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Sinosoft Technology Announces Interim Results 2020
2020-08-28

Revenue was approximately RMB 255.7 million, representing a decrease of 19.9% year-on-year

Net profit was approximately RMB 77.7 million, representing a decrease of 22.1% year-on-year

Net profit margin recorded 30.4%

Basic earnings per share for the six months ended 30 June 2020 was RMB 6.48 cents, as compared to RMB 8.26 cents for the six months ended 30 June 2019


(Hong Kong, 28 August 2020) 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 2020.

 

In the first half of 2020, the whole world including China was affected by the outbreak of the novel coronavirus disease that greatly disrupted the pace of city life and economic activities, shrunk foreign trade, put tremendous downward pressures on both domestic and foreign economies, and brought numerous difficulties to enterprises. In the face of this extraordinarily severe economic environment, the Group persisted in actively seeking new opportunities to develop products and operate prudently at the same time, and was able to continue making profit in the adversity. For the six months ended 30 June 2020, the Group’s revenue was RMB 255.7 million. Net profit was RMB 77.7 million, with net profit margin recorded 30.4%. Basic earnings per share was RMB 6.48 cents.

 

Export Enterprise Cloud-Based Software and Services

During the period under review, the Group’s export enterprise cloud-based software and services continued to obtain support and trust from customers despite some enterprises which terminated their export business and no longer purchased the Group’s products. For the six months ended 30 June 2020, revenue generated from the Group’s export enterprise cloud-based software and services was approximately RMB 58.8 million, representing a decrease of approximately 11.3% as compared to approximately RMB 66.3 million for the corresponding period in 2019.

 

Government Big Data Software and Related Services

There is a continuous demand for the Group’s government big data products which are able to effectively help enhance the level of social governance. However, the pandemic has delayed the bidding processes and has affected the Group’s revenue. For the six months ended 30 June 2020, revenue generated from government big data software and related services amounted to approximately RMB 167.7 million, representing a decrease of approximately 7.1% as compared to approximately RMB 180.4 million for the corresponding period in 2019.

 

Low Carbon & Ecology Software and Related Services

Demand for low carbon & ecology software and related services has temporarily slowed down in the difficult economic environment. For the six months ended 30 June 2020, revenue generated from low carbon & ecology software and related services amounted to approximately RMB 23.1 million, representing a decrease of approximately 51.8% as compared to approximately RMB 47.9 million for the corresponding period in 2019.

 

Outlook

Although the impact of the pandemic on the economy continues and future challenges will not be resolved in a short period, the Group will continue to adhere to product innovation and optimization to help different clients enhance efficiency and solve management pain points. Meanwhile, by providing more competitive new data products, the Group will further consolidate its market position and strive for rapid growth again.

 

The Group continues to conduct in-depth research in operational difficulties encountered by export enterprises under the severe economic environment and foreign trade situation in the pandemic, and develops application software and big data analytic services that can effectively assist clients in improving their operations and understanding market dynamics. Also, the Group will continue to transform and develop products coping with the informatization demands of enterprises’ domestic trade business, to adapt to market changes under the new economic situation.

 

For the government big data products, the Group will continue to develop and promote products related to social governance and government services that are currently the most in demand by government at all levels. On the other hand, the Group has explored a new development direction for its judicial products by using blockchain technology to concatenate data under the protection of private and sensitive information in legal services, such as judicial authentication and notarization, and in law enforcement to further enhance the overall efficiency and fairness of judicial institutions. This innovative judicial product has been gradually implemented in some regions and will be promoted nationwide in the future.

 

In line with the policy direction of “new infrastructure”, the Group will continue to develop its green industrial internet platform to assist enterprises in improving their production efficiency, enhancing circular economy and achieving sustainable development. The green industrial internet platform has gradually gained support from more customers and will bring new impetus in the future.

 

The Group believes that through leveraging its experience and capabilities in various major business areas and committing R&D in more innovative software and big data products will bring continuous opportunities and maintain long-term healthy business growth.

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