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Aug. 23, 2013 /PRNewswire/ -- Ninetowns Internet Technology Group Company Limited (Nasdaq: NINE) ("Ninetowns" or the "Company"), one of
China's leading providers of online solutions for international trade,
announced today that it expects its net revenues and net income to be adversely affected by recent changes to the Catalogue of Import and Export Commodities Subject to Inspection and Quarantine by the Entry-Exit Inspection and Quarantine Authorities (the "Catalogue").
August 1, 2013, the General Administration of Quality Supervision, Inspection and Quarantine of the PRC announced certain changes to the Catalogue. Beginning on
August 15, 2013, 1,507 categories of items that were originally contained in the Catalogue are no longer subject to quality inspection prior to export, although 87 categories will still be subject to animal and plant quarantine inspection prior to export after the change to the Catalogue.
Tommy Fork, Chief Financial Officer of the Company, stated, "We are currently evaluating the impact these changes could have on our business. We expect our net revenues from sales of enterprise software and related customer maintenance services, which represented 62.9%, 81.1% and 66.2% of our total net revenues for 2010, 2011 and 2012, respectively, to decrease as the market demand for our products and services, which facilitate the processing of the required import / export declarations and approvals for the quality inspection, decreases as a result of these changes."
Mr. Fork further stated, "We are considering possible steps we should take in response to these changes; however, there can be no assurance that any solution that we pursue will be sufficient to avoid an adverse impact."
About Ninetowns Internet Technology Group Company Limited
Ninetowns (Nasdaq: NINE) is a leading provider of online solutions for international trade, with its key services in automating import / export e-filing. Ninetowns has been listed on the NASDAQ Stock Exchange since December 2004 under the symbol "NINE." More information can be found at ir.ninetowns.com.