SHANGHAI, May 28, 2019 /PRNewswire/ -- CLPS Incorporation (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.
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
About CLPS Incorporation
Headquartered in Shanghai, China, CLPS Incorporation (the "Company") (CLPS) is a global leading information technology ("IT"), consulting and solutions service provider focusing on the banking, insurance and financial sectors. The Company serves as an IT solutions provider to a growing network of clients in the global financial industry, including large financial institutions in the US, Europe, Australia and Hong Kong and their PRC-based IT centers. The Company maintains ten delivery and/or research & development centers to serve different customers in various geographic locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Chengdu, Guangzhou and Shenzhen. The remaining three global centers are located in Hong Kong, Singapore and Australia. 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, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by 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.
CLPS Incorporation CEO Office