CLPS Incorporation Reports Financial Results for the Second Half and Full Year of Fiscal 2020
CLPS Incorporation (Nasdaq: CLPS) reported strong financial results for the six months and the full year ending June 30, 2020. Revenues increased by 37.2% to $46.8 million in the second half, and by 37.7% to $89.4 million for the full year. Gross profit rose 25.1% to $15.7 million in the second half and 31.0% to $31.1 million for the year. Net income for the second half was $0.6 million, reversing a loss of $1.8 million last year. Non-GAAP net income grew 200.9% to $3.5 million in the second half. The company expects a sales growth of 30% to 35% for fiscal 2021.
- Revenues increased by 37.2% to $46.8 million in the second half of fiscal 2020.
- Net income for the second half was $0.6 million, compared to a net loss of $1.8 million last year.
- Non-GAAP net income increased by 200.9% to $3.5 million in the second half.
- The company expects total sales growth of approximately 30% to 35% in fiscal 2021.
- Gross margin decreased to 33.6% from 36.9% in the second half due to increased epidemic prevention costs.
- Revenue from customized IT solution services decreased by 45.4% in the second half.
HONG KONG, Oct. 22, 2020 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced its financial results for the six months ended June 30, 2020 and full year of fiscal year 2020.
Second Half of Fiscal 2020 Highlights (all results compared to the six months ended June 30, 2019)
- Revenues increased by
37.2% to$46.8 million from$34.1 million . - Gross profit increased by
25.1% to$15.7 million from$12.6 million . - Net income attributable to CLPS Incorporation's shareholders was
$0.6 million , or$0.04 basic and diluted earnings per share, compared to net loss attributable to CLPS Incorporation's shareholders of$1.8 million , or$0.13 basic and diluted losses per share. - Non-GAAP net income attributable to CLPS Incorporation's shareholders1 increased by
200.9% to$3.5 million , or$0.23 basic and diluted earnings per share, compared to$1.2 million , or$0.08 basic and diluted earnings per share (See Use of Non-GAAP Financial Measures below for a discussion of such measures as used in this press release).
Fiscal Year 2020 Highlights (all results compared to the twelve months ended June 30, 2019)
- Revenues increased by
37.7% to$89.4 million from$64.9 million . - Gross profit increased by
31.0% to$31.1 million from$23.8 million . - Net income attributable to CLPS Incorporation's shareholders was
$2.9 million , or$0.20 basic and diluted earnings per share, compared to net loss attributable to CLPS Incorporation's shareholders of$3.3 million , or$0.24 basic and diluted losses per share. - Non-GAAP net income attributable to CLPS Incorporation's shareholders1 increased by
85.3% to$6.9 million , or$0.47 basic and diluted earnings per share, compared to$3.7 million , or$0.27 basic and diluted earnings per share (See Use of Non-GAAP Financial Measures below for a discussion of such measures as used in this press release).
Mr. Raymond Lin, Co-Founder and Chief Executive Officer of CLPS, commented, "As the disruption from the COVID-19 pandemic persists, the health and safety of our employees and their families, as well as our customers and business partners, have been and will continue to be our top priority. Despite the current circumstances, we are pleased to see stable growth in the second half and full year of fiscal 2020 in both our international and local markets. This year, we acquired Ridik to further expand our business in the Southeast Asia; in addition, we opened CLPS California, which will support our U.S. market. Locally, we have invested in Shenzhen Huaqin Robotics and Guangdong Zhichuang Software Technology to further enrich our business services and to provide better service to our clients."
"Cultivating young talent has always been important to us. We are currently cooperating with Technological and Higher Education Institute of Hong Kong and its information technology program to maintain a robust applicant pool and recruit young talent to join our company."
"Going forward, we will continue to expand our business and grow our market share, both internationally and locally. We hope to achieve sustainable, high-quality growth for CLPS as we create long-term value for our shareholders."
Ms. Rui Yang, acting Chief Financial Officer of CLPS, commented, "During the second half and full year of fiscal 2020, we are pleased to announce that our revenue increased by double digits year-over-year, by
Second Half and Fiscal Year 2020 Financial Results
Revenues
In the second half of fiscal 2020, revenues increased by
The number of clients increased by 53, or
Revenues by Service
- Revenue from IT consulting services increased by
$13.5 million , or42.3% , to$45.5 million and accounted for97.2% of total revenue in the second half of fiscal 2020, up from$32.0 million , or93.7% of total revenue, in the prior year period. For the year ended June 30, 2020, revenue from IT consulting services increased by$25.3 million , or41.1% , to$87.1 million and accounted for97.5% of total revenue, up from$61.8 million , or95.1% of total revenue, in the prior year period. The increase was due to increased demand for the Company's IT consulting service from banks and other financial institutions, primarily from existing clients. For the twelve months ended June 30, 2020 and 2019,40.0% and47.5% of IT consulting services revenue were from international banks, respectively. - Revenue from customized IT solution services decreased by
$1.0 million , or45.4% , to$1.1 million in the second half of fiscal 2020 from$2.1 million . Revenue from customized IT solution services decreased by$1.2 million , or39.3% , to$1.8 million for the year ended June 30, 2020, from$3.0 million in the same period of the previous year. The decrease was primarily due to decreasing demand from existing clients. - Revenue from other services increased to
$0.2 million in the second half of fiscal year 2020 from$0.04 million in the prior year period. Revenue from other services increased by$0.3 million , or219.0% , to$0.4 million for the year ended June 30, 2020, from$0.1 million in the prior year period.
Revenues by Operational Areas
- Revenue from banking area increased by
$11.4 million , or34.3% to$44.5 million for the year ended June 30, 2020, from$33.1 million in the prior year period. Revenue from banking area accounted for49.8% and51.2% of total revenues in fiscal 2020 and fiscal 2019, respectively. - Revenue from wealth management area increased by
$4.7 million , or32.6% to$19.2 million for the year ended June 30, 2020, from$14.5 million in the prior year period. Revenue from wealth management area accounted for21.5% and22.4% of total revenues in fiscal 2020 and fiscal 2019, respectively. - Revenue from e-Commerce area increased by
$2.4 million , or27.8% to$11.1 million for the year ended June 30, 2020, from$8.7 million in the prior year period. Revenue from e-Commerce area accounted for12.4% and13.4% of total revenues in fiscal 2020 and fiscal 2019, respectively. - Revenue from automotive area increased by
$1.6 million , or77.3% to$3.6 million for the year ended June 30, 2020, from$2.0 million in the prior year period. Revenue from automotive area accounted for4.1% and3.2% of total revenues in fiscal 2020 and fiscal 2019, respectively.
Revenues by Geography
Revenue generated outside of mainland China increased by
Gross Profit and Gross Margin
Gross profit increased by
Gross profit increased by
Operating Expenses
Selling and marketing expenses increased by
Research and development expenses increased by
General and administrative expenses increased by
General and administrative expenses decreased by
Operating Income/Loss
Operating income increased by
Operating income increased by
Other Income and Expenses
Total other income, net of other expenses increased to
Total other income, net of other expenses increased to
Provision (Benefits) for Income Taxes
Provision for income taxes increased by
Provision for income taxes was
Net Income/Loss and EPS
Net income for the second half of fiscal 2020 increased by
Net income for the year ended June 30, 2020 increased by
Cash Flow
As of June 30, 2020, the Company had cash and cash equivalents of
Net cash provided by operating activities was approximately
Financial Outlook
For fiscal year 2021, the Company expects, absent material acquisitions or non-recurring transactions, total sales growth in the range of approximately
This forecast reflects the Company's current and preliminary views, which are subject to change and are subject to risks and uncertainties, including, but not limited to, potential accounting adjustments attributable to Ridik Pte. Ltd. acquisition as well as various risks and uncertainties facing the Company's business and operations as identified in its public filings.
Exchange Rate
The balance sheet amounts with the exception of equity as of June 30, 2020, were translated at 7.0651 RMB to 1.00 USD compared to 6.8650 RMB to 1.00 USD as of June 30, 2019. The equity accounts were stated at their historical rate. The average translation rates applied to the income statements accounts for the periods ended June 30, 2020 and 2019 were 7.0309 RMB to 1.00 USD and 6.8211 RMB to 1.00 USD, respectively. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S, dollar terms without giving effect to any underlying change in our business or results of operation.
Conference Call Information
The Company will hold a conference call at 8:30 am ET on October 23, 2020 to discuss second half and full year of fiscal 2020 results. Listeners may access the call by dialing:
U.S. Toll-Free: | +1-888-394-8218 |
U.S. Local /International: | +1-323-794-2588 |
Mainland China: | 400 120 8590 |
Hong Kong: | 800 961 384 |
To access the live webcast of the conference call, please visit this link. The live and archived webcast will also be available through the Company's investor relations website at http://ir.clpsglobal.com.
A replay of the call will be available through November 6, 2020 by dialing:
U.S. Toll-Free: | +1-844-512-2921 |
U.S. Local/International: | +1-412-317-6671 |
Passcode: | 1612001 |
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 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, Southeast Asia and Hong Kong, 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/, 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, 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 financial and operational performance in the second half and full year of fiscal 2020, its expectations of the Company's future performance, its preliminary outlook and guidance offered in this presentation, 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.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. The Company uses non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to CLPS Incorporation's shareholders, and basic and diluted non-GAAP net income per share, which are non-GAAP financial measures. Non-GAAP operating income is operating income excluding share-based compensation expenses. Non-GAAP operating margin is non-GAAP operating income as a percentage of revenues. Non-GAAP net income attributable to CLPS Incorporation's shareholders is net income attributable to CLPS Incorporation's shareholders excluding share-based compensation expenses. Basic and diluted non-GAAP net income per share is non-GAAP net income attributable to common shareholders divided by weighted average number of shares used in the calculation of basic and diluted net income per share. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation expenses clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the effect of non-cash share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP and GAAP Results" near the end of this release.
Contact:
CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
1 Non-GAAP net income attributable to CLPS Incorporation's shareholders is a non-GAAP financial measure, which is defined as net income attributable to the Company excluding share-based compensation expenses. Please refer to the section titled "Reconciliation of GAAP and Non-GAAP Results" for details. |
2 Non-GAAP general and administrative expenses is a non-GAAP financial measure, which is defined as general and administrative expenses excluding share-based compensation expenses. Please refer to the section titled "Reconciliation of GAAP and Non-GAAP Results" for details. |
3 Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. Please refer to the section titled "Reconciliation of GAAP and Non-GAAP Results" for details. |
CLPS INCORPORATION | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Amounts in U.S. dollars ("$"), except for number of shares) | |||||||||
As of June 30, | As of December 31, | ||||||||
2020 (Audited) | 2019 (Unaudited) | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 12,652,120 | $ | 11,234,260 | |||||
Short-term investments | 636,934 | - | |||||||
Accounts receivable, net | 25,753,856 | 20,857,441 | |||||||
Escrow receivable | - | 200,000 | |||||||
Prepayments, deposits and other assets, net | 1,280,967 | 1,998,499 | |||||||
Prepaid income tax | 15,780 | 524,352 | |||||||
Amounts due from related parties | 169,185 | 252,706 | |||||||
Total Current Assets | 40,508,842 | 35,067,258 | |||||||
Property and equipment, net | 452,472 | 471,886 | |||||||
Intangible assets, net | 1,144,579 | 1,240,490 | |||||||
Goodwill | 2,118,700 | 2,184,001 | |||||||
Long-term investments | 680,131 | 1,102,691 | |||||||
Prepayments, deposits and other assets, net | 244,387 | 220,661 | |||||||
Deferred tax assets, net | 203,247 | 251,912 | |||||||
Total Assets | $ | 45,352,358 | $ | 40,538,899 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Current liabilities | |||||||||
Short-term bank loans | $ | 2,161,239 | $ | 802,514 | |||||
Accounts payable and other current liabilities | 489,043 | 1,006,896 | |||||||
Tax payables | 1,426,614 | 1,178,472 | |||||||
Contract liabilities | 755,178 | 1,241,706 | |||||||
Salaries and benefits payable | 11,522,268 | 10,789,713 | |||||||
Total Current Liabilities | 16,354,342 | 15,019,301 | |||||||
Long-term bank loans | 22,554 | - | |||||||
Deferred tax liabilities | 163,163 | 192,127 | |||||||
Unrecognized tax benefits | 194,939 | - | |||||||
TOTAL LIABILITIES | 16,734,998 | 15,211,428 | |||||||
Commitments and Contingencies | |||||||||
Shareholders' Equity | |||||||||
Common stock, | 1,593 | 1,425 | |||||||
Additional paid-in capital | 28,586,048 | 25,648,785 | |||||||
Statutory reserves | 2,803,811 | 2,331,138 | |||||||
Retained earnings | (2,680,143) | (2,776,767) | |||||||
Accumulated other comprehensive loss | (1,362,665) | (960,744) | |||||||
Total CLPS Incorporation's Shareholders' Equity | 27,348,644 | 24,243,837 | |||||||
Non-controlling Interests | 1,268,716 | 1,083,634 | |||||||
Total Shareholders' Equity | 28,617,360 | 25,327,471 | |||||||
Total Liabilities and Shareholders' Equity | $ | 45,352,358 | $ | 40,538,899 | |||||
* The shares and per share data are presented on a retroactive basis to reflect the nominal share issuance. | |||||||||
CLPS INCORPORATION | |||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||
(Amounts in U.S. dollars ("$"), except for number of shares) | |||||||||
For the six months ended June 30, | |||||||||
2020 | 2019 | ||||||||
Revenues | $ | 46,847,534 | $ | 34,137,189 | |||||
Less: Cost of revenues (note 1) | (31,104,457) | (21,552,693) | |||||||
Gross profit | 15,743,077 | 12,584,496 | |||||||
Operating expenses: | |||||||||
Selling and marketing expenses (note 1) | 1,655,650 | 1,206,153 | |||||||
Research and development expenses | 5,416,455 | 4,939,522 | |||||||
General and administrative expenses (note 1) | 8,446,840 | 8,223,126 | |||||||
Other operating expense | 187,496 | - | |||||||
Total operating expenses | 15,706,441 | 14,368,801 | |||||||
Income (loss) from operations | 36,636 | (1,784,305) | |||||||
Subsidies and other income, net | 1,163,956 | 156,352 | |||||||
Other expenses | (77,229) | (30,712) | |||||||
Income (loss) before income tax and share of loss in equity | 1,123,363 | (1,658,665) | |||||||
Provision (benefits) for income taxes | 446,601 | (56,283) | |||||||
Income (loss) before share of income in equity investees | 676,762 | (1,602,382) | |||||||
Share of income in equity investees, net of tax | 107,895 | (145,329) | |||||||
Net income (loss) | 784,657 | (1,747,711) | |||||||
Less: Net income attributable to non-controlling interests | 215,359 | 89,434 | |||||||
Net income (loss) attributable to CLPS Incorporation's | $ | 569,298 | $ | (1,837,145) | |||||
Other comprehensive loss (income) | |||||||||
Foreign currency translation loss | $ | (432,198) | $ | (58,964) | |||||
Less: foreign currency translation (loss) gain attributable to non- | (30,277) | 2,052 | |||||||
Other comprehensive loss attributable to CLPS | $ |
(401,921) | $ |
(61,016) | |||||
Comprehensive income (loss) attributable to | |||||||||
CLPS Incorporation shareholders | $ | 167,377 | $ | (1,898,161) | |||||
Non-controlling interests | 184,562 | 1 | 91,486 | ||||||
$ | 351,939 | $ | (1,806,675) | ||||||
Basic earnings (loss) per common share* | $ | 0.04 | $ | (0.13) | |||||
Weighted average number of share outstanding – basic | 15,169,655 | 13,889,460 | |||||||
Diluted earnings (loss) per common share* | $ | 0.04 | $ | (0.13) | |||||
Weighted average number of share outstanding – diluted (note 2) | 15,212,010 | 13,889,460 | |||||||
Note: | |||||||||
(1) Includes share-based compensation expenses as follows: | 9,042 | 9,472 | |||||||
Selling and marketing expenses | 181,257 | 46,100 | |||||||
General and administrative expenses | 2,747,132 | 2,946,803 | |||||||
(2) All dilutive potential common shares had anti-dilutive impact and were excluded in computation of diluted | |||||||||
* The shares and per share data are presented on a retroactive basis to reflect the nominal share issuance. | |||||||||
CLPS INCORPORATION | ||||||||
RECONCILIATION OF NON-GAAP AND GAAP RESULTS (Amounts in U.S. dollars ("$"), except for number of shares) | ||||||||
For the six months ended | ||||||||
June 30, | ||||||||
2020 | 2019 | |||||||
Cost of revenues | $ | (31,104,457) | $ | (21,552,693) | ||||
Less: share-based compensation expenses | 9,042 | 9,472 | ||||||
Non-GAAP cost of revenues | $ | (31,095,415) | $ | (21,543,221) | ||||
Selling and marketing expenses | $ | 1,655,650 | $ | 1,206,153 | ||||
Less: share-based compensation expenses | 181,257 | 46,100 | ||||||
Non-GAAP selling and marketing expenses | $ | 1,474,393 | $ | 1,160,053 | ||||
General and administrative expenses | $ | 8,446,840 | $ | 8,223,126 | ||||
Less: share-based compensation expenses | 2,747,132 | 2,946,803 | ||||||
Non-GAAP general and administrative expenses | $ | 5,699,708 | $ | 5,276,323 | ||||
Operating income (loss) | $ | 36,636 | $ | (1,784,305) | ||||
Add: share-based compensation expenses | 2,937,431 | 3,002,375 | ||||||
Non-GAAP operating income | $ | 2,974,067 | $ | 1,218,070 | ||||
Operating margin | ( | |||||||
Add: share-based compensation expenses | ||||||||
Non-GAAP operating margin | ||||||||
Net income (loss) | $ | 784,657 | $ | (1,747,711) | ||||
Add: share-based compensation expenses | 2,937,431 | 3,002,375 | ||||||
Non-GAAP net income | $ | 3,722,088 | $ | 1,254,664 | ||||
Net income (loss) attributable to CLPS Incorporation's | $ | 569,298 | $ | (1,837,145) | ||||
Add: share-based compensation expenses | 2,937,431 | 3,002,375 | ||||||
Non-GAAP net income attributable to CLPS | 3,506,729 | 1,165,230 | ||||||
$ | $ | |||||||
Weighted average number of share outstanding used | 15,169,655 | 13,889,460 | ||||||
GAAP basic earnings (loss) per common share | $ | 0.04 | $ | (0.13) | ||||
Add: share-based compensation expenses | 0.19 | 0.21 | ||||||
Non-GAAP basic earnings per common share | $ | 0.23 | $ | 0.08 | ||||
Weighted average number of share outstanding used | 15,212,010 | 13,889,460 | ||||||
Add: effect of dilutive securities (note 1) | - | 184,316 | ||||||
Weighted average number of share outstanding used | 15,212,010 | 14,073,776 | ||||||
GAAP diluted earnings (loss) per common share | $ | 0.04 | $ | (0.13) | ||||
Add: share-based compensation expenses | 0.19 | 0.21 | ||||||
Non-GAAP diluted earnings per common share | $ | 0.23 | $ | 0.08 | ||||
Note: | ||||||||
(1) All dilutive potential common shares had anti-dilutive impact and were excluded in computation of | ||||||||
GAAP diluted earnings per share in the period when loss was reported. | ||||||||
CLPS INCORPORATION | ||||||||
AUDITED CONSOLIDATED BALANCE SHEETS | ||||||||
(Amounts in U.S. dollars ("$"), except for number of shares) | ||||||||
As of June 30, | ||||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 12,652,120 | $ | 6,601,335 | ||||
Short-term investments | 636,934 | 1,791,697 | ||||||
Accounts receivable, net | 25,753,856 | 19,263,584 | ||||||
Escrow receivable | - | 200,000 | ||||||
Prepayments, deposits and other assets, net | 1,280,967 | 1,028,154 | ||||||
Prepaid income tax | 15,780 | 630,790 | ||||||
Amounts due from related parties | 169,185 | 230,540 | ||||||
Total Current Assets | 40,508,842 | 29,746,100 | ||||||
Property and equipment, net | 452,472 | 566,591 | ||||||
Intangible assets, net | 1,144,579 | 427,769 | ||||||
Goodwill | 2,118,700 | 447,790 | ||||||
Long-term investments | 680,131 | 914,006 | ||||||
Prepayments, deposits and other assets, net | 244,387 | 222,507 | ||||||
Deferred tax assets, net | 203,247 | 338,221 | ||||||
Total Assets | $ | 45,352,358 | $ | 32,662,984 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Short-term bank loans | $ | 2,161,239 | $ | 2,184,996 | ||||
Accounts payable and other current liabilities | 489,043 | 196,832 | ||||||
Tax payables | 1,426,614 | 915,629 | ||||||
Deferred subsidies | - | 109,250 | ||||||
Deferred revenues | - | 124,192 | ||||||
Contract liabilities | 755,178 | - | ||||||
Salaries and benefits payable | 11,522,268 | 7,735,487 | ||||||
Total Current Liabilities | 16,354,342 | 11,266,386 | ||||||
Long-term bank loans | 22,554 | - | ||||||
Deferred tax liabilities | 163,163 | - | ||||||
Unrecognized tax benefits | 194,939 | - | ||||||
TOTAL LIABILITIES | 16,734,998 | 11,266,386 | ||||||
Commitments and Contingencies | ||||||||
Shareholders' Equity | ||||||||
Common stock, | 1,593 | 1,391 | ||||||
Additional paid-in capital | 28,586,048 | 24,276,622 | ||||||
Statutory reserves | 2,803,811 | 1,833,802 | ||||||
Retained earnings | （2,680,143) | (4,509,729) | ||||||
Accumulated other comprehensive loss | （1,362,665) | (813,650) | ||||||
Total CLPS Incorporation's Shareholders' Equity | 27,348,644 | 20,788,436 | ||||||
Non-controlling Interests | 1,268,716 | 608,162 | ||||||
Total Shareholders' Equity | 28,617,360 | 21,396,598 | ||||||
Total Liabilities and Shareholders' Equity | $ | 45,352,358 | $ | 32,662,984 | ||||
* The shares and per share data are presented on a retroactive basis to reflect the nominal share issuance. | ||||||||
CLPS INCORPORATION | ||||||||
AUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Amounts in U.S. dollars ("$"), except for number of shares) | ||||||||
For the years ended June 30, | ||||||||
2020 | 2019 | |||||||
Revenues | $ | 89,415,798 | $ | 64,932,937 | ||||
Less: Cost of revenues (note 1) | (58,296,097) | (41,178,356) | ||||||
Gross profit | 31,119,701 | 23,754,581 | ||||||
Operating expenses: | ||||||||
Selling and marketing expenses (note 1) | 3,059,877 | 2,179,029 | ||||||
Research and development expenses | 10,436,975 | 7,978,883 | ||||||
General and administrative expenses (note 1) | 16,343,936 | 17,384,393 | ||||||
Total operating expenses | 29,840,788 | 27,542,305 | ||||||
Income (loss) from operations | 1,278,913 | (3,787,724) | ||||||
Subsidies and other income, net | 2,535,868 | 779,508 | ||||||
Other expenses | (107,322) | (92,429) | ||||||
Income (loss) before income tax and share of income (loss) in | 3,707,459 | (3,100,645) | ||||||
Provision for income taxes | 835,444 | 186,615 | ||||||
Income (loss) before share of income (loss) in equity investees | 2,872,015 | (3,287,260) | ||||||
Share of income (loss) in equity investees, net of tax | 207,363 | (145,329) | ||||||
Net income (loss) | 3,079,378 | (3,432,589) | ||||||
Less: Net income (loss) attributable to non-controlling interests | 141,139 | (162,813) | ||||||
Net income (loss) attributable to CLPS Incorporation's | $ | 2,938,239 | $ | (3,269,776) | ||||
Other comprehensive loss | ||||||||
Foreign currency translation loss | $ | (571,943) | $ | (429,348) | ||||
Less: foreign currency translation loss attributable to non- | (22,928) | (17,375) | ||||||
Other comprehensive loss attributable to CLPS | $ | (549,015) | $ | (411,973) | ||||
Comprehensive income (loss) attributable to | ||||||||
CLPS Incorporation shareholders | $ | 2,389,224 | $ | (3,681,749) | ||||
Non-controlling interests | 118,211 | (180,188) | ||||||
$ | 2,507,435 | $ | (3,861,937) | |||||
Basic earnings (loss) per common share* | $ | 0.20 | $ | (0.24) | ||||
Weighted average number of share outstanding – basic | 14,689,224 | 13,843,764 | ||||||
Diluted earnings (loss) per common share* | $ | 0.20 | $ | (0.24) | ||||
Weighted average number of share outstanding – diluted (note 2) | 14,692,299 | 13,843,764 | ||||||
Note: | ||||||||
(1) Includes share-based compensation expenses as follows: | 14,110 |
9,472 | ||||||
Selling and marketing expenses | 211,573 | 46,100 | ||||||
General and administrative expenses | 3,778,397 | 6,960,517 | ||||||
(2) All dilutive potential common shares had anti-dilutive impact and were excluded in computation of diluted | ||||||||
* The shares and per share data are presented on a retroactive basis to reflect the nominal share issuance. | ||||||||
CLPS INCORPORATION | ||||||||
RECONCILIATION OF NON-GAAP AND GAAP RESULTS (Amounts in U.S. dollars ("$"), except for number of shares) | ||||||||
For the years ended | ||||||||
June 30, | ||||||||
2020 | 2019 | |||||||
Cost of revenues | $ | (58,296,097) | $ | (41,178,356) | ||||
Less: share-based compensation expenses | 14,110 | 9,472 | ||||||
Non-GAAP cost of revenues | $ | (58,281,987) | $ | (41,168,884) | ||||
Selling and marketing expenses | $ | 3,059,877 | $ | 2,179,029 | ||||
Less: share-based compensation expenses | 211,573 | 46,100 | ||||||
Non-GAAP selling and marketing expenses | $ | 2,848,304 | $ | 2,132,929 | ||||
General and administrative expenses | $ | 16,343,936 | $ | 17,384,393 | ||||
Less: share-based compensation expenses | 3,778,397 | 6,960,517 | ||||||
Non-GAAP general and administrative expenses | $ | 12,565,539 | $ | 10,423,876 | ||||
Operating income (loss) | $ | 1,278,913 | $ | (3,787,724) | ||||
Add: share-based compensation expenses | 4,004,080 | 7,016,089 | ||||||
Non-GAAP operating income | $ | 5,282,993 | $ | 3,228,365 | ||||
Operating Margin | ( | |||||||
Add: share-based compensation expenses | ||||||||
Non-GAAP operating margin | ||||||||
Net income (loss) | $ | 3,079,378 | $ | (3,432,589) | ||||
Add: share-based compensation expenses | 4,004,080 | 7,016,089 | ||||||
Non-GAAP net income | $ | 7,083,458 | $ | 3,583,500 | ||||
Net income (loss) attributable to CLPS Incorporation's | $ | 2,938,239 | $ | (3,269,776) | ||||
Add: share-based compensation expenses | 4,004,080 | 7,016,089 | ||||||
Non-GAAP net income attributable to CLPS | $ | 6,942,319 | $ | 3,746,313 | ||||
Weighted average number of share outstanding used in | 14,689,224 | 13,843,764 | ||||||
GAAP basic earnings (loss) per common share | $ | 0.20 | $ | (0.24) | ||||
Add: share-based compensation expenses | 0.27 | 0.51 | ||||||
Non-GAAP basic earnings per common share | $ | 0.47 | $ | 0.27 | ||||
Weighted average number of share outstanding used in | 14,692,299 | 13,843,764 | ||||||
Add: effect of dilutive securities (note 1) | - | 194,824 | ||||||
Weighted average number of share outstanding used in | 14,692,299 | 14,038,588 | ||||||
GAAP diluted earnings (loss) per common share | $ | 0.20 | $ | (0.24) | ||||
Add: share-based compensation expenses | 0.27 | 0.51 | ||||||
Non-GAAP diluted earnings per common share | $ | 0.47 | $ | 0.27 | ||||
Note: | ||||||||
(1) All dilutive potential common shares had anti-dilutive impact and were excluded in computation of | ||||||||
GAAP diluted earnings per share in the period when loss was reported. | ||||||||
View original content:http://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-second-half-and-full-year-of-fiscal-2020-301158427.html
SOURCE CLPS
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