New kid on the block...

Aside from RNS

Anyone got info they can share?

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.

Yes, good news. As per your prediction pma68 the SP is slightly off today but I'd be surprised to see 20p broken on the downside now and only see upside from here (assuming the roll-out continues on the revised timetable).

It looks like more investors are starting to waken up to this one.

Good luck all and have a good weekend.

You too Iankn73.

6.5% tick up this afternoon and we should see a gradual climb (market permitting) as interims due 20th September and expecting positive news. Looking forward to the date ;))

Well let's hope the overall market trend is better around the interims because if not any good news could still get lost in a sea of red.

A good set of results from a great company with excellent prospects:

Sinosoft Technology posted an increased first-half pretax profit in line with its expectations and said it is actively looking for acquisition targets that will complement its business and facilitate expansion in China.

The China-based software services company reported pretax profit of 1.50 mln usd compared with 1.15 mln usd a year ago. Revenue rose 33.1 pct to 3.63 mln usd against 2.72 mln usd a year earlier.

The AIM-listed company said its revenues are weighted to the latter half of the year and that it sees full-year results in line with its expectations.

Sinosoft said it sees the higher than expected revenues from systems integration more than compensating for any delayed sales resulting from the interface issues in Anhui. It developed six new products in the first half, which are already revenue generating and it expects them to make significant contribution to the company's revenues in the coming years.

Good results right enough queen1,

Its also reassuring to know that their resources arent solely focused on the roll-out. e.g. they have also developed six new products, which are already generating revenue and are looking for acquisition targets.

I'm particularly interested in the roll-out next month in Zhejiang province. I just hope SFT release regular updates when each province has had a successful roll-out.

I have taken this info from another poster at ADFVN so dont know how accurate the figures are but they certainly look impressive:

Exports from Chinese provinces 2005

Jiangsu $123 billion
Zhejiang $76.8 billion
Anhui $5.19 billion

So Anhui not likely to be very important - Zhejiang much more so.

Good luck,

Ian

What's happening here today? Down 17%, apparently out of the blue. Anyone shed any light?

No, afraid not. I have been holding these for about 12 months in expectation of a decent rise in the share price next year when they accelerate the roll-out of their software. Starting to wonder if I might be disappointed (again)!