2018-08-21

Abstract

Revenue reached RMB 286.5 million, representing an increase of 19.8% year-on-year

Net profit reached RMB 88.8 million, representing an increase of 18.0% year-on-year 

Net profit margin recorded 31.0% 

Basic earnings per share for the six months ended 30 June 2018 was RMB 7.20 cents, as compared with RMB 6.07 cents for the six months ended 30 June 2017

(Hong Kong, 21 August 2018)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 2018.

 

During the first half of 2018, the Group started its business transformation, moving from application software development to big data analytics and data value-added services operation, which not only help broaden the source of revenue but also increase the proportion of recurring income. At the same time, traditional products continue to see growing demand and are rapidly promoting to more provinces and cities.For the six months ended 30 June 2018, the Group’s revenue recorded a year-on-year growth of 19.8% to RMB 286.5 million. Net profit reached RMB 88.8 million, representing an increase of 18.0% year-on-year. Net profit margin recorded 31.0%. Basic earnings per share was RMB 7.20 cents.

 

Tax Software and Related Services

During the period under review, despite the turbulent export environment, the Group intensified its promotion in products using SaaS model for rental sales and successfully attracted more export enterprises to purchase the Group’s products. This has contributed the Group’s revenue generated from the tax software and related services for the six months ended 30 June 2018 amounted to approximately RMB 60.9 million, representing an increase of approximately 11.7% year-on-year. During the period under review, the Group’s Tianshang big data service platform, which was established using big data analytics, has been enhancing. The platform is able to provide credit rating services such as corporate profiling, as well as financing services for enterprises through trade and transaction related data mining. On the other hand, it can facilitate financial institutions to control risks and provide loan for high-quality trading enterprises. The platform is designed to transform fragmented data in enterprises to valuable data assets, thus, to help financial institutions to locate enterprises with good credit, and enable enterprises to access low-cost financial services.

 

Low Carbon & Ecology Software and Related Services

During the period under view, the Group’s different low carbon & ecology products continued to be sold across the country. In addition, the provision of third-party carbon emission verification services for key industrial enterprises in Shandong and Qingdao has also helped to drive the revenue of low carbon & ecology software and related services for the six months ended 30 June 2018 to approximately RMB 44.0 million, representing an increase of approximately 15.0% year-on-year. The low carbon & ecology software and related services segment made a few important steps for business development during the period under review, including the in-depth cooperation with Huawei Cloud in areas of green ecology and industrial internet. The Group’s low carbon & ecology products will be promoted across the country leveraging on the Huawei Cloud’s sales network. In addition, the Group has launched the country’s first industrial internet cloud platform with the theme of “green & low carbon”, which will help promote the Group’s low carbon & ecology products and services to more industrial enterprises, and form a data ecosystem of “green & low carbon”, so as to create more related demand.

 

Government Big Data Software and Related Services

For the six months ended 30 June 2018, revenue from government big data software and related services amounted to approximately RMB 154.6 million, representing an increase of approximately 25.1% year-on-year. During the period under review, the Group’s judicial and security related platforms continued to be sold across the country. Apart from new customers expansion, some existing customers’ demand for phase two or phase three projects also contributed the revenue increase. During the period under review, the Group entered into a strategic cooperative agreement with Ping An Technology (Shenzhen) Co., Ltd. (“Ping An Technology”), a wholly-owned subsidiary of Ping An Insurance (Group) Company of China, Ltd. (“Ping An”, a company listed on the Main Board of the Stock Exchange of Hong Kong Limited, Stock Code: 2318), to jointly develop new smart city products. Combining both parties’ big data analytics capabilities in their respective fields and complementing each other’s strengths, the cooperation will further magnify the value of data and create a new smart city solution that is accurate, efficient and convenient.

 

Outlook

Looking ahead, under the continuous rapid development in China information market, the Group not only aims at capturing the huge demand in its major business areas but also creating opportunities proactively. With a solid business foundation and continuously growing results, the Group is committed to exploring more scenarios for data application, creating new business ecosystems and opening up more revenue sources for the future.

For tax software and related services, the Group will continue to enhance Tianshang big data service platform and develop more financing products based on big data analytics, and promote to more financial institutions and trade-related enterprises. On the other hand, the Group is planning to cooperate with partners that have advantages in other tax-related fields, to create brand new solutions for export tax rebate information management, as well as tax planning services, and to promote across the country. 

For low carbon & ecology software and related services, the Group will continue to develop its green & low carbon industrial internet platform. With the national policies vigorously promoting intelligent manufacturing, as well as requiring industrial enterprises for green transformation, the Group’s green & low carbon industrial internet platform will provide one-stop services by connecting upstream and downstream supply chain enterprises, financial institutions, technical institutions, and consulting institutions, etc., so as to empower industrial enterprises for green transformation and upgrade, and also establish a green industrial data ecosystem, which can extend to areas such as green brands and green financing. In addition, the Group will continue to develop the city green ecology solutions targeted government end, and promote across the country together with Huawei Cloud. Under the backdrop of national carbon trading, the Group will also continue to promote its solutions, which integrated features of carbon emissions monitoring, auditing, management, transaction assistance and carbon asset management, to enterprises involved in carbon trading. 

 

For government big data software and related services, with product and industry experience accumulated in the past years, the Group will grasp the development trend, that is, the government pays equally high attention in ensuring city safety and stability, as well as public services, to launch inter-departmental and precise products, big data prediction and alert services, which are expected to bring a new development direction for e-Government. The Group will also continue to develop operational platforms for governments to provide services, and connect with third-party commercial organizations, to establish “G2B” and “G2C” operational scenarios. 

With the solid foundation and clear development direction, the Group will continue to strengthen its R&D capabilities across its major businesses and promote its products and services throughout the country to meet the broader market and faster growth in the future. 

 

 

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