Summary - CLPS CEO Raymond Lin on 1H 2021 Results 💎 - Earnings Call Transcript
$CLPS - has been the most manipulative China oversold so far. The best of China.
Value. Grow. And chart...👇
______________
Last ER / H
Summary, Mar. 05, 2021👇
Summary, Mar. 05, 2021👇
Summary - CLPS' (CLPS) CEO Raymond Lin on 1H 2021 Results - Earnings Call Transcript
Mar. 05, 2021
income also increased by 115%, which results to the US$0.3 basic and diluted earnings per share as compared with US$0.17 basic and diluted earnings per share on the same period of the last year. During this period, we have been aggressive in the global expansion strategy implementation, which contributed in achieving our growth. It was attested by the significant 54% increase in revenue generated outside Mainland China.
Latest, our presence in the automotive industry have deepened with partnership with one of the biggest automobile manufacturer in Shanghai and China. We utilized the big data technology in the project to be used in driver lessons, new energy cost and navigation system. In terms of the investments, we diversified our business growth. We venture in the robotics technology in efforts in penetrating in the chip industry.
We also invest in Guangdong Zhichuang company to explore our business opportunity in telecom industry and social media framework area. And we acquired the remaining 20% ownership stake in the Ridik Singapore, and set up Singapore as our Southeast Asia headquarters. As a wholly-owned subsidiary, Ridik Singapore will enable us to fully integrate our business in Southeast Asia, which will further advance our global expansion.
Actually, our rapid growth and our ability to win new clients are actually driven by our competitive advantages. We maintain strategic engagement with well-known global clients in banking, in wealth management, in e-commerce and automotive industry. As mentioned by Rita just now, our CFO, we also have more than 3,300 world-class human capital base with bilingual or multilingual capability, of which majority of them has underwent our professional IT training programs.
________________
Gregozeski
Okay. Great. And then over the last few years, you’ve continued to grow in China, but also expand in the rest of Asia and the U.S. Do you have a target mix of where you want to be at for those different regions by the end of this fiscal year or even next fiscal year?
Rui Yang
Okay. Thanks a lot for your question. For the forecast of revenue distribution by geography, although we have been aggressive to be more visible in the overseas market financial and operation-wise, our business in the Mainland China still significantly contributes to our growth. But on the other hand, our global expansion strategy has been effectively implemented. For the first half of fiscal 2021, the revenue generated outside Mainland China has significantly increased by 53.9% to $6.6 million or 11.4% of the total revenue compared to 10.1% in the prior year period.
__________
William Gregozeski
Do you have any specific plans for the cash you just raised or even just generally, how you can use it to further growth?
Wilson Wong
+ $16 million.
Yes. In terms of the capital that we raised, we will hedge to our global expansion strategies that we will work along with our well-known global clients, our management, e-commerce, automotive investment clients. And also, we will invest, as Raymond mentioned, continuing in the training of IT talent. And also that we will grow outside as Rita has mentioned, out of Mainland China. We will continue our global expansion in the international market, like I’m based in Singapore, so that with the recent acquisition of the remaining 20% actually stake in Ridik.
So that will allow us to penetrate the IT services market in the neighboring country, in the Southeast and Asia Pacific regions. So on top of that, we also plan to rollout for business in the U.S. As you know that we’ve just got two new contracts from our existing client, which they are all based – headquartered in the U.S. So moving forward, we are also developing more businesses and exposure in the U.S. market. So that – the capital that – or cash that we raised that is the lever that we are concentrating and moving ahead and spending in the international market.
_____________
Congratulations on your new contracts from client in the U.S. However, I would like to know if you can disclose the name of this client. That’s all my question.
Raymond Lin
Okay. Can I answer your questions? Thank you for your questions. Due to the confidence agreement between the CLPS and the client, we are only requested to disclose certain information, such as those that we mentioned in the press release. It’s also to protect our long-term business relationship with them, which will enable us for our continued growth. And in return, we will bring more value to our shareholders.
In addition, our U.S. counsel have thoroughly reviewed in – the contents of the contract and of the press release to ensure that we follow the terms and conditions strictly. We have been aggressive with our global expansion strategy, and we are looking forward to gain more business opportunities. From the overseas market, as a takeaway, major priority is to inform our shareholders and market of all significant news about the company.
_____________
Congratulations on your outstanding financial performance. However, your market has spread outside the Mainland China. What’s the strategy behind the global expansion?
Wilson Wong
So as mentioned earlier, in terms of our global strategies outside Mainland China, as you know that we already have acquired Ridik 100% in Singapore as I’m also based in Singapore, and I can attest that there is a strong demand for our IT services in Singapore as well in this region. So with the reason – 100% of the remaining 20% share that we acquired in Ridik, so that will help us to penetrate the IT services and focus our developing – investment development in the nearby countries in the Southeast Asia and Asia Pacific.
And in addition, we also grow our business in the U.S. as mentioned earlier that we have recently got two new customers contract from our existing clients, which they are also based in the U.S. So that will give us a new, moving forward, opportunity to develop and deepen our business and exposure in the U.S. market. Last and but not least, we are pleased that our global expansion strategy is fundamentally sound, effective and is now going to begin to our financials as highlighted by our CFO. Thank you.
_______________
First, congratulations on the strong financial performance. And my question is, could you give more color on the economics of scale? How does it improve your operating efficiency? Thank you.
Rui Yang
Yes. As we expanded our business, our top line revenue also increased. We also needed to have more employees to support our growing business as reflected in our returns. On the other hand, with our extensive experience in IT services, our growing staff has been able to meet more demand from our clients as tested in decreased expense as a percentage of total revenue ratio. As a result, we generated a better bottom line, which will provide more value to our shareholders.
___________
My question is, what’s the reason for the adjusted non-GAAP net income gross forecast? Thank you.
Rui Yang
Okay. I will take this question. Thanks for your question. As a result of strong demand for IT services from our growing network of clients and enhanced operational efficiency, so we have adjusted our non-GAAP net income forecast for the fiscal year 2021 to 60% to 65% from 32% to 37%. Yes. That’s all. Thank you.
https://selectionnewyork.blogspot.com/2020/10/clps-selection-data-second-half-of.html
https://selectionnewyork.blogspot.com/2020/09/clps-blockchain.html
Among the best in cutting-edge business knowledge and solutions, CLPS also provides customizable solutions in automotive information systems in areas of:👇
https://www.clpsglobal.com/our-services/consulting-services/other-services/automobile/
CLPS is one of the largest credit card service providers in China.
https://www.clpsglobal.com/about-us-2/whats-next/
https://seekingalpha.com/article/4411946-clps-clps-ceo-raymond-lin-on-q1-2021-results-earnings-call-transcript
