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Chinasoft Announces 2015 Annual Results: Net Profit Increased 40% YoY

Driven by its Online and Offline Strategy, Chinasoft Sees High Growths Potential
2016-03-22 00:09 3028

BEIJING and HONG KONG, March 22, 2016 /PRNewswire/ -- Chinasoft International (hereinafter referred to "Chinasoft" or "the Group") (SEHK:354) announced its audited 2015 financial results.

In 2015, the Group's businesses grew steadily. The revenue, service revenue, profit attributable to shareholders of the Group, and EPS increased by 15.8%, 16.5%, 40.0%, and 31.1% on a year over year basis. Cashflow from Operations increased to RMB 259.561 million in 2015 from 2014's RMB 74.8 million, achieving a YoY growth of 247.0%.

RMB '000

2015

2014

YoY (%)

Revenue

5,129,111

4,429,202

15.8%

Service Revenue

4,831,722

4,147,015

16.5%

Profit Attributable to Shareholders of the Group

280,056

200,038

40.0%

EPS (RMB)

0.1405

0.1072

31.1%

Operation Cash Flow

259,561

74,796

247.0%

In 2015, the Group restructured to an online and offline business model in order to face the challenges and capture opportunities in Internet, cloud computing, and big data. The Internet ITS Group (IIG) will focus on the online IT businesses while the Technical and Professional Group (TPG) will focus on the traditional technical and professional offline businesses. The IIG is centered on the Jointforce platform in traditional IT services long tail markets, including government and manufacturing. Its competitive advantage will come from its ability to organize businesses online to achieve cost-effective and high quality IT services for small to mid-size companies and individuals. The TPG will focus on large customers and big industries including BFSI, telecommunications, Internet, transportation, energy, and etc. and going global. It will provide a full chain of high quality, efficiency, and secure IT services and provide solutions that are specific to different industries.

Jointforce Commercialized for Half a Year to Realize Real Online Businesses

In 2015, the Jointforce launched its commercial services on June 19 and became the leading IT crowd-sourcing platform in China. There are over 800 teams, 80,000 engineers, and 7,000 companies registered on the platform and its transaction volume exceeded RMB 100 million. In addition, the internationally recognized IT consulting firm, Gartner, released a report with Chinasoft called "Internet + ITS: Jointforce, the Reliable Crowd-Sourcing Platform." In the report, Gartner recognized the Jointforce model and its growth.

The Jointforce platform leveraged Chinasoft's decade long experiences in software services to incorporate basic and value add services to provide a systematic platform services chain for its users.

During the reporting period, the Jointforce's service capabilities and products received full upgrades after numerous updates with its website and mobile application. This improved user experiences and increased information to the users. The quality of the engineers and teams improved due to the increased scrutiny of user registrations. Through collaboration with Shanghai Jiao Tong University, the Jointforce team developed new logarithms to help enterprises in the selection of developers. Increased the online transaction success rate and efficiency by upgrading the platform's core transaction assistant, process to better suit enterprises' management process. In addition, added the online transaction assistant, quality contract template, and personal payments capabilities.  During the reporting period, Jointforce added a new Internet online payment model and introduced online communication community where there are visual and audio conference channels, code testing, code storage, payments, and traces of message in order to help customers to achieve a transparent management process. 

During the reporting period, Jointforce added another value-add service, crowd testing. Through this service, enterprises can receive low cost quality, safety, and capability testing. Jointforce designed an Internet + Accelerator for Wechat corporate accounts and helped small to mid-size company achieve Internet + transformation.

The Group firmly believes that the Jointforce centered online business will achieve explosive growths in the future.

Huawei Became a Shareholder and Offline Businesses Continued to Grow

In 2015, the Group and Huawei continued to work closely on all aspects. From a capital market perspective, Huawei became a strategic shareholder and the Group became the first Hong Kong listed company to have Huawei as a shareholder. From a business perspective, the Group and Huawei expanded into cloud computing, big data, industry 4.0, and other new services. In addition, the Group developed solutions (end to end from resource matching, design, consultation, development, operations, maintenance) that will combine industry solutions and helped Huawei to upgrade its cloud computing and big data capabilities.

The Group continued to be Huawei's biggest outsourcing service provider, and was ranked number 1 according to its quality service provider review with "zero online incidents." The Group was Huawei's enterprise business gold label agent and received its IT product CSP certification. The Group and Huawei successfully won bids for projects over RMB 10 million in the energy and tobacco industry. The Group participated in the Huawei cloud payment system and fulfilled its strategy to "walk the world with Huawei". Lastly, the Group won the best solutions award in the 2015 HCC Financial Services Big Data conferences.

In terms of BFSI, the Group maintained is leading market positions in the credit card, credit financing, and payment and settlement businesses.  In addition, the Group added online recipients, mobile payment, HCE, ApplePay, credit factory, consumption finance, and unified payment products to its business lines and implemented them to banks (domestic and foreign), financial institutes, and consumer finance companies. The finance supply chain line of business successfully implemented its solutions for an energy company, gold manufacturer, super markets, and malls. The financial big data line of businesses established strategic partnership with global enterprises and helped them with framework design and testing. It also helped a number of large scaled state owned banks to identify customers, market effectively, detect risks, and rate credit scores on its mature big data application platform. The risk control and management line of business maintained its leading market position in anti-fraud products and helped different joint-stock banks, city commercial banks, rural credit cooperatives and private banks to build enterprise level risk management platforms. In addition, it developed a credit evaluation data system that combined consumer finance, credit factory, and credit card system to increase clients' credit audit accuracy and therefore reducing the risks. It also helped a large scale state owned bank to implement a full on risk control platform, combining online credit audit, customer behavior analysis, full channel anti-fraud, and etc.

For public transportation, the railway settlement and payment business won the bids for Lanzhou, Xiamen, Guiyang, Changchun, and etc. in 2015.  In the railway transit automatic ticketing line of businesses, the team achieved a breakthrough and made history in the Group by winning consecutive bids in Lanzhou, Qingdao, Chengdu, Changchun, and etc., and started the project for Shanghai Disney.

Although the growth of the Chinese economy is slowing down, the economic structure continues to improve. The new policy of "Internet +" will give rise to new opportunities and the Group will use its online and offline business segments to capture these opportunities to become a Global IT Service Company! 

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

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

Or Chinasoft's Official Website:

http://www.chinasofti.com/superWebCMS/pages/sites/MainSite/html/zh/investor/announcement.shtml

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 31,000 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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