Profile: Longtop Financial Technologies Limited (LFT)

Longtop Financial Technologies Limited (Longtop Cayman), incorporated in August 2007, together with its subsidiaries provides a range of software solutions and services to the financial institutions in the People’s Republic of China (PRC), including the development, licensing and support of software solutions, the provision of maintenance, support, and other services, and system integration services related to the procurement and sale of third party hardware and software. The software solutions provided by the Company are classified into four categories: channel, business, management and business solutions. In May 2008, the Company completed the acquisition of Huayuchang Co-Founder Technology Development Co., Limited (Huayuchang). In July 2008, the Company completed the acquisition of Precision Hightech Company Limited (Puji). In February 2009, the Company completed the acquisition of Beijing Jactus Ruanbo Software and Technology Co., Ltd. (Jactus). In January 2010, the Company completed the acquisition of Giantstone Information & Technology Ltd. (Giantstone), a core banking solution provider in China.

Longtop Cayman offers software solutions in five categories: channel-related solutions, business-related solutions, management-related solutions, business intelligence solutions and value-added solutions. The wholly owned subsidiaries of the Company are Longtop Financial Technologies (BVI) Limited; Longtop Financial Technologies Group Limited; Xiamen Longtop System Co., Ltd. (Longtop System); Xiamen Longtop Financial Technology Management Co., Ltd. (XLM); Shanghai Longtop Technology Co., Ltd.; Advanced Business Services (Beijing) Co., Ltd. (ABS); Guangzhou FEnet Information Technologies Co., Ltd. (FEnet) and Beijing Huayuchang Co-Founder Technology Development Co., Limited (Huayuchang).

Software Development

The software development operation of the Company consists of custom-designed software development, standardized software development and software maintenance. Longtop Cayman provides custom-designed software solutions to address a range of financial institution information technology (IT) needs. During fiscal 2009, the custom-designed software development accounted for 65.1% of the revenues from the software. The Company have customized software development efforts, including related platforms, modules or elements to develop solutions. During fiscal 2009, the sales of the standardized software solutions contributed 31.5% of the Company’s revenues in the software development. Longtop Cayman also offers supplemental warranty and service contracts that are for duration of 12 months. During fiscal 2009, the maintenance services contributed 3.4% of the Company’s revenues from the software development.

The channel-related solutions provided by the Company enable banks to service their customers, through a combination of automated teller machines (ATMs), traditional bank tellers, online banking, customer relationship management (CRM) and enterprise customer information facility (ECIF). During fiscal 2009, the channel-related solutions constituted 16.4% of the software development revenues of the Company.

In fiscal 2009, the business-related solutions contributed 16.4% of the software development revenues of the Company. The payment and settlement system solutions include solutions for international trade finance system, SWIFT (payment and settlement), and factoring.

The management-related solutions provided by the Company include solutions for enterprise resource management and credit/risk management. These tools include solutions for enterprise resource management and credit/risk management. These include credit management solutions that assist banks in managing, and minimizing risk associated with, a broad range of loan solutions, including commercial loans, housing loans and personal loans. It also offers other management solutions, such as office automation, human resource management and regulatory reporting and compliance management. During fiscal 2009, the management-related solutions constituted approximately 40.4% of the software development revenues of the Company.

The business intelligence solutions constituted approximately 30.8% of the software development revenues in fiscal 2009. The other value added solutions for the Company constituted approximately 0.7% of the software development revenues of the Company. The Company offers to the banking and non-banking clients various solutions, such as payroll management for public sector employees.

Other Services

Longtop Cayman also offer other services to address the information technology (IT) needs unrelated to the software development. The other services provided by the Company include automated teller machines (ATM) maintenance services and ancillary services. Ancillary services include system integration services and miscellaneous services, such as consulting, IT system management and other supplementary technology-related services.

The Company provide ATM maintenance and support services to banks. As of March 31, 2009, the Company was under contracts to maintain and support approximately 11,000 ATMs. Longtop Cayman provided integration services to the clients to assist them in the procurement and installation of hardware and software that best meet their system requirements. The Company’s tasks include providing consulting services to clients to assess their system requirements, management of supplier relationships and bidding processes, contract negotiations and testing and acceptance of third party software and hardware. It also includes providing trade credit as a value-added service to the clients. The company, through, information technology service management (ITSM) offers its clients consulting services regarding configuration and system change management, security management, crisis management, and information technology asset management. It also offers various consulting and supplementary technology-related services.

The Company competes with Digital China Holdings Limited, Yucheng Technologies Limited, Global InfoTech Group, Sinosoft Limited, Accenture, IBM, Oracle, Tata Consulting Services, Diebold, GRG Yuntong Banking Equipment Co., Ltd., Nantian Electronic Information Co., Ltd. NCR and Beijing Sihitech Co., Ltd.