Chinese financial services software company Ninetowns Internet Technology Group Company Limited has reported its financial results for the six-month period and full year ended December 31, 2008.
For the last two quarters of 2008, Ninetowns' total net revenues were CNY56.0 million, representing a 3% decrease year-on-year, and the company's net loss was CNY140.9 million, representing a 33% decrease as compared to a net loss of CNY211.4 million for the second half of 2007.
For the full year of 2008, the company's total net revenues were CNY107.0 million, representing a 3% increase, as compared to CNY103.5 million for the fiscal year of 2007. But the company recorded a net loss of CNY169.6 million, representing a 26% decrease as compared to net loss of CNY230.5 million for the fiscal year of 2007.
Shuang Wang, CEO of Ninetowns, stated, "Despite the challenging global economic conditions, we have continued executing our strategic priorities. First, we continue to retain our core business-to-government client base and are extending our B2G services to new users through our versatile pricing structures as well as enhanced product features and services. As a result of our efforts, we were able to stabilize our service retention rate at close to 30%, increase the penetration of our paid services to free software users, as well as stabilize our overall revenue stream in 2008."
Cash, cash equivalents and term deposits amounted to CNY604.6 million as of December 31, 2008, compared to CNY675.9 million as of December 31, 2007. The decrease was mainly due to the investment in operating activities, purchases of investment securities and the acquisition of certain land use rights.
