Full Year 2021 CLPS Inc Earnings Call

October 15, 2021

Please standby.

Hello, everyone and 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. Iran. Gleacher 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 analysis second half full year fiscal 2021 financial results. This morning.

For opening remarks and introductions. Please go ahead.

Thank you operator, Hello, everyone and thank you for joining us on today's call C. O P. S. Incorporation analysis second half full year fiscal 2021 financial results. This morning.

Earnings release is now available on the company's IR website at Www Dot IR. That's C. L. P. S Global Dot Com. Before we continue please note that our discussions 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 US Securities and Exchange Commission and other and other documents filed with the US.

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 and other documents filed with the U S.

Yes.

In that respect I would like to read the following disclaimer applicable to such statements. The statements made in this discussion are forward looking statements within the meaning of protections of section 27, a of the Securities Act of 1933 as amended and section 21 E 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 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.

The statements made in this discussion are forward looking statements within the meaning of protections of section 27, a of the Securities Act of 1933 as amended and section 21 E 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 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.

Such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including without limitation, those risk 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, it's preliminary outlook. Guidance operating 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 Internet. Internet website at Www that S E C dot 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 other wise are made. All information provided today.

Guidance operating 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 Internet.

Internet website at Www that S E C. The Gulf, 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. Other wise are made all information provided today.

As of the date of this call and C. L. P. S 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 earlier this morning. Now allow me to introduce the management team on the call today, Mr. Raymond Lin Chief Executive Officer, and Director of C. L. P. S will start off the call with a review of recent company developments and operating results followed by Mr. Ray Young Chief Financial Officer of C. L. P S who will discuss financial results in more detail. Please note that all lines have been placed on mute to prevent background noise.

Now allow me to introduce the management team on the call today, Mr. Raymond Lin Chief Executive Officer, and Theyre Rector of C. L. P. S will start off the call with a review of recent company developments and operating results followed by Mr. Ray Young Chief Financial Officer of C. L. P S who will discuss.

financial results in more detail. Please note that all lines have been placed on mute to prevent background noise.

Following managements 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 C. L. P. S 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.

Hello, everyone and thanks for joining today's call. I hope each of you and your family are safe. I hope each of you and your family are safe. Into this call I'm excited to tell you about 2021 performance. Financial and business. Including our strategy [inaudible]. We are confident we further drive CLPS [inaudible].

Hello, everyone and thanks for joining today's call.

I hope each of you and your family are safe.

Although this call I'm excited to Darryl I'll walk, Brazil, yet.

Q1 performance.

Financial and business.

Parties.

We'll go to our strategy.

We are comfortable we further drive C. L. P S.

In the boat girl.

The runners Oklahoma then Collins.

Hey, Joe.

He comes with one both us and other possible yes.

Financial results. [inaudible] Our revenue increased by 41%. 100 countries $60 million. And our net income increased by [inaudible] so $7 million year over year. Although my CFO reach out we'll share with you later. Now, let me think about our strategies that contributed to our financial growth.

Financial results.

Our top line.

Our revenue increased by 41%.

100 countries $60 million.

Lola.

Our net income.

Bye.

One 100.

Hum.

7% to $7 million.

Yea over year.

Although my CFO reach out we'll share with you later.

Now, let me think about our strategies.

Contributed to our financial golf is Rachel yet.

I would like to say thank you to our more than 3000 staff. The backbone of the company's continued success. We're quickly please raise your dedication. I am more than happy that our [inaudible] is consistent every year. We also hire more it's very [inaudible] manpower, so meet the demand for IP portfolio. [inaudible] development strategy. [inaudible] our technology and product capability.

So our Walton Street.

South.

The backbone of the company's continued success.

We're quickly please raise your dedication.

I am not unhappy.

Oh, yes remedy.

Tony Golfing every year.

We also hire more it's very.

Helen accurate stages manpower, so meet the demand for IP portfolio.

I mean sure a freshman ice's represents delivery through our <unk>.

Neil.

Well now this is for Scott.

Steve.

We achieved the.

Nobody knows progress with the fulfillment of.

Our company initiatives.

So 2021.

We're at closing of the throat.

That's still our view engine development strategy.

Yeah.

What technology.

Comparability well mentioning.

The organic growth.

Of our business.

On February this year. Yes. Posted my theory. $16 million, one 6 million. So regulatory that the rights offering. Which we partly utilized in various investments [inaudible] and Operation Rich in the domestic and overseas market. [inaudible] CLPS has been committed to contributing in the digital trade.

Yes.

Posted my theory.

$16 million, one 6 million.

So regulatory that the rights offering.

Which we partly.

You're very in reference.

Hey, John.

Venter partnership.

Operation Rich in the domestic and overseas market.

Yes.

Our working.

Working capital.

Yes.

Canada, who contributing in the digital trade.

Global Finance.

Let me reveal.

Initiative, we have done.

The one is.

We acquire a stay.

[inaudible]

Got it.

Sorry, I'll move a little creative technology hold it.

This is a Hong Kong listed company.

So you have a lot of braking system products.

Our first project is to upgrade the loan system.

Overseas finance needs and government MSA regulations. Maybe in future, we will integrate with our credit card system.

Overseas Bank.

And governments unless I regulation.

Maybe in future, we will integrate with our credit card system.

Also.

We were getting more and more product in the future.

[inaudible]

So.

<unk> Finance holdings in liquor.

The joint venture company.

Choriambus central environment.

I'm a private investor.

Well Charles Technology solutions provider.

Hum.

Who develop and upgrade blockchain based digital assets solutions for financial institutions. Such as [inaudible] NFC distribution [inaudible] . This is a solution. Putting temporary [inaudible].

Financial institutions.

Such as Covid, Heidi, it's strange I email.

NFC distribution pencil.

This is a solution.

Putting temporary insanity, well mainly human.

The rest of them in context.

Okay.

Among others.

<unk>.

In order to further expand our cloud.

If you have this is the first we've put for the wrong page.

Our high efficacy BD Gregory T.

Sure Ann.

Our <unk>.

Lisa.

Relevant team in China.

Okay.

We can. I'm pretty healthily. The IGD surplus. On our Cai. The east as yet. Secondly. We set out C. L. P S. Analogy with the group cooperation. This allows us to reach a wider basis. College in this region. <unk> has no debt. It will be operational and generate revenue. Our process. So. Business activities. The market is.

I'm pretty healthily.

The IGD surplus.

On our Cai.

The east as yet.

Secondly.

We set out C. L. P S.

Analogy with the group cooperation.

This allows us to reach a wider basis.

College in this region.

<unk> has no debt.

It will be operational and generate revenue.

So.

Our process.

Business activities.

The market is.

Sure.

That's your Pacific.

Such as Singapore, Malaysia.

India, Japan.

Australia is a debate.

We will be more.

Dave.

Allowing.

Our value.

Is this location.

The fall is that.

Based on our theory.

U S food.

We will develop a new credit card system.

There's a new generation of credit card system.

It is.

Development to Hawaii.

Sub base, while credit card issuers and lifecycle management.

This has been developed.

To support all of the issuers.

On the small to large and.

Global financial.

Thanks.

And could it companies.

So our system Paas full multi currency multi.

Multi product multi.

Mountain into the future and multi language capabilities.

And managed portfolio of calls.

In country.

And plus the brand's ethos.

Denial space and you allow that localization.

Financial futures accounts structure Pi deal structure, new infrastructure and authorization based measurements.

The system architecture.

However by buildup Michael services.

And utilize concepts.

Which hawaii cost effective infrastructure.

Sure Rich high scalability.

How late.

Holliday Chief.

Unable enrolment on Ramius Cowsert rock.

Oh.

Tyler physical server.

Abi an online portal.

More than 1200 parts.

And API allow any third party system.

<unk> services.

All data flexible integration.

And now on its pilot phase the commercial worsen.

So we launched the <unk>.

And next year.

Already yes.

The five to eight.

With our high rental rates in Hong Kong and Singapore.

We have projects of this complicated.

This dislocation.

With its tongue Ken <unk>.

<unk>.

I'm a thing.

Investable assets.

And it was important.

Services delivery more efficiently.

In terms of R&D.

We continue to research in Britain.

Area.

Sadly in data engine integrated with.

Analogy.

And then compounded by data collection data analyst and decision quickly.

Yes.

Hi to improve Lasalle and marketing any purchases.

Brendan first coal.

<unk>.

While our system in isolation vapor recovery.

We plan to launch our preferred partner friendly yes.

Which is then.

Brian.

The insurance company.

And also mobile centric.

The tool.

Continually conduct research.

<unk>.

Yeah.

With more input.

In fact for.

While financial industry.

Such as a head widening.

It'll carry there.

Recognizance.

And in Michigan cognizant.

And cost is two patents are very important for utilization in France.

And we were going on to study.

Right.

Paul.

Our client base.

They're real they're Fritzl 2021.

So again I think serves us contracts in the U S with laser body I E. The e-commerce industry.

We bought I think the results, including data management.

And Ali.

And primary risk measurement.

Our international business.

You in the second half.

<unk> hundred 21, our revenue.

In Commerce area.

Yes.

100%.

In addition.

Our revenue in <unk>.

Alco motive industry right.

By 20% to $500 million.

During the remains.

For 2021.

The address summaries IC consolidated as soon as they start with us.

With the leading automotive companies.

We walk the intelligent manufacturing.

Network ecosystem machine learning.

Whereas the Coke central control system, very new Intuit link.

As you go.

Project.

Furthermore, we also under one comp rates restricting.

Others would increase our efficiency.

In the past year.

We feel the increasingly complex Asia.

So we.

Although nice companies organize things are structured.

Okay.

Somebody will region.

Industrial down the original sales pattern.

To improve the efficiency of their companies.

Sure.

At the same time we.

Uh huh.

Yes, the one class.

With expansion Expiries.

Top tier financial attributes right.

Guy and streamline our current in Vegas.

Dejectory.

But it will be meaningful.

Yeah.

We remain dedicated and.

Focus to leverage our comprehensive.

Oh My God.

As well as our new weapon.

And R&D efforts.

<unk> technology.

Such a spectator.

Now in Buckhead.

And our clients.

Don Truslow.

Foundation.

Alrighty.

We are also in process.

Yes.

Sure.

June lining our next generation <unk> system.

We have a study to reforming the Brandon Hall.

All of the.

Great.

Think about what role and high degree of automation.

Central control function.

As a result, you were.

Bank.

Also in July Sir.

The interest that is easier to risk control.

We will.

Is this new crane, so would drive our.

Yes.

Flooring business, Okay. So in other parts of southeast Asia.

In the U S.

So further push our overseas revenue.

Okay.

Great.

Lastly.

On behalf of <unk> family.

I E.

So we will continue.

In support of.

Our partners.

Shareholders.

Thank you.

No.

I would like to turn the call over to our CFO to.

To discuss.

The second half year.

Helpful.

And full year fiscal 2021 financial results.

Okay go ahead please.

Okay. Thank you. I will now provide an update on our financial performance for the second half followed by our full year results for fiscal 2021. Please note that all numbers provided are US dollars.

And that all comparations I made on a year over year basis.

In the second half of fiscal 2021, our revenues increased by 29 million or 44.6% to

Six seven policy of a meaning from 46.8 million. This increase in revenue was mainly due to an increase in revenue from it consulting services.

In particular.

Revenue from IV consulting services increased 43.2% to 65.2 million from 45.5 million. The increase was due to increased the madden for the company's IP consulting services.

Existing and new clients.

And our improved that capability of service [inaudible]

Revenue from customized the IT solution services increased 81% , 2.1 million from $1.1 million. The increase was primarily due to the increased demand from existing client. Revenue from other services increased by 139, 5%. [inaudible] The increase was primarily due to the increased demand for our services, including handling services. Gross profit increased 37.8% to $21.7 million from $15.7 million. As for operating expenses. Selling and marketing expenses increased 18, 3% from 1.7 million to 2.7 million. The increase was primarily due to the increased salary expenses. As new staff were hired to improve the company's capability of service delivery to meet clients demand. As a percentage of total revenue savings and marketing expense decreased to 2.9% from 3.5%. The decrease was primarily due to the increase in operational efficiency as a result of economics of scale. [inaudible]

Revenue from other services increased by 139, 5%.

They opened fire, meaning they.

They opened 2 million the increase was primarily due to the increased demand for our services, including handling services.

Gross profit increased 37.

So when you say one 8%.

On the $8.0 million.

Pardon the seven minutes.

As for operating expenses daily.

Selling and marketing expenses increased 18, 3% coupon to their own meaning from one 7 million. The increase was primarily geared towards the increased salary expenses.

<unk> got were hired to improve the company's capability of service delivery to meet clients we might.

As a percentage of total revenue savings and marketing expense decreased to coupon of 9% from three 5%. The decrease was primarily due to the increase in operational efficiency as a result of economics of scale.

<unk> and the weapon.

In Kuwait that 32.5% to $7.2 million from $5.4 million. Inquiry, primarily results from the establishment of new research project. And the company's continued efforts in big data cloud computing blockchain. Robotic process automation [inaudible] . And the artificial intelligence. As a percentage of total revenues research and development expense because that to 10, 6% from 11, 6%. The decrease was primarily due to the inquiry in operational efficiency as a result of economics of scale. General and administrative expense increased 20.2% to $10.2 million from eight 8.4 million. The increase was primarily due to the increase of noncash share based compensation expense. General and administrative personnel related expense. After excluding the noncash share based compensation expense. Non-GAAP general and administrative expense increased 15 pollo straight percent. So, let's say on the 6 million <unk> 7 million as a percentage of total revenue. General and administrative expense decreased to 15% from 18%. The decrease was primarily due to the increase in operational efficiency as a result of economics of scale and we find mentor Mike. Operating income increased by 417, 9%. Three for me from there upon the $7 million operating margin was five 1% compared to one 4% in the play of your peer right.

Inquiry, primarily results from the tablets.

With that project and the company is to continue with the R&D effort in big data cloud computing blockchain.

Robotic process automation and.

And the attribution intelligent.

As a percentage of total revenues research and development expense because that to 10, 6% from 11, 6%.

The decrease was primarily due to the inquiry in operational efficiency as a result of economics of scale.

General and administrative expense increased 22% to $12.0 million from eight 1 million. The increase was primarily due to the increase of noncash share based compensation expense.

General and administrative personnel related expense.

After excluding the noncash share based compensation expense.

Non-GAAP general and administrative expense increased 15 pollo straight percent.

So, let's say on the 6 million <unk> 7 million as a percentage of total revenue.

General and administrative expense decreased to 15% from 18%.

The decrease was primarily due to the increase in operational efficiency as a result of economics of scale and we find mentor Mike.

Operating income increased by 417, 9%.

Three for me from there upon the $7 million operating margin was five 1% compared to one 4% in the play of your peer right.

Total other expenses net of other income well, there opened 2 million compared to 0.5 million total other income net of other expense in the prior year. Provision for income taxes increased by 0.8 million to $1.2 million from 0.4 million. Net income up 116, 6% to 2.1 million from 0.8 million over the same period of last year. Excluding the impact of noncash share based compensation expense. Non-GAAP net income in Kuwait. His report.

5 million total other income net of other expense in the prior year a parrot.

Provision for income taxes inquiries by the up one 8 million to $3.0 million from <unk> 4 million.

Net income up 116, 6% to two upon the 1 million from <unk> 8 million over the same period of last year.

Excluding the impact of noncash share based compensation expense.

Non-GAAP net income in Kuwait.

His report.

At 1% to five seven meeting from 3.7 million after excluding the impact of <unk>.

Non controlling interest.

Net income attributable to the Lps in collaborations failure in the second half of fiscal 2021.

2.0, meaning are there upon the 11 basic and they'll upon one diluted earnings per share.

After excluding the impact of noncash share based compensation expense non.

Non-GAAP net income attributed to the [inaudible] shareholder in the second half of fiscal '21 was $5.6 million [inaudible]

<unk> earnings per share.

This is compared to a non-GAAP net income attributed to the RPX Corporation's shareholders of $8.0 million all thereupon.

Thereupon pallet, three basic and diluted earnings per share.

Now I will provide an overview of full year of fiscal 2021 [results]

For the year ended June <unk>, 2021 revenues increased 41% to.

126, 1 million from 89. 4 million. This increase in revenue was mainly due to an increase in revenue from consulting services.

Particular revenue from IT consulting services increased 20.3% to

122.3 million from 87.1 million.

The increase was due to the increased demand from existing and new clients.

Our improved capabilities.

The lower rate.

Revenue from customized IT solution services increased 69, 7%.

To 1.8 million.

The increase was primarly due to the increased demand from existing clients.

Existing clients.

Revenue from other services increased 51.5% so they opened meaning from <unk> 4 million. The increase was primarily due to the increased demand from other services, including Hudson services.

Revenue generated outside mainland China inquiry.

8.1%.

[inaudible] from 10.6 million. The increase in revenue generated outside of mainland China reflects the company's successful and the continued global expansion strategy.

Gross profit increased 29, 1% to 40. 2 million from 31.1 million. As for operating expenses. Selling and marketing expenses included 22.7% to 3.8 million from 3.1 million. The increase was primarily due to the increase. Direct expenses as new stock hard to improve the company's paper benefit of service delivery to meet client demand. As a percentage of total revenue. Selling and marketing expense decreased 2.3%. from3.4% the decrease reflects an increase in operational efficiency as a result of economics of scale. Research and development expense increased 27, 8% to $16.0 million from pinpoint for meeting the increase primarily results from the heavily mental health New research project and the company is considering the R&D effort in big data cloud compete.

2 million from 31.1 million.

As for operating expenses.

Selling and marketing expenses included plenty to call it 7% to three 8 million from three 1 million. The increase was primarily due to the increase.

Direct expenses as Neil stopped work hard to improve the company's paper benefit of service delivery to meet client demand.

As a percentage of total revenue.

And marketing expense decreased two 3%.

Re <unk>, 4% the decrease reflects an increase in operational efficiency as a result of economics of scale.

Research and development expense increased 27, 8% to $16.0 million from pinpoint for meeting the increase primarily results from the heavily mental health New research project and the company is considering the R&D effort in big data cloud compete.

<unk> block chain, a P E and the artificial intelligence.

As a percentage of total revenue.

Research and development expense decreased to 10, 6% from 11, 7%.

It could reflect an increase in operational efficiency as a result of the economics of scale.

General and administrative expense increased 2. 7%. 16, 8 million from $15.3 million. The increase was primarily due to the increase of noncash share based compensation expense.

16, 8 million from $15.3 million. The increase was primarily due to the increase of noncash share based compensation expense.

After excluding the noncash share based compensation expense non-GAAP General and [inaudible] expense decrase

6.2% to 11.8 million from 12.6 million.

As a percentage of total revenues.

And <unk> expense decreased to 13, 3% from 18, 3% the.

Decrease reflects an increase in operational efficiency as a result of economics of scale and it will be fine.

And.

Operating income increased by 161, 2%.

Two eight points, meaning from three plants to meet them all.

Operating margin was six 6% compared to three 6%.

Total other expenses net of other income what they're up $0.1 million compared to 0.5 million total other than other income net of other expense in the play a parrot.

Provision for income taxes increased by 0.5 million to 1.3 million from

Two $4.0 million from <unk>.

0.8 million.

Net income up 127, 9%.

to 7 million from $3.1 million in the prior year period.

After excluding noncash share based compensation expenses non-GAAP net income increased by $5 million all 31.5%. So top one 1 million from 7.1 million.

Excluding noncontrolling interest.

Net income attributable to CLPS Corporation shareholder for the year ended June 13, 2021, 6.8 million

Upon the 39 basic and diluted earnings per share.

Compared to net income attributed to see our paas and collaborations shareholder.

Oh.

2.9 million all they're open to a basic and diluted earnings per share.

Excluding the impact of noncash share based compensation expense.

Non-GAAP net income attributable to <unk> incorporation shareholder.

For the year ended June 30, 2021 was 11.9 million of 0.69 basic earnings per share and They're all upon the fixed pay eight diluted earnings per share.

This is compared to non-GAAP net income attributed to see Opiates and corporation shareholders.

9 million 0.47 basic and diluted earnings per share in the prior year period.

At certain times with a new one we had cash and cash equivalents of $24.7 million compared to two point of sale and meeting as of June 2020.

On June 13, 2021, we had total numbers of employees.

<unk> thousand 352.

22% year over year.

Revenue per employee up by 15.5%.

$37.6 thousand per person net income per employee up by 86, 7% to coupon of $1000 per person.

Looking forward the fiscal year 2022 brake pad total sales growth in the range of ophthalmic play.

30% to 35% and non-GAAP net income growth.

Rents are approximately 32% to 37% compared to fiscal year '21 financial results.

This concludes our prepared remarks, operator, we're now ready for questions.

Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad. If you're using a speaker phone. Please make sure your mute function is turned off to larger signal to reach our equipment. Please limit yourself to one question to allow everyone. The opportunity to ask a question.

And queue again, if you have any additional follow ups again that is star one to ask a question, we'll pause for just a moment to allow everyone an opportunity to signal.

We'll take our first question from Jaden Wang.

Okay.

Whereas relations photo remarkable.

financial results.

I have three questions. The first question is

It's a reason to economy.

Lastly, Craig Dahl in China there will be a lot more opportunities for new smaller players in China, giving your Congress.

Advantage in providing IT services to OSB clients floater, so as days in China. Has still guessing

On page in providing services to OSB clients floater, so as days in China has still guessing.

Interest and demand picked up since the large telecom me great though.

Yeah.

Hello.

This is Henry Li the company's COO.

All forward. Thanks for your question, now let me answer this question.

Our strong financial numbers for the second half and the full year of physical 2021.

consistent growth of our clients' demand.

For IP services.

Specifically in mainland China.

Although we have always pointed out that as our global expansion strategy has been very effective.

Average revenue generated from outside China increased by 28.1% year over year.

It is undeniable, that's all revenue from mainland China significantly contribute to our aggregate revenue.

And so we believe that is not so nature off taking advantage on the large checks Craig Dahl.

It tastes to competitive advantage.

We always hold on.

In addition.

The effectiveness of our dual engine growth strategy to diversify our IT production in Peru, our delivery.

Capabilities.

Domestic and international markets.

I know your highest collect loyalty.

To increase our income

Our income.

Thus bringing more benefits to all of your restaurants, including through our overall valuation.

As you have mentioned given our position.

IT service service provider.

This business opportunity as well .

Thank you and I Hope I answer your question.

Okay. Okay.

My last question is to come.

got global contract in February 2021, even though the company name was not released can you.

Right and update on the client's global Hunter?

After walking away six clients for years I'm wondering if they would consider using C. L. P. A small folger IT services, particularly Peter China Cross border transaction services under Craig's told transaction plus for the economy.

Clearly linked Creek.

The company set up linked crypto with Columbia earlier. This year would you. Please provide an update you see country exploiting the opportunities of crypto currency management further financial institutions outside of China.

Hi, Thank you for the questions. This is Wilson.

I would like to reiterate that due to the confidentiality agreements we cannot disclose the name of the client.

However, so we will leave it that way to ensure our long term and stable relationship with this client.

Hopefully you understanding our standpoint however.

Very pleased that our global expansion specifically in the U S market has already paid off because of the client. We came that went back to your questions. Our business with this client is progressive going well in addition to the current IP consulting services, we provide.

We are also exploring the possibility of providing IT solutions services for this client.

Yeah, hi, this is Rita and let me also add that this client to contribute to the rapid E. Commerce revenue in terms of operational area in the second half of fiscal year 2021 revenue from E Commerce area increased by more than 100%.

We believe that our strong delivery capabilities and advanced IT products will further depends on all of our corporation with clients. Yes. Thank you for your question.

And we'll take our next question from Jacob Kurtz with Green Ridge Global.

Okay.

Hi.

So you guys have released a series of positive announcements this year.

Stock has continued to fall why do you think that is and how do you guys think you got to turn it around.

Hello. This is APAC sorry could you repeat your question?

So you guys have released a series of positive announcements this year.

But the stock has continued to fall well why do you think that isn't how you turn it around?

Richard You want me to answer the question for you.

Hello.

Yes, let me take that.

Questions and some of the top of the stock price.

Okay.

So volatile and generally that.

Goes to the market behavior and the material has been disclosed.

Some of our strategies.

And by Mr. Raymond will continue to implement our.

And June strategies will deliver our results and value to our shareholders.

To answer your questions.

Yes.

Okay.

Thank you.

And once again that is star one to ask a question.

It appears we have no further questions at this time I would like to turn the conference back to management for any additional or closing remarks.

Kramer. Please go to your closing remarks.

Hello Raymond.

You'd like to do your closing remarks.

Okay no pressure right okay.

Okay. Thank you again for joining us on today's call and we presume you're.

Ongoing support.

We look forward to updating you.

Our progress in Italy and.

Thanks.

Have a good day everybody. Thank you.

And that does conclude today's conference. We thank you for your participation you may now disconnect.

[music].

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