CDC Corporation (CHINA)

China Strategy for Increasing Software Sales

We also believe we have a strong sales channel in China that may allow us to benefit from positive economic and technology trends in China.

Our total headcount in sales and marketing in China is currently approximately 110 persons, and our locations include Shanghai, Beijing, Nanjing, Guangzhou, and Hong Kong.

Global concern over China’s food and product safety is a major catalyst for interest in our products in China as our ERP products provide food and product traceability necessary to support brand protection initiatives. Other industry drivers include the need to support complex regulatory and reporting requirements for human resources and payroll, and the need to ensure that supply chain inefficiencies do not negatively affect the low cost of labor.

Furthermore, one example of an emerging market we are targeting in China is CRM in the Financial Services industry of Institutional Asset Management. Approximately 50% of the top 25 global asset management firms use CDC Software’s CRM packages. We hope to leverage that experience into the Asia/Pacific region, initially targeting Hong Kong and Singapore.

We have developed our HRM solutions to specifically address the unique regulatory and reporting requirements found in China, and our HRM products are already established in the manufacturing, business services and financial services industries in China. We intend to take advantage of this customer base to help cross-sell our other enterprise applications to these customers.