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GEONG is recognized as a leading independent Internet software solutions provider and operator for large enterprises in China. We are concentrating our efforts to become a dominant social business solution provider for enterprises in China by 2016, utilising Cloud computing technologies.

With headquarters in Beijing, China, GEONG International Ltd. ("GEONG" or "the Company") has been admitted to trading on the AIM market of the London Stock Exchange (LSE AIM: GNG) since June 2006. The Company has since transformed from an ECM (Enterprise Content Management) software and services centric business to become an Internet business solution centric company.

GEONG, has 410 employees and is managed by an international management and professional team who collectively own 26% of the business. The Company's mission is to help its clients improve their business efficiency and customer satisfaction through GEONG's Smart Internet Platform solutions.

● Vision: 

To become the largest enterprises' social business solution provider utilizing cloud computing technologies in China by 2016

● Mission: 

To help maximise clients' online business value by business by utilising a Smart Internet Platform

GEONG's Products and Solutions

GEONG's revenue is generated through two business offerings: IaaS and SaaS. Over the years, we have built a customer base of over 200 IaaS clients and 18 SaaS clients. Our goal is to further broaden our SaaS solution offerings - Social Business, which is comprised of Social Marketing, Social Commerce and Social CXM (Customer Experience Management).

IaaS (Information as a Service) - GEONG Smart Internet Solution

 The IaaS solution has been our traditional business, named Smart Internet Solution, which contributes 80% of our revenue at a margin of about 45% - 50%. The IaaS business is normally a project based business by contract which includes:

● Consulting services - We provide online business, digital marketing and IT strategy consulting to clients.

● Software and business solutions - GEONG, GEONG-IBM and GEONG-Oracle Smart Internet Platform. We focus on building and delivering Smart Internet Platform for online business and industry specific solutions.

● Implementation and deployment - software application customisation and deployment services. Our offerings include business analysis, customisation and systems integration.

● Application Management Service (AMS) - product, application and system maintenance. We provide operational and maintenance services along with product support, system migration and monitoring.

The revenue stream of an IaaS project contract has 3 key elements:

The Product element is essentially the Smart Internet Platform on which application solutions will be built and maintained. It generates approximately 25% of the contract revenue.

The Service element encompasses Consulting and Customisation. It generates approximately 65% of the contract revenue.

The Application Management Service is a cluster of services including system maintenance, product support, system migration, etc. System maintenance normally contributes the remaining 10% of the contract revenue. Other services will contribute approximately 5-10% additional revenue. Our IaaS client base contributes a steady increase in maintenance service revenue.

We offer end-to-end services and solutions around Internet business applications. GEONG IaaS business solutions are unique in the way that we integrate local best practices to global smart Internet platform technologies. We are expert in helping our clients develop their social networking and mobile Internet applications, and to improve their users' experience on the Internet.

SaaS (Software/Solution as a Service) - GEONG Social Business

GEONG Social Business has been the new revenue element of our business in the past 2 years. It contributed 20% of our revenues, generated a higher margin of 50% - 60%, and has shown a better cash conversion ratio than the IaaS business.

The revenue stream of the SaaS business has 3 key elements:

The Subscription Fee element is the platform solution being offered. It generates 20% of the SaaS contract revenue.

The Annual Operation Fee generates 65% of the contract revenue.

The Performance Fee is highly dependent on the contract performance results delivered. It contributes 15% of the remaining contract revenue.

GEONG's SaaS solution is named GEONG Social Business. We design, develop and implement web sites for clients, through which they build their online businesses in order to increase market coverage and services to their customers and potential customers. It has 5 broad applications.

Socialytics: It establishes a Listening Platform to monitor the public social media. The purpose is to analyze the voice of audience and competitors.

Social Marketing: It utilises Social API Labs to optimise the ROI of social marketing. The purpose is to reduce thecost of recruiting community users.

Social CRM: It leverages different social CRM applications and functions, such as blog, micro-blogging and BBS. The purpose is to convert more community users into customers.

Social Commerce: It establishes a social trading platform. The purpose is to increase trading volume.

Social CXM: It sets up a multiple-channel customer feedback and responding system. The purpose is to improve customer satisfaction level of social business.

GEONG Smart Internet Platform 

GEONG Smart Internet Platform is an extension of our PortalAge ECM products. It is based on worldwide leading technology platforms of IBM and Oracle, and we add on the best local practices. The integrated platform can be utilised by clients to establish large scale and full-function online businesses. The platform integrates various technologies from IBM and Oracle:

- Portal SOA functions

- Workflow

- Workplace

- Social Networking Service (SNS)

- Transaction platform

- Enterprise search engine

And from GEONG:

- GEONG Content Management System (GEONG CMS)

- GEONG Platform Application Integration (GEONG PAI)

- GEONG Social Business

GEONG sees a great potential in the Chinese Internet market in the long term. Chinese customers have definite needs for online businesses and to improve customer services, which implies they have to better manage and analyze their internal data in order to satisfy the growing need of regulatory compliance. The Smart Internet Platform will help organisations face increasing global competition. It has become a necessity to allow them to make better and faster strategic and financial decisions.

GEONG's offerings are developed on our Smart Internet Platform. Our on-going effort is to tailor them for various industry specific solutions. Over the past years, our solution library has been enriched to meet the growing and diversified customer base. All of our products and solutions in China have GEONG's IP rights and thus they can be licensed and offered as SaaS (Software as a Service) business to clients.

Our first SaaS solution was launched in December 2008 based on a matured IaaS solution package. The SaaS business model has a better recurring revenue and cash flow as compared to the project based IaaS business. As our SaaS model further takes hold and grows, we will be more financially balanced with a steady and sustainable increase in recurring revenue and improvement in cash flow.

Partnership Strategy 

GEONG has established strategic partnerships with two of the world's leading software infrastructure vendors, IBM and Oracle. Our collaboration with them has grown over the years. The partnership allows us to participate in large or international contracts which we may not have won on our own. Together, we have built strong and long-term relationship with our clients.

We are one of the five Core Service Suppliers of IBM China and one of their top 20 Independent Software Vendors (ISV). With Oracle China, we are one of their strategic partners for delivering Oracle Fusion Middleware. Working as a team, we are able to deliver the latest Internet solutions to over 200 clients in China and extending to Southeast Asia.

At the high end of the online solution market, we have partnership agreements with IBM GBS (Global Business Service) and GTS (Global Technical Service), Oracle and Microsoft Professional Service. These partnerships allow GEONG to be an integral participant in multimillion dollar projects in which we supply our own unique local products and services.

Client Strategy: Go Deep and Broad 

"Go Deep and Broad" has proven to be a successful sales strategy over the past years. We have classified our growth potential clients as Bronze, Sliver, Gold and Diamond. Cultivating Bronze clients (RMB1.5 million per annum) has been a key sales objective and indeed, we added 20 new Bronze clients in the year. As we foresee that their business demands and complexities increase, they will move on to Silver (RMB3 million per annum), to Gold (RMB6 million per annum) and eventually on to Diamond (RMB10 million per annum) over the years. This has proven to be very successful and we have had no loss of major clients in the past eleven years.

In our early years, the "Go Deep and Broad" strategy was driven by IaaS business which was dependent on the IT budget of our clients which typically grew at an annual rate of 20% to 30%. Recently, it has been driven by the Internet application business trends and usage growth. SaaS business is very much dependent on the growth of our clients' online requirements which are expected to grow at a much faster annual rate of 50% to 70%.

Go Deep 

- Industry: From blue chip large clients to 2nd tier players

- Client: From IaaS solution to SaaS solution

Go Broad 

- Geography: From China to Asia Pacific together with IBM and Oracle

- Industry: From core markets to new industries partner with IBM and Oracle

- Client: Extending to new business units

The Group's client base has over 200 blue chip clients in China, mainly in our targeted sectors including financial services, telecom, manufacturing and automotive.

- In the financial services sector, our clients include the top five banks, seven of the top 13 second tier banks, and 20 top tier city and commercial banks, 12 of the top 20 securities firms, five of the top 10 asset management companies, eight insurance companies including the top five, and the five major exchanges and the clearing centres.

- In the automotive sector, we serve 12 major car manufacturers operating in China, including five of the top 10 manufactures, namely Shanghai General Motors, Shanghai Volkswagen, FAW Volkswagen, Beijing Hyundai and Dongfeng Nissan.

- In the manufacturing sector, we serve over 16 top ranked Chinese and/or MNC firms operating in China, including Haier Group, Lenovo, BOE, Dell, EMC, Panasonic and Emerson.

- In the telecom sector, we serve all of the three telecom operators in China, namely China Mobile, China Telecom and China Unicom, and the major mobile device and solution providers, including Huawei, Nokia, Lenovo, Moto and Sony-Ericsson.

New Targeted Industry Sectors

The Company has established a strong leadership position in the Chinese finance sector and also in telecom, automotive and manufacturing sectors. We have, over the last 12 months, extended our SaaS business to energy, digital technology and transportation sectors. We also serve some of the large international banks. Our future growth strategy is to offer our expertise to second tier banks and insurance conglomerates by leveraging our established brand name and our proven solutions. For example, in the banking industry, there are more than 190 commercial and city banks as our potential clients in the coming years. China is a big market which we will continue to focus on.

Partner Strategy

Our long standing and continued partnership with IBM has been very successful for both parties. We see the partnership being further strengthened as we have been chosen by IBM as one of their few favoured suppliers again.

The partnership with Oracle began in 2007. We doubled our business in 2008 and 2009. In 2010, and we successfully expanded our partnership to the Asia Pacific region.

We have a segmented market partnership strategy to avoid conflict and competition amongst partners.

Cloud Computing

GEONG's Social Business Solution was launched in July 2011. The objective is to enhance our ability and to expand our capacity in providing mobile Internet applications and operation services in the Greater China region. Our goal is to become the largest enterprise social business solution provider utilising Cloud computing technologies in China by 2016.

GEONG believes that social networking operation on Cloud computing has great business potential and has plans in place to develop five social networking applications on Cloud computing. This will create a high barrier to entering for competitors.

Business Strategy and Growth Outlook in China

The technological landscape in China is developing rapidly and we look forward to participating in that changing environment with confidence. The Group, with £5.3 million of cash on its balance sheet, is adequately funded for future growth and development.

The traditional IaaS solution is a good means to win new clients. SaaS solution is a follow-on business which will secure long-term contracts with quarterly or monthly fees, predominantly based on usage. GEONG is confident that the new business model will deliver a steady revenue stream with increased cash conversion.

GEONG's strategy is to maintain its market leading position in the delivery and in providing operational service of online business solutions for large enterprises in China.

GEONG Smart Platform will keep pace with IBM and Oracle's middleware technologies development to ensure that we can offer the most modern and innovative industrial solutions for our clients. GEONG's growth is tied to our clients' online business growth, which, in turn, is driven by the rapid expansion of social networking and mobile Internet applications in China. The burgeoning world of social media has created yet another vast data mine for companies. Currently there are over 216 million social networking users in China and this is forecasted to double by 2013. Mobile Internet users will increase from the current figure of over 400 million to 600 million by end of 2012.

Social Business will become a must-have business application for large enterprises over the next 3 years. eBusiness will become one of their core competencies for traditional businesses to grow and to maintain competitive. Innovative and constantly evolving online offerings which enhance user or customer online experience is driving the rising Chinese digital economy. Large enterprises are looking for operational partners to help design, build, operate and manage their social business systems. GEONG solutions are to maximise the business value of enterprise's online business by utilising smart Internet platform technologies.

Henry Tse -Chairman, A well-known Management Expert

Mr. Tse has worked for IBM and Compaq Computer for 30 years in various positions including: IT & Executive Director for IBM Hong Kong, Marketing Director for IBM Asia-Pacific, General Manager for IBM Personal Computer Company in the Greater China Group and the President of Compaq Computer in Greater China Group.

Mr. Tse joined GEONG International as the President and Chief Executive Officer in October 2000, and was appointed as the Chairman of Board subsequently. Mr. Tse invented the PBO system and PDCA-F efficient execution management concept. In 2006, Mr. Tse was invited as one of the first visiting professors of "653" Project, the National professional technology and knowledge upgrading project in the modern management field.

       
Weidong Wang -Chief Executive Officer, Master's Degree from Tsinghua University 

One of the founders for GEONG International, Mr. Wang worked for People's Bank of China Banknote Printing and Minting Corporation, was also the founder for Mandarin International Software Ltd and Advanced Business Solutions Ltd. In September 2000, he successfully obtained venture capital from Shanghai NewMargin Ventures Co. Ltd, and created GEONG.

Being an entrepreneur himself, Weidong Wang has plentiful of experiences regarding enterprise management. He brought fast development to GEONG and made GEONG the leading Enterprise Content Management company in China. In June 2006, GEONG was successfully listed on London Stock Exchange, becoming the first Chinese company to be listed on foreign stock exchange that supplies enterprise content management (ECM).

   
Minren Guan -Chief Technology Officer and General Manager of Shanghai Branch, Master's Degree from Shanghai Jiao Tong University

Minren Guan was the commissioner for IBM financial solution division, responsible for IBM China's channel integration solutions towards e-banking system for financial institutions and the pre-sale technical advice & planning for financial institutes' e-banking systems. He joined GEONG in September 2000 and is responsible for GEONG's technical support, research and development, project managing and the overall operation for Shanghai Branch.

David Tsui - Chief Financial Officer, a Chartered Accountant from Australia, Master's Degree in Economics at Macquarie University at Sydney

David, age 52, is a Chartered Accountant from Australia. He gained his masters degree in Economics at Macquarie University at Sydney in 1988 and qualified as chartered accountant in 1989 having gained his professional firm audit and tax consulting experiences in Australia. David returned to Hong Kong in 1992 and joined the FMCG operations of Inchcape plc in particular handling the finance function of the Timberland and K Swiss brands. In 1995, David was assigned by Inchcape to establish the finance function for FMCG operation in Vietnam, Cambodia and Laos and was then promoted to the Asia Pacific regional role team at controllership level reporting to the regional directors to oversee all FMCG units in the SE Asia region. David went on to hold a number of key executive posts for Inchcape subsidiaries in Hong Kong, including Executive directorships at Inchcape Motors Ltd, Branded Lifestyle Ltd, and Director position of the joint venture with Mitsubishi Motors in Shanghai. David was also the China country CFO for Inchcape from 2000 to 2002. Prior to joining the Group in January 2011, David worked as the Group Finance Director with Petrocom Energy (HK) Limited at Shanghai and also the CFO/Finance Director of two Chinese companies listed on AIM: Asia Ceramics Holdings Plc and China Eastsea Business Software Limited.

Jinsong Zhu -Senior Vice-President, Master's Degree from Tsinghua University

Mr. Zhu worked in the Commodity Circulation Department of IBM China, and joined Beijing Wenhan Software Technology Company (former company for GEONG) in 1999. Jinsong Zhu has a strong technical background and experience in product research and development. He is currently responsible for GEONG's solution products and research and development projects.

       
Emily Miu -Senior Vice-President

Emily Miu worked in IBM for 19 years and has gained valuable experience on sales and marketing management while being the Customer Representative, Sales Manager and Channel Manager in IBM.

She joined GEONG in November 2001 as Senior Vice-President, responsible for sales and marketing in Mainland China region, and provided advisory services to large enterprises like Huawei-3com, China Merchants Securities, Guangfa Securities, Sybase, and Lenovo etc.

Information taken from Comany website 10.05.2013