Media Contacts:

SinoCom Software Group Marketing/IR Team

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

 

 

Hong Kong/Beijing/Tokyo, March 31, 2010 –SinoCom Software Group (HKEx: 0299), the leading provider of software development outsourcing & IT support services in China, today announced its audited results for the 2009 financial year. For the whole year ended December 31, 2009, SinoCom’s total revenues were HK$634 million with a net profit of  HK$103 million, 3.55% and 21% down from the previous year respectively, due to the global financial crisis and worldwide trading volume decay.

 

Since the end of year 2008, global software outsourcing industry has been suffering the impact of the world financial crisis inevitably, many non-competitive small & middle sized enterprises have been withdrawing from market while big companies have been unwillingly shrinking their business as well. Outsourcing customers in Japan adopted new strategies consolidating their outsourcing business to suppliers providing excellent services only. SinoCom was a beneficiary under their new strategies enabled it to control the financial crisis impact to a minimum level.

SinoCom’s announcement revealed that Japan was continuously the major market during the year,  it accounted for 91.21% of the total revenues. Despite the downward adjustment of customers’outsourcing policies, revenues from our 5 major clients still maintained at 78.1% of the total revenue. Among which, business with top two customers continuously grew.  It showed that there was impact by financial crisis but to a limited extent only. SinoCom’s position being a core service provider and a main cooperative partner to its clients has never been changed.

 On the other hand, exchange rate of Japanese yen has been soaring up during 2009 that compensated partially losses from real term business decline. According to the announcement, gross profit margin was approximately 30.15% , merely the same level with the preceding year (2008: 30.68%).

 “SinoCom has devoted in Japanese software outsourcing services for more than ten years. During this period of time, we’ve accumulated ourselves with plenty of experiences both in management and business services; we’ve built ourselves up with good enterprise image and won recognition by our customers through persistent hard working. And all of these efforts have laid a solid foundation and finally become our advantages in further developing Japanese outsourcing market。”sited  SinoCom  Chairman & CEO Zhi Qiang Wang. “In future”he added,“SinoCom will continue to focus on Japanese software outsourcing services by increasing investment in the high-end business. After the crisis, outsourcing direction would probably upgrade from current reducing cost to strategic  levels, such as improving business efficiency etc. Thus, SinoCom will go on adapting itself according to different needs of our customers, making structural adjustment in employment and business aspects in order to provide better value-added services for customers. By seizing those opportunities, we believe SinoCom will surely to open a new chapter in the near future.”

 

About SinoCom Software Group

SinoCom Software Group is the leader of outsourced software development services for global customers based in China. With over 3,000 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 634 million HK dollars for the fiscal year that ended 31 December, 2009 and is traded under code 0299 in Hong Kong Stock Exchange Market Main Board.

For more information, please visit www.sinocom.cn.