HONG KONG, Jan. 28, 2022 /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,
In celebration of the Chinese Spring Festival, the Board wishes
everyone a happy and safe new year!
While COVID-19 is still an active pandemic, the successful
development of vaccines and the increasing number of vaccinated
people across the globe have helped to reduce the severity of the
virus' effects. On the horizon, we have high expectations for the
economic growth of 2022.
As we close out the year 2021, we are pleased to take this
opportunity to share with you our significant achievements and
milestones, product and solution development, partnership and
M&A progress, and investor outreach activities that attributed
to our continued business growth. Taking a look ahead to 2022, we
are optimistic that the Company will continue on its growth
trajectory.
1. New Products and Business Development
Through strategic cooperation, CLPS and Minshang Creative
Technology Holdings Limited ("MCT", 01632.HK) formed a joint
venture company, the MSCT Investment Holding Limited ("MSCT"), to
develop a next generation loan trading software intended for
overseas market demand. At present, the "Loan for Employees"
solution is now in its online testing stage. CLPS plans to increase
its capital investment in MSCT in 2022 to advance the software
development that supports various loan scenarios and solutions for
overseas users.
In addition, CLPS partnered with Columbus Century Development
Co., Pte. Ltd. ("Columbus") and established LinkCrypto Finance
Technology Limited ("LinkCrypto"), a joint venture company,
dedicated for the development of blockchain-based financial
industry solutions. The details of the solution are now being
discussed with potential clients. We are confident that we will
complete the project delivery in 2022, which will result in revenue
generation and profitability.
We also increased our R&D budget in credit card products in
2021. In line with our 2022 marketing strategy, we will actively
promote the integration of CLPS SaaS platform- based credit card
products into our clients' associated transactional processes. At
present, the commercial and demo versions of our new generation
credit card system is under development and are being presented to
potential clients.
2. Partnerships
In 2021, CLPS acquired 15% ownership stake in Beijing UniDev
Software Co., Ltd. ("UniDev"), of which it has bolstered our
capability in providing customized IT solution services.
We also entered into strategic cooperation with several IT
service providers who operate on niche markets both domestically
and overseas. We deepened our cooperation with Yonyou Software to
provide enterprises in the overseas market with support in the
development, implementation and delivery of cloud-based products
and services.
CLPS has also entered into strategic cooperation with fintech
providers Beijing Yusys Technologies Co., Ltd. ("Yusys
Technologies", 300674.SZ) and another A-share listed company, among
others.
3. Operational Updates
We established our Philippine subsidiary to expand our business
footprint in Southeast Asia as
part of our global expansion. We also made inroads into the
overseas tourism industry to help our client base successfully
complete their digital transformation. Our goal in 2022 is to
attract more clients and to create more business opportunities in
the United States. Also in the
pipeline is the expansion of our market reach in South Korea, aiming to expand LinkCrypto's
blockchain-based financial solutions business.
Domestically, CLPS is enabling digital transformation to achieve
operational efficiency in vocational education sectors.
4. Financial
CLPS successfully closed the $16
million registered direct offering in March 2021, securing funds for our daily
operation and future growth. We recently announced that the
Company's majority-owned subsidiary JAJI (Shanghai) Technology Service Co., Ltd.
("JAJI") intends to be listed in the National Equities Exchange and
Quotations ("NEEQ"), with the goal of being listed on the Beijing
Stock Exchange ("BSE").
We achieved strong financial results in the fiscal year 2021,
both on topline and bottom line. Our operating income was
$126 million, a year-over-year
increase of 41%; and net income attributable to CLPS shareholders
of $6.8 million, a year-over-year
increase of 132%. By putting in hard work and best efforts, we
expect revenue growth in the range of 30% - 35% and non-GAAP net
income to grow approximately 32% - 37% in fiscal year 2022.
5. Investor Outreach
The Company's management team has participated in several
virtual investor conferences and one-one-one meetings with retail
and institutional investors in 2021 to further improve CLPS's
positioning within the investment community and secondary market.
Once the pandemic restrictions ease, we plan to arrange non-deal
roadshows and conduct other investor outreach activities across
North America and Asia.
CLPS will continue advancing its global expansion strategy and
actively drive business growth in 2022, while adhering to
applicable laws, rules and regulatory requirements to ensure that
compliance policies are followed.
We believe that our excellent corporate governance, as reflected
in our operational and financial performances, is the engine that
serves the interests of our shareholders.
I would like to express my gratitude to our employees, partners
and shareholders for the continued trust as we take CLPS to the
next level going forward.
With sincerity and determination,
Xiaofeng 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, Xi'an, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan. The remaining eight global centers are
located in Hong Kong SAR, USA,
Japan, Singapore, Malaysia, Australia, India, and the
Philippines. For further information regarding the Company,
please visit: https://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