CLPS INCORPORATION ANNOUNCES CHAIRMAN’S LETTER TO THE COMPANY’S SHAREHOLDERS
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.
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.
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.
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,
Chairman of the Board
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.
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.
Investor Relations Office