Ninetowns Posts Net Revenue Drop On Chinese Software Business

Chinese sourcing and procurement software firm Ninetowns Internet Technology Group Company Limited today finally reported its financial results for the six-month period and full year ended December 31, 2009.

Total net revenues for the second half of 2009 were CNY51.1 million, representing a 7% decrease, as compared to CNY54.7 million for the second half of 2008. Meanwhile, total net revenues for the full year 2009 were CNY93.8 million, representing a 10% decrease, as compared to CNY104.5 million for 2008.

Net revenues from sales of enterprise software for the second half of 2009 was CNY27.1 million, representing 53% of total net revenues, as compared to 83% for the second half of 2008. Net revenues from software development services was CNY10.9 million for the second half of 2009, representing 21% of total net revenues, as compared to 17% for the second half of 2008. Net revenues from the e-grocery business was CNY13.1 million for the second half of 2009, representing 26% of total net revenues, as compared to nil for the second half of 2008. Of the CNY13.1 million, approximately CNY9.8 million was from meal-box preparation and delivery services for institutional clients in Shanghai.

Gross profit for the second half of 2009 was CNY31.1 million for the second half of 2009, representing a decrease of 39% as compared to CNY51.2 million for the second half of 2008. As a result of all the company's factors, operating loss for the second half of 2009 was CNY40.8 million, compared to an operating loss of CNY15.5 million for the second half of 2008.

For the second half of 2009, net income was a pitiful CNY48,287, as compared to a net loss of CNY140.9 million for the second half of 2008.

Operating loss for the full year 2009 was CNY58.7 million, compared to an operating loss of CNY40.0 million for the full year 2008. For the full year 2009, net income was again a pitiful CNY3.0 million, compared to net loss of CNY169.6 million for the full year 2008.

You May Also Like

Leave a Reply

Your email address will not be published.