SINOSOFT Technology is a company about which I have commented in the past. I rather wish that I hadn't.
Sinosoft is the UK holding concern of Singapore-based Infotech. The business develops and sells software and provides software services and systems integration. Its operations are tailored to meet the unique demands of certain Chinese regional and national government agencies.
Both its subsidiaries operate in China's Jiangsu province. Key products include export tax software enabling documents to be completed and filled electronically, e-government software and information integration software.
For some time Sinosoft promised much while delivering little, but there are now real signs of progress.
After a couple of years of contract cancellations and deferrals, the company has announced it has won four tenders for its e-government services, awarded by government agencies in the Jiangsu province, which will see Sinosoft's technology being introduced into Taizhou and Nantong cities. Its IT systems will help standardise procedures in a multitude of local government departments.
This is not only, in effect, an official endorsement of the quality of Sinosoft's technology, it also opens up the opportunity of rolling out its business to districts in the remaining 11 cities in the Jiangsu province, which could provide a platform for expanding into other regional agencies across China.
Sinosoft's share price chart is a dismal affair, showing a near uninterrupted decline since its peak of 36p in early 2006. However, this could hold the prospect of better times.
The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.