Media/Investor Contacts:

SinoCom Software Group Marketing/IR Team

Keisuke Kudo kkudo@sinocom.cn+81-3-6206-2175

Zhang Hua Feng zhang-huafeng@sinocom.cn  +86-10-8857-5888

 

26 August 2009 Hong Kong/BeiJing/Tokyo, SinoCom Software Group Limited announced its unaudited consolidated results for the six months ended 30 June 2009 (the “Period”) at approximately HK$324 million, or about 1% decrease over the same period in 2008 and basic earnings per share was HK 3.54 cents. Gross profit margin increased by 1% over the second half of 2009 to approximately 29%. During the period, the financial tsunami has hit the global economy, enterprise in the industy suffered different degrees of impact. The Group recorded only a slight decrease in revenue proved its  advantageous position in the industry.

The major markets of the Group were still Japan and China which accounted for 92% and 8% respectively. Outsourcing software development services accounted for 96% of the Group’s total revenue and approximately 77% of the total revenue were derived from top five clients of the Group.

The worst moment of the recent financial tsunami has been lapsed as to the Group’s software development outsourcing business from Japan, the market will take time to recover from its bottom though. Growth will be picked up gradually at a pace according to economic environment and factors peculiar to different sectors of the industry. The Group not only keeps focusing on the Japanese market, but will also grasp new business opportunities. To cope with new business development and shifted requirement from mid-low end to upstream as a cost saving measure by customers, SinoCom will restructure its human resources pool including recruit more experienced engineers. The average cost per head will increased in a short term but the Group will equip itself for strengthening its competitive edge and hence at a better bargaining position for charge rates in the longer term.

Mr. Wang Zhiqiang, Chairman of SinoCom expressed,“Despite that this uncommon global economy crisis has brought certain challenges to the Company’s business, with its solid development foundation and remarkable operating track records in the industry, this is a good occasion for our business development to start a new page. Recent economic indicators show that the economy in Japan has started to recover. It is encouraging to SinoCom which has its major market located in Japan. To cope with the latest business development, the Company will improve and integrate internal resources to approach potential clients for securing new cooperative plans during the year. Development of domestic software outsourcing service is always one of the Company’s targets. After dedicated effort for a substantial period, the Group has attained qualification for system integration in the Mainland China. This provides a good pre-requisiteto start up its domestic software service business there”.

  The Summary of SinoCom Software Group 2009 First Half Interim Consolidated Financial Results is as shown below.  For its complete and detailed information, please refer to