CDC Software Corporation (NASDAQ: CDCS), a hybrid enterprise
software provider of on-premise and cloud deployments, today
announced it has added Beijing Hinge Xin Yuan Software Co., Ltd. as
the latest franchise partner that it expects will help expand its
CDC Platinum HRM solutions into the large state-owned enterprise
(SOE) market in China. Beijing Hinge Xin Yuan Software is the
subsidiary of Shanghai-based Hinge Software focusing on HRM market
segment in China.
As part of this franchise partnership, CDC Software initially
plans to invest a 19 percent stake in Beijing Hinge Xin Yuan
Software with an option to acquire up to a 51 percent controlling
interest in the future. Beijing Hinge Xin Yuan Software will be the
latest addition to CDC Software’s Franchise Partner Program and the
second franchise partner in China. Formed in 2006, CDC Software’s
Franchise Partner Program helps CDC Software establish strategic
relationships with partners in selected geographies, with a focus
on emerging markets, through majority control, as well as minority
investments. CDC Software currently has franchise partners located
in India, China, South America, Spain and Mexico.
As part of this partnership, Beijing Hinge Xin Yuan Software is
expected to resell CDC Platinum HRM solutions to SOE customers in
China. According to CCW Research, a leading IT market research
company in China, the China e-HR market for software solutions in
2009 was reportedly a $141 million market which is expected to
rapidly increase in 2010. As part of reselling CDC Platinum HRM,
Beijing Hinge Xin Yuan Software is also expected to leverage CDC
Software’s extensive services and support infrastructure in China.
Some of Hinge Software’s more than 100 customers include Air China,
Dalian Port Company, Angang Steel Company, Sinopec, and many
others. In turn, CDC Software plans to resell certain Hinge
Software e-HR functionality, including its reporting and
e-Performance applications, to its more than 1,000 customers that
include multi-national companies (MNC) representing some of the
world’s leading global brands. CDC Platinum HRM customers include
Pfizer, Bertelsmann, SODEXO, Philips Electronics (Beijing),
Mitsubishi Chemical, Beijing SE PUTIAN Mobile Communications Co.,
Ltd (BMC) a Sony Ericsson investment, Omni Industries, China Life
Insurance, Merial Animal Health and many other leading brands.
“We are excited about CDC Software’s planned investment in
Beijing Hinge Xin Yuan Software,” said Ricky Lei CEO of Hinge
Software. “CDC Software’s Franchise Partner Program investments and
acquisitions have performed well under support from CDC Software
through leveraging of the company’s global business and technology
infrastructure. Together, we hope our combined solutions will
become a market-leading HRM solution for both the MNC and SOE
markets in China.”
“We are very pleased to invest in Beijing Hinge Xin Yuan
Software which has an excellent reputation and proven track record
of successful implementations thanks to the outstanding leadership
from Ricky,” said Edmund Lau, vice president, Greater China for CDC
Software. “We believe the SOE market holds significant growth
potential for CDC Platinum solutions and will help accelerate CDC
Software’s organic growth in China. We believe this partnership
positions us strongly as one of the leading enterprise software
companies offering a HRM solution for both the MNC and SOE markets.
We are also offering a HRM solution that directly addresses the
complex business and regulatory requirements in China without
costly customization that is frequently required for other
enterprise software solutions offered in this country. This
partnership also helps further advance our strategy to increase
sales in China so it makes up a more significant portion of our
revenue in the near future.”
The strategic investment in Beijing Hinge Xin Yuan Software and
the formation of the strategic relationship are subject to, among
other things, the completion of due diligence and the negotiation
and execution of definitive documentation.
About Hinge Software
Founded in 2003, Shanghai-based Hinge Software Co., Ltd. offers
business information infrastructure software and services including
its e-HR product line. Its solutions enable companies to measure
and improve corporate performance with insight into the market and
the organization. The company serves enterprise customers in
various industry sectors, including banking, manufacturing, energy,
transportation, and government.
http://www.hingesoftware.com/, which is not part of this
press release.
About CDC Platinum HRM
CDC Platinum HRM is a leading human capital management (HCM)
solution specifically designed to meet the business and regulatory
requirements of mainland China and Hong Kong. The Human Resources
and Payroll applications are used by more than 1,000 companies,
including multinationals, small- and medium-sized domestic
companies, and state-owned enterprises. The solution provides
employee information management, compensation and benefits
processing and analysis, time and attendance tracking management,
employee self-service, leave management, recruitment training and
development, employee performance review and analysis, company
assets management, employee succession planning, budgeting and
organization charting, etc. With CDC Platinum HRM, companies are
able to streamline their human resource management processes and
improve their employee satisfaction levels.
www.platinumchina.com
About CDC Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
hybrid enterprise software provider of on-premise and cloud
deployments. Leveraging a service-oriented architecture (SOA), CDC
Software offers multiple delivery options for their solutions
including on-premise, hosted, cloud-based Software as a Service
(SaaS) or blended-hybrid deployment offerings. CDC Software’s
solutions include enterprise resource planning (ERP), manufacturing
operations management, enterprise manufacturing intelligence,
supply chain management (demand management, order management and
warehouse and transportation management), e-Commerce, human capital
management, customer relationship management (CRM), complaint
management and aged care solutions.
CDC Software’s recent acquisitions are part of its “acquire,
integrate, innovate and grow” strategy. Fueling the success of this
strategy is the company’s global scalable business and
technology infrastructure featuring multiple complementary
applications and services, domain expertise in vertical markets,
cost effective product engineering centers in India and China, a
highly collaborative and fast product development process utilizing
Agile methodologies, and a worldwide network of direct sales and
channel operations. This strategy has helped CDC Software deliver
innovative and industry-specific solutions to more than 6,000
customers worldwide within the manufacturing, distribution,
transportation, retail, government, real estate, financial
services, health care, and not-for-profit industries. For more
information, please visit www.cdcsoftware.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, including statements relating to our
expectations for completing this investment in Hinge Software and
the terms thereof, if at all, our expectations regarding the
potential benefits of acquiring Hinge Software, our expectations
regarding our continued expansion in the China region and other
countries, our beliefs about the competitive and market position of
Hinge Software, the China market in general, our penetration
thereof, and growth opportunities in that area, our beliefs
regarding Hinge Software’s enterprise technology, our beliefs
regarding the China enterprise market, our expectations regarding
our ability to attain future expansion and success with customers
of Hinge Software, our beliefs regarding the timing and
availability for any products developed or to be sold, our beliefs
regarding Hinge Software’s and other Franchise Partners’ financial
and operational performance post-investment, our beliefs regarding
Hinge’s reselling efforts for our products, and other statements
that are not historical fact, the achievement of which involve
risks, uncertainties or assumptions. These statements are based on
management's current expectations and are subject to risks and
uncertainties and changes in circumstances. There are important
factors that could cause actual results to differ materially from
those anticipated in the forward looking statements including,
among others: the conditions of the enterprise software market in
China, the ability of CDC Software and Hinge products to address
the business requirements of the market, demand for and market
acceptance of Hinge technology, as well as: (a) the ability to
realize strategic objectives by taking advantage of market
opportunities in China; (b) the ability to make changes in business
strategy, development plans and product offerings to respond to the
needs of current, new and potential customers, suppliers and
strategic partners; (c) the effects of restructurings and
rationalization of operations in our companies; (d) the ability to
address technological changes and developments including the
development and enhancement of products; (e) the ability to develop
and market successful products and services; (f) the entry of new
competitors and their technological advances; (g) the need to
develop, integrate and deploy enterprise software applications to
meet customer's requirements; and (h) the possibility of
development or deployment difficulties or delays; If any such risks
or uncertainties materialize or if any of the assumptions proves
incorrect, our results could differ materially from the results
expressed or implied by the forward-looking statements we make.
Also, the results and benefits experienced by customers and users
set forth in this press release may differ from those of other
users and customers. Further information on risks or other factors
that could cause results to differ is detailed in our filings or
submissions with the United States Securities and Exchange
Commission, and those of our ultimate parent company, CDC
Corporation, located at www.sec.gov. All forward-looking statements
included in this press release are based upon information available
to management as of the date of the press release, and you are
cautioned not to place undue reliance on any forward looking
statements which speak only as of the date of this press release.
The company assumes no obligation to update or alter the forward
looking statements whether as a result of new information, future
events or otherwise. Historical results are not indicative of
future performance.
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