HONG
KONG, Oct. 18, 2023 /PRNewswire/ -- CLPS
Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS),
today announced its financial results for the six months
ended June 30, 2023 and full year of fiscal 2023.
During this period, the global economic landscape and
international affairs have undergone remarkable transformations,
driven by various factors such as the Federal Reserve interest rate
adjustments and shifts in China's
COVID-19 policies. This unprecedented chain of events had impacted
both the macro and micro economies.
The Company experienced direct and indirect effects on its
business development, particularly concerning the impact of
exchange rate fluctuation between the RMB and the U.S. dollar,
given its reporting currency. These challenges have provided CLPS
with valuable insights and have strengthened its ability to
navigate global economic dynamics effectively.
In addition, CLPS observed short term effects that involved
gradual refinement in discretionary spending by some of its
established clients, leading to a temporary reduction in demand for
IT services, particularly in banking and e-commerce areas. However,
CLPS view this as a chance to innovate and tailor its services to
meet evolving client needs, positioning it for long-term growth and
resilience.
The increased demand for IT professionals in response to rapid
industry development and economic structural changes has naturally
driven up compensation costs. Nevertheless, CLPS proactively
addressed this issue through its Talent Creation Program and Talent
Development Program, which seamlessly integrate education,
training, and service delivery. These programs have not only
alleviated the pressure of rising labor costs but also reinforced
its commitment to nurturing top-tier talents.
Through continuous investment in advanced technology, extensive
research, and a deep understanding of its clients' needs, CLPS has
built a strong reputation in the industry, enhanced its
competitiveness, and bolstered its bargaining power over the
years.
Unaudited Second Half of Fiscal 2023 Highlights (all results
compared to the six months ended June 30, 2022)
- Revenue from wealth management area increased by 9.2% to
$18.6 million from $17.0 million.
- Revenue from automotive area increased by 42.7% to $7.7 million from $5.4
million.
- Revenue generated outside of mainland China increased by 39.0% to $9.0 million from $6.5
million.
- Operating expenses decreased by 8.2% to $17.3 million from $18.8
million.
- Net loss was $1.2 million,
compared to a net loss of $1.9
million.
Audited Fiscal Year 2023 Highlights (all results compared to
the twelve months ended June 30, 2022)
- Revenue from wealth management area increased by 16.3% to
$37.4 million from $32.1 million.
- Revenue from automotive area increased by 36.4% to $14.2 million from $10.4
million.
- Revenue generated outside of mainland China increased by 14.6% to $16.2 million from $14.1
million.
- Net cash provided by operating activities increased by
203.2% to $9.7 million from $3.2
million.
Mr. Raymond Lin, Chief Executive Officer of CLPS,
commented, "Our fiscal year 2023 witnessed a commendable upswing in
our IT consulting services revenue, driven primarily by the
remarkable growth from wealth management and automotive areas,
surging to $37.4 million and
$14.2 million, respectively. Equally
notable was our ability to attract new clients, complementing the
success story."
"One of the standout achievements this fiscal year was the 14.6%
growth in overseas revenue, which increased to $16.2 million from $14.1
million, driven by our successful global expansion
initiative. In particular, our presence in the United States grew, with revenue soaring
to $2.8 million from $0.9 million, marking an impressive 214.6%
increase. Our unwavering commitment to pursuing further expansion
opportunities in North America
underscores our global growth ambitions."
"Looking ahead in this dynamic market, we are excited to seize
the opportunities presented by the reopening of the Chinese economy
post-pandemic and our growing global presence. In addition to our
fiscal year achievements, we are delighted to commemorate our 5th
listing anniversary on Nasdaq. This milestone symbolizes our
dedication to transparency, accountability, and sustained
growth."
"As we navigate our future path, our commitment remains
unwavering in delivering innovative solutions, exceptional service,
and enduring value to our clients. As we embark on our next
chapter, we are steadfast in our pursuit of excellence and
innovation," concluded Mr. Lin.
Ms. Rui Yang, Chief Financial Officer of CLPS,
commented, "Despite operating in a challenging industry environment
and effect of currency fluctuations, CLPS delivered steady and
sustainable financial performance. Our revenue increased by 6.5% in
RMB terms, and we made progress in optimizing our expenses. Our
operating expenses decreased by 20.9% in the second half of fiscal
year 2023 and by 4.6% for the full year of fiscal 2023, excluding
the impact of the deduction of goodwill caused by low stock price.
We also saw a significant increase in our net cash from operating
activities, up by 203.2%
reinforcing our ability to capture new business opportunities and
enhanced returns for our investors. Going forward, we remain
committed to diversifying revenue streams and taking proactive
steps to create value for our shareholders."
Unaudited Second Half of Fiscal Year 2023 Financial
Results
Revenues
In the second half of fiscal 2023, revenues decreased
by $2.5 million, or 3.3%, to $73.6 million from
$76.1 million in the prior year
period. The decrease in revenue was mainly due to the decreased
demand in customized IT solution services.
Revenues by Service
- Revenue from IT consulting services decreased by $0.6 million, or 0.9%, to $71.5 million in the second half of fiscal 2023,
from $72.1 million in the prior year
period. Revenue from IT consulting services accounted for 97.1% of
total revenue, compared to 94.8% in the prior year period. The
decrease was due to the decreased demand from existing
clients.
- Revenue from customized IT solution services decreased by
$2.1 million, or 60.5%, to
$1.4 million in the second half of
fiscal 2023, from $3.5 million in the
prior year period. Revenue from customized IT solution services
accounted for 1.9% of total revenue, compared to 4.6% in the prior
year period. The decrease was primarily due to the decreased demand
from existing clients.
- Revenue from other services increased by $0.3 million, or 48.5%, to $0.8 million in the second half of fiscal 2023,
from $0.5 million in the prior year
period. Revenue from other services accounted for 1.0% of total
revenue, compared to 0.7% in the prior year period. The increase
was primarily due to the increased demand for other services,
including head hunting service.
Revenues by Operational Areas
- Revenue from banking area decreased by $3.4 million, or 10.3% to $29.3 million in the second half of fiscal 2023,
from $32.7 million in the prior year
period. Revenue from banking area accounted for 39.8% and 42.9% of
total revenues in the second half of fiscal 2023 and 2022,
respectively.
- Revenue from wealth management area increased by $1.6 million, or 9.2% to $18.6 million in the second half of fiscal 2023,
from $17.0 million in the prior year
period. Revenue from wealth management area accounted for 25.2% and
22.3% of total revenues in the second half of fiscal 2023 and 2022,
respectively.
- Revenue from e-Commerce area decreased by $3.3 million, or 21.6% to $11.7 million in the second half of fiscal 2023,
from $15.0 million in the prior year
period. Revenue from e-Commerce area accounted for 16.0% and 19.7%
of total revenues in the second half of fiscal 2023 and 2022,
respectively.
- Revenue from automotive area increased by $2.3 million, or 42.7% to $7.7 million in the second half of fiscal 2023,
from $5.4 million in the prior year
period. Revenue from automotive area accounted for 10.4% and 7.0%
of total revenues in the second half of fiscal 2023 and 2022,
respectively.
Revenues by Geography
- Revenue generated outside of mainland China increased by 39.0% to $9.0 million in the second half of fiscal year
2023, from $6.5 million in the prior
year period. The increase was primarily to the strong performance
of our operations in Hong Kong SAR and the U.S. markets.
Gross Profit
Gross profit decreased by $2.7 million, or 14.2%,
to $16.0 million in the second half of fiscal 2023,
from $18.7 million in the prior year period. The decrease
was primarily due to the decreased demand in customized IT solution
services.
Operating Expenses
Selling and marketing expenses decreased by $1.2 million,
or 66.1%, to $0.6 million in the second half of fiscal 2023,
from $1.8 million in the prior year period. As a
percentage of total revenues, selling and marketing expenses
decreased to 0.8% in the second half of fiscal 2023 compared to
2.4% in the prior year period. The decrease was primarily due to
improved efficiency in talent acquisition using an intelligent
automation solution, which helped the Company to reduce time and
cost associated with the talent acquisition process.
Research and development expenses increased by $0.2
million, or 4.8%, to $4.0 million in the second half of fiscal
2023, from $3.8 million in the prior year period. As a
percentage of total revenues, research and development expenses
increased to 5.4% in the second half of fiscal 2023 compared to
5.0% in the prior year period. The increase was primarily due to
the increased R&D personnel-related costs associated with the
Company's ongoing research and development initiatives in
cutting-edge technologies and new projects, such as AI-generated
content (AIGC), CAKU 2.0, and a new generation of loan system.
General and administrative expenses decreased by $3.0
million, or 21.1%, to $10.9 million in the second half of
fiscal 2023, from $13.9 million in the prior year period.
As a percentage of total revenues, general and administrative
expenses decreased to 14.9% in the second half of fiscal 2023
compared to 18.2% in the prior year period. The decrease was
primarily due to refined management practices in response to the
challenging industry environment, including the deduction of
share-based compensation.
Operating Loss
Operating loss was $1.3 million in the second half of
fiscal 2023, compared to operating loss of $0.2
million in the same period of the previous year. Operating
margin was -1.7% compared to -0.2% in the prior year period.
Other Income and Expenses
Total other income, net of other expenses was $0.48 million
in the second half of fiscal 2023, compared to $0.46 million
total other income, net of other expenses in the prior year
period.
Provision for Income Taxes
Provision for income taxes decreased by $1.7
million to $0.5 million in the second half of fiscal
2023, from $2.2 million in the same period of the previous
year, mainly due to a higher effective tax rate of 25.0% in the
second half of fiscal 2022, the standard statutory corporate income
tax rate in mainland China. By
renewing its High and New Technology Enterprise status in fiscal
year 2023, the Company was entitled to a corporate income tax
preferential rate of 15.0%.
Net (Loss) Income and EPS
Net loss was $1.2 million in the
second half of fiscal 2023, compared to a net loss of $1.9 million in the prior year period.
Non-GAAP net income1 was $1.7
million in the second half of fiscal 2023, compared to a
Non-GAAP net income of $2.8
million in the prior year period.
Net loss attributable to CLPS Incorporation's shareholders
was $1.1 million, or $0.05 basic and diluted losses
per share in the second half of fiscal 2023, compared to a net loss
attributable to CLPS Incorporation's shareholders of $1.8
million, or $0.08 basic and diluted losses per share in the
second half of fiscal 2022.
Non-GAAP net income attributable to CLPS Incorporation's
shareholders2 was $1.8 million,
or $0.08 basic and diluted earnings per share in the
second half of fiscal 2023, compared to non-GAAP net income
attributable to CLPS Incorporation's shareholders of $2.9
million, or $0.14 basic and diluted earnings per share in the
second half of fiscal 2022.
Audited Fiscal Year 2023 Financial Results
Revenues
Revenues decreased by $1.6 million, or 1.1%, to $150.4
million in the fiscal year 2023, from $152.0 million in the prior year period. The
decrease in revenue was mainly due to the decreased demand in
customized IT solution services.
Revenues by Service
- Revenue from IT consulting services increased by $0.2 million, or 0.1%, to $144.3 million in the fiscal year 2023, from
$144.1 million in the prior year
period. Revenue from IT consulting services accounted for 96.0% 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, and our improved service delivery capability.
- Revenue from customized IT solution services decreased by
$2.1 million, or 32.4%, to
$4.6 million in the fiscal year 2023,
from $6.7 million in the prior year
period. Revenue from customized IT solution services accounted for
3.0% of total revenue, compared to 4.4% in the prior year period.
The decrease was primarily due to the decreased demand from
existing clients.
- Revenue from other services increased by $0.3 million, or 27.2%, to $1.5 million in the fiscal year 2023, from
$1.2 million in the prior year
period. Revenue from other services accounted for 1.0% of total
revenue, compared to 0.8% in the prior year period. The increase
was primarily due to the increased demand for other services,
including head hunting services.
Revenues by Operational Areas
- Revenue from banking area decreased by $6.2 million, or 9.1% to $61.5 million in the fiscal year 2023, from
$67.7 million in the prior year
period. Revenue from banking area accounted for 40.9% and 44.5% of
total revenues in the fiscal year 2023 and 2022, respectively.
- Revenue from wealth management area increased by $5.2 million, or 16.3% to $37.4 million in the fiscal year 2023, from
$32.1 million in the prior year
period. Revenue from wealth management area accounted for 24.9% and
21.1% of total revenues in the fiscal year 2023 and 2022,
respectively.
- Revenue from e-Commerce area decreased by $3.9 million, or 13.4% to $25.5 million in the fiscal year 2023, from
$29.4 million in the prior year
period. Revenue from e-Commerce area accounted for 16.9% and 19.3%
of total revenues in the fiscal year 2023 and 2022,
respectively.
- Revenue from automotive area increased by $3.8 million, or 36.4% to $14.2 million from $10.4
million in the prior year period. Revenue from automotive
area accounted for 9.4% and 6.8% of total revenues in the fiscal
year 2023 and 2022, respectively.
Revenues by Geography
- Revenue generated outside of mainland China increased by 14.6% to $16.2 million in the fiscal year 2023, from
$14.1 million in the prior year
period. The increase was primarily to the strong performance of our
operations in Hong Kong SAR and the U.S. markets, which reflects
the Company's successful and continuous implementation of its
global expansion strategy.
Gross Profit
Gross profit decreased by $6.5 million, or 15.9%,
to $34.5 million in the fiscal year 2023, from $41.0
million in the prior year period. The decrease was primarily
due to the increase in IT professional compensation costs.
Operating Expenses
Selling and marketing expenses decreased by $0.8 million,
or 19.6%, to $3.3 million in the fiscal year 2023,
from $4.1 million in the prior year period. As a
percentage of total revenues, selling and marketing expenses
decreased to 2.2% in the fiscal year 2023 compared to 2.7% in the
prior year period. The decrease was primarily due to improved
efficiency in talent acquisition using an intelligent automation
solution, which helped the Company to reduce time and cost
associated with the talent acquisition process.
Research and development expenses increased by $0.3
million, or 4.6%, to $8.3 million in the fiscal year 2023,
from $8.0 million in the prior year period. As a
percentage of total revenues, research and development expenses
increased to 5.5% in the fiscal year 2023 compared to 5.2% in the
prior year period. The increase was primarily due to the increased
R&D personnel-related costs associated with the Company's
ongoing research and development initiatives in cutting-edge
technologies and new projects, such as AI-generated content (AIGC),
CAKU 2.0, and a new generation of loan system.
General and administrative expenses decreased by $1.4
million, or 6.1%, to $21.6 million in the fiscal year 2023,
from $23.0 million in the prior year period. As a
percentage of total revenues, general and administrative expenses
decreased to 14.4% in the fiscal year 2023 compared to 15.2% in the
prior year period. The decrease was primarily due to refined
management practices in response to the challenging industry
environment, including the deduction of share-based
compensation.
Operating Income
Operating income was $76.4
thousand, compared to an operating income of
$7.4 million in the same period
of the previous year. Operating margin was 0.1% in the fiscal year
2023, compared to 4.9% in the prior year period.
Other Income and Expenses
Total other income, net of other expenses was $0.7 million
in the fiscal year 2023, compared to $0.3 million total other
income, net of other expenses in the prior year period.
Provision for Income Taxes
Provision for income taxes decreased by $2.3
million to $0.7 million in the fiscal year 2023,
from $3.0 million in the same period of the previous year,
mainly due to a decrease in earnings before taxes. Another factor
contributing to this is the higher effective tax rate of 25.0% in
the second half of fiscal 2022, the standard statutory corporate
income tax rate in mainland China.
By renewing its High and New Technology Enterprise status in fiscal
year 2023, the Company was entitled to a corporate income tax
preferential rate of 15.0%.
Net Income and EPS
Net income decreased by $4.4 million, or 96.4%,
to $0.17 million in the fiscal year 2023, from $4.6 million in the prior year period.
Non-GAAP net income1 decreased by $6.8
million, or 57.3%, to $5.0 million in the fiscal year 2023,
from $11.8 million in the same period of the previous
year.
Net income attributable to CLPS Incorporation's shareholders
was $0.19 million, or $0.01 basic and diluted
earnings per share in the fiscal year 2023, compared to net income
attributable to CLPS Incorporation's shareholders of $4.5
million, or $0.21 basic and diluted earnings per share in
fiscal year 2022.
Non-GAAP net income attributable to CLPS Incorporation's
shareholders2 was $5.1 million, or $0.22 basic and diluted earnings per share in the
fiscal year 2023, compared to non-GAAP net income attributable to
CLPS Incorporation's shareholders of $11.6 million,
or $0.56 basic and $0.55 diluted
earnings per share in the fiscal year 2022.
Cash Flow
As of June 30, 2023, the Company
had cash and cash equivalents of $22.2 million compared to $18.4 million as of June
30, 2022.
Net cash provided by operating activities was $9.7
million for the twelve months ended June 30, 2023. Net
cash used in investing activities was $0.3 million. Net cash
used in financing activities was approximately $4.3 million. The effect of exchange rate change
on cash was approximately negative $1.2 million. The Company
believes that its current cash position and cash flow from
operations are sufficient to meet its anticipated cash needs for at
least the next 12 months.
Financial Outlook
Undeterred by the short-term challenges, we remain confident
about our long-term business growth. For fiscal year 2024, 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%, non-GAAP net income growth
in the range of approximately 12% to 17% compared to fiscal year
2023 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 June 30, 2023, were translated at 7.2513
RMB to 1.00 USD compared to 6.6981
RMB to 1.00 USD as of June 30, 2022. 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, 2023 and 2022 were 6.9536
RMB to 1.00 USD and 6.4554
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.
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 focused on delivering services primarily to global
institutions on the banking, wealth management, e-commerce, and
automotive sectors. The Company serves as an IT service provider to
a growing network of clients in the global financial service
industry, including large financial institutions in the U.S.,
Europe, Australia, Asia, and their PRC-based IT centers. The
Company maintains 20 delivery and/or research & development
centers to serve different customers in various geographic
locations. Mainland China centers
are located in Shanghai,
Beijing, Dalian, Tianjin, Xi'an, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan. The remaining 10 global centers are
located in Hong Kong SAR, USA,
Japan, Singapore, Australia, Malaysia, India, Philippines, Vietnam, and Canada. For further information regarding the
Company, please visit: https://ir.clpsglobal.com/, or
follow CLPS on Facebook,
Instagram, LinkedIn, X (formerly
Twitter), and YouTube.
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 2023, 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
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
general and administrative expenses, 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 and
impairment of goodwill. 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. 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 and impairment of goodwill. 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 and impairment of goodwill 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 and impairment of
goodwill, 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 loss/income is a non-GAAP financial measure, which is
defined as net loss/income excluding share-based compensation
expenses and impairment of goodwill. Please refer to the section
titled "Reconciliation of Non-GAAP and GAAP Results" for
details.
|
2
Non-GAAP net loss/income attributable to CLPS Incorporation's
shareholders is a non-GAAP financial measure, which is defined as
net loss/income attributable to CLPS Incorporation's shareholders
excluding share-based compensation expenses and impairment of
goodwill. Please refer to the section titled "Reconciliation of
Non-GAAP and 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,
|
|
|
|
2023
(Audited)
|
|
|
2022
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
22,214,029
|
|
|
$
|
37,551,244
|
|
Restricted
cash
|
|
|
87,604
|
|
|
|
-
|
|
Accounts receivable,
net
|
|
|
48,515,467
|
|
|
|
45,048,831
|
|
Prepayments, deposits
and other assets, net
|
|
|
1,665,736
|
|
|
|
2,963,071
|
|
Amounts due from
related parties
|
|
|
391,271
|
|
|
|
429,369
|
|
Total Current
Assets
|
|
|
72,874,107
|
|
|
|
85,992,515
|
|
|
|
|
|
|
|
|
|
|
Non-Current
assets:
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
20,112,305
|
|
|
|
20,430,216
|
|
Intangible assets,
net
|
|
|
726,175
|
|
|
|
920,605
|
|
Goodwill
|
|
|
-
|
|
|
|
2,412,933
|
|
Operating lease
right-of-use assets
|
|
|
815,324
|
|
|
|
1,282,906
|
|
Long-term
investments
|
|
|
456,598
|
|
|
|
566,522
|
|
Prepayments, deposits
and other assets, net
|
|
|
252,656
|
|
|
|
289,422
|
|
Deferred tax
assets, net
|
|
|
81,899
|
|
|
|
305,258
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
95,319,064
|
|
|
$
|
112,200,377
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Bank
loans
|
|
$
|
10,554,617
|
|
|
$
|
16,592,357
|
|
Accounts
payable
|
|
|
690,035
|
|
|
|
397,437
|
|
Accrued expenses and
other current liabilities
|
|
|
324,021
|
|
|
|
363,782
|
|
Tax payables
|
|
|
2,503,375
|
|
|
|
2,505,813
|
|
Contract
liabilities
|
|
|
918,470
|
|
|
|
2,247,687
|
|
Salaries and benefits
payable
|
|
|
10,586,239
|
|
|
|
14,928,223
|
|
Operating lease
liabilities
|
|
|
712,302
|
|
|
|
1,033,044
|
|
Amounts due to related
party
|
|
|
24,889
|
|
|
|
37,034
|
|
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
26,313,948
|
|
|
|
38,105,377
|
|
|
|
|
|
|
|
|
|
|
Non-Current
liabilities:
|
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
|
104,114
|
|
|
|
375,636
|
|
Deferred tax
liabilities
|
|
|
185,382
|
|
|
|
142,921
|
|
|
|
|
|
|
|
|
|
|
Unrecognized tax
benefit
|
|
|
2,320,918
|
|
|
|
2,271,027
|
|
Other non-current
liabilities
|
|
|
885,901
|
|
|
|
931,383
|
|
TOTAL
LIABILITIES
|
|
|
29,810,263
|
|
|
|
41,826,344
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value, 100,000,000 shares
authorized; 23,650,122 shares issued and outstanding as
of
June 30, 2023;
23,626,122 shares issued and outstanding
as of
December 31, 2022
|
|
|
2,365
|
|
|
|
2,363
|
|
Additional paid-in
capital
|
|
|
58,183,383
|
|
|
|
57,648,162
|
|
Statutory
reserves
|
|
|
5,356,828
|
|
|
|
6,498,218
|
|
Retained
earnings
|
|
|
5,029,021
|
|
|
|
6,138,216
|
|
Accumulated other
comprehensive losses
|
|
|
(3,990,594)
|
|
|
|
(1,261,753)
|
|
|
|
|
|
|
|
|
|
|
Total CLPS
Incorporation Shareholders' Equity
|
|
|
64,581,003
|
|
|
|
69,025,206
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
Interests
|
|
|
927,798
|
|
|
|
1,348,827
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders'
Equity
|
|
|
65,508,801
|
|
|
|
70,374,033
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
95,319,064
|
|
|
$
|
112,200,377
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
2023
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
|
73,595,728
|
|
|
$
|
76,100,776
|
|
|
Cost of revenues (note
1)
|
|
|
|
(57,574,881)
|
|
|
|
(57,423,736)
|
|
|
Gross
profit
|
|
|
|
16,020,847
|
|
|
|
18,677,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses (note 1)
|
|
|
|
(616,480)
|
|
|
|
(1,818,662)
|
|
|
Research and
development expenses
|
|
|
|
(3,977,785)
|
|
|
|
(3,795,772)
|
|
|
General and
administrative expenses (note 1)
|
|
|
|
(10,946,729)
|
|
|
|
(13,877,275)
|
|
|
Impairment of
goodwill
|
|
|
|
(2,382,538)
|
|
|
|
-
|
|
|
Subsidies and other
operating income
|
|
|
|
635,368
|
|
|
|
658,311
|
|
|
Total operating
expenses
|
|
|
|
(17,288,164)
|
|
|
|
(18,833,398)
|
|
|
Losses from
operations
|
|
|
|
(1,267,317)
|
|
|
|
(156,358)
|
|
|
Other
income
|
|
|
|
723,695
|
|
|
|
558,546
|
|
|
Other
expenses
|
|
|
|
(246,662)
|
|
|
|
(100,336)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before income tax and share of income in equity
investees
|
|
|
|
(790,284)
|
|
|
|
301,852
|
|
|
Provision for income
taxes
|
|
|
|
489,148
|
|
|
|
2,181,071
|
|
|
Losses before share
of losses in equity investees
|
|
|
|
(1,279,432)
|
|
|
|
(1,879,219)
|
|
|
Share of income
(loss) in equity investees, net of tax
|
|
|
|
47,686
|
|
|
|
(3,215)
|
|
|
Net
losses
|
|
|
|
(1,231,746)
|
|
|
|
(1,882,434)
|
|
|
Less: Net losses
attributable to noncontrolling interests
|
|
|
|
(156,845)
|
|
|
|
(75,398)
|
|
|
Net losses
attributable to CLPS Incorporation's
shareholders
|
|
$
|
|
(1,074,901)
|
|
|
$
|
(1,807,036)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
losses
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation losses
|
|
$
|
|
(2,785,938)
|
|
|
$
|
(2,328,918)
|
|
|
Less: Foreign currency
translation losses attributable
to noncontrolling interests
|
|
|
|
(57,097)
|
|
|
|
(63,519)
|
|
|
Other comprehensive
losses attributable to CLPS
Incorporation's shareholders
|
|
$
|
|
(2,728,841)
|
|
|
$
|
(2,265,399)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
losses attributable to
|
|
|
|
|
|
|
|
|
|
|
CLPS
Incorporation's shareholders
|
|
$
|
|
(3,803,742)
|
|
|
$
|
(4,072,435)
|
|
|
Comprehensive losses
attributable to noncontrolling
interests
|
|
|
|
(213,942)
|
|
|
|
(138,917)
|
|
|
Comprehensive
losses
|
|
$
|
|
(4,017,684)
|
|
|
$
|
(4,211,352)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic losses per common
share
|
|
$
|
|
(0.05)
|
|
|
$
|
(0.08)
|
|
|
Weighted average number
of share outstanding – basic
|
|
|
|
23,629,200
|
|
|
|
21,484,828
|
|
|
Diluted losses per
common share
|
|
$
|
|
(0.05)
|
|
|
$
|
(0.08)
|
|
|
Weighted average number
of share outstanding – diluted
|
|
|
|
23,629,200
|
|
|
|
21,484,828
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes share-based compensation
expenses as
follows:
Cost of
revenues
|
|
|
|
5,141
|
|
|
|
13,983
|
|
|
Selling and marketing
expenses
|
|
|
|
68,969
|
|
|
|
55,834
|
|
|
General and
administrative expenses
|
|
|
|
461,114
|
|
|
|
4,646,944
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2023
|
|
|
|
2022
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
$
|
(57,574,881)
|
|
|
$
|
(57,423,736)
|
Less: share-based
compensation expenses
|
|
|
|
(5,141)
|
|
|
|
(13,983)
|
Non-GAAP cost of
revenues
|
|
|
$
|
(57,569,740)
|
|
|
$
|
(57,409,753)
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
$
|
(616,480)
|
|
|
$
|
(1,818,662)
|
Less: share-based
compensation expenses
|
|
|
|
(68,969)
|
|
|
|
(55,834)
|
Non-GAAP selling and
marketing expenses
|
|
|
$
|
(547,511)
|
|
|
$
|
(1,762,828)
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
$
|
(10,946,729)
|
|
|
$
|
(13,877,275)
|
Less: share-based
compensation expenses
|
|
|
|
(461,114)
|
|
|
|
(4,646,944)
|
Non-GAAP general and
administrative expenses
|
|
|
$
|
(10,485,615)
|
|
|
$
|
(9,230,331)
|
|
|
|
|
|
|
|
|
|
Operating
losses
|
|
|
$
|
(1,267,317)
|
|
|
$
|
(156,358)
|
Add: share-based
compensation expenses
|
|
|
|
535,224
|
|
|
|
4,716,761
|
Add:
Impairment of goodwill
|
|
|
|
2,382,538
|
|
|
|
-
|
Non-GAAP operating
income
|
|
|
$
|
1,650,445
|
|
|
$
|
4,560,403
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
(1.7 %)
|
|
|
|
(0.2 %)
|
Add: share-based
compensation expenses
|
|
|
|
0.7 %
|
|
|
|
6.2 %
|
Add: Impairment
of goodwill
|
|
|
|
3.2 %
|
|
|
|
-
|
Non-GAAP operating
margin
|
|
|
|
2.2 %
|
|
|
|
6.0 %
|
|
|
|
|
|
|
|
|
|
Net losses
|
|
|
$
|
(1,231,746)
|
|
|
$
|
(1,882,434)
|
Add: share-based
compensation expenses
|
|
|
|
535,224
|
|
|
|
4,716,761
|
Add:
Impairment of goodwill
|
|
|
|
2,382,538
|
|
|
|
-
|
Non-GAAP net
income
|
|
|
$
|
1,686,016
|
|
|
$
|
2,834,327
|
|
|
|
|
|
|
|
|
|
Net losses attributable
to CLPS Incorporation's
shareholders
|
|
|
$
|
(1,074,901)
|
|
|
$
|
(1,807,036)
|
Add: share-based
compensation expenses
|
|
|
|
535,224
|
|
|
|
4,716,761
|
Add:
Impairment of goodwill
|
|
|
|
2,382,538
|
|
|
|
-
|
Non-GAAP net income
attributable to CLPS
Incorporation's shareholders
|
|
|
|
1,842,861
|
|
|
|
2,909,725
|
$
|
$
|
|
|
|
|
|
|
|
|
|
Weighted average number
of share
outstanding used in computing GAAP and non-
GAAP basic earnings
|
|
|
|
23,629,200
|
|
|
|
21,484,828
|
GAAP basic losses per
common share
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.08)
|
Add: share-based
compensation expenses
|
|
|
|
0.13
|
|
|
|
0.22
|
Non-GAAP basic
earnings per common share
|
|
|
$
|
0.08
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
Weighted average number
of share
outstanding used in computing GAAP diluted
earnings
|
|
|
|
23,629,200
|
|
|
|
21,484,828
|
Weighted average number
of share
outstanding used in computing non-GAAP
diluted earnings
|
|
|
|
23,629,200
|
|
|
|
21,522,447
|
|
|
|
|
|
|
|
|
|
GAAP diluted losses per
common share
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.08)
|
Add: share-based
compensation expenses
|
|
|
|
0.13
|
|
|
|
0.22
|
Non-GAAP diluted
earnings per common
share
|
|
|
$
|
0.08
|
|
|
$
|
0.14
|
CLPS INCORPORATION
audited
CONSOLIDATED BALANCE SHEETS
(Amounts in
U.S. dollars ("$"), except for number of shares)
|
|
|
|
|
|
As of June
30,
|
|
|
|
2023
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
22,214,029
|
|
|
$
|
18,396,987
|
|
Restricted
cash
|
|
|
87,604
|
|
|
|
-
|
|
Accounts receivable,
net
|
|
|
48,515,467
|
|
|
|
53,769,887
|
|
Prepayments, deposits
and other assets, net
|
|
|
1,665,736
|
|
|
|
4,215,414
|
|
Amounts due from
related parties
|
|
|
391,271
|
|
|
|
377,642
|
|
Total Current
Assets
|
|
|
72,874,107
|
|
|
|
76,759,930
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
20,112,305
|
|
|
|
20,601,098
|
|
Intangible assets,
net
|
|
|
726,175
|
|
|
|
970,044
|
|
Goodwill
|
|
|
-
|
|
|
|
2,363,841
|
|
Operating lease
right-of-use assets
|
|
|
815,324
|
|
|
|
-
|
|
Long-term
investments
|
|
|
456,598
|
|
|
|
610,386
|
|
Prepayments, deposits
and other assets, net
|
|
|
252,656
|
|
|
|
248,456
|
|
Deferred tax assets,
net
|
|
|
81,899
|
|
|
|
327,040
|
|
Total
Assets
|
|
$
|
95,319,064
|
|
|
$
|
101,880,795
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Bank loans
|
|
$
|
10,554,617
|
|
|
$
|
14,474,363
|
|
Accounts
payable
|
|
|
690,035
|
|
|
|
343,597
|
|
Accrued expenses and
other current liabilities
|
|
|
324,021
|
|
|
|
352,402
|
|
Tax payables
|
|
|
2,503,375
|
|
|
|
2,355,066
|
|
Contract
liabilities
|
|
|
918,470
|
|
|
|
587,140
|
|
Salaries and benefits
payable
|
|
|
10,586,239
|
|
|
|
12,203,933
|
|
Operating lease
liabilities
|
|
|
712,302
|
|
|
|
-
|
|
Amounts due to related
party
|
|
|
24,889
|
|
|
|
66,884
|
|
Total Current
Liabilities
|
|
|
26,313,948
|
|
|
|
30,383,385
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
|
104,114
|
|
|
|
-
|
|
Unrecognized tax
benefits
|
|
|
2,320,918
|
|
|
|
2,587,194
|
|
Deferred tax
liabilities
|
|
|
185,382
|
|
|
|
150,547
|
|
Other non-current
liabilities
|
|
|
885,901
|
|
|
|
959,069
|
|
TOTAL
LIABILITIES
|
|
|
29,810,263
|
|
|
|
34,080,195
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Common
stock, $0.0001 par value, 100,000,000 shares
authorized; 23,650,122 shares issued and outstanding
as of
June 30, 2023;
22,444,822 shares issued and outstanding
as
of June 30, 2022
|
|
|
2,365
|
|
|
|
2,244
|
|
Additional paid-in
capital
|
|
|
58,183,383
|
|
|
|
55,705,209
|
|
Statutory
reserves
|
|
|
5,356,828
|
|
|
|
5,071,876
|
|
Retained
earnings
|
|
|
5,029,021
|
|
|
|
6,323,792
|
|
Accumulated other
comprehensive losses
|
|
|
(3,990,594)
|
|
|
|
(550,248)
|
|
|
|
|
|
|
|
|
|
|
Total CLPS
Incorporation's Shareholders' Equity
|
|
|
64,581,003
|
|
|
|
66,552,873
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
Interests
|
|
|
927,798
|
|
|
|
1,247,727
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders'
Equity
|
|
|
65,508,801
|
|
|
|
67,800,600
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
95,319,064
|
|
|
$
|
101,880,795
|
|
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,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
Revenue
from third parties
|
|
$
|
150,298,963
|
|
|
$
|
151,970,357
|
|
Revenue from related
parties
|
|
|
57,576
|
|
|
|
52,024
|
|
Cost of revenue from
third parties (note 1)
|
|
|
(115,827,597)
|
|
|
|
(110,989,394)
|
|
Cost of revenue from
related parties
|
|
|
(47,212)
|
|
|
|
(43,951)
|
|
Gross profit
|
|
|
34,481,730
|
|
|
|
40,989,036
|
|
|
|
|
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses (note 1)
|
|
|
(3,300,555)
|
|
|
|
(4,103,066)
|
|
Research and
development expenses
|
|
|
(8,336,999)
|
|
|
|
(7,971,145)
|
|
General and
administrative expenses (note 1)
|
|
|
(21,641,317)
|
|
|
|
(23,045,664)
|
|
Impairment of goodwill
|
|
|
(2,382,538)
|
|
|
|
-
|
|
Subsidies and other operating income
|
|
|
1,256,070
|
|
|
|
1,536,394
|
|
Total operating
expenses
|
|
|
(34,405,339)
|
|
|
|
(33,583,481)
|
|
Income from operations
|
|
|
76,391
|
|
|
|
7,405,555
|
|
Other income
|
|
|
1,123,612
|
|
|
|
854,250
|
|
Other
expenses
|
|
|
(430,357)
|
|
|
|
(575,605)
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax and share of income
in
equity investees
|
|
|
769,646
|
|
|
|
7,684,200
|
|
Provision for income
taxes
|
|
|
674,344
|
|
|
|
3,045,992
|
|
Income before share
of income in equity investees
|
|
|
95,302
|
|
|
|
4,638,208
|
|
Share of
income (loss) in equity investees, net of tax
|
|
|
70,263
|
|
|
|
(50,297)
|
|
Net income
|
|
|
165,565
|
|
|
|
4,587,911
|
|
Less: Net (loss)
income attributable to noncontrolling
interests
|
|
|
(26,964)
|
|
|
|
132,483
|
|
Net income attributable to CLPS Incorporation's
shareholders
|
|
$
|
192,529
|
|
|
$
|
4,455,428
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation losses
|
|
$
|
(3,532,507)
|
|
|
$
|
(1,828,542)
|
|
Less: Foreign
currency translation losses
attributable
to noncontrolling interests
|
|
|
(92,161)
|
|
|
|
(48,211)
|
|
Other comprehensive
losses attributable to CLPS
Incorporation's shareholders
|
|
$
|
(3,440,346)
|
|
|
$
|
(1,780,331)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income attributable
to
|
|
|
|
|
|
|
|
|
CLPS
Incorporation's
shareholders
|
|
$
|
(3,247,817)
|
|
|
$
|
2,675,097
|
|
Comprehensive (loss)
income attributable to
noncontrolling interests
|
|
|
(119,125)
|
|
|
|
84,272
|
|
Comprehensive (loss) income
|
|
$
|
(3,366,942)
|
|
|
$
|
2,759,369
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
|
$
|
0.01
|
|
|
$
|
0.21
|
|
Weighted average
number of share outstanding –
basic
|
|
|
23,153,976
|
|
|
|
20,924,683
|
|
Diluted earnings per
common share
|
|
$
|
0.01
|
|
|
$
|
0.21
|
|
Weighted average
number of share outstanding –
diluted
|
|
|
23,153,976
|
|
|
|
21,057,063
|
|
Note:
|
|
|
|
|
|
|
|
|
(1)
Includes share-based compensation expenses
as follows:
Cost of
revenues
|
|
|
16,212
|
|
|
|
36,906
|
|
Selling and
marketing expenses
|
|
|
129,060
|
|
|
|
165,209
|
|
General and
administrative expenses
|
|
|
2,333,024
|
|
|
|
6,982,747
|
|
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,
|
|
|
|
|
2023
|
|
|
|
2022
|
(Audited)
|
(Audited)
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
$
|
(115,874,809)
|
|
|
$
|
(111,033,345)
|
Less: share-based
compensation expenses
|
|
|
|
(16,212)
|
|
|
|
(36,906)
|
Non-GAAP cost of
revenues
|
|
|
$
|
(115,858,597)
|
|
|
$
|
(110,996,439)
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
$
|
(3,300,555)
|
|
|
$
|
(4,103,066)
|
Less: share-based
compensation expenses
|
|
|
|
(129,060)
|
|
|
|
(165,209)
|
Non-GAAP selling and
marketing expenses
|
|
|
$
|
(3,171,495)
|
|
|
$
|
(3,937,857)
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
$
|
(21,641,317)
|
|
|
$
|
(23,045,664)
|
Less: share-based
compensation expenses
|
|
|
|
(2,333,024)
|
|
|
|
(6,982,747)
|
Non-GAAP general and
administrative
expenses
|
|
|
$
|
(19,308,293)
|
|
|
$
|
(16,062,917)
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
$
|
76,391
|
|
|
$
|
7,405,555
|
Add: share-based
compensation expenses
|
|
|
|
2,478,296
|
|
|
|
7,184,862
|
Add:
Impairment of goodwill
|
|
|
|
2,382,538
|
|
|
|
-
|
Non-GAAP operating
income
|
|
|
$
|
4,937,225
|
|
|
$
|
14,590,417
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
0.1 %
|
|
|
|
4.9 %
|
Add: share-based
compensation expenses
|
|
|
|
3.2 %
|
|
|
|
4.7 %
|
Non-GAAP operating
margin
|
|
|
|
3.3 %
|
|
|
|
9.6 %
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
165,565
|
|
|
$
|
4,587,911
|
Add: share-based
compensation expenses
|
|
|
|
2,478,296
|
|
|
|
7,184,862
|
Add:
Impairment of goodwill
|
|
|
|
2,382,538
|
|
|
|
-
|
Non-GAAP net
income
|
|
|
$
|
5,026,399
|
|
|
$
|
11,772,773
|
|
|
|
|
|
|
|
|
|
Net income attributable
to CLPS Incorporation's
shareholders
|
|
|
$
|
192,529
|
|
|
$
|
4,455,428
|
Add: share-based
compensation expenses
|
|
|
|
2,478,296
|
|
|
|
7,184,862
|
Add:
Impairment of goodwill
|
|
|
|
2,382,538
|
|
|
|
-
|
Non-GAAP net income
attributable to CLPS
Incorporation's shareholders
|
|
|
$
|
5,053,363
|
|
|
$
|
11,640,290
|
|
|
|
|
|
|
|
|
|
Weighted average number
of share outstanding
used in computing GAAP and non-GAAP basic
earnings
|
|
|
|
23,153,976
|
|
|
|
20,924,683
|
GAAP basic earnings per
common share
|
|
|
$
|
0.01
|
|
|
$
|
0.21
|
Add: share-based
compensation expenses
|
|
|
|
0.21
|
|
|
|
0.35
|
Non-GAAP basic
earnings per common share
|
|
|
$
|
0.22
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
Weighted average number
of share outstanding
used in computing GAAP and non-GAAP diluted
earnings
|
|
|
|
23,153,976
|
|
|
|
21,057,063
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings
per common share
|
|
|
$
|
0.01
|
|
|
$
|
0.21
|
Add: share-based
compensation expenses
|
|
|
|
0.21
|
|
|
|
0.34
|
Non-GAAP diluted
earnings per common share
|
|
|
$
|
0.22
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-second-half-and-full-year-of-fiscal-2023-301960649.html
SOURCE CLPS