2022-03-28

(Hong Kong, 28 March 2022) 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 2021.

 

In 2021, despite the pressure on the macro economy, China is actively promoting digital transformation. With the well-recognized data service capabilities, the Group has become one of the government’s service providers in digital empowerment and intelligent transformation projects. Under China’s continuous effort in implementing policies including enhancing social governance and controlling carbon emissions, the Group’s government big data and low carbon & ecology products encounter considerable market opportunities. The Group rapidly responded to market demands, actively invested in R&D, and optimized business strategies, not only laid the foundation for long term development, but also maintained healthy operations during the year. For the year ended 31 December 2021, the Group’s revenue from continuing operations recorded approximately RMB 586.4 million, representing an increase of approximately 9.9% year-on-year. Net profit was approximately RMB 15.0 million. Basic earnings per share was RMB 1.29 cents.

 

Low Carbon & Ecology Software and Related Services

Under the background that countries around the world have successively issued green policies, China is striving to achieve carbon peak by 2030 and carbon neutrality by 2060, as well as the implementation of relevant policies by local governments, demands for emissions management from government agencies and enterprises are constantly increasing. Leveraging the consultation and planning experience in the carbon field and the accumulated informatization capabilities, the Group continued to upgrade the “dual carbon” integrated solutions and innovate the Skytech Green and Low Carbon Industrial Internet Platform, to serve manufacturing industries, provide carbon emission data monitoring and carbon asset operation and management software for enterprises, so as to facilitate enterprises in green transformation, cost reduction and efficiency enhancement. For the year ended 31 December 2021, revenue generated from low carbon & ecology software and related services amounted to approximately RMB 79.6 million, representing an increase of approximately 12.1% year-on-year.

Government Big Data Software and Related Services

The experience of the COVID-19 pandemic made various types of online services and management platforms become even more important. Applications for grassroots citizens have helped smoothen the society operation, relevant demands emerged accordingly. With machine learning technology introduced to the Group in recent years to support the integration of unmanned government services and terminal equipment, terminal products targeting grassroots government workers and social representatives across the country have been launched and established strong market competitiveness. The Group integrated community correction services and technologies such as biometrics to develop remote service terminal products for people under community sentences, which were also promoted to many provinces and cities during the year under review. For big data products, the Group’s data as a service (“DaaS”) platform leveraging on its years of experience in government data governance, has opened up markets in different fields such as judiciary, city emergency management, fire protection, become the supporting platform of relevant government departments in data governance, and also developed a variety of big data products continuously. Also, under the influence of the pandemic and extreme weather, etc., the country’s demand for anti-pandemic and emergency response surged, and the Group’s social governance and emergency management products were welcomed by the market. For the year ended 31 December 2021, revenue generated from government big data software and related services amounted to approximately RMB 506.8 million, representing an increase of approximately 9.5% year-on-year.

 

Outlook

Looking ahead, under the background of policies such as digital transformation and “dual carbon”, the Group will continue to conduct in-depth research on market demand, develop new products, and actively promote to different provinces, cities and regions.

 

In the field of low carbon, the Group will intensify its expansion and aim to launch products covering key energy consumption industries such as petrochemicals, chemicals, building materials, and steel during the 14th Five-Year Plan period. The People’s Bank of China has launched a carbon emission reduction supporting tool, and the China Development Bank has also launched an action plan, which clearly supports carbon peaking and carbon neutrality, to provide continuous high quality and efficient financial services for green, low carbon and circular development. Moreover, the European Parliament has preliminarily passed the EU carbon tariff policy and plans to implement it from 1 January 2023, which is expected to urge the needs of export enterprises for reducing emissions.

 

For government big data software and related services, the Group will continue to promote integrated terminal equipment for different government services nationwide, and expand the coverage in grassroots governments and institutions continuously. The cloud market based on terminal equipment capabilities will form cloud-to-end software as a service (“SaaS”) products and will be promoted to government service industries. The Group will deeply cultivate digital city governance product series that have achieved market advantages, and will closely follow China’s government services informatization development direction of digitalization and cross regions collaboration, to explore the Group’s value in the national market. In particular, the Group undertook the national judicial forensic blockchain pilot project during 2021, and completed the construction of the national judicial forensic document digitalize and coding platform. As the technical supporter, the Group has participated in the formulation of data standards for electronic licenses of judicial forensic institutions across the country, and is expected to establish SaaS capabilities for institutions and the public for forensics depository and online identification in 2022, to form digital service market for the public, judicial institutions, law enforcement institutions, legal practitioners, insurance institutions etc., and will bring along broad prospects.

 

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