CLPS Incorporation Announces Latest Business Expansion and Presence in Asia Pacific Region

Rhea-AI Summary

CLPS Incorporation (Nasdaq: CLPS) announced significant updates regarding its global expansion strategy on April 15, 2021. The company established a subsidiary in the Philippines, enhancing its presence in Southeast Asia, where it reported a 53.9% increase in overseas revenue to $6.6 million for the six months ended December 31, 2020. Amidst the COVID-19 pandemic, CLPS maintained operational stability while providing IT services in the fintech sector. Additionally, the company is pursuing mergers and acquisitions to support business growth.

Positive

• 53.9% increase in overseas revenue to $6.6 million for six months ending December 31, 2020.
• Expansion into the Philippines strengthens Southeast Asia presence.
• Initiation of IoT services for vehicle monitoring in Japan.
• Continued operational stability in fintech services during COVID-19.

Negative

• None.

HONG KONG, April 15, 2021 /PRNewswire/ -- CLPS Incorporation (Nasdaq: CLPS) ("CLPS" or "the Company"), today provided an update on the latest implementation of its global expansion strategy. Its expansion pipeline includes the establishment of a subsidiary in the Philippines, boosting the business in Southeast Asia, and pursuing overseas merger and acquisition.

For the six months ended December 31, 2020, CLPS reported that its revenue generated outside of Mainland China increased by 53.9% to $6.6 million compared to the prior year period. This only shows the Company's aggressive efforts in advancing its business presence in the overseas market with focus on Asia Pacific, particularly in the Southeast Asia region. 

The fintech industry in Southeast Asia, such as in Singapore, has been rapidly growing. Most banks are heavily invested in digital transformation, including the migration of traditional services to mobile platform. Mr. Srustijeet Mishra, head of CLPS Southeast Asia Region ("CLPS SEA"), said, "Despite the COVID-19 pandemic and economic slowdown in Asia, CLPS SEA's business has continued to be operational. We have been working alongside with our clients in the banking and fintech industries for the IT system implementation and business process optimization. The service coverage includes customized development, testing and support of IT systems in core banking, wealth management, credit card, online lending, and online payment. We also implemented projects for the development and testing of mobile and web application, in addition to IT consulting services."

The Company's strategic business locations have provided a solid foundation to lay out its competitive advantage in the IT services industry. "Our strong and unified teams of IT professionals located in China and in India enable us to deliver high quality and industry standard IT services. I believe that this setup is a clear advantage that differentiates CLPS from other IT services players with only local operations in Southeast Asia," Mr. Mishra added.

Mr. Henry Li, Chief Operating Officer of CLPS, said, "The effectiveness of our global expansion strategy has further pushed us to pursue the overseas market. In fact, we recently started to provide Internet of Things (IoT) services for the development of a vehicle's intelligent monitoring system in Japan. On top of that, we also continue to expand our global network through mergers and acquisitions in China, Southeast Asia, and in the U.S. Our M&A efforts are focused on financially sound companies with business model similar or complementary to CLPS, which we expect to contribute in our business growth going forward."

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 20 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, Xi'an, Chengdu, Guangzhou, Shenzhen, Hangzhou, Suzhou, and Hainan. 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/, or follow CLPS on Facebook, LinkedIn, and Twitter.

Forward-Looking Statements

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.

Contact:

CLPS Incorporation
Rhon Galicha
Investor Relations Office 
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com

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SOURCE CLPS

FAQ

What was CLPS's overseas revenue increase reported on April 15, 2021?

CLPS reported a 53.9% increase in overseas revenue to $6.6 million for the six months ended December 31, 2020.

What new business strategy is CLPS implementing?

CLPS is establishing a subsidiary in the Philippines as part of its global expansion strategy.

How has the COVID-19 pandemic affected CLPS operations?

Despite the pandemic, CLPS maintained operational stability while providing IT services in the fintech industry.

What services is CLPS providing in Japan?

CLPS has started offering Internet of Things (IoT) services for the development of a vehicle's intelligent monitoring system in Japan.

Where is CLPS focusing its mergers and acquisitions efforts?

CLPS is pursuing mergers and acquisitions in China, Southeast Asia, and the U.S. with financially sound companies.