CLPS INCORPORATION ANNOUNCES CHAIRMAN’S LETTER TO THE COMPANY’S SHAREHOLDERS
HONG KONG, Feb. 6, 2023 /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.
The Board of CLPS wishes you a prosperous Year of the Rabbit!
Our business has remained resilient despite various macroeconomic disruptions in 2022. We are proud of our accomplishments primarily driven by our dedicated employees and management team, along with the effectiveness of our strategy. We achieved milestones in our topline growth, product development, strategic partnership, operational optimization, and global expansion.
Here is a recap of our accomplishments in 2022 and a discussion of our plans going forward:
1. New products and businesses
CLPS made a series of achievements in product development and business expansion.
- We launched a scenario-based digital currency application solution to assist financial institutions to accelerate the adoption and far-reaching use of digital currency.
- We launched CAKU 2.0, the upgraded new generation of credit card system product of CLPS. It is based on an open platform architecture that allows rapid deployment and flexible replacement of the credit card system.
- MSCT, a majority-owned subsidiary of CLPS, completed the localization process of its new generation of loan system. It is currently in the process of optimizing functions, expanding functionality, and enhancing product adaptability to meet the overseas market-specific requirements.
Currently being marketed in Hong Kong, the two latter products are also due to be rolled out this 2023 to small and medium-sized banks in Macau and across Southeast Asian countries to provide them with a full range of integrated services for their credit card and credit loan businesses.
We are optimistic that the success of these products will eventually contribute to our revenue growth.
We also pursued exploring overseas market and attended international fintech conferences in Hong Kong, Singapore and other cities to showcase our products and competitive advantages to global clients and partners.
Going forward, we are fully committed to our innovation initiative through the development of more fintech products and services, and build an exclusive financial ecosystem that will enable our clients within the financial industry to take digital transformation forward and achieve agile business management.
2. Strategic Partnerships
We entered into a strategic partnership with DaoCloud, a cloud service provider in China, to jointly develop a series of fintech solutions based on cloud-native application modernization and to explore business opportunity into the overseas market.
To advance our evolving global presence, we strengthened our international partnerships:
- Partnership with NTT Data MCI, a Japan-based strategy and management consulting firm to penetrate more business in the Japanese market.
- Partnership with Blue, a digital life insurer in Hong Kong SAR; and Mshop to meet the insurance solutions needs of SMEs.
- Partnership with Fuson, a Hong Kong-based travel agency in which CLPS owns minority stake. It has officially opened for business to seize the opportunity of tourism recovery, which will enable CLPS generate positive return on investment.
To develop world-class and highly-skilled IT talents, we signed school-enterprise collaboration agreements with:
- The Australian National University, a renowned public research university located in Canberra, Australia;
- Educare Global Academy Pte. Ltd., a private education institution in Singapore.
These partnerships further broaden the scope of our Talent Creation Program and overseas business footprint.
CLPS has optimized and fine-tuned the Company’s operational structure.
Mr. Srustijeet Mishra, CEO of CLPS SEA, was appointed to concurrently serve as the CEO of CLPS California, a wholly-owned subsidiary of the Company, to further integrate the development and management of our international business activity, particularly in the U.S. and Southeast Asia region.
Our upgraded content delivery network allowed us to achieve improved operational performance across the globe, such as in Vietnam, a recently opened office that supports our business in Southeast Asia and other regions due to the increased demand for IT services.
Further, our delivery centers across Mainland China including Shanghai, Xi’an, Chengdu, and Hangzhou, among other key cities have moved to strategic locations to better serve our clients.
4. Financial Performance
As highlighted on our financial results for the fiscal year 2022:
- Our revenue increased steadily, reaching a record high of $152 million, a year-over-year increase of 20.6%.
- Non-GAAP operating income was $14.6 million, a year-over-year increase of 8.0%.
- Our net cash provided by operating activities turned positive, building the foundation for our future development in order to expand our market share in the IT services industry.
We kicked off 2023 on a high note with CLPS’s first special cash dividend payout. It was a decision made by the Board to thank you, our shareholders, for your support and trust in us, and to reaffirm our confidence in the Company’s business strength and development prospects. The Board intends to declare dividend in the future depending on the Company’s financial performance and results of operation.
Looking ahead, it will always be our top priority to strive for excellence to achieve our goals. We are committed to improving our business performance and engagement by implementing our dual-engine strategy, accelerating our expansion into global market, boosting product competitiveness, attracting more clients, and enhancing operational efficiency. I look forward to another progressive year at CLPS as we strive to deliver long-term shareholder value.
Xiao Feng Yang
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, Xi’an, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan. The remaining nine global centers are located in Hong Kong SAR, USA, Japan, Singapore, Australia, Malaysia, India, the Philippines and Vietnam. For further information regarding the Company, please visit: https://ir.clpsglobal.com/, or follow CLPS on Facebook, LinkedIn, Twitter, and YouTube.
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