13 Oct 2008 07:00
13 October 2008 GEONG International Limited ("GEONG" or "the Company") Pre-close trading update
* In-line with market expectations
GEONG International Limited (AIM: GNG), the AIM listed, China based provider of enterprise content management (ECM) software and solutions, is pleased to announce that trading for the six months to 30 September 2008 has been strong. As a consequence, and despite the current global financial downturn, the Company remains confident that its results for the year ended 31 March 2009 will be in-line with market expectations.
During the first half of the year, GEONG's traditional PortalAge(TM) business has performed particularly well and, at 30 September 2008, the Company had in place a confirmed order book going forward of ‚£9.6m. This includes recurring revenues of approximately ‚£4.5m which is as a result of a continued increase in the number of maintenance service contracts being signed by GEONG's larger customers. As a result, the Company expects an overall good year with only a minor impact on the level of PortalAge(TM) contracts or revenues during the second half.
Sales of the Company's SmartBox(TM) products continued well in the first half of the year, although it expects growth rates to reduce during the second half as a result of a general downturn in the Chinese economy. However, the Company believes that the strengths of its PortalAge(TM) offering overcome any slowdown SmartBox(TM) faces and will ensure the Company achieves market expectations at the year end.
Having implemented cash collection targets for each of the Company's business units and made improvements to the Company's general cash collection management systems during the last year, GEONG has seen a significant improvement in cash collection during the last three months. The management team is confident of its ability to carefully manage its cashflows.
The Company will be announcing Interim Results for the six months ended 30 September 2008 on 2 December 2008.
Commenting on the trading update, Henry Tse, Chairman of GEONG International said: "We have had a strong start to the year but acknowledge the tougheningmarket conditions. However, we are confident that, through careful managementand by having top quality products and people, we will be able to achieve ourtargets." - ENDS- Enquiries:Henry Tse, Chairman www.geong.com Weidong Wang, CEO GEONG International Limited Tel: +86 10 5222 0999 Paul Dulieu / Emma Kane / Mike Ward Redleaf Communications Ltd Tel: +44 (0)20 7822 0200 John Depesquale / Parimal Kumar Seymour Pierce Tel: +44 (0)20 7107 8000
Notes to Editors
About GEONG International Limited
* GEONG is registered in Jersey and headquartered in Beijing. Its shares were admitted to AIM in June 2006 and trade under the ticker GNG.L * The Company has provided content management software and solutions since its establishment in September 2000 and has earned a reputation as a local technology leader in the Chinese Enterprise Content Management (ECM) market, especially in the financial services industry. * ECM software is an internet based suite of products that enables companies to capture, manage, store, preserve and deliver content, documents and data across thousands of users, processes and locations. * The Company has developed two proprietary product ranges: the PortalAge(TM) suite designed for large enterprise customers and SmartBox(TM) designed to capture the SME market's requirement for collaboration software. * PortalAge(TM) clients include: Lenovo, Bank of Communications, China Construction Bank, FAW Volkswagen, Shanghai Automotive Industry Corporation, Shanghai General Motors and Air China. * In March 2007, the Company established a Canadian representative office in order to commence the international promotion of SmartBox(TM). * In 2006, GEONG was recognised for the second successive year in the Deloitte "Technology Fast 50 China 2006" and the "Technology Fast 500 Asia Pacific 2006", which recognises the fastest growing technology companies in China and in Asia Pacific respectively. * GEONG has been short listed for the "Best Technology" category at the 2007 AIM Awards, which will be held on 18 October 2007. * In Oct 2007, the company established a Guangzhou branch office in order to commerce the expansion of both PortalAge(TM) and SmartBox(TM) in Southern China. * GEONG's website can be found at www.geong.com
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