Geong International Limited Trading Update

 
TIDMGNG 
 
22 July 2015 
 
                          GEONG International Limited 
 
                          ("GEONG" or "the Company") 
 
                                Trading Update 
 
 
GEONG International Limited (AIM: GNG), the AIM listed, Beijing based, provider 
of content management software and solutions, provides the following update 
ahead of the Company's announcement of its audited results, which are expected 
to be released by the end of September 2015. 
 
Since the release of the interim results on 23 December 2014, the Company has 
adapted its business model in response to evolving Chinese market conditions 
and customer needs. As a result, over the last few months, the Company has 
focused the business on the Mobile Marketing Services business in the financial 
services sector. The Mobile Marketing Services business concentrates on small 
and medium sized financial institutions for which it operates a combined 
pre-pay and charge per click ("CPC") model for the majority of clients. The 
traditional IaaS and SaaS business has been optimised to focus on our largest 
clients as set out in previous statements. The Directors believe that this 
strategy will maximize and speed up the collection of debtors. 
 
During the second half of the year to 31 March 2015 the Company's Digital 
Marketing Service and Mobile Marketing Service business has made sales to eight 
existing financial clients. They are Guangfa Bank, China Construction Bank, 
Agricultural Bank of China, China Minsheng Bank, China Everbright Bank, Pudong 
Development Bank, China Bond and New Life Insurance Company. These are expected 
to generate revenues in the region of GBP1 million for the year to 31 March 2016. 
 
As set out in the statement of 29 June 2015, the Directors are in the process 
of drawing up the accounts for the year ended 31 March 2015 ahead of the audit 
which is expected to commence in early August. The Board can confirm that 
revenues are currently expected to be in the region of GBP8m although this amount 
remains conditional on agreement by certain clients of work performed and 
milestones met. As part of this revenue the Directors are currently intending 
to recognize in the region of GBP1m reflecting work performed for a long standing 
large customer which is undergoing a major organization and personnel change. 
As a result of this the Board is aware that there will be a delay in recovering 
the monies and is considering whether any provision should be made against 
these amounts. 
 
The Board can confirm that the gross cash balance as at 31 March 2015 was 
approximately GBP3.8 million (net cash GBP1.2 million). 
 
The Chinese internet market is undergoing rapid change and the Company is 
focusing on adapting to changing conditions quickly in order to take advantage 
of any new opportunities. The Chinese market conditions remain challenging but 
the Board is confident of the long term success of GEONG's business. 
 
For further information, please contact: 
 
 
GEONG International Limited           http://www.geong.com/            Tel: +86 
10 85869655 
Henry Tse, Chairman 
Weidong Wang, CEO 
 
 
Nomad and joint broker 
 
finnCap                                                                                         Tel: 
[phone] 
Stuart Andrews 
Jonny Franklin-Adams 
 
 
About GEONG International Limited 
 
GEONG is recognised as a leading independent Internet software solutions 
provider and operator for large enterprises in China. 
 
Registered in Jersey, the Company's operations are headquartered in 
Beijing,China. GEONG International Ltd. (GEONG or the Company) has been quoted 
on the London Stock Exchange (LSE AIM: GNG.L) since June 2006. The Company has 
since transformed from an ECM (Enterprise Content Management) software and 
service centric business to an internet business centric company. 
 
GEONG is an internet solutions and service software company managed by a 
worldclass management and professional team who collectively own 26% of the 
business. The Company's mission is to help its clients to improve their 
business efficiency and customer satisfaction through smarter internet 
applications. 
 
For more information, please visit http://www.geong.com/ 
 
 
 
END