Comopany Study of UFIDA Software

China's management software market is stepping into maturity gradually. It is forecast that China's management software market is expected to maintain a compound annual growth rate of 19% for the next five years. SOA framework will become the mainstream and SaaS mode will continue its fast development. The integration of management software, business intelligence (BI), e-Business and mobile commerce will be consolidated continuously.

The management software of UFIDA Software Co., Ltd. or UFIDA Software, ranks the top not only in the management software market, but also in ERP software market and financial software market. Its market share has risen gradually in the past few years.

In 2007, the operating revenue of UFIDA totaled CNY1.36 billion, up 21.5% year on year. The net profit of the parent company reached CNY360 million, 2.1 times the figure in the previous year. The more than doubling rise in net profit was largely attributed to the contribution of earnings variability of fair value, the investment returns and the non-recurring profit and loss. Even though this part is weeded out, the net profit of the company still increased by 65.8% in 2007.

UFIDA will roll out a series of new products, including U9, in 2008. Based on SOA framework, U9 can support multi-factory discrete manufacturing and decision making of an inter-operational system, which is expected to help the company enlarge the market share of its medium-end products.

In Jan. 2008, UFIDA purchased part of the assets Shanghai Tiannuo Co., Ltd. and Shanghai Tanwang Co., Ltd. for CNY14.5 million, both of which are software companies specialized in real estate industry. This acquisition enables UFIDA Software to provide the full business solutions and products for the real estate industry in Shanghai, China's financial hub. UFIDA plans to set up a real estate software R&D center in the city. It has already accumulated substantial cash for the continuous mergers and acquisitions of software companies in the future.

UFIDA launched mobile commerce business officially in 2007 (including enterprise mobile management platform and mobile e-Business platform), which develops well and is expected to make profits starting from 2009.