ChinaSoft International Releases Favorable Interim Results: 41.8% and 42.6% YOY Growth in Service Revenue and Profit Respectively

JointForce Platform Sees Results and Profit Stabilizes

BEIJING and HONG KONG, August 29, 2014 /PRNewswire/ — ChinaSoft International (“ChinaSoft” or “the Company“) (SEHK: 354) announced today the unaudited interim results for the six months ended 30 June 2014.

In the first half of 2014, ChinaSoft’s service revenue and profit was RMB 1.91 billion and RMB 115 million, achieving YOY growths of 41.8% and 42.6% respectively. The Company’s size grew to 23,989 employees.

In the first half of 2014, the different segments of the Company all experienced stable and healthy growths. The highlights include the development and the close beta launch of JointForce platform, Huawei, mobile and cloud businesses.

During the reporting period, the JointForce platform, an Internet crowd source platform developed by the Company itself, has successfully launched the closed beta version and the Company is already seeing an increase in work efficiency and utilization rate. The JointForce platform has successfully controlled the growth of employee number and helped the Company increased its margins compared to the last corresponding reporting period. The internal testing results are evident and successfully met the Company’s expectation of JointForce in the first half of 2014.

Currently, there are over 7,000 registered users, of which around 3,000 users have either posted or bid on jobs for a number of 500 projects. Of which, the entire PSG government business line is now live on JF and has finished online delivery. The central themes of JF are: payment upon completion of project as a true mark of project completion, sub-divide projects into “micro projects” as measurement (divide, grab, deliver, and evaluate projects), business unit managers, project managers, and developers’ “micro management system” that is based on projects (from project management standpoint, it is from bottom up to ensure margins through a transparent support system). From a SaaS standpoint, the Company also associated every JointForce related features with the word “jie,” and put them on Ali-cloud. For example, the corporate instant messaging platform JetChat has the “jie” network, employs the “jie” mission for online delivery, and uses the “jie” resume and “jie” code to create a “jie” community to form an ITS platform (“jie” in English means outstanding and to liberate).

During the reporting period, the strategic cooperation with Huawei stabilized, and the profit increased. For the first half of 2014, the Huawei business achieved a YOY growth of 90% with increased profitability. The success of the JV has earned approval from Huawei. Huawei’s managing board believes that the JV between Huawei and ChinaSoft aligns with Huawei’s strategy and complement one another, and fully endorses the JV’s delivery and quality control capabilities. As a result, they have decided to continue with the JV model and increase business volume with the JV. This serves as a positive motivation to our team, and is also a signal that the Company has accomplished phase one of our strategy layout with Huawei (earn the trust of Huawei through stable growth of outsourcing business). The Company now enters phase two, using Huawei to rapidly increase businesses in different verticals and overseas. Under the “secure, reliable, and self-controlled” national information strategy, the full-on cooperation with Huawei will be a key driver to help the Company achieve its RMB 10 billion revenue goal. This is a huge profit potential for the Company.

During the reporting period in respect to mobile development, the Company and China Mobile’s Fetion business has deepened its partnership. The Company successfully took over Fetion’s core product development and operation for last year’s contract, and was able to sign a new contract with China Mobile for the 2014-2015 year. Within the last year (contract period), the Company launched over 30 different online versions, including changes to UI, Fetion calling, small phone conference, and payment capabilities and received high praise from China Mobile and clients to become a stable service provider of Fetion. Meanwhile, the Company is actively working with China Mobile in its new “three new” integration messaging strategy project (new calling, new notification, and new communication) to help with the planning, design, and development. The Company has a high chance of becoming the core application developer of this “three new” project and other 4G based project because of the successful partnership the Company has with China Mobile now.

In terms of cloud services, the Company has completed over 6,000 Ali-cloud cloud migration cases, including the CITIC 21CN drug monitoring system, and the customer satisfaction rate is over 99%. With Ali promoting the “digital Internet city” project, cloud migration and operation has become a standard of cloud services. The first execution of it will be at Guizhou and Ningxia. Meanwhile, Catapult, a Microsoft Azure service integrator, is developing new solutions as a service to deal with business issues based on intellectual property rights and consulting services that helps businesses realize profits from cloud services. These services will be pushed out in the fourth quarter (or mid-year for Microsoft).

2014 is the year when we will witness history together. The Company has prepared for a long time for this transformation, and now is the time to start and take off.

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About ChinaSoft International Limited, “CSI” (354.HK)

Founded in 2000, ChinaSoft International Limited is a listed company in the Hong Kong Stock Exchange with its code of 354.HK. It is a large Chinese comprehensive software and information services provider, ranging from end to end services of consulting, solution, outsourcing and talent training. It serves clients including government, manufacturing, finance, telecommunication, high-tech, transportation as well as energy. It provides global services to over 100 multinational companies with 23,989 employees located worldwide based in 38 cities including mainland China, Hong Kong, Princeton, Seattle, London, Tokyo and etc. For more information, please visit