BEIJING, May 16 YTEC-Bank-Deal
BEIJING, May 16 /Xinhua-PRNewswire-FirstCall/ -- Yucheng Technologies
Limited (Nasdaq: YTEC), a leading provider of IT solutions and services to
China's banking industry, today announced that it has signed a contract and
started providing Point of Sale (POS) merchant acquiring services to the
Beijing Branch of China Construction Bank ("CCB Beijing"), following its
initiation of partnership with CCB Guangdong Branch in providing such services
in late February.
Yucheng's CEO, Mr. Weidong Hong stated: "We are excited to expand our
partnership with China Construction Bank in providing POS merchant acquiring
services. CCB Beijing is CCB's largest branch. Because Beijing has a
relatively high level of consumer spending and bankcard adoption rate in China,
our partnership with CCB Beijing provides us a new opportunity to expand our
POS network as well as improve its overall quality in terms of per POS
transaction value. CCB's partnership with us in Beijing also demonstrated
their confidence in Yucheng's ability to help them promote their POS
installation and increase their per POS transaction value."
Mr. Weidong Hong further commented: "Since our initiation of POS merchant
acquiring business in partnership with China Merchants Bank over a year ago,
we have built a professional team composed of 376 sales representatives and
established our presence in 15 major cities across China. We made this
significant infrastructure investment in the POS business because the initial
results from our partnership with China Merchants Bank have been encouraging.
The capital cost of each POS terminal has declined to US$225 from US$250 in
the first quarter of 2008. The average monthly processed value ("APV") per
POS terminal with more than three months of continuous operations in Q1 2008
surpassed US$7,000 (RMB49, 133 at 1 US dollar to 7.0190 RMB). This translates
into roughly US$14 of revenue per month per POS terminal, without including
additional potential revenue that may be generated when we begin to provide
prepaid cards and affinity programs in partnership with banks and merchants in
the future. Partnering with more banks to deploy POS terminals will enable us
to make better use of our existing sales network and realize significant
benefits from economy of scale, and we continue to receive inquiries from
other banks about potential partnerships. With Chinese consumers' paying
habits shifting from cash to bank cards, we are confident the POS network will
deliver significant long-term value for our shareholders."
About China Construction Bank
China Construction Bank is one of the top four commercial banks in China.
Founded in 1954 and headquartered in Beijing, China Construction Bank has an
extensive network of approximately 13,629 branch outlets across the country.
In addition, it maintains overseas branches in Hong Kong, Singapore, Frankfurt,
Johannesburg, Tokyo and Seoul, and representative offices in New York and
London. As of the end of 2006, it had total assets of approximately US$902
billion, which ranked the second among all the Chinese banks. As of December
31, 2007, CCB had issued more than 12.6 million credit cards and 220 million
debit cards in China.
Safe Harbor Statement
This press release includes forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995 that involve risks and uncertainties. Forward-looking statements are
statements that are not historical facts. Forward-looking statements generally
can be identified by the use of forward-looking terminology, such as "may,"
"will," "expect," "intend," "estimate," "anticipate," "believe," "project" or
"continue" or the negative thereof or other similar words. Such
forward-looking statements, based upon the current beliefs and expectations of
Yucheng's management, are subject to risks and uncertainties, which could
cause actual results to differ from the forward-looking statements. The
following factors, among others, could cause actual results to differ from
those set forth in the forward-looking statements: current dependence on the
PRC banking industry demand for the products and services of Yucheng;
competition from other service providers in the PRC and international
consulting firms; the ability to update and expand product and service
offerings; retention and hiring of qualified employees; protection of
intellectual property; creating and maintaining quality product offerings;
operating a business in the PRC with its changing economic and regulatory
environment; and the other relevant risks detailed in Yucheng filings with the
Securities and Exchange Commission. The information set forth herein should be
read in light of such risks. Yucheng assumes no obligation to update the
information contained in this press release.
For further information, please contact:
In Beijing, China
Ms. Yvonne Young
Investor Relations
Tel: +86-10-6442-0533
Email: investors@yuchengtech.com
In the U.S.A.
Mr. Jim Preissler
Advisor, Investor Relations
Tel: +1-646-383-4832
Email: jpreissler@yuchengtech.com
SOURCE Yucheng Technologies Limited
