Mr. Zhang: Pansoft has been a fast-growing company since it was founded in 2001 with 60 employees. In September 2008, we became a publicly traded company on NASDAQ. At the end of 2008, we had approximately 130 employees, including 90 R&D professionals. Currently, almost 200 employees work in various projects in Pansoft. We are expecting that we will continue expanding our team. Pansoft is a software service provider specializing in software system integration and development. Presently, we focus on the oil and gas industry in China. Our two major long-term clients, Sinopec and PetroChina, are the two giant oil corporations in China as well as globally. We provide services for their headquarters and also their subsidiary companies all over China. As a solution and system service provider, we do not sell standard packages or generic products of software. Instead, we develop customized solutions or systems according the clients' particular or unique requirements and managerial needs. We have positioned ourselves as the customer-driven service provider in the software industry in China. We not only provide a software package for clients to use, but also get into the deep insides of their business operations and management, helping them identify the problems and determine their management and technical requirements, and turning these requirements into software systems. Step by step, in the long run, we assist our clients to establish their IT system which will play a strategic role in their business development and expansion. Consequently, we function as our clients' IT partner in their long-term corporate development. That's what we have been doing and what we will continue to do.
TWST: What do you believe will be the significant trends or changes in your
sector of the market over the next two to three years?
Mr. Zhang: First, we anticipate the software market - especially ERP market - in
China will be growing fast in the wake of China's fast-growing economy.
Moreover, when companies apply an ERP software system in business management,
there will be new ideas and innovative business models arising from business
practices. Consequently, more demands will arise from users on sophisticated
software system integration and improvement of legacy systems. Furthermore, more
clients with mature IT applications will need software service providers to be
their IT partners. By mature IT applications I mean the business has a complete
IT system with a large budget and a strong demand for services. Such companies
need their software service providers as IT partners to serve not only their
daily operational needs and reduce their job redundancy, but also their long-
term goals, and underpin their future growth and establish competitive
advantages over their competitors. Being an IT partner requires strong
industrial expertise and development capability with a consulting function, so
the IT partner is able to assist clients to constantly improve their business
operations and management. We consider this the direction for our business and
essential to define Pansoft's market position and business expansion strategy in
the next few years.
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