CDC Software expands operations in China, adds seven resellers

Oct 1 2009

CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise software applications and services, today announced it has added seven resellers to its Global Partner Program as part of its previously announced expansion plans to position China as the second largest market, in terms of revenue, for the company in the next few years.

The new resellers are expected to help expand CDC Software’s geographic footprint and improve penetration in China, bolster CDC Software’s presence in existing verticals such as chemical and pharmaceutical manufacturing, and introduce CDC Software’s products to new manufacturing markets such as discrete, machine, jewelry and fashion. These new resellers are also expected to help CDC Software achieve its strategic goals in China which calls for plans to make China the second leading market for CDC Software. As of the second quarter of 2009, approximately 50 percent of CDC Software’s sales were generated from North America followed by 30 percent from EMEA.

The new resellers for CDC Software’s solutions are:

• ACT Solutions, Ltd. will resell Pivotal CRM to the new markets of jewelry and fashion manufacturing in Hong Kong and South China.
• InfoDNA will resell CDC HRM and Ross ERP to the chemical manufacturing markets in East China.
• JSWorld will resell Ross ERP and CDC HRM to the chemical and pharmaceutical manufacturing markets in West and South China.
• Kinggong (will resell CDC HRM and CDC Software’s e-M-POWER discrete manufacturing solution to the electronic and machine manufacturing markets in Shanghai and Jiangshu.
• Net Consultants Ltd. will resell Pivotal CRM to general manufacturing customers in Hong Kong and South China.
• Radica System Ltd. an email marketing solution provider, plans to bundle Pivotal CRM with their email marketing solution to the large enterprise market in Hong Kong.
• Think Technology Group Ltd. will resell Pivotal CRM primarily to the discrete manufacturing markets in Hong Kong and South China.

These new resellers are the latest initiatives in CDC Software’s strategy to expand its sales in China. As previously announced, CDC Software signed a term sheet to acquire up to a 51 percent stake in Beijing-based Hejia Software Technology Co. Ltd, a major ERP software provider in China.

“We are very pleased with adding these established resellers in China to our Global Partner Program numbering more than 1,100 resellers worldwide,” said Bruce Cameron, president of CDC Software. “We believe China holds a dynamic growth opportunity for the enterprise software market and believe that these new resellers may make a significant impact to our sales goals there in the next few years. Furthermore, we intend to seek to acquire more companies in China, which may also help to boost sales there. With this acquisition strategy, along with our formidable product engineering, support, direct sales and reseller operations in that country, we plan to eventually make that region our second largest revenue generator for the company.”

“We are excited to add these new partners to our growing reseller channel in China,” said Hilton Law, managing director for CDC Software’s Global Partner Program in China. “These new partners are expected to help open up new markets for our products and enable us to penetrate further in the one of the world’s fastest growing economies.”