ChinaSoft International Posts 2013 Interim Results
Aug 22, 2013 (Close-Up Media via COMTEX) --
ChinaSoft International Limited announced its unaudited interim results for the 6 months period ended June 30.
In a release on August 19, the Company noted the summary of financial report of the first half of 2013 is as follows:
For the 6 months ended June 30
(RMB'000) 2013 2012 Growth percent
Revenue 1,371,671 1,173,504 16.9 percent
Service Revenue 1,346,810 1,110,874 21.2 percent
Profit for the Period 80,698 65,437 23.3 percent
Profit Attributable to
Owners of the Group 72,309 59,724 21.1 percent
EPS (RMB Cents) 4.20 3.65 15.1 percent
EBITDA 156,618 141,776 10.5 percent
As a large comprehensive software and information services provider, ChinaSoft has been providing end-to-end software and information services ranging from consulting, solution, and outsourcing to talent training.
According to its interim results announcement, ChinaSoft generated RMB 1.35 billion in the Service Revenue in the first half of 2013, representing an increase of 21.2 percent compared with the same period of last year. Total Revenue was RMB 1.37 billion, representing an increase of 16.9 percent comparing to the same period of last year. Profit for the Period amounted to RMB 80.7 million, representing an increase of 23.3 percent compared with the same period of last year. EBITDA reached around RMB 156.6 million with a YOY increase of 10.5 percent. Since its listing in the Hong Kong GEM board ten years ago, the Company has recorded 37 percent compound annual rate growth in its revenue and 52 percent compound increase in service revenue. As of June 30, there are 18,612 employees in the Company.
Service revenue from its Professional Service Group increased 21.7 percent compared to the same period of last year, while service revenue from the IT outsourcing Group increased by 19.9 percent YOY, and revenue from its Training services increased by 36.7 percent YOY. The Company continues its strategy of having a balanced revenue profile between Solutions services and Outsourcing services, with the PSG group representing 48.4 percent of total revenue while the OSG group representing 48.2 percent. Training business contributed 3.4 percent of the total revenue.
During the reporting period, the Company was awarded the 2013 Wireless Fetion contract by China Mobile. ChinaSoft will provide business construction and support for Mobile Fetion and Fetion HD products to China Mobile. The Company will also provide product design, technology implementation plan and formulate a differentiated competitive strategy. ChinaSoft will provide excellent solutions based on the mobile terminal features, to continuously strengthen IM basic capabilities and provide mobile IM new product features. This one-year contract amounts to approximately RMB 100 million, and is expected to have positive contribution to the Company's overall profitability in the second half of 2013 and beyond.
During the reporting period, the Company registered strong growth in its Banking and Finance, Manufacturing, Energy, as well as its Huawei businesses. Specifically, the Company is seeing measurable results from its energy business (aided by the acquisition it made in late 2012) and the division is starting to make meaningful revenue contributions.
The Company continues to focus on next generation technologies as it makes further progress in bringing Resource One (R1) software family onto the Alibaba Cloud system to provide Java based development service as well as Cloud based SOA service. ChinaSoft's R1 adds functionality and extend scalability, flexibility and simplicity to applications - quickly and reliably. This is an important part of Cloud infrastructure that will be crucial to enterprises as well as government institutions as they migrate or initiate software applications in the Cloud. ChinaSoft is currently actively deploying resources to leverage capabilities from its emerging services team to explore opportunities in the government sector. In fact work has already begun as the Company joins its effort with Alibaba to pioneer into government cloud-based smart city projects.
ChinaSoft strongly believes that all over the world the IT services business model is changing due to the evolution of information technologies like cloud computing, social networking, mobile communications and big data analytics. As part of its growth strategy set in 2011, ChinaSoft embraced the Professional, Outsourcing and Emerging (POE) structure. The Company will pursue growth in its traditional IT professional consulting & solutions business (P) and outsourcing business (O) while pushing into innovative and emerging technologies (E) such as cloud computing and mobile communications. The Company believes that this transformation is in alignment with the strategies of its customers such as Alibaba, China Mobile, Huawei and Microsoft.
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