BEIJING, Feb. 16 /Xinhua-PRNewswire/ -- Yucheng Technologies Ltd. (OTC Bulletin Board: YCHTF; OTC Bulletin Board: YCHWF) is a leading IT solutions and services provider to China's banking industry. Through its operating subsidiaries, the company provides a comprehensive suite of products and services to China's banking industry, from system integration, IT consulting, software solutions and outsourced operations, of which its web banking solution enjoys 70% market share on an end-user basis.
Since the merger agreement that was signed on December 20, 2005 between the 2 Chinese operating companies, Beijing Sihitech and e-Channels and the OTCBB listed shell company China Unistone, the operating companies have been consolidating its operations to become more efficient in its service offerings and draw on its strengths to expand its product offerings and client base. To date, the company sees a positive trend in its operations due to the consolidation and growth. Based on the preliminary unaudited financial statements of its Chinese operating companies for the full year 2006, excluding the merger transaction costs and the shell company's result, Yucheng management is pleased to announce that the Chinese operating companies achieved 57% growth in revenue to RMB 310.6 MN (US$ 39.8) and 94% growth of net income to RMB 47.7 MN (US$ 6.1 MN). Of the total revenue, system integration, IT consulting, and software and outsourced businesses contributes RMB 197.8 MN (US$25.3MN), RMB 62MN (US$7.9MN), and RMB 50.8MN (US$6.6MN) respectively. The Yucheng Chinese operating company achieved gross margin of RMB 87MN (US$11.1MN), of which system integration, IT consulting, and software and outsourced operation contributes RMB 24.9MN (US$3.2MN), RMB 30.7MN (US$3.9MN), and 31.4MN (US$4MN) respectively.
Mr. Weidong Hong, the CEO of Yucheng Technologies stated "We continue to see the benefits from the combination of Sihitech and e-Channels, as well as the latest acquisition of Sunrisk, through our increased resources, including staffing, product offering diversity and capital. We believe that 2006 is a stellar year on a combined basis of the Chinese operating companies, evidenced by a solid step forward in the migration up the product value chain to high-growth and high-margin non-system-integration businesses. Looking forward, we believe that 2007 will also be a successful year as the company draws on its resources to expand its client base and continues to leverage our combined and newly acquired companies' cross-selling opportunities to gain market share."
The audited financial statements will be included in the 20-F form required for Yucheng to file by June 30, 2007.
About Yucheng Technologies Ltd.
Yucheng Technologies Ltd. is an IT solution and services provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has established an extensive footprint to serve its banking clients nationwide with five subsidiaries and representative offices located in Shanghai, Guangzhou, Xian, Xiamen, and Chengdu. Yucheng currently has more than 630 employees across China. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks from system integration and IT consulting, to IT solutions, software platform, and outsourced operations. Yucheng counts 12 out of the 15 top commercial banks in China as its customers. Yucheng is especially strong in banking channel management IT solution and services, such as web banking and call centers. The newly acquired risk management practice will enable Yucheng to reap the benefits of exponential demand for building up risk management by Chinese banks driven by its profit conscientiousness and Basil Accord II compliance. It has the largest market share in the web banking application market in China by user base according to a third party research report. Yucheng is ranked one of the top five IT solution providers, along with IBM and Digital China by IDC's "China Banking Industry IT Solution 2006-2010 Forecast and Analysis" report released in September 2006. Yucheng management team consists of industry veterans with extensive experience in serving the Chinese banking industry.
Forward-Looking Statements
This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project" or "continue" or the negative thereof or other similar words. Such forward-looking statements, based upon the current beliefs and expectations of Yucheng's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: current dependence on the PRC banking industry demand for the products and services of Yucheng; competition from other service providers in the PRC and international consulting firms; the ability to update and expand product and service offerings; retention and hiring of qualified employees; integration of the Sunrisk into Yucheng business; protection of intellectual property; creating and maintaining quality product offerings; operating a business in the PRC with its changing economic and regulatory environment; and the other relevant risks detailed in Yucheng filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Yucheng assumes no obligation to update the information contained in this press release.
For more information, please contact:
In Beijing, China
Ms. Wei Peng
Investor Relations, Yucheng Technologies Ltd.
Tel: +86-10-6442-0533
Email: pengwei@yuchengtech.com
In the U.S.A.
Mr. Jim Preissler
Director, Yucheng Technologies Ltd.
Tel: +1-646-383-4832
Email: jim@yuchengtech.com
