2020-03-30

Abstract

Revenue reached RMB 750.3 million, representing an increase of 4.4% year-on-year

Net profit was RMB 281.1 million, representing an increase of 18.9% year-on-year

Net profit margin was 37.5% (2018: 32.9%)

Basic earnings per share was RMB 23.18 cents (2018: RMB 19.26 cents)

(Hong Kong, 30 March 2020) 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 2019.

 

During the year under review, China’s economy faces numerous difficulties. Despite the unsatisfactory market condition, the Group remains committed in proactive research and development, to provide application software that is more convenient and efficient for enterprises and government agencies, and to improve the capabilities in big data analytics, so as to help customers to cope with the current situation, and to drive the continuous growth of the Group’s results at the same time. For the year ended 31 December 2019, the Group’s revenue reached RMB 750.3 million, representing an increase of 4.4% when compared to the same period in 2018. Net profit increased by 18.9% year-on-year to RMB 281.1 million, with a net profit margin of 37.5%. Basic earnings per share was RMB 23.18 cents.

 

Export Enterprise Cloud-Based Software and Services

During the year under review, the operating conditions of export enterprises were affected by the unstable trade situation. The Group targeted clients’ demand and launched products that can assist export enterprises to improve their efficiency and save costs. For the year ended 31 December 2019, revenue generated from export enterprise cloud-based software and services amounted to approximately RMB 185.8 million, representing a slight increase of approximately 0.7% when compared with the corresponding period in 2018.

 

Government Big Data Software and Related Services

For the year ended 31 December 2019, revenue generated from government big data software and related services amounted to approximately RMB 424.0 million, representing an increase of approximately 16.1% when compared with the corresponding period in 2018. During the year under review, the Group’s social governance and public security products achieved satisfactory results, together with judicial products are sold to different provinces across the country.

 

Low Carbon & Ecology Software and Related Services 

Due to the delay of some projects, the revenue of low carbon & ecology software and related services during the year under review was affected. For the year ended 31 December 2019, revenue from low carbon & ecology software and related services amounted to approximately RMB 97.3 million, representing a decrease of approximately 21.0% when compared with the corresponding period in 2018.

 

Outlook

At the beginning of 2020, the outbreak of the novel coronavirus disease 2019 (“Epidemic”) has caused severe damage to China and the global economy, making it difficult for enterprises to survive alone. However, the Group firmly believes that through continuous innovation and optimization of products and services, it will be able to see opportunities in crisis and reach stronger growth after the storm.

 

The Group will keep abreast of the foreign trade situation and policy development, and conduct in-depth research and development in application software and big data analytic services that can effectively help clients improve operations and understand market dynamics. After the Epidemic, enterprises that have resumed production and operation have further needs for enhancing production efficiency and reducing operating costs. The Group will further refine corporate demands, research and develop more new products proactively, and provide them with more diversified services.

 

Social governance, services of basic level government officials, and related data analysis have played a decisive role in managing the Epidemic. The demand for government departments to rapidly improve the service capacity of basic level government agencies by using technical means will continue to rise. Social governance has become an important carrier of city lifeline and safety line. The Group will continue to optimize and promote the “grid” social governance system, not only to allow basic level government officials in different communities to precisely cope with service demand of the public, but the system can also quickly aggregate the data of the general public’s administrative demands, difficulties and risks, and draw a panorama of the urban public’s trends in living, needs, and social development. Through big data analytics, the “grid” system can formulate efficient event coordination and joint service capabilities by multi departments, and provide a lively basis for policy reform of basic level governments.

 

The central government has recently proposed to highlight the development of “new infrastructure”, which is to boost the economy by promoting the information technology industry. It clearly stated that the establishment of big data centers should be accelerated for cities. The development direction of intelligent cities should shift to grassroots institutional reforms, consolidating areas including basic level government services, people’s livelihood, public security data and production safety, to generate a real-time understanding of the actual results brought about by urban development, government policies, and delegate of rights, which allow city managers to see the development direction more clearly and enhance the ability to predict and prevent major risks. The “new infrastructure” also includes vigorous development of the industrial internet platform, to encourage manufacturing enterprises to expand production through the industrial internet platform, and intensify circular economy and sustainable development. Increasing the assistance and incentive for enterprises, especially small and medium-sized enterprises by industrial supporting funds has become a major encouraging direction of the government after the Epidemic. All these areas are in line with the Group’s development direction in government big data and ecological industrial internet platform. The Group will seize the opportunities and develop relevant big data analytics products, intelligent city establishment, and its green industrial internet platform.

 

With the accumulated experience and capabilities in all major business areas, the Group will continue to maintain its position, to enhance the quality of application software and big data analytic services for enterprises and government agencies. Not only respond to market demand but also create market demand, to maintain long-term healthy business growth.

 

 

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