Interim Results

 

TIDMSFT 
 
RNS Number : 4977Z 
Sinosoft Technology plc 
23 September 2009 
 

SINOSOFT TECHNOLOGY PLC (THE "COMPANY") 
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009 
 
 
Sinosoft, the China based developer and provider of e-Government software and 
services, announces its consolidated interim results for the Group (being the 
Company and its subsidiaries, also referred to as Sinosoft) for the six months 
ended 30 June 2009. 
 
 
Financial Highlights 
 
 
  *  Turnover down 14.5% to approximately US$4.5M (2008: US$5.3M) 
  *  Gross profit down 11.8% to approximately US$3.6M (2008: US$4.1M) 
  *  Research & Development ("R&D") expenditure up 12.3% to approximately US$0.9M 
  (2008: US$0.8M) 
  *  Operating profit decreased to approximately US$0.3M (2008: US$1.27M) 
 
 
 
Operating Highlights 
 
 
  *  Sale of add-on services continues to contribute strongly to tax software revenue 
  growth 
  *  Revenue from e-Government showing signs of improvement as a result of the 
  government's stimulus package 
 
 
 
Commenting on the results, Mao Ning, Chairman of Sinosoft said: "The current 
global recession led to a poorer first half performance compared with the same 
period last year. However, the growing diversification of our revenue streams 
and the investment in research and development has enabled Sinosoft to benefit 
from the initial signs of an economic recovery and the PRC Government's stimulus 
package. Contracts in the pipeline give the board confidence that as the global 
economy stabilizes, Sinosoft is well positioned to grow its revenues in the 
second half of 2009." 
 
 
-ends- 
 
 
 
 
For further information please contact: 
 
 
+--------------------------+--------------------------+--------------------------------+ 
| Sinosoft Technology plc  | Mr. Yifa Yu              |[e-mail]  | 
+--------------------------+--------------------------+--------------------------------+ 
|                          |                          |                                | 
+--------------------------+--------------------------+--------------------------------+ 
| Hanson Westhouse Limited | Tim Metcalfe/Richard     |                  020 7601 6100 | 
|                          | Baty                     |                                | 
|                          |                          |                                | 
+--------------------------+--------------------------+--------------------------------+ 
| Tavistock Communications | Simon Compton            |                  020 7920 3150 | 
+--------------------------+--------------------------+--------------------------------+ 
 
 
 
 
 
 
Chief Executive Officer's Statement 
 
 
Due to the challenging operating environment from the slowing global economy 
that started last quarter of FY2008, our turnover for the six months to 30 June 
2009 was lower than the same period last year. Despite the overall fall in 
revenue, sales achieved by our Tax Software division were up by 8.9% on the same 
period of last year. e-Government and System Integration witnessed marginal 
decrease (3.8% and 16.4% respectively) while Information Integration suffered 
the biggest drop in sales (46.3%), pulling down overall Group sales. 
 
 
Despite tighter control on operating costs, total operating expenses increased 
marginally from last year as a result of the necessary continued investment in 
marketing and R&D.  As a result, profit from operations experienced a 77.6% 
decrease to approximately US$0.3M (2008: US$1.27M).  Net profit before tax 
decreased by a smaller percentage (36.2%) to approximately US$1.0M (2008: 
US$1.53M) as a result of higher investment gains. Basic and diluted earnings per 
share were US$0.0046 (2008: US$0.0086). 
 
 
Tax software 
There has been no change in the status of the Group's SAT rollout since the 
Company last reported. Despite this, our strategy of diversifying away from the 
SAT project through the development and sale of value added tax software has 
started to bear fruit and helped this division to book in an increase in revenue 
compared to the same period of last year.  This growth was achieved despite a 
tough operating environment that saw a drop in turnover for our other divisions. 
We are currently continuing our R&D and are looking to push out more new 
products in this area. 
 
 
e-Government 
This division witnessed a marginal decrease in turnover as a result of a number 
of local and provincial governments suspending discretionary spending during 
late FY2008 and early FY2009. The e-Government division suffered constriction in 
sales during the latter half of 2008 and this continued into FY2009. Sales for 
the first quarter were significantly below those of the comparative period in 
FY2009. However, in Q2 and Q3 the Company has witnessed a strong pickup of 
activity in this division as the benefits of the PRC's RMB 4 trillion stimulus 
package begin to filter through. The board are pleased that Q2's performance 
resulted in the division achieving turnover marginally below HY2008 and the 
Company is currently very active in this area, demonstrating the four tender 
wins in Jiangsu that were recently announced. 
 
 
Information Integration 
Revenue of this division has always been derived mainly from large corporate 
clients that use the Group's products and services to restructure and streamline 
their IT infrastructure. As a result of the financial crisis, many such 
corporations have either slashed their FY2009 IT spending budget or scrapped 
their IT integration projects due to reduced business activity. As a result, 
turnover for this division has fallen significantly, compared to the same period 
last year. 
 
 
Systems Integration 
As expected with the tough economic conditions, turnover for this division is 
lower than that of the same period last year. The Group's systems integration 
services are dependent upon its customers installing new systems. As a 
consequence, demand has dropped away as IT expenditure has been reduced. 
 However, some of the impact of this is mitigated - when compared with 
Information Integration services - as this division sells to public sector 
agencies where expenditure cuts have been less pronounced. 
 
 
Outlook 
Our strategy of diversifying from the SAT project into providing value added 
software products has borne fruit in the form of increased revenues for the tax 
software division, despite the difficult economic conditions. Likewise, we are 
seeing signs of pickup in e-Government projects as a result of the stimulus 
package. Although Information Integration is likely to see lower revenue this 
year, the strong pickup in growth from the tax software and e-Government 
division in the remaining months of FY2009 should be able to offset the poor 
performance by this division. 
 
 
Xin Yingmei 
Chief Executive Officer 
22 September 2009 
 
 
 
 
+-----------------------------------+-------------+--------------+-------------+ 
| CONSOLIDATED INCOME STATEMENT     |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |  6 months   |  6 months    |  12 months  | 
|                                   |             |              |    ended    | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |  ended 30   |  ended 30    |31 December  | 
|                                   |    June     |    June      |             | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |    2009     |    2008      |    2008     | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |    US$      |     US$      |    US$      | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   | (reviewed)  |  (reviewed)  |  (audited)  | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
| Revenue                           |   4,543,113 |    5,311,008 |  12,078,124 | 
+-----------------------------------+-------------+--------------+-------------+ 
| Cost of sales                     |   (916,897) |  (1,201,921) | (3,494,992) | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
| Gross profit                      |   3,626,216 |    4,109,087 |   8,583,132 | 
+-----------------------------------+-------------+--------------+-------------+ 
| Other income                      |     209,627 |      277,217 |     620,974 | 
+-----------------------------------+-------------+--------------+-------------+ 
| Research and development cost     |   (933,514) |    (831,362) | (1,986,680) | 
+-----------------------------------+-------------+--------------+-------------+ 
| Selling and distribution expenses | (1,012,707) |    (901,202) | (1,357,692) | 
+-----------------------------------+-------------+--------------+-------------+ 
| Administrative expenses           | (1,427,171) |  (1,336,766) | (2,422,484) | 
+-----------------------------------+-------------+--------------+-------------+ 
| Other operating expenses          |   (177,572) |     (43,024) |   (144,387) | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
| Profit from operations            |     284,879 |    1,273,950 |   3,292,863 | 
+-----------------------------------+-------------+--------------+-------------+ 
| Finance cost                      |    (16,014) |            - |     (2,303) | 
+-----------------------------------+-------------+--------------+-------------+ 
| Finance income                    |     653,051 |      258,761 |     515,632 | 
+-----------------------------------+-------------+--------------+-------------+ 
| Exchange gain or loss             |      55,769 |        (529) |    (18,488) | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
| Profit before tax                 |     977,685 |    1,532,182 |   3,787,704 | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
| Taxation                          |   (210,747) |    (100,523) |   (358,014) | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
| Profit for the period             |    766,938  |   1,431,659  |  3,429,690  | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
|                                   |             |              |             | 
+-----------------------------------+-------------+--------------+-------------+ 
 
 
+-----------------------------------+-------------+-------------+-------------+ 
| CONSOLIDATED BALANCE SHEET        |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |  30 June    |  30 June    | 31 December | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |    2009     |    2008     |    2008     | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |    US$      |    US$      |    US$      | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   | (reviewed)  | (reviewed)  |  (audited)  | 
+-----------------------------------+-------------+-------------+-------------+ 
| ASSETS                            |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Non-current assets                |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Property, plant and equipment     |     883,632 |     940,537 |     979,087 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Intangible assets                 |   6,733,100 |   4,250,739 |   5,109,922 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Long term investment              |   4,403,363 |           - |   4,402,842 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Total non-current assets          |  12,020,095 |   5,191,276 |  10,491,851 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Current assets                    |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Inventories                       |     334,655 |   1,401,043 |     643,877 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Trade receivables                 |   7,202,347 |   6,035,016 |   6,283,869 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Other receivables                 |   1,360,925 |   4,166,676 |   3,707,876 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Investments                       |      86,945 |           - |   1,463,143 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Cash deposits                     |           - |           - |     460,276 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Cash and cash equivalents         |  12,577,728 |  16,467,271 |  12,452,387 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Total current assets              |  21,562,600 |  28,070,006 |  25,011,428 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Total assets                      |  33,582,695 |  33,261,282 |  35,503,279 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| LIABILITIES & EQUITY              |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Current liabilities               |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Short term loan                   |           - |           - |   1,170,515 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Trade payables                    |     566,632 |   1,073,119 |     973,835 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Other payables                    |     156,229 |     343,760 |   1,790,061 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Deferred income                   |           - |     142,423 |           - | 
+-----------------------------------+-------------+-------------+-------------+ 
| Total current liabilities         |     722,861 |   1,559,302 |   3,934,411 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Non-current liabilities           |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Deferred tax                      |     837,689 |     292,490 |     647,126 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Total non-current liabilities     |     837,689 |     292,490 |     647,126 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Total liabilities                 |   1,560,550 |   1,851,792 |   4,581,537 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Capital and reserves              |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Share capital                     |     424,023 |     424,023 |     424,023 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Share premium                     |  11,283,551 |  11,283,551 |  11,283,551 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Merger reserve                    | (1,118,051) | (1,118,051) | (1,118,051) | 
+-----------------------------------+-------------+-------------+-------------+ 
| Other reserves                    |   8,118,637 |   9,739,557 |   7,785,172 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Retained earnings                 |  13,313,985 |  11,080,410 |  12,547,047 | 
+-----------------------------------+-------------+-------------+-------------+ 
| Total shareholders' equity        |  32,022,145 |  31,409,490 |  30,921,742 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Total liabilities & equity        |  33,582,695 |  33,261,282 |  35,503,279 | 
+-----------------------------------+-------------+-------------+-------------+ 
 
 
 
 
+----------------------------------+--------------+--------------+--------------+ 
| CASH FLOW STATEMENT              |  6 months    |  6 months    |  12 months   | 
|                                  |              |              |    ended     | 
+----------------------------------+--------------+--------------+--------------+ 
|                                  |  ended 30    |  ended 30    | 31 December  | 
|                                  |    June      |    June      |              | 
+----------------------------------+--------------+--------------+--------------+ 
|                                  |    2009      |    2008      |    2008      | 
+----------------------------------+--------------+--------------+--------------+ 
|                                  |    US$       |    US$       |    US$       | 
+----------------------------------+--------------+--------------+--------------+ 
|                                  |  (reviewed)  |  (reviewed)  |  (audited)   | 
+----------------------------------+--------------+--------------+--------------+ 
| Operating activities             |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Income before taxation from      |      977,685 |    1,532,182 |    3,787,704 | 
| continuing operations            |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Adjustments for:                 |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Interest income                  |    (653,051) |    (258,761) |    (671,089) | 
+----------------------------------+--------------+--------------+--------------+ 
| Interest expense                 |       16,014 |            - |        2,303 | 
+----------------------------------+--------------+--------------+--------------+ 
| Exchange difference              |     (55,769) |          529 |       18,488 | 
+----------------------------------+--------------+--------------+--------------+ 
| Gain on disposal of investments  |            - |            - |    (158,166) | 
+----------------------------------+--------------+--------------+--------------+ 
| Investment income                |    (209,627) |    (137,656) |            - | 
+----------------------------------+--------------+--------------+--------------+ 
| Share based payment              |      143,589 |            - |            - | 
+----------------------------------+--------------+--------------+--------------+ 
| Impairment loss in receivables   |    (156,990) |      217,594 |       90,597 | 
+----------------------------------+--------------+--------------+--------------+ 
| Depreciation of property, plant  |       96,518 |       53,127 |      165,870 | 
| and equipment                    |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Amortisation for intangible      |    1,293,370 |      745,379 |    1,592,818 | 
| assets                           |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Operating cash generated before  |    1,451,739 |    2,152,394 |    4,828,525 | 
| working capital changes          |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Decrease in inventories          |      309,222 |      147,455 |      904,621 | 
+----------------------------------+--------------+--------------+--------------+ 
| Decrease/ (increase) in trade    |    1,713,434 |  (2,912,097) |  (2,702,150) | 
| and other receivables            |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Decrease/(Increase) in trade and |  (3,750,846) |    (168,788) |    1,178,229 | 
| other payables                   |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| (Decrease) in deferred income    |            - |            - |    (126,369) | 
+----------------------------------+--------------+--------------+--------------+ 
| Cash generated by operations     |    (276,451) |    (781,036) |    4,082,856 | 
+----------------------------------+--------------+--------------+--------------+ 
| Income taxes paid                |    (141,310) |    (173,248) |    (128,065) | 
+----------------------------------+--------------+--------------+--------------+ 
| Interest paid                    |     (16,014) |            - |      (2,303) | 
+----------------------------------+--------------+--------------+--------------+ 
| NET CASH (USED IN) / GENERATED   |    (433,775) |    (954,284) |    3,952,488 | 
| FROM OPERATING ACTIVITIES        |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Investing activities             |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Interest received                |      653,051 |      258,761 |      671,089 | 
+----------------------------------+--------------+--------------+--------------+ 
| Gain on disposal of investment   |      209,627 |            - |            - | 
+----------------------------------+--------------+--------------+--------------+ 
| Proceeds on disposal of trading  |    1,376,198 |      323,929 |      463,730 | 
| investment                       |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Purchase of property, plant and  |      (1,063) |    (336,530) |    (418,824) | 
| equipment                        |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Purchase of intangible assets    |  (1,177,504) |  (1,037,852) |  (2,797,073) | 
+----------------------------------+--------------+--------------+--------------+ 
| Entrust loan made                |            - |            - |  (5,865,985) | 
+----------------------------------+--------------+--------------+--------------+ 
| Purchase of investments for      |            - |    (186,272) |    (305,564) | 
| trading                          |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Decrease/(increase) in pledged   |      460,276 |      250,646 |    (177,182) | 
| bank deposits                    |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| NET CASH USED IN INVESTING       |    1,520,585 |    (727,318) |  (8,429,809) | 
| ACTIVITIES                       |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Financing activities             |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Repayment of borrowing           |  (1,170,515) |            - |            - | 
+----------------------------------+--------------+--------------+--------------+ 
| Proceeds from short-term bank    |            - |            - |    1,170,515 | 
| loans                            |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Dividend paid                    |            - |  (1,027,075) |  (1,027,075) | 
+----------------------------------+--------------+--------------+--------------+ 
| NET CASH USED IN FINANCING       |  (1,170,515) |  (1,027,075) |  (1,027,075) | 
| ACTIVITIES                       |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| NET DECREASE IN CASH AND CASH    |     (83,705) |  (2,708,677) |  (4,333,881) | 
| EQUIVALENTS                      |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| Effect of exchange rate changes  |      209,046 |    1,056,796 |  (1,332,884) | 
+----------------------------------+--------------+--------------+--------------+ 
| CASH AND CASH EQUIVALENTS AT     |   12,452,387 |   18,119,152 |   18,119,152 | 
| BEGINNING OF YEAR                |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
| CASH AND CASH EQUIVALENTS AT THE |   12,577,728 |   16,467,271 |   12,452,387 | 
| END OF PERIOD                    |              |              |              | 
+----------------------------------+--------------+--------------+--------------+ 
 
 
 
 
STATEMENT OF CHANGES IN EQUITY 
+-------------------------------------+-------------------------------------+------------+-----------------------------------------+-------------+------------+------------+-------------+-------------+ 
|                                     |                Share                |   Share    |                        Merger                         |          Other          |  Retained   |    Total    | 
|                                     |              capital                |  premium   |                        reserve                        |        reserves         |  earnings   |             | 
+                                     +-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
|                                     |                US$                  |    US$     |                          US$                          |          US$            |    US$      |    US$      | 
+                                     +-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
|                                     |              Reviewed               |  Reviewed  |                       Reviewed                        |        Reviewed         |  Reviewed   |  Reviewed   | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
|                                     |                                     |            |                                                       |                         |             |             | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Balance as at 1 January 2008        |                             424,023 | 11,283,551 |                                           (1,118,051) |               8,336,500 |  10,675,826 |  29,601,849 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
|                                     |                                     |            |                                                       |                         |             |             | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Profit for the period               |                                   - |          - |                                                     - |                       - |   1,431,659 |   1,431,659 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Appropriation of reserve funds      |                                   - |          - |                                                     - |                   2,092 |           - |       2,092 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Effect of exchange rates            |                                   - |          - |                                                     - |               1,400,965 |           - |   1,400,965 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Dividend paid                       |                                   - |          - |                                                     - |                       - | (1,027,075) | (1,027,075) | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
|                                     |                                     |            |                                                       |                         |             |             | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Balance as at 30 June 2008          |                             424,023 | 11,283,551 |                                           (1,118,051) |               9,739,557 |  11,080,410 |  31,409,490 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
|                                     |                                     |            |                                                       |                         |             |             | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Profit for the period               |                                   - |          - |                                                     - |                       - |   1,998,031 |   1,998,031 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Transfer to statutory reserve       |                                   - |          - |                                                     - |                 531,394 |   (531,394) |           - | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Effect of exchange rates            |                                   - |          - |                                                     - |             (2,485,779) |           - | (2,485,779) | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
|                                     |                                     |            |                                                       |                         |             |             | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Balance as at 31 December 2008      |                             424,023 | 11,283,551 |                                           (1,118,051) |               7,785,172 |  12,547,047 |  30,921,742 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
|                                     |                                     |            |                                                       |                         |             |             | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Profit for the period               |                                   - |          - |                                                     - |                       - |     766,938 |     766,938 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Equity compensation reserve         |                                   - |          - |                                                     - |                 143,589 |           - |     143,589 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Effect of exchange rates            |                                   - |          - |                                                     - |                 189,876 |           - |     189,876 | 
+-------------------------------------+-------------------------------------+------------+-------------------------------------------------------+-------------------------+-------------+-------------+ 
| Balance as at 30 June 2009          |                             424,023 |                                           11,283,551 | (1,118,051) |  8,118,637 |               13,313,985 |  32,022,145 | 
+-------------------------------------+-------------------------------------+------------+-----------------------------------------+-------------+------------+------------+-------------+-------------+ 
 
 
 
 
NOTES TO THE INTERIM REPORT 
 
 
1.The interim results for the period ended 30 June 2009 are unaudited and do not 
constitute financial statements within the meaning of s.240 of the Companies Act 
1985. The figures for the year ended 31 December 2008 have been extracted from 
the financial statements which have been filed with the Registrar of Companies. 
The auditors' report on those financial statements was unqualified and did not 
contain a statement under section 237(2) of the Companies Act 1985. 
 
 
2.The financial information set out in this report has been prepared in 
accordance with accounting policies as set out in the Group's annual report and 
financial statements for the year ended 31 December 2008. 
 
 
3.Functional and presentation currency 
 
 
Sterling is the functional currency of the Company as it is the currency of the 
primary economic environment in which it operates. The US Dollar ("US$") is the 
currency used to present the financial information in order to improve 
understanding of the financial position of the Company by increasing 
comparability with the financial information of Nanjing Skytech Co. Limited and 
Nanjing Skytech Software Co. Limited, the operating subsidiaries whose 
functional currency is the Chinese Renminbi. 
 
 
4.  Earnings per share 
 
 
The calculation of basic earnings per ordinary share and the fully diluted 
earnings per ordinary share is based on the profit attributable to the Group and 
the weighted average number of ordinary shares of each period. 
 
 
 
 
+----------------------------------+-------------+---------------+---------------+ 
|                                  |  30 June    |    30 June    | 31 December   | 
+----------------------------------+-------------+---------------+---------------+ 
|                                  |    2009     |     2008      |     2008      | 
+----------------------------------+-------------+---------------+---------------+ 
|                                  |    US$      |     US$       |     US$       | 
+----------------------------------+-------------+---------------+---------------+ 
|                                  | (reviewed)  |  (reviewed)   |  (audited)    | 
+----------------------------------+-------------+---------------+---------------+ 
|                                  |             |               |               | 
+----------------------------------+-------------+---------------+---------------+ 
| Profit for the period            |  US$766,938 |  US$1,431,659 |  US$3,429,690 | 
+----------------------------------+-------------+---------------+---------------+ 
|                                  |             |               |               | 
+----------------------------------+-------------+---------------+---------------+ 
| Number of shares - weighted      | 165,582,189 |   165,582,189 |   165,582,189 | 
| average - basic                  |             |               |               | 
+----------------------------------+-------------+---------------+---------------+ 
| Basic earnings per share         |   US$0.0046 |    US$ 0.0086 |    US$ 0.0207 | 
+----------------------------------+-------------+---------------+---------------+ 
|                                  |             |               |               | 
+----------------------------------+-------------+---------------+---------------+ 
| Number of shares - weighted      | 165,582,189 |   165,582,189 |   165,582,189 | 
| average - diluted                |             |               |               | 
+----------------------------------+-------------+---------------+---------------+ 
| Diluted earnings per share       |   US$0.0046 |     US$0.0086 |     US$0.0207 | 
+----------------------------------+-------------+---------------+---------------+ 
 
 
 
 
 
 
5.  Dividend 
 
 
Sinsoft Technology Plc paid a dividend amounting to GBP513,305 on 6 July 2009. 
 
 
6.  Acquisition 
 
 
Nanjing Skytech Co. Ltd acquired 100% shares of Jiangsu SkyInformation Co. Ltd, 
a China based software company, for a cash consideration of RMB 4.17m in August 
2009. 
 
 
 
 
INDEPENDENT REVIEW REPORT 
TO SINOSOFT TECHNOLOGY PLC 
 
 
Introduction 
We have been instructed by the Company to review the financial information for 
the six months ended 30 June 2009, which comprises the consolidated income 
statement, consolidated balance sheet, consolidated statement of changes in 
equity, consolidated cash flow statement and related notes 1 to 6. We have read 
the other information contained in the interim report and considered whether it 
contains any apparent misstatements or material inconsistencies with the 
financial information. 
 
 
This report is made solely to the Company in accordance with International 
Standard on Review Engagements (UK and Ireland) 2410 issued by the Auditing 
Practices Board. Our work has been undertaken so that we might state to the 
Company those matters that we are required to state to them in an independent 
review report and for no other purpose. To the fullest extent permitted by law, 
we do not accept or assume responsibility to anyone other than the Company, for 
our review work, for this report, or for the conclusions we have formed. 
 
 
Directors' responsibilities 
The interim report, including the financial information contained therein, is 
the responsibility of, and has been approved by the Directors. The Listing Rules 
of the Financial Services Authority require that the accounting policies and 
presentation applied to the interim figures should be consistent with those 
applied in preparing the AIM admission document except where changes, and the 
reason for them, are disclosed. 
 
 
Review work performed 
We conducted our review in accordance with International Standard on Review 
Engagements (UK and Ireland) 2410 issued by the Auditing Practices Board for use 
in the United Kingdom. A review consists principally of making enquires of Group 
management and applying analytical procedures to the financial information and 
underlying financial data and, based thereon, assessing whether the accounting 
policies and presentation have been consistently applied, unless otherwise 
disclosed. A review excludes audit procedures such as tests of controls and 
verification of assets, liabilities and transactions. It is substantially less 
in scope than an audit performed in accordance with the International Standards 
on Auditing (UK and Ireland) issued by the Auditing Practices Board and 
therefore provides a lower level of assurance than an audit. Accordingly we do 
not express an audit opinion on the financial information. 
 
 
Review conclusion 
On the basis of our review we are not aware of any material modification that 
should be made to the consolidated financial information as presented for the 
six months ended 30 June 2009. 
 
 
SEDLEY RICHARD LAURENCE VOULTERS 
Chartered Accountants & Registered Auditors 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR ILFFDASIFFIA