GNG.L Regulatory News (GNG)

GEONG INTERNATIONAL LIMITED - Trading Update

PR Newswire

London, July 22

22 July 2015

GEONG International Limited

("GEONG" or "the Company")

Trading Update 

GEONG International Limited (AIM: GNG), the AIM listed, Beijing based, provider of content management software and solutions, provides the following update ahead of the Company’s announcement of its audited results, which are expected to be released by the end of September 2015.

Since the release of the interim results on 23 December 2014, the Company has adapted its business model in response to evolving Chinese market conditions and customer needs. As a result, over the last few months, the Company has focused the business on the Mobile Marketing Services business in the financial services sector. The Mobile Marketing Services business concentrates on small and medium sized financial institutions for which it operates a combined pre-pay and charge per click (“CPC”) model for the majority of clients. The traditional IaaS and SaaS business has been optimised to focus on our largest clients as set out in previous statements. The Directors believe that this strategy will maximize and speed up the collection of debtors.

During the second half of the year to 31 March 2015 the Company’s Digital Marketing Service and Mobile Marketing Service business has made sales to eight existing financial clients. They are Guangfa Bank, China Construction Bank, Agricultural Bank of China, China Minsheng Bank, China Everbright Bank, Pudong Development Bank, China Bond and New Life Insurance Company. These are expected to generate revenues in the region of £1 million for the year to 31 March 2016.

As set out in the statement of 29 June 2015, the Directors are in the process of drawing up the accounts for the year ended 31 March 2015 ahead of the audit which is expected to commence in early August. The Board can confirm that revenues are currently expected to be in the region of £8m although this amount remains conditional on agreement by certain clients of work performed and milestones met. As part of this revenue the Directors are currently intending to recognize in the region of £1m reflecting work performed for a long standing large customer which is undergoing a major organization and personnel change. As a result of this the Board is aware that there will be a delay in recovering the monies and is considering whether any provision should be made against these amounts.

The Board can confirm that the gross cash balance as at 31 March 2015 was approximately £3.8 million (net cash £1.2 million).

The 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. The Chinese market conditions remain challenging but the Board is confident of the long term success of GEONG’s business.

For further information, please contact:GEONG International Limited http://www.geong.com/ Tel: +86 10 85869655Henry Tse, Chairman Weidong Wang, CEO

Nomad and joint broker

finnCap Tel: +44 (0) 20 7220 0500Stuart AndrewsJonny Franklin-Adams

About GEONG International LimitedGEONG is recognised as a leading independent Internet software solutions provider 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 the London Stock Exchange (LSE AIM: GNG.L) since June 2006. The Company has since transformed from an ECM (Enterprise Content Management) software and service centric 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 the business. The Company's mission is to help its clients to improve their business efficiency and customer satisfaction through smarter internet applications.For more information, please visit http://www.geong.com/