Neusoft accelerated innovation and transformation of its business model to promote sustainable development, and achieved approximately 7 billion yuan revenue and maintained steady growth in 2012.

 (Shenyang, China, March 31st, 2013) Neusoft Corporation (“Neusoft”, SSE: 600718) releases its Annual Report 2012 today, and announced that Neusoft gained a revenue of RMB 6.96 billion Yuan, with the year-on-year growth of 21.02%, and net profit（attributable to shareholders of listed companies）of RMB 456 million Yuan, increased by 9.41% over the previous year. According to the annual report, despite of many uncertainties in the current market and the slowing-down growth of the software and information service industry, Neusoft has maintained steady growth through the innovation and transformation of its business model to promote sustainable development.

During the reporting period, Neusoft has strengthened its competitiveness and position in various existing industries and businesses in China, seeing a high-speed growth in many industries, including government, medical IT, energy, and finance, etc. Also, the Company has enhanced the exploration of new market opportunities in the fields of mobile internet, urban commercial banks, intelligent transportation, media and other emerging businesses. Neusoft has actively integrating comprehensive strength of the company in the areas of government and enterprise informatization, telecommunications, transportation, and medical healthcare etc., in order to build the “Smart City” total solutions. The continuous R&D investment in cloud computing, Internet of Things, medical equipment, automotive information technology, big data, and fundamental business platforms, Neusoft has made significant progress in the development of Xikang cloud platform and applications. In addition, the Company has accelerated the speed of innovation and transformation, moved up on the industry value chain created new market opportunities with domestic automotive manufacturers by combining the accumulated technical experience in automotive electronics from overseas markets with the deep understandings of Chinese market demands. In health management and service industry, the Company has innovatively used an “Online-to-Offline” Xikang health management and service model, and built “Healthy City” strategic partnerships with 14 cities, including Shenyang, Luoyang, Foshan, etc.

In terms of international business, Neusoft has enhanced its input in developing various markets and developing strategic partners around the world. The Company has managed to improve its planning, consulting and system designing capabilities for smart terminals. On the other hand, business model innovations covered automotive electronics, smart digital appliances and IT products. By these innovations and transformation, the Company continued with the transfer to high-value added businesses and provided customers with comprehensive solutions and innovative products. In 2012, Neusoft further enhanced the cooperation with international major customers, and continuously expanded new customers. During the reporting period, the income from international software businesses increased by 11.94%, accounting for 31.42% of the total income.

In the field of medical systems, Neusoft successfully launched its independent developed NeuViz 64 multi-slice CT scanner, which was later approved by FDA, CE, and SFDA clearances, and NeuViz 64 multi-slice CT also received widespread recognition and well feedback from markets in 2012. During the reporting period, the income from medical systems amounted to RMB 890 million Yuan, with a year-on-year increase of 11.22%.

Mr. Wang Yongfeng, President of Neusoft said: “In spite of the global economic recession and the slowdown of China’s economy, Neusoft has continuously improved employee’s compensation and income. Under the pressure of such external environment and internal cost pressure, we managed to achieve good results in 2012. It was attributed by Neusoft’s strategies of business model innovation and globalization development. Neusoft focused on creating customer values, reinforced the leading market position in existing industries and businesses, accelerated the expansion in Japan, Europe and U.S markets, and boosted business growth by innovations in business models and technologies. In addition, we have further promoted the plan of operational excellence, optimized organizational service system to support business development, and increased project management/operational efficiency within the company. The constantly implementation of these strategies have promoted sustainable development of the company.”