CLPS Incorporation

Hello, everyone. Welcome to the second half and full year fiscal 2021 earnings conference call for CLPS Incorporation. Please note that today's conference is being recorded. At this time, I would like to turn the call over to Mr. Rhon Galicha from CLPS Investor Relations for opening remarks and introductions. Please go ahead.

Thank you, Operator. Hello everyone and thank you for joining us on today's call. CLPS Incorporation announced its second half and full year fiscal 2021 financial results this morning. The earnings release is now available on the company's IR website at www.ir.clpsglobal.com. Before we continue, please note that our discussion today may include forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. forward-looking statements involve a number of risks and uncertainties. As such, our results may be materially different from the views expressed today. Further information regarding these risks, uncertainties, assumptions, and other factors that could affect our financial results is included in our Form 20-F filed with the U.S. Securities and Exchange Commission and other documents filed with the U.S. SEC. In that respect, I would like to read the following disclaimer applicable to such statements. Certain of the statements made in this discussion are forward-looking statements within the meaning and protections of Section 27A of the Securities Act of 1933 as amended in Section 21E of the Securities Exchange 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. 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 2021, and 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 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. All information provided today It is of the date of this call and CLPS does not undertake any obligation to update any forward-looking statement except as required under applicable law. With respect to any non-GAAP measures discussed during today's call, the company reconciliation information related to those measures can be found in the earnings release issued early this morning. Now, allow me to introduce the management team on the call today. Mr. Raymond Lin, Chief Executive Officer and Director of CLPS, will start off the call with a review of recent company developments and operating results, followed by Ms. Rui Yang, Chief Financial Officer of CLPS, who will discuss financial results in more detail. Please note that all lines have been placed on mute to prevent background noise. Following the management's prepared remarks, we will open up the call for a Q&A session. Mr. Henry Lee, the company's Chief Operating Officer, and Mr. Wilson Wong, Executive Vice President of CLPS, will also join the Q&A session. With that said, I would now like to turn the call over to Raymond. Raymond, please go ahead.

Okay, Ron. Thank you, Ron. Hello, everyone, and thanks for joining today's call. I hope each of you and your family are safe and well. In today's call, I'm excited to tell you our Facial Year 2021 performance, both in financial and business perspectives. Including our strategic pipeline, we are confident we further drive CLPS suitable growth. In financial performance standpoint, Facial Year 2021 both us and other possible years as a reflect in our financial results, both our top line and bottom line. Our revenue increased by 41% to $126 million, and our net income increased by 127%. to $7 million year over year. For the details, my CFO, Rita, will share with you later. Now, let me think about our strategies that contributed to our financial growth this fiscal year. First of all, I would like to say my thank you to our more than 3,000 staff. The backbone of the company continues to exist. We quickly appreciate your dedication, and I'm more than happy that our CLPS family is consistently growing every year. We also hire more experienced talent acquisition manpower. Those meet the demand for IT professionals. ensure efficient IT services delivery to our existing and new clients. On a business perspective, we achieved numerous progress with the fulfillment of our company initiative in Faisal 2021. We continued to execute our deal to the improvement of our technology and product capability while maintaining the organic growth of our business. On February this year, we raised approximately $16 million to a registered direct offering which we partly utilize in various investments, M&A, joint venture, partnership, and operation reach in the domestic and overseas market. Yes, I'm on top of our existing working capital. GLPS has been committed to contributing in the digital trade of global finance. Let me reveal the initiatives we have done. The one is, we acquired a stake in 53.33% of MSCP investment holding limit. That is a subsidiary of Mincheng Creative Technology holding limit. This is a Hong Kong listing company. They have a lot of banking system products. Our first project is to upgrade the loan system to meet overseas bank needs and government MSA regulations. Maybe in future, we will integrate with our credit card system. Also, we will upgrade more and more bank products in the future. The truth is, we set up CLPSB Finance Holding Limited as a joint venture company with Columbus Central Development Company Private Limited. That is a blockchain technology solutions provider. It's armed to develop and upgrade blockchain-based digital asset solutions for financial institutions. such as CoastID, Exchange, Payment, and NFT distribution platform. These solutions are particularly designed for wealth management and various investment transactions, among others. The three is in order to further expand our Southeast The first, we took full advantage of our high-efficiency delivery team in Southeast Asia and our expert research and development team in China so that we can comprehensively fulfill the IT service demand on our clients in Southeast Asia.