Hong Kong :  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 2013.

— Revenue reached RMB280.8 million, representing an increase of 23.9%

— Net profit after tax crossed the hundred million RMB mark, reaching RMB 100.9 million, representing an increase of 32.4%

— Basic earnings per share for the year ended 31 December 2013 was RMB 11.42 cents, as compared with RMB 10.16 cents for the year ended 31 December 2012.

— The Board has recommended the payment of a final dividend of RMB 1.50 cents per share (2012: nil)

2013 marked a significant milestone for the Group with its listing on the main board of The Stock Exchange of Hong Kong Limited and the continuous rapid growth in business. Driven by varying degree of increase in revenue of all business segments, sales of the Group recorded a year-on-year growth of 23.9% to RMB 280.8 million for the year ended 31 December 2013. The Group has also scaled a new height with the profit after tax crossing the hundred million RMB mark for the first time, reached RMB 100.9 million, representing an increase of 32.4% as compared with the year ended 31 December 2012. Basic earnings per share for the year ended 31 December 2013 was RMB 11.42 cents, as compared with RMB 10.16 cents for the year ended 31 December 2012.The Board has recommended the payment of a final dividend of RMB 1.50 cents per share.

Export Tax Software and Related Services

Export tax software and related services entered another stage of fast growth. During the year ended 31 December 2013, the Group’s revenue generated from its export tax software and related services achieved RMB 67.7 million, representing a growth at 73.7% as compared to the year ended 31 December 2012. As the second largest export province in China, export of Jiangsu Province recorded a year-on-year growth along with China. This in part has helped to contribute to the segment’s revenue growth as export enterprises are more inclined to purchase the Group’s product that can help them better manage with their higher volume of export documents and rebate applications. Under the developing export environment with regulations concerning export tax rebates being amended from time to time, the Group’s training courses relating to export tax rebates had received increasing attention from export enterprises. Revenue from this area has seen an extraordinary increase of 250%, from approximately RMB 4 million for the year ended 31 December 2012 when the training courses debuted, to approximately RMB 14 million for the year ended 31 December 2013. Due to the lower level of research and development costs that needs to be amortised for this segment as a lot of research and development cost has been amortised in the earlier years, segment results margin increased by over 17 percentage points year-on-year to 99.5% in 2013

Carbon Management Solutions

Benefited from the growing attention in environmental protection and carbon emission control across China, revenue generated by carbon management solutions recorded RMB 34.4 million during the reporting year, representing a tremendous growth rate of 158.8% compared to the same period of last year. Apart from providing carbon management solutions to municipal governments, the Group also developed a carbon management platform to monitor carbon emission level of key industries with heavy energy consumption during the reporting period. In addition, part of this growth can be attributed to the start of sales of the Group’s enterprise carbon asset management systems to private enterprises to measure, analyse and control their carbon emissions. The segment results margin for carbon management solutions increased from 71.8% in 2012 to 89.4% in 2013 due to the higher level of sales recognised compared to the rate of increase in the level of research and development cost that needs to be amortised.

e-Government Solutions

The accelerating growth of spending by the government on information technology has promoted the Group’s e-Government solutions. During the year, revenue of e-Government solutions reached RMB 122.5 million, representing a year-on-year growth of 14.4%. Compared to the same period last year, the Group made remarkable progress in expanding the e-Government business beyond Jiangsu Province. e-Government solutions applying cloud-based platform and big data technology were pursued by customers outside Jiangsu Province. In addition, continued purchase of new solutions by larger customers and the addition of new contracts for the existing solutions of the Group have also resulted in the increased sales for this segment. Due to the procurement of mobile devices used in mobile e-Government software, cost of sales of the segment increased and segment results margin recorded 56.2% in 2013.

Looking forward, the Group believes that despite the slowing down of economic growth in China, the central government’s determination for information technology remains unabated. This year’s work report of the PRC government states that its aim is to stabilise and improve its export policy, to speed up the reform of facilitating custom clearing, and to expand cross-border e-commerce; to promote information consumption and to further synchronise between information technology and industry; to promote energy production and consumption pattern reform and to enhance energy saving and emission reduction. In view of this, it is expected that the export tax software, e-Government solutions, and carbon management solutions engaged by the Group will benefit from such future policies. With this favorable business environment, the Group’s strategy which is straight forward and proven – continuous investment in the area of research and development, to stay at the forefront of technology, be sensitive to market needs and to be the first mover in any niche market where the Group has the technology, have placed the Group on the foundation for stability and continued growth.

Source :  ACN Newswire