UFIDA Software Spins Off Mobile Unit
Sina Tech, 3/05/08
UFIDA Software (600588.SH) has announced that owing to the current losses and predicted future losses of UFIDA Mobile, UFIDA Software has decided to spin off the mobile unit. UFIDA Mobile, with registered capital of RMB 10 mln, will be transferred to UFIDA's fourth-largest stockholder, Beijing UFIDA Enterprise Management Research Institute, Co.
In its 2007 report, issued today, UFIDA Software reported operating revenues of RMB 1.36 bln for 2007, up 21.85% from the previous year, with profits of RMB 360 mln, a YoY increase of 109.9%. UFIDA Mobile currently has approximately RMB 27.5 mln in assets; with debts of RMB 19.5 mln, the company has net assets of just over RMB 8 mln. Operating revenues for 2007 were approximately RMB 4.15 mln, with profit losses of RMB 1.96 mln.
Industry sources believe that the sale is motivated by a desire to keep the unprofitable UFIDA Mobile from affecting the listed company's performance. UFIDA Software CEO Wang Wenjing submitted a proposal at the recently begun Chinese People's Political Consultative Conference (CPPCC) calling for greater government support of mobile software developers.
Keywords: fiscal report Q4 2007 UFIDA Mobile UFIDA Enterprise Management Research Institute Wang Wenjing wireless 2007 600588.SH CPPCC software UFIDA
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