CLPS Incorporation Reports Financial Results for the Second Half and Full Year of Fiscal 2025
During this fiscal year, we faced a significant challenge when our long-standing and historically largest client announced a broad downsizing of its technology employee workforce within its China Solution Centers (CSCs) in
We are transforming this challenge into an opportunity to advance our strategic objectives. While sustaining organic growth, we are accelerating our strategic shift toward building a more resilient revenue framework. This involves pioneering new, high-value project work in artificial intelligence (AI) and Robotic Process Automation (RPA) while intensifying our efforts to expand our international market presence. We are confident that the positive impact of these transformative steps will materialize and become evident in our financial performance in subsequent reporting periods.
Unaudited Second Half of Fiscal 2025 Highlights (all results compared to the six months ended June 30, 2024)
- Revenue increased by 15.0% to
$81.7 million from$71.0 million . - Revenue from IT consulting services increased by 16.9% to
$78.7 million from$67.3 million . - Revenue generated outside of mainland
China increased by 77.1% to$23.5 million from$13.3 million . In particular:
- Revenue generated from
- Revenue generated from Hong Kong SAR increased by 99.9% to
- Revenue generated from
Audited Fiscal Year 2025 Highlights (all results compared to the twelve months ended June 30, 2024)
- Revenue increased by 15.2% to
$164.5 million from$142.8 million . - Revenue from IT consulting services increased by 16.0% to
$158.8 million from$136.8 million . - Revenue generated outside of mainland
China increased by 90.5% to$42.5 million from$22.3 million . In particular:
- Revenue generated from
- Revenue generated from Hong Kong SAR increased by 130.5% to
- Revenue generated from
- Gross profit increased by 10.2% to
$36.3 million from$32.9 million . - Accounts receivable turnover period improved to 92 days, down from 111 days.
- Total number of clients from IT services segment increased by 6.3% to 319 from 300.
- Total number of employees increased by 6.3% to 3,534 from 3,325.
Mr. Raymond Lin, Chief Executive Officer of CLPS, commented, "The past fiscal year demonstrated meaningful progress in building a more resilient and diversified business model. A key achievement was the significant reduction in client concentration risk, evidenced by the strategic push for global expansion which yielded substantial results. Overseas revenue grew 90.5% to
Navigating the operational and financial impact of the major client's global restructuring strategy was one of the central challenges of this fiscal year. It required a careful realignment of resources while simultaneously supporting growth from other existing and new clients. In parallel, we made pivotal investments in our future by advancing our proprietary RPA product Nibot, and AI solutions. These technological developments, which moved into real-world applications, represent a critical long-term asset. As we celebrate our 20th anniversary, these investments underscore a commitment to evolving our service offerings beyond our IT consulting services towards higher-value, IP-driven solutions."
Ms. Rui Yang, Chief Financial Officer of CLPS, commented, "The fiscal 2025 financial performance reflects a dual reality: achieving robust top-line growth while actively navigating the impact of unforeseen, non-recurring challenges.
Our operations outside Mainland China strongly validated our global expansion strategy, demonstrating impressive growth momentum. Specifically, during this fiscal year, our key international markets in APAC—Singapore, Hong Kong SAR, and Japan—recorded substantial year-over-year growth rates of 99.2%, 130.5%, and 253.2%, respectively. Furthermore, our focus on working capital management yielded positive results, with accounts receivable turnover days improving from 111 days in the previous fiscal year to 92 days.
However, the unexpected restructuring of CSCs in
Moving forward, we are proactively addressing this challenge by accelerating the diversification of our revenue streams. For instance, with the market launch of Nibot, and further advancements in AI, we anticipate increased revenue generation from customized IT solutions segment, which will substantially reduce our reliance on any single client. Moreover,
Unaudited Second Half of Fiscal Year 2025 Financial Results
Revenues
In the second half of fiscal 2025, revenues increased by $10.7 million, or 15.0%, to $81.7 million from
Revenues by Service
- Revenue from IT consulting services increased by
$11.4 million , or 16.9%, to$78.7 million in the second half of fiscal 2025, from$67.3 million in the prior year period. Revenue from IT consulting services accounted for 96.3% of total revenue, compared to 94.8% in the prior year period. The increase was due to the increased demand from existing and new clients. - Revenue from customized IT solution services decreased by
$0.1 million , or 4.7%, to$1.8 million in the second half of fiscal 2025, from$1.9 million in the prior year period. Revenue from customized IT solution services accounted for 2.2% of total revenue, compared to 2.7% in the prior year period. The decrease was primarily due to the decreased demand from existing clients. In response, we are actively pursuing new client acquisition and identifying emerging market needs, with an expectation for this segment to resume growth in the next fiscal year. - Revenue from academic education services decreased by
$0.08 million , or 7.8%, to$0.96 million in the second half of fiscal 2025, from$1.04 million in the prior year period. Revenue from academic education services accounted for 1.2% of total revenue, compared to 1.5% in the prior year period. The decrease was primarily attributable to resource integration following the acquisition of theCollege of Allied Educators (CAE). Looking ahead, we are focused on generating new momentum by launching innovative courses for CAE to boost enrollment and drive segment revenue growth. - Revenue from other services decreased by
$0.5 million , or 71.1%, to$0.2 million in the second half of fiscal 2025, from$0.7 million in the prior year period. Revenue from other services accounted for 0.3% of total revenue, compared to 1.0% in the prior year period. The decrease was primarily due to the decreased demand for other services, including head hunting service.
Revenues by Operational Areas
- Revenue from banking area increased by
$1.9 million , or 6.6%, to$30.6 million in the second half of fiscal 2025, from$28.7 million in the prior year period. Revenue from banking area accounted for 37.5% and 40.3% of total revenues in the second half of fiscal 2025 and 2024, respectively. - Revenue from wealth management area decreased by
$3.1 million , or 18.4%, to$13.9 million in the second half of fiscal 2025, from$17.0 million in the prior year period. Revenue from wealth management area accounted for 17.0% and 23.9% of total revenues in the second half of fiscal 2025 and 2024, respectively. - Revenue from e-Commerce area increased by $4.7 million, or 46.1%, to $14.9 million in the second half of fiscal 2025, from $10.2 million in the prior year period. Revenue from e-Commerce area accounted for 18.2% and 14.3% of total revenues in the second half of fiscal 2025 and 2024, respectively.
- Revenue from automotive area increased by
$4.6 million , or 65.6%, to$11.6 million in the second half of fiscal 2025, from$7.0 million in the prior year period. Revenue from automotive area accounted for 14.3% and 9.9% of total revenues in the second half of fiscal 2025 and 2024, respectively.
Revenues by Geography
- Revenue generated outside of mainland
China increased by 77.1% to$23.5 million in the second half of fiscal year 2025, from$13.3 million in the prior year period. The increase was primarily due to strong performance of our operations inSingapore , Hong Kong SAR andJapan , reflecting the Company's successful and continuous implementation of its global expansion strategy.
Gross Profit
Gross profit decreased by $46.5 thousand, or 0.3%, to $17.15 million in the second half of fiscal 2025, from $17.20 million in the prior year period.
Operating Expenses
Selling and marketing expenses increased by $0.9 million, or 47.5%, to $2.7 million in the second half of fiscal 2025, from $1.8 million in the prior year period. As a percentage of total revenues, selling and marketing expenses increased to 3.3% in the second half of fiscal 2025, compared to 2.6% in the prior year period. The increase was primarily due to an increase in sales staff to capture business growth opportunities.
Research and development expenses decreased by $1.5 million, or 36.0%, to $2.5 million in the second half of fiscal 2025, from $4.0 million in the prior year period. As a percentage of total revenues, research and development expenses decreased to 3.1% in the second half of fiscal 2025, compared to 5.6% in the prior year period. The decrease was primarily due to the redeployment of R&D staff to deliver customized IT solutions, resulting in a reclassification of these expenses as cost of revenues.
General and administrative expenses increased by $3.8 million, or 27.3%, to $17.7 million in the second half of fiscal 2025, from $13.9 million in the prior year period. As a percentage of total revenues, general and administrative expenses increased to 21.7% in the second half of fiscal 2025, compared to 19.6% in the prior year period. This increase was primarily due to the recognition of significant one-time employee severance costs, which were triggered by a major client's global restructuring strategy. After excluding all of the layoff compensation, our general and administrative expenses increased by 0.3% compared to the prior-year period.
Operating Loss
Operating loss was $5.5 million in the second half of fiscal 2025, compared to operating loss of $1.6 million in the same period of the previous year. Operating margin was -6.8% compared to -2.3% in the prior year period.
Other Income and Expenses
Total other income, net of other expenses was $87.5 thousand in the second half of fiscal 2025, compared to $0.6 million total other income, net of other expenses in the same period of previous year.
Provision (Benefit) for Income Taxes
Provision for income taxes was $0.7 million in the second half of fiscal 2025, compared to a benefit for income taxes of
Net Loss and Losses Per Share
Net loss was
Non-GAAP net loss[1] was
Net loss attributable to
Non-GAAP net loss attributable to
Audited Fiscal Year 2025 Financial Results
Revenues
Revenues increased by $21.7 million, or 15.2%, to $164.5 million in the fiscal year 2025, from
Revenues by Service
- Revenue from IT consulting services increased by
$22.0 million , or 16.0%, to$158.8 million in the fiscal year 2025, from$136.8 million in the prior year period. Revenue from IT consulting services accounted for 96.5% of total revenue, compared to 95.8% in the prior year period. The increase was due to the increased demand from existing and new clients. - Revenue from customized IT solution services decreased by
$0.3 million , or 11.6%, to$2.8 million in the fiscal year 2025, from$3.1 million in the prior year period. Revenue from customized IT solution services accounted for 1.7% of total revenue, compared to 2.2% in the prior year period. The decrease was primarily due to the decreased demand from existing clients. In response, we are actively pursuing new client acquisition and identifying emerging market needs, with an expectation for this segment to resume growth in the next fiscal year. - Revenue from academic education services increased by
$1.0 million , or 96.3%, to$2.0 million in the fiscal year 2025, from$1.0 million in the prior year period. Revenue from academic education services accounted for 1.2% of total revenue, compared to 0.7% in the prior year period. The increase was primarily due the full-year consolidation of results from academic education services. As the acquisition of CAE closed in the second half of fiscal 2024, the prior year period only included approximately six months of its operating revenue. - Revenue from other services decreased by
$0.9 million , or 49.7%, to$0.9 million in the fiscal year 2025, from$1.8 million in the prior year period. Revenue from other services accounted for 0.5% of total revenue, compared to 1.2% in the prior year period. The decrease was primarily due to the decreased demand for other services, including software sales.
Revenues by Operational Areas
- Revenue from banking area increased by
$6.9 million , or 12.1%, to$64.1 million in the fiscal year 2025, from$57.2 million in the prior year period. Revenue from banking area accounted for 39.0% and 40.0% of total revenues in the fiscal year 2025 and 2024, respectively. - Revenue from wealth management area decreased by
$6.3 million , or 17.8%, to$29.3 million in the fiscal year 2025, from$35.6 million in the prior year period. Revenue from wealth management area accounted for 17.8% and 24.9% of total revenues in the fiscal year 2025 and 2024, respectively. - Revenue from e-Commerce area increased by $8.6 million, or 40.9%, to $29.8 million in the fiscal year 2025, from $21.2 million in the prior year period. Revenue from e-Commerce area accounted for 18.1% and 14.8% of total revenues in the fiscal year 2025 and 2024, respectively.
- Revenue from automotive area increased by
$6.6 million , or 46.1%, to$20.8 million in the fiscal year 2025, from$14.2 million in the prior year period. Revenue from automotive area accounted for 12.7% and 10.0% of total revenues in the fiscal year 2025 and 2024, respectively.
Revenues by Geography
- Revenue generated outside of mainland
China increased by$20.2 million , or 90.5%, to$42.5 million in the fiscal year 2025, from$22.3 million in the prior year period. The increase was due to strong performance of our operations inSingapore , Hong Kong SAR andJapan , reflecting the Company's successful and continuous implementation of its global expansion strategy.
Gross Profit
Gross profit increased by $3.4 million, or 10.2%, to $36.3 million in the fiscal year 2025, from $32.9 million in the prior year period. The increase was primarily attributed to an increase in total revenue.
Operating Expenses
Selling and marketing expenses increased by $0.6 million, or 13.3%, to $5.2 million in the fiscal year 2025, from $4.6 million in the prior year period. As a percentage of total revenues, selling and marketing expenses decreased to 3.1% in the fiscal year 2025, compared to 3.2% in the prior year period. The increase was primarily due to an increase in sales staff to capture business growth opportunities.
Research and development expenses decreased by $1.4 million, or 18.7%, to $5.8 million in the fiscal year 2025, from $7.2 million in the prior year period. As a percentage of total revenues, research and development expenses decreased to 3.5% in the fiscal year 2025, compared to 5.0% in the prior year period. The decrease was primarily due to the redeployment of R&D staff to deliver customized IT solutions, resulting in a reclassification of these expenses as cost of revenues.
General and administrative expenses increased by $6.8 million, or 26.8%, to $31.9 million in the fiscal year 2025, from $25.1 million in the prior year period. As a percentage of total revenues, general and administrative expenses increased to 19.4% in the fiscal year 2025, compared to 17.6% in the prior year period. This increase was primarily driven by two factors: first, the recognition of significant one-time employee severance costs, which were triggered by a major client's global restructuring strategy. After excluding all of the layoff compensation, our general and administrative expenses increased by 9.8% compared to the prior-year period. Second, the increase reflects necessary operational investments, including the establishment of the
Operating Loss
Operating loss was
Other Income and Expenses
Total other income, net of other expenses was $0.3 million in the fiscal year 2025, compared to $0.7 million total other income, net of other expenses in the prior year period.
Provision for Income Taxes
Provision for income taxes was
Net Loss and (Losses) Earnings Per Share
Net loss was $6.4 million in the fiscal year 2025, compared to a net loss of
Non-GAAP net loss[1] was $3.8 million in the fiscal year 2025, compared to a non-GAAP net income of
Net loss attributable to
Non-GAAP net loss attributable to
Cash Flow
As of June 30, 2025, the Company had cash and cash equivalents of $28.2 million compared to $29.1 million as of June 30, 2024.
Net cash used in operating activities was $2.5 million for the twelve months ended June 30, 2025. Net cash used in investing activities was $1.8 million. Net cash provided by financing activities was approximately
Financial Outlook
Undeterred by the short-term challenges, we remain confident about our long-term business growth. For fiscal year 2026, the Company expects, considering our financial numbers could be affected by the floating exchange rate, and absent material acquisitions or non-recurring transactions, total sales growth in the range of approximately 10% to 15% compared to fiscal year 2025 financial results, and non-GAAP net income in the range of approximately
This forecast reflects the Company's current and preliminary views, which are subject to change and to risks and uncertainties, including, but not limited to, those facing the Company's business and operations as identified in its annual report on Form 20-F made with the Securities and Exchange Commission.
Exchange Rate
The balance sheet amounts with the exception of equity as of June 30, 2025, were translated at 7.1636 RMB to 1.00 USD compared to 7.2672 RMB to 1.00 USD as of June 30, 2024. 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, 2025 and 2024 were 7.2143 RMB to 1.00 USD and 7.2248 RMB to 1.00 USD, respectively. The change in the value of the RMB relative to the
About
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 2025, 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 consolidated financial information is prepared in conformity with accounting principles generally accepted in the
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:
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
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[1] Non-GAAP net loss/income is a non-GAAP financial measure, which is defined as net loss/income excluding share-based compensation expenses. Please refer to the section titled "Reconciliation of Non-GAAP and GAAP Results" for details. |
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[2] Non-GAAP net loss/income attributable to |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
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(Amounts in |
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|
||||||||
|
|
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As of |
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|||||
|
|
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2025 (Audited) |
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2024 (Unaudited) |
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ASSETS |
|
|
|
|
|
|
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Current assets: |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
|
28,173,160 |
|
|
|
35,626,137 |
|
|
Short-term investments |
|
|
896,949 |
|
|
|
1,643,691 |
|
|
Accounts receivable, net |
|
|
44,891,161 |
|
|
|
40,394,147 |
|
|
Prepayments, deposits and other assets, net |
|
|
7,441,565 |
|
|
|
4,285,476 |
|
|
Amounts due from related parties |
|
|
4,374,595 |
|
|
|
4,899,451 |
|
|
Total Current Assets |
|
$ |
85,777,430 |
|
|
$ |
86,848,902 |
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
21,212,463 |
|
|
|
20,972,905 |
|
|
Intangible assets, net |
|
|
2,055,102 |
|
|
|
2,067,127 |
|
|
Operating lease right-of-use assets |
|
|
3,407,995 |
|
|
|
3,430,925 |
|
|
|
|
|
1,435,782 |
|
|
|
1,462,032 |
|
|
Long-term investments |
|
|
1,718,995 |
|
|
|
692,385 |
|
|
Prepayments, deposits and other assets, net |
|
|
481,761 |
|
|
|
1,005,886 |
|
|
Amounts due from related parties |
|
|
1,945,960 |
|
|
|
2,270,249 |
|
|
Deferred tax assets, net |
|
|
73,942 |
|
|
|
666,720 |
|
|
Total Assets |
|
$ |
118,109,430 |
|
|
$ |
119,417,131 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Bank loans |
|
$ |
30,217,329 |
|
|
$ |
27,949,778 |
|
|
Accounts payable |
|
|
2,515,207 |
|
|
|
1,548,917 |
|
|
Accrued expenses and other current liabilities |
|
|
260,880 |
|
|
|
397,767 |
|
|
Tax payables |
|
|
2,463,706 |
|
|
|
1,906,938 |
|
|
Contract liabilities |
|
|
2,470,135 |
|
|
|
3,015,923 |
|
|
Salaries and benefits payable |
|
|
14,062,007 |
|
|
|
13,285,958 |
|
|
Operating lease liabilities |
|
|
2,348,195 |
|
|
|
1,853,798 |
|
|
Amount due to related parties |
|
|
21,884 |
|
|
|
20,324 |
|
|
Total Current Liabilities |
|
$ |
54,359,343 |
|
|
$ |
49,979,403 |
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
Operating lease liabilities |
|
|
1,301,369 |
|
|
|
1,846,777 |
|
|
Deferred tax liabilities |
|
|
251,812 |
|
|
|
354,649 |
|
|
Unrecognized tax benefit |
|
|
3,715,163 |
|
|
|
3,696,355 |
|
|
Other non-current liabilities |
|
|
896,747 |
|
|
|
880,076 |
|
|
TOTAL LIABILITIES |
|
$ |
60,524,434 |
|
|
$ |
56,757,260 |
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Common stock, |
|
|
2,799 |
|
|
|
2,799 |
|
|
Additional paid-in capital |
|
|
60,177,851 |
|
|
|
59,815,077 |
|
|
Statutory reserves |
|
|
5,853,445 |
|
|
|
5,761,656 |
|
|
Accumulated deficit |
|
|
(7,401,803) |
|
|
|
(650,193) |
|
|
Accumulated other comprehensive losses |
|
|
(3,095,507) |
|
|
|
(4,238,666) |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
55,536,785 |
|
|
|
60,690,673 |
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling Interests |
|
|
2,048,211 |
|
|
|
1,969,198 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
|
57,584,996 |
|
|
|
62,659,871 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
$ |
118,109,430 |
|
|
$ |
119,417,131 |
|
|
|
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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS |
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(Amounts in |
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|||||||||||||
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For the six months ended
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|
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|
2025 |
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2024 |
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Revenue |
|
$ |
81,703,894 |
|
|
$ |
71,038,525 |
|
|||||
|
Cost of revenue (note 1) |
|
|
(64,553,449) |
|
|
|
(53,841,552) |
|
|||||
|
Gross profit |
|
|
17,150,445 |
|
|
|
17,196,973 |
|
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|
|
|
|
|
|
|
|
|
|
|||||
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Operating income (expenses): |
|
|
|
|
|
|
|
|
|||||
|
Selling and marketing expenses (note 1) |
|
|
(2,727,725) |
|
|
|
(1,849,118) |
|
|||||
|
Research and development expenses |
|
|
(2,533,678) |
|
|
|
(3,961,031) |
|
|||||
|
General and administrative expenses (note 1) |
|
|
(17,737,124) |
|
|
|
(13,935,384) |
|
|||||
|
Impairment of goodwill |
|
|
(129,270) |
|
|
|
- |
|
|||||
|
Subsidies and other operating income |
|
|
440,978 |
|
|
|
926,159 |
|
|||||
|
Total operating expenses |
|
|
(22,686,819) |
|
|
|
(18,819,374) |
|
|||||
|
Loss from operations |
|
|
(5,536,374) |
|
|
|
(1,622,401) |
|
|||||
|
Other income |
|
|
652,412 |
|
|
|
943,448 |
|
|||||
|
Other expenses |
|
|
(564,956) |
|
|
|
(358,372) |
|
|||||
|
Loss before income tax and share of (loss) income in |
|
|
(5,448,918) |
|
|
|
(1,037,325) |
|
|||||
|
Provision (benefit) for income taxes |
|
|
679,739 |
|
|
|
(176,838) |
|
|||||
|
Loss before share of income in equity investees |
|
|
(6,128,657) |
|
|
|
(860,487) |
|
|||||
|
Share of (loss) income in equity investees, net of tax |
|
|
(480,926) |
|
|
|
6,632 |
|
|||||
|
Net loss |
|
|
(6,609,583) |
|
|
|
(853,855) |
|
|||||
|
Less: Net income (loss) attributable to noncontrolling |
|
|
50,238 |
|
|
|
(11,425) |
|
|||||
|
Net loss attributable to |
|
$ |
(6,659,821) |
|
|
$ |
(842,430) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Other comprehensive loss |
|
|
|
|
|
|
|
|
|||||
|
Foreign currency translation income (loss) |
|
$ |
1,171,934 |
|
|
$ |
(1,260,918) |
|
|||||
|
Less: Foreign currency translation income (loss) |
|
|
28,775 |
|
|
|
(31,951) |
|
|||||
|
Other comprehensive income (loss) attributable to |
|
$ |
1,143,159 |
|
|
$ |
(1,228,967) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Comprehensive loss attributable to |
|
|
|
|
|
|
|
|
|||||
|
|
|
$ |
(5,516,662) |
|
|
$ |
(2,071,397) |
|
|||||
|
Comprehensive income (loss) attributable to |
|
|
79,013 |
|
|
|
(43,376) |
|
|||||
|
Comprehensive loss |
|
$ |
(5,437,649) |
|
|
$ |
(2,114,773) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Basic losses per common share |
|
$ |
(0.24) |
|
|
$ |
(0.03) |
|
|||||
|
Weighted average number of share outstanding – basic |
|
|
27,986,798 |
|
|
|
25,619,294 |
|
|||||
|
Diluted losses per common share |
|
$ |
(0.24) |
|
|
$ |
(0.03) |
|
|||||
|
Weighted average number of share outstanding – diluted |
|
|
27,986,798 |
|
|
|
25,619,294 |
|
|||||
|
Note: |
|
|
|
|
|
|
|
|
|||||
|
(1) Includes share-based compensation expenses as |
|
|
|
|
|
|
|
|
|||||
|
Cost of revenues |
|
|
2,197 |
|
|
|
5,658 |
|
|||||
|
Selling and marketing expenses |
|
|
90,286 |
|
|
|
82,615 |
|
|||||
|
General and administrative expenses |
|
|
269,214 |
|
|
|
348,850 |
|
|||||
|
|
||||||||
|
RECONCILIATION OF NON-GAAP AND GAAP RESULTS - UNAUDITED |
||||||||
|
(Amounts in |
||||||||
|
|
|
|
|
For the six months ended |
||||
|
|
||||||||
|
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|||||||
|
Cost of revenue |
|
|
$ |
(64,553,449) |
|
|
$ |
(53,841,552) |
|
Less: share-based compensation expenses |
|
|
|
(2,197) |
|
|
|
(5,658) |
|
Non-GAAP cost of revenue |
|
|
$ |
(64,551,252) |
|
|
$ |
(53,835,894) |
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
|
$ |
(2,727,725) |
|
|
$ |
(1,849,118) |
|
Less: share-based compensation expenses |
|
|
|
(90,286) |
|
|
|
(82,615) |
|
Non-GAAP selling and marketing expenses |
|
|
$ |
(2,637,439) |
|
|
$ |
(1,766,503) |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
$ |
(17,737,124) |
|
|
$ |
(13,935,384) |
|
Less: share-based compensation expenses |
|
|
|
(269,214) |
|
|
|
(348,850) |
|
Non-GAAP general and administrative |
|
|
$ |
(17,467,910) |
|
|
$ |
(13,586,534) |
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
$ |
(5,536,374) |
|
|
$ |
(1,622,401) |
|
Add: share-based compensation expenses and |
|
|
|
490,967 |
|
|
|
437,123 |
|
Non-GAAP loss from operations |
|
|
$ |
(5,045,407) |
|
|
$ |
(1,185,278) |
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
(6.8 %) |
|
|
|
(2.3 %) |
|
Add: share-based compensation expenses and |
|
|
|
0.6 % |
|
|
|
0.6 % |
|
Non-GAAP operating margin |
|
|
|
(6.2 %) |
|
|
|
(1.7 %) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
$ |
(6,609,583) |
|
|
$ |
(853,855) |
|
Add: share-based compensation expenses and |
|
|
|
490,967 |
|
|
|
437,123 |
|
Non-GAAP net loss |
|
|
$ |
(6,118,616) |
|
|
$ |
(416,732) |
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to |
|
|
$ |
(6,659,821) |
|
|
$ |
(842,430) |
|
Add: share-based compensation expenses and |
|
|
|
490,967 |
|
|
|
437,123 |
|
Non-GAAP net loss attributable to |
|
|
|
(6,168,854) |
|
|
|
(405,307) |
|
$ |
$ |
|||||||
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share |
|
|
|
27,986,798 |
|
|
|
25,619,294 |
|
GAAP basic losses per common share |
|
|
$ |
(0.24) |
|
|
$ |
(0.03) |
|
Add: share-based compensation expenses and |
|
|
|
0.02 |
|
|
|
0.01 |
|
Non-GAAP basic loss es per common share |
|
|
$ |
(0.22) |
|
|
$ |
(0.02) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share |
|
|
|
27,986,798 |
|
|
|
25,619,294 |
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted losses per common share |
|
|
$ |
(0.24) |
|
|
$ |
(0.03) |
|
Add: share-based compensation expenses and |
|
|
|
0.02 |
|
|
|
0.01 |
|
Non-GAAP diluted loss
es
per common |
|
|
$ |
(0.22) |
|
|
$ |
(0.02) |
|
|
||||||||
|
AUDITED CONSOLIDATED BALANCE SHEETS |
||||||||
|
(Amounts in |
||||||||
|
|
||||||||
|
|
|
As of |
|
|||||
|
|
|
2025 |
|
|
2024 |
|
||
|
ASSETS |
|
|
|
|
|
|
||
|
Current assets : |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
28,173,160 |
|
|
$ |
29,116,431 |
|
|
Restricted cash |
|
|
- |
|
|
|
24,081 |
|
|
Short-term investments |
|
|
896,949 |
|
|
|
2,100,000 |
|
|
Accounts receivable, net |
|
|
44,891,161 |
|
|
|
38,779,209 |
|
|
Prepayments, deposits and other assets, net |
|
|
7,441,565 |
|
|
|
4,497,578 |
|
|
Amounts due from related parties |
|
|
4,374,595 |
|
|
|
3,559,109 |
|
|
Total Current Assets |
|
|
85,777,430 |
|
|
|
78,076,408 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets : |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
21,212,463 |
|
|
|
21,168,524 |
|
|
Intangible assets, net |
|
|
2,055,102 |
|
|
|
2,254,372 |
|
|
|
|
|
1,435,782 |
|
|
|
1,473,899 |
|
|
Operating lease right-of-use assets |
|
|
3,407,995 |
|
|
|
2,776,858 |
|
|
Long-term investments |
|
|
1,718,995 |
|
|
|
613,807 |
|
|
Prepayments, deposits and other assets, net |
|
|
481,761 |
|
|
|
594,603 |
|
|
Amounts due from related parties |
|
|
1,945,960 |
|
|
|
2,374,298 |
|
|
Deferred tax assets, net |
|
|
73,942 |
|
|
|
697,047 |
|
|
Total Assets |
|
$ |
118,109,430 |
|
|
$ |
110,029,816 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Bank loans |
|
$ |
30,217,329 |
|
|
$ |
23,232,856 |
|
|
Accounts payable |
|
|
2,515,207 |
|
|
|
949,137 |
|
|
Accrued expenses and other current liabilities |
|
|
260,880 |
|
|
|
799,495 |
|
|
Tax payables |
|
|
2,463,706 |
|
|
|
2,351,615 |
|
|
Contract liabilities |
|
|
2,470,135 |
|
|
|
1,139,001 |
|
|
Salaries and benefits payable |
|
|
14,062,007 |
|
|
|
9,941,541 |
|
|
Operating lease liabilities |
|
|
2,348,195 |
|
|
|
1,361,928 |
|
|
Amounts due to related party |
|
|
21,884 |
|
|
|
20,230 |
|
|
Total Current Liabilities |
|
|
54,359,343 |
|
|
|
39,795,803 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
Operating lease liabilities |
|
|
1,301,369 |
|
|
|
1,638,243 |
|
|
Unrecognized tax benefits |
|
|
3,715,163 |
|
|
|
3,413,850 |
|
|
Deferred tax liabilities |
|
|
251,812 |
|
|
|
378,344 |
|
|
Other non-current liabilities |
|
|
896,747 |
|
|
|
883,963 |
|
|
T otal Liabilities |
|
|
60,524,434 |
|
|
|
46,110,203 |
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Common shares, |
|
|
2,799 |
|
|
|
2,564 |
|
|
Additional paid-in capital |
|
|
60,177,851 |
|
|
|
61,351,200 |
|
|
Statutory reserves |
|
|
5,853,445 |
|
|
|
5,553,104 |
|
|
Accumulated deficit |
|
|
(7,401,803) |
|
|
|
(51,728) |
|
|
Accumulated other comprehensive losses |
|
|
(3,095,507) |
|
|
|
(4,345,902) |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
55,536,785 |
|
|
|
62,509,238 |
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling Interests |
|
|
2,048,211 |
|
|
|
1,410,375 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
|
57,584,996 |
|
|
|
63,919,613 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
$ |
118,109,430 |
|
|
$ |
110,029,816 |
|
|
|
||||||||
|
AUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS |
||||||||
|
(Amounts in |
||||||||
|
|
||||||||
|
|
|
For the years ended
|
|
|||||
|
|
|
2025 |
|
|
2024 |
|
||
|
|
|
|
|
|
|
|
||
|
Revenue from third parties |
|
$ |
164,229,721 |
|
|
$ |
142,725,554 |
|
|
Revenue from related party |
|
|
251,693 |
|
|
|
87,172 |
|
|
Cost of revenue from third parties (note 1) |
|
|
(127,987,226) |
|
|
|
(109,795,857) |
|
|
Cost of revenue from related party |
|
|
(188,770) |
|
|
|
(69,738) |
|
|
Gross profit |
|
|
36,305,418 |
|
|
|
32,947,131 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (expenses): |
|
|
|
|
|
|
|
|
|
Selling and marketing expenses (note 1) |
|
|
(5,180,682) |
|
|
|
(4,573,344) |
|
|
Research and development expenses |
|
|
(5,815,555) |
|
|
|
(7,155,949) |
|
|
General and administrative expenses (note 1) |
|
|
(31,852,179) |
|
|
|
(25,120,010) |
|
|
Impairment of goodwill |
|
|
(129,270) |
|
|
|
- |
|
|
Subsidies and other operating income |
|
|
1,294,964 |
|
|
|
1,363,757 |
|
|
Total operating expenses |
|
|
(41,682,722) |
|
|
|
(35,485,546) |
|
|
Loss from operations |
|
|
(5,377,304) |
|
|
|
(2,538,415) |
|
|
Other income |
|
|
1,237,678 |
|
|
|
1,251,465 |
|
|
Other expenses |
|
|
(935,988) |
|
|
|
(556,415) |
|
|
Loss before income tax and share of (loss) income in |
|
|
(5,075,614) |
|
|
|
(1,843,365) |
|
|
Provision for income taxes |
|
|
947,529 |
|
|
|
160,725 |
|
|
Loss before share of (loss) income in equity |
|
|
(6,023,143) |
|
|
|
(2,004,090) |
|
|
Share of (loss) income in equity investees, net of tax |
|
|
(403,421) |
|
|
|
156,780 |
|
|
Net loss |
|
|
(6,426,564) |
|
|
|
(1,847,310) |
|
|
Less: Net income attributable to noncontrolling |
|
|
623,170 |
|
|
|
482,655 |
|
|
Net loss attributable to |
|
$ |
(7,049,734) |
|
|
$ |
(2,329,965) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
Foreign currency translation income (loss) |
|
$ |
1,265,061 |
|
|
$ |
(355,386) |
|
|
Less: Foreign currency translation income (loss) |
|
|
14,666 |
|
|
|
(78) |
|
|
Other comprehensive income (loss) attributable to |
|
$ |
1,250,395 |
|
|
$ |
(355,308) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to |
|
|
|
|
|
|
|
|
|
|
|
$ |
(5,799,339) |
|
|
$ |
(2,685,273) |
|
|
Comprehensive income attributable to noncontrolling |
|
|
637,836 |
|
|
|
482,577 |
|
|
Comprehensive loss |
|
$ |
(5,161,503) |
|
|
$ |
(2,202,696) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic losses per common share |
|
$ |
(0.26) |
|
|
$ |
(0.09) |
|
|
Weighted average number of share outstanding – |
|
|
27,533,182 |
|
|
|
25,213,012 |
|
|
Diluted losses per common share |
|
$ |
(0.26) |
|
|
$ |
(0.09) |
|
|
Weighted average number of share outstanding – |
|
|
27,533,182 |
|
|
|
25,213,012 |
|
|
Note: |
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expenses Cost of revenues |
|
|
7,503 |
|
|
|
11,467 |
|
|
Selling and marketing expenses |
|
|
179,938 |
|
|
|
275,562 |
|
|
General and administrative expenses |
|
|
2,280,469 |
|
|
|
2,880,987 |
|
|
|
||||||||
|
RECONCILIATION OF NON-GAAP AND GAAP RESULTS- UNAUDITED |
||||||||
|
(Amounts in |
||||||||
|
|
|
|
|
For the years ended |
||||
|
June 30, |
||||||||
|
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|||||||
|
Cost of revenue |
|
|
$ |
(128,175,996) |
|
|
$ |
(109,865,595) |
|
Less: share-based compensation expenses |
|
|
|
(7,503) |
|
|
|
(11,467) |
|
Non-GAAP cost of revenue |
|
|
$ |
(128,168,493) |
|
|
$ |
(109,854,128) |
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
|
$ |
(5,180,682) |
|
|
$ |
(4,573,344) |
|
Less: share-based compensation expenses |
|
|
|
(179,938) |
|
|
|
(275,562) |
|
Non-GAAP selling and marketing expenses |
|
|
$ |
(5,000,744) |
|
|
$ |
(4,297,782) |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
$ |
(31,852,179) |
|
|
$ |
(25,120,010) |
|
Less: share-based compensation expenses |
|
|
|
(2,280,469) |
|
|
|
(2,880,987) |
|
Non-GAAP general and administrative |
|
|
$ |
(29,571,710) |
|
|
$ |
(22,239,023) |
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
$ |
(5,377,304) |
|
|
$ |
(2,538,415) |
|
Add: share-based compensation expenses and |
|
|
|
2,597,180 |
|
|
|
3,168,016 |
|
Non-GAAP operating (loss) income |
|
|
$ |
(2,780,124) |
|
|
$ |
629,601 |
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
(3.3 %) |
|
|
|
(1.8 %) |
|
Add: share-based compensation expenses and |
|
|
|
1.6 % |
|
|
|
2.2 % |
|
Non-GAAP operating margin |
|
|
|
(1.7 %) |
|
|
|
0.4 % |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
$ |
(6,426,564) |
|
|
$ |
(1,847,310) |
|
Add: share-based compensation expenses and |
|
|
|
2,597,180 |
|
|
|
3,168,016 |
|
Non-GAAP net (loss) income |
|
|
$ |
(3,829,384) |
|
|
$ |
1,320,706 |
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to |
|
|
$ |
(7,049,734) |
|
|
$ |
(2,329,965) |
|
Add: share-based compensation expenses and |
|
|
|
2,597,180 |
|
|
|
3,168,016 |
|
Non-GAAP net (loss) income attributable to |
|
|
$ |
(4,452,554) |
|
|
$ |
838,051 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share outstanding |
|
|
|
27,533,182 |
|
|
|
25,213,012 |
|
GAAP basic losses per common share |
|
|
$ |
(0.26) |
|
|
$ |
(0.09) |
|
Add: share-based compensation expenses and |
|
|
|
0.10 |
|
|
|
0.12 |
|
Non-GAAP basic (losses) earnings per |
|
|
$ |
(0.16) |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share outstanding |
|
|
|
27,533,182 |
|
|
|
25,213,012 |
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted losses per common share |
|
|
$ |
(0.26) |
|
|
$ |
(0.09) |
|
Add: share-based compensation expenses and |
|
|
|
0.10 |
|
|
|
0.12 |
|
Non-GAAP diluted (losses) earnings per |
|
|
$ |
(0.16) |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-second-half-and-full-year-of-fiscal-2025-302587615.html
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