HONG KONG, March 12, 2021 /PRNewswire/ — CLPS Incorporation (Nasdaq: CLPS) (“CLPS” or “the Firm”), right this moment launched a letter to shareholders from the Chairman of the Firm’s Board of Administrators (the “Board”), the total textual content of which is offered beneath. All CLPS shareholders are inspired to learn it.
I’m happy to announce that CLPS continues to develop in an upwards trajectory as evidenced by the stable monetary outcomes for the primary half of fiscal yr 2021. Going ahead, we’re decided to keep up our robust development momentum by investing in IT service sources, corresponding to on-demand merchandise and cutting-edge expertise. As well as, the event of recent companies inside and out of doors our trade scope will probably be an attribute to our development. This initiative roadmap will additional enhance our aggressive benefit in direction of offering prime quality IT providers, with centered on working on the shopper’s digital and company technique stage.
I’m thrilled to debate our streamlined technique and improvement expectation for the remainder of fiscal yr 2021.
1. Enterprise Improvement
Within the first half of fiscal yr 2021 monetary outcomes, we outperformed our earlier fundamentals pushing our income in an upward development by 37.zero% YoY because of the continued demand for IT providers. As well as, our improved working effectivity has resulted to a rise of 213.5% in working revenue and 114.9% in web earnings YoY.
For the rest of the fiscal 2021, CLPS will give full play to its world enlargement technique in exploring enterprise alternatives within the abroad market. We can even leverage the supply capability of our abroad entities to progressively broaden our IT providers in Southeast Asia, Japan, U.S., and different potential geographic market. In Mainland China, we plan to actively develop partnership with corporations centered on fintech trade and with enterprise attain throughout home and abroad market to assist enterprises deal with challenges utilizing cutting-edge applied sciences. By leveraging one another’s benefits and sources, the results of the collaborative method is predicted to translate to an improved monetary efficiency. With our aggressive development pipeline, we forecast a 30% to 35% improve in income and an adjusted non-GAAP web earnings improve of 60% to 65% for the entire yr of fiscal 2021.
2. Steady Analysis and Improvement
Our final objective to allow the digital transformation journey of our purchasers all begins with the CLPS Innovation Lab’s efforts within the analysis and utility of progressive applied sciences, together with large knowledge, cloud computing, robotic course of automation (RPA), and synthetic intelligence (AI), amongst others. These progressive applied sciences are designed because the spine for growing complete utility situations to realize operational effectivity and shopper satisfaction.
three. Expertise Provide
We always give precedence on the event and cultivation of IT abilities to satisfy the wants for monetary IT providers and options of our world purchasers. Holding on our world enlargement technique, the expertise coaching packages will probably be additional expanded to abroad, corresponding to in Hong Kong and Singapore. Beneath the Expertise Creation Program (TCP) in banking, insurance coverage and different monetary fields, the introduction of extra coaching topic domains can be within the pipeline, of which some are personalized based mostly on the shopper’s demand. Consequently, it’ll present us with robust basis to be a frontrunner in skilled IT coaching.
four. Mergers and Acquisitions
Within the second half of fiscal 2021, our M&A efforts will probably be centered on corporations with enterprise mannequin comparable or complementary to CLPS’s core enterprise. In Mainland China, our goal firm focuses in progressive options supplier using cutting-edge expertise. By way of abroad M&A, we plan on increasing our world community to penetrate potential purchasers. The goal areas embrace Southeast Asia and the U.S.
By lively mergers and acquisitions, we count on to generate new development engines and promote diversified enterprise mannequin improvement in our endeavor in direction of exploration of different enterprise areas.
On March three, 2021, we efficiently closed the $16 million registered direct providing at a worth of $6 per share. The providing will assist our future improvement in world enlargement, analysis and improvement, and expertise improvement. As well as, the providing can be meant for normal company and capital functions, which can permit us to realize more healthy fundamentals and convey long run worth to our shareholders.
Summing up the expansion technique within the fiscal yr 2021, CLPS is dedicated to bringing trade commonplace and prime quality IT providers to our purchasers whereas making certain shareholders that we ship glorious company governance and excellent efficiency. As we embark to the following chapter of our development, I want to lengthen my deep gratitude to our workers, companions, and shareholders for the unwavering assist and confidence to CLPS.
I sincerely and repeatedly want you security, good well being, and a pleasant day!
With sincerity and willpower,
Xiao Feng Yang
Chairman of the Board
About CLPS Incorporation
Headquartered in Hong Kong, CLPS Incorporation (the “Firm”) (Nasdaq: CLPS) is a world main info expertise (“IT”) consulting and options service supplier specializing in the banking, insurance coverage, and monetary service sectors. The Firm serves as an IT options supplier to a rising community of purchasers within the world monetary service trade, together with giant monetary establishments within the US, Europe, Australia, Southeast Asia and Hong Kong SAR, and their PRC-based IT facilities. The Firm maintains 19 supply and/or analysis & improvement facilities to serve totally different prospects in varied geographic areas. Mainland China facilities are situated in Shanghai, Beijing, Dalian, Tianjin, Baoding, Chengdu, Guangzhou, Shenzhen, Hangzhou, Suzhou, and Hainan. The remaining eight world facilities are situated in Hong Kong SAR, USA, UK, Japan, Singapore, Malaysia, Australia, and India. For additional info concerning the Firm, please go to: http://ir.clpsglobal.com/, or observe CLPS on Fb, LinkedIn, and Twitter.
Sure of the statements made on this press launch are “forward-looking statements” throughout the that means and protections of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended. Ahead-looking statements embrace statements with respect to the Firm’s beliefs, plans, targets, targets, expectations, anticipations, assumptions, estimates, intentions, and future efficiency. Identified and unknown dangers, uncertainties and different components, which can be past the Firm’s management, could trigger the precise outcomes and efficiency of the Firm to be materially totally different from such forward-looking statements. All such statements attributable to us are expressly certified of their entirety by this cautionary discover, together with, with out limitation, these dangers and uncertainties associated to the Firm’s expectations of the Firm’s future development, efficiency and outcomes of operations, the Firm’s capability to capitalize on varied industrial, M&A, expertise and different associated alternatives and initiatives, in addition to the dangers and uncertainties described within the Firm’s most not too long ago filed SEC reviews and filings. Such reviews can be found upon request from the Firm, or from the Securities and Change Fee, together with by the SEC’s Web web site at http://www.sec.gov. Now we have no obligation and don’t undertake to replace, revise or right any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements in any other case are made.
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