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 85869655
Henry Tse, Chairman
Weidong Wang, CEO
Nomad and joint broker
finnCap Tel:
+44 (0) 20 7220 0500
Stuart Andrews
Jonny Franklin-Adams
About GEONG International Limited
GEONG 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/
