2011 Interim Results of ChinaSoft International Service Revenue Records 43.3% YOY Growth and Gross Profit Up 48.7% YOY
BEIJING, HONG KONG and NEW YORK, Aug. 8, 2011 /PRNewswire-Asia/ --
Financial highlights are provided in the following table:
In RMB thousand
Non-GAAP operation profit*
Non-GAAP net profit** and EPS (excluding preferred shares valuation impact): RMB 60,589,000 and RMB0.048.
* Non-GAAP operation profit means EBITDA excluding share option expenses, net foreign exchange loss (gain) and provision for doubtful debts.
** Non-GAAP net profit means net profit excluding changes in fair value of redeemable convertible preferred shares.
ChinaSoft International Limited (354.HK) (hereinafter, "ChinaSoft" or the "Company") today announces its unaudited interim results for the period ended June 30, 2011. The company's business has continued to experience a fast and health growth. Revenue, Service Revenue and Results all reported a sharp increase compared with the same period of last year, with over 12,000 staffs globally. The Company realized approximately RMB 852 million in the service revenue, representing an increase of 43.3% compared with the same period of last year. The gross profit amounted to around RMB 308 million, representing an increase of 48.7% compared with the same period of last year. The segment results reached around RMB 103 million with a YOY increase of 48.7%. All business lines achieved a significant growth. The service revenue of the government and manufacture line increased by 37.7% on a year over year basis, the YOY increase of 31.7% for the finance and banking line, and YOY increase of 50.9% for the information technology outsourcing line. The growths were driven by the continued growth of existing business as well as the contribution of new mobile internet business in outsourcing services. The training service revenue rose by 34.5% compared with the same period of last year, with the number of cooperated universities reaching 382.
In the future, the Company will pay attention to the potentially high-growth sectors in the market. Based on the key development areas in China's 12th Five-Year Plan, it will expand the service catalogue, increase regional coverage and continuously invest in knowledge-intensive service industries and areas with high growth potentials in information technology field. It will adhere to advance the expansion model of R1, a self intellectual property, connecting to SOA framework service to realize the sustainable growth of the company's revenue leveraging on the advantages of existing industry verticals layout. The Company will grasp the huge business opportunities brought by telecommunication value-added business and mobile Internet market to expand market share. The Company will further look for strategic joint ventures and alliances to expand business scope in areas with a fast growing IT demand both in China and overseas. It will improve business layout and strengthen competitive advantages.
The Company will deeply explore the business potentials, enhance corporate management, reduce operating cost and further increase profitability. The company will raise the proportion of services with high gross margin and constantly develop and improve high value-added business such as consulting and technology services. The Company will raise the gross margin by increasing the reusability of its solutions as well as the proportion of high margin clients. The implementation of the ERP (Enterprise Resource Planning) system is a key project to strengthen the company's management capability and improve the working procedure such as human resource, finance, sales and procurement, hence to improve efficiency and operational management and save the administration expenses. In order to improve the gross profit, the Company will unswervingly adhere to establish the delivery centers in the tier-three cities in China. It will significantly reduce the staff costs as the tier-three cities offer lower human resource costs and environment costs as well as preferential policies. The release of V5.0, the fast development tool of BizFoundation (a R1 series product) will greatly improve the development efficiency. It is a powerful tool to support the implementation of strategy of shifting to the tier-three cities.
During the reporting period, the Company introduced Hony Capital, sponsored by Legend Holdings, as its strategic investor. By using Hony Capital's brand, its industry reputation and abundant resources in the capital market, the Company aims to optimize its shareholder structure, consolidate the information service industry through ChinaSoft acting as an enterprise platform and accelerate the pace of the Company to become the world's leading enterprise in the high growth information technology industry. The Company will further cooperate with strategic investors such as Hony Capital, Micosoft and combine resources from various sides to make a breakthrough in both its business volume and business model.
About ChinaSoft International:
ChinaSoft International Limited, "CSI" (354.HK), is a global Information technology service company rooted in China with end to end service capability. The major verticals we cover are: Government and Manufacturing, Finance and Banking, Telecommunications and High-Tech. The Services we offer include: IT consulting, IT technical service solution and IT outsourcing service. CSI has around 12,000 employees located worldwide, including 25 cities in China, Princeton, NJ and Seattle, WA in the US, as well as Tokyo in Japan and London in England.
SOURCE ChinaSoft International Ltd.