Sinosoft Technology Announces Interim Results 2016

" />

English

简体中文

繁體中文

한국어

日本語

Monday, 8 August 2016, 19:41 HKT/SGT

Revenue increased by 21.2% to RMB 204.7 million;
Net profit climbed 17.7% to RMB 66.8 million

HONG KONG, Aug 8, 2016 - (ACN Newswire) - Sinosoft Technology Group Limited ("Sinosoft Technology" or the "Group", HKEx: 1297 ) is pleased to announce the interim results of the Group for the six months ended 30 June 2016.

Abstract
- Revenue reached RMB 204.7 million, representing an increase of 21.2% year-on-year
- Net profit reached RMB 66.8 million, representing an increase of 17.7% year-on-year
- Net profit margin recorded 32.6%
- Basic earnings per share for the six months ended 30 June 2016 was RMB 6.47 cents, as compared with RMB 5.50 cents for the six months ended 30 June 2015

During the first half of 2016, informatization in China continued to develop vigorously. Demand for and investment in information technology from governments of all administrative levels and enterprises have been stepping up, which brought more development opportunities and solid revenue contribution for the Group. For the six months ended 30 June 2016, the Group's revenue recorded a year-on-year growth of 21.2% to RMB 204.7 million. Net profit reached RMB 66.8 million, representing an increase of 17.7%. Net profit margin recorded 32.6%. Basic earnings per share was RMB 6.47 cents, representing a 17.6% year-on-year growth as compared with RMB 5.50 cents for the same period in 2015.

Tax Software and Related Services
Stepping into 2016, the Group has been proactively expanding products and businesses in the tax area. In light of such development, the segment is renamed as tax software and related services from the original export tax software and related services. For the six months ended 30 June 2016, revenue generated from tax software and related services was approximately RMB 52.6 million, a marginal increase when compared with the same period in 2015. This was mainly due to the State Administration of Taxation being focused on the work of replacing business tax with value-added tax and enterprises were busy coping with the changes. Thus, demand related to other tax information services has yet to generate.

The Group made significant achievements in business expansion of the tax area during the period under review. Entering into a strategic cooperative framework agreement with Aisino Corporation is expected to facilitate the Group's promotion of its export tax business across China, as well as extend its development into the new business of electronic invoicing and value-added tax related services. In addition, overseas visitors sales tax refund business continued to develop steadily. The Group provided relevant system for Guangdong, Anhui, Liaoning, Jiangsu, Shaanxi and Qingdao during the first half of 2016.

Carbon Management Solutions
With growing attention in energy saving and emission reduction, the Group's revenue from carbon management solutions for the six months ended 30 June 2016 increased by approximately 33.8% year-on-year to approximately RMB 22.4 million. During the period under review, the Group has completed a provincial key enterprises carbon reporting platform and carbon trading information management system, which provides data support for carbon quota allocation within the province. The Group has also developed a national greenhouse gas list database system. On top of the data of key enterprises carbon emission, the system further processes carbon emission information from different areas such as transportation, building and people's living, to calculate the total amount of carbon emission in the country, which can provide the reference data for assessing national carbon peak. In addition, the Group responded to the policy of "Internet + Building Energy Management" and launched a new system for building energy consumption monitoring during the period under review, to further enrich its product lines.

e-Government Solutions
Central government's encouragement of "Internet + Government Services" has helped to drive the revenue generated from e-Government solutions for the six months ended 30 June 2016 to approximately RMB 103.5 million, representing a year-on-year increase of approximately 32.8%. During the period under review, various signature products of the Group were sold to a number of markets outside Jiangsu, including Beijing, Tianjin, Hebei, Liaoning and Inner Mongolia. Service cloud platform has expanded from targeting provincial government to municipal government and has been sold to cities outside Jiangsu, while WeChat police platform has also been promoted to more cities and regions. Together with customers' demand for upgrading existing e-Government products, these factors have contributed to the increase in revenue from e-Government solutions.

Outlook
Looking ahead, the areas of tax, low carbon and e-Government, which are the Group's business focus, have certain new developments, either in industry policies or in applications of information technology, thus bringing opportunities to the Group.

For tax software and related services, the Group will continue to explore new products and provide comprehensive tax related information technology solutions to large corporates. In addition, with the background of the implementation of electronic invoicing and change from business tax to value-added tax, developing electronic invoicing platform for export enterprises as well as the provision of services for value-added tax for other enterprises, will enable the Group to come into contact with more customers, which in turn will bring more revenue and future development opportunities. For overseas visitors sales tax refund, the Group is now in talks with provinces that have yet to launch the system, to strive for providing overseas visitors sales tax refund system to these provinces, so as to further expand the Group's geographical markets.

For carbon management solutions, the Group will ride on the advantage of having developed products for national use, to bring the national key enterprises carbon reporting platform and the newly developed national greenhouse gas list database system down to different provincial and municipal governments. The Group will continue to seize the opportunities brought about by the target of reaching national carbon peak before 2030 and the upcoming national carbon trading, to promote ecology cloud platform and low carbon cloud product series for government agencies and management departments, and to sell carbon asset management system for enterprises.

For e-Government solutions, while continuing to sell the Group's signature products to various provinces and cities, the Group will develop extended products from the existing applications, such as the terminal outlets management platform derived from the foundation of courier enterprises management. The Group will also continue to explore new areas of applications. Among them, resources supply chain management platform is expected to be launched in the second half of 2016. Riding on the development trend of new economy and informatizaion, together with the prospects in different core business segments, the Group will continue to strengthen its R&D and enhance its competitiveness, to prepare for greater growth in the future.

About Sinosoft Technology Group Limited
Sinosoft Technology Group Limited is an advanced provider of application software products and solutions in the PRC. The Group principally develops and markets tax software and related services, carbon management solutions and e-Government solutions. The Group is the only supplier of export tax software in Jiangsu Province with over 15 years of experience in developing tax related software. Also, the Group is the first mover in carbon management solutions, and a renowned player in the provision of e-Government solutions in the PRC. The Group's R&D standard is widely recognized with the accreditation of "Key Software Enterprise under the National Plan" and CMMI Level 5, which possessed the highest maturity level under the CMMI accreditation system regarding the standard of product planning, software development, business consultation, managing and maintenance procedure.

Topic: Press release summary Sectors: Daily Finance, IT Individual, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network