2019-08-28

Abstract 

• Revenue reached RMB 319.3 million, representing an increase of 11.4% year-on-year
• Net profit reached RMB 99.8 million, representing an increase of 12.5% year-on-year 
• Net profit margin recorded 31.3% 
• Basic earnings per share for the six months ended 30 June 2019 was RMB 8.26 cents, as compared with RMB 7.20 cents for the six months ended 30 June 2018

(Hong Kong, 28 August 2019)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 2019.

In the first half of 2019, despite the complicated and severe economic environment, the Group persisted its efforts in developing its core business and products. During the period under review, both the Group’s revenue and profit maintained steady growth. For the six months ended 30 June 2019, the Group’s revenue recorded a year-on-year growth of 11.4% to RMB 319.3 million. Net profit reached RMB 99.8 million, representing an increase of 12.5% year-on-year. Net profit margin recorded 31.3%. Basic earnings per share was RMB 8.26 cents.

 

Export Enterprise Cloud-Based Software and Services 

As the Group strives to provide more comprehensive cloud-based software and services for export enterprises, and not simply assists enterprises for dealing with export tax rebate, the Group renamed this segment from “tax software and related services” to “export enterprise cloud-based software and services”, in order to better describe the business nature. The change in segment name does not affect the comparative figures. 

 

During the period under review, there has been no mitigation in the China-US trade friction. The economic environment remained uncertain and inevitably brought pressure to the Group’s export enterprise customers. Under this challenging environment, the Group is committed to respond to market demand and help export enterprises to improve their efficiency and save costs. For the six months ended 30 June 2019, revenue generated from export enterprise cloud-based software and services amounted to approximately RMB 66.3 million, representing an increase of approximately 8.7% year-on-year.

 

Government Big Data Software and Related Services

For the six months ended 30 June 2019, revenue from government big data software and related services amounted to approximately RMB 180.4 million, representing an increase of approximately 16.7% year-on-year. During the period under review, the Group’s social governance and public security products achieved satisfactory results and sold to different provinces across the country. 

 

Low Carbon & Ecology Software and Related Services

During the period under review, the Group’s different low carbon & ecology products continued to be sold across the country, covering customers from government departments to industrial enterprises. For the six months ended 30 June 2019, revenue from low carbon & ecology software and related services amounted to approximately RMB 47.9 million, representing an increase of approximately 9.0% year-on-year. 

 

Outlook 

Whilst the current economic environment remains challenging, the Group will continue to leverage its expertise in all major business areas to develop and market more software and big data analytics products in respond to its customers’ needs, while at the same time strive to improve its internet platforms and expand to a larger market prospect. 

 

For export enterprise cloud-based software and services, the Group will continue to develop integrated solutions that combine the features related to different parts of export and consolidate comprehensive data, to assist customers to improve operational efficiency and provide them with more accurate analysis. The Zumoo Platform, which can translate enterprises’ historical operational data into their credit, is accelerating promotion among customers and expected to bring new impetus to this segment. 

 

For government big data software and related services, the Group will continue to seize opportunities in the social governance and public security product markets, to accelerate the promotion of the “grid” social governance system, and the “last mile” self-service equipment for government services to different levels of government departments. New intelligent judicial products will also be launched continuously. 

 

For low carbon & ecology software and related services, the Group will continue to enrich its product functions and develop more products for big data analytics and ecological smart cities that are extended from the area of low carbon ecology. The Skytech Green Low Carbon Industrial Internet Platform is continuing to enhance its functions and strive to connect with more enterprises. 

 

With the accumulated experience and capabilities in all major business areas, the Group will be able to accurately capture market demand and maintain business growth. 

 

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