(GNG) Geong International

31 January 2012

GEONG International Limited

("Geong" or the "Company")


Change of Registered Office



GEONG International Limited (AIM:GNG), a leading Internet software solutions
provider and operator for large enterprises in China, announces that it has
changed its registered office to:-

28-30 The Parade
St Helier
Jersey
JE1 1EQ



For further information, contact:

Amit Thakar, CFO +86 10 5222 0999

Tim Worlledge, Evolution Securities (Nominated Adviser) +44 207 071 4319



About GEONG International Limited

GEONG is recognised as a leading independent Internet software solutions
provider and operator for large enterprises in China.

Registered in Jersey, the Company's operations are headquartered in Beijing,
China. GEONG International Ltd. (GEONG or the Company) has been quoted on the
London Stock Exchange (LSE AIM: GNG.L) since June 2006. The Company has since
transformed from an ECM (Enterprise Content Management) software and service
centric business to an internet business centric company and both revenues and
profits have almost trebled over the last six years.

GEONG is an internet solutions and service software company managed by a world
class management and professional team who collectively own 26% of the
business. The Company's mission is to help its clients to improve their
business efficiency and customer satisfaction through smarter internet
applications.

For more information, please visit http://www.geong.com



END

12 January 2012

GEONG International Limited

("Geong" or the "Company")

Additional information regarding trade receivables

GEONG International Limited (AIM:GNG), a leading Internet software solutions
provider and operator for large enterprises in China, provides shareholders
with clarification regarding the amount of accrued income included within
amounts due from customers as shown in the interim results for the six months
ended 30 September 2011 and announced on 20 December 2011.

As at 30 September 2011, amounts due from customers were £18.5m, comprising £
5.3m of invoiced trade receivables and £13.2m of accrued income, up from
respectively £4.8m and £11.4m at 31 March 2011.

Our top 10 customers accounted for £4.4m, approximately 80%, of the trade
receivables of £5.3m as at 30 September 2011 and, of this amount, £2.4m was due
from a major customer on agreed deferred payment terms and is due to be paid in
full by the end of September 2012.

In the 3 months to 31 December 2011 we have collected £2.2m of the trade
receivables, approximately 76% of the balance outstanding as at 30 September
2011, excluding the £2.4m which is subject to deferred payment terms. We expect
the remainder of £0.7m to be collected in the current quarter ending 31 March
2012.

Similarly, our top 10 customers accounted for approximately £10.8m, or 80%, of
the accrued income of £13.2m as at 30 September 2011. In the period from 31
March 2011 to 30 September 2011, accrued income increased by £4.0m as a result
of services provided which have not yet been invoiced and reduced by £2.2m as a
result of previously accrued income which has now been invoiced. Furthermore, £
1.8m of this newly invoiced amount has already been collected with the
remaining £0.4m due to be collected in the current quarter ending 31 March
2012. The disproportionate net increase in accrued income, when compared with
the revenue generated from IaaS business, has arisen largely as a result of one
large and long term contract, accounting for some £1.8m, which will not be
invoiced until late this year. We expect to have invoiced substantially all of
the current accrued income balance by 31 December 2012 reflecting when the
majority of the milestones on current contracts will have been achieved.

The debtor days are currently skewed by the deferred payment terms on £2.4m,
40% of our current trade receivables, referred to above and the Board remains
confident that the debtor days will begin to stabilise when we have received
the £2.4m in full and as the proportion of SaaS sales increases beyond the
current 24% of sales. In the meantime, we will continue to work with our
customers to improve our cash flows and working capital position.

The Company expects to announce a trading update for the nine months ended 31
December 2011 in mid February 2012.

For further information, please contact:


GEONG International Limited www.geong.com Tel: +86 10 5222 0999
Henry Tse, Chairman
Weidong Wang, CEO
Amit Thakar, CFO

Evolution Securities Limited Tel: +44 20 7071 4300

(Nominated Adviser and Joint Broker)

Tim Worlledge

Esther Lee

About GEONG International Limited


GEONG is recognised as a leading independent Internet software solutions
provider and operator for large enterprises in China.

Registered in Jersey, the Company's operations are headquartered in Beijing,
China. GEONG International Ltd. (GEONG or the Company) has been quoted on the
London Stock Exchange (LSE AIM: GNG.L) since June 2006. The Company has since
transformed from an ECM (Enterprise Content Management) software and service
centric business to an internet business centric company and both revenues and
profits have almost trebled over the last six years.

GEONG is an internet solutions and service software company managed by a world
class management and professional team who collectively own 26% of the
business. The Company's mission is to help its clients to improve their
business efficiency and customer satisfaction through smarter internet
applications.

For more information, please visit www.geong.com



END

20 December 2011

FOR IMMEDIATE RELEASE





GEONG International Limited

("Geong" or the "Company")



CORRECTION: Interim Results



With reference to note 3 to the Condensed Group Interim Financial Statements in the interim results statement released by the Company earlier today, we have amended the breakdown of revenue, expenses and results for the 6 months ended 30 September 2010. The breakdown for the 6 months ended 30 September 2011 is unchanged. Accordingly we now issue the following replacement for note 3 to the Condensed Group Interim Financial Statements, entitled "Segment Reporting".

6 months ended 6 months ended
30 September 30 September
2011 2010
IaaS SaaS Consolidated IaaS SaaS Consolidated
£'000 £'000 £'000 £'000 £'000 £'000

Revenue and Expenses

Revenue 3,630 1,119 4,749 4,065 644 4,709

Inter-segment - - -
revenue

Total Revenue 3,630 1,119 4,749 4,065 644 4,709

Results

Segment results 1,776 629 2,405 1,985 359 2,344

Unallocated expenses (1,534) (1,590)

Results from 871 754
operating activities

Finance expenses (104) 0
(net)

Other income (33) (87)
(expenses)

Share option expense (22) 0

Income tax expenses (274) (170)

Profit for the 438 497
period

Assets and
liabilities

Segment assets 15,736 4,851 20,587 12,044 5,162 17,206

Unallocated assets 8,234 4,481

Total assets 28,821 21,687

Segment liabilities 4,691 1,446 6,137 1,877 1,252 3,129

Unallocated 3,326
liabilities 2,266

Total liabilities 9,463 5,395







For further information, please contact:


GEONG International Limited www.geong.com Tel: +86 10 5222 0999
Henry Tse, Chairman
Weidong Wang, CEO
Amit Thakar, CFO





Evolution Securities Limited Tel: +44 20 7071 4300
(Nominated Adviser and Joint Broker)
Tim Worlledge
Esther Lee




About GEONG International Limited


GEONG is recognised as a leading independent Internet software solutions
provider and operator for large enterprises in China.



Registered in Jersey, the Company's operations are headquartered in Beijing,
China. GEONG International Ltd. (GEONG or the Company) has been quoted on the
London Stock Exchange (LSE AIM: GNG.L) since June 2006. The Company has since
transformed from an ECM (Enterprise Content Management) software and service
centric business to an internet business centric company and both revenues and
profits have almost trebled over the last six years.



GEONG is an internet solutions and service software company managed by a world
class management and professional team who collectively own 26% of the
business. The Company's mission is to help its clients to improve their
business efficiency and customer satisfaction through smarter internet
applications.



For more information, please visit www.geong.com





END

GEONG International Limited ("GEONG" or "the Company")

Interim Results

GEONG International Limited (AIM: GNG.L), a leading internet
solution provider and operator in China for large enterprises, announces its
unaudited interim results for the six months ended 30 September 2011.

Financial Highlights

- Turnover up to £4.8 million (H1 2010/11: £4.7 million)
- Gross margin up to 51% (H1 2010/11: 50%)
- Profit before tax up to £0.71 million (H1 2010/11: £0.67 million)
- Basic earnings per share 1.2 pence (H1 2010/11: 1.3 pence)
- Fully diluted earnings per share 1.2 pence (H1 2010/11: 1.3 pence)
- Trade receivables of £18.7 million (H1 2010/11: £14.8 million)
including accrued income of £13.2 million (H1 2010/11: £10.0 million)
- Net cash of £7.3 million (H1 2010/11: £4.1 million)
- Order book of £15 million (H1 2010/11: £14.8 million) including £6
million (H1 2010/11: 6.9 million) of recurring revenue

Key Highlights and new clients

- Smarter Internet Platform with IBM and Oracle in Asia Pacific
market progressing well
- Revenue with IBM Global Delivery is delivering steady growth
- Continue to win new clients in core market and new sectors
including Bank of Tianjin, Lianjia Real Estate, and Shanghai
Construction Design Group.

- Continued success in promoting SaaS solution, social business, to
the existing clients
- GEONG Social Business solution delivered to our existing
clients, such as China Construction Bank, China Guangfa Bank,
Everbright Bank, Haitong Securities and Haier Group.

Commenting on the results, Wang Weidong, Chief Executive said:

"As the leading internet solution provider in China, I am pleased
to report that we have again delivered a satisfactory set of interim results.
We have maintained our revenues at the same level as last year but increased
our gross margin to 51% compared to 50% a year ago and 36% 18 months ago. This
not only vindicates our strategy of focusing on the higher margin SaaS
business but will also lead to stronger cash conversion as SaaS business
continues to replace IaaS business. Whilst uncertainty prevails in this
volatile macro-economic climate, management cautiously believes that, with the
revenue already delivered in the first half, the current order book fully
supports our trading forecasts for the remainder of the year.

Whilst we are disappointed that we could not conclude the
acquisition of AdBeyond Group, the Group remains adequately funded to pursue
its organic growth objectives and the Board believes that the Group remains in
a much stronger position to pursue other acquisition opportunities in the
future by not being burdened with the US$8 million convertible secured loan
stock previously being contemplated."

For further information, please contact:

GEONG International Limited Tel: +86 10 5222 0999
Henry Tse, Chairman
Weidong Wang, CEO
Amit Thakar, CFO

Evolution Securities Limited Tel: +44 20 7071 4300
(Nominated Adviser and Joint Broker)
Tim Worlledge
Esther Lee

About GEONG International Limited

GEONG is recognised as a leading independent Internet software solutions
provider and operator for large enterprises in China.

Registered in Jersey, the Company's operations are headquartered in
Beijing, China. GEONG International Ltd. (GEONG or the Company) has been
quoted on the London Stock Exchange (LSE AIM: GNG.L) since June 2006. The
Company has since transformed from an ECM (Enterprise Content Management)
software and service centric business to an internet business centric company
and both revenues and profits have almost trebled over the last six years.

GEONG is an internet solutions and service software company managed
by a world class management and professional team who collectively own 26% of
the business. The Company's mission is to help its clients to improve their
business efficiency and customer satisfaction through smarter internet
applications.

For more information, please visit www.geong.com




Chairman's Statement

Overview

We continue to execute our "Go-Deep-and-Broad" strategy in concert
with our existing partners, IBM and Oracle, and are selling our Smarter
Internet Platform (IaaS solution) and Social business solution (SaaS solution)
to more than 200 blue chip clients and further second tier customers. In
today's interim results, we are reporting new contracts, improving gross
margin and confirming increased opportunities that lie ahead of us in the
Greater China and Asia market as we continue to develop our product offering.

Our partnership strategy and the growth in the number of reputable
clients who continue to repeat purchasing our products have resulted in us
being able to reduce our selling expenses by £154,000 in the first half of
this year. In addition, we continue to benefit from the change in sales mix
where the higher margin SaaS sales now contribute over 25% of total revenue
(H1 2010/11: 14%) and this is reflected in our increased gross margin and
profitability. We are confident that the strategy will translate into further
improved profitability and stronger cashflow in the coming years.

New products and solutions

In the first half of this financial year, we continued innovating
and improving our products and services. In IaaS division, we developed serial
solution components for Enterprise Intranet, including Enterprise Report
Center, Enterprise Social Collaboration System, Enterprise Information Portal
2.0 and Enterprise Social Knowledge Management System. These new solutions
help our customers to improve their internal business productivity by
improving the employees' collaboration, knowledge sharing and mobility.

We have developed a new Social Business solution by integrating our
solution components with our partners' software platform, such as Oracle and
ResponsTek. Our SaaS cloud solution can be powered by Oracle cloud computing
technologies and comprises five components, Socialytics, Social Marketing, and
Social CRM, Social Commerce and Social CXM (customer experience
management).The solution will help us to take advantage of the three fastest
growing market opportunities in the China and Asia market - digital economy,
social networking applications and mobile internet. Social networking and
mobile internet usage in China are at a very nascent stage but are forecast to
grow strongly.

In addition, we are creating a huge enterprise social business
operation by utilising cloud computing technologies. We are currently building
the public clouds in Socialtyics, Social Marketing and Social CXM, and private
clouds in Social CRM and Social Commerce, for our clients. With the
establishment of more public and private clouds over time, GEONG will be well
placed to build and operate one of the largest enterprise social business
networks of cloud computing. In the last quarter and the coming year, this can
significantly reduce our set up and on-going operational costs and can build a
much higher entry barrier for the followers. At this stage, we anticipate that
we will commence generating revenue from these new products in the next
financial year.

Financial review

Revenue remained constant at £4.8 million as we have sought to
reduce the low-margin product sales in favour of other higher margin revenue
streams. The increase in gross margin to 51% from 50% reflects the continuing
shift towards SaaS in our sales mix, which we also expect to improve our cash
collection performance in the future. The improvement in gross margin resulted
in a 7% increase in pre-tax profits in spite of the £83,000 (H1 2010/11: nil)
finance cost incurred in the period

The effective tax rate during the first half was 38% (H1
2010/11:25%) The Group has four subsidiaries and in this half year, a number of
contracts were signed by subsidiaries in the higher tax jurisdictions hence
they reported higher profit leading to the Group's higher tax rate. However,
with improved tax planning, it is expected that the Group's tax rate will
revert back to its historical norm in the future.

The foreign exchange surplus of £941,000 (H1 2010/11: deficit of
£521,000) shown in the condensed consolidated statement of net income arose on
the translation of the net assets of the Chinese subsidiaries.

Cash balances were £7.3 million at the period end compared to £5.3
million 31 March 2011, the increase being due to the proceeds of the issue of
convertible loan stock earlier this year. On 18 August 2011, we also entered
into an annually renewable short-term facility of £1 million secured on our new debtor
balances against which we had drawn £500,000 at the period end. Currently, the
Group is in a strong cash position and there is no present expectation or
intention to further draw down on the facility but the Board believes that the
additional funding facility will enable the Company to more readily take
advantage of any new significant business opportunities that arise.

The rise in receivables is largely as a result of an increase in
accrued income, being income that has been recognised because the appropriate
milestones have been achieved but will only be invoiced upon completion of the
contract. This pattern is consistent with previous years and the accrued
income is expected to reduce in the second half of the year as contracts are
completed and invoices rendered. We remain confident that debtor days will
begin to decline in the next nine to twelve months when we anticipate the
proportion of SaaS sales to increase significantly as a result of the roll
out of new SaaS delivery models where the payment terms are relatively shorter
compared to IaaS, as the offering will be sold on a per-usage basis.

The carrying value of intangible assets has increased by £350,000,
being the value of copyrights filed by the Company in relation to new
products.

Outlook

We are building enterprise social business networks for our clients
and co-operating with our partners in utilising cloud computing technologies,
which the Board believes will provide a significant competitive advantage to
the business in the future years.

We have a strong balance sheet, including cash balances of £7.3
million at 30 September 2011, leaving us well placed to take advantage of the
many contracts and new business opportunities that we are seeing.
Notwithstanding that we decided not to proceed with the acquisition of
Adbeyond, the Board continues to believe in its strategy of seeking
acquisitions in Greater China that will both enhance our presence there and
increase the range of services that we can offer to our clients. We will
therefore continue to seek suitable targets which will support this growth
strategy.

Whilst mindful of the challenging financial environment, we expect
our performance for the second half to continue the progress we have made in
the year to date as we pursue our strategy of margin improvement and operating
cash generation. The Group's current order book is £15.6 million, of which 30%
is estimated to translate into revenue in this financial year and approximately £6.0 million is annually recurring revenue. Having regard to the existing orders, to our strong pipeline, and to our resilient business model and broad range of sector capabilities, the Board remains cautiously optimistic of achieving the
full year market expectations and further growth in the following years.

Henry H.Y. Tse

Chairman


Interim Condensed Statement of Comprehensive Income

For the six months ended 30 September 2011

Notes 6 months 6 months Year ended 31
ended 30 ended 30 March 2011
September September
2011 2010
£'000 £'000 £'000

Revenue 3 4,749 4,709 11,332
Cost of sales (2,344) (2,365) (5,309)
Gross profit 2,405 2,344 6,023

Other (expenses)/income (37) (88) 107
Selling and distribution (224) (378) (780)
expenses
Administration expenses (1,144) (1,053) (2,475)
Research and development
costs (166) (156) (245)
Share option expenses (22) - (8)
Other operating expenses (21) (3) (45)
Profit from operations 791 666 2,577
Finance costs (83) - -
Finance income 4 1 24
Profit before tax 712 667 2,601
Income tax expense 6 (274) (170) (510)
Profit for the period 438 497 2,091

Other comprehensive
(loss)/income
Exchange differences on
translating foreign 941 (521) (563)
operations
Total comprehensive
income/(loss) for the 1,379 (24) 1,528
period

Earnings per ordinary 7
share (pence)
Basic 1.16 1.31 5.53
Diluted 1.16 1.31 5.53



Interim Condensed Statement of Financial Position

As at 30 September 2011

Notes 30 September 30 September 31 March 2011
2011 2010
£'000 £'000 £'000

Assets
Non-current assets
Property, plant and 8 303 333 296
equipment
Other intangible assets 9 934 386 673
Total non-current 1,237 719 969
assets

Current assets
Inventories 184 366 323
Trade receivables 10 18,544 14,704 16,161
Other receivables 1,556 1,803 1,410
Cash and bank balances 7,300 4,095 5,340
Total current assets 27,584 20,968 23,234

Total assets 28,821 21,687 24,203

Liabilities & Equity
Current liabilities
Short-term borrowings 11 501 - -
Trade payables 1,203 768 1,189
Other payables 2,043 2,360 2,309
Interests payables 64
Tax liabilities 1,627 1,258 1,506
Total current 5,438 4,386 5,004
liabilities

Non-current liabilities
Long-term borrowings 11 2,315 - -
Deferred tax 1,699 1,000 1,342
liabilities
Deferred revenue 11 9 4
Total non-current 4,025 1,009 1,346
liabilities

Total liabilities 9,463 5,395 6,350

Capital and reserves
Share capital 12 378 378 378
Reserves 18,980 15,914 17,475
Total shareholders' 19,358 16,292 17,853
equity

Total liabilities and 28,821 21,687 24,203
equity


Interim Condensed Statement of Cash Flows

As at 30 September 2011

6 months ended 6 months Year ended 31
30 September ended 30 March 2011
2011 September
2010
£'000 £'000 £'000

Cash flows from operating activities
Profit before tax 791 667 2,577
Interest income 4 (1) -
Interest expense (3) - -
Allowance for doubtful debts 65 - 65
Depreciation of property, plant and 114 68 128
equipment
Amortisation of intangible assets 134 91 137
Net foreign exchange loss 4 70 -
Expense for share-based payments 22 - 8
1,131 895 2,915
Movements in working capital
Increase in receivables (1,624) (2,567) (3,567)
Decrease/(increase) in inventories 153 (105) (57)
(Decrease)/increase in payables (417) (219) 274
Cash used in operations (757) (1,996) (435)
Income taxes paid - (3) (3)
Net cash used in operating (757) (1,999) (438)
activities

Cash flows from investing activities
Interest received - 1 24
Purchase of property, plant and (24) (8) (31)
equipment
Purchase of intangible assets (350) (29) (367)
Net cash used in investing (374) (36) (374)
activities

Cash flows from financing activities
Net proceeds from issue of 2,400 - -
convertible notes
Proceeds from short term loans 501 - -
Equity financing facility - (25) -
Net cash generated from/(used in) 2,901 (25) -
financing activities

Net increase/(decrease) in cash and 1,770 (2,060) (812)
cash equivalents

Cash and cash equivalents at the 5,340 6,358 6,358
beginning of the period
Effects of exchange rate changes 190 (203) (206)
Cash and cash equivalents at the end 7,300 4,095 5,340
of the period



Interim Condensed Statement of changes in Equity

For the six months ended 30 September 2011

Share Share Convertible Other Merger Compensation Retained Exchange
capital premium notes reserve reserve reserve earnings reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000

Balance at 378 7,616 - 3 (698) 326 5,106 3,585 16,316
1 April 2010

Profit for the - - - - - - 497 497
period

Other - - - - - - (521) (521)
comprehensive
loss for the
period

Total - - - 3 - - 497 (521) (24)
comprehensive
income for
the period

Balance at 378 7,616 - 3 (698) 326 3,064 5,603 16,292
30 September
2010

Balance at
1 April 2011 378 7,616 - 13 (698) 334 7,187 3,023 17,853

Profit for
the period 438 438

Foreign
exchange
movement 941 941

Total
comprehensive
income for
the period - - - - - 438 941 1,379

Share options
granted 22 22

Issue of
shares -

Issue of 104 104
convertible
loans

Related
income tax

Balance at
30 September
2011 378 7,616 104 13 (698) 356 7,625 3,964 19,358

Notes to the Condensed Group Interim Financial Statements

1. Corporate Information

The Company's registered office is Walker House, PO Box 498, 28-34
Hill Street, St Helier, Jersey, JE4 5TF, Channel Islands. The Company is
domiciled in Jersey.

The Group has provided content management software and solutions
since its establishment in September 2000 and has earned a reputation as a
local technology leader in the Chinese Enterprise Content Management (ECM)
market, especially in the financial services industry.

2. Basis of preparation

The Company's unaudited condensed financial statements for the six
months ended 30 September 2011 has been prepared in accordance with the
International Accounting Standard 34 Interim Financial Reporting.

The same accounting policies, presentation and methods of
computation have been followed in these condensed financial statements as were
applied in the preparation of the Group's financial statements for the year
ended 31 March 2011.

The results for the period ended 30 September 2011 set out in this
Interim Report do not constitute the Company's statutory accounts. The
auditors reported on those accounts for the year ended 31 March 2011 was
unqualified and did not draw attention to any matters by way of emphasis.

3. Segment Reporting

6 months ended 6 months ended
30 September 30 September
2011 2010
IaaS SaaS Consolidated IaaS SaaS Consolidated
£'000 £'000 £'000 £'000 £'000 £'000
Revenue and Expenses
Revenue 3,630 1,119 4,749 3,065 1,644 4,709
Inter-segment revenue - - -
Total Revenue 3,630 1,119 4,749 3,065 1,644 4,709
Results
Segment results 1,776 629 2,405 985 1,359 2,344
Unallocated expenses (1,534) (1,590)
Results from operating 871 754
activities
Finance expenses (net) (104) 0
Other income (expenses) (33) (87)
Share option expense (22) 0
Income tax expenses (274) (170)
Profit for the period 438 497
Assets and liabilities
Segment assets 15,736

4,851 20,587 12,044 5,162 17,206
Unallocated assets 8,234 4,481
Total assets 28,821 21,687
Segment liabilities 4,691 1,446 6,137 1,877 1,252 3,129
Unallocated liabilities 3,326 2,266
Total liabilities 9,463 5,395
4. Seasonality

The operating result is not subject to significant seasonal variations during
the financial period.

5. Exchange rates of principal currencies

The following significant exchange rates applied during the period:

Average rate Reporting date spot rate
6 months 6 months Year ended
ended ended 31.3.2011 30.9.2011 30.9.2010 31.3.2011
30.9.2011 30.9.2010
£ £ £ £ £ £
USD1 0.61690 0.65821 0.64340 0.64000 0.63270 0.62380
CNY1 0.09560 0.09696 0.09590 0.10010 0.09475 0.09510

6. Taxation

The tax charge for the six months ended 30 September 2011 and for the six
months ended 30 September 2010 is calculated based upon the prevailing tax
rate of 15%.

7. Earnings per share

7.1 Basic earnings per share

The earnings and weighted average number of ordinary shares used in the
calculation of basic earnings per share are as follows:

6 months ended 6 months ended Year ended 31
30 September 30 September March 2011
2011 2010
Earnings used in the
calculation of total
basic earnings per share (£) 438,410 496,785 2,092,073
Weighted average number of
ordinary shares for the purposes of
basic earnings per share 37,834,622 37,834,622 37,834,622
Basic earnings per share
(pence per share) 1.16 1.31 5.33

7.2 Diluted earnings per share

The earnings used in the calculation of diluted earnings per share are as
follows:

6 months ended 6 months ended Year ended 31
30 September 30 September March 2011
2011 2010
Earnings used in the
calculation of total 438,410 496,785 2,092,073
diluted earnings per share (£)

The weighted average number of ordinary shares for the purposes of diluted
earnings per share reconciles to the weighted average number of ordinary
shares used in the calculation of basic earnings per share as follows.

6 months ended 6 months ended Year ended 31
30 September 30 September March 2011
2011 2010
Weighted average number of
ordinary shares used in the
calculation of basic
earnings per share 37,834,622 37,834,622 37,834,622
Shares deemed to be issued for
no consideration in respect of
employee options 81,090 29,168 29,168
Weighted average number of
ordinary shares used in the
calculation of diluted
earnings per share 37,915,712 37,863,790 37,863,790
Diluted earnings per share
(pence per share) 1.16 1.31 5.53


The 7.5% £2.5 million convertible unsecured loan issued during the period
potentially increase the number of ordinary shares but are not dilutive and
are therefore excluded from the weighted average number of ordinary shares for
the purposes of diluted earnings per share.

8. Property, plant and equipment

The company purchased computer server and related items of £54,000 and had
disposal of £9,000. Gross translation difference arose of £77,000 on existing
assets of £1,358,000 due to the movement in exchange rates.

9. Intangible assets

In the first half of the year, intangibles have increased by
£350,000 as the company obtained several copyrights for its new products.

10. Trade Receivables

As at As at As at
30 September 2011 30 September 2010 31 March 2011
£'000 £'000 £'000
Trade receivables 5,469 4,806 4,907
Accrued income 13,227 9,978 11,398
18,696 14,784 16,305
Less: allowance for doubtful debts (152) (80) (144)
Total 18,544 14,704 16,161

11. Borrowings

Bank borrowings

During the period, the Group obtained a new short term bank borrowing in the
amount of RMB5 million from China Merchants Bank. This loan bears interest at
7.32% pa and is repayable within one year. The borrowing is collateralised and
secured by the trade receivables (note10).

Convertible unsecured loan stock (A Notes)

£2.5 million convertible A Notes were issued by the Company on 19
May 2011 at an issue price of £1 per note. The conversion price is at a 23%
premium to the share price of the ordinary shares at the date the A Notes were
issued.

Conversion may occur at any time between 1 January 2012 and 30 June
2014. If the notes have not been converted, they will be redeemed on 30 June
2014 at par Interest of 7.5% will be paid half yearly in arrears up until that
settlement date.

The net proceeds received from the issue of the A Notes have been
split between the liability component and an equity component, representing
the residual attributable to the option to convert the liability into equity
of the Group, as follows:

£'000

Proceeds of issue (net of apportioned transaction costs) 2,400,000

Equity component 103,737

Liability component at date of issue 2,296,263

Interest expense 63,185

Interest paid -

Liability component at 30 September 2011 2,315,179


The equity component of £103,737 has been credited to equity
(option premium on convertible notes).

The interest charged for the period is calculated by applying an
interest rate of 7.5%. The difference between the carrying amount of the
liability component at the date of issue £2,296,263 and the amount reported in
the balance sheet £2,315,179 at 30 September 2011 represents the effective
interest rate less interest expense to that date, plus amortised transaction
costs.

12. Share capital

The total authorised number of ordinary shares is 100,000,000 with £0.01 par
value per share. The issued share capital of the Company as at 30 September
2011 is £37,834,622 fully paid. There were no movements in the issued share
capital of the company in the current interim reporting period.

The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company. All shares rank equally with regard to the Company's residual assets.

13. Related party transactions

Transactions within the Group have been eliminated in the
preparation of the financial information set out in this report and are not
disclosed in this note.

There are no other related party transactions apart from the
remuneration of key management.

14. Share options:

At 30 September 2011, the Company had the following outstanding share options:

Number Exercise price (£) Date of grant Exercise period
302,727 0.30 23.06.2006 23.06.2009-22.06.2016
327,221 0.65 11.06.2007 11.06.2010-10.06.2017
248,424 0.56 19.06.2008 19.06.2011-18.06.2018
591,893 0.33 23.06.2009 23.06.2012-22.06.2019

15. Events after the end of the reporting period

On 23 November 2011, the Company announced the termination of
agreement signed on 19 July 2011 for the acquisition of Adbeyong (Group)
Limited. Both parties have agreed, in the light of the continuing instability
in the financial markets, that it would not be in the best interests of either
party to conclude the acquisition. The Board is in discussion with the vendors
of Adbeyond concerning the terms of the termination. In consequence of the
termination of the Acquisition Agreement, there will be no need for the US$8
million convertible secured loan stock previously being contemplated and there
will therefore be no such issue by the Company.

16. Approval of interim financial statements

The interim financial statements were approved by the board of directors on 19
December 2011.




END