Sinosoft Technology Announces Interim Results 2015

Monday, 3 August 2015, 21:12 HKT/SGT

Revenue climbed 27.2% to RMB 168.9 million;
Net profit after tax increased by 23.0% to RMB 56.8 million

HONG KONG, Aug 3, 2015 - (ACN Newswire) - Sinosoft Technology Group Limited (HKEx: 1297 ) is pleased to announce the interim results of the Group for the six months ended 30 June 2015.

During the first half of 2015, the central government of the People's Republic of China has launched various policies to promote the application of information technology, which helped to provide more opportunities for the information technology industry. The Group has strengthened its efforts in its major business segments, at the same time, continued to achieve healthy results leveraging on the solid foundation in its R&D capability and competitive edges. For the six months ended 30 June 2015, the Group's revenue recorded a year-on-year growth of 27.2% to RMB 168.9 million. Net profit after tax reached RMB 56.8 million, representing an increase of 23.0%. Net profit margin recorded 33.6%. Basic earnings per share was RMB 5.50 cents, representing a 23.0% year-on-year growth as compared with RMB 4.47 cents for the same period in 2014.

Export Tax Software and Related Services
Attributable to the increasing demand for the segment's software products, consultation services and training courses, the revenue generated from export tax software and related services increased by approximately 24.7% year-on-year to RMB 52.4 million. In the period under review, the Group has been proactively developing sales beyond the Jiangsu market. The Group has established a wholly-owned subsidiary in Qingdao of Shandong Province, to further promote its products there. In the meantime, the Group continued to enrich its product lines. During the first half of 2015, the Group launched various new products with features that are able to consolidate financial and tax figures within one software. Such a feature helps users to solve problems inherent in financial and tax software if such software were to be operated individually. These products have been well perceived by the market and contributed to the sales growth in the Group's export tax software and related services segment.

Apart from the traditional export tax software and related services, the Group jointly launched an unsecured loan product for SMEs with Ant Financial Services Group in March 2015, to provide financial data services for SMEs. In addition, in July 2015, the Group announced that it has been selected as the designated developer of sales tax refund system for overseas visitors in Shanghai.

Carbon Management Solutions
Following the PRC central government's setting of specific targets in energy saving and emission reduction, local governments and enterprises have began intensifying related efforts in these areas. This has helped to drive up the Group's revenue from carbon management solutions for the six months ended 30 June 2015 by approximately 53.1% to RMB 16.7 million when compared with the same period last year. During the period under review, increase in sales of carbon management solutions for regions as well as carbon asset management platform for enterprises, contributed to the revenue growth in the Group's carbon management solutions segment. Besides, to further enhance the competitive edges in carbon management solutions, the Group announced that it has entered into a cooperative framework agreement with the Shanghai Branch of China Quality Certification Center, to cooperate with each other to develop regional carbon platforms and corporate carbon audit projects, as well as to further extend the Group's low carbon consultation services for governments and enterprises.

e-Government Solutions
During the six months ended 30 June 2015, the revenue generated from the Group's e-Government solutions increased by approximately 33.1% year-on-year to RMB 78.0 million. The increase was mainly attributable to the government's policies of encouraging information technology application and increasing government spending in information technology. During the period under review, the Group continued to deepen the implementation of big data technology, to further expand into new area of applications for e-Government solutions, as well as to enhance the functions and scope of applications for existing products. The Group's e-Government solutions which employ big data analysis continued to be sold to different provincial and city governments. In addition, the demand for upgrade in previously developed e-Government products also contributed to the growth in sales.

Outlook
Looking ahead, with central government's requirement of in-depth integration between information technology, represented by "Internet+", and various economic and social sectors in order to promote technological advancement, enhance innovative capabilities and productivity of the actual economy, the information technology industry is facing enormous development opportunities. The Group has been striving to enhance tax rebate, low-carbon environmental protection and government office efficiency through information technology, and has been actively developing the relevant innovative applications to enable the Group to promptly capture the market opportunities.

With regard to export tax software and related services, the Group will continue to expand its business to markets beyond Jiangsu. Moreover, leveraging on the foundation of cooperation with Ant Financial Services Group, the Group will seek more financial related development opportunities for creating new sources of income. After becoming the developer of the sales tax refund system for overseas visitors in Shanghai, the Group is in an advantageous position to implement the relevant tax refund system in other provinces. By leveraging on the opportunity of the system implementation in various provinces, the Group will also be able to cross-sell related products for export tax rebate to other provinces and generate greater revenue for the Group in the future. For carbon management solutions, the Group's products which have combined the key concerns of the central government policies on information technology and emission reduction, have attracted demand from various government units and enterprises which, in turn, will drive exponential growth in future demand. For e-Government solutions, in addition to continuous enhancing the functions and scope of applications of existing products and marketing them to various provincial and municipal governments, the Group will continue to expand and develop new applications for e-Government solutions to grasp the market opportunities arising from the use of information technology in government services. With the macro development trend of "Internet+", plus opportunities in different industries facing various key businesses, the Group will continue to strengthen its R&D and enhance competitiveness in preparation for greater room for growth in the future.

Topic: Press release summary Sectors: Daily Finance, IT Individual
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