2023-08-28

(Hong Kong, 28 August 2023) 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 2023.

 

Since 2023, the global economy has continued to deteriorate, and the Chinese economy has been facing enormous challenges. As urgency in informatization construction demand of many customers has decreased, that has significantly impacted the Group’s business development plan. Under the severe operating environment, the Group is seeking changes which focus on the market to adjust the deployment, increasing investment in technology R&D, tapping commercial value in advantageous areas, and preparing to strive for market share when the economy recovers. For the six months ended 30 June 2023, the Group recorded revenue of approximately RMB 143.6 million, representing a decrease of approximately 29.6%. Loss and total comprehensive expense was approximately RMB 59.0 million. Basic loss per share was RMB 4.83 cents.

 

Government Big Data Software and Related Services

In the field of government informatization, as some clients have cut their project budgets due to the economic downturn, certain projects were postponed or even shelved. In the first half of the year, the Group’s focuses were ensuring demand for high potential value products, intensifying government services for citizens’ livelihood, and strived to maintain the Group’s market position in government informationization. For the six months ended 30 June 2023, the Group’s revenue generated from government big data software and related services amounted to approximately RMB 142.2 million, representing a decrease of approximately 26.5% when compared to the corresponding period in 2022.

 

Low Carbon & Ecology Software and Related Services

Due to the decreased demand for low carbon & ecology products under the challenging economic environment, revenue generated from low carbon & ecology software and related services for the six months ended 30 June 2023 amounted to approximately RMB 1.4 million, representing a decrease of approximately 87.0% when compared to the corresponding period in 2022.

 

Outlook

Looking ahead, the Group will actively seek new growth points in response to the market development, and increase investment on intelligent research and development to improve R&D efficiency. With the extended application of artificial intelligence and big data analytics technologies, along with policy concepts development, the Group will develop and upgrade more solutions with the ability to integrate and apply new technologies. The Group utilizes artificial intelligence and big data technologies to refine and analyze its experience accumulated in government informationization, and develop new products for different application scenarios, so as to gain market share and increase revenue contribution. In addition, the Group introduces emerging technologies proactively, and invests in upgrading the low-code R&D platform with independent intellectual property rights to further reduce R&D costs.

 

In the field of big data, the Group will dig deep into its accumulated business experience, grasp the direction shift of the national big data strategies and demand for digital government construction, to form highly competitive products with selling points of integrating city emergency management, social grassroots governance and the construction of rule of law environment. The Group will also intensify its application in knowledge graphs, machine learning, and industry intelligent algorithm products continuously, to tap industrial enterprises and industries market, and participate in government informatization construction. Meanwhile, the Group will increase investment in the R&D of remote service integrated equipment, so as to open up a sustainable market of upgrading software and hardware integrated services.

 

For low carbon and ecology, the Group will continue to observe market opportunities, and adopt the most appropriate and beneficial strategy for its overall development, to strive for the best return in the difficult environment.

 

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