Confidence is more valuable than gold! With a 583% increase in net profit driven by data intelligence, and a bold HKD 140 million buyback to reinforce long-term value.

Ask AI · How can Dmall Intelligent’s AI strategy drive a surge in profits?

At a crucial inflection point where AI is reshaping the retail industry, Dmall Intelligent has not only delivered an extremely high-value answer, but also sent a strong positive signal to the market through continued share buybacks. Amid this profound shift, confidence is even more precious than gold.

On March 18, Dmall Intelligent officially released its 2025 annual financial report. During the period, the company achieved double-digit growth in both revenue and profit; adjusted profit exceeded 200 million yuan, up 582.6% year over year. Meanwhile, the financial report disclosed that during the reporting period and after it, the company continued to repurchase shares, totaling nearly 20 million shares, spending more than HKD 140 million.

Through the phenomenon of “continued buybacks,” we see Dmall Intelligent growing into a leading “retail AI agent” that is empowering the industry through deep AI strategy, opening the ceiling for growth with international capabilities, and winning market confidence with solid fundamentals.

The performance inflection point is established; buyback confidence comes from fundamental changes

Confidence in the company’s long-term value must be built on solid performance fundamentals. 2025 is a pivotal year for Dmall Intelligent’s strategic transformation. The company not only achieved a historic breakthrough from “losses” to “profit,” but also accelerated across the board in technology, products, and the market.

The financial report shows that Dmall Intelligent’s full-year revenue was 2.23 billion yuan, up 19.8%; gross profit was 850 million yuan, up 13.9%, and the company turned from loss to profit on a year-over-year basis. Even more worth attention is that if we exclude non-operating factors such as fair value changes of convertible preferred shares, adjusted profit from continuing operations reached 203 million yuan, surging 582.6% year over year. The core business’s profitability has improved significantly.

This set of financial results indicates that Dmall Intelligent’s business model is already running smoothly and that economies of scale are gradually taking effect. In a recent research report, CICC International Securities noted that Dmall Intelligent’s “transform-and-upgrade has shown results, and the buybacks demonstrate confidence,” and expects the company’s net profit to maintain rapid growth in 2025–2027. The rationale behind institutions’ bullish view comes precisely from fundamental changes at the company level. In 2025, Dmall Intelligent served 593 customers, covering 11 countries and regions globally. Its customer net revenue retention rate reached 108%, maintaining an exceptionally high level above 100% across multiple consecutive cycles. At the same time, the company’s expense structure, including sales and administrative expenses, continued to be optimized—showing that while it is growing steadily, it has already established sustainable profitability.

When a company has just emerged from losses and its core metrics are improving across the board, management’s choice to carry out large-scale buybacks sends a clear and direct message: the stock price has not fully reflected intrinsic value, and we are confident—and have the ability—to prove it with real money.

AI strategy is fully implemented; from “tool enablement” to “value co-creation”

If the performance inflection point is the “backing” for the buyback, then the comprehensive breakthrough in AI strategy is the “core” of Dmall Intelligent’s long-term value. In 2025, Dmall Intelligent officially completed a restructuring of its revenue model. Its business was clearly divided into two major segments: AI retail core solutions and AI retail value-added services. AI has evolved from an auxiliary tool into the core engine driving growth.

The financial report shows that AI retail core solutions generated full-year revenue of 1.063 billion yuan, up 21.7%, while the gross margin was maintained at a high level of 67.1%. AI retail value-added services revenue was 1.164 billion yuan, up 18.1%, and the gross margin increased to 11.7%. Notably, AI-related businesses have started to independently contribute revenue. During the reporting period, they recorded 64.4 million yuan, becoming a new growth driver.

At the annual partner conference, Dmall Intelligent officially launched Dmall OS 3.X, and the top ten AI application matrix made its debut in complete form for the first time. AI products, AI fresh calculation, AI pricing, AI dispatching, AI loss prevention… Each scenario is not just a concept packaging; it genuinely addresses the retail industry’s long-standing pain points. For example, in AI fresh calculation, targeting high-loss fresh-made goods such as bread, fruit cuts, and prepared foods, the company uses time series models and multi-variable forecasting to achieve hour-level precise estimates of processing volumes, reducing product shrinkage by about 30% and achieving a forecasting accuracy rate of over 90%. In another example, in AI dispatching, through deep learning algorithms, it automatically matches transportation demand with available transportation capacity—improving route-line scheduling efficiency by 80% and reducing the number of trips by 15%.

Behind these figures is Dmall Intelligent’s business model shift from “selling software” to “selling outcomes.” The company has clearly stated that it plans to make a strategic leap from being a “provider of retail digital solutions” to a “provider of retail AI agents.” The company plans to fully advance AI-native R&D in 2026, building a “retail AI agent matrix” covering goods, stores, the supply chain, and headquarters, and exploring a new business model of “paying based on outcomes,” to co-create value with customers.

International expansion continues to break through, opening up a second growth curve

When AI becomes a deep reflection of the company’s value, internationalization extends that value into broader reach. In 2025, Dmall Intelligent’s internationalization strategy also achieved substantive breakthroughs. During the period, revenue from overseas markets reached 192 million yuan, up 21.7%, and remained stable at 8.6% of total revenue. For a long time, the company has adhered to a “China + overseas” dual-wheel strategy. Through deep collaboration with benchmark customers and focused cultivation of regional markets, it has gradually built global delivery capabilities. The company’s customer mix, project depth, and regional coverage all show high-quality growth characteristics.

The most landmark event is that Dmall Intelligent beat international software giants SAP and Oracle and successfully signed with Cold Storage, a Singapore retail brand with a 100-year heritage. Founded in 1903, this retail benchmark ultimately chose Dmall as its digitalization partner, jointly building an end-to-end digital project covering the full chain of “headquarters—OS operation system—stores—AI decision-making.” The significance of this case lies in the fact that it proves that China’s retail digitalization solutions already have the capability to compete on the same stage as international top-tier vendors, and it also validates the feasibility of Dmall Intelligent’s “global breadth, China depth” strategy.

At the same time, Dmall Intelligent’s cooperation with long-time customers such as DFI Retail Group and the SM Group has continued to deepen. The POS system has been fully deployed across more than 100 large stores under SM Markets. The WMS system successfully completed multi-brand deployments across Southeast Asia. The TMS system achieved intelligent transportation dispatching overseas for the first time. These benchmark projects not only bring continuous revenue contributions, but also become “lighthouses” for Dmall’s expansion into regional markets. In the Philippines, Indonesia, Malaysia, Brunei, and other places, Dmall Intelligent is growing from a “new entrant” into a “deep value enabler.”

Even more worth looking forward to is that Dmall Intelligent has already turned its attention to blank markets such as the Middle East. With benchmark cases and delivery capabilities accumulated across the Asia-Pacific region, it is expected that in the coming years it can move from “point breakthroughs” to “regional deep cultivation.” Overseas business is not only a new growth engine, but will also hedge cyclical fluctuations in a single market, enhancing the company’s overall resilience to risks and supporting the ceiling of its valuation.

Conclusion: Behind the buybacks is a steadfast conviction in the future of “retail AI agents”

2025 is a pivotal year for Dmall Intelligent to go from “breaking through” to “taking off.” Continued buybacks are by no means an isolated event. They are the inevitable outcome of the intersection of three major logics: the performance inflection point, AI breakthroughs, and progress in internationalization.

From a financial perspective, the company achieved full-year profitability for the first time, with a significant improvement in operating quality. Strategically, the launch of Dmall OS 3.X and the deployment of top ten AI applications clearly chart a path toward realizing the “retail AI agent” vision. Market-wise, the vast opportunities in Asia-Pacific and even the Middle East await Dmall Intelligent to craft new growth stories with “China experience.”

Not long ago, Dmall Intelligent was also included in the FTSE Global Small Cap Index series and the FTSE All-World Index. This marks, after being added to the MSCI China Small Cap Index in February, the company’s second entry into a major international index lineup. This will help enhance the company’s global visibility and attract more diverse international investors.

As the company’s management has stated, Dmall Intelligent is committed to advancing retail digitalization from the “tool-assisted era” into the “agent-driven decision-making era.” In this process, the company’s ongoing buybacks not only confirm current value but also invest in future potential. When a company can both deliver growth in core business and maintain strategic focus on frontier areas, its long-term value naturally deserves market reevaluation.