LONDON (Alliance News) - Geong International Ltd Wednesday expressed confidence in its long term success, although market conditions remain challenging in China, and it warned there will be a delay in recovering some of its revenues.
The Beijing-based software and services company said it can confirm it expects revenue in the region of GBP8 million for the full year to end-March, however it warned that this amount remains conditional on the agreement by some clients on the work performed and what milestones were met.
It is currently expected to recognise around GBP1 million for work performed for a long standing large customer, however this customer is undertaking a major organisation and personnel change, which means that there will be a delay in recovering this revenue. It is currently considering whether any provision should be made against this revenue.
"Chinese internet market is undergoing rapid change and the Company is focusing on adapting to changing conditions quickly in order to take advantage of any new opportunities," Geong said in a statement.
Shares in Geong are trading down 25.1% at 1.97 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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