GEONG International Limited
新锐国际
Wade Wang, CEO
Amit Thakar, CFO
March 2012, Beijing
GEONG International
An active player to capture internet growth in China
Key Facts, 31 Dec 2011
430 Employees
4 core markets
- Financial service sector
- Telecom
- Automotive
- Manufacturing & Consumers
3 new sectors
- Energy
- Digital economy
- Transportation
1 SaaS solution – Enterprise
Social Business
- Social Marketing
- Social Commerce
- Social CXM
 GEONG is a leading independent internet software solutions provider and
operator for large enterprises in China
 Founded in August 2000, quoted on LSE AIM in June 2006
 GEONG Offerings: Smart Internet Solution

IaaS (Information as a Service) solution: GEONG/IBM and GEONG/Oracle Smart Internet Platform

SaaS (Software as a Service) solution: Social Business is operational enterprise social business
solution powered by cloud computing technologies
 Long-term business relationship with blue chip clients in the banking, telecom,
manufacturing and automotive sectors
 Long-term strategic partnerships with IBM and Oracle in Asia Pacific

200+ IaaS clients and 16
SaaS clients
-200+ IaaS solution clients
-16 SaaS Solution clients
2 Strategic partners
-IBM and Oracle
4 Offices, 2 Countries

IBM China: Strategic partner in IaaS business

1 of the 5 Core Service Suppliers (‘CSP”) of IBM Business Service (‘GBS’) and IBM Global
Delivery (‘GD’)

1 of the Top 20 Independent Software Vendors (‘ISV’) of IBM Software Group (‘SWG’)
Oracle China:

Strategic partner of Oracle Fusion Middleware (‘OFM’)

Strategic partnership in the new SaaS solution
 Experienced international and local management team
2
China Internet Usage and Trends
social business, mobile internet and digital economy
China Internet key facts, 2011
Social Business
216m SNS users by 2010,
forecasted 425m SNS users
 Social Business
•
Social Business will become a must-have business application in 3 years
•
Large enterprises are seeking the operational partners to help design,
establish, perform and manage their social business
by 2013
Source: Enfodesk
Mobile Internet
431m mobile internet users
by 2011, forecasted 600m
mobile internet users by 2012
Source: Enfodesk
eBusiness
Rmb6trillion trading
volume of B2C/B2B/C2C in 2011,
YOY growth around 33%,
forecasted CAGR 40% YOY growth
by 2012
Source: MINISTRY OF COMMERCE
PEOPLE’S REPUBLIC OF CHINA
 Mobile Internet
•
Chinese mobile internet users will exceed traditional internet users in 3
years
•
Mobile internet applications are shifting from consumer based
applications to business based applications
 Digital Experience Economy
•
eBusiness will become the core competencies for traditional businesses
•
Continuous new online offerings to enhance user/customer online
experience have become a new driving force for Chinese digital economy
GEONG strategy is driven by internet’s trends and usage growth
3
Our products and new solutions
FSS
-Internet Transaction & Portal
-Wealth Management
-Social Marketing
-Social CRM
Telecom
Auto
-Services Portal
-Customer Relationship Mgt.
-Sales Force Automation
-Social CXM
-Dealer Management Sys.
-Electronic Procurement Sys.
-Employee Portal
-Social Marketing
Manufacturing
-Channel Management
-Employee Portal
-Social Commerce
-Social CRM
General Businesses
-Sales Force Automation
- Social Marketing
-Social CRM
-Project Management
Smart Internet Solution
Consulting
Service
Customization
IaaS Solution – Smart Internet Portal
Application
Integration
Product
Support
SaaS Solution - Social Business
Customer Portal
Social Marketing
Enterprise Portal
Social Commerce
B2B Portal
AMS
Social CXM (customer Experience Management)
Smarter Internet Platform with IBM/Oracle middleware
Social business operation on cloud computing
Consulting, implementation and maintenance
Industry Specific Solutions
4
IaaS revenue model and collection
Revenue Stream
Revenue Mix
Gross Margin
1 Product
Smarter Internet Platform
20% - 25%
15% - 20%
70% - 60%
45% - 55%
10% - 15%
55% - 60%
100%
40% - 45%
2 Services
Consulting
Customization
3 AMS
Application Management Service
Accrued Income
Trade receivables
Collection Timeline
Day 0
Day 60 - 90
1st Milestone achieved
Day 400
invoices issued
Day 460
collection
5
SaaS revenue model and collection
Revenue Stream
Revenue Mix
1 Subscription fee
Gross Margin
15% - 20%
80% - 90%
75% - 65%
45% - 50%
10% - 15%
70% - 80%
100%
50% - 60%
Subscription fee for solution
2 Annual operation fee
Biz operation
IT operation
3 Performance fee
Performance fee
Trade receivables
Collection Timeline
Day 0
Day 90
1st Quarterly invoice
Day 150-165
Collection
6
GEONG has a market leading position in
internet software solutions in China
 GEONG’s USP:
 Smart Internet Platform integrates GEONG products and IBM/Oracle
middleware technologies
 Smart Internet Solution is Industry specific solution combines best
industrial practices with technology innovations
 New business model offers traditional IaaS solution plus innovative SaaS
solution on cloud computing
 Sales effectiveness significantly enhanced by the strategic partnership with
IBM and Oracle in Asia Pacific
GEONG will maintain its position as a leading internet software solutions
provider and operator for large enterprises in China
7
Sales Strategy – Go Deep & Broad
Corporate Strategy
GO DEEP
Go Deep
- Industry: From blue chip clients to 2nd tier clients
- Client: From IaaS solution to SaaS solution
SaaS business
Go Broad
- Geography: From China to Asia Pacific with IBM/Oracle
- Industry: From core markets to new industries with IBM/Oracle
- Client: From current business units to new business units
Internet business growth
at CAGR: 50%-70%
IaaS business
Internet IT Capex at
CAGR: 20%-30%
Maximise business and profit through
repeatable business from the same
client
• Partner with client’s internet business growth
• Grow with Internet IT Capex growth
GO BROAD
8
GEONG’s future
Social
Marketing
Social
Commerce
Mobility
apps
Social
CXM
Objective:
To become the largest enterprises’ social
business solution provider utilizing cloud
computing technologies in China by 2016
Social CRM
……
Cost per customer
To aim to perform and manage social business clouds
for over 1,000 large enterprises and to serve more
than 200m of their users or customers
……
No. of customers
 We are aiming to build the biggest enterprises’ social
business network in China utilizing cloud computing
technologies
• Revenue grows with the client’s internet business’s growth
• Gross margin will steadily increase when more clients utilize our
public clouds
• The cross industries’ social networking service will help our
clients extend their businesses and build a higher entry barrier to
market followers
9
Trading outlook

Healthy balance sheet: £4.1m collection in Q3, net cash balance of £6.1m

Accrued income will however remain at a high level as we hold back on
issuing invoices to coincide with customer payment cycle to minimise VAT
paid awaiting recovery

Current order book £14m

Confident of a satisfactory outturn for the full year
10