With the development of artificial intelligence, AI enterprises are gradually evolving from supporters of the SaaS industry into its direct competitors, presenting massive challenges to the software sector.

Recently, a wave of panic selling in software stocks across overseas markets has dealt a heavy blow to the share price of JST (06687.HK). Since its listing, the company’s stock performance had already been weak; under the influence of both internal and external factors, it recently recorded its largest single-day decline since its IPO.

Sell-off Wave Hits Software Industry; Company’s Single-Day Drop Nears 12%

On February 4, 2026, a new automated tool introduced by the AI startup giant Anthropic triggered panic selling of software stocks, marking the largest single-day drop since April of last year in the U.S. market.

As industry performance faltered in overseas markets, the Hong Kong market was not immune. Technology and internet stocks fell across the board, with several software-related equities experiencing sharp declines.

JST, a leading player in the global e-commerce SaaS market, saw its shares plunge by 11.60% on February 4, 2026. This decline represented the largest single-day drop since the company’s listing on October 21, 2025.

NewTimeSpace has noted that analysts are pointing out a shift in market sentiment: the initial belief that AI would "boost growth" has turned into a questioning of whether AI will "completely replace" traditional subscription models. Software companies, once favored for their sticky subscriptions and stable renewals, are now facing a severe trial. AI not only potentially automates workflows and compresses pricing margins but also lowers the barrier to entry for new competitors.

Analysts at J.P. Morgan stated in their latest report that while market participants are concerned about the commercialization of AI or an "AI bubble" on one hand, they simultaneously believe AI will bring about the end of the software industry. Like all disruptive changes, the software sector will have winners and losers, but from an external perspective, it is currently impossible to determine who the winners will be.

On February 5, 2026, JST’s stock showed a slight rebound after the recent continuous decline, rising by more than 4% intraday. It eventually closed at HK$22.00 per share, a daily gain of 0.27%, bringing its cumulative decline since listing to 28.10%.

Revenue Growth Decelerates; Persistent Losses Despite High Gross Margins

Public information shows that JST, founded in 2014, is a Chinese e-commerce SaaS provider. It offers a comprehensive one-stop suite of SaaS products and services, providing core functions such as order management (OMS), warehouse management (WMS), and procurement management. It helps customers upgrade business capabilities, improve performance, and develop cross-platform operations while reducing deployment and operational costs.

As of June 30, 2025, JST served 93,000 SaaS customers. After 11 years of development, the company processed approximately 33 billion e-commerce orders in 2024, equivalent to an average of nearly 100 million orders per day.

According to data from China Insights Consultancy (CIC), based on 2024 revenue related to e-commerce SaaS ERP, the company is China’s largest e-commerce SaaS ERP provider with a 24.4% market share. Based on total 2024 SaaS revenue, it is the largest e-commerce operations SaaS provider in China with an 8.7% market share. Based on 2024 relevant revenue, it also ranks as China’s second-largest e-commerce SaaS provider with a 7.1% market share.

In terms of financial performance, JST’s revenue grew from RMB 523 million in 2022 to RMB 910 million in 2024, representing a compound annual growth rate (CAGR) of 31.9%. During this period, the company’s gross margin continued to improve, rising from 52.3% in 2022 to 71.8% in the first half of 2025.

However, for 2022, 2023, and 2024, the company recorded operating losses of RMB 370 million, RMB 239 million, and RMB 62.09 million, respectively, remaining in a loss-making state. In the first half of 2025, revenue was RMB 524 million, a 24.5% increase year-on-year; however, the growth rate has slowed. The loss for the period was RMB 39.54 million, narrowing compared to the same period last year.

NewTimeSpace has learned that during JST's IPO, the Hong Kong public offering was oversubscribed by approximately 1,953 times, setting a new high for subscription enthusiasm in the SaaS industry for the year. The company also introduced 13 cornerstone investors, including prominent institutions such as Blue Lake Capital and Sequoia China, with a total subscription amount of approximately US$130 million.

Software Industry Faces New Challenges Under AI Technology

As JST went public, the SaaS industry reached a major turning point driven by AI technology.

NewTimeSpace understands that the core advantage of traditional SaaS lies in predictable subscription revenue and high customer stickiness, but the emergence of AI is shaking this foundation.

Reportedly, "Vibe Coding" (AI-assisted rapid programming) allows non-programmers to quickly build customized software, significantly lowering development barriers. This leads to a scenario where customers no longer need to purchase generic CRM or HRM systems; instead, they can use AI to generate exclusive tools on demand.

This implies that the role of SaaS companies may devolve from service partners providing continuous value to suppliers of standardized products for one-time delivery, thereby losing their ability to collect recurring fees.

Since 2025, following the successive launch of its self-developed AI-based sales, support, and contract tools, OpenAI is no longer just providing behind-the-scenes technical support to the SaaS market—it is competing with it. It is embedding AI directly into daily processes such as sales, support, and document analysis, transitioning from a SaaS industry supporter to a direct participant in the competition.

Beyond well-known AI giant OpenAI, since 2025, Anthropic’s AI programming tool "Claude Code" and AI Agents like "Manus"—which can autonomously complete complex tasks—have accelerated their commercial deployment.

NewTimeSpace has learned that on January 12, Anthropic released "Claude Cowork," an AI office tool that allows enterprise customers to customize Agents based on specific roles and workflows, creating true "digital employees."

The launch of these various tools by AI enterprises has brought the "replacement crisis" in the software industry to a peak. Beyond the intuitive drop in software stock prices, Bloomberg data shows that during the current U.S. earnings season, only 71% of software companies in the S&P 500 exceeded revenue expectations, lower than the 85% average for the broader technology sector.

An analyst from Jefferies stated that a pessimistic view currently exists suggesting the future of the software industry may be comparable to that of print media or department stores. Looking toward data for 2026 or 2027, it is already difficult to see any significant upside.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.