CLPS - Shareholders 2019
"CLPS Incorporation Releases Chairman's Letter to the Company's Shareholders"
--- 👉 year 2019 ---
CLPS Incorporation Releases Chairman's Letter to the Company's Shareholders
May 28, 2019.
SHANGHAI, May 28, 2019 -- CLPS Incorporation (Nasdaq: CLPS) ("CLPS" or "the Company"), a leading information technology consulting and solutions service provider focusing on the banking, insurance, and financial sectors in China and globally, today released a letter to shareholders from the Chairman of the Company's Board of Directors, the full text of which is provided below. All CLPS shareholders are encouraged to read it.
Dear Shareholders,
It is with great pleasure that we mark our first anniversary as a publicly traded company listed on the NASDAQ Stock Market. During this period, we have seen an increasing demand for financial IT services and solutions not only in China, but also globally, especially in the areas of artificial intelligence, blockchain, big data, and cloud applications. These technological innovations enable businesses to improve operational efficiency and reduce operating costs. In addition, demand for professional IT talent in these areas has increased. As we continue to grow, we are constantly improving our understanding of the financial IT services and solutions needs in China and globally, and working on meeting such needs.
At CLPS, we value our shareholders. I would like to share with you our summary of the Company's recent achievements and our vision of its future plans. In this first year since our listing on the NASDAQ Stock Market on May 24, 2018, CLPS has gained more attention and support from our existing clients, and we have been able to win new clients. The Company's management team participated in several investor conferences in the U.S. to share our story with the investor community. For the first half of fiscal year 2019, CLPS reported a 38.7% revenue increase year over year. In addition, we achieved significant growth in our client base and business deals, made further progress on our advanced technology research, gained positive feedback from our clients for our solution services, delivered thousands of hours of training to our IT professional and management staff, and improved our corporate governance. We also drove our global expansion strategy forward with mergers and acquisitions.
The details of our achievements are as follows:
1. Performance growth
During our first year as a publicly traded company, CLPS has significantly expanded its overseas and domestic client base in the financial and IT industries, including in applications such as global credit cards, banking, social media, online travel agency, and more. In the first half of fiscal 2019, CLPS's revenues increased by $8.6 million, or 38.7%, to $30.8 million from the prior year period, while gross profit increased by $2.3 million, or 25.8%, to $11.2 million.
CLPS continues to work on its future growth. CLPS has devoted resources for advanced technological innovation research and solution improvements, including blockchain, robotic process automation, cloud applications, big data, and credit card solutions.
The Company has also worked on making its internal operations more efficient. We constantly update our internal enterprise resource planning management system to provide an effective shared database, thereby improving the management's decision-making process. CLPS continues to provide professional training for management staff and IT professionals to improve employee competency and sustain high retention rates. To further develop new financial IT talent, we have cooperated with one of the top financial and economic universities in China, the Shanghai University of Finance and Economics, and implemented an online technical training platform based on blockchain. We have also cooperated with Shanghai Sanda University to deliver financial IT courses and deploy our CLPS Virtual Bank Training Platform. In addition, we have signed a memorandum of understanding with Ngee Ann Polytechnic to further develop financial IT talent in Singapore.
The Company's overseas financial IT business has been steadily expanding. CLPS successfully achieved its business goal of expanding to Southeast Asia through the acquisition of 80% of the equity stake of InfoGain Solutions Pte. Ltd. ("InfoGain") in Singapore. Furthermore, our presence in Hong Kong targets developing fintech businesses by providing them with competitive IT services.
CLPS continues to achieve its objective of sustained growth, improved operating efficiency and staff training, and steady overseas expansion. We intend to continue on this growth trajectory to enhance our overall competitiveness.
2. Transfer to Nasdaq Global Market; auditor changes
In November 2018, CLPS transferred to the NASDAQ Global Market from the NASDAQ Capital Market, joining companies with similarly global leadership and international reach.
In December 2018, CLPS appointed Ernst & Young Hua Ming LLP as the independent auditor of the Company to support us as we execute our international expansion strategy.
3. Recent merger and acquisition activities
Adhering to the principle of acquiring or merging with complementary resources and technological innovation, we successfully completed the acquisition of 80% of InfoGain's equity stake in Singapore last August.
In February 2019, we increased the Company's ownership stake in Lihong Financial Information Services Co., Ltd. to 36.8%. Both parties believe that the increased investment will result in a mutually beneficial ongoing business relationship.
In May 2019, we announced a strategic investment in Economic Modeling Information Technology Co., Ltd. ("EMIT") with a 30% ownership stake. The investment in EMIT allows us to expand our expertise in providing the financial industry with applications based on industry-leading technologies. EMIT's expertise in data modeling, deep learning and machine learning, and blockchain technology will benefit CLPS's future development by further expanding our client network. In addition, by offering applications of data mining, we will be able to extend our competitive edge in the banking, insurance and financial sectors.
We will continue to proceed strategically so that we can achieve common development goals and enter into win-win business relationships.
We will continue to grow in accordance with our goals, improve the overall strength of CLPS, enhance the value of CLPS, and focus on our shareholders. On behalf of the CLPS family, I extend our gratitude to our shareholders' unwavering support and confidence in our company.
With sincerity and determination,
Paul Xiao Feng Yang
Chairman and President
CLPS Incorporation
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J.P. Morgan’s Erdoes says it would be ‘irresponsible’ to not invest in China right now
Interesting article below concerning a Chinese privately owned company with operations solely in China listing on the NASDAQ prior to any listing in China or Hong Kong. When we dug into the financial information and compliance provided to the NASDAQ and SEC we found a Chinese company that did things the right way and thus were successful in listing on one of the best equity markets in the world. We advise our Chinese clients to hire professionals, not agents or brokers and then do things with a long-term goal and with purpose when seeking public listing on the U.S. equity markets. Gone are the days of shady reverse mergers pitched by agents and brokers who were paid well and then left the Chinese company with compliance issues and lawsuits. CLPS did things the right way and should be congratulated and emulated.
CLPS Incorporation Releases Chairman’s Letter to the Company’s Shareholders
Shanghai, China, June 20, 2018 (GLOBE NEWSWIRE) — CLPS Incorporation (the “Company”, “CLPS”, or Nasdaq:CLPS), a leading information technology (“IT”) consulting and solutions service provider focusing on the banking, insurance and financial sectors in China and globally, today released a letter to shareholders from the Chairman of the Company’s Board of Directors, the full text of which is provided below. All CLPS shareholders are encouraged to read it.
Dear Shareholders,
So far, this year has been extraordinary for our Company. In May 2018, we completed our initial public offering and listing of our securities on the Nasdaq Stock Market in the United States, marking a new era for CLPS Incorporation as a US-listed public company. Following this success, CLPS will continue to serve its existing client base and partners in the financial sector. The Company will also work on enhancing its original financial technology service offerings to expand to international markets, serve international customers, and provide innovative solutions and products to support more world-class technology customers. The successful listing of the Company’s securities on Nasdaq is a new beginning for our Company. CLPS will continue to rely on its strength and corporate strategy to develop, improve, innovate and expand to strengthen the Company and enhance shareholder value.
The financial IT services market continues to grow and expand in China and globally. The demand for these services is fueled by China’s economic growth and the need for continuous upgrade and maintenance of financial information technology. While the demand for financial IT services has increased, the availability of human capital to supply these services remains constrained. Financial institutions require in-depth understanding and knowledge of business processes driven and supported by IT. At the same time, large-scale institutions require highly trained personnel on a cost competitive basis to alleviate shortages of qualified personnel. We strive to meet this demand through and by means of our platform, the CLPS College, which recruits, trains, develops and retains employees. We have collaborated with more than 100 universities to leverage technical curriculum and provide professional certifications and we have developed a deep pool of talent to support complex IT projects. Our training programs provide industry expertise with up to date financial domain knowledge, technical development and skills in advanced programming languages and solutions. More than 70% of our personnel are dedicated to serving foreign financial institution clients. We have broad geographic reach to support customers. Currently, we have over 1600 IT professional staff in 11 offices.
Going forward, we intend to pursue the following objectives:
- Revenue growth – We intend to continue to grow revenue from both existing Chinese and global clients as well as target new Chinese and global clients, using our comprehensive service and solution offerings and deep domain expertise in the financial industry. Furthermore, we intend to continue to invest in a delivery platform that benefits both Chinese and global clients, capturing synergies between the Chinese and global markets to benefit both groups of clients. As part of these efforts, we intend to hire a U.S. based senior executive to head a wholly owned U.S. subsidiary to expand our business in North America before the end of the calendar year.
- Continuous Research and Development – We also intend to deepen our domain knowledge in the financial industry and relevant business-specific processes. As we continue to invest in research and development, we will focus on solutions that leverage our industry expertise to combine proprietary applications with industry and client specific needs.
- Investment in the Training and Development of Human Capital – We view our human capital base as an important competitive advantage. Our Talent Creation Program and Talent Development Program ensure our sustainable supply of financial IT talent resources. We intend to build on and leverage existing training programs and the CLPS College, to expand to other key cities and other industries (e.g., insurance), to tap deeper into CLPS’s talent pool. We expect to open additional training centers overseas to accommodate future demand for our services and solutions overseas.
- Improved Operational Efficiency – We anticipate developing operating efficiencies by leveraging historical and ongoing investments in infrastructure, research and development and human capital. Our business operates on a single, integrated platform, which allows for economies of scale across our business. We expect to continue to invest in our IT infrastructure as well as more advanced technologies, such as cloud computing, to enhance our scalability and increase efficiencies. We also expect our human capital initiatives to increase efficiencies in human capital allocation, increasing overall productivity.
- Strategic Alliances and Acquisitions – We intend to continue our pursuits of strategic alliances and acquisitions to enhance our industry-specific technology and service delivery capabilities by building on our track record of successfully acquiring and integrating targeted companies. In that respect, we intend to continue to identify and assess opportunities to enhance our abilities to serve our clients, with a particular focus on enhancing our technology capabilities, deepening our penetration into key clients, expanding our portfolio of service offerings and expanding our operations geographically.
As stated above, our recently completed IPO and Nasdaq listing provide a firm foundation for the Company’s future growth and value creation. We intend to deliver and execute upon our business objectives.
On behalf of the Company’s management team, I wish to express my deep appreciation and gratitude for your support and confidence in the Company With sincerity and determination,
Xiao Feng Yang Chairman,
President CLPS Incorporation
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