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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)