CLPS Incorporation Signs Framework Agreement with an Emerging Automotive Brand to Provide End-to-End IT Services for its Upcoming Electric Vehicles
CLPS Incorporation (Nasdaq: CLPS) announced a framework agreement through its subsidiary, JAJI Co., Ltd., to provide IT consulting services for a new high-end electric vehicle brand in China. The collaboration will enhance IT components for the Client's EVs, including smart-driving systems. For fiscal year ending June 30, 2021, CLPS's automotive revenue rose 132% to $8.5 million, now making up 6.7% of total revenue. This partnership is projected to bolster CLPS's growth in the automotive sector, leveraging their dual-engine strategy for market expansion.
- Revenue from the automotive sector increased by 132% year-over-year, from $3.6 million to $8.5 million.
- Automotive revenue now represents 6.7% of total revenue, up from 4.1% in the prior year.
- The partnership establishes CLPS as a key player in the emerging electric vehicle market.
- None.
HONG KONG, Oct. 28, 2021 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced that, through its majority-owned subsidiary, JAJI (Shanghai) Co., Ltd., it has entered into a framework agreement (the "Agreement") with an emerging high-end intelligent pure electric car brand in China (the "Client") to provide end-to-end IT consulting services for its newly launched electric vehicles (EV).
The Client is a new player in the electric vehicle market founded by a leading Chinese state-owned automotive company. It is committed to developing high-end intelligent electric sedan and SUV, of which its flagship model is scheduled for mass-production by the end of 2021. In this cooperation, CLPS will provide a full range of IT consulting services involving technology-powered components and applications for the Client's first and succeeding EVs, including but not limited to electric power system, smart-driving system, intelligent operating system and car owner community operation, among others. In addition, both parties have agreed to jointly promote revolutionized driving experience in the pinnacle of intelligent era.
Mr. Henry Li, Chief Operating Officer of CLPS, said, "Automotive is one of our four key business areas which has shown significant improvement in the recent years both in business development and financial perspectives. This cooperation is a breakthrough for us in the domestic automotive market, a reflection of our success in pursuing opportunities in the intelligent vehicle market. Moreover, our cooperation with the Client will enable further integration of our core services into the automotive intelligent industry's R&D and manufacturing, as well as to open more doors for innovative applications in the aforementioned sector."
Mr. Raymond Lin, Chief Executive Officer of CLPS, commented, "Our cooperation with the Client will serve as the main driver of our future growth in automotive area. We adhere to our dual-engine growth strategy through continued market penetration to offer IT consulting services across sectors such as in automotive, while constantly innovating our IT solutions built up with cutting-edge technologies. Likewise, we will leverage our global footprint particularly in Asia market to explore such opportunity."
For the fiscal year ended June 30, 2021, CLPS' revenue from automotive area increased by
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 19 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, and Hainan. The remaining eight global centers are located in Hong Kong SAR, USA, Japan, Singapore, Malaysia, Australia, India, and the Philippines. For further information regarding the Company, please visit: https://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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