INTERIM REPORT
2 0 1 6 Chinasoft International Limited 中軟國際有限公司 *Incorporated in the Cayman Islands with Limited Liability Stock Code: 0354
* for identification purpose only
CONTENTS 1
PAGE
Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Chairman's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Business Recent Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Management Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Interim Results
Consolidated Statement of Comprehensive Income (Unaudited) . . . . . . . . . . . . . . . . 31
Consolidated Statement of Financial Position (Unaudited) . . . . . . . . . . . . . . . . . . . . . 32
Consolidated Statement of Changes in Equity (Unaudited) . . . . . . . . . . . . . . . . . . . . . 34
- Consolidated Statement of Cash Flow (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Notes to the Unaudited Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . 36 Environment, Society and Governance Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Chinasoft International Limited Interim Report 2016
For the six months ended 30 June
2 HIGHLIGHTS
Results for the first half of 2016
Income statement highlights
(unaudited)
2016
RMB'000
% Increase
(over the (unaudited) same period 2015 last year)
RMB'000
Revenue
2,884,951
2,388,751
20.8%
Revenue from service
2,832,120
2,204,689
28.5%
EBIT
305,167
193,886
57.4%
Profit attributable to Owners
of the Group
236,237
139,670
69.1%
Basic EPS (RMB cents)
11 .04
7.23
52.7%
Statement of financial
position highlights
(unaudited)
30 June 2016
RMB'000
(audited)
31 December 2015
RMB'000
% Increase
Total assets
Total liabilities
6,773,049
(3,052,951)
6,348,453
(2,862,183)
6.7%
6.7%
Total equity
3,720,098
3,486,270
6.7%
The Directors do not recommend the payment of an interim dividend for the six months
ended 30 June 2016.
No closure for the Register of Members of the Company.
Chinasoft International Limited
Interim Report 2016
CHAIRMAN'S REPORT 3
Dear Investors,
As it is now normal with us, the Group performed well over the reporting period. After the efforts over the past 18 months, Chinasoft's new corporate structure is now in place. As the "two-wheel" strategy is implemented, the difference between the two business models of the two segments is becoming apparent, and the characteristics contrast is also becoming more clear and pronounced. We are now well on our way to what Gartner suggested as the Bimodal framework for IT Services: Mode 1 for traditional IT service model which has clear requirements and targets that can be organized with industrial IT methodologies, and Mode 2 for innovative service models that utilizes efficiencies in digital technology, agile payment and revenue models and crowd sourcing for resource management.
I. On Contrast . As IIG business continues to develop and becoming more mature, the contrast between our two business segments IIG and TPG are very clear in many areas:
1 . Different Business Positioning
TPG strives to be the vendor of choice for industry vertical's solution and software services.
IIG's position is to be an operator of a cloud based crowd-sourced service platform, or a cloud service operator.
2 . Different Customers
TPG's customers are large enterprises in various industry verticals: telecom, financial services, internet and high technology and public transportation and etc.
IIG's business mainly services "long tail" markets in IT services, including SMEs and local governments, and individual programmers and small programming teams. Essentially, the users of Jointforce (both contract awarding party and also programmers) pay a rental fee to the platform operator.
3 . Different Markets and Competitive Environment
TPG services the traditional ITS markets, with competitors being mainly specialists within a domain, or other IT service vendors such as Neusoft, iSoftstone, Gaoweda, ChangLiang Keji and Yuxinyicheng and etc.
IIG is a new cloud based digital crowd-sourcing operator, with competitors being other crowd sourcing platforms such as ZBJ.com and Open Source China and other cloud software service vendors.
4 . Different Service Content
TPG provides services including: industry vertical solutions, product engineering, application system development and testing. Product solutions include: big data in financial services, big data middleware, banking risk management solutions, financial credit and funding solutions and card management solutions.
IIG's main services provided include: membership management, transaction facilitation, payment services, social blogs/media and cloud delivery process software rental and so on.
Chinasoft International Limited Interim Report 2016
ChinaSoft International Limited published this content on 29 August 2016 and is solely responsible for the information contained herein.
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