2022-08-29

(Hong Kong, 29 August 2022) Sinosoft Technology Group Limited (“Sinosoft Technology” or the “Group”, HKEx: 1297 ) announces the interim results of the Group for the six months ended 30 June 2022.

 

Since 2022, under complex international and domestic situations such as intensified geopolitical conflicts, rising risks of global stagflation, and repeated outbreaks of COVID-19, the risks and uncertainties in economic development have been increasing, causing the macroeconomy to deviate from the normal growth track, and brought challenges to the Group in the first half of the year. Despite the difficult business environment, the Group has continued to make efforts in R&D and leveraged its strengths in various major product areas to maintain overall stable revenue. For the six months ended 30 June 2022, the Group recorded revenue of approximately RMB 203.9 million, representing a slight decrease of approximately 1.4%. Net profit was approximately RMB 2.5 million. Basic earnings per share was RMB 0.27 cents.

 

Government Big Data Software and Related Services

For the government big data market, due to the increased downward pressure on the economy, government departments gradually reduced spending and halted unnecessary investment. Informatisation budgets were cut, projects were postponed, and the payment cycle was also affected. In addition, the rising labor cost added significant pressure to the Group. Nonetheless, the Group is committed to using its years of experience in government data governance to provide customers with products that meet current needs and that maintained a stable income and market position in government products. For the six months ended 30 June 2022, the Group’s revenue generated from government big data software and related services amounted to approximately RMB 193.4 million, representing an increase of approximately 13.4% when compared to the corresponding period in 2021.

 

Low Carbon & Ecology Software and Related Services

The economic slowdown has an even greater impact on the low carbon and ecology market, coupled with the decelerating pace for carbon neutrality around the world, relevant product demand was hardly seen. In the uncertain market development direction, the Group strived to explore different strategies and continued to optimize existing products and sales to prepare for the future market. For the six months ended 30 June 2022, revenue generated from low carbon & ecology software and related services amounted to approximately RMB 10.5 million, representing a decrease of approximately 70.9% when compared to the corresponding period in 2021

 

Outlook

Looking ahead, in the face of the increasing severe market situation, the Group will continue to commit to R&D, try to make breakthroughs and find new ways for growth on the one hand; and expand the use of artificial intelligence and other technologies to improve the efficiency of R&D, so as to reduce the pressure on labor costs on the other hand.

In the field of government big data, the trend of normalization of pandemic has increased the demand for remote services by government departments, and they are more willing to invest in the purchase of remote self-service equipment to maintain government service capabilities while avoiding crowding. The Group will continue to intensify the research and innovation of integrated remote service equipment, so as to promote a thorough integration of software products and hardware equipment in the markets such as judicial and social governance, to open up new opportunities in existing fields, and enhance the competitive advantage of the Group’s government products. In addition, the Group will continue its effort in traditional businesses such as judicial and grid-based products, in order to maintain stable revenue contributions through system upgrades and operation and maintenance.

 

In the area of low carbon ecology, the Group will continue to closely monitor policy development, research on product direction and positioning under the new business environment, and aim to provide city carbon emission data analysis and management for more government customers.

 

- End -