2021-03-29

• Revenue was RMB 533.8 million, representing a decrease of 12.0% year-on-year
• Net profit was RMB 513.4 million, representing an increase of 82.6% year-on-year
• Basic earnings per share was RMB 42.21 cents (2019: RMB 23.18 cents)
• Recommended the payment of a final dividend of RMB 20.05 cents per share

(Hong Kong, 29 March 2021) Sinosoft Technology Group Limited (“Sinosoft Technology” or the “Group”, HKEx: 1297 ) is pleased to announce the annual results of the Group for the year ended 31 December 2020.

 

In 2020, along with the continuous influence by COVID-19, society has developed a new normal, and enterprises must be flexible to turn crises into opportunities. With the management’s accurate judgment and decisive action, the Group completed the disposal of assets related to export enterprise cloud-based software and services during the year under review, to consolidate resources and focus on strengthening low carbon ecology software and related services and government big data software and related services. For the year ended 31 December 2020, under the difficult economic environment, the Group’s revenue was RMB 533.8 million, representing a decrease of 12.0% when compared to the same period in 2019. Attributable to the gain on disposal of the export enterprise cloud-based software and services business, net profit increased by 82.6% year-on-year to RMB 513.4 million. Basic earnings per share was RMB 42.21 cents. The Board recommended the payment of a final dividend of RMB 20.05 cents per share for the year ended 31 December 2020

 

Government Big Data Software and Related Services

For the year ended 31 December 2020, revenue generated from government big data software and related services amounted to approximately RMB 425.5 million, representing a decrease of approximately 8.7% as compared to approximately RMB 465.8 million for the corresponding period in 2019. Overall demand for the Group’s government big data products was satisfactory, however, the delayed bidding processes in some projects resulted in the decrease in revenue from government big data software and related services segment.

 

Low Carbon & Ecology Software and Related Services

Demand for low carbon & ecology software and related services has temporarily slowed down in the difficult economic environment. For the year ended 31 December 2020, revenue generated from low carbon & ecology software and related services amounted to approximately RMB 71.0 million, representing a decrease of approximately 27.0% as compared to approximately RMB 97.3 million for the corresponding period in 2019.

Outlook

Looking ahead, although the impact of COVID-19 pandemic on economic and social development will continue and the business environment will inevitably be affected, the Group believes that after streamlining business and adjusting strategies, the R&D capabilities of the two core business segments will be enhanced. Under different favorable policies, the Group will continue to exert its acute sense in market demand to launch more low carbon ecology and government big data products and sell to different regions proactively, to drive future growth.

 

For low carbon ecology software and related services, the Group will seize the significant industry opportunities from China’s reaching carbon peak by 2030 and carbon neutrality by 2060, and continue to iterate its products to assist the government and enterprises in planning the path to achieve carbon peaks and carbon neutrality. On the government side, the Group will build low carbon cities, carbon neutrality parks, and zero-carbon communities leveraging on its business experience, technology accumulation and product advantages in digital construction of low carbon ecology cities, and assists more government customers across the country to coordinate and formulate quantifiable, assessable, and traceable solutions related to carbon peak and carbon neutrality. On the enterprise side, the Group will utilize its green and low carbon industrial internet platform, focusing on companies in high emission industries such as electricity, chemicals, steel, and cement, to establish a series of carbon assets trading cloud service products covering carbon audit, carbon disclosure, carbon footprint, carbon trading, and carbon quotas. These cloud service products will also extend to upstream and downstream companies in the supply chain, providing one-stop SaaS services for companies participating in the carbon trading market, responding to the upcoming carbon tariffs, and meeting the needs of supply chain carbon footprint certification.

 

For government big data software and related services, under the backdrop of China enhancing community governance, public security risk prediction, and basic level comprehensive law enforcement capabilities, the Group will continue to upgrade its social governance products, research in application scenarios of multi-departmental coordination and co-governance, to increase users’ loyalty. The Group will exert its leading role in these products and promote them to more provinces and cities.

 

Under the guidance of the country’s rule of law, the Group’s judicial products continue to innovate. The newly launched judicial forensic product utilizing the characteristics of blockchain decentralized storage, non-tamperable data, and traceable sources throughout the process, effectively reduces the risk of evidence leakage, promotes judicial justice and enhance universal sharing capabilities in legal services, is expected to bring a new drive to the Group’s judicial business.

 

Leveraging on the industry experience and R&D capabilities accumulated in the core business areas, coupled with the insight into market development, the Group will seek breakthroughs on the foundation of solid development, with the goal to create greater growth prospects.

 

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