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Chinasoft International Achieved Remarkable Interim Results in 2017; Revenue Increased by 43.7% YoY

2017-08-23 01:26
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BEIJING and HONG KONG, Aug. 23, 2017 /PR Newswire/ -- Today, Chinasoft International Limited (Chinasoft International /the Group) (SEHK: 354) announced its interim results for 2017.

In the first half of 2017, the Group achieved high growth in business. The revenue and service revenue increased by 43.7% and 42.9% YoY. The profit and EPS excluding share option expenses increased by 37.9% and 16.2% YoY.

RMB '000

2017 H1

2016 H1

Growth %

Revenue

4,145,060

2,884,951

43.7%

Service Revenue

4,047,248

2,832,120

42.9%

Profit for the Period

240,445

218,619

10.0%

EPS (Cents)

10.26

11.04

(7.0%)

Profit Attributable to Shareholders Excluding

Share Option Expenses

311,982

226,292

37.9%

Basic EPS Excluding Share Option Expenses

(Cents)

13.25

11.40

16.2%

In the first half of the year, the Group continued with its dual-wheel online and offline business strategy and sped up the implementation of cloud driven services and digital transformation to service global clients.

In terms of business development, the Group achieved remarkable results in the first half of 2017 because of the high-speed growth of core big customer business, cloud computing, big data and the Jointforce platform. In terms of capital market, the Group received long-term investment from Dan Capital, led by Chen Yidan. The Group's capital market value continues to be widely recognized by investors both at home and abroad.

1. The Cloud Computing Business Continues to Grow Faster

In public cloud, the Group signed a strategic cooperation agreement with Huawei, and became the first partner of Huawei cloud that "shares the same boat". The two parties will launch a comprehensive strategic cooperation in software development cloud, cloud solutions and cloud services, and work together to lead the development of the public cloud industry.

In cloud solutions, the Group and Huawei jointly launched the "smart manufacturing cloud" solution and signed an agreement for it with Jiangsu Economic and Information Technology Commission and a number of prefectural and municipal units in Jiangsu to promote the smart transformation and upgrading of manufacturers.

In the global expansion of cloud services, Catapult Systems, the Group's US subsidiary, won the prize again in the selection and appraisal of Microsoft partners, made considerable progress in expanding cloud business, and became a leader in cloud application, data modernization and cloud migration.

The arrival of the cloud era allows the Group and its years of accumulated cloud servicing capabilities, combined with opportunity to work with Huawei cloud, to accelerate its own digital transformation.

    1. IT Service Upgrade: The Group will combine Huawei Dev. Cloud, public cloud, and Jointforce to shift its services for its long term large clients from traditional IT services to cloud services. Through this, the Group will become a leading domestic cloud service provider.
    2. Cloud-Based Solutions: The Group will transform its traditional offline industry solutions to cloud-based solutions, taking smart manufacturing as an example. This will help the Group to realize revenue structure optimization and business model upgrade.
    3. Jointforce Ecosystem Operation: Jointforce will establish 18 offline operation bases, and through its online and offline operations, link up 30,000 independent software developers from almost 300 software parks in China to form the largest, most active software service ecosystem in China.

2. A New Era: Jointforce 2.0

During the reporting period, Jointforce's core product capabilities was comprehensively upgraded, extended and strengthened on the basis of carrying out the original business model. Jointforce launched new WeChat small program, service number, App and the new version of the official website. Jointforce will upgrade its commission model into membership and store service model, thus entering Jointforce 2.0 from the previous era of 1.0.

During the reporting period, Jointforce and Huawei software development cloud launched a mission-level strategic cooperation, further bundling the functions and services of both parties, and jointly created a new customized software development ecosystem. As the Jointforce heavily promoted its Cloud Software Park this year, the Group has successively signed cooperation agreements with four cities including Qingdao, Xi'an, Nanjing, and Xuzhou and will carry out leading comprehensive cooperation in industrial training, personnel training and the construction of the smart software park in the future.

With the Group's globalization, the rapidly growing Jointforce will actively expand in domestic and overseas markets, create stronger and more efficient digital workforce, and promote the software development industry to usher in smart upgrading. The Group will output nearly twenty years of experience and ability in software service to empower a number of small IT enterprises and help them develop toward "being small and beautiful". Furthermore, it will also achieve the transformation from "a big Group" to "a large platform".

3. The Leading Industry Business Continued to Grow While Industry Market Share Continued to Improve

In the telecom sector, the Group and Huawei's strategic partnership strengthened. Furthermore, during the reporting period, the Group continued to expand its China Mobile and China Telecom's businesses.

In the financial sector, the Group continued to deepen its cooperation with HSBC, and constantly expanded the scope of cooperation. During the reporting period, a new generation of mobile phone banking system Mobile Z of HSBC China has been launched. The system has successfully integrated the latest technology of face recognition, artificial intelligence, "React", cloud technology, etc. which is the first product which was completely developed by the Group's team. After its launch, Mobile Z has received wide acclaim from both customers and users, which fully demonstrated the strength of the Group in its HSBC business.

In Internet and high-tech sector, the Group became a class-A supplier in Tencent's supplier rating, and the Group's Alibaba team was ranked #1 in non-technical category of Ali's semi-annual assessment. Lastly, the Group has continued to deepen cooperation with Baidu, and maintained a stable position in Baidu business.

For big data, the Group's big data team expanded to over two thousand members. Furthermore, the big data business maintained its leading position in the finance sector, and achieved breakthroughs in big data platforms in energy, transportation, media, police, and other industries.

For artificial intelligence, the Group continued to provide IT technology support in speech recognition for the world's leading software companies, and used artificial intelligence + cloud platform modeling technology to improve the accuracy of its speech recognition. Based on the new technologies such as artificial intelligence and big data, the Group developed a new type of AI recommendation system, which has greatly improved the accuracy and efficiency of system dispatch and matching recommendation for the Jointforce. In financial sector, the Group created a new generation of ATM solution--mVTM. It is a new generation of visualization ATM system, which supports the new technologies such as face recognition and has aroused widespread acknowledgements in the industry.

For overseas business, the Group signed a principal framework service protocol with Singapore Power during the reporting period to provide comprehensive services for them. The BPO business for Japan of the Group has developed steadily and Microsoft's business returned to growth track. The Group has continued to improve its global blueprint, built the India and Romania center, and implemented projects at those centers.  

Looking at the second half of the year, the Group will accelerate the promotion of smart manufacturing cloud in key provinces and cities, continue to cloudify mature offline solutions, drive more customers and partners to migrate on the cloud, and build "1+1+N" cloud ecosystem. Furthermore, it will continue to promote the implementation of cloud software park business of the Jointforce in more software cities to help traditional software parks to achieve transformational upgrades. In addition, the Group will also make greater efforts to develop overseas market, and promote solutions and cloud services capabilities to go global, build China's influence in the world's IT, drive the digital transformation with cloud, and accelerate its growth into a world class IT enterprise with great comprehensive strength and outstanding innovation ability!

For More Information on the Interim Results, Please Visit HKEX's Website:

http://www.hkexnews.hk/listedco/listconews/advancedsearch/search_active_main.asp

About ChinaSoft International Limited (SEHK:354)

Founded in 2000, ChinaSoft International Limited is a listed company on the Hong Kong Stock Exchange with its code of 354.HK. It is a large China based comprehensive software and information services provider, ranging from end-to-end services of consulting, solution, outsourcing and talent training. It serves clients in manufacturing, finance, telecommunication, high-tech, transportation, energy and also the government. The Company provides global services to over 100 multinational companies with close to 50,000 employees located worldwide including mainland China, Hong Kong, Princeton, Seattle, London, Tokyo and etc. For more information, please visit www.chinasofti.com.

Source: ChinaSoft International Ltd.

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