Research Brief | Glodon welcomes 92 institutions including Global Telecom Capital, with net profit expected to increase by 61.77% in 2025. Digital cost cloud revenue accounts for 72%.

March 24, Guangdong Leading Construction Software Co., Ltd. (hereinafter referred to as “Guanglianda”) held an earnings briefing session in the form of an online meeting, hosting 92 institutional investors, including Global Telecom Capital, Sequoia Capital, JPMorgan, and others. The company’s executive management team conducted in-depth exchanges with the institutions on core topics such as the company’s 2025 operating performance, the performance of each business segment, AI technology applications, and future strategic plans. The meeting disclosed that in 2025, the company achieved operating revenue of RMB 6.068 billion, representing a slight year-on-year decline of 2.17%, but net profit attributable to shareholders of listed companies reached RMB 405 million, up sharply by 61.77% year-on-year, with profitability improving significantly.

Basic Information on Investor Activity

Operating Performance in 2025: Revenue slightly down, but net profit up significantly

At the meeting, Feng Jianxiong introduced that in 2025, the external environment was complex and changeable. Although the company’s revenue fell 2.17% year-on-year, the decline narrowed by 2.76 percentage points compared with 2024. Net profit increased sharply by 61.77%. This was mainly attributable to two major initiatives: first, continuously upgrading technology externally and deepening customer operations to build benchmark case studies; second, optimizing internal organizational and operational mechanisms and implementing refined management. Total expenses of the three categories declined 5.63% year-on-year, reducing expenses by RMB 273 million net.

Business Segment Performance: Strong Growth in Construction and Overseas Businesses

Digital Cost Business: Cloud revenue makes up 72%, driven by the new bill of quantities policy

Affected by a decline in investment in the housing construction field, the digital cost business achieved revenue of RMB 4.779 billion, down 4.16% year-on-year, though the decline further narrowed quarter-on-quarter compared with the first three quarters. New signed cloud contracts totaled RMB 3.38 billion, down 1.3% year-on-year; cloud revenue was RMB 3.457 billion, accounting for 72% of revenue from this business. As the new bill of quantities policy is rolled out across 60% of provinces and municipalities nationwide, customers’ demand for tendering quality and cost management and control has increased. The company’s new products such as Qingbiao and the Index Network maintained double-digit growth. At the same time, the company also adapts to demand in emerging sectors such as urban renewal and infrastructure, continuously expanding application scenarios.

Digital Construction Business: Gross margin rises to 58.33%, and the value-upgrade strategy shows results

The digital construction business performed strongly, achieving revenue of RMB 846 million, up 7.58% year-on-year, and gross margin increased dramatically from 35.87% in 2024 by 22.46 percentage points to 58.33%. By focusing on core markets and customers and optimizing product structure (reducing promotion of low-gross-margin products), the company drove growth in some products even against the headwind, and its value proposition of “don’t save money—don’t cut costs” was recognized by customers.

Overseas Business: Revenue up 18.18%, globalization efforts accelerating

Overseas business achieved revenue of RMB 240 million, up 18.18% year-on-year, becoming an important growth engine. The company deepened its layout in Asia and Europe’s core regions; in Asia, the penetration rate of the cost business increased and it entered a new Middle East market. In Europe, MagiCAD product revenue continued to grow steadily. Hong Kong, as a “bridgehead,” made positive progress in piloting and incubating new business.

Financial Indicators: Three expense categories decline significantly, and operational efficiency improves

Liu Jianhua disclosed that in 2025, the company’s operating costs decreased 11.84% year-on-year, mainly due to a decline in hardware and implementation delivery costs resulting from business structure adjustments. Management expenses decreased 12.96% year-on-year, and research and development expenses decreased 5.52% year-on-year, both benefiting from refined management and optimization of personnel costs. In terms of the balance sheet, trading financial assets increased by RMB 200 million (purchasing structured wealth management products), and long-term borrowings increased by RMB 39 million (special-purpose borrowings for stock buybacks).

AI Deployment and Future Strategy: Industrial AI becomes a growth engine

The company proposed an “industrial AI” development philosophy, focusing on three high-value scenarios: integrated design, cost refinement, and refined construction. The company’s AI product capabilities were significantly enhanced. On the technology side, it built a “three-wheeled chariot” support system: developing AI models dedicated to the construction industry (AecGPT, drawing models, spatial models), improving an AI engineering deployment platform, and advancing the “platform + components” architecture upgrade. In the next 2–3 years, AI is expected to become an important engine for the company’s revenue growth.

In 2026, as the starting year of a new three-year strategy cycle, the company will pursue both “staying true and adapting to change.” It will stay committed to its original mission of serving the construction industry, promote the development of industrial AI through deepening focus on the industry, strengthen its global foundation, and drive coordinated growth among digital cost, construction, and design businesses, aiming to become a global leader in digital construction platforms.

Key Points of Interactive Q&A

Q1: What is the boosting effect of the new bill of quantities policy on the digital cost business?

A: Around 60% of provinces and municipalities across the country have implemented the new bill of quantities, bringing new demands such as multi-mode tools, market-oriented reference bases, and higher-quality tendering. The company’s existing products are adapted to the policy, improving renewal rates. New products such as Qingbiao and the Index continue to grow and serve as a driver for cost business stability.

Q2: Effectiveness of AI products and development approach?

A: At the product level, it achieved three-layer evolution: functional upgrades (AI enhancements across the full product suite), process reconfiguration (such as intelligent cost compilation), and native products (site intelligent agents). At the technology level, it builds industry AI models, engineering-oriented platforms, and the “platform + components” architecture. In the next 2–3 years, AI will realize intergenerational value upgrades.

Q3: Thoughts on expanding overseas business?

A: In 2026, it will increase resource investments. In Asia, it will focus on cost and construction businesses; in Europe, it will promote design and construction businesses. Relying on MagiCAD, the EQUA subsidiary, and Hong Kong’s bridgehead, it will accelerate product iteration and localized operations.

Q6: Reasons for the increase in gross margin of digital construction and its sustainability?

A: The increase in gross margin comes from business structure optimization: reducing low-gross-margin hardware businesses, increasing the proportion of standardized products, and lowering costs of secondary development. In 2026, AI applications will further reduce customized development costs, and gross margin is expected to remain at a high level.

List of Participating Institutions (Partial)

(For the complete list, please refer to the attached table to the company announcement)

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Responsible editor: Xiaolang Kuaibao