Trading Update

 

TIDMSFT 
 
RNS Number : 7318U 
Sinosoft Technology plc 
30 June 2009 
 

Embargoed: For release at 7am, 30 June 2009 
SINOSOFT TECHNOLOGY PLC 
"SINOSOFT" OR THE "COMPANY" 
TRADING UPDATE 
Sinosoft, the China-based developer and provider of software and IT solutions to 
Chinese regional and national government agencies and export enterprises, is 
pleased to announce an update on trading prior to the Company's half-year end on 
30 June 2009. 
As previously stated, Sinosoft has adopted a strategy of broadening the base of 
the overall business and this remains the focus for FY2009. Sinosoft's revenue 
continues to be weighted to the second half and whilst contract delays and 
deferrals have resulted in revenues being slightly down in the first half of 
2009, the pipeline for the second half is strong. Management is confident that 
many of the deferred government contracts will commence in H2 and that trading 
for the full year will broadly in line with 2008. 
The Company continues to grow beyond Jiangsu province and it is pleased to 
announce that it has recently won a new contract worth approximately US$0.2 
million to supply its e-government software to Nan An, one of the 12 major 
cities in Chongqing, the largest and most populated municipality in China. 
Sinosoft will create and install a system to enable people to submit reports and 
application forms such as public housing forms and marriage application forms, 
remotely to any government departments within Nan An.  The system will then 
route the information to the applicable government department for processing. We 
expect work to be completed within the next three months. 
This contract is an important step forward for Sinosoft's e-government division 
because it is the Company's first move into south west China where it is 
believed by the management that there is significant potential for the Company's 
products. 
Elsewhere, the Company has recently signed a contract to provide e-government 
products to Ning Xia province.  In order to reduce corruption in the government 
approval process for applications submitted by citizens requiring various 
permits, Sinosoft will be supplying software to help the provincial 
government ensure that each department is following the stated procedure for 
their different roles and proper authorisation is obtained for each step of the 
approval process. 
We are currently in advanced discussions with a top PRC software company, for 
the provision of our Skytech Reports Software, which was developed in 2008 as an 
e-government product. There is further potential for this product to be supplied 
to corporate sector clients. 
In June 2009, the Company entered into a two year outsourcing contract to 
collaborate with Singalab Pte Ltd, a Singapore IT company in the provision of 
programming and coding work for a project they are working on.  In the initial 
phase of the contract, two engineers will be stationed in Singapore for a month 
while 12 other engineers based in PRC will provide additional technical support. 
 It is expected that the number of engineers will gradually increase as the 
project progresses.  By collaborating with Singalab, there is potential for 
Sinosoft to expand its outsourcing business. 
During this relatively quiet period in terms of roll-out of the SAT, the Company 
has been improving the functionality of its export tax software and creating a 
number of bolt-on services for existing users in Jiangsu. By working on these 
improvements, Sinosoft has a more comprehensive suite of products in 
anticipation of renewed demand once exports in China start to recover and the 
economic environment is more stable. 
 
-Ends- 
 
 
For further information, please contact: 
Sinosoft Technology plc 
Yifa Yu, Finance Director 
[e-mail] 
 
 
Hanson Westhouse Limited     Tavistock Communications 
Tim Metcalfe/Richard Baty       Simon Compton 
020 7601 6100                020 7920 3150 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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