BEIJING, June 17 /Xinhua-PRNewswire/ -- eFuture Information Technology Inc. (Nasdaq: EFUT) (“eFuture”), a leading provider of front-end supply chain management software and services in China, today announced it has signed contracts to provide logistics software licenses and digital picking equipment to WuShang BulkSale Chain Co., Ltd. (“WuShang”), a subsidiary of Wuhan WuShang Group Holding Co., Ltd. (“WuShang Group”). Combined, these contracts will provide a logistics resource planning software solution (eFuture ONE LRP), including main subsystems such as a warehouse management system (“WMS”), digital picking system (“DPS”) and radio frequency (“RF”) point system for WuShang’s Gaoqiao distribution center. These contracts build on a previous contract to provide WuShang with logistics consulting services.
“eFuture’s innovative logistics resource management solutions will enable WuShang to drive consistent execution of strategic logistics management and achieve substantial inventory reductions to enhance overall profitability,” said Mr. Adam Yan, chairman and chief executive officer of eFuture. “Our April 2008 acquisition and successful integration of Proadvancer Systems has allowed us to provide valuable and comprehensive logistics services in addition to our leading portfolio of supply chain management software solutions, enabling us to better serve our existing customers and opening up new opportunities for future customers.”
In 2007, eFuture’s Logistical Business Unit, formerly Proadvancer Systems, Inc., acquired by eFuture and accretive to eFuture’s 2008 earnings per share, provided consulting services for WuShang’s Gaoqiao distribution center including floor layout planning and construction, business process reengineering, comprehensive workflow transformation planning and on-the-spot operation guidance.
“eFuture’s logistics resource management solutions will help us visualize and quantize logistics fees in order to increase efficiency and reduce costs,” commented Ms. Lin Fang, WuShang’s vice president. “During peak periods, such as vacations, we have to add additional labor to handle the four to five fold increase in deliveries of goods; while in the slack season, workloads decrease significantly. eFuture’s solution will allow us to maximize the efficiency of our regular staff and add temporary headcount to meet excess demand at more predictable levels.”
eFuture expects all of its projects for WuShang to be completed and operational by August 2008. Upon completion, the distribution center, which will cover approximately 180 acres of land, will process more than 17,000 types of stock keeping units (“SKUs”), of which 3,000 types will be present in the distribution center at any given time. The distribution center’s average turnover cycle is expected to decrease by approximately 10 days.
Beginning in 2002, Wushang Group deployed the eFuture ONE POS-ERP R2000 system and eFuture ONE BI V3 business intelligence system for its department stores. In July, 2005, WuShang Group deployed eFuture’s eFuture ONE POS-ERP R2003 and eFuture ONE SCM V3 at WuShang’s headquarters and 43 hypermarket stores.
WuShang Group announced that it plans to open up to 100 stores with expected revenue of RMB20 billion by 2011, according to its five-year development plan released on Feb 28, 2007.
Wuhan WuShang Group Holding Co., Ltd. (“WuShang Group”)
WuShang Group is one of the largest retail and logistics chains in Central China with reported total revenue of over RMB9.2 billion in 2007 and is China’s 27th largest chain store, according to studies conducted by China Chain Store & Franchise Association (“CCFA”). WuShang Group was the first retail industry stock listed on Shenzhen Stock Exchange, with ticker “000501.” Currently, Wushang operates 43 hypermarket stores selling 25 categories of items, including over 40,000 packaged food items, daily necessities and fresh goods, covering a total area of 76,000 square meters and employs over 15,000 people with total sales of RMB 4.39 billion in 2007.
For more information about WuShang Group, please visit http://www.wushang.com.cn/.
About eFuture Information Technology Inc.
eFuture is a leading provider of front-end supply chain management software and services in China. eFuture provides integrated software and service solutions to manufacturers, distributors, wholesalers, logistics companies and retailers in China’s front-end supply chain market, especially in the retail and Fast Moving Consumer Goods (‘‘FMCG’’) industries. eFuture currently serves more than 1,000 clients, including Fortune 500 companies, over 770 retailers and over 200 distributors operating in China. eFuture is also one of IBM’s premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. The company has over 650 employees and 20 branch offices across China.
For more information about eFuture, please visit
http://www.e-future.com.cn .
Safe Harbor
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will, “ “expects, “ “anticipates, “ “future, “ “intends, “ “plans, “ “believes, “ “estimates” and similar statements.
Specifically, the following sentences contain forward-looking statements:
“eFuture’s innovative logistics resource management solutions will enable WuShang to drive consistent execution of strategic logistics management and achieve substantial inventory reductions to enhance overall profitability.”
“eFuture expects all of its projects for WuShang to be completed and operational by August 2008. Upon completion, the distribution center, which covers approximately 180 acres of land, will process more than 17,000 types of stock keeping units (“SKUs”), of which 3,000 types will be present in the distribution center at any given time. The distribution center’s average turnover cycle is expected to decrease by approximately 10 days.”
“WuShang Group announced that it plans to open up to 100 stores with expected revenue of RMB20 billion by 2011, according to its five-year development plan released on Feb 28, 2007.”
eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to first parties. Statements that are not historical facts, including statements about the company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture’s anticipated growth strategies; eFuture’s future business development, results of operations and financial condition; expected changes in the company’s revenues and certain cost or expense items; eFuture’s ability to attract customers and leverage its brand; trends and competition in the software industry; the company’s ability to hire, train and retain qualified managerial and other employees; the company’s ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the expected growth of the Chinese economy and software market in the retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.
Further information regarding these and other risks is included in eFuture’s annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of June 17, 2008, and the company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.
For investor and media inquiries please contact:
eFuture Information Technology Inc.
Tel: +86-10-5165-0998 x8804
Email: ir@e-future.com.cn
Andrew Keller
Ogilvy Public Relations Worldwide, Beijing
Tel: +86-10-8520-3112
Email: andrew.keller@ogilvy.com
