5 December 2012

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 2012.

Financial Highlights

- Turnover 4.3 million (H1 2011/12: 4.7 million)
- Gross margin 53.5% (H1 2011/12: 50.6%)

- Profit before tax 0.16 million (H1 2011/12: 0.71 million)

- Basic earnings per share 0.19 pence (H1 2011/12: 1.16 pence)
- Fully diluted earnings per share 0.19 pence (H1 2011/12: 1.16
pence)
- Trade receivables 19.8 million (At 31 March 2012:18.9 million)
including accrued income of 15.5 million (At 31 March 2012: 14.7
million)
- Gross cash 4.0 million (At 31 March 2012:5.3 million)
- Order book 11.5 million (At 31 March 2012: 11.0 million)
including 4.5 million for delivery in H2

Key Highlights and new clients

- The Company is expanding its customer and geographical base by
using its partnerships with IBM and Oracle to extend its location coverage
across Greater China and Southeast Asia. It has now established representation
in Dalian, Wuhan, Shenzhen, Macau and Hong Kong in Greater China as well as in
Vietnam, Indonesia and Malaysia.

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

The revenue and profits after tax for the period are in line with
Company projections and taking into account that the majority of the Company's
revenues arise in H2, the Board remains confident that the full year results
will be in line with those of 2012.

The reduction in revenue and profit during the period has resulted
from the strategic changes initiated two years ago, which, whilst causing a
slow-down in revenues this year, will improve the longer term prospects of the
business. The IaaS contract clients provide a strong base from which to
develop our business but the gross margins are lower and collection periods
are significantly longer than we can achieve on SaaS contracts. The Company
has been monitoring, evaluating and assessing the gross margins and payment
terms of all new contracts critically before accepting the business. As a
result, the inflow of new IaaS business has slowed with a consequential impact
on revenues. In addition, the Company is still in the transitional phase of
seeking to capture more SaaS revenue from its existing IaaS customers, and,
although it has secured two new SaaS contracts since the beginning of the
year, taking the number of SaaS clients to 20, the full benefits of these
contracts will not be seen until next year and thereafter in the form of
regular and contracted revenue.

For further information, please contact:

GEONG International Limited www.geong.com Tel: +86 10 85869655
Henry Tse, Chairman
Weidong Wang, CEO
David Tsui, CFO

Financial Adviser and Joint Broker
Evolution Securities China Ltd Tel: +44 (0)20 3362 8882
Tim Worlledge

Nomad and Joint Broker
finnCap Tel: +44 (0)20 7220 0500
Stuart Andrews
Ben Thompson


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.

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 improve their business
efficiency and customer satisfaction through smart Internet applications.

For more information, please visit www.geong.com.



Chairman's Statement

Overview

The last two years have provided us with very challenging trading
conditions but, despite these circumstances, we have pursued what we believe
to be the correct strategy to position our company for the longer term. We
have already begun to see the benefit of the strategy with an increase in the
gross profit margins and will continue to work closely with our existing
customers to maximise the revenue opportunities, to drive more SaaS business
in order to achieve a higher average profit margin and improve cash flow and
to explore new growth areas in social business and mobile Internet. In the
last few months, the Company has entered into discussions with a number of
major computer companies to strengthen the co-operation platform and we
anticipate further such opportunities in the coming months.

Recognizing the need to remain innovative in a highly competitive
market, we have continued to invest in R&D on our Smart Internet Platform and
have been developing a new Enterprises' Social Business Platform, which was
launched in the middle of November, leveraging the flexibility of cloud
computing technologies. The Company's foundations, our commitment to R&D, our
cutting edge products and our partnerships with IBM and Oracle, have enabled
us to maintain strong and lasting relationships with an enviable list of blue
chip clients.

The Company has continued to gain new contracts, winning four new
customers in the IaaS division and generating two new contracts in the SaaS
division since the beginning of the year. This takes the number of SaaS
clients to 20 and increases the level of regular revenue. The value of the
business won from new clients during the period is in the order of 1.1
million with an additional 4.5 million from existing clients.

The Board believes that the established platforms and cloud
technologies will give the Company a bigger competitive edge in the market in
the future. It is also confident that its current strategy, to focus on the
capture of more SaaS business, will continue to improve overall margins and
provide more stable revenue flows in the future. The Board also recognizes the
importance of speeding up the collection of the receivables and believes that
the benefits of the actions that have been taken should become evident in the
later part of 2013.

New products and solutions

In this highly growing Internet market, GEONG continues to develop
new products and solutions. In the first half of this financial year, within
the IaaS division, we developed several industry-specific solutions in the
banking and insurance sectors based on Smart Internet Platform. In the banking
sector, we developed two new solutions, the Financial Life Center Solution and
the Customer Portal Risk Management, in response to the requirements of both
existing and new clients. In the insurance industry, a new Smart Insurance
Customer Portal Solution was delivered in September. This will help us develop
the potential opportunities in the industry in China by providing a
competitive edge through innovative products and solutions which meet clients'
new requirements on social business and mobile Internet.

We have also developed a new Enterprises' Social Business Platform
to provide a one-stop SaaS service to help our more than 200 existing clients
move their individual SaaS services to this platform. The platform will
include a series of functions from social marketing, enterprise web analytics
and optimization, SNS and social commerce, to customer experience management
to totally cover the customers' Internet buying cycle and then to drive their
demand in the social business. The platform now does not just include
GEONG-owned IP solutions, but also integrates our worldwide and local
partners' solutions so we can enrich our SaaS solutions more quickly.

Financial review

Revenue was 4.3 million (SaaS 1.4 million) compared to 4.7
million (SaaS 1.1 million) in the same period last year, the reduction
arising as we have sought to reduce the low-margin product sales. The increase
in gross profit margin to 53.5% from 50.6% reflects this change and a larger
proportion of SaaS income in our overall revenues. Selling expenses were 0.2
million higher than the same period last year due to the provision of more
commissions to sales executives on SaaS contracts and, as previously stated we
have made a heavy investment in R&D, up by 120% on the same period last year.
We anticipate that R&D spend will be at around 5% of the revenue in the
future. The foreign exchange deficit was 0.3 million (H1 2011/12: surplus of
0.9 million), which arose on the translation of the net assets of the Chinese
subsidiaries from renminbi into pounds sterling.

Gross cash balances were 4.0 million (net 1.1 million) at the
period end compared to 5.3 million (net 2.5 million) at 31 March 2012. The
rise in receivables to 19.8 million is due to the increase in accrued income,
being income that has been recognised under the accounting standards IFRS
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 come is expected to reduce in the second half
of the year as contracts are completed, invoices rendered and cash collected.
The third quarter is the cash collection peak period in China and we
anticipate that the cash balance will have increased and accrued income will
have decreased by the end of December 2012. We have already collected 1.1
million of the receivables balance during the months of October and November.

The carrying value of intangible assets has increased by 0.8
million from last year ended, being the value of copyrights filed by the
Company in relation to new products for which amortisation has been allowed in
accordance with the policies established.

The order book at 30 September 2012 stood at 11.5 million and
included 1.5 million in SaaS business. Approximately 5.5 million of the
current order book is recurring, and 4.5 million is due for delivery in the
second half of the year.

Outlook

The Board continues to view that co-operation with our partners in
utilising cloud computing technologies, being one of the fastest growing areas
of applications, will be the key expansion area in the future and will ensure
the competitiveness of the Company.

Despite the high level of receivables from customers, the Company's
overall client base is solid and the relationships with clients are very
positive. With the expectation that the economy will improve over the next
twelve months, more projects are envisaged. The balance sheet is strong with
gross cash balances of 4.0 million at 30 September 2012 and this will improve
through cash collections in the last quarter of the year.

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 confident of an upturn in revenue in H2 and of achieving full
year results in line with those of last year.



Henry H.Y. Tse

Chairman




Interim Condensed Statement of Comprehensive Income

For the six months ended 30 September 2012

Notes 6 months ended 6 months ended Year ended
30 September 30 September 31 March
2012 2011 2012
Unaudited Unaudited Audited
'000 '000 '000

Revenue 3 4,306 4,749 9,669
Cost of sales (2,001) (2,344) (5,115)
Gross profit 2,305 2,405 4,554

Selling and distribution (429) (224) (478)
expenses
Administration expenses (1,215) (1,144) (3,016)

Research and development (363) (166) (441)
costs
Share option expenses (5) (22) (41)
Other operating income 6 (58) (11)
Profit from operations 299 791 567
Finance costs (140) (83) (224)
Finance income 1 4 39
Profit before tax 160 712 382
Income tax expense 6 (89) (274) (220)
Profit for the period 71 438 162

Other comprehensive income
Exchange differences on
translating foreign
operations (304) 941 644
Total comprehensive income
for the period
(233) 1,379 806

Earnings per ordinary 7
share (pence)
Basic 0.19 1.16 0.43
Diluted 0.19 1.16 0.43



Interim Condensed Statement of Financial Position

As at 30 September 2012

Notes 30 September 30 September 31 March
2012 2011 2012
Unaudited Unaudited Audited
'000 '000 '000
Assets
Non-current assets
Property, plant and 8 261 303 259
equipment
Intangible assets 9 1,772 934 1,257
Total non-current assets 2,033 1,237 1,516

Current assets
Inventories 481 184 387
Trade receivables and 10
accrued income
19,856 18,544 18,937
Other receivables 1,121 1,556 1,200
Cash and cash equivalents 3,989 7,300 5,290
Total current assets 25,447 27,584 25,814

Total assets 27,480 28,821 27,330

Liabilities and equity
Current liabilities
Short-term borrowings 11 498 501 495
Trade payables 781 1,203 757
Other payables 1,703 2,107 1,664
Tax liabilities 1,855 1,627 1,643
Total current liabilities 4,837 5,438 4,559

Non-current liabilities
Long-term borrowings 11 2,374 2,315 2,345
Deferred tax liabilities 1,683 1,699 1,619
Deferred revenue 10 11 3
Total non-current 4,067 4,025 3,967
liabilities

Total liabilities 8,904 9,463 8,526

Capital and reserves
Share capital 12 378 378 378
Reserves 18,198 18,980 18,426
Total shareholders' equity 18,576 19,358 18,804

Total liabilities and 27,480 28,821 27,330
equity



Interim Condensed Statement of Cash Flows

As at 30 September 2012

6 months ended 6 months ended Year ended
30 September 30 September 31 March
2012 2011 2012
Unaudited Unaudited Audited
'000 '000 '000

Cash flows from operating activities
Profit before interest and tax 299 791 567
Allowance for doubtful debts (1) 65 169
Depreciation of property, plant and 16 114 118
equipment
Amortisation of intangible assets 304 134 359
Loss on disposal of fixed assets,
net
- - (2)
Net foreign exchange loss - 4 -
Expense for share-based payments 5 22 41
623 1,130 1,252
Movements in working capital
Increase in receivables (1,116) (1,624) (2,072)
(Increase)/decrease in inventories (98) 153 (55)
Increase/(decrease) in payables 333 (417) (1,223)
Cash used in operations (258) (758) (2,098)
Interest paid (109) (3) (148)
Income taxes paid - - -
Net cash used in operating (367) (761) (2,246)
activities

Cash flows from investing activities
Interest received 1 4 39
Purchase of property, plant and (17) (24) (47)
equipment
Purchase of intangible assets (854) (350) (919)
Net cash used in investing (870) (370) (927)
activities

Cash flows from financing activities
Net proceeds from issue of - 2,400 2400
convertible notes
Repayment of short term loans (488) - -
Proceeds from short term loans 498 501 495

Net cash generated from financing 10 2,901 2,895
activities

Net (decrease)/increase in cash and (1,227) 1,770 (278)
cash equivalents

Cash and cash equivalents at the 5,290 5,340 5,340
beginning of the period
Effects of exchange rate changes (74) 190 228
Cash and cash equivalents at the end 3,989 7,300 5,290
of the period



Interim Condensed Statement of Changes in Equity

For the six months ended 30 September 2012

Equity
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 1 April 2012 378 7,616 104 28 (698) 374 7,336 3,666 18,804
Comprehensive income
Profit for the period - - - - - - 71 - 71
Foreign exchange movement - - - - - - - (304) (304)
Transactions with owners
Shares options expenses - - - - - 5 - - 5

Balance at 30 September 2012 378 7,616 104 28 (698) 379 7,407 3,362 18,576

Balance at 1 April 2011 378 7,616 - 13 (698) 334 7,187 3,023 17,853
Comprehensive income
Profit for the period - - - - - - 438 - 438
Foreign exchange movement - - - - - - - 941 941
Transactions with owners
Share options expenses - - - - - 22 - - 22
Issue of convertible loans - - 104 - - - - - 104

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

Balance at 1 April 2011 378 7,616 - 13 (698) 334 7,187 3,023 17,853
Comprehensive income
Profit for the period - - - - - - 162 - 162
Foreign exchange movement - - - - - (1) 2 643 644
Transactions with owners
Transfer to statutory reserves - - - 15 - - (15) - -
Shares options expenses - - - - - 41 - - 41
Issue of convertible loans - - 104 - - - - - 104

Balance at 31 March 2012 378 7,616 104 28 (698) 374 7,336 3,666 18,804


Notes to the Condensed Financial Statements for the period ended 30 September
2012

1. Corporate Information

The Company's registered office is 28 - 30 The Parade, St Helier,
Jersey, JE1 1EQ, 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 2012 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 2012.

The results for the period ended 30 September 2012 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 2012 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
2012 2011
IaaS SaaS Consolidated IaaS SaaS Consolidated
'000 '000 '000 '000 '000 '000

Revenue and Expenses
Revenue 2,911 1,395 4,306 3,630 1,119 4,749
Inter-segment - - - - - -
revenue
Total Revenue 2,911 1,395 4,306 3,630 1,119 4,749

Results
Segment results 1,444 861 2,305 1,776 629 2,405
Unallocated expenses (2,006) (1,534)
Results from 299 871
operating activities
Finance expenses (140) (104)
(net)
Other income 6 (33)
(expenses)
Share option expense (5) (22)
Income tax expenses (89) (274)
Profit for the 71 438
period

Assets and
liabilities
Segment assets 14,683 7,036 21,719 15,736 4,851 20,587
Unallocated assets 5,761 8,234
Total assets 27,480 28,821
Segment liabilities 3,627 1,738 5,365 4,691 1,446 6,137
Unallocated 3,539
liabilities 3,326
Total liabilities 8,904 9,463


4. Seasonality

The operating result is slightly affected by the seasonality in
particular relation to the IaaS customers which the spilt is approximately 35%
in the first half of the year and 65% in the second half. For SaaS customers,
the income stream is not affected by the seasonality.

5. Exchange rates of principal currencies

The following significant exchange rates applied during the period:

Average rate
6 months 6 months Reporting date spot rate
ended ended Year ended
30.9.2012 30.9.2011 31.3.2012 30.9.2012 30.9.2011 31.3.2012


USD1 0.63240 0.61690 0.62660 0.61850 0.64000 0.62380

CNY1 0.09990 0.09560 0.09800 0.09760 0.10010 0.09510

6. Taxation

The Company's operating subsidiaries in PRC are subject to
preferential tax rate of 15% due to their high technology enterprise status.
Therefore, the tax charge for the six months ended 30 September 2012 is
calculated based on the 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
30 September 30 September 31 March
2012 2011 2012
Earnings used in the
calculation of total
basic earnings per share () 71,489 438,410 162,116

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) 0.19 1.16 0.43


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
30 September 30 September March
2012 2011 2012
Earnings used in the
calculation of total
diluted earnings per share () 71,489 438,410 162,116

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
30 September 30 September March
2012 2011 2012

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 -

Weighted average number of
ordinary shares used in
the calculation of diluted
earnings per share 37,834,622 37,915,712 37,834,622

Diluted earnings per share
(pence per share) 0.19 1.16 0.43

The 7.5% 2.5 million convertible unsecured loan issued in May last
yearpotentially 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

During the period, the Company purchased computer server and
related items of 53,000, spent on new office renovation of 19,000, also
written off some fixed assets with losses of 63,000.

9. Intangible assets

In the first half of the year, intangible assets have increased by
854,000 as the Company is in progress of obtaining six software copyrights in
banking and automotive sectors.

10. Trade Receivables

As at As at As at
30 September 2012 30 September 2011 31 March 2012
'000 '000 '000

Trade receivables 4,669 5,469 4,511
Accrued income 15,504 13,227 14,746
20,173 18,696 19,257
Less: allowance for doubtful debts (317) (152) (320)
Total 19,856 18,544 18,937

Out of the total receivables of 19.8 million, 15.5 million was related to
accrued income and 1.73 million related to one single customer which is IBM
Huawei.

The accrued income is expected to be reduced in the second half of
the year as contracts are completed, invoices rendered and cash collected. The
third quarter is the cash collection peak period in China and we anticipate
that the cash balance will be increased and accrued income will have decreased
at the end of December 2012.

The accrued income represents amounts not yet invoiced, but for
which specific milestones have been met, which is in accordance with common
practice in PRC.

11. Borrowings

Bank borrowings

The short term loan was the renewal of the loan from China Merchant
Bank for amount of 0.498million (RMB 5.1 million). 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 94,007

Interest paid 93,493

Liability component at 30 September 2012 2,374,873

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 2,374,873 at 30 September 2012 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 2012 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 2012, the Company had the following outstanding share options:

Number Exercise price () Date of grant Exercise period
326,241 0.30 23.06.2006 23.06.2009-22.06.2016
346,814 0.65 11.06.2007 11.06.2010-10.06.2017
248,424 0.56 19.06.2008 19.06.2011-18.06.2018
571,201 0.33 23.06.2009 23.06.2012-22.06.2019

15. Events after the end of the reporting period

There are no material events to report after the reporting period.

16. Approval of interim financial statements

The interim financial statements were approved by the Board of
Directors on the 3rd December 2012.




END