#China #Guangzhou #AI #SaaS #Xuan Wu Cloud

Xuan Wu Cloud's Interim Financial Results for 2025

On August 28, 2025, Xuan Wu Cloud Technology Holdings Limited (stock code 2392.HK), a prominent provider of intelligent customer relationship management (CRM) services in China, shared its interim financial results for the first half of 2025. The company demonstrated significant progress amidst the challenges in the current market and industry landscape, primarily through its commitment to AI-driven Software as a Service (SaaS).

Key Financial Highlights

Xuan Wu Cloud's revenue for the first half of 2025 reached approximately RMB 410.9 million, marking a 36.5% decrease compared to the same period the previous year. However, the company's gross profit margin saw an increase to 18.2%, a rise of 2.6 percentage points year-over-year, thanks to the successful implementation of its AI+SaaS strategies. The SaaS segment generated RMB 245 million in revenue, representing 59.6% of the company’s total income for the period, reinforcing the effectiveness of its strategic focus on this service model.

The annual recurring revenue (ARR) from the Sales Cloud, a key component of their SaaS offerings, accounted for 62.9% of the total Sales Cloud revenue, which reflects a 12.4 percentage point increase from the previous year.

Xuan Wu Cloud's proactive moves to enhance its cash flow management have recently restored a positive operating cash flow, a vital step to strengthening the company’s financial health moving forward.

Client Engagement and Market Reach

During this reporting period, Xuan Wu Cloud successfully engaged with over 2,351 clients across diverse sectors, including finance, fast-moving consumer goods (FMCG), government enterprises, and technology, media, and telecommunications (TMT). Impressively, 95% of the total revenue came from core clients, with the average revenue per user (ARPU) for these clients hitting RMB 1.3 million.

SaaS clients have increased significantly, rising to a total of 1,558, with the ARPU for SaaS core clients standing at RMB 1.1 million. This growth signifies the firm’s effectiveness in capturing and expanding its market share in an increasingly competitive landscape.

Innovations in AI and SaaS

As a leader in providing intelligent CRM services, Xuan Wu Cloud is continuously advancing its products and services to leverage AI within its offerings. During the reporting period, the Marketing Cloud, designed to facilitate digital marketing transformations, generated revenue of RMB 189.7 million. Among its offerings, the flagship product ICC (Integrated Communication Centre) has reported updates that enhance its functionalities, particularly for 5G messaging capabilities.

The Sales Cloud has its sights set on empowering consumer goods businesses by streamlining their marketing processes through AI-enabled solutions. Key enhancements include a revamped user interface and the introduction of new tools like 'super forms' and 'questionnaires.' Furthermore, Smart U-Client, which specializes in durable consumer goods, upgraded its support to include multi-language capabilities to improve global marketing efficacy.

In developing AI products, Xuan Wu Cloud has introduced several innovative features, such as the SKU super model for retail dynamics and the unique 'AI Retouch Detective' tool for the milk powder industry. These developments not only establish the group’s cutting-edge capabilities but also respond adeptly to market needs.

Future Directions

Looking ahead to the latter half of 2025, Xuan Wu Cloud will continue its commitment to enhancing its SaaS offerings while prioritizing profitability and product standardization. The organization intends to enrich its standardized components and streamline delivery processes, which will heighten its operational efficiency and profit margins.

The company plans to enhance its AI products and pursue localized operations in overseas markets while establishing stronger partnerships with telecommunication operators and cloud service providers.

Mr. Chen YongHui, the Chairman of Xuan Wu Cloud, shared an optimistic outlook indicating a steadfast commitment to improving organizational management and operational excellence, reinforcing the company’s mission to drive further advancements in the SaaS sector. This strategic vision aims to establish sustainable growth that aligns with the overarching goals of high-quality development and profitability improvement.