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China Eastsea Bus (CESG)

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Thursday 24 January, 2008

China Eastsea Bus

AIM Admission

China Eastsea Business Software Ltd
24 January 2008

                 ('China Eastsea', the 'Company' or the 'Group')

                            ADMISSION TO TRADING ON AIM

China Eastsea Business Software Ltd, which provides information technology and
business process outsourcing services, announces the successful admission to
trading on AIM today. Evolution Securities Ltd will act as Nominated Advisor and
Evolution Securities China Ltd will act as Financial Adviser and Broker to China
Eastsea. China Eastsea's stock exchange symbol is CESG.

At the close of business on 23 January 2008 the shares were traded on PLUS at a
mid price of 24.5p, giving the company a market capitalisation of £17.02m.
Following the admission to AIM of 69,462,000 ordinary 5p shares trading on PLUS
will be cancelled. No funds are being raised on admission.

The AIM admission document, which was sent to shareholders on Friday 18 January
2008, is available on the Company's website

About China Eastsea

China Eastsea provides information technology and business process outsourcing
services (ITO/BPO), IT consulting and a broad range of project work to clients
in the petrochemical, petroleum, power and telecommunications industries, as
well as to ministries, state authorities, municipalities, agencies and other
organisations throughout the government sector in China.

The services provided by the Group include strategic planning, gap analysis,
alignment, business and technology transformation, performance management and
technology selection and optimisation according to best practices. The Group
offers design, development, implementation, control and maintenance relating to
the use, creation, installation or integration of software, hardware, networks,
systems and technologies. It also provides total ERP solutions from design to
development, implementation, training and maintenance.

The Group has proprietary technology on a management platform provided over
internet, intranet and corporate portals, as well as on information integration.
The Group has successfully leveraged its expertise in search engines and
information management to build customised products to grow its government and
telecommunications IT outsourcing market share.


For the year ended 28 February 2007 China Eastsea recorded revenues of £8.79m
(2006: £4.36m) and pre-tax profits of £2.23m (2006: £1.28m). Basic earnings per
share rose from 1.82p for the year ended February '06 to 3.35p.

Company History

The Group was founded in August 2003 as a joint venture with Sinopec Zhenhai
Refining & Chemical Company ('Sinopec ZRCC') one of the largest oil refining
companies in China. China Petroleum & Chemical Corporation ('Sinopec'), the
parent company of Sinopec ZRCC, continues to hold 50 per cent. of the equity in
Ningbo Eastsea Lanfan Technology Limited, the original joint venture vehicle and
the Group's principal trading operation. Sinopec ZRCC is one of the Group's
major clients and has committed all its IT outsourcing to the Group through an
exclusive contract for 20 years which has 16 years left to run. The contract
with Sinopec ZRCC has contributed approximately £5.4 million of cumulative
revenues in the last three financial years.

The Company's shares were admitted to trading on Ofex (now PLUS) in October

In July 2006, the Group announced the acquisition of Beijing Huashen Huizheng
System Engineering Technology Limited, a profitable IT service provider focused
on the power and governmental sectors in China, for £1.4m.

Business activities

The Group targets four different industries (Petrochemical & Petroleum,
Government Sector, Telecom and Power) and offers a broad range of total IT and
business process solutions concentrating on the three service areas below:

1. IT Consulting

IT Consulting includes strategic planning, gap analysis, alignment,
transformation, performance management, technology selection, best practices and
other consultancy services.

2. Broad spectrum of project work

The Group offers design, development, implementation, project management,
control and maintenance related to the use, creation, installation or
integration of software, hardware, networks, systems and technologies.

The Group has accumulated a great deal of experience in ERP implementation and
support. The Group covers DCS/PLC, MES, ERP, data warehousing and integration of
enterprise information.

3. Enterprise wide outsourcing

The Company provides total ITO/BPO services to cover most of the client's IT
needs, for example, to reduce costs, decrease time to market, focus on core
competencies, to improve quality, and to promote the effective use of systems
and technology.

As a core business, the Company has provided IT outsourcing services to well
known companies in China such as Sinopec, Sinopec ZRCC, CNOOC Daxie
Petrochemical, Yanghong Petrochemical, Hualian Sunshine Petrochemical, and
Ningbo BP. The services provided consist not only of providing maintenance of
computer systems, maintenance of the technology support hotline, system backup
and recovery, management of the system and network, security control, and
software development, but also providing consultation on, and management of, the
construction of information systems and establishing, demonstrating and
implementing new projects.

With Sinopec ZRCC as its biggest client, the Company has managed to position
itself at the leading edge of the petrochemical/petroleum IT outsourcing market
and has established good relationships with its potential clients. The Company
has actively developed its market in the power, telecommunications, metallurgy
industries and government sectors. It has provided e-government solutions for
most of the provinces of China and has provided IT services to many companies in
different industries such as Chalco, Zhejiang Telecom and Hubei Power.

Key Strengths

Management believes that the key business drivers for succeeding in the area of
the Group's service offering are, and will be, as follows:

• The expertise to provide ITO/BPO solutions to specific industries

• Proprietary software that functions as an extension to well
established ERP systems, which should encourage ongoing sales

• Proprietary software that offers function-specific value

• A strong client list in key industry sectors, which provides
opportunities for more follow-up work and the ability to provide impressive
references when bidding for other companies' projects

• A long-term contract with Sinopec ZRCC which has 16 years to run and
has provided cumulative revenues of approximately £5.4m in the last three
financial years (which provides the opportunity for stability and the ability to
focus on new business ventures)

• A technology and service platform that is well diversified and able to
serve clients ranging from small businesses to some of the worlds largest

• A highly experienced senior management team

Growth Strategy

• To maintain its leadership position in ITO/BPO services, IT consulting
and project services in its key markets

• To leverage its client base, subject matter expertise, leading
industry position, its management and operational strength, and its investor

• To increase revenues and profits through mergers and acquisitions and
through increased market share through organic growth

• To expand its business in other existing markets such as the
telecommunications and power industries

• To expand its markets in Eastern China

Reason for Admission

The Directors believe the trading of the Ordinary Shares on AIM will potentially
broaden the current shareholder base and enable investors to share in any future
success of the Group through increased liquidity. In addition, the admission
will increase the public profile of the Group and will give the Group access to
an institutional capital market to help fund its future development and assist
possible acquisitions.

As the Group's clients are mostly state owned large enterprises, they will only
select a large IT Company to provide the IT services to enhance and supplement
their enterprise images. Once the Company is listed on AIM, it should raise the
Group's profile to a higher level and should lead to increased recognition and
confidence from enterprises towards the Group's IT services.

Current trading and prospects

Since the end of the 6 months to 31 August 2007 the business of the Group has
continued to trade in line with the Directors' expectations and the Directors
expect to report turnover that is significantly higher in the year ending 28
February 2008 than the year ended 28 February 2007. The Group continues to look
to expand its business in to new areas and has been making the necessary
investment in personnel to achieve this. In addition to this, the Directors
continue to assess various acquisition opportunities including that of Shanghai
Time Technology Development Limited, which was referred to in the interim
results announced on 30 November 2007. Based on the Group's current trading and
strategic opportunities, the Directors remain confident about the prospects of
the Group.


Eric Zhaofa Zhu - Executive Director, Chairman, Chief Executive Officer, Senior
Engineer (age 42)

Eric is responsible for the Group's general business development planning. He is
the founder of the Group and has 21 years IT experience including 11 years
Government sector experience. Prior to joining the Group, he had worked as the
director and senior engineer of the Technical Department of the State
Information Centre of China and President of Linefan Technology Holdings
Limited, a Hong Kong listed company. He holds a Bachelor's Degree in information
engineering and power system management from Sichuan University, and studied
computer aided design (CAD) in Japan from 1988 to 1990.

Jiansheng Jiang - Executive Director, President, Senior Engineer (age 52)

Jiansheng is responsible for the Group's general business development and
general management planning and joined the Group in August 2003. He has 11 years
IT experience and 22 years petrochemical industry experience. He graduated from
Zhejiang University and holds a Masters Degree in information systems. Before
joining the Group, He worked as the Director of the Computer Centre of Sinopec
ZRCC, General Manager of Ningbo Hisys Computer Limited and Executive Director of
Linefan Technology Holdings Limited.

David Kar Ning Tsui - Executive Director, Chief Financial Officer (age 47)

David is an Australian qualified chartered accountant and will be responsible
for the Group's overall finance function and internal control procedures. He has
over 23 years of financial experience and has worked in Australia, South East
Asia, Hong Kong and China with a number of different large organisations. He was
with Inchcape Plc group in Hong Kong from 1992 to 2002 and was the Chief
Financial Officer (CFO) for Inchcape Plc's China operations from 2000 to 2002
and held various executive and non executive directorship roles for Inchcape
subsidiaries in Hong Kong. Prior to joining Eastsea, he was the financial
controller of Petrocom Energy Limited, a US funded venture in China. David
graduated from Macquarie University in Australia as a Bachelor of Economics and
Master of Economics and is a Justice of the Peace of New South Wales, Australia.

Jennifer Wanjuan Xue - Executive Director, Senior Engineer, Chief Administration
Officer (age 41)

Jennifer is responsible for the Group's administration and human resource. She
has 13 years IT experience and 15 years experience in the power industry. She
holds a Bachelor's Degree in Information Engineering from Sichuan University.
Before joining the Group, Jennifer worked as the professional engineer of the
power consuming control centre of Beijing Electric Power Supply Bureau.

David Bing-Ti Tso - Non-executive Director, Chief Representative of Shanghai
Office of Hotung Group(age 38)

David is responsible for the Group's investor relations strategy and joined the
Group in August 2006. David is the chief representative of the Shanghai
representative office of Hotung Management International Limited, an affiliate
of Singapore-listed Hotung Investment Holdings Limited which is involved in
venture capital and private equity business. David holds a Bachelor's Degree and
a Master's Degree in Economics from National Taiwan University.

Peter Yat Tung Chan - Non-executive Director, Lawyer (age 57)

Dr. Chan is responsible for the Group's legal structure and joined the Group in
September 2004. Dr. Chan holds a Bachelor of Science Degree from the University
of Miami, Florida, USA, and a Doctorate from the Loyola Law School, Los Angeles,
USA. Dr. Chan has worked in the law offices of Jeffery Winter (Lawyer), the
University of International Business and Economic (Visiting Professor) and the
King & Wood Law Offices (Lawyers, Partner). Dr. Chan was also a member of the
American Bar Association, the California Bar Association and a Phi Delta Phi

Thomas Richard Sermon FCIS - Non-executive Director (age 60)

Richard is a non-executive director, and responsible for representing the
company in the United Kingdom. He is Chairman of Gryphon Corporate Counsel
Limited and a group of associated private companies, a director of Europe-China
Investment and Trading Limited, a non-executive member of the Management Board
of The Defence Academy and a non-executive director of The PBN Company. Formerly
a non-executive director of Jardine Lloyd Thompson Group plc from 1995-2005,
Richard also served as senior independent director. He was previously a Director
of Shandwick plc at the time of its flotation in 1985 and subsequently served as
Chief Executive of Shandwick International and other subsidiaries until 1996. He
also served as a non-executive director of The Defence Storage and Distribution
Agency from 1999-2006 and of Newmond plc from 1996-2000. A Chartered Secretary,
Mr Sermon is resident in the United Kingdom.

China Eastsea                         Evolution Securities Ltd         Parkgreen Communications Ltd
David Tsui, Financial Director/CFO    Stuart Andrews                   Paul McManus
Tel: +86 574 2880 2289                Tel: 020 7071 4300               Tel: 020 7479 7933
Mob: +86 138 1668 5470                [email protected] Mob: 07980 541 893
[email protected]                                            [email protected]

Angie Chen, Company Secretary         Evolution Securities China Ltd
Tel: +86 10 6298 8850                 Ian Rice
[email protected]                Tel: 020 7220 4879                       Mob: 07828 951 158
                                      [email protected]

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                                                                        

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