BEIJING and HONG KONG, Aug. 23, 2016 /PRNewswire/ -- Chinasoft international (hereinafter referred to as "Chinasoft" or "the Group") (SEHK: 354) announced its unaudited financial results for the first half of 2016.
During the first half of 2016, the Group's businesses achieved high growth. The Group's revenue, service revenue, EBIT, net profit attributable to the shareholders of the Group, and EPS increased by 21%, 29%, 57%, 69%, and 53% respectively. The Group's revenue, service revenue, EBIT, net profit attributable to the shareholders of the Group, and EPS were RMB 2.88 billion, 2.83 billion, 310 million, 240 million, and 11.04 cents respectively.
I. Internal Restructure Proven Effective, Two-Wheel Strategy Taking Off
After the efforts over the past 18 months, Chinasoft's new corporate structure is now in place. As the "two-wheel" strategy is implemented, the difference between the two business models of the two segments is becoming apparent, and the characteristics contrast is also becoming more clear and pronounced. We are now well on our way to what Gartner suggested as the Bimodal framework for IT Services: Mode 1 for traditional IT service model which has clear requirements and targets that can be organized with industrial IT methodologies, and Mode 2 for innovative service models that utilizes efficiencies in digital technology, agile payment and revenue models and crowd sourcing for resource management. TPG and IIG also have distinctive characteristics for business positioning, customers, markets and competitive environments, services, models, processes, core technologies, and talent requirements.
II. The Spinoff of TPG to A-Shares to Benefit the Group's "Two-Wheel" Strategy and Match the Interests of Long-Term Investors
Recently the Group announced the proposal to Spin-Off and to relist of our TPG business on mainland's A-share market. This is a fitting strategic arrangement of our "two-wheel" strategy. In the past two annual reports we have conveyed that the Group will work to utilize various capital platforms, and this transaction is the result of our decision to make such a move. We believe this is in the best long term interest of our shareholders.
In short, the two business groups will be more focused and grow at a faster rate. Then the shareholders will reap the benefits of a higher EPS growth!
III. Jointforce's One Year Anniversary
Jointforce is the core of the IIG. One year later, our Jointforce crowd sourcing operating platform has achieved tremendous progress in both large scale operation capability and efficiency. During the reporting period, Joinforce continued to aggregate IT resources from all industries, technical categories and regions, and now has over 100000 registered and experienced software engineers (bidding parties). It also has over 2000 enterprise customers and over 800 IT project teams. Of these registered engineers, over 60% has more than 3 years of experience, and 19% has over 8 years of experience. Through efficient use of the resources, Jointforce is effectively solving the problem of how to "re-use code" by "re-using" the programmer who has done this code before. The system also provides detailed descriptions of the professional experiences of the resources, thereby allow easy identification and selection for the contract awarding party.
Since Jointforce commercialized one year ago, more and more customers use the platform to satisfy their IT needs. Large IT companies like Founders Electronics, Yongyou Financials, Lanxum, and Huayu Software have developed their own software through resources found on the Jointforce platform. The platform provided them with a coordinated cloud environment that enabled the development and the delivery of projects to be transparent.
Jointfoce also satisfied the needs of China Shipping, China Nuclear, and other central IT services departments, along with the IT demands of traditional markets such as entertainment, media, education, healthcare, logistics, retail, tourism, and etc. By working with Jointforce, these traditional industry customers are able to exploit the platform's attributes such as low cost delivery, large resource available area, flexible timing, vast selection of mature solutions and project cases. This greatly helps these customers with additional development resources and customization of mature solutions, including smaller modules such as order management, inventory management, e-commerce, remote diagnostics, and online tourism.
Jointforce was able to make significant contribution to Internet finance companies, enterprise SaaS companies, Internet gaming and e-commerce and other innovative startups and entrepreneurs, including North Ming Yi, Kanxindai, to name just a few. To the innovative startups, Jointforce allows them to find mature and experienced software developer talents, ensuring internet platform to quickly achieve operations. Jointforce is also actively responding actively to the national Innovation-Entrepreneurship movement, collaborating with many Innovation-Entrepreneur leagues and associations, such as Zhong Guan Cun Internet Finance Service Center, Dalian IT Services Association, Xi' An Software Industry Association, University of Tianjin Software Club and etc. Jointforce provides services related to software development, help these organizations to monitor key market innovations and quickly capture market opportunities.
2016 is the first year for our Jointforce, and it is also the most critical year for our "Starting Again" phase. For the first half of the year we have seen satisfactory progress, so let us anticipate the second half, anticipate a great harvest and an all moving forward 2016.