2019-03-25

Abstract

• Revenue reached RMB 718.5 million, representing an increase of 19.6% year-on-year
• Net profit was RMB 236.4 million, representing an increase of 2.9% year-on-year, net profit margin was 32.9%
• If excluding the non-recurring expenses for granting awarded shares to employees, net profit was RMB 273.2 million, representing an increase of 19.0% as compared with the same period in 2017, net profit margin was 38.0%
• Basic earnings per share was RMB 19.26 cents (2017: RMB 18.54 cents)
• The Board has recommended the payment of a final dividend of RMB 2.00 cents per share (2017: RMB 2.78 cents) 

(Hong Kong, 25March 2019) 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 2018.

 

During the year under review, despite the challenging economic and trading environment, governments at all levels and the society as a whole have resilient demand for informatization and big data application. The Group’s major business segments have been developing big data analytics and data value-added services proactively while maintaining revenue growth, and successfully generated new sources of income. For the year ended 31 December 2018, the Group’s revenue reached RMB 718.5 million, representing an increase of 19.6% when compared to the same period in 2017, with all core business segments of the Group achieved continuous revenue growth. Net profit increased by 2.9% year-on-year to RMB 236.4 million. If excluding the non-recurring expenses for granting awarded shares to employees, net profit was RMB 273.2 million, representing an increase of 19.0% when compared with the same period in 2017. Basic earnings per share was RMB 19.26 cents. The Board has recommended the payment of a final dividend of RMB 2.00 cents per share for the year ended 31 December 2018.

 

Tax Software and Related Services

For the year ended 31 December 2018, revenue generated from tax software and related services recorded RMB 184.5 million, representing a 20.3% growth when compared with the same period in 2017. During the year under review, despite the challenge of uncertainties in the trading environment, the Group targeted customers’ needs and launched products and services that can facilitate export enterprises to enhance efficiency and save costs. These products and services were welcomed by the market.

Government Big Data Software and Related Services

For the year ended 31 December 2018, revenue generated from government big data software and related services recorded RMB 365.1 million, representing a 25.6% growth when compared with the same period in 2017. The Group’s government big data products continued to expand rapidly. Among them, judicial related products continued to be sold to different provinces and cities across the country. Public security related business has launched a number of innovative products. During the year under review, the Group developed the nation’s first “unmanned police station”, which fully integrated online and offline, intelligent and manual services, and innovated the mode of police services. Under the public security policy of “Yi Biao San Shi” (managing individuals, real estates and business units with standard addresses), the Group has established various products on top of the QR code doorplate system, which can integrate different social governance functions and enhance city management capability. Meanwhile, the Group has launched a number of government big data analytic products related to people’s livelihood such as courier monitoring system.

 

Low Carbon & Ecology Software and Related Services 

For the year ended 31 December 2018, revenue generated fromlow carbon & ecology software and related services was approximately RMB 123.2 million, representing an increase of 8.6% when compared with the same period in 2017. During the year under review, the Group refined its products according to policies development and market direction, and developed a series of eco-environment big data products, such as the eco-environmental public opinion monitoring big data platform and eco-environmental crime big data detection system, to assist in solving regional pollution problems and improving city eco-environment intelligent management standard.  

 

Outlook

Deepening the application of big data is a major focus of current government policies and social development. Whether in the economic, ecological environment, social governance and government services, mining data values to derive innovative applications is a main driving force for the development of these areas. With years of experience and expertise in the industry, combining with advanced technologies such as big data analytics and artificial intelligence, the Group has successfully developed various tax, government and low carbon related big data applications and service platforms. Looking ahead, the Group will continue to intensify its innovative capabilities, combining competences in different business segments to explore cross-industry new products and expand to a larger market.

For tax software and related services, the Group will continue to intensify its investment and develop more innovative products and services that can effectively enhance export enterprises’ efficiency in financial and taxation management, to help them deal with the current challenging export environment. Apart from the sales in Jiangsu Province, the Group will also proactively promote its products to markets outside the province. In the meantime, Tianshang big data service platform is beginning to exert its strength. The platform has a unique feature of analysing export tax rebates, which can enhance risk control capabilities for financial institutions. In addition, tax rebates are a reliable source of repayment that makes the platform uniquely attractive to both enterprises and financial institutions and is expected to bring new momentum for the tax segment.

 

For government big data software and related services, the Group will continue to solidify its leading position in the judicial industry and launch more diversified judicial products such as judicial identification knowledge-based platform and legal propaganda cloud platform. For public security industry, the Group will accelerate the promotion of the grid management platform using a four-tier product system for provinces, cities, districts, and towns. Leveraging on the capabilities of social governance data analysis and rapid modelling, the Group extended development of a number of big data analytic platforms, including the “Instant Eyes” platform for combating counterfeit goods and the city emergency resource sharing platform, will also bring numerous opportunities to the Group.

  

For low carbon & ecology software and related services, as the state continues to strengthen the protection of natural ecology, low carbon & ecology software and related services will see bigger opportunities. Eco-environment big data products actively respond to the urgent needs for government in using information technology for supervision. These products apply big data analytics to target pollution and ecological problems in a scientific way, thus, to assist government departments for decision making. Green and low carbon cycle products that extended from carbon to areas of energy consumption and emissions will also continue to develop. The Skytech green and low carbon industrial internet platform will be promoted riding on the implementation of the national policy of promoting “traditional enterprises going on the cloud” and the preferential policies of state subsidies. Also, the Group will strive to rapidly connect existing customers to the platform through cross-selling.

While continuing the sales of application software products, the Group’s revenue from big data analytic products and services is gradually increasing. With the Group’s effort in exploring data values in various business areas, intensifying the ability in big data analytics, and innovating different application scenarios, a broader market is expected to be achieved.

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