New kid on the block...

Aside from RNS

Anyone got info they can share?

Any discernible reason for the freefall since May? Can't find any news on them.

I've jumped in today. I'm hoping that this is the bottom and that the changes made to the system during the next 4 months to appease some of the local tax authorities is going to mean the green light for the firm and its product. And if that happens revenues will obviously soar. Well, here's hoping anyway!

Hi Folks,

I've just been on the ADVFN site and thought this might be of interest. It has been taken from a site called lemminginvestor and has been posted courtesy of a forum member :


The company's performance is not being properly considered.

The Dell contract alone is worth 20% of annual sales, and that signed in May with Capitek for $450k adds another 7%. Gross margin was up from 71% to a colossal 82% in H1. Any increase in sales has a very large marginal effect on profits.

The condemnation of the company for falling sales is greatly out of place . Sales were only down by 3%, Y on Y, brought about almost certainly by a standstill in export tax sales expansion whilst the mods requested by Central Government are being implemented. It is hoped that after delays, this will kick off in May. Roll out of this monopolisic contract is intended to cover the whole of China's 36 provinces - a market x17 times the size of SFT's current local effort.

Operating profit was burdened with the cost of launching on AIM, and would otherwise have risen, but is still exceptional at 49%. Much would have been taken out to cover a sales expansion drive including a new sales office opened in Shanghai.

The sales drive has more than doubled the size of area served. Anhui province (60m population) now the subject of a completely new sales drive, almost doubles the potential market currently concentrated on neighbouring Jiangsu (72m pop).
The expansion has also taken on the island province of Hainan (7m) and Yangzhou City (7.1m pop)

Some of this will yield sales in H2, which will also benefit from seasonal increase, though this will have to compensate for any temporary slow down in orders for the export tax software - the core business. Nevertheless with all the business SFT is developing with large western companies manufacturing in China for export, the future is undimmed.,

lemminginvestr.com

Thanks Iankn73 - I see absolutely huge potential in SFT which is why I'm in!

A nice climb today. Far more volume than usual.

Well I bought at 16.5p and it's been below that price ever since so this is the first time I have been in the blue! Still see absolutely huge potential!

got in at a touch below 17p today, this co is looking v good imo

Another queen? Welcome to SFT and congratulations for getting on board!

Another nice tick up today against the overall market grain as well!!

Absolutely Iankn73 which makes the performance all the more impressive. Could this be the start of a climb back up to the heights of this time last year? If it can weather days like today then it's certainly a possibility!

6th March - Sinosoft Technology said its pretax profit for the year to Dec 31 grew 10 pct on-year to 3.815 mln usd as revenues rose 37 pct to 8.4 mln usd.

The provider of software and IT services to Chinese government agencies and export enterprises said it expects revenues to grow more quickly in the second half of 2007 as it proceeds to the pan-China rollout stage of the State Administration of Taxation contract.

The AIM-listed company added delays to the project's rollout impacted profit and revenue in 2006.

Bring on the roll-out. I'll need to stop this I'm wishing my life away!!

You'll have no time left to spend all that lovely cash!!

China-based Sinosoft Technology PLC said it is confident of delivering continued strong growth, with the roll-out of the delayed state administration of taxation (SAT) project commencing shortly.

The software provider to Chinese government agencies and export enterprises said in an AGM statement that the SAT project is now progressing well and the product simulation phase is due to be completed very soon. It added that Anhui Province has been selected as the first province to follow Jiangsu Province for the planned China-wide roll-out with installation of back-end software at tax bureaus and sales to exporting enterprises expected to commence in the third quarter.

'Your board has been pleased with the progress in 2007 so far and, with the SAT roll-out commencing shortly, remains confident that Sinosoft will continue to deliver strong growth,' the company said.

Hi queen1,

Some nice news. The second-half of the year should be very interesting!

Good luck,

Ian

I think so - and to you!!

Maybe some imminent news due regarding the roll-out as the last two days have been blue.

This is old news dated from 13.03.06 I just thought I would post it to remind some of us why we invested in this co. in the first place:

From Monisha Varadan of Allnewissues.com

These recommendations do not constitute advice, please read the risk warnings

One of the largest players in the Chinese e-government market has listed on AIM. Sinosoft Technology presents an attractive buying case, offering four reasons why investors should consider these shares: it is one of the only providers of export tax software to exporting companies; it provides its services to more than 28,000 customers; it has signed an agreement with the Central Chinese tax authorities to roll out its tax software across all regions over a four-year period; and it is profitable and trades on a current year PE of 10. The group placed shares worth $17 million at 19p prior to its admission and the shares opened at a 12% premium on the first day of trade last week. At the placing price, Sinosoft Technology is worth 33 million, or $55 million.

Operations

Sinosoft is the UK holding company of Skytech. Skytech was founded in 1998 in the Jiangsu province by a woman called Xin Yingmei and six other shareholders. Investors should probably know that Xin Yingmei sold shares worth $2 million in the placing, only to distribute the proceeds to her 30 employees at Skytech. Skytech was formed as a software development company focussing on taxation software. The company entered the market in response to the Government Online Project (GOP) launched in 1999.

It battled on, hoping to win customers, and it secured its first contract with an offer to digitise the entire tax system in the Jiangsu province. Sinosoft had to fight off 18 other vendors over three rounds of tendering. The contract transformed the company as it propelled it onto a high-growth path. In 2002, the group took on its next province and signed a contract with Nanjing City Corporation. By 2004, it had signed its third province, providing tax software systems to the Hainan region. And in December 2005, the group signed a contract with the State Administration of Taxation which should now see Sinosoft roll out its software across the nation over the next five years. Analysts expect the number of regions to increase from two to nine, pushing up customer numbers from 28,000 to 60,000 and doubling revenues to $15.2 million by the end of 2007.

It is estimated that IT spend, especially on e-government software, will increase from $5.8 billion to $9.76 billion by 2008. Following the launch of GOP, the central authorities set up the 'Golden Project' which was, essentially, to digitise the nation's information systems. As a result of the Golden Project, Sinosoft should pick up more contract wins from local authorities looking to convert paper-based tax systems into online information logs, and exporting companies will be buying more Sinosoft software to help them link up with the local authority systems. The business has a third arm that completes its offering - IT services, management and integration service, which acts as an add-on service for existing customers.

Business Development

Sinosoft derives a third of its revenues from selling export tax software and the remaining two thirds is generated from sales of e-government software and add-on services. The last set of results for the year to December 2005 revealed a pre-tax profit of $3.38 million on turnover of $6.287 million. The group had cash of $3.3 million at the year end. From the $17 million raised, Sinosoft intends to use $6 million on sales and marketing, $3.8 million on R&D, and will repay a $2.4 million loan. In the current year, analysts are looking for sales of $11.2 million, partly resulting from the government contract win. Profits in the current year are forecasted to come in at $5.46 million. With more territories under control and more local authorities buying the Sinosoft software, profits are expected to increase to $7.1 million on sales of $15.5 million, putting the stock on a single digit PE.

Management

Xin Yingmei is the Chief Executive Officer and one of the founders of Sinosoft. She is responsible for setting the overall business strategies of the group. Prior to this role, she worked with the Nanjing Olympic Computer Company, and was vice-Chairwoman of Nanjing Honest Electronics Company. Mao Ning serves as Chairman and is currently director and associate dean at the Nanjing University Business School. Dai Jianbiao, Chief Operating Officer, is responsible for operations, engineering and project implementation. He has served as the general manager at Shanghai Dragon IT.

Investment Conclusion

We are conscious that Allnewissues has recommended five Chinese floats over the last 12 months and, surprisingly, all of them - China Biotech, China Education, Asian Citrus, China Shoto, and China Eastsea Business - have performed well-above our expectations. There is no denying that Sinosoft shows similar potential. It is an undervalued, profitable business that has signed a significant contract win that is sure to boost revenues and profits. The only risk is if the government decides to pull the plug, which, given the levels of bureaucracy, is highly unlikely. The company has secured its position by being first to market and, therefore, creating barriers to entry. The business is trading on an undemanding price/earnings ratio and, even at the current share price, we recommend the shares as a speculative buy.


Good luck all,

Ian

Good news today for all those that hold these shares. Don't be surprised if they drift down a little over the next few weeks. However, it appears (fingers crossed) these shares might finally have started to gain some momentum as the rollout of their software edges closer. Good luck to all those that hold. And to all those that don't - why not dip your toes?

Good news indeed.