HONG KONG, Jan. 4, 2021 /PRNewswire/ -- CLPS
Incorporation (Nasdaq: CLPS) ("CLPS" or "the Company"), today
released a letter to shareholders from the Chairman of the
Company's Board of Directors (the "Board"), the full text of which
is provided below. All CLPS shareholders are encouraged to read
it.
Dear Shareholders,
On behalf of the Board, I wish you a happy and safe new
year!
In 2020, CLPS celebrated its 15th anniversary since
its establishment. It was also a challenging year that forced most
people to adopt to new realities. Despite this unprecedented year,
we remained on track with our growth strategy such as global
business expansion, continuous talent supply development,
successful mergers and acquisitions, and technological innovation
progress which further improved our operational efficiency.
Let us look back at the highlights of the Company's performance
in 2020.
1. Client Base and Revenue Growth
Despite macroeconomic effects during this period, CLPS has
maintained double-digit annual revenue growth and its net income
attributable to CLPS Incorporation's shareholders has turned
profitable. In fiscal 2020 financial results, the revenue increased
by 37.7% to $89.4 million in the same
period of the previous year. The revenues by geography were also
improved. The year-over-year revenues generated from Singapore, Hong
Kong, and Mainland China have increased by 191.8%, 56.6%,
and 30.5%, respectively.
The gross profit increased by 31.0% to $31.1 million, and net income attributable to
CLPS Incorporation's shareholders was $2.9
million, or $0.20 basic and
diluted earnings per share, compared to net loss attributable to
CLPS Incorporation's shareholders of $3.3
million, or $0.24 basic and
diluted losses per share in the prior year period. Non-GAAP net
income attributable to CLPS Incorporation's shareholders increased
by 85.3% to $6.9 million.
In 2020, CLPS gained more overseas and domestic clients and
project-based contracts from the financial services and IT
industries.
In IT consulting services, CLPS increased its client-base in
international banks, credit card, trust, futures, payment system,
internet services, e-commerce, smart logistics, intelligent
vehicle, and semiconductor, among other industry. In November 2020, CLPS won the IT services provider
bid for a well-known bank card processing services company in
China.
In customized IT solution services, CLPS actively explored new
business opportunities with its existing clients. It recently
signed a deal with a leading Chinese state-owned automotive company
for big data-enabled vehicle intelligent manufacturing system
project.
2. Talent Supply
As CLPS's edge among other competitors in the IT services
market, we have been able to develop and maintain the talent supply
chain in order to meet the demand of our clients.
CLPS has been cooperating with the Technological and Higher
Education Institute of Hong Kong
("THEi") to boost its degree program in information technology. In
addition, we established the Cooperative Education on Information
Technology Program ("Coop Program") in partnership with Hong Kong
Multimedia Design Association ("HKMMDA"), a non-profit organization
in Hong Kong, in which more than
20% of the first batch of qualified trainees have been placed to
local banks.
Our achievements under the Talent Creation Program (TCP) and
Talent Development Program (TDP) have been and will continue to be
an important component in solving through the bottleneck of IT
services market and talent supply shortage. Our talent programs are
among the important drivers of the Company's business growth in the
international and domestic markets.
3. Research and Development Efforts
CLPS renamed its research center, the CLPS Research, to CLPS
Innovation Lab. It has been dedicated to the research and
application of innovative technologies, including distributed
application systems, cloud computing, micro services, open API,
robotic process automation (RPA), and big data, among other
technologies. CLPS Innovation Lab focuses on continuous scientific
and technological innovation to provide clients with more
comprehensive and efficient IT services.
In the past year, we implemented RPA and big data into our
internal human resources, financial, and operational management
systems, which significantly improved the Company's overall
operation. In addition, CLPS's recruitment center in the
Mainland China launched in early 2020 is equipped with advanced
technologies, such as cloud platforms, big data, and RPA to
accelerate the talent acquisition process, thereby reducing
operational cost.
CLPS's RPA has supported its clients' digital transformation,
including the successful distribution into the application
scenarios in the accounting, credit investigation, procurement, and
logistics, among other processes for some large state-owned and
pharmaceutical enterprises. As a result of RPA achievements, we
have received positive feedback from our clients.
4. Streamlined Organizational Structure
CLPS has streamlined its corporate governance and organizational
structure to better implement its global expansion strategy.
CLPS relocated its global corporate headquarters to Hong Kong, and set up Shanghai and
Singapore as its regional
headquarters in the Mainland China and Southeast Asia,
respectively. We also set up our California subsidiary and expanded the fintech
business development services opportunities in the Asia-Pacific and the US markets following the
international business standards and services.
With more than ten years of experience in the credit card
service industry, we set up a wholly-owned subsidiary, Qinson
Credit Card Services Limited ("QCC"), to cater to the credit card
service demands of the financial industry. In one-year period, QCC
has attained its stature in the credit card industry, and it
continuously develops more business opportunity. At present, its
client base consists of well-known international and large banks,
bank card associations, and international financial IT
companies.
5. Mergers and Acquisitions
CLPS continued to advance its mergers and acquisitions efforts
in Mainland China and globally. We recently acquired the remaining
20% ownership stake in Ridik Pte. Ltd. ("Ridik"). As a wholly owned
subsidiary, Ridik will enable us to fully integrate our business in
the Southeast Asia region and to further advance our business
expansion in the global market.
In Mainland China, we invested in Shenzhen Huaqin Robotics and
Guangdong Zhichuang Software Technology to diversify our service
offerings in robotics, semiconductor, and other industries. Our
investment initiatives will put us in a position to expand our
business overseas and to better serve our clients going
forward.
The COVID-19 outbreak has brought significant impact to the
global economy. However, it accelerated the digitization and
informatization of traditional industries. Post-pandemic, it is
forecasted that majority of enterprises will pivot to technology
platforms and will venture on digital transformation. In 2021, we
expect growing demand for global financial IT services and
solutions, as well as for IT talents in cutting-edge technology
domain such as artificial intelligence (AI), blockchain, big data,
and cloud applications.
Looking forward to 2021, we are dedicated to investing for
resources based on our expertise in financial IT services and
solutions in China and globally,
advancing our competitive advantage, reaching global market
business opportunity, and providing efficient IT services to our
existing and potential clients. Our streamlined technological and
management innovations will drive the Company to achieve higher
quality development and bring long-term value to our shareholders.
On behalf of the CLPS family, I extend my gratitude to our
shareholders' unwavering support and confidence in the Company. We
hope all of you to stay healthy and safe during these challenging
times.
With sincerity and determination,
Xiao Feng Yang
Chairman of the Board
CLPS Incorporation
About CLPS Incorporation
Headquartered in Hong Kong, CLPS Incorporation (the
"Company") (Nasdaq: CLPS) is a global leading information
technology ("IT"), consulting and solutions service provider
focusing on the banking, insurance and financial sectors. The
Company serves as an IT solutions provider to a growing network of
clients in the global financial industry, including large financial
institutions in the US, Europe, Australia, Southeast
Asia and Hong Kong, and their PRC-based IT centers. The
Company maintains 18 delivery and/or research & development
centers to serve different customers in various geographic
locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Baoding, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Suzhou. The remaining eight
global centers are located in Hong Kong SAR, USA, UK, Japan, Singapore, Malaysia, Australia, and India. For further information regarding the
Company, please visit: http://ir.clpsglobal.com/, or follow
CLPS on Facebook, LinkedIn,
and Twitter.
Forward-Looking Statements
Certain of the statements made in this press release are
"forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include statements with respect to the
Company's beliefs, plans, objectives, goals, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and
other factors, which may be beyond the Company's control, and which
may cause the actual results, performance, capital, ownership or
achievements of the Company to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. All such statements attributable to us
are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties related to the Company's financial and operational
performance in the second half and full year of fiscal 2020, its
expectations of the Company's future performance, its preliminary
outlook and guidance offered in this presentation, as well as the
risks and uncertainties described in the Company's most recently
filed SEC reports and filings. Such reports are available upon
request from the Company, or from the Securities and Exchange
Commission, including through the SEC's Internet website
at http://www.sec.gov. We have no obligation and do not
undertake to update, revise or correct any of the forward-looking
statements after the date hereof, or after the respective dates on
which any such statements otherwise are made.
Contact:
CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
View original
content:http://www.prnewswire.com/news-releases/clps-incorporation-announces-chairmans-letter-to-the-companys-shareholders-301200186.html
SOURCE CLPS