Xuan Wu Cloud Announces 2025 Interim Financial Results

The Group continues to focus on AI+SaaS business, with gross profit margin increasing year-over-year

• In the first half of 2025, Xuan Wu Cloud achieved total revenue of RMB 410.9 million, and gross profit margin reached 18.2%, up 2.6 percentage points year-over-year
• The Group served a cumulative total of 2,351 clients during the Reporting Period, and the total revenue contributed from its core clients accounted for 95.0% of the total revenue
• The number of SaaS clients reached 1,558, and the Average Revenue Per User ("ARPU") of SaaS core clients reached RMB1.1 million
• The Group's annual recurring revenue ("ARR") of the Sales Cloud accounts for 62.9% of Sales Cloud revenue, representing a year-over-year increase of 12.4 percentage points compared with the same period last year.
• The Service Cloud delivered exceptional results during the Reporting Period, with revenue growing 71.7% year-over-year to RMB26.6 million

GUANGZHOU, China, Aug. 28, 2025 /PRNewswire/ -- Xuan Wu Cloud Technology Holdings Limited (hereinafter referred to as "Xuan Wu Cloud" or "The Group," stock code: 2392.HK), a leading local intelligent CRM services provider in China, announced its interim results for the six months ended June 30, 2025.

During the Reporting Period, the Group proactively addressed the challenges posed by the market and industry, and by continuously focusing on AI+ SaaS business, the Group steadily improved the gross profit margin of this segment of business, which in turn drove the overall gross profit margin upward. Additionally, based on the prudent and strict financial control adopted by the Board, by implementing measures such as strengthening cash flow management, the Group was able to restore positive operating cash flow in the first half of 2025.

SaaS revenue accounts for nearly 60% of total revenue, driving year-over-year growth in gross profit margin

According to the announcement, Xuan Wu Cloud recorded revenue of RMB 410.9 million in the first half of 2025, of which the SaaS segment achieved RMB245.0 million, accounting for 59.6% of total revenue. This once again demonstrated the Group's proactive implementation of its strategy to focus on SaaS business development.

On this basis, the gross profit margin of the Group's SaaS business reached 26.5% during the Reporting Period, up 3.4 percentage points year-over-year. This improved the overall gross profit margin to 18.2%, with an increase of 2.6 percentage points year-over-year. At the same time, based on a series of measures taken by the Group's board of directors to strengthen cash flow management, the Group achieved positive operating cash flow in the first half of 2025, which also strengthened the Group's business operations in the second half of the year.

On the client side, during the Reporting Period, Xuan Wu Cloud adhered to its mission of helping companies with their digital transformation. Through the CRM SaaS "Three Clouds" (Marketing Cloud, Sales Cloud, and Service Cloud) products, as well as aPaaS and cPaaS platforms, the Group provided services to a total of 2,351 clients across four major industries: finance, FMCG, Government-related enterprises and technology, media and telecom ("TMT"). The total revenue of the Group's core clients accounted for 95.0% of the total revenue, and the ARPU contributed by core clients reached RMB1.3 million. The number of the Group's continuously focused SaaS clients reached 1,558 during the Reporting Period, and the ARPU of SaaS core clients reached RMB1.1 million.

Deepening AI+SaaS application capabilities to build a win-win ecosystem

As a leading domestic provider of intelligent CRM services, Xuan Wu Cloud is closely tracking the trends in the digital economy, continuously reinforcing the Group's leading position in AI capabilities within the industry, and offering clients with high-quality digital and intelligent services through the Group's comprehensive intelligent CRM product matrix.

During the Reporting Period, Xuan Wu Cloud continued to deepen its AI+SaaS product application capabilities. Specifically, Marketing Cloud is a business segment that the Group uses to serve clients in industries such as finance and Government-related enterprises, enabling digital and intelligent upgrades in marketing. During the Reporting Period, Marketing Cloud generated revenue of RMB 189.7 million. In terms of business, while continuously enhancing the capabilities of products and solutions, Marketing Cloud also continued to expand and implement clients in niche segments such as securities, and Government Services and Data Management. Among them, ICC (Integrated Communication Centre), the flagship product of Marketing Cloud, completed the latest protocol adaptation for the direct connection mode of mainstream domestic telecom operators during the Reporting Period, fully upgrading the product's 5G message reach capability. In the meantime, ICC also continued to improve its information technology and innovation ecosystem, with the number of information technology and innovation adaptations increasing to 14, and completed the adaptation of components such as Jiyan and iPush to the HarmonyOS system. This is conducive to further opening up the market for domestic substitution. Through these measures, ICC has maintained a project bid-winning rate of over 90%.

The Sales Cloud represents the Group's business segment focused on the second growth trajectory, dedicated to facilitating the digital and intelligent transformation of the entire marketing chain for consumer goods enterprises through the empowerment of AI and CRM, thereby supporting the enterprises in achieving intelligent growth. During the Reporting Period, Sales Cloud continued to promote the solution model of "consultation-driven solution + standard products + advanced aPaaS platform", striving to optimise client business processes from top to bottom, helping clients better implement digital and intelligent solutions while also enhancing our own product commercial value. The core product of Sales Cloud, Smart Sales 100, strengthened its original product functions and updated its UI to optimise user experience during the Reporting Period. In the meantime, it added new plug-and-play components such as"super forms "and "questionnaires" to meet clients' personalised needs. In addition, Smart U-Client under the Sales Cloud, which focuses on the durable consumer goods industry, underwent a comprehensive version upgrade based on Huawei's Ascend AI ecosystem and DeepSeek large model. In the meantime, Smart U-Client also released multi-language versions to help enterprises improve marketing efficiency and expand their business scope globally.

In terms of AI products, during the Reporting Period, based on Xuan Wu Cloud's self-developed Xuan Tao large model, which is specialised in the consumer goods industry, as well as open-source large models like DeepSeek, the Group continued to explore the needs of consumer goods terminal business scenarios. The Group launched the SKU super model that offers insights into the dynamics of beverage, liquor, and other industry terminal scenarios, as well as the industry's only marketing vertical model for the milk powder industry — the anti-cheating and retouch detection model, known as"AI Retouch Detective". In addition, the Group has added new features such as empty space detection and layered detection for terminal displays to our AI standard products, bringing the total number of standard products to 12. In the exploration of AI agent development, Xuan Wu Cloud has built multiple AI agents based on the aPaaS platform (a low-code platform). These agents serve as"development assistants"for enterprises to develop new business functions internally, and as "market research assistants"to help clients gain insights into market demands at the terminal. Additionally, to meet enterprises' needs for efficiency management of salespeople, the Group can provide a "voice operation assistant" to help enterprises achieve their management goals. Furthermore, the Group's business assistant "Smart Xiaoxuan" created by Smart U-Client has also been successfully implemented for clients.

Based on the above measures, during the reporting period, the Group's sales cloud achieved revenue of RMB 28.6 million, with a significant increase in gross profit margin. At the same time, the Group's annual recurring revenue (ARR) of the Sales Cloud accounts for 62.9% of Sales Cloud revenue, representing a year-over-year increase of 12.4 percentage points compared with the same period last year.

During the Reporting Period, the Service Cloud's market share in post-loan management SaaS business further increased, with a year-on-year increase of 19.9% in the number of seats. In terms of product capabilities, the Service Cloud has evolved from outbound calls to full touchpoints, achieving breakthroughs in new contact methods like post-loan management SMS and flash messages. Additionally, the Service Cloud has integrated open-source large models like DeepSeek, developed a speech configuration robot, and successfully implemented it for clients. This product can help clients reduce 90% of their workload in speech configuration, significantly enhancing their overall work efficiency. Based on this, the Service Cloud achieved revenue of RMB26.6 million during the Reporting Period, representing a year-over-year increase of 71.7%.

While maintaining steady development in the Group's own business, Xuan Wu Cloud was also actively building an ecosystem of domestic resources and channels. During the Reporting Period, the Group's overseas service areas have expanded to include numerous countries and regions in Southeast Asia, Latin America, East Asia, the Middle East, and beyond. The Group has also forged direct resource cooperation with telecommunications operators in South Korea, Thailand and other countries, laying a solid foundation for the localisation of its overseas business operations. Domestically, the Group 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. Furthermore, the Group's data-related products were listed on the Guangzhou and Shenzhen data exchanges during the Reporting Period, thereby further expanding the sales channels for data-related products.

Focusing on standard products and AI innovation, and anchoring the business goal of profitability improvement

Regarding developments in the second half of 2025, Xuan Wu Cloud stated in its announcement that the Group will continue to deepen the development goals of "product standardization, refined management, and business globalization", prioritizing profits and achieving high-quality development.

In terms of core smart CRM products, the Group will enrich standardised components of core products to enhance profit margins, and will focus on improving the standardisation of core products across various business lines. By identifying common requirements in project delivery for different clients, the Group aims to develop more standardised product components. Coupled with standardised delivery processes, this will enable us to continuously optimise delivery cycles, reduce project costs, and increase profit margins. Simultaneously, based on the actual needs of client business scenarios, the Group will continue to enrich its AI standard product matrix, striving to achieve rapid product deployment.

In terms of AI innovation, the Group will strengthen the market expansion and operational efforts for key products such as the SKU super model and"AI Retouch Detective", striving to make them flagship AI products of the Group. While consolidating the technological application in the AI+mass consumption sector, based on the Group's customer resource advantages in the financial industry, the Group will also develop AI product applications for the financial industry in the second half of the year, including intelligent agent development, optimisation and upgrading of intelligent customer service, digital avatars, etc., thereby further deepening its cooperative relationship with clients.

In terms of ecology, given the market changes and challenges faced in the first half of the year, the Group will persist in continuously building its own ecosystems, maintaining closer ties with upstream and downstream partners in the industry chain. In the second half of the year, the Group will continue to strengthen interactions and cooperation with telecom operators, cloud service providers, and business partners, with the aim of achieving a more stable overall development for the Group. Additionally, the Group plans to implement localised operations in some overseas regions, deepen cooperation with resource providers, and further expand client base.

Mr. Chen YongHui, Chairman of Xuan Wu Cloud, expressed that looking ahead to the second half of 2025, we will continue to focus on expanding the SaaS business segment, optimizing product services, and improving organizational management to deepen our operational objectives of enhancing profitability, ultimately achieving sustainable and high-quality development for the Group as a whole.

Financial Results

About Xuan Wu Cloud:

Xuan Wu Cloud Technology Holdings Limited, the largest local intelligent CRM service provider in China(stock code 2392.HK), which was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 8 July, 2022. The Group's domestic operating entity is Xuan Wu Technology, which has established a marketing service system covering 34 provinces and cities across China. Xuan Wu Cloud has aPaaS, cPaaS, AI, and DI platform as technical base, with Marketing Cloud, Sales Cloud, Service Cloud as core SaaS product applications, aiming to provide customers with multi-touch, all-channel, entire business cycle management of intelligent CRM products and services.

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SOURCE Xuan Wu Cloud Technology Holdings Limited