ChinaSoft International Recorded an over 20% increase in 2013 Service Revenue & a 33% increase in Profit for the Period Developing Cloud-Based Crowd Sourcing Platform - JointForce. Aiming for Social Based Innovative IT Services Model.
BEIJING and HONG KONG, March 26, 2014 /PRNewswire/ -- ChinaSoft International Limited ("ChinaSoft" or "the Company") (SEHK:354) today released its 2013 Annual Result for the year ended December 31, 2013.
For the year ended December 31, 2013, the Company recorded service revenue of RMB 3.07 billion, an increase of 20.2% compared to the same period in 2012. Profit for the year increased by 33.2% to RMB 200 million. At December 31st 2013, the Company had over 23,600 employees.
The Company's management believes that revenue growth currently is still linear in respect to the number of Company's software engineers. The company and the IT industry face a common pain point: that clients are constantly looking for better quality services while software engineers are constantly looking to earn more money; all the while IT service enterprises are looking for ways to lower labor costs and improve productivity. To solve this issue, the Company invested and developed the "JointForce" cloud based crowd-sourcing platform in hopes to "break through" the current industry status quo and provide an efficiency platform for the IT service enterprises. This would be a new working platform for software engineers and also a service-providing platform for customers. In JointForce large projects are subdivided and smaller tasks are posted onto the platform. Software engineers, internally from within the Company or invited engineers from outside, are free to choose the tasks they like. The platform will provide tools to allow engineers to manage themselves. The platform will also serve as a motivational source for a more proactive and efficient workforce. The Company, customers, and other IT companies can rely on the social project management tools on JointForce platform and submit quality "delivery guarantee" function to ensure quality delivery completion. The management believes that the introduction of "JointForce" will not only generate additional revenue for the Group, but also transform customer experience and revolutionize the IT services industry. Dr. Chen Yuhong, Chairman of the Board of ChinaSoft International stated, "We must change our growth strategies to double our topline revenue and reach RMB 10.0 billion target. We will use the JointForce platform as a means to achieve our new goal and rapidly increase our revenue and profitability. We will start with constructing a municipal cloud network, using Ali-Cloud and partnering with other cloud leaders as well as local software delivery capacities. We plan to harness the power of JointForce to minimize per-location cost while benefiting our local partners, and in the process create a crowd-sourcing delivery eco-system. This will 'liberate' the IT service industry, and achieve the ideal that will allow all engineers to be prominent and all customers to be VIP's."
For the year ended December 31, 2013, ChinaSoft's net profit attributable to equity shareholders was RMB 148 million, up 11.3% YoY. One notable item is that this figure for 2013 includes the effect of profit sharing on the JV with Huawei (ChinaSoft 60% - Huawei 40%). Excluding the effect from the Huawei JV, Net Profit attributable to Equity Shareholders would have been RMB $188 million compared to RMB 133 million in 2012, an increase of 41% on a year over year basis.
In 2013, the Company received the top grade as suppliers for Huawei's main product line and main research institute. The Company believes that under the "tutelage of master," the Company's professional services capabilities have improved profoundly. In the reporting period, the Company participated in Huawei's cloud payment project, and became part of the supply chain layout. The Company hopes to eventually create its own system throughout Asia, Europe, and South America. In addition, the Company acquired Catapult Systems, an American cloud integration service company. The professional and outstanding management of Catapult will surely stir up the Company's passion for expansion in the global markets. Leveraging what the Company learned from Huawei in respect to professional service capabilities, combined with Catapult's advanced management expertise and experience in matured markets, the Company will push its service to a broad and high potential market.
The Company believes that 2013 was the starting year for "Internet Conversion of Traditional Industries." Social, mobile, analytics, and cloud technologies are riding at the forefront of this transformation, and the Company is in position to capitalize on this opportunity due to the foundation it has built in mobile and cloud technology. Cloud computing and cloud services are the future of the industry. Since entering into a strategic partnership with Ali-Cloud two years ago, the Company has seen fruitful results in cloud integration service, cloud middleware platform, government cloud, and cloud applications. During the reporting period, the Company worked closely with Ali-Cloud in Zhejiang Province e-government pilot projects, CITIC 21CN drug regulatory cloud platforms and other projects. This established ChinaSoft's competitive advantage in cloud integration service and government cloud. Mobile Internet is IT consumerization's core strength, and the Company has already had a breakthrough after it acquired MMIM to develop mobile Internet services. In the reporting period, the Company won the bid for ChinaMobile's Fetion mobile client development and support project, as well as mobile unified payment, wireless cities and other strategic projects. This allowed the Company to become a core technology service provider to ChinaMobile. During the Company's fifth strategy day in December of 2013, the Emerging Services Group with SMAC capabilities was established, sending the Company on a new development journey.
Year 2014 will be a historical year for ChinaSoft. Through the foundation laid in years past, the Company will begin its transformation to a platform driven service model. It will surely be worth the wait!
ChinaSoft strongly believes that all over the world the IT services business model is changing due to the evolution of information technologies like cloud computing, social networking, mobile communications and big data analytics. As part of its growth strategy set in 2011, ChinaSoft embraced the Professional, Outsourcing and Emerging (POE) structure. The Company will pursue growth in its traditional IT professional consulting & solutions business (P) and outsourcing business (O) while pushing into innovative and emerging technologies (E) such as cloud computing and mobile communications. The Company believes that this transformation is in alignment with the strategies of its customers such as Alibaba, China Mobile, Huawei and Microsoft.
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About ChinaSoft International Limited, "CSI" (354.HK)
Founded in 2000, ChinaSoft International Limited is a listed company in the Hong Kong Stock Exchange with its code of 354.HK. It is a large Chinese comprehensive software and information services provider, ranging from end to end services of consulting, solution, outsourcing and talent training. It serves clients including government, manufacturing, finance, telecommunication, high-tech, transportation as well as energy. It provides global services to over 100 multinational companies with 23,607 employees located worldwide based in 25 cities including mainland China, Hong Kong, Princeton, Seattle, London, Tokyo and etc. For more information, please visit www.chinasofti.com.
SOURCE ChinaSoft International Ltd.