CLPS Incorporation Reports Financial Results for the First Half of Fiscal Year 2022
First Half of Fiscal 2022 Highlights (all results compared to the six months ended
- Revenues increased by 30.2% to
$75.9 million from$58.3 million . - Revenue from IT consulting services increased by 26.2% to
$72.0 million from$57.1 million . - Revenue from customized IT solution services increased by 208.1% to
$3.3 million from$1.1 million . - Revenue from e-Commerce area increased by 88.1% to
$14.4 million from$7.7 million . - Operating income increased by 54.2% to
$7.6 million from$4.9 million . - Net income increased by 31.2% to
$6.5 million from$4.9 million . - Net income attributable to
CLPS Incorporation's shareholders increased by 28.9% to$6.3 million from$4.9 million . - Non-GAAP net income attributable to
CLPS Incorporation's shareholders[1] increased by 37.4% to$8.7 million , compared to$6.4 million . Please refer to "Use of Non-GAAP Financial Measures" section for the discussion of such measures used in this press release. - Net cash provided by operating activities increased by 40.1% to
$13.2 million from$9.4 million .
Mr.
"We are keeping up with that momentum as we continuously implement our growth and innovation strategies. In particular, while we continuously grow organically, we are also pursuing new revenue streams by promoting our customized IT solution services. New products and business development advancements will be essential components to achieving this goal. It involves the development of a next generation loan trading software for overseas markets, blockchain-based solutions for financial institutions, CLPS SaaS platform-based credit card products, and digital yuan business solution which recently gained traction."
"We are further expanding our international presence and industry reach to new markets. We made significant progress in penetrating the overseas tourism industry by upgrading our client's digital infrastructure. Further, our goals for 2022 include attracting more clients and creating more business opportunities in
"Our achievements and progress only exemplify the strength of our business, and the strategies we plan to implement will continue to drive the success of the Company in the long run."
Ms.
First Half of Fiscal year 2022 Financial Results
Revenues
In the first half of fiscal 2022, revenues increased by
Revenues by Service
- Revenue from IT consulting services increased by
$14.9 million , or 26.2%, to$72.0 million in the first half of fiscal year 2022 from$57.1 million in the prior year period. Revenue from IT consulting services accounted for 94.8% of total revenue, compared to 97.8% in the prior year period. The increase was due to the increased demand from existing and new clients, and our improved service delivery capability. - Revenue from customized IT solution services increased by
$2.2 million , or 208.1%, to$3.3 million and accounted for 4.3% of total revenue in the first half of fiscal 2022 from$1.1 million , or 1.8% of total revenue. The increase was primarily due to our strengthened relationship and expanded business scope with our existing clients. - Revenue from other services increased by
$0.5 million , or 236.7%, to$0.7 million and accounted for 0.9% of total revenue in the first half of fiscal year 2022, up from$0.2 million , or 0.3% of total revenue in the prior year period. The increase was primarily due to the increased demand for other services, including non-IT consulting service.
Revenues by Operational Areas
- Revenue from banking area increased by
$6.4 million , or 22.1% to$35.1 million in the first half of fiscal 2022, from$28.7 million in the prior year period. Revenue from banking area accounted for 46.2% and 49.3% of total revenues in the first half of fiscal 2022 and 2021, respectively. - Revenue from wealth management area increased by
$3.7 million , or 32.4% to$15.1 million in the first half of fiscal 2022, from$11.4 million in the prior year period. Revenue from wealth management area accounted for 19.9% and 19.6% of total revenues in the first half of fiscal 2022 and 2021, respectively. - Revenue from e-Commerce area increased by $6.7 million, or 88.1% to
$14.4 million in the first half of fiscal 2022, from$7.7 million in the prior year period. Revenue from e-Commerce area accounted for 19.0% and 13.2% of total revenues in the first half of fiscal 2022 and 2021, respectively. - Revenue from automotive area increased by
$1.5 million , or 44.5% to$5.0 million in the first half of fiscal 2022, from$3.5 million in the prior year period. Revenue from automotive area accounted for 6.6% and 6.0% of total revenues in the first half of fiscal 2022 and 2021, respectively.
Revenues by Geography
- Despite the recent macroeconomic volatility and the increased uncertainty caused by COVID-19 pandemic, our revenue generated outside of Mainland China continued to grow by 15.4% to
$7.7 million in the first half of fiscal year 2022 from$6.6 million in the same period of the previous year. The increase in revenue generated outside of Mainland China reflects the Company's successful and continuous global expansion strategy.
Gross Profit
Gross profit increased by
Operating Expenses
Selling and marketing expenses increased by
Research and development expenses decreased by
General and administrative expenses increased by
Operating Income
Operating income increased by
Other Income and Expenses
Total other expenses, net of other income was $0.2 million in the first half of fiscal 2022, compared to $0.1 million total other income, net of other expenses in the prior year period.
Provision for Income Taxes
Provision for income taxes increased by
Net Income and EPS
Net income increased by
After excluding the impact of non-controlling interests, net income attributable to
Cash Flow
As of
Net cash provided by operating activities was approximately
Financial Outlook
For fiscal year 2022, the Company expects, absent material acquisitions or non-recurring transactions, total sales growth in the range of approximately 30% to 35%, non-GAAP net income growth in the range of approximately 32% to 37% compared to fiscal year 2021 financial results.
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 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
Conference Call Information
The Company will hold a conference call at
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+1-888-204-4368 |
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+1-323-994-2093 |
Mainland |
400 120 9101 |
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800 961 105 |
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 https://ir.clpsglobal.com.
A replay of the call will be available through
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+1-844-512-2921 |
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+1-412-317-6671 |
Passcode: |
2222362 |
About
Headquartered in
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 first half of Fiscal 2022, 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
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in
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
Contact:
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
[1] Non-GAAP net income attributable to [2] 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 "Unaudited Reconciliation of GAAP and Non-GAAP Results" for details.
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Amounts in |
|||||||||
As of |
|||||||||
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June 30, |
||||||||
2021 (Unaudited) |
2021 (Audited) |
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ASSETS |
|||||||||
Current assets: |
|||||||||
Cash and cash equivalents |
21,741,601 |
24,739,382 |
|||||||
Short-term investments |
6,512,256 |
4,158,535 |
|||||||
Accounts receivable, net |
43,819,782 |
44,138,997 |
|||||||
Prepayments, deposits and other assets, net |
3,318,639 |
2,530,458 |
|||||||
Prepaid income tax |
181,886 |
- |
|||||||
Amounts due from related parties |
430,614 |
546,128 |
|||||||
Total Current Assets |
76,004,778 |
76,113,500 |
|||||||
Non-Current assets: |
|||||||||
Property and equipment, net |
20,886,477 |
600,791 |
|||||||
Intangible assets, net |
1,106,806 |
1,050,499 |
|||||||
|
2,441,368 |
2,444,950 |
|||||||
Long-term investments |
835,041 |
1,014,784 |
|||||||
Prepayments, deposits and other assets, net |
407,821 |
896,145 |
|||||||
Deferred tax assets, net |
408,445 |
607,773 |
|||||||
Total Assets |
102,090,736 |
82,728,442 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
Current liabilities: |
|||||||||
Bank loans |
13,294,897 |
7,536,839 |
|||||||
Accounts payable |
515,918 |
559,450 |
|||||||
Accrued expenses and other current liabilities |
424,356 |
245,408 |
|||||||
Tax payables |
2,238,739 |
1,715,009 |
|||||||
Contract liabilities |
1,161,507 |
326,912 |
|||||||
Salaries and benefits payable |
14,839,684 |
12,466,921 |
|||||||
Amount due to related parties |
61,845 |
183,148 |
|||||||
Total Current Liabilities |
32,536,946 |
23,033,687 |
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Non-Current liabilities: |
|||||||||
Bank loans |
- |
9,644 |
|||||||
Deferred tax liabilities |
144,253 |
155,033 |
|||||||
Other non-current liabilities |
2,101,145 |
1,799,383 |
|||||||
TOTAL LIABILITIES |
34,782,344 |
24,997,747 |
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Commitments and Contingencies |
|||||||||
Shareholders' Equity |
|||||||||
Common stock, |
2,021 |
2,029 |
|||||||
Additional paid-in capital |
50,988,671 |
48,516,695 |
|||||||
Statutory reserves |
4,826,600 |
4,214,075 |
|||||||
Retained earnings |
8,376,104 |
2,726,165 |
|||||||
Accumulated other comprehensive income |
1,715,151 |
1,230,083 |
|||||||
Total |
65,908,547 |
56,689,047 |
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Noncontrolling Interests |
1,399,845 |
1,041,648 |
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Total Shareholders' Equity |
67,308,392 |
57,730,695 |
|||||||
Total Liabilities and Shareholders' Equity |
102,090,736 |
82,728,442 |
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UNAUDITED CONDENSED CONSOLIDATED statements |
||||||||||
of INCOME AND COMPREHENSIVE INCOME |
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(Amounts in |
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For the six months ended |
||||||||||
2021 |
2020 |
|||||||||
Revenues |
75,921,605 |
58,318,208 |
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Less: Cost of revenues (note 1) |
(53,609,609) |
(39,840,283) |
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Gross profit |
22,311,996 |
18,477,925 |
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Operating income (expenses): |
||||||||||
Selling and marketing expenses (note 1) |
2,284,404 |
1,793,807 |
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Research and development expenses |
4,175,373 |
6,161,188 |
||||||||
General and administrative expenses (note 1) |
9,168,389 |
6,629,000 |
||||||||
Subsidies and other operating income |
(878,083) |
(1,011,448 ) |
||||||||
Total operating expenses |
14,750,083 |
13,572,547 |
||||||||
Income from operations |
7,561,913 |
4,905,378 |
||||||||
Other income |
295,704 |
174,468 |
||||||||
Other expenses |
(475,269) |
(49,224) |
||||||||
Income before income tax and share of (loss) in equity investees |
7,382,348 |
5,030,622 |
||||||||
Provision for income taxes |
864,921 |
92,214 |
||||||||
Income before share of (loss) in equity investees Share of (loss) in equity investees, net of tax Net income |
6,517,427 (47,082) 6,470,345 |
4,938,408 (6,127) 4,932,281 |
||||||||
Less: Net income attributable to noncontrolling interests |
207,881 |
72,165 |
||||||||
Net income attributable to |
6,262,464 |
4,860,116 |
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Other comprehensive income (loss) |
||||||||||
Foreign currency translation income |
500,376 |
2,226,431 |
||||||||
Less: foreign currency translation income attributable to |
15,308 |
93,622 |
||||||||
Other comprehensive income attributable to |
485,068 |
2,132,809 |
||||||||
Comprehensive income attributable to |
||||||||||
|
6,747,532 |
6,992,925 |
||||||||
Comprehensive income attributable to noncontrolling interests |
223,189 |
165,787 |
||||||||
Comprehensive income |
6,970,721 |
7,158,712 |
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Basic earnings per common share* |
0.31 |
0.30 |
||||||||
Weighted average number of share outstanding – basic |
20,374,035 |
16,147,508 |
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Diluted earnings per common share* |
0.31 |
0.30 |
||||||||
Weighted average number of share outstanding – diluted |
20,457,630 |
16,174,530 |
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Note:
(1) |
Includes share-based compensation expenses as follows: |
Cost of revenues |
22,923 |
4,183 |
|||||||
Selling and marketing expenses |
109,375 |
79,531 |
|||||||
General and administrative expenses |
2,335,803 |
1,411,613 |
|||||||
2,468,101 |
1,495,327 |
* |
The shares and per share data are presented on a retroactive basis to reflect the nominal share |
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UNAUDITED RECONCILIATION OF NON-GAAP AND GAAP RESULTS |
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(Amounts in |
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For the six months ended |
|||||||||
2021 |
2020 |
||||||||
Cost of revenues |
53,609,609 |
39,840,283 |
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Less: share-based compensation expenses |
22,923 |
4,183 |
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Non-GAAP cost of revenues |
53,586,686 |
39,836,100 |
|||||||
Selling and marketing expenses |
2,284,404 |
1,793,807 |
|||||||
Less: share-based compensation expenses |
109,375 |
79,531 |
|||||||
Non-GAAP selling and marketing |
2,175,029 |
1,714,276 |
|||||||
General and administrative expenses |
9,168,389 |
6,629,000 |
|||||||
Less: share-based compensation expenses |
2,335,803 |
1,411,613 |
|||||||
Non-GAAP general and administrative |
6,832,586 |
5,217,387 |
|||||||
Operating income |
7,561,913 |
4,905,378 |
|||||||
Add: share-based compensation expenses |
2,468,101 |
1,495,327 |
|||||||
Non-GAAP operating income |
10,030,014 |
6,400,705 |
|||||||
Operating Margin |
10.0% |
8.4% |
|||||||
Add: share-based compensation expenses |
3.2% |
2.6% |
|||||||
Non-GAAP operating margin |
13.2% |
11.0% |
|||||||
Net income |
6,470,345 |
4,932,281 |
|||||||
Add: share-based compensation expenses |
2,468,101 |
1,495,327 |
|||||||
Non-GAAP net income |
8,938,446 |
6,427,608 |
|||||||
Net income attributable to |
6,262,464 |
4,860,116 |
|||||||
Add: share-based compensation expenses |
2,468,101 |
1,495,327 |
|||||||
Non-GAAP net income attributable to |
8,730,565 |
6,355,443 |
|||||||
Weighted average number of share |
20,374,035 |
16,147,508 |
|||||||
GAAP basic earnings per common share |
0.31 |
0.30 |
|||||||
Add: share-based compensation expenses |
0.12 |
0.09 |
|||||||
Non-GAAP basic earnings per common share |
0.43 |
0.39 |
|||||||
Weighted average number of share |
20,457,630 |
16,174,530 |
|||||||
Weighted average number of share |
20,457,630 |
16,174,530 |
|||||||
GAAP diluted earnings per common share |
0.31 |
0.30 |
|||||||
Add: share-based compensation expenses |
0.12 |
0.09 |
|||||||
Non-GAAP diluted earnings per common |
0.43 |
0.39 |
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