SHANGHAI, Jan. 9, 2020 /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.
On behalf of the Board, I wish you a happy new year!
In 2019, global demand for financial IT services and solutions was fueled by growth in the fintech industry and advancements in the areas of artificial intelligence, blockchain, big data, and cloud applications. At the same time, there is still a shortage of professional IT talent in the above-mentioned areas.
We believe that such demand will continue to gain momentum in 2020. In response, CLPS continues to invest in resources, improve our performance, and drive technological and management innovation to achieve high quality development. With our comprehensive understanding of market needs in financial IT services and solutions in China and globally, we are committed to the strategy of continuously expanding into the international market, providing more clients with the professional IT services that CLPS has to offer. As a result, it enables us to further expand our market share, improve our brand influence, and achieve significant growth.
Let us look back at the highlights of the Company's performance in 2019 and our plans for 2020.
1. Client Base and Revenue Growth
CLPS has expanded its overseas and domestic client base in the financial services and IT industries, which covers global credit cards, banking, data analysis, business intelligence, and decision-making, among others. For the fiscal year 2019, CLPS's revenues increased by $16.0 million, or 32.7%, to $64.9 million from $48.9 million in the prior year period. Gross profit increased by $6.1 million, or 34.5%, to $23.8 million for the fiscal year 2019, from $17.7 million in the prior year period.
2. IT Innovation
We are dedicated to the research and applications of innovative technologies, including distributed application systems, cloud computing, micro services, open API, robotic process automation (RPA), blockchain, and big data. In the past year, we have applied RPA and big data technology to our internal human resources management and financial management systems, which significantly improved our operational efficiency. In addition, we deployed RPA to our clients, and we have received positive feedback on our technology. In 2020, we intend to apply more innovative technologies to our internal management systems to further reduce operational costs. The learnings derived from our internal implementations will then enable us to offer the technologies to our clients. In addition, we aim to optimize our capability in credit card services. Through our efforts, we will be able to improve our IT services efficiency, achieve client satisfaction, and attain high quality performance growth.
3. Management Excellence
We continue to optimize our internal enterprise resource planning (ERP) management system to provide timely and effective data for management decisions. CLPS Academy regularly provides professional training for both our management staff and our IT professionals to improve employee competency and sustain our high talent retention rate. We are also committed to our partnerships with universities including Shanghai Sanda University, the Shanghai Institute of Technology, and Shanghai Jian Qiao University. With our partners, we aim to further develop new financial IT talent by including financial IT courses in university curriculums and by deploying our CLPS Virtual Bank Training Platform. In 2020, we will continue to improve the function and efficiency of our ERP management system, develop more financial IT talent, enable more staff to receive technical and management training, and support the Company to achieve greater heights.
4. Business Expansion Strategy
The Company's overseas financial IT business expanded significantly in 2019. CLPS acquired 80% of the equity of RiDik Pte. Ltd. ("RiDik"), a Singapore-based IT services company, in September 2019, and completed the business integration of Infogain Pte. Ltd. ("Infogain") and RiDiK, our two subsidiaries in Southeast Asia, into CLPS Singapore, the Singapore division of CLPS. After the integration, CLPS Singapore is expected to achieve total revenue growth of over 200% year over year for fiscal year 2020. In 2020, we will continue to implement our international expansion strategy, which includes expanding the scale of our IT services business in the United States to better cater to our North America clients. We also plan to establish a global delivery center in India, which will work closely with our delivery centers in China to provide quality IT services to our overseas clients. In addition, we will increase our investment to penetrate the Japan IT services market to broaden our Asia market presence.
In conclusion, CLPS remains in line with its growth and development strategies to improve our overall competitiveness and bring value to our shareholders. On behalf of the CLPS family, I extend my gratitude to our shareholders' unwavering support and confidence in the Company.
With sincerity and determination,
Paul Xiao Feng Yang
Chairman and President
About CLPS Incorporation
Headquartered in Shanghai, China, 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, and Hong Kong SAR, and their PRC-based IT centers. The Company maintains 18 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, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Suzhou. The remaining eight global centers are located in Hong Kong SAR, USA, UK, Japan, Singapore, Malaysia, Australia, and India. For further information regarding the Company, please visit: http://ir.clpsglobal.com/.
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.