With 27% Revenue Growth Over The Comparable Period in 2007
Media Contacts:
SinoCom Software Group Marketing/IR Team
Keisuke Kudo kkudo@sinocom.cn
Hong Kong/Beijing/Tokyo, September 26 2008 – SinoCom Software Group (HKEx: 0299), the leader in software development outsourcing & IT support services based in China, announced its unaudited, consolidated interim financial results for the 2008 first half-year ended at June 30, 2008 (2008 1H).
Revenues for 2008 1H were HK$327 million, up 27 percent from the comparable period in 2007. The net profit for 2008 1H recorded HK$61 million, up 25 percent from the comparable period in 2007. Basic earnings per share was 5.42 HK cents (2007 1H: 4.33 HK cents) while diluted earnings per share was 5.36 HK cents, up 26 percent from 4.24 HK cents in 2007 1H.
From business segment perspective, off-shore software development services for Japanese clients and on-site technical services in Japan maintained growth momentum of over 26%, and China domestic business also reported steady results.
The number of SinoCom employees also continues to grow, and as of June 30, 2008 it increased to 3,553, up over 324 people compared with 3,229 as of December 31, 2007.
“We are very proud of the 27% growth achieved in this 2008 first-half under the current tough economic circumstances”, said Zhi Qiang Wang, Chairman and CEO of SinoCom Software Group. “Since the beginning of year 2008, slowdown of global economy became apparent, especially in financial industry sector. SinoCom has many big customers in the financial services industry and we have also been affected by it. Nevertheless, we could maintain steady growth momentum proving that SinoCom’s business basis is solid. I strongly believe that this is a proof that our customers highly evaluate quality of our services. In addition to that, even under the challenging business environment where operating cost and value of Chinese RMB are ever increasing, we could maintain good profitability. The stable profitability of SinoCom also benefits our customers as we can maintain solid support to them with stable business infrastructure. In first-half of 2008, while off-shore development services for Japanese customers, our core business, has continued to demonstrate healthy growth, our on-site engineering services in Japan has also shown impressive growth because of stronger demand to it”
“The second-half of 2008 will be more challenging, with the financial crisis in the US started in this September”, Zhi Qiang Wang continued. “Accordingly, I believe, SinoCom needs to be extremely careful about its operation going forward. However, by improving the quality of SinoCom services further, I am confident that SinoCom can solidify its basis even more. In addition, we are also identifying more growth opportunities in value-added services and consulting services. I believe our future is bright.”
SinoCom Software Group Ltd. 2008 1H Interim Consolidated Financial Results Summary
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2008
1st Half
(Unaudited)
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2007
1st Half
(Audited)
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|
|
|
HK$’000
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|
HK$’000
|
|
|
Revenue
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327,507
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|
258,006
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|
|
Cost of Services
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-218,125
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-148,905
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|
|
Gross Profit
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108,880
|
|
109,101
|
|
|
Other Income/Losses
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13,450
|
|
-14,427
|
|
|
Administrative Expenses
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-36,910
|
|
-37,185
|
|
|
Profit Before Taxation
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85,420
|
|
57,484
|
|
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Profit For the Period
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60,741
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|
48,508
|
|
|
|
|
|
|
|
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Earnings Per Share (Basic)
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5.42
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Cents
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4.33
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Cents
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|
Earnings Per Share (Diluted)
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5.36
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Cents
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4.24
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Cents
|
|
|
|
|
|
|
|
Total Assets
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580,020
|
|
541,567
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About SinoCom Software Group
SinoCom Software Group is the leader of outsourced software development services for global customers based in China. With over 3,300 engineers, it offers off-shore software development services and IT support services for Japanese, US and Chinese companies, and particularly it has been successful in developing many mission-critical applications for leading financial services industry (FSI) companies with its unique software laboratory services. SinoCom generated revenues of 565 million HK dollars for the fiscal year that ended 31 December, 2007 and is traded under code 0299 in Hong Kong Stock Exchange Market Main Board.
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