Collection of cash in the first quarter was GBP 2.2m in accordance with the
Weidong Wang, Chief Executive Officer of GEONG, commented:
Following the disappointments in 2012, the Company has stabilized its trading.
In the interim results, we reported a decrease in revenues compared with the
same period of 2012 but with the benefit of the new customers gained during
H1, in both IaaS and SaaS business segments, the Company has had a much more
encouraging second half of the year, enabling us to bring the overall revenue
back to near the 2012 level.
We are aware of the need to improve the working capital position through the
quicker collection of receivables. A dedicated employee has been recruited to
focus entirely on all collection and invoicing opportunities. Though major
improvement will not be immediately evident, the Company is ensuring that the
collection opportunities are monitored.
Despite the small decline in profitability from FY2012, GEONG management
believes that the Group is now better placed to be more selective over the
IaaS business that it takes on and to attract more SaaS business, which will,
in turn, result in shorter cash collection periods and higher average gross
margins. Although this policy will temporarily limit the growth of the IaaS
business this will be compensated, in due course, by strengthening SaaS
revenues and margins, which will provide the backbone for growth in both
revenues and profits in the coming years.
The Annual Report will be posted to all shareholders who request a copy and is
available on the Company's website www.geong.com. The Company's AGM will be
held at GEONG International Room 1901-1902, Tower A, Ocean International
Limited, No. 56, Zhonglu East 4th Ring Road, Chaoyang District, Beijing P.R.C.
100025 on 26 September 2013 at 9:00 amUK time The Notice of AGM and proxy
card will be posted to all shareholders.
For further information, please contact:
GEONG International Limited www.geong.com Tel: +86 10 8586 9655
Henry Tse, Chairman
Weidong Wang, CEO
David Tsui, CFO
Financial Adviser and Joint Broker
Evolution Securities China Ltd Tel: +44 (0)20 3362 8888
Nomad and Joint Broker
finnCap Ltd Tel: +44 (0) 20 7220 0500
Stuart AndrewsBen Thompson
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 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.