonstrating the company's excellent working capital management capabilities and healthy business status.

During the period, the company served a total of 2,351 clients, covering four major industries: finance, fast-moving consumer goods, government and enterprise, and TMT. The revenue from core clients accounted for 95.0%, while the total ARPU (Average Revenue Per User) for core clients reached 1.3 million yuan, with the ARPU for core clients in the SaaS segment reaching 1.1 million yuan, proving XUANWU CLOUD's strong customer stickiness and value enhancement capabilities.

Deep Integration of AI Technology Drives High-Quality Growth of SaaS Business

According to Zhitong Finance APP, since the beginning of this year, breakthroughs in large model technologies represented by DeepSeek have significantly boosted expectations for the large-scale implementation of AI. Lower computing power requirements and continuously enhanced reasoning capabilities are accelerating the deep integration of AI large models into the entire operational chain of enterprises, becoming a new engine driving quality and efficiency improvements in the real economy.

In this process, the SaaS industry is widely regarded as an important battlefield for the implementation of AI applications. Minsheng Securities analysis points out that publicly available data is mainly used to train foundational models, determining the "lower limit" of AI applications, while non-public, high-quality private data is key to building differentiated competitive advantages and enhancing the "upper limit" of AI applications. SaaS platforms inherently possess the ability to aggregate, govern, and sediment multi-dimensional customer data, and the massive, authentic, high-value industry data they accumulate will become the core barrier and decisive factor in future AI application competition XUANWU CLOUD was one of the first to recognize this trend, laying out its self-developed AI technology since 2016 and continuously integrating cutting-edge technologies such as large models and AI agents. The company focuses on the implementation of vertical business scenarios and has successively launched AI agent products such as "Market Survey Assistant" and "Smart Xiao Xuan" in the consumer goods sector. With advantages in industry data and customer insights, AI-related contracts saw significant growth in the first half of the year, and terminal data products received multiple repurchases from customers, fully validating product competitiveness and market willingness to pay.

Currently, XUANWU CLOUD's investment in the AI field has entered a harvest period. Based on its self-developed Xuantao large model (focused on the consumer goods industry) and open-source large models like DeepSeek, the company continuously explores terminal business scenario demands and launches multiple industry innovation applications. For example, the SKU super model aimed at the beverage and liquor industries, as well as the industry's first "AI Rephotograph Detective" in the milk powder sector. These products directly address industry pain points and demonstrate the capability of deep integration between AI technology and business scenarios.

Significant progress has also been made in the construction of AI standard products, with new features such as terminal display vacancy detection and layered detection, increasing the total number of standard products to 12, marking the evolution of AI capabilities from customized projects to reusable standard products, laying the foundation for future scalable expansion. In terms of AI agents, the company has developed multiple practical agents based on the aPaaS platform. Among them, the business assistant "Smart Xiao Xuan" launched by Smart U Customer has successfully landed at customer sites, showcasing the broad application potential of AI agents in actual business.

Zhitong Finance APP noted that during the period, XUANWU CLOUD's "Three Clouds" SaaS product matrix, consisting of marketing cloud, sales cloud, and customer service cloud, achieved intelligent empowerment of the entire customer marketing process through deep integration of AI technology.

As the main sector serving clients in finance, government, and enterprise industries, the marketing cloud's star product ICC (Integrated Communication Middle Platform) maintained a project winning rate of over 90%, with 14 new adaptations for Xinchuang, and completed adaptations for components such as Jiyan and iPush to the HarmonyOS, laying the foundation for opening up the domestic substitution market.

The sales cloud, as the company's second growth curve, continued to promote the "consultation-driven + standard products + advanced aPaaS platform" solution model during the reporting period. Its core product "Smart 100" enhanced existing product functions and added plug-and-play configuration components such as "Super Form" and "Survey Questionnaire." This sector focuses on the durable consumer industry, with Smart U Customer undergoing a comprehensive version upgrade based on Huawei's Ascend AI ecosystem and DeepSeek large model, achieving "second-level response" for key scenarios such as customer profiling analysis and opportunity forecasting, and releasing multilingual versions to support global marketing for enterprises.

During the reporting period, the customer service cloud further increased its market share in post-loan management SaaS business, with the number of seats growing by 19.9% year-on-year. Zhitong Finance APP also noted that the customer service cloud integrated open-source large models like DeepSeek, successfully launching a dialogue speech configuration robot and achieving customer landing applications. This product can help customers intelligently transform the dialogue configuration process, significantly reducing related workloads by 90% and greatly improving overall operational efficiency. It is evident that as the integration of AI and business scenarios continues to deepen, the competitiveness of the company's "Three Clouds" products continues to enhance

Dual Drive at Home and Abroad, Strategic Cooperation Expands Boundaries

Affected by adjustments in regulatory policies in the telecommunications industry, the market environment for the CRM PaaS and some CRM SaaS services that XUANWU CLOUD operates in has changed somewhat this year. Against this backdrop, XUANWU CLOUD is actively responding by building an ecological cooperation system that radiates both domestically and internationally, continuously exploring new growth spaces.

During the reporting period, the company's overseas communication business performed particularly well, with overseas SMS business volume in the first half of the year exceeding the total scale of last year, achieving a year-on-year growth of over 150%. This achievement is attributed to the company's forward-looking layout in international communication resources—currently, it has established deep cooperation with the international companies of the three major domestic operators, as well as leading local operators in Southeast Asia, East Asia, and other regions, laying a solid foundation for localized operations of overseas communication businesses.

In terms of domestic ecological construction, XUANWU CLOUD has reached a strategic cooperation agreement with Tencent Cloud, and both parties will collaborate in areas such as AI products and services, cloud communication, and smart retail. At the same time, the company has partnered with Huawei Ascend to jointly upgrade and iterate product versions, enhancing technical competitiveness. Additionally, XUANWU CLOUD is actively expanding its data value monetization business, with its data products launched on the Guangzhou and Shenzhen data exchanges, expanding new sales channels and exploring opportunities for data assetization.

These ecological layouts not only help enhance the company's market visibility but also provide opportunities to access more technology platforms and market channels, supporting long-term sustainable development.

Summary

A review of XUANWU CLOUD's interim report shows that the company has successfully transformed into a SaaS provider driven by technologies such as AI, with a deep focus on vertical fields. In the current Hong Kong stock technology sector, companies like XUANWU CLOUD, which possess both AI technological foundation and broad industry implementation, are significantly scarce.

In the view of the Zhitong Finance APP, the company is at a critical turning point for a new round of growth. As the national "Artificial Intelligence +" initiative continues to advance, the integration of technologies such as large models and AI agents with the real economy is deepening. With its forward-looking strategic layout, XUANWU CLOUD is expected to enter a stage of substantial gains.

Looking ahead, the management of XUANWU CLOUD stated at the earnings release that the company will reduce delivery costs by promoting product standardization to continuously enhance profitability. The overall gross profit margin for the year is expected to rise to around 20%, and the company is confident in maintaining positive operating cash flow to support the achievement of profit targets. Meanwhile, the overseas communication business is expected to continue its strong momentum, with an annual growth rate likely to exceed 100%, gradually expanding into more new regions.

As the AI product matrix continues to improve, overseas localization capabilities strengthen, and cooperation with ecological partners such as Tencent Cloud deepens, XUANWU CLOUD is solidifying the foundation for high-quality growth amid cyclical fluctuations. For investors, short-term performance fluctuations or valuation adjustments caused by market sentiment may actually present good opportunities for long-term positioning