China TransInfo announces Q2 results

The China TransInfo Technology Group has announced its financial results for the second quarter of 2012, which ended on June 30. Its revenues were US$31.4 million, a decrease of 14.8% on the same period of 2011. However, the gross margin in the second quarter of 2012 increased to 31.3% from 28.7% in 2011, mainly due to higher-margin transportation projects and improvements in its hardware purchasing practice and labor management.

Announcing the results, the company’s chairman and CEO, Shudong Xia, said, “During the second-quarter, our top line growth continued to vary, due to the timing of contract progress and execution, however, we signed US$54 million in new contracts, and our backlog increased by 11% to approximately US$216 million, indicating a stronger book of business for the company. In addition, we are pleased to see a year-over-year improvement in our gross margin, owing to our cost-effective project execution initiatives intended to optimize hardware purchasing practices and labor management. We maintained solid profitability despite the lower revenue level and higher tax rate. We remain committed to growing our business alongside the favorable dynamics of China’s transportation market.”

During 2012, the company has successfully developed a commercial vehicle monitoring and control platform for the Chinese Ministry of Transport. To date, the company has recorded more than 1.51 million vehicles registered on the platform and approximately 420,000 active users. The company’s subsidiary, Beijing Zhangcheng Science and Technology Co Ltd, which operates under the Palmcity brand, has released an updated version of its Android-based Real-Time Traffic Information application. The new version of the app now has advanced features that include user sharing and searching of traffic information via ‘Sina Weibo’, which is the most popular social-networking platform in China. In addition, Palmcity officially released its iOS-based Real-Time Traffic Information application V3.1 for iPhone users in July.

15 August 2012