CLPS Incorporation Reports Financial Results for the Second Half and Full Year of Fiscal 2024
Fiscal year 2024 presented unique challenges due to global economic uncertainties and industry-wide layoffs. Despite these headwinds,
Unaudited Second Half of Fiscal 2024 Highlights (all results compared to the six months ended June 30, 2023)
- Revenue from customized IT solution services increased by 40.0% to
$1.9 million from$1.4 million . - Revenue from academic education services reached
$1.0 million during this period, as a result of theCollege of Allied Educators Pte. Ltd. ("CAE") acquisition. - Revenue generated outside of mainland
China increased by 48.0% to$13.3 million from$9.0 million . In particular:- Revenue generated from
Singapore increased by 34.3% to$6.3 million from$4.7 million . - Revenue generated from Hong Kong SAR increased by 72.0% to
$4.0 million from$2.3 million . - Revenue generated from
the United States increased by 37.9% to$2.5 million from$1.8 million .
- Revenue generated from
- Gross profit increased by 7.3% to
$17.2 million from$16.0 million . - Net loss was
$0.9 million , compared to a net loss of$1.2 million .
Audited Fiscal Year 2024 Highlights (all results compared to the twelve months ended June 30, 2023)
- Revenue generated outside of mainland
China increased by 37.9% to$22.3 million from$16.2 million . In particular:- Revenue generated from
Singapore increased by 25.8% to$11.0 million from$8.7 million . - Revenue generated from Hong Kong SAR increased by 44.9% to
$6.2 million from$4.3 million . - Revenue generated from
the United States increased by 57.2% to$4.4 million from$2.8 million .
- Revenue generated from
- Accounts receivable turnover period improved to 111 days, down from 123 days.
- Net cash provided by operating activities was
$8.9 million , representing the third consecutive fiscal year of generating positive cash flow from operations.
Mr. Raymond Lin, Chief Executive Officer of CLPS, commented, "While our financial results for this fiscal year may not have met our initial expectations, I am proud of our team's tenacity and agility in navigating a challenging market environment. Despite facing headwinds primarily due to strategic shifts by some of our clients, we have taken proactive steps to mitigate potential losses and position ourselves for long-term growth.
Our commitment to providing exceptional service to our clients has enabled us to retain our loyal client base and attract new business. Additionally, our strategic acquisition of CAE, a
Anticipating a surge in demand for IT solutions, driven by factors like accelerated digital transformation, widespread adoption of remote work, and the growing emphasis on efficient and flexible IT infrastructure by companies, we established the
Looking ahead, we remain committed to delivering long-term value to our shareholders. By continuing to focus on operational excellence, financial discipline, and strategic growth, we are confident in our ability to navigate future challenges and capitalize on emerging opportunities."
Ms. Rui Yang, Chief Financial Officer of CLPS, commented, "Our global expansion strategy has been one of the key focus during this fiscal year, resulting in a 37.9% increase in revenue generated outside of mainland
Over the past three fiscal years, we have consistently generated positive operating cash flows, demonstrating our effective cash management strategies. In this fiscal year, we improved our accounts receivable turnover period to 111 days from 123 days, enhancing our liquidity and enabling future investments and business expansion."
Unaudited Second Half of Fiscal Year 2024 Financial Results
Revenues
In the second half of fiscal 2024, revenues decreased by $2.6 million, or 3.5%, to $71.0 million from
Revenues by Service
- Revenue from IT consulting services decreased by
$4.2 million , or 5.8%, to$67.3 million in the second half of fiscal 2024, from$71.5 million in the prior year period. Revenue from IT consulting services accounted for 94.8% of total revenue, compared to 97.1% in the prior year period. The decrease was due to the decreased demand from existing clients. - Revenue from customized IT solution services increased by
$0.5 million , or 40.0%, to$1.9 million in the second half of fiscal 2024, from$1.4 million in the prior year period. Revenue from customized IT solution services accounted for 2.7% of total revenue, compared to 1.9% in the prior year period. The increase was primarily due to the increased demand from existing automotive area clients. - Revenue from academic education services was
$1.0 million , primarily due to the acquisition of CAE. - Revenue from other services decreased by
$0.1 million , or 3.1%, to$0.7 million in the second half of fiscal 2024, from$0.8 million in the prior year period. Revenue from other services accounted for 1.0% of total revenue, consistent with the prior year's 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 decreased by
$0.6 million , or 2.1% to$28.7 million in the second half of fiscal 2024, from$29.3 million in the prior year period. Revenue from banking area accounted for 40.3% and 39.8% of total revenues in the second half of fiscal 2024 and 2023, respectively. - Revenue from wealth management area decreased by
$1.6 million , or 8.5% to$17.0 million in the second half of fiscal 2024, from$18.6 million in the prior year period. Revenue from wealth management area accounted for 23.9% and 25.2% of total revenues in the second half of fiscal 2024 and 2023, respectively. - Revenue from e-Commerce area decreased by
$1.5 million , or 13.2% to$10.2 million in the second half of fiscal 2024, from$11.7 million in the prior year period. Revenue from e-Commerce area accounted for 14.3% and 16.0% of total revenues in the second half of fiscal 2024 and 2023, respectively. - Revenue from automotive area decreased by
$0.7 million , or 8.1% to$7.0 million in the second half of fiscal 2024, from$7.7 million in the prior year period. Revenue from automotive area accounted for 9.9% and 10.4% of total revenues in the second half of fiscal 2024 and 2023, respectively.
Revenues by Geography
- Revenue generated outside of mainland
China increased by 48.0% to$13.3 million in the second half of fiscal year 2024, from$9.0 million in the prior year period. The increase was primarily due to strong performance of our operations inSingapore , Hong Kong SAR and theU.S. , reflecting the Company's successful and continuous implementation of its global expansion strategy.
Gross Profit
Gross profit increased by $1.2 million, or 7.3%, to $17.2 million in the second half of fiscal 2024, from $16.0 million in the prior year period. The increase was primarily due to our efforts to optimize the cost of sales in response to the decrease in total revenue.
Operating Expenses
Selling and marketing expenses increased by $1.2 million, or 199.9%, to $1.8 million in the second half of fiscal 2024, from $0.6 million in the prior year period. As a percentage of total revenues, selling and marketing expenses increased to 2.6% in the second half of fiscal 2024, compared to 0.8% 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 $0.02 million, or 0.4%, to $3.96 million in the second half of fiscal 2024, from $3.98 million in the prior year period. As a percentage of total revenues, research and development expenses increased to 5.6% in the second half of fiscal 2024, compared to 5.4% in the prior year period. The research and development expenses approximately remained relatively stable compared to the same period last year.
General and administrative expenses increased by $3.0 million, or 27.3%, to $13.9 million in the second half of fiscal 2024, from $10.9 million in the prior year period. As a percentage of total revenues, general and administrative expenses increased to 19.6% in the second half of fiscal 2024, compared to 14.9% in the prior year period. The increase was primarily due to the establishment of our CDC and GTC, which supported our efforts to capture the anticipated growth in demand for customized IT solution services.
Operating Loss
Operating loss was $1.6 million in the second half of fiscal 2024, compared to operating loss of $1.3 million in the same period of the previous year. Operating margin was -2.3% compared to -1.7% in the prior year period.
Other Income and Expenses
Total other income, net of other expenses was $0.6 million in the second half of fiscal 2024, compared to $0.5 million total other income, net of other expenses in the same period of previous year.
(Benefit) Provision for Income Taxes
Benefit for income taxes was $0.2 million in the second half of fiscal 2024, compared to a provision for income taxes of
Net (Loss) Income and EPS
Net loss was
Non-GAAP net loss[1] was
Net loss attributable to
Non-GAAP net loss attributable to
Audited Fiscal Year 2024 Financial Results
Revenues
Revenues decreased by $7.6 million, or 5.0%, to $142.8 million in the fiscal year 2024, from
Revenues by Service
- Revenue from IT consulting services decreased by
$7.5 million , or 5.2%, to$136.8 million in the fiscal year 2024, from$144.3 million in the prior year period. Revenue from IT consulting services accounted for 95.8% of total revenue, compared to 96.0% in the prior year period. The decrease was due to the decreased demand from existing clients. - Revenue from customized IT solution services decreased by
$1.5 million , or 30.9%, to$3.1 million in the fiscal year 2024, from$4.6 million in the prior year period. Revenue from customized IT solution services accounted for 2.2% of total revenue, compared to 3.0% in the prior year period. The decrease was primarily due to the decreased demand from existing clients. - Revenue from academic education services was
$1.0 million , primarily due to the acquisition of CAE. - Revenue from other services increased by
$0.3 million , or 17.3%, to$1.8 million in the fiscal year 2024, from$1.5 million in the prior year period. Revenue from other services accounted for 1.2% of total revenue, compared to 1.0% in the prior year period. The increase was primarily due to the increased demand for other services, including software sales.
Revenues by Operational Areas
- Revenue from banking area decreased by
$4.3 million , or 7.1% to$57.2 million in the fiscal year 2024, from$61.5 million in the prior year period. Revenue from banking area accounted for 40.0% and 40.9% of total revenues in the fiscal year 2024 and 2023, respectively. - Revenue from wealth management area decreased by
$1.8 million , or 4.7% to$35.6 million in the fiscal year 2024, from$37.4 million in the prior year period. Revenue from wealth management area accounted for 24.9% of total revenues in the fiscal year 2024, consistent with the prior year's period. - Revenue from e-Commerce area decreased by
$4.3 million , or 17.0% to$21.2 million in the fiscal year 2024, from$25.5 million in the prior year period. Revenue from e-Commerce area accounted for 14.8% and 16.9% of total revenues in the fiscal year 2024 and 2023, respectively. - Revenue from automotive area increased by
$75.7 thousand , or 0.5% to$14.25 million from$14.17 million in the prior year period. Revenue from automotive area accounted for 10.0% and 9.4% of total revenues in the fiscal year 2024 and 2023, respectively.
Revenues by Geography
- Revenue generated outside of mainland
China increased by 37.9% to$22.3 million in the fiscal year 2024, from$16.2 million in the prior year period. The increase was due to strong performance of our operations inSingapore , Hong Kong SAR and theU.S. , reflecting the Company's successful and continuous implementation of its global expansion strategy.
Gross Profit
Gross profit decreased by $1.6 million, or 4.5%, to $32.9 million in the fiscal year 2024, from $34.5 million in the prior year period. The decrease was primarily attributed to a decline in total revenue.
Operating Expenses
Selling and marketing expenses increased by $1.3 million, or 38.6%, to $4.6 million in the fiscal year 2024, from $3.3 million in the prior year period. As a percentage of total revenues, selling and marketing expenses increased to 3.2% in the fiscal year 2024, compared to 2.2% 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 $1.1 million, or 14.2%, to $7.2 million in the fiscal year 2024, from $8.3 million in the prior year period. As a percentage of total revenues, research and development expenses decreased to 5.0% in the fiscal year 2024, compared to 5.5% in the prior year period. The decrease was primarily due to a strategic realignment of our R&D department.
General and administrative expenses increased by $3.5 million, or 16.1%, to $25.1 million in the fiscal year 2024, from $21.6 million in the prior year period. As a percentage of total revenues, general and administrative expenses increased to 17.6% in the fiscal year 2024, compared to 14.4% in the prior year period. The increase was primarily due to the establishment of our CDC and GTC, which supported our efforts to capture the anticipated growth in demand for customized IT solution services.
Operating (Loss) Income
Operating loss was
Other Income and Expenses
Total other income, net of other expenses was $0.70 million in the fiscal year 2024, compared to $0.69 million total other income, net of other expenses in the prior year period.
Provision for Income Taxes
Provision for income taxes was
Net (Loss) Income and EPS
Net loss was $1.8 million in the fiscal year 2024, compared to a net income of
Non-GAAP net income[1] decreased by $3.7 million, or 73.7%, to $1.3 million in the fiscal year 2024, from $5.0 million in the same period of the previous year.
Net loss attributable to
Non-GAAP net income attributable to
Cash Flow
As of June 30, 2024, the Company had cash and cash equivalents of $29.1 million compared to $22.2 million as of June 30, 2023.
Net cash provided by operating activities was $8.9 million for the twelve months ended June 30, 2024. Net cash used in investing activities was $12.3 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 2025, 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 12% to 17%, non-GAAP net income growth in the range of approximately 15% to 20% compared to fiscal year 2024 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, 2024, were translated at 7.2672 RMB to 1.00 USD compared to 7.2513 RMB to 1.00 USD as of June 30, 2023. 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, 2024 and 2023 were 7.2248 RMB to 1.00 USD and 6.9536 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
Headquartered in
Forward-Looking Statements
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's financial and operational performance in the second half and full year of fiscal 2024, 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
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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CLPS INCORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Amounts in |
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As of |
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2024 (Audited) |
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2023 (Unaudited) |
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ASSETS |
|
|
|
|
|
|
||
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Current assets: |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
|
29,116,431 |
|
|
|
35,108,870 |
|
|
Restricted cash |
|
|
24,081 |
|
|
|
89,539 |
|
|
Short-term investments |
|
|
2,100,000 |
|
|
|
- |
|
|
Accounts receivable, net |
|
|
38,779,209 |
|
|
|
39,092,817 |
|
|
Prepayments, deposits and other assets, net |
|
|
4,497,578 |
|
|
|
3,279,971 |
|
|
Amounts due from related parties |
|
|
3,559,109 |
|
|
|
465,582 |
|
|
Total Current Assets |
|
$ |
78,076,408 |
|
|
$ |
78,036,779 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current assets: |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
21,168,524 |
|
|
|
21,404,190 |
|
|
Intangible assets, net |
|
|
2,254,372 |
|
|
|
689,783 |
|
|
Operating lease right-of-use assets |
|
|
2,776,858 |
|
|
|
3,006,854 |
|
|
|
|
|
1,473,899 |
|
|
|
- |
|
|
Long-term investments |
|
|
613,807 |
|
|
|
612,843 |
|
|
Prepayments, deposits and other assets, net |
|
|
594,603 |
|
|
|
1,614,426 |
|
|
Amounts due from related parties |
|
|
2,374,298 |
|
|
|
422,541 |
|
|
Deferred tax assets, net |
|
|
697,047 |
|
|
|
115,975 |
|
|
Total Assets |
|
$ |
110,029,816 |
|
|
$ |
105,903,391 |
|
|
|
|
|
|
|
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|
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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|
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Current liabilities: |
|
|
|
|
|
|
|
|
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Bank loans |
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$ |
23,232,856 |
|
|
$ |
15,699,530 |
|
|
Accounts payable |
|
|
949,137 |
|
|
|
925,425 |
|
|
Accrued expenses and other current liabilities |
|
|
799,495 |
|
|
|
379,474 |
|
|
Tax payables |
|
|
2,351,615 |
|
|
|
1,860,960 |
|
|
Contract liabilities |
|
|
1,139,001 |
|
|
|
1,189,953 |
|
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Salaries and benefits payable |
|
|
9,941,541 |
|
|
|
13,228,752 |
|
|
Operating lease liabilities |
|
|
1,361,928 |
|
|
|
1,230,907 |
|
|
Amount due to related parties |
|
|
20,230 |
|
|
|
25,344 |
|
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Total Current Liabilities |
|
$ |
39,795,803 |
|
|
$ |
34,540,345 |
|
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Non-Current liabilities: |
|
|
|
|
|
|
|
|
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Operating lease liabilities |
|
|
1,638,243 |
|
|
|
1,906,298 |
|
|
Deferred tax liabilities |
|
|
378,344 |
|
|
|
111,057 |
|
|
Unrecognized tax benefit |
|
|
3,413,850 |
|
|
|
2,843,667 |
|
|
Other non-current liabilities |
|
|
883,963 |
|
|
|
904,793 |
|
|
Total Liabilities |
|
$ |
46,110,203 |
|
|
$ |
40,306,160 |
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Shareholders' Equity |
|
|
|
|
|
|
|
|
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Common shares, |
|
|
2,564 |
|
|
|
2,562 |
|
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Additional paid-in capital |
|
|
61,351,200 |
|
|
|
60,914,080 |
|
|
Statutory reserves |
|
|
5,553,104 |
|
|
|
5,517,142 |
|
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(Accumulated deficit) retained earnings |
|
|
(51,728) |
|
|
|
826,631 |
|
|
Accumulated other comprehensive losses |
|
|
(4,345,902) |
|
|
|
(3,116,935) |
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Total |
|
|
62,509,238 |
|
|
|
64,143,480 |
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|
|
|
|
|
|
|
|
|
|
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Noncontrolling Interests |
|
|
1,410,375 |
|
|
|
1,453,751 |
|
|
|
|
|
|
|
|
|
|
|
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Total Shareholders' Equity |
|
|
63,919,613 |
|
|
|
65,597,231 |
|
|
|
|
|
|
|
|
|
|
|
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Total Liabilities and Shareholders' Equity |
|
$ |
110,029,816 |
|
|
$ |
105,903,391 |
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CLPS INCORPORATION |
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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS |
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(Amounts in |
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For the six months ended
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|
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2024 |
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2023 |
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Revenue |
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$ |
71,038,525 |
|
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$ |
73,595,728 |
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|||||
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Cost of revenue (note 1) |
|
|
(53,841,552) |
|
|
|
(57,574,881) |
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|||||
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Gross profit |
|
|
17,196,973 |
|
|
|
16,020,847 |
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|
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|
|
|
|
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|
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|
|||||
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Operating income (expenses): |
|
|
|
|
|
|
|
|
|||||
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Selling and marketing expenses (note 1) |
|
|
(1,849,118) |
|
|
|
(616,480) |
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|||||
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Research and development expenses |
|
|
(3,961,031) |
|
|
|
(3,977,785) |
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|||||
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General and administrative expenses (note 1) |
|
|
(13,935,384) |
|
|
|
(10,946,729) |
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|||||
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Impairment of goodwill |
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|
- |
|
|
|
(2,382,538) |
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Subsidies and other operating income |
|
|
926,159 |
|
|
|
635,368 |
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Total operating expenses |
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|
(18,819,374) |
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|
|
(17,288,164) |
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|||||
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Losses from operations |
|
|
(1,622,401) |
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|
|
(1,267,317) |
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|||||
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Other income |
|
|
943,448 |
|
|
|
723,695 |
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|||||
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Other expenses |
|
|
(358,372) |
|
|
|
(246,662) |
|
|||||
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Loss before income tax and share of income in equity |
|
|
(1,037,325) |
|
|
|
(790,284) |
|
|||||
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(Benefit) provision for income taxes |
|
|
(176,838) |
|
|
|
489,148 |
|
|||||
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Loss before share of income in equity investees |
|
|
(860,487) |
|
|
|
(1,279,432) |
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|||||
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Share of income in equity investees, net of tax |
|
|
6,632 |
|
|
|
47,686 |
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|||||
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Net loss |
|
|
(853,855) |
|
|
|
(1,231,746) |
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|||||
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Less: Net loss attributable to noncontrolling interests |
|
|
(11,425) |
|
|
|
(156,845) |
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|||||
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Net loss attributable to |
|
$ |
(842,430) |
|
|
$ |
(1,074,901) |
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|||||
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|
|
|
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|
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|
|||||
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Other comprehensive loss |
|
|
|
|
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|
|
|
|||||
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Foreign currency translation loss |
|
$ |
(1,260,918) |
|
|
$ |
(2,785,938) |
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|||||
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Less: Foreign currency translation loss attributable |
|
|
(31,951) |
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|
|
(57,097) |
|
|||||
|
Other comprehensive loss attributable to |
|
$ |
(1,228,967) |
|
|
$ |
(2,728,841) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Comprehensive loss attributable to |
|
|
|
|
|
|
|
|
|||||
|
|
|
$ |
(2,071,397) |
|
|
$ |
(3,803,742) |
|
|||||
|
Comprehensive loss attributable to noncontrolling |
|
|
(43,376) |
|
|
|
(213,942) |
|
|||||
|
Comprehensive loss |
|
$ |
(2,114,773) |
|
|
$ |
(4,017,684) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Basic losses per common share |
|
$ |
(0.03) |
|
|
$ |
(0.05) |
|
|||||
|
Weighted average number of share outstanding – basic |
|
|
25,619,294 |
|
|
|
23,629,200 |
|
|||||
|
Diluted losses per common share |
|
$ |
(0.03) |
|
|
$ |
(0.05) |
|
|||||
|
Weighted average number of share outstanding – diluted |
|
|
25,619,294 |
|
|
|
23,629,200 |
|
|||||
|
Note: |
|
|
|
|
|
|
|
|
|||||
|
(1) Includes share-based compensation expenses as Cost of revenues |
|
|
5,658 |
|
|
|
5,141 |
|
|||||
|
Selling and marketing expenses |
|
|
82,615 |
|
|
|
68,969 |
|
|||||
|
General and administrative expenses |
|
|
348,850 |
|
|
|
461,114 |
|
|||||
|
|
||||||||
|
RECONCILIATION OF NON-GAAP AND GAAP RESULTS - UNAUDITED |
||||||||
|
(Amounts in |
||||||||
|
|
||||||||
|
|
|
|
|
For the six months ended |
||||
|
|
||||||||
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
$ |
(53,841,552) |
|
|
$ |
(57,574,881) |
|
Less: share-based compensation expenses |
|
|
|
(5,658) |
|
|
|
(5,141) |
|
Non-GAAP cost of revenue |
|
|
$ |
(53,835,894) |
|
|
$ |
(57,569,740) |
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
|
$ |
(1,849,118) |
|
|
$ |
(616,480) |
|
Less: share-based compensation expenses |
|
|
|
(82,615) |
|
|
|
(68,969) |
|
Non-GAAP selling and marketing expenses |
|
|
$ |
(1,766,503) |
|
|
$ |
(547,511) |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
$ |
(13,935,384) |
|
|
$ |
(10,946,729) |
|
Less: share-based compensation expenses |
|
|
|
(348,850) |
|
|
|
(461,114) |
|
Non-GAAP general and administrative |
|
|
$ |
(13,586,534) |
|
|
$ |
(10,485,615) |
|
|
|
|
|
|
|
|
|
|
|
Operating losses |
|
|
$ |
(1,622,401) |
|
|
$ |
(1,267,317) |
|
Add: share-based compensation expenses |
|
|
|
437,123 |
|
|
|
535,224 |
|
Add: Impairment of goodwill |
|
|
|
- |
|
|
|
2,382,538 |
|
Non-GAAP operating (loss) income |
|
|
$ |
(1,185,278) |
|
|
$ |
1,650,445 |
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
(2.3 %) |
|
|
|
(1.7 %) |
|
Add: share-based compensation expenses |
|
|
|
0.6 % |
|
|
|
0.7 % |
|
Add: Impairment of goodwill |
|
|
|
- |
|
|
|
3.2 % |
|
Non-GAAP operating margin |
|
|
|
(1.7 %) |
|
|
|
2.2 % |
|
|
|
|
|
|
|
|
|
|
|
Net losses |
|
|
$ |
(853,855) |
|
|
$ |
(1,231,746) |
|
Add: share-based compensation expenses |
|
|
|
437,123 |
|
|
|
535,224 |
|
Add: Impairment of goodwill |
|
|
|
- |
|
|
|
2,382,538 |
|
Non-GAAP net (loss) income |
|
|
$ |
(416,732) |
|
|
$ |
1,686,016 |
|
|
|
|
|
|
|
|
|
|
|
Net losses attributable to |
|
|
$ |
(842,430) |
|
|
$ |
(1,074,901) |
|
Add: share-based compensation expenses |
|
|
|
437,123 |
|
|
|
535,224 |
|
Add: Impairment of goodwill |
|
|
|
- |
|
|
|
2,382,538 |
|
Non-GAAP net (loss) income attributable to |
|
|
|
(405,307) |
|
|
|
1,842,861 |
|
$ |
$ |
|||||||
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share |
|
|
|
25,619,294 |
|
|
|
23,629,200 |
|
GAAP basic losses per common share |
|
|
$ |
(0.03) |
|
|
$ |
(0.05) |
|
Add: share-based compensation expenses |
|
|
|
0.01 |
|
|
|
0.13 |
|
Non-GAAP basic (loss
es
) earnings per |
|
|
$ |
(0.02) |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share |
|
|
|
25,619,294 |
|
|
|
23,629,200 |
|
Weighted average number of share |
|
|
|
25,619,294 |
|
|
|
23,629,200 |
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted losses per common share |
|
|
$ |
(0.03) |
|
|
$ |
(0.05) |
|
Add: share-based compensation expenses |
|
|
|
0.01 |
|
|
|
0.13 |
|
Non-GAAP diluted (loss
es
) earnings per |
|
|
$ |
(0.02) |
|
|
$ |
0.08 |
|
|
|||||
|
audited CONSOLIDATED BALANCE SHEETS |
|||||
|
(Amounts in |
|||||
|
|
|
|
|
|
|
|
|
As of |
||||
|
|
2024 |
|
2023 |
||
|
ASSETS |
|
|
|
||
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
29,116,431 |
|
$ |
22,214,029 |
|
Restricted cash |
|
24,081 |
|
|
87,604 |
|
Short-term investments |
|
2,100,000 |
|
|
- |
|
Accounts receivable, net |
|
38,779,209 |
|
|
48,515,467 |
|
Prepayments, deposits and other assets, net |
|
4,497,578 |
|
|
1,665,736 |
|
Amounts due from related parties |
|
3,559,109 |
|
|
391,271 |
|
Total Current Assets |
|
78,076,408 |
|
|
72,874,107 |
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
Property and equipment, net |
|
21,168,524 |
|
|
20,112,305 |
|
Intangible assets, net |
|
2,254,372 |
|
|
726,175 |
|
Goodwill |
|
1,473,899 |
|
|
- |
|
Operating lease right-of-use assets |
|
2,776,858 |
|
|
815,324 |
|
Long-term investments |
|
613,807 |
|
|
456,598 |
|
Prepayments, deposits and other assets, net |
|
594,603 |
|
|
252,656 |
|
Amounts due from related parties |
|
2,374,298 |
|
|
- |
|
Deferred tax assets, net |
|
697,047 |
|
|
81,899 |
|
Total Assets |
$ |
110,029,816 |
|
$ |
95,319,064 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Bank loans |
$ |
23,232,856 |
|
$ |
10,554,617 |
|
Accounts payable |
|
949,137 |
|
|
690,035 |
|
Accrued expenses and other current liabilities |
|
799,495 |
|
|
324,021 |
|
Tax payables |
|
2,351,615 |
|
|
2,503,375 |
|
Contract liabilities |
|
1,139,001 |
|
|
918,470 |
|
Salaries and benefits payable |
|
9,941,541 |
|
|
10,586,239 |
|
Operating lease liabilities |
|
1,361,928 |
|
|
712,302 |
|
Amounts due to related party |
|
20,230 |
|
|
24,889 |
|
Total Current Liabilities |
|
39,795,803 |
|
|
26,313,948 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Operating lease liabilities |
|
1,638,243 |
|
|
104,114 |
|
Unrecognized tax benefits |
|
3,413,850 |
|
|
2,320,918 |
|
Deferred tax liabilities |
|
378,344 |
|
|
185,382 |
|
Other non-current liabilities |
|
883,963 |
|
|
885,901 |
|
Total Liabilities |
|
46,110,203 |
|
|
29,810,263 |
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
Common shares, |
|
2,564 |
|
|
2,365 |
|
Additional paid-in capital |
|
61,351,200 |
|
|
58,183,383 |
|
Statutory reserves |
|
5,553,104 |
|
|
5,356,828 |
|
Retained earnings |
|
(51,728) |
|
|
5,029,021 |
|
Accumulated other comprehensive losses |
|
(4,345,902) |
|
|
(3,990,594) |
|
|
|
|
|
|
|
|
Total |
|
62,509,238 |
|
|
64,581,003 |
|
|
|
|
|
|
|
|
Noncontrolling Interests |
|
1,410,375 |
|
|
927,798 |
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
63,919,613 |
|
|
65,508,801 |
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
110,029,816 |
|
$ |
95,319,064 |
|
CLPS INCORPORATION |
|
|||||||
|
AUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS |
|
|||||||
|
(Amounts in |
|
|||||||
|
|
|
|||||||
|
|
|
For the years ended
|
|
|||||
|
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
|
||
|
Revenue from third parties |
|
$ |
142,725,554 |
|
|
$ |
150,298,963 |
|
|
Revenue from related party |
|
|
87,172 |
|
|
|
57,576 |
|
|
Cost of revenue from third parties (note 1) |
|
|
(109,795,857) |
|
|
|
(115,827,597) |
|
|
Cost of revenue from related party |
|
|
(69,738) |
|
|
|
(47,212) |
|
|
Gross profit |
|
|
32,947,131 |
|
|
|
34,481,730 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (expenses): |
|
|
|
|
|
|
|
|
|
Selling and marketing expenses (note 1) |
|
|
(4,573,344) |
|
|
|
(3,300,555) |
|
|
Research and development expenses |
|
|
(7,155,949) |
|
|
|
(8,336,999) |
|
|
General and administrative expenses (note 1) |
|
|
(25,120,010) |
|
|
|
(21,641,317) |
|
|
Impairment of goodwill |
|
|
- |
|
|
|
(2,382,538) |
|
|
Subsidies and other operating income |
|
|
1,363,757 |
|
|
|
1,256,070 |
|
|
Total operating expenses |
|
|
(35,485,546) |
|
|
|
(34,405,339) |
|
|
(Loss) income from operations |
|
|
(2,538,415) |
|
|
|
76,391 |
|
|
Other income |
|
|
1,251,465 |
|
|
|
1,123,612 |
|
|
Other expenses |
|
|
(556,415) |
|
|
|
(430,357) |
|
|
(Loss) income before income tax and share of |
|
|
(1,843,365) |
|
|
|
769,646 |
|
|
Provision for income taxes |
|
|
160,725 |
|
|
|
674,344 |
|
|
(Loss) income before share of income in equity |
|
|
(2,004,090) |
|
|
|
95,302 |
|
|
Share of income in equity investees, net of tax |
|
|
156,780 |
|
|
|
70,263 |
|
|
Net (loss) income |
|
|
(1,847,310) |
|
|
|
165,565 |
|
|
Less: Net income (loss) attributable to noncontrolling |
|
|
482,655 |
|
|
|
(26,964) |
|
|
Net (loss) income attributable to |
|
$ |
(2,329,965) |
|
|
$ |
192,529 |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
Foreign currency translation loss |
|
$ |
(355,386) |
|
|
$ |
(3,532,507) |
|
|
Less: Foreign currency translation loss attributable |
|
|
(78) |
|
|
|
(92,161) |
|
|
Other comprehensive loss attributable to |
|
$ |
(355,308) |
|
|
$ |
(3,440,346) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to |
|
|
|
|
|
|
|
|
|
|
|
$ |
(2,685,273) |
|
|
$ |
(3,247,817) |
|
|
Comprehensive income (loss) attributable to |
|
|
482,577 |
|
|
|
(119,125) |
|
|
Comprehensive loss |
|
$ |
(2,202,696) |
|
|
$ |
(3,366,942) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic (losses) earnings per common share |
|
$ |
(0.09) |
|
|
$ |
0.01 |
|
|
Weighted average number of share outstanding – |
|
|
25,213,012 |
|
|
|
23,153,976 |
|
|
Diluted (losses) earnings per common share |
|
$ |
(0.09) |
|
|
$ |
0.01 |
|
|
Weighted average number of share outstanding – |
|
|
25,213,012 |
|
|
|
23,153,976 |
|
|
Note: |
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expenses Cost of revenues |
|
|
11,467 |
|
|
|
16,212 |
|
|
Selling and marketing expenses |
|
|
275,562 |
|
|
|
129,060 |
|
|
General and administrative expenses |
|
|
2,880,987 |
|
|
|
2,333,024 |
|
|
|
||||||||
|
RECONCILIATION OF NON-GAAP AND GAAP RESULTS- UNAUDITED |
||||||||
|
(Amounts in |
||||||||
|
|
|
|
|
|
||||
|
|
|
|
|
For the years ended |
||||
|
|
||||||||
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
$ |
(109,865,595) |
|
|
$ |
(115,874,809) |
|
Less: share-based compensation expenses |
|
|
|
(11,467) |
|
|
|
(16,212) |
|
Non-GAAP cost of revenue |
|
|
$ |
(109,854,128) |
|
|
$ |
(115,858,597) |
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
|
$ |
(4,573,344) |
|
|
$ |
(3,300,555) |
|
Less: share-based compensation expenses |
|
|
|
(275,562) |
|
|
|
(129,060) |
|
Non-GAAP selling and marketing expenses |
|
|
$ |
(4,297,782) |
|
|
$ |
(3,171,495) |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
$ |
(25,120,010) |
|
|
$ |
(21,641,317) |
|
Less: share-based compensation expenses |
|
|
|
(2,880,987) |
|
|
|
(2,333,024) |
|
Non-GAAP general and administrative |
|
|
$ |
(22,239,023) |
|
|
$ |
(19,308,293) |
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
$ |
(2,538,415) |
|
|
$ |
76,391 |
|
Add: share-based compensation expenses |
|
|
|
3,168,016 |
|
|
|
2,478,296 |
|
Add: Impairment of goodwill |
|
|
|
- |
|
|
|
2,382,538 |
|
Non-GAAP operating income |
|
|
$ |
629,601 |
|
|
$ |
4,937,225 |
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
(1.8 %) |
|
|
|
0.1 % |
|
Add: share-based compensation expenses and |
|
|
|
2.2 % |
|
|
|
3.2 % |
|
Non-GAAP operating margin |
|
|
|
0.4 % |
|
|
|
3.3 % |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
$ |
(1,847,310) |
|
|
$ |
165,565 |
|
Add: share-based compensation expenses |
|
|
|
3,168,016 |
|
|
|
2,478,296 |
|
Add: Impairment of goodwill |
|
|
|
- |
|
|
|
2,382,538 |
|
Non-GAAP net income |
|
|
$ |
1,320,706 |
|
|
$ |
5,026,399 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to |
|
|
$ |
(2,329,965) |
|
|
$ |
192,529 |
|
Add: share-based compensation expenses |
|
|
|
3,168,016 |
|
|
|
2,478,296 |
|
Add: Impairment of goodwill |
|
|
|
- |
|
|
|
2,382,538 |
|
Non-GAAP net income attributable to |
|
|
$ |
838,051 |
|
|
$ |
5,053,363 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share outstanding |
|
|
|
25,213,012 |
|
|
|
23,153,976 |
|
GAAP basic (losses) earnings per common share |
|
|
$ |
(0.09) |
|
|
$ |
0.01 |
|
Add: share-based compensation expenses and |
|
|
|
0.12 |
|
|
|
0.21 |
|
Non-GAAP basic earnings per common share |
|
|
$ |
0.03 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share outstanding |
|
|
|
25,213,012 |
|
|
|
23,153,976 |
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted (losses) earnings per common share |
|
|
$ |
(0.09) |
|
|
$ |
0.01 |
|
Add: share-based compensation expenses and |
|
|
|
0.12 |
|
|
|
0.21 |
|
Non-GAAP diluted earnings per common share |
|
|
$ |
0.03 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-second-half-and-full-year-of-fiscal-2024-302280404.html
SOURCE
