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ChinaSoft first half revenue up 21pc on IT outsourcing growth

Huawei Technologies-backed software and information services provider ChinaSoft International posted a 20.8 per cent year-on-year rise in interim revenue on growth from core customers and contributions from its information technology outsourcing platform Joint Force.

ChinaSoft, which provides IT outsourcing, reported revenue of 2.88 billion yuan (HK$3.37 billion) for the first six months of the year, up from 2.39 billion on the same period last year.

A Reuters full-year estimate for 2016 for ChinaSoft expected revenue to reach 6.33 billion yuan, up from 5.129 billion yuan in 2015.

Profit attributable to shareholders was 236.24 million yuan, up 69 per cent on the same period last year.

ChinaSoft’s stock closed down 0.55 per cent at HK$3.60 a share on Tuesday. The stock is down 6.25 per cent since the beginning of January.

China’s IT services market is expected to grow 8.1 per cent in 2016 to US$28.54 billion, according to technology research firm IDC.

Revenue from the company’s Technology and Professional Group (TPG), the service for large customers and large industries, grew 30.1 per cent year on year to 2.29 billion yuan, with growth from core customers including Huawei, HSBC and Tencent.

Earlier this month ChinaSoft said it would spin off its Technology and Professional Group via an A-share listing through a reverse takeover of Shanghai-listed But’one Information Corporation, Xi’an.

Upon completion, ChinaSoft International will own a 72.18 per cent stake in But’one. The preliminary consideration for the reverse listing is 6.33 billion yuan.

On Monday, the company said further details of the spin-off had been delayed but would be published before the end of September.