HONG KONG, March 12, 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,
I am pleased to announce that CLPS continues to grow in an
upwards trajectory as evidenced by the solid financial results for
the first half of fiscal year 2021. Going forward, we are
determined to maintain our strong growth momentum by investing in
IT service resources, such as on-demand products and cutting-edge
technology. In addition, the development of new businesses within
and outside our industry scope will be an attribute to our growth.
This initiative roadmap will further improve our competitive
advantage towards providing high quality IT services, with focused
on working at the client's digital and corporate strategy
level.
I am thrilled to discuss our streamlined strategy and
development expectation for the rest of fiscal year 2021.
1. Business Development
In the first half of fiscal year 2021 financial results, we
outperformed our previous fundamentals pushing our revenue in an
upward trend by 37.0% YoY due to the continued demand for IT
services. In addition, our improved operating efficiency has
resulted to an increase of 213.5% in operating profit and 114.9% in
net income YoY.
For the remainder of the fiscal 2021, CLPS will give full play
to its global expansion strategy in exploring business
opportunities in the overseas market. We will also leverage the
delivery capacity of our overseas entities to progressively expand
our IT services in Southeast Asia,
Japan, U.S., and other potential
geographic market. In Mainland China, we plan to actively develop
partnership with companies focused on fintech industry and with
business reach across domestic and overseas market to help
enterprises address challenges using cutting-edge technologies. By
leveraging each other's advantages and resources, the result of the
collaborative approach is expected to translate to an improved
financial performance. With our aggressive growth pipeline, we
forecast a 30% to 35% increase in revenue and an adjusted non-GAAP
net income increase of 60% to 65% for the whole year of fiscal
2021.
2. Continuous Research and Development
Our ultimate goal to enable the digital transformation journey
of our clients all starts with the CLPS Innovation Lab's efforts in
the research and application of innovative technologies,
including big data, cloud computing, robotic process
automation (RPA), and artificial intelligence (AI), among others.
These innovative technologies are designed as the backbone for
developing comprehensive application scenarios to achieve
operational efficiency and client satisfaction.
3. Talent Supply
We constantly give priority on the development and cultivation
of IT talents to meet the needs for financial IT services and
solutions of our global clients. Holding on our global expansion
strategy, the talent training programs will be further expanded to
overseas, such as in Hong Kong and
Singapore. Under the Talent
Creation Program (TCP) in banking, insurance and other financial
fields, the introduction of more training subject domains is also
in the pipeline, of which some are customized based on the client's
demand. As a result, it will provide us with strong foundation to
be a leader in professional IT training.
4. Mergers and Acquisitions
In the second half of fiscal 2021, our M&A efforts will be
focused on companies with business model similar or complementary
to CLPS's core business. In Mainland China, our target company
focuses in innovative solutions provider utilizing cutting-edge
technology. In terms of overseas M&A, we plan on expanding our
global network to penetrate potential clients. The target areas
include Southeast Asia and the
U.S.
Through active mergers and acquisitions, we expect to generate
new growth engines and promote diversified business model
development in our endeavor towards exploration of other business
areas.
5. Financing
On March 3, 2021, we successfully
closed the $16 million registered
direct offering at a price of $6 per
share. The offering will support our future development in global
expansion, research and development, and talent development. In
addition, the offering is also intended for general corporate and
capital purposes, which will allow us to achieve healthier
fundamentals and bring long term value to our shareholders.
Summing up the growth strategy in the fiscal year 2021, CLPS is
committed to bringing industry standard and high quality IT
services to our clients while ensuring shareholders that we deliver
excellent corporate governance and outstanding performance. As we
embark to the next chapter of our growth, I would like to extend
my deep gratitude to our
employees, partners, and shareholders for the unwavering support
and confidence to CLPS.
I sincerely and continuously wish you
safety, good health, and a nice day!
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 service sectors.
The Company serves as an IT solutions provider to a growing network
of clients in the global financial service industry, including
large financial institutions in the
US, Europe, Australia, Southeast Asia and Hong Kong SAR, and their
PRC-based IT centers. The Company maintains 19 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,
Suzhou, and Hainan. 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. Known and unknown risks, uncertainties and other
factors, which may be beyond the Company's control, may cause the
actual results and performance of the Company to be materially
different from 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 expectations of the
Company's future growth, performance and results of operations, the
Company's ability to capitalize on various commercial, M&A,
technology and other related opportunities and initiatives, 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
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SOURCE CLPS