Neusoft Group Ltd, China's largest outsourcing company,
yesterday said it will accomplish its ambitious plan to list the
entire entity via share swap with its listing arm, Neusoft Co Ltd,
before July.
"We are proceeding with the paperwork with related government
departments such as the Ministry of Commerce and China Securities
Regulatory Commission to finalize our listing plan," Liu Jiren,
chairman and CEO of Neusoft Group Ltd, told China Daily
yesterday in an exclusive interview on the sidelines of the annual
session of the National Committee of the CPPCC.
"We are expected to get the permission from the government
before July," he said.
Neusoft Group Ltd announced in January that it would go public
by swapping shares with those of its listed arm. Each share in
Neusoft Co Ltd will be swapped with 3.5 shares of Neusoft Group
Ltd. The swapped shares are not allowed to trade within three years
in the stock market.
"It has long been our strategy to get listed and we are happy to
see its progress," Liu said.
"The plan will contribute to integrate our businesses and
improve our transparency and management as well as help us raise
more funds."
According to him, the new Neusoft Co Ltd will continue to focus
on the development of three main businesses: software and services;
education and training; and digital medical products.
After the takeover, the new Neusoft Co Ltd will reportedly be
capable of realizing more than 3.7 billion yuan of its main
businesses and a net profit of over 376 million yuan this year.
"We'll take advantage of the rapid development of the
outsourcing market, both domestically and overseas, to improve our
competitiveness," Liu said.
According to CCID Consulting Co Ltd, a leading Chinese IT market
survey consulting company, the country's software outsourcing
service market reached $1.43 billion in 2006, up 55.4 percent from
the previous year.
Neusoft Group Ltd continued to top offshore outsourcing in China
with its outsourcing revenue of $101 million, growing at 61.1
percent, with a market share of 7.1 percent.
Neusoft Group Ltd has established many software and service
outsourcing bases in Shenyang, Dalian, Shanghai, Chengdu, and
Nanjing.
Liu pointed out that overseas expansion would be an important
part of the company's major strategies in the years to come.
"We are going to set up a new branch in Hungary this year," he
said. With the cooperation of German SAP, the branch will provide
ERP (enterprise resource planning) solutions to European countries,
especially Hungary and Germany.
(China Daily March 15, 2007)