BEIJING, Aug. 12 /PRNewswire-Asia/ -- Yucheng Technologies Limited (Nasdaq: YTEC), a leading provider of IT Solutions to the banking industry in China, today announced unaudited financial results for the quarter ended June 30, 2009.
“In the second quarter, Yucheng continued to see the initial results of our strategic focus on Software & Solutions for the small to medium-sized bank (SMB) market. Software & Solutions grew by 63.4% in the first half of 2009 to total net revenues of USD 20.7M. SMBs during the first half accounted for 57.6% of total net revenue compared to 40.5% over the same period last year. This growth further validates our investment and efforts to develop the long-term value of our SMB customer base,” said Mr. Hong Weidong, CEO of Yucheng Technologies.
Second Quarter 2009 Financial Highlights
-- Fully diluted non-GAAP EPS was USD 0.16, as compared to USD 0.15 in the
second quarter of 2008.
-- Software & Solutions net revenue totaled USD 11.6M, a 42.0% increase
year-over-year.
-- Total net revenue grew 41.9% year-over-year to USD 15.1M.
-- Yucheng had USD 32.8M in cash, compared to USD 26.0M in the second
quarter of 2008.
-- POS reached cash flow breakeven in May 2009.
Business Outlook
Yucheng’s experienced strong growth in the Software & Solutions business during both the first and second quarters of 2009, which has been spread fairly evenly across Channel Solutions, Business Solutions and Management Solutions. Key growth drivers continue to be Yucheng’s leading e-banking, call center, loan management and business intelligence solutions. As Chinese banks transition to a more customer-centric business model, e-banking and call centers are particularly important to retain and develop clients. Loan management solutions enable banks to improve merit-based decision-making practices and better correlate borrower profiles with payment capabilities in order to capitalize on interest rate spreads while maintaining strong balance sheets. To further analyze performance, operational data and resource allocation, many banks are turning to business intelligence solutions as a key IT investment. To meet the growing demand for solutions, Yucheng’s implementation and software development staff grew by approximately 150 engineers in the first half of the year and our solutions staff growth is forecasted to expand at a similar rate for the remainder of the year, all while holding the back office staff steady.
In terms of client composition, while our revenue from the Top Four banks is forecasted to grow in absolute terms year over year, SMBs will be the main revenue growth driver. Yucheng expects that SMBs will comprise the majority of growth in the banking industry outsourced IT spending for the next several years, as they improve their strategic positions and seek domestic stock market listings. Having foreseen this trend, Yucheng has expanded its IT capabilities and strategically positioned itself as the total solutions provider for SMBs in China.
“Since joining Yucheng, I have worked extensively with the management team to analyze the underlying assumptions used to determine the annual guidance, completed a thorough pipeline analysis for the second half of the year and evaluated the strategic direction of every business unit. It is clear that Software & Solutions demand will be stronger than our initial estimates; however, it will not fully compensate for lower than forecasted Platform & Maintenance Services income, slower POS terminal growth and the increase in Yucheng’s effective tax rate. As our expectations for the year have changed materially, I am updating our non-GAAP net income target to USD 14.9M, which would translate into non-GAAP EPS of USD 0.80 and reiterating our original non-GAAP revenues of USD 69M to USD 72M,” said Mr. Steve Dai, CFO of Yucheng.
Second Quarter Financial Results
The table below is provided to give greater insight into our POS business, beyond what is available in our consolidated financial statements. The revenue and cost of revenue numbers on the following page are provided on a net presentation basis.
Summary of Selected Unaudited Financial Results for the Second Quarter of 2009
(Numbers are thousands, except shares outstanding, earnings per share and percentages)
Q2 2009
Total CORE POS
Amount % of Amount % of Amount % of
Revenues Revenues Revenues
Revenues 15,128 100.0% 14,153 100.0% 974 100.0%
Software &
Solutions 11,620 76.8% 11,620 82.1% -- --
POS 974 6.4% -- -- 974 100.0%
Platform &
Maintenance
Services 2,534 16.7% 2,534 17.9% -- --
Cost of Revenues 6,672 44.1% 6,205 43.8% 468 48.0%
Gross Profit 8,455 55.9% 7,949 56.2% 507 52.0%
Operating Expenses 6,289 41.6% 5,522 39.0% 767 78.7%
R&D 487 3.2% 487 3.4% -- --
SG&A 5,802 38.4% 5,035 35.6% 767 78.7%
Income from
Operations 2,167 14.3% 2,427 17.1% -260 -26.7%
Net Income (GAAP) 2,574 17.0% 2,774 19.6% -201 -20.6%
Amortization of
Intangible Assets 336 2.2% 336 2.4% -- --
Non-GAAP Net Income 2,910 19.2% 3,110 22.0% -201 -20.6%
Basic GAAP EPS 0.15 -- 0.16 -- -0.01 --
Diluted GAAP EPS 0.14 -- 0.15 -- -0.01 --
Basic Non-GAAP EPS 0.17 -- 0.18 -- -0.01 --
Diluted Non-GAAP EPS 0.16 -- 0.17 -- -0.01 --
Basic Weighted
Average
Common Shares
Outstanding 17,577,647 -- 17,577,647 -- 17,577,647 --
Diluted Weighted
Average
Common Shares
Outstanding 18,589,166 -- 18,589,166 -- 18,589,166 --
Q2 2008
Total CORE POS
Amount % of Amount % of Amount % of
Revenues Revenues Revenues
Revenues 10,658 100.0% 10,258 100.0% 400 100.0%
Software &
Solutions 8,182 76.8% 8,182 79.8% -- --
POS 400 3.8% -- -- 400 100.0%
Platform &
Maintenance
Services 2,076 19.5% 2,076 20.2% -- --
Cost of
Revenues 3,343 31.4% 3,099 30.2% 244 60.9%
Gross Profit 7,315 68.6% 7,159 69.8% 156 39.1%
Operating
Expenses 5,399 50.7% 4,632 45.2% 767 191.8%
R&D 438 4.1% 438 4.3% -- 0.0%
SG&A 4,961 46.5% 4,194 40.9% 767 191.8%
Income from 1,916 18.0% 2,527 24.6% -611 -152.7%
Operations
Net Income (GAAP) 2,359 22.1% 2,765 27.0% -406 -101.5%
Amortization of
Intangible
Assets 334 3.1% 334 3.3% -- --
Non-GAAP Net
Income 2,693 25.3% 3,099 30.2% -406 -101.5%
Basic GAAP EPS 0.13 -- 0.16 -- -0.02 --
Diluted GAAP EPS 0.13 -- 0.16 -- -0.02 --
Basic Non-GAAP EPS 0.15 -- 0.18 -- -0.02 --
Diluted
Non-GAAP EPS 0.15 -- 0.17 -- -0.02 --
Basic Weighted
Average Common
Shares
Outstanding 17,563,685 -- 17,563,685 -- 17,563,685 --
Diluted
Weighted
Average Common
Shares
Outstanding 17,792,010 -- 17,792,010 -- 17,792,010 --
CORE POS
Y-O-Y Y-O-Y
Change Change
Revenues 38.0% 143.5%
Software & Solutions 42.0% 0.0%
POS 0.0% 143.5%
Platform & Maintenance Services 22.1% 0.0%
Cost of Revenues 100.2% 91.9%
Gross Profit 11.0% 224.0%
Operating Expenses 19.2% 0.0%
R&D 11.0% 0.0%
SG&A 20.1% 0.0%
Income from Operations -4.0% 57.4%
Net Income (GAAP) 0.3% 50.6%
Amortization of Intangible 0.4% 0.0%
Assets
Non-GAAP Net Income 0.3% 50.6%
Basic GAAP EPS 0.3% 50.7%
Diluted GAAP EPS -4.0% 52.7%
Basic Non-GAAP EPS 0.3% 50.7%
Diluted Non-GAAP EPS -4.0% 52.7%
Basic Weighted Average Common Shares Outstanding 0.1% 0.1%
Diluted Weighted Average Common Shares Outstanding 4.5% 4.5%
Note: Due to rounding, the table above may have slight discrepancies. The
United States dollar amounts in the above table are calculated based
on an exchange rate of USD 1.00 = RMB 6.8591 for June 30, 2008 and
USD 1.00 = RMB 6.8319 for June 30, 2009.
Revenues: Yucheng’s revenues are comprised of three distinct categories. Software & Solutions includes all revenues created via software and software-related solutions. Platform & Maintenance Services is comprised of the procurement and resale of third-party hardware and software, as well as maintenance and support services. Finally, revenues generated via the POS business are listed under a separate category.
Yucheng reported consolidated net revenues of USD 15.1M for the second quarter 2009, an increase of 41.9% compared to the second quarter of 2008 and 32.1% from the previous quarter.
-- Software & Solutions: In the second quarter, Software & Solutions
registered USD 11.6M in net revenues, a 42.0% increase compared to the
second quarter of 2008, and a 27.5% increase compared to the first
quarter of 2009. Strong growth in our Software & Solutions business is
due to consistent wins across our solution lines and is expected to
continue through the second half of 2009. Software & Solutions
accounted for 76.8% of total net revenue.
-- Platform & Maintenance Services: Net revenues totaled USD 2.5M in the
second quarter or 16.7% of net revenue. Platform & Maintenance Services
net revenues increased by 22.1% year over year and 72.0% sequentially.
Platform & Maintenance Services continued to grow on a net revenue
basis this quarter; however, the Company intends to focus on its core
competencies in Software & Solutions.
-- POS: POS generated revenues of USD 1.0M in the second quarter,
representing 6.4% of net revenue. Our POS net revenues increased
143.5% compared to the second quarter of 2008 and 13.2% compared to the
first quarter of 2009.
Gross Profits: In the second quarter of 2009, Yucheng registered a gross profit of USD 8.5M, an increase of 15.6% compared to the second quarter of 2008 and an increase of 37.5% compared to the first quarter of 2009. Calculated on a net revenue basis gross margins for the second quarter were 55.9%, down from 68.6% in the second quarter of 2008 and up from 53.7% in the first quarter of 2009. The year over year decline in gross margins is mainly attributable to a decline in the underlying Platform & Maintenance Services gross margin and lower licensing fees.
Sales, General and Administrative Expenses (SG&A): Consolidated SG&A as a percentage of net revenue was 38.4% in the second quarter, as compared to 46.5% in the second quarter 2008 and 43.8% in the first quarter of 2009.
-- SG&A as a percentage of net revenue for the Core business was 35.6% as
compared to 40.9% in the second quarter of 2008 and 39.8% in the first
quarter of 2009, which reflected the management’s commitment to
maintain a stable-to-a reduced SG&A-to-net revenue ratio in 2009. In a
year over year comparison, the main cost drivers were increases in
salaries, benefits and leases.
-- POS SG&A declined year over year in absolute and percentage terms. In
the second quarter POS SG&A as percentage of net revenues was 78.7% as
compared to 191.8% in the second quarter of 2008 and 92.3% in the first
quarter of 2009. The decline is attributable to the stabilization of
costs while revenues increased. As a ratio to revenue, we expect that
POS SG&A will continue to decline throughout 2009.
Net Income: Yucheng recorded non-GAAP net income of USD 2.9M, an increase of 8.0% compared to the second quarter of 2008 and 132.6% compared to the first quarter of 2009. GAAP net income was USD 2.6M for the quarter, an increase of 9.1% compared to the second quarter of 2008 and 181.2% compared to the first quarter of 2009. Operating margins for the quarter were 14.3% compared to 18.0% in the second quarter of 2008 and 5.4% in the first quarter of 2009. The year over year decline in operating margins is attributable mainly to declining gross margins in Platform & Maintenance Services, while the quarter over quarter gains are attributable to revenue growth outpacing costs.
Earnings per Share: In the second quarter, Yucheng’s EPS for fully diluted shares on a consolidated basis were USD 0.16 (non-GAAP) and USD 0.14 (GAAP), compared to USD 0.15 (non-GAAP) and USD 0.13 (GAAP) in the second quarter of 2008. These figures include a USD 0.03 gain from the disposal of our Elegon business in the second quarter of 2009 and the USD 0.02 gain from the disposal of a manufacturing subsidiary in 2008. Without these one time gains, EPS would be flat year over year.
-- Core: Fully diluted EPS for the second quarter grew to USD 0.17 (non-
GAAP) and USD 0.15 (GAAP) compared to USD 0.17 (non-GAAP) and USD 0.16
(GAAP) in the second quarter of 2008.
-- POS: On both a GAAP and non-GAAP basis, the fully diluted EPS impact of
POS was a loss of USD 0.01 in the current quarter compared to a loss of
USD 0.02 in the second quarter of 2008.
Cash: Yucheng had USD 32.8M in cash compared to USD 26.0M in the second quarter of 2008 and USD 22.0M in the first quarter of 2009. The main contributors to the increase are positive cash from operations of USD 3.7M and an increase in short-term bank loans of USD 10.0M to cover working capital needs.
Accounts Receivable: In the second quarter, accounts receivable totaled USD 32.4M compared to USD 41.8M in the second quarter of 2008 and USD 38.3M in the first quarter of 2009. In the second quarter, the accounts receivable collection became a compensation criteria for sales managers, which improved the timeliness of collections. Second quarter DSOs totaled 210 days, compared to 131 days in the second quarter of 2008(1) and 251 days in the first quarter of 2009. DSOs are elevated primarily due to the lower gross revenue figures in the denominator.
(1) Previously, the DSOs for the second quarter of 2008 had been disclosed
as 144 days. The 13 day difference is due to the inclusion of amounts
due categorized under agency services.
POS: Yucheng’s POS business achieved cash flow breakeven in May 2009, ahead of management expectations, due to a concerted effort to increase the ROI per terminal. Net revenue in the second quarter totaled to USD 1.0M, an increase of 143.5% year over year and 13.2% quarter over quarter.
-- Terminal Deployment: Our POS installed base grew to 24,100 at the end
of the second quarter compared to 21,600 at the end of the first
quarter. The base is projected to grow to 28,000 terminals by year-end
as we continue to phase out the low performing terminals.
-- Average Monthly Gross Revenue per POS terminal (AMGRP): The AMGRP is
expected to show steady improvement as the merchant base quality and
average terminal deployment life increases. Our AMGRP across the
entire installed base grew to approximately USD 14, a 16% increase over
the USD 12, which we had recorded in each of the four previous quarters;
however, the second quarter spiked due mainly to a one time revenue
increase at certain merchants. A more normalized average for 2009 is
approximately USD 13.
Taxes: In the second quarter of 2009, Yucheng paid taxes of USD 0.1M as compared to receiving tax benefits of USD 0.2M in the second quarter of 2008 and USD 0.3M in the first quarter 2009. The change in Yucheng’s tax situation is due to a decline in tax credits derived from losses in our POS business and developments in our main operating entity’s tax status. As a high technology company, we are entitled to certain tax advantages including a 7.5% income tax rate for the next three years and a preferential 15% tax rate thereafter. With the inclusion of additional incentives and tax rebates, Yucheng is expected to pay taxes at an annualized rate of approximately 4.0% for fiscal year 2009 compared to a negative 13.9% for fiscal year 2008.
YUCHENG TECHNOLOGIES LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 2009 and March 31, 2009
2009.6.30 2009.3.31
USD USD
Assets
Current assets:
Cash and cash equivalent 32,797,932 22,020,835
Trade accounts receivable, net 32,401,146 38,306,442
Costs and estimated earnings in excess
of billings on uncompleted
contracts 15,385,414 12,050,772
Amounts due from related companies 649,596 87,619
Inventories 3,243,943 95,478
Pre-contract costs 1,507,676 1,725,962
Other current assets 8,588,954 5,722,467
Total current assets 94,574,661 80,009,575
Investments in and advances to
affiliates 630,196 427,462
Fixed assets 13,277,493 11,996,981
Less: Accumulated depreciation (3,857,632) (3,325,093)
Fixed assets, net 9,419,861 8,671,888
Intangible assets, net 5,099,010 5,000,043
Goodwill 27,665,744 27,630,150
Deferred income taxes - Non-current 2,669,282 2,309,514
Total assets 140,058,754 124,048,632
Liabilities and stockholders’ equity
Current liabilities:
Short term loan 18,814,678 8,777,191
Obligations under capital leases 414,002 414,146
Trade accounts payables 9,704,504 8,867,908
Billings in excess of costs and estimated
earnings on uncompleted contracts 1,042,701 998,637
Employee and payroll accruals 1,738,807 1,824,425
Dividends payable to ex-owners 808,180 807,708
Deemed distribution to ex-owners 6,584,618 6,584,618
Outstanding payment in relation to business
acquisitions 3,452,847 3,277,804
Income taxes payable 1,993,767 1,617,376
Other current liabilities 8,261,736 5,995,281
Deferred income taxes - Current 130,380 142,223
Total current liabilities 52,946,223 39,307,317
Obligations under capital leases 180,038 283,142
Deferred income taxes 387,639 418,184
Total liabilities 53,513,897 40,008,643
Stockholders’ equity
Preferred stock, $0.0001 par value,
authorized 2,000,000 shares and none
issued; Common stock, $0.0001 par value,
authorized 60,000,000 shares;
17,575,685 and 17,580,935 shares issued and
outstanding as of March 31,
2009 and June 30, 2009 2,928,515 2,926,801
Additional paid-in capital 50,860,802 50,798,645
Reserves 5,408,113 5,560,182
Retained earnings 26,326,255 23,738,459
Accumulated other comprehensive loss (454,088) (532,528)
Minority interests 1,475,257 1,548,430
Total stockholders’ equity 86,544,854 84,039,989
Liabilities and stockholders’ equity 140,058,754 124,048,632
YUCHENG TECHNOLOGIES LIMITED AND SUBSIDIARIES
Consolidated Statements of Income
Three months ended June 30, 2009 and June 30, 2008
2009 Q2 2008 Q2
USD USD
Revenues:
Software & Solutions 11,619,684 8,182,407
Platform & Maintenance
Services (net) 2,533,765 2,075,562
POS 974,262 400,070
Total revenues (non-GAAP) 15,127,711 10,658,040
Platform pass-through costs 43,221 14,336,110
Total revenues 15,170,932 24,994,150
Cost of revenues:
Cost of revenues (net) (6,672,408) (3,342,989)
Platform pass-through costs (43,221) (14,336,110)
Total cost of revenues (6,715,629) (17,679,099)
Gross profit 8,455,304 7,315,051
Operating expenses:
Research and development (486,571) (438,339)
Selling and marketing (1,775,175) (1,856,043)
General and administrative (4,027,008) (3,104,850)
Total operating expenses (6,288,754) (5,399,232)
Operating income 2,166,549 1,915,819
Other income (expenses):
Interest income 12,585 40,103
Interest expense (135,451) (118,892)
Investment gain (loss) 564,852 352,189
Other income (expense), net (11,649) (153,271)
Income before income tax and minority
interests 2,596,886 2,035,947
Income tax benefit (expense) (97,068) 173,304
Minority interests 74,080 149,653
Net income (GAAP) 2,573,898 2,358,905
Amortization for intangible assets 335,654 334,323
Net income (non-GAAP) 2,909,552 2,693,227
YUCHENG TECHNOLOGIES LIMITED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Three months ended June 30, 2009 and June 30, 2008
2009 Q2 2008 Q2
USD USD
Cash flows from operating activities:
Net income 2,573,898 2,358,905
Adjustments to reconcile net income to net
cash provided by (used in)
operating activities:
Depreciation 451,050 195,209
Amortization 525,583 565,005
Loss on disposal fixed assets 10,247 31,538
Loss (gain) on disposal of affiliates (410,572) (352,189)
Minority interests (74,080) (149,653)
Share of equity in affiliate company (78,075) --
Shares issued to independent directors 32,415 --
Decrease (increase) in trade accounts
receivable, net 5,927,723 (10,313,814)
Decrease (increase) in costs and estimated
earnings in excess of billing on
uncompleted contracts (3,327,586) (197,595)
Decrease (increase) in due from related
parties (561,926) 5,150,350
Decrease (increase) in inventories (3,148,409) (2,161,636)
Decrease (increase) in pre-contract costs 219,296 (1,221,703)
Decrease (increase) in other current
assets (2,218,787) 1,802,475
Decrease (increase) in deferred income
taxes assets - Current -- (349,292)
Decrease (increase) in deferred income
taxes assets - Non-current (358,416) (109,589)
Increase (decrease) in trade accounts
payable 831,404 8,646,935
Increase (decrease) in billings in excess
of costs and estimated earnings on
uncompleted contracts 43,480 398,433
Increase (decrease) in employee and
payroll accruals (86,686) (265,236)
Increase (decrease) in income taxes
payable 375,444 71,187
Increase (decrease) in other current
liabilities 3,003,748 254,813
Increase (decrease) in deferred income
taxes liabilities (42,715) 129,596
Net cash provided by (used in) operating
activities 3,687,036 4,483,739
Cash flows from investing activities:
Capital expenditures (1,901,342) (297,336)
Investments in subsidiaries and
affiliates (943,676) (174,950)
Proceeds from disposal of fixed assets 11,478 22,744
Proceeds from disposal of sharehold of
affiliates -- 680,980
Net cash provided by (used in)
investing activities (2,833,540) 231,437
Cash flows from financing activities:
Payment of capital leases (108,748) (35,167)
Contributions from minority interests -- 650,231
Proceeds from bank borrowings 10,032,348 5,831,669
Net cash provided by financing
activities 9,923,600 6,446,733
Net increase in cash and cash
equivalents 10,777,097 11,161,909
Cash at beginning of period 22,020,835 14,797,400
Cash at end of period 32,797,932 25,959,309
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Yucheng’s management has reported revenues, net income and earning per share on a non-GAAP basis. Each of the terms as used by Yucheng is defined as follows:
Non-GAAP revenue, or revenues recognized on a net basis, is revenue from the resale of third-party hardware and software recognized net of the associated cost of revenue.
Non-GAAP net income represents net income reported in accordance with GAAP, adjusted for amortization of intangible assets resulting from the accounting treatment of the acquisition of Beijing e-Channels Century Technology Co., Ltd.
Non-GAAP earnings per share represents non-GAAP net income divided by the number of shares used in computing basic and diluted earnings per share in accordance with GAAP.
Management of Yucheng believes that these non-GAAP revenue, net income and earnings per share measures are useful for understanding and assessing Yucheng’s underlying business performance and operating trends, and expects to report net income on a non-GAAP basis using a consistent method on a quarterly basis going forward. These non-GAAP financial measures also facilitate management’s internal comparisons to Yucheng’s historical performance and liquidity. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
Management of Yucheng notes that these measures may not be calculated on the same basis as similar measures used by other companies. Please find a reconciliation of non-GAAP figures to GAAP figures in the summary of financial information presented above.
Conference Call and Replay Information
Management will conduct a conference call to discuss the financial results for the three-month period ended June 30, 2009 on Wednesday, August 12, 2009 at 8:00AM EDT/ 8:00PM BJT.
To participate, please dial one of the local access numbers, listed below, ten minutes prior to the scheduled start of the call. The conference call identification number is 20568967.
US +1 866 242 1388
Canada +1 888 447 3085
China Netcom Users +86 10 800 640 0084
China Telecom Users +86 10 800 264 0084
All Other Participants +61 288 236 760
A recording of the call will be accessible within 48 hours via Yucheng’s website at http://www.yuchengtech.com/english/success.php?classid=41 .
About Yucheng Technologies Limited
Yucheng Technologies Limited (NASDAQ: YTEC) is a leading IT service provider to the Chinese financial service providers. Headquartered in Beijing, China, Yucheng services clients from its nationwide network in 23 cities and approximately 2,200 employees. Yucheng provides a comprehensive suite of IT solutions to Chinese Banks including: (i) Channel Solutions, such as e-banking and call centers; (ii) Business Solutions, such as core banking systems and loan management; and (iii) Management Solutions, such as risk analytics and business intelligence. Yucheng is also a leading third-party provider of POS Merchant Acquiring Services in partnership with banks in China.
Safe Harbor Statement
This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Forward-looking statements generally can be identified by the use of forward looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project" or "continue" or the negative thereof or other similar words. Such forward-looking statements, based upon the current beliefs and expectations of Yucheng’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: current dependence on the PRC banking industry demand for the products and services of Yucheng; competition from other service providers in the PRC and international consulting firms; the ability to update and expand product and service offerings; change in products and clients and the expansion into small to medium-sized bank market; retention and hiring of qualified employees; protection of intellectual property; creating and maintaining quality product offerings; operating a business in the PRC with its changing economic and regulatory environment; changing tax rate; and the other relevant risks detailed in Yucheng filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Yucheng assumes no obligation to update the information contained in this press release.
For Further Information
Rebecca Alexander
Investor Relations
Tel: +1-914-613-3648
+86-10-5913-7998
Email: ralexander@yuchengtech.com
