SOURCE: Pansoft Company Limited

December 08, 2010 08:00 ET

Pansoft Signs Two New Contracts With Sinopec to Expand Centralized Accounting Management System

JINAN, CHINA--(Marketwire - December 8, 2010) -  Pansoft Company Limited (NASDAQ: PSOF) ("Pansoft" or the "Company"), a leading ERP software service provider for the oil and gas industry in China, today announced that it has signed two new contracts with Sinopec Corp., with a total value of approximately $3.8 million. This follow-on project expands the scope of a project to develop a centralized accounting management system announced on July 21, 2010. The total value of the three contracts is $6.8 million.

Sinopec is one of China's leading petroleum companies and is headquartered in the Chaoyang district of Beijing. Its businesses include: oil and gas exploration, refining, and marketing; production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products; storage and pipeline transportation of crude oil and natural gas; import and export of crude oil, natural gas, refined oil products, petrochemicals, and other chemicals.

The original centralized accounting system has been designed to combine and integrate Sinopec's current multi-layer accounting subsystem and thousands of accounting centers into one unified system. The system aims to: standardize accounting standards and procedures, consolidate financial management processes, strengthen financial management and control, improve the access and analysis of quality financial information.

Under the first new contract, Pansoft will expand this accounting system to include Sinopec's parent company, Sinopec Group Corporation, and develop a platform to facilitate transactions between the subsidiaries and Sinopec Group and U.S.-listed Sinopec Corp. The contract covers the development process, as well as online testing, and is valued at approximately $2.17 million.

The second new contract, valued at approximately $1.63 million, aims to extend the centralized accounting system to Sinopec's subsidiaries. The project scope includes system testing and early stage implementation at four pilot subsidiaries, with future flexibility to include Sinopec's other subsidiaries.

"We are expanding the coverage of our value-added solutions in terms of both functionality and business operations within Sinopec," said Guoqiang Lin, Chief Executive Officer of Pansoft. "The further expansion of our cooperation with Sinopec indicates our solid partnership with one of the largest global oil and gas players and its confidence that Pansoft can handle mission-critical IT applications and strategy. At the same time, the adoption of our centralized accounting system by Sinopec underscores our leadership in large, customized accounting-system development and integration, which we intend to leverage and expand into other industries."

About China Petroleum & Chemical Corporation (Sinopec Corp.)

China Petroleum & Chemical Corporation (Sinopec Corp.) is a China-based energy and chemicals company. The Company and its subsidiaries engage in oil and gas and chemical operations in the People's Republic of China (PRC). Sinopec Corp's oil and gas operations include: exploration, development and production of crude oil and natural gas; transportation of crude oil and natural gas by pipeline; refinement of crude oil into finished petroleum products; and marketing crude oil, natural gas and refined petroleum products. Its chemical operations include the manufacture and marketing of a range of chemicals for industrial uses. Sinopec Corp. operates in four business segments: exploration and production, refining, marketing and distribution chemicals, and corporate and other. For more information, go to Sinopec Corp's website at http://english.sinopec.com/.

About Pansoft Company Limited

Pansoft is a leading enterprise resource planning ("ERP") software and professional services provider for the oil and gas industry in China. Its ERP software offers comprehensive solutions for various business operations including accounting, order processing, delivery, invoicing, inventory control, and customer relationship management. For more information, go to Pansoft's website at http://www.pansoft.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements concerning Pansoft Company Limited, which include but are not limited to, statements regarding Pansoft's ability to expand its service offerings and maintain leadership as a provider of ERP software and services for the oil and gas industry in China. The actual results may differ materially depending on a number of risk factors including but not limited to, the following: general economic and business conditions, development, shipment and market acceptance of products, additional competition from existing and new competitors, changes in technology or product techniques, the Company's ability to successfully integrate acquisitions, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. Pansoft Company Limited undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

Contact Information

  • Company Contact:
    Pansoft Company Limited
    Allen Zhang
    Chief Financial Officer
    Phone: +86-531-8887-1159
    E-mail: allen.zhang@pansoft.com

    Investor Contact:
    CCG Investor Relations
    Mr. John Harmon, CFA
    Sr. Account Manager
    Phone: +86-10-6561-6886 Ext. 807 (Beijing)
    E-mail: john.harmon@ccgir.com

    Mr. Bryan Blake
    Market Intelligence Executive
    Phone: +1-646-833-3416 (New York)
    E-mail: bryan.blake@ccgir.com