Business Review
On behalf of the board of directors (the “Board”) of Soluteck Holdings Limited (the “Company” and together with its subsidiaries, the “Group”), I am pleased to announce the results of the Group for the year ended 31 March 2007. The Group recorded an increase in its revenue to approximately HK$63.8 million, representing an increase of approximately 87.3 per cent., as compared with the revenue for the year ended 31 March 2006 of approximately HK$34.1 million. The management believes that such an increase should be a result on the marketing effort the Group has put during the year.
The Group continued to specialize in the provision of implementation and upgrading of self-service automatic teller machine (“ATM”) systems and other systems, related application hardware and software, technical support and consultancy services to commercial banks and postal bureaus in the People’s Republic of China (the “PRC” or “China”) during the year ended 31 March 2007.
Pro-active efforts to explore and ascertain the Group’s business development thrust started to show encouraging signs of fruition in 2007 – a year that witnessed a satisfactory growth and business development for the Group in that the Group had made significant progress in the sales of ATMs to commercial banks, the China State Postal Bureau and the Rural Credit Cooperatives of China in the PRC. The successful bid of the tenders of the Hubei and Jiangsu Postal Bureaus represented breakthroughs in implementing the Group’s marketing strategy. On top of that, new contracts were successfully and successively secured with a number of financial institutions and postal bureaus like the Commercial Bank, the Bank of Communications, Shanghai Pudong Development Bank and several postal bureaus for the provision of system maintenance and enhancement services during the year under review.
The Group had established its position as an “ATM Total Solutionist” in the information technology market in the banking and postal industry in the PRC. Leveraging its extensive experience in the applications of information technology in both the banking and postal sectors and the long-term business relationships with reputable commercial banks and postal bureaus in the PRC, the Group expanded its business in the PRC at a satisfactory pace.
Internally, two subsidiaries of the Group, namely, Soluteck (Shanghai) Communication Technology Ltd. and Soluteck (Shanghai) Technologies Limited, had accomplished their ISO9001:2000 quality management certification through strict controls on organizational structure, staff number and operating procedures to ensure that optimum management standards and operational capabilities are always in place during the year ended 31 March 2007.
Externally, by the establishment of the network of ATM services centers to cover a total of 29 strategic cities and locations in China, the Group’s service network in China has been strategically refined to reach out and foster relationships with existing and new clients.
BUSINESS PROSPECTS
In the presence of a strategic partnership agreement which has been signed by the Group with a subsidiary of NCR Corporation in China in April 2006, and the Group, being a prestigious and experienced professional ATM software, hardware and services company in the ATM sector, together with its existing reputation as an authorized value-added reseller of self-service ATM systems of NCR (Hong Kong) Limited and related applications software for commercial banks in China, will fully commit itself to be one of the leading ATM Total Solution Providers in the banking sector in the PRC, offering a full range of banking and financial system solutions for the banking and financial sectors, from the supply of hardware to software development, banking applications to value-added complementary services. In addition, it will also persist to put efforts on enhancing closer customer relationships, broadening business relationship and exploring new business opportunities in corporate outsourcing technical service sector, so as to better satisfy the demand from the financial sector in China for advanced global self-service equipment solutions’ products, technologies and extensive trans-national industrial experience.
Specifically, the Group will aim at raising profitability through stronger management, tighter cost control and robust business development. It will further expand its customer base and market coverage for the provision of self-service ATM systems and its related services to the banking and postal sectors.
We expect the coming year yet to be more promising but still challenging year for the Group. However, leveraging on our prudent and experienced management and our strong and determined workforce, the Group, by keeping on boosting its marketing effort in the PRC to bring in new customers, will strive to maintain and expand its operations farther, thus expanding our market share while at the same time bringing along greater return to our shareholders.
APPRECIATION
As at 31 March 2007, the Group employed 11 and 129 staff in Hong Kong and the PRC, respectively. We treasure the harmonious relationship with our staff and would like to take this opportunity to express our gratitude to the management and staff of the Group for their dedicated performance which is instrumental to the future development of the Group. We would also like to take this opportunity to thank our shareholders, suppliers and customers for their continuous support to the Group.
