Sinosoft Technology plc

1
Sinosoft Technology plc

• Preliminary Results for year ended
• 31 December 2006
• Xin Yingmei (Helen Xin), Chief Executive Officer
• Teo Kean Eek (Jeff Teo), Non-Executive Director
• March 2007

2
Significant Events

• Group business continues to expand outside
  Jiangsu (Wuhu in Anhui)
• 67 staff recruited during period
• 4,912 customers added during the period
• New e-Government software developed
• Revenues grown despite initial delays to SAT roll
  out
• Co-operation agreement with Newgen
• In March 2006, the Company became a Microsoft
  Gold Certified Partner.
• Technical specifications completed for SAT Tax
  software
• Level of expenditure on RD increased - 10 new
  products expected in 2007
• Expansion to Beijing expected in H1 2007

3
National Golden Tax Tender

• Sinosoft has met with all 36 tax bureaus and SAT
  to finalise product specifications
• Final product approved in principle in December
  2006
• Engineers currently encoding product
  specifications
• Final product testing to commence in Q2 2007
• Roll out of product in Q3 2007
• 4,643 export tax software customers added during
  the period

4
e-Government Information Integration Software

• Growing sales of e-Government software outside of
  Jiangsu province
• Developed new areas for e-Government software
• 101 new government bodies, 148 business
  enterprises and 20 science and technology
  institutes have become Sinosoft clients in 2006
• 2million sale to Dell Inc

5
Financials

• Analysis of the Income Statement
• Revenues in 2006 increased by US2,290,310
  comparing to 2005. This follows a large sale
  sales increase in H2 and despite SAT delays
• Reduced net profits owing to increased investment
  and costs
• Increased the level of expenditure on RD
  including 5 major projects costing aggregate
  1million
• 68 of revenues from software sales and 32 from
  system integration services
• Gross margin similar at 70 (2005 72)

6
Financials

• Analysis of balance sheet and cash flows
• Cash balance of 15 million at 31 December 2006
• Long term borrowings repaid
• Other income increased largely due to VAT rebates
• Interest of 305,000 solely from bank deposits
• Currently no tax payable on profits under current
  PRC law

7
Financials
8
Personnel
9
APPENDIX
10
Directors

• Executive Directors
• Xin Yingmei (Helen Xin), Chief Executive Officer
• Professional and experienced manager
  particularly in the software sector. Senior
  member of Nanjing Association of Software
  Industry
• Dr Dai Jianbiao, Chief Operating Officer
• Experienced manager in Chinese IT industry. Phd
  from the University of New Orleans, USA
• Non Executive Directors
• Mao Ning, Non Executive Chairman
• Professor of finance, director and associate
  dean of Nanjing University Business School,
  independent director of Tonmac International,
  listed on Shanghai Stock Exchange
• Mark Greaves, Non Executive Director
• Former Managing Director of Rothschild with
  responsibility for Rothschilds businesses in
  Asia. CEO of Hanson Capital and on the board of
  Gome Electrical Appliances, Chinas largest
  electrical and electronics retail group, listed
  on HKSE
• Teo Kean Eek (Jeff Teo), Non Executive Director
• Chartered Financial Analyst with over 11 years
  investment and strategic planning experience in
  USA, China and Singapore