Chinasoft International Announces Gratifying 2016 Results, EPS Increased 45% YoY

BEIJING and HONG KONG, March 27, 2017 /PRNewswire/ -- Chinasoft International (Chinasoft/ Group) (SEHK: 354) announced its audited 2016 annual results today.

In 2016, the Group's businesses achieved high growths. The Group's service revenue was RMB 6.57 billion, representing a YoY growth of 36% and 113x growth since listing in 2003. Profit attributable to the owners of the Company was RMB 440 million, representing a YoY growth of 58%. EPS was RMB .2034, representing a YoY growth of 45%.

Furthermore, the Board has agreed to issue dividend of HKD 0.012 per share for the year 2016.

The year 2016 was an integral year for the Group as it initiated its strategic transformation to become a world class IT service enterprise. After a relentless year, the Group achieved breakthroughs in business developments and the capital market.

In terms of business developments, the Group's dual-wheel growth strategy of online and offline business paid off and the operating results increased rapidly. In terms of the capital market, the Group was incorporated into the "Shenzhen -- Hong Kong Connect", and is recognized by international and domestic investors.

I. Jointforce Expanded Rapidly and Entered into an in Depth Strategic Partnership with Huawei Software Development Cloud

In 2016, Jointforce became more recognizable and influential as its business expands. As of the end of 2016, there are over 1,000 teams, close to 3,000 companies, and more than 130,000 engineers available on the platform. There are close to 20,000 contracting companies posting over RMB 600 million worth of contracts on the platform, fully verifying the IT Model 2 (transformational and innovative IT development). Furthermore, Jointforce and Huawei Software Development Cloud entered into an in depth strategic cooperation to help transform and improve productivity in the software industry through a customized software development ecosystem, and aim to disrupt and revolutionize the software industry.  

Jointforce is currently in 387 cities, and soon it will participate in regional smart city construction. Chinasoft is resolved to be Huawei's cloud strategic partner, leveraging on its long accumulated core capabilities and ecosystems, to increase unique competitive advantages in cloud migration and integration, big data city operations (new smart city), smart manufacturing cloud, educational cloud, and other industry specific cloud solutions. The Group will utilize and improve its ResourceOne platform to work with Huawei's PaaS level products, and through Jointforce, provide more application and operational management services in order to satisfy end customers' satisfactions. The Group plans to be Huawei's cloud co-partners that "share the same boat."

II. Multiple Business Lines Explode, Maintain IT Industry Leading Position

In 2016, the Group's relationship with Huawei continued to strengthen. The Group formed a big data innovative laboratory in Xi'an with Huawei, and entered into the financial industry as Huawei's core big data solutions provider, setting a solid foundation. In the future, the Group will leverage the digital "one belt one road", the years of experiences working with Huawei, and speed up the Group's global expansion plans.

In the finance industry, Chinasoft was appointed as the only strategic partner with HSBC Global in China, representing the Group's quality and delivery capabilities being recognized by HSBC. The Group helped HSBC global to complete its full global coverage services through successfully delivering different products and systems.

In the IT and high-technology industry, the Group became the highest level of channel partners with Tencent Cloud, and the two parties agreed to build an "Internet +" enterprise ecosystem. Furthermore, the Group successfully partnered with JD Cloud in hopes to build a public cloud partnership ecosystem.

In the insurance and securities industry, Chinasoft strengthens its client partnership for the core insurance businesses and successfully attained Haitong Securities, Sinolink Securities, and other large industry clients. The Group launched its "Shenzhen -- Hong Kong Connect" solution, and initiated the second phase of Internet communication between the A-share and H-share market.

In the public industry, the Group maintained its leading position in the railway transportation sector. When Xiamen was hit by the strongest typhoon, "Morlandi", in 2016, the China restored Xiamen's BRT system for insured route guidance operations in 5 BRT lines and 42 stations. This capability to react in an urgent manner received high praises from the customer.

For cloud migration, Chinasoft during the reporting period migrated over 1,600 servers and machines, completing 151 projects and 545 systems for its clients. Aimed at the customized mid to large enterprise services, the Group helped a government client to migrate two levels of system (national and provincial) to the Huawei Cloud. This became a domestic government industry-benchmarking project. For cloud storage, Chinaosft successfully pushed out its own enterprise disk products, and attained benchmark clients like China Merchant Bank and Vanke. 

In the artificial intelligence (AI) segment, Chinasoft provided a world-famous software company with voice recognition technology support. The Group used a pioneering cloud platform to more accurately identify the different languages. This is a huge project for the software company in the AI voice recognition field.

In 2016, Chinasoft received the first batch of national information systems integration and services of large-scale enterprise qualification, and was awarded #18 in the "Top 100 Chinese Software Company Revenue" ranking issued by the Ministry of Industry and Information. This signifies the Group's technological capabilities and its leading IT service position. 

III. Big Data Strategy Accelerates to Become a Huge Growth Engine in the Future

In 2016, Chinasoft established an advantageous and unique industry crossover big data servicing capability and achieved a key breakthrough in the financial industry. Leveraging on this foundation, the Group continued to push into other industries to offer big data services, and was award as one of the "Top Chinese Big Data Companies in 2016", issued by the CBRC.

In the future, the Group will continue to grow its big data businesses in financial regulatory institutions, government, banks, insurances, securities, transportations, logistics, energy, manufacturers, public security, media, and other segments. Big data businesses will push the Group's future growth and serve as a strong growth engine in the Group's strategic transformation.

In return for the long-term support of the Group's investors, the board has agreed to issue dividends for the year 2016. This is a reflection of Chinasoft's attention to the capital market and its determination for future growths.

As the Group executes its new five-year plan, a new round of growth potential has been revealed. In the future Chinasoft will grab on to the opportunities risen from globalization of IT services, cloud computing, and big data analytics to increase the Group's global layout and play catch-up with the India IT companies to receive an advantageous position in to global IT industry.  

Furthermore, the Group will unflinchingly push for Jointforce's ecosystem build-up, execute big data strategy, transform itself at a faster rate, and optimize business models. Chinasoft will increase market innovation, consolidate existing resources to become a global IT enterprise and create more value for its shareholders.

SOURCE ChinaSoft International Ltd.