GNG.L Regulatory News (GNG)

23 Jun 2006 08:15

Not for release, distribution or publication in whole or in part in or into theUnited States, Canada, the Republic of Ireland, Australia or Japan.23 June 2006 GEONG INTERNATIONAL LIMITED PLACING AND ADMISSION TO AIM GEONG International Limited ("GEONG" or the "Company"), a leading provider ofcontent management solutions software in China, announces that, with effectfrom 08.00am today, its entire issued ordinary share capital has been admittedto AIM and will be traded under the symbol GNG.GEONG has established itself as one of the market leaders in the PeoplesRepublic of China in providing content management solution software productsand related services for large enterprises. GEONG's flagship product range, theGEONG PortalAge series, is used by the top 5 Chinese banks and 12 out of thetop 20 securities firms in China. It is an enterprise server software productwhich combines a number of optional business solution components andcustomisation modules that can be used to provide individual solutions for arange of industries including those that require real-time or time criticalapplications such as internet banking.In August 2005, GEONG launched a comprehensive, out of the box, collaborationsoftware application product, GEONG SmartBOX, targeting SMEs. Since its launch,SmartBOX has received a lot of market attention and was identified as one ofthe three leading trendsetters in collaboration software applications by SmartPartners Magazine (CNET Networks, China) in its October 2005 cover story.The proceeds of the Placing will be used to: * expand the Company's sales force; * further enhance the Company's market position particularly by targeting large accounts in the banking and financial services sector; * enhance general functions and performance of PortalAge products and continue to develop new versions of SmartBOX; and * provide further working capital. In recent years GEONG has experienced rapid growth. The Directors believe thatthe Group is well positioned, as one of the leading content management solutionproviders in China with a successful track record with blue chip customers, totake advantage of market opportunities and effectively undertake its expansionplans.Henry Tse, Chairman of GEONG, commented: "Our admission, despite the recentvolatility in the World's financial markets, is testament to the strength inour business model and both our historic financial performance and futureprospects. As an already profitable business, the money raised will allow us tofurther develop our existing suite of products and begin to commercialise theopportunity that our SmartBox software offers."He continued: "I would like to thank all our staff for their continuingcommitment to GEONG and welcome our new shareholders. I look forward to thefuture with optimism."Ruegg & Co Limited is acting as the nominated adviser and Hichens, Harrison &Co. plc is acting as broker.Words and expressions defined in the Admission Document published on 16 June 2006 shall have the same meaning as in this announcement.Key StatisticsPlacing Price 30p Number of Placing Shares being placed on behalf of the 882,310Company Number of Sale Shares to be sold pursuant to the Placing 1,617,690 Estimated net proceeds of the Placing receivable by the ‚£273,000Company* Number of Ordinary shares in issue immediately following the 26,125,364Placing** Market Capitalisation of the Company at the Placing Price on ‚£7,837,609Admission Percentage of Enlarged Share Capital attributable to the 9.57 per cent.Placing * This includes the proceeds from the Sale Shares which will have been used bythe Selling Shareholders to exercise historic options immediately prior toAdmission.** Includes 710,792 Ordinary Shares to be issued pursuant to theconversion of convertible loan notes described in paragraph 7.6 of Part IV ofthe Admission Document. Ends For further information, please contact:GEONG International Limited Ruegg & Co Ltd Hichens Harrison Tavistock CommsHenry Tse - Chairman Brett Miller Daniel Briggs Paul DulieuWang Weidong - CEO Matt RidsdaleT:+86 10 877 30066 T:020 7584 3663 T:020 7382 7776 T:020 7920 3150NOTES TO EDITORSAbout GEONG International LimitedGEONG, which is registered in Jersey, is a company headquartered in Beijing and whose shares are traded on AIM.GEONG has been engaged in the business of content management products and services since September 2000. GEONG has earned a reputation as a local technology leader in the Chinese enterprise content management market, especially in the financial services industry. The Company has developed twoproprietary product ranges: the PortalAge suite designed for large enterprisecustomers and SmartBOX designed to capture the SME market's requirement forcollaboration software.PortalAge is a suite of software platforms with modular architecture and was designed from the outset to run on the Internet. As a result, PortalAge scaleseasily and rapidly to manage thousands of users and large amounts of data. Unlike solutions offering development tools for users to build customised collaborative applications, PortalAge is a ready-to-install configurable application. It adopts an open architecture that is easy to customise and thusshortens project development and implementation time. PortalAge incorporates both international and local Chinese features and its functionality and cost make it more acceptable to Chinese enterprises than other foreign products.SmartBOX is specifically targeted at general business and SME operations management.It is an all-in-one, out-of-the-box, application that is web-based and was developed as a result of past experiences gained from work with large enterprises. By putting collaboration and content management software technologies to practical use, it helps managers improve specific work efficiency and communication effectiveness of working team members. It has a simple architecture made up of optional management function modules plugged to a web-based platform. Directors Henry Hak-Yan Tse (aged 59) - Executive ChairmanHenry worked for 30 years at IBM, from 1968 to 1997. His last positionwas General Manager of IBM China Company Limited in Beijing. He then worked fortwo years at Compaq Computer Hong Kong Ltd in Beijing as Managing Directorbefore joining GEONG in September 2000. He also occasionally practices as amanagement consultant.Henry was born in China and raised and educated as anelectrical engineer in Hong Kong. He emigrated to Australia in 1990 thenreturned to work at IBM China in 1994 and led the rapid growth of IBM PC tobecome the market leader in China in three years. Henry was listed in the bookentitled Knowledge Heroes - the 50 People affecting Zhong Guan Chun publishedby China Information World in 1998. He was also recently named The Man ofHonour of Chinese Software Industry by China Centre for Information IndustryDevelopment, China Software Industry Association, and Software World Magazineon 6 April 2006.Weidong Wang (aged 39) - Chief Executive OfficerMr. Weidong Wang was one of the founders of GEONG and is currently the Chief Executive Officer of the Company. After graduation, he worked for two years at People's Bank of China. He subsequently founded Mandarin International Software Limited in August 1996 and acted as its General Manager. He received his M.S. degree in Automation from Tsinghua University, China.Ping Wang (age 40) - Chief Financial OfficerMs. Wang joined the Company as Chief Financial Officer in May 2006. Shehas a wide range of work experience. She started her career as a hardwareengineer, moving on to become an administration manager, later working as abusiness analyst. She began her finance career as a controller at WisdomNetwork Technology Co. Ltd. (1999-2005). Before she joined the Company, she wasthe finance manager of Cernet Corporation (2005-2006). She received her BSAutomation degree from Tsinghua University, China in 1989, and her MBA degreefrom Peking University, China in 1999. She qualified as an ACCA (UK) member inMarch 2005.Bo Yuan (aged 42) - Non-executive DirectorMr. Bo Yuan was born and educated in Beijing, China. He worked at IBM China Company Limited for 11 years from 1990 to 2000. He was the general manager for IBM's China channel business. He was four times recognised as IBM's best salesman, member of the Golden Circle Club, and was elected the president of the Club in 1996.Mr. Yuan joined Hi Sun Group as Chief Executive Officer in 2000. During the three years with Hi Sun, he transformed the company into a high-value service company. The return to investors has increased consistently as the result of the transformation and was rated one of the best IT companies in China. He then founded his own company, Bayshore Consulting and Services Company Ltd. in 2003. Bayshore now is one of the leaders in providing IT services to banks in China. Mr. Yuan holds a Bachelor's degree in Electrical Engineering and a Master's degree in Business Administration from Tsinghua University, China.Peter Williamson (aged 48) - Non-executive DirectorPeter Williamson is Professor of International Management and Asian Business at INSEAD in Fontainebleu and Singapore. With a first degree in economics, hisbusiness career began in banking with Merrill Lynch in London, Sydney and New York. He then went on to complete his PhD in Business Economics at Harvard University in 1984. This was followed by four years with The Boston Consulting Group before joining the London Business School where he taught strategic management and directed executive programmes in Japan and South East Asia. In 1990, he became Dean of MBA Programmes and this was followed by an appointmentas Visiting Professor of Global Strategy and Management at Harvard Business School.Peter has acted as consultant on business strategy and international expansion, as well as serving on the boards of numerous companies throughout the Asia-Pacific region as well as in Europe and North America. His research and publications span globalisation, strategy in Asian markets, acquisitions and alliances, and strategic innovation. He is currently Chairman of the globalhedge-fund manager, Tactical Global Management Limited and Chairman of an e-learning company, Imparta Ltd.This announcement is not for release, distribution or publication in whole or in part in or into the United States, Canada, Republic of Ireland, Japan or Australia. The information contained herein does not constitute an offer of securities for sale in the United States, Canada, Republic of Ireland, Japan or Australia.This announcement has been issued by the Company and is the sole responsibility of the Company and has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Ruegg & Co Limited of 39 Cheval Place, London SW7 1EW.This announcement does not constitute or form part of an offer, or any solicitationof an offer, for securities and any purchase of or application for shares in thePlacing should only be made on the basis of information contained in the AdmissionDocument. The price and value of, and income from, shares may go down as well as up.Persons needing advice should consult a professional adviser.The information contained herein is not for publication or distribution in or into the United States.The materials do not constitute an offer of securities for sale in the United States,nor may the securities be offered or sold in the United States, nor may the securitiesbe offered or sold in the United States absent registration or an exemption fromregistration as provided in the Securities Act of 1933, as amended, and therules and regulations there under. There is no intention to register anyportion of the offering in the United States or to conduct a public offering ofsecurities in the United States. The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption of registration or qualificationunder the securities laws of any such jurisdiction.Ruegg & Co Limited ("Ruegg") is regulated in the United Kingdom by the Financial Services Authority and is acting solely for the Company in connection with the Placing and Admission and no one else. Ruegg has been appointed as nominated adviserto the Company. Ruegg will not regard any other person as its client or be responsibleto any other person for providing the protections afforded to clients of Ruegg nor for providing advice in relation to the Placing and Admission. Ruegg is not making any representation or warranty, express or implied, as to the contents of this announcement. Ruegg accepts no liability whatsoever for the accuracy of any informationor opinions expressed in this announcement or for the omission of any information.Hichens, Harrison & Co. plc ("Hichens Harrison") is regulated in the United Kingdom bythe Financial Services Authority and is acting solely for the Company inconnection with the Placing and Admission and no one else. Hichens Harrison hasbeen appointed as broker to the Company. Hichens Harrison will not regard anyother person as its client or be responsible to any other person for providingthe protections afforded to its clients nor for providing advice in relation tothe Placing and Admission. Hichens Harrison is not making any representation orwarranty, express or implied, as to the contents of this announcement. HichensHarrison accepts no liability whatsoever for the accuracy of any information oropinions contained in this announcement or for the omission of any information. 1 of 4 ENDGEONG INTERNATIONAL LIMITED