GNG.L Regulatory News (GNG)

GEONG International Limited ("GEONG" or the "Company") Trading Update GEONG International Limited (AIM: GNG), a leading Internet software solutionsprovider and operator for large enterprises in China is pleased to provide thefollowing update ahead of the Company's announcement of audited results, whichit expects to release during the second half of August 2014. Since the release of the interim results on the 20 December 2013, the Companyhas continued to pursue its strategy for achieving greater gross margins andgenerally shorter payment terms by focussing more on SaaS business. Progresshas been made and the Board expects the accrued income balance at 31 March 2014to be lower than the balance the previous year. The board continues toprioritise the reduction in accrued income. During the second half of the financial year to 31 March 2014 the Company wonCITIC Bank and Cinda Group as SaaS clients, taking the number of SaaS clientsto 28 at the year end. The new client wins are expected to generate revenues inthe region of £0.3 million during the 12 months to 31 March 2015. Trading performance for the year ended 31 March 2014 was in line with theCompany's expectation in local currency, however, due to the appreciation ofsterling, it is expected Geong will report revenues around £8.0 million and avery small profit before tax. Both the increase of the SaaS revenue and theappreciation of sterling have affected the Company's year end trade receivablesbalance which is expected to be lower than that of the previous year. The cash balance at 31 March 2014 was £3.6 million (net cash £2.0 million). Asannounced on 28 March 2013, CULS of £1.0 million are due for repayment by theCompany on 30 June 2014. The Company is currently making the necessaryarrangements to enable it to have sufficient resources capable of beingtransferred out of China. Market conditions remain challenging but the Boardremains confident of GEONG's business model and it's potential. For further information, please contact: GEONG International Limited www.geong.com Tel: +86 10 8586 9655Henry Tse, ChairmanWeidong Wang, CEO Nomad and joint brokerfinnCap Tel: +44 (0)20 7220 0500Stuart AndrewsBen Thompson About GEONG International Limited GEONG is recognised as a leading independent Internet software solutionsprovider and operator for large enterprises in China. Registered in Jersey, the Company's operations are headquartered in Beijing,China. GEONG International Ltd. (GEONG or the Company) has been quoted on theLondon Stock Exchange (LSE AIM: GNG.L) since June 2006. The Company has sincetransformed from an ECM (Enterprise Content Management) software and servicecentric business to an internet business centric company. GEONG is an internet solutions and service software company managed by a worldclass management and professional team who collectively own 26% of thebusiness. The Company's mission is to help its clients to improve theirbusiness efficiency and customer satisfaction through smarter internetapplications.

For more information, please visit www.geong.com