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Sinosoft Technology Announces Interim Results 2021
2021-08-30

(Hong Kong, 30 August 2021) 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 2021.

 

In 2021, although economies, industries, and people’s lifestyles have not yet escaped from the impact of the COVID-19, they are undergoing reform in the changing environment and seeking new opportunities. The Group is actively responding to the market development in this post-pandemic era, investing in R&D in accordance with the policy background and requirements, optimizing business strategies, and launches innovative products and services to lay the foundation for long-term development. For the six months ended 30 June 2021, the Group’s revenue from continuing operations recorded approximately RMB 206.7 million, representing an approximately 5.0% increase year-on-year. Net loss was RMB 28.6 million. Basic loss per share was RMB 2.30 cents.

 

Low Carbon & Ecology Software and Related Services

China’s strategic background of “dual carbon”, which means reaching carbon peaks before 2030 and carbon neutrality before 2060, coupled with the intention to impose carbon tariffs in import markets around the world, have made different enterprises generate keen demand for green transformation and upgrades. Under these opportunities, the Group closely follows policies development and strives to enhance its capabilities in carbon emission “monitoring, reporting, and verification”, to exert efforts at regional and industrial levels continuously.

 

Demand for low carbon & ecology products saw the sign of recovery under multiple favourable policies. For the six months ended 30 June 2021, revenue generated from low carbon & ecology software and related services amounted to approximately RMB 36.1 million, representing an increase of approximately 56.3% when compared to approximately RMB 23.1 million for the corresponding period in 2020.

 

Government Big Data Software and Related Services

In the post-pandemic era, various types of online services have penetrated different communities and grassroots applications are becoming more important. During the reporting period, the Group’s years of accumulated experience and expertise in government services combined with blockchain, knowledge management and remote service capabilities to develop grassroots application products, including i) digital authentication; ii) public service intelligent devices; and iii) city safety governance.

 

Despite the challenging economic environment, demand for the Group’s government big data products remained stable. For the six months ended 30 June 2021, the Group’s revenue generated from government big data software and related services amounted to approximately RMB 170.6 million, representing a slight decrease of approximately 1.8% when compared to approximately RMB 173.8 million for the corresponding period in 2020 (restated).

  

Outlook

Looking ahead, under the backdrop of multiple favourable policies, the Group will conduct in-depth research on market demand and continue to R&D of new products, as well as optimize its business strategies continuously, to launch more innovative products and promote to different provinces, cities, and regions.

 

For the field of low carbon & ecology, following the official launch of the national carbon trading market in July this year, the specific targets and policies for “dual carbon” will soon be released, driving provinces, cities, and parks to generate a wide range of demand for regional digital carbon management. The Group will continue to optimize and promote the “dual carbon” platforms for governments at all levels and different industries.

 

The Group will also continue to emphasize its development of Skytech Green and Low Carbon Industrial Internet platform. After the Reporting Period, the Group entered into a cooperative framework agreement with DNV, and will jointly develop carbon verification, with a focus on three major directions: i) In accordance with the ISO 14064 international standard, to launch enterprise digital carbon audit and verification solution for export enterprises, supply chain supporting companies and listed companies, etc; ii) In accordance with the ISO 14067 international standard, to launch product carbon footprint digital verification solution for export enterprises, supplying companies for leading supply chain, etc; and iii) To provide carbon neutral digital comprehensive solutions for well-known large enterprises.

 

For government big data software and related services, it focuses on public service capabilities to provide SaaS services for grassroots departments. At the same time, based on the Group’s experience in legal services, gridded governance, and city safety forecasting and early warning, to extend the capabilities of government’s upper-level platform to grassroots services, combining the widespread deployment of public service intelligent devices at the grassroots level, to form a recurring profit model. With the impact from the pandemic, the Group’s city safety products which responded to the pandemic and safety incidents during the Reporting Period has achieved a demonstration effect. Together with public service combining big data, and continuous upgrades in blockchain technology extension, the market of grassroots governance in cities across the country will be quickly opened up, and create long term growth for the Group.

 

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