Half Year 2023 CLPS Inc Earnings Call
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E C. L. S. P S incorporate the fiscal 'twenty 'twenty financial results.
Great could I get a first lien.
And last name.
Yeah.
And we are company with.
Great one second as I, let you for it.
We are thrilled to announce that this idea of solution was successfully implemented.
And that has proven to be beneficial economically and socially.
This solution and they also allow international financial institution to build an ecosystem around digital currency that includes services such as system development since the operation and the maintenance digital marketing and the margin expansion.
We are looking forward to working with our global partner to explore scenario based that digital commerce application scenarios and offer you also are secure calling names and assembly of financial services experience.
In the first half of 2023 self he has continued to improve cargo 2.0.
Great chips, new generation of credit because they have some product of CRP is.
Meanwhile, the new shiny reshuffling save some product at.
<unk> completed the expectation process.
So the especially at the requirement of oversea market.
We saw seasonally or provide strong support in the demand for digital transformation on credit card pool system of self yes overseas clients.
And then really enable us to help our clients get.
Satisfy the customer.
Improved online lending experiences.
And integrated digital platforms that are customer centric, where our trillions Chamberlain to.
Workflow.
We also started a new project on the newer generation of loan system.
We are currently developing a low my goodness, we've already combined our mature product, which enriches technology.
We have successfully implemented facial recognition and optical character recognition OCR into their system for loan applications identity verification.
We're in the process of event for them and the integration of natural language processing or IOP in the robotic process automation or <unk>.
Eight are already on the pipeline.
The go off this development is to achieve a more comprehensive and a streamlined alone process below including mortgage application.
Custom credit checking.
Convenient and secure long daughter, among others, you're showing the purpose and the security of information transmission, there effectively shortening the processing time.
As a result customer kind of apply for a loan come in Italy, anytime anywhere reducing banking issues as operating costs and gaining a wider range of new business opportunities.
Meanwhile.
Our typical approach, which is moving pretty cotton alone saves from ups off the core banking system.
Cruise business, the efficiency and the lowest operational costs in banking.
Several of our clients in the banking area have already recognized as a valuable ore sources for them.
Lastly, let's talk about talent development.
For almost two decades.
<unk> has been a valuable partner in developing and providing world class highly skilled talent.
For its class.
To maintain cost competitiveness.
They provide our clients with qualified under hired college ICU professionals allow is either added value services, such as technical training and career development.
We also take pride on leased contribution.
During this period, we send partnership agreement relates to oversee educational institutions.
Rich our Australian National wasn't worth it.
The public research University located in Canberra, Australia.
And the idea of kind of global economy fairly limited.
Perfect adaptation of inserting the Singapore to further broaden the scope of our children creation program and the overseas business footprint.
We are also excited to announce that you will soon be a collaboration with the city University of Hong Kong for the core banking technology and training costs.
Because as certified by the employees.
Premium bonds or E D.
A statutory body Hong Kong.
Foster sustainable development of Chinese into AG, and the banking industries.
Digital transformation initiatives.
Just a small fraction of our core market strategy.
He leaves a year of challenges and opportunities.
Alongside our therapy is continue to transform itself. We are also ready to have more clients to accelerate their business integration and operations.
Our strategy also aligned.
This our commitment to a delivery in the wave two product suited to the needs of our clients.
To offer them a full range of integrated services to their credit card credit loan and other fintech business segments.
As far as building a surpassed its exclusive financial ecosystem that'll be enable our clients within the financial industry to take digital transformation forward and achieve our top sales management.
Now I would like to turn the call over to our CFO .
To discuss the first half of our fiscal year advantage like history of financial results.
Let's go ahead.
Thank you all hiring fastener lines and pleased to announce that we declared although reflect a special cash dividend locked at December 2022.
And it has been paid out to our shareholders.
Also intend to declare a dividend in the future depending on the company's financial performance and results of operation.
Now I will provide an update on all of our financial performance for the first half of fiscal year 'twenty three.
Note that all numbers provided I knew I felt a lot of time and that all comparisons are made on radio all of what they see.
In the first half of fiscal 'twenty Congress weight, our revenues increased by their points Miami or one 1%.
Sending six eight meeting some top line.
This increase in revenue was mainly due to an increase in Iranian from IGT talking publicly.
In particular.
Revenue from IP consulting services increased by nearly one 8 million or one 2% to 72 8 million from $10 2 million.
Inquiry was due to the increased demand from existing and new clients.
And our encode Saturday delivery capability.
One was some compromise ideal solution to other states.
Take rates to buy they'll come in one meeting.
Our two apartments, 3% to straight path to meeting some straight common training with decrease was primarily due to the effect of the currency fluctuations in RMB against the U S.
All right.
Revenue from our southern States increased by <unk> 1 million.
All of them put them to work on ethylene from wellpoint in Sterling.
The increase was primarily due to the increased demand for our services.
In closing my IP consulting services.
Gross profit was $18 5 million compared to 22 countrymen.
At the operating expenses.
<unk> and marketing expenses increased by <unk> 1 million or 17, 5% to two upon stemming from two upon streaming.
As a percentage of total revenue saving and marketing expenses increased to 3.5%. Some say performed the increase was primarily due to the sales and marketing personnel related expenses.
Waves dark and development expenses incurred by <unk> 2 million or four 4% to four point from eating some $4 2 million as a percentage of avocados, Ami breakouts and development expenses increased to five 7% from $5 five.
Thank you.
The increase was primarily due to the increased research and development personnel related expenses.
Which enabled the company continuing to research and development efforts and more projects such as <unk> 2.0, and new generation of long takes time.
General and administrative expenses increased by one family.
15.6% to $10 7 million from $9 2 million.
As a percentage of total revenues.
And Amit <unk> expenses increased to 17, 9% from 12 point of 1%.
The increase was primarily due to hiring of mechanism allow employees to further drive our growth in overseas market.
Although the increase in employee salary and.
<unk> increased 80.
Asian, and amortization, resulting from the acquisition of fixed assets in Hong Kong and Singapore.
Operating income was $1 3 million compared to $7 6 million.
Total other income net of other expense was <unk> 2 million compared to the whole company total other expense net of other income in the prior year period.
Provision for income taxes decreased by <unk> 7 million towards airports to me from the airport 90.
Due to the decrease in income before taxes.
Net income was $1 4 million compared to states plenty family.
Net income attributable to Seattle, and calculations shareholders or $1 2 million compared to six policemen net cash provided by operating activities increased by 29% to $17 2 million from $13 2 million.
Yes.
As of December 31, 2022, they had a cash and cash equivalents.
Celgene installing six <unk> compared to $18 4 million as of June 32000 coming true.
And my second one 2022.
The total number of employees.
<unk> thousand 700, and fortune, one 3% year over year.
I would be covered by the short term challenges as we mentioned in our earnings release.
We remain confident about our long term business growth looking forward for fiscal year 'twenty time excuse me total sales growth was adjusted in the range of approximately 5% to 10%.
And the net income gross rent of approximately 7% to 10%.
Compared to fiscal year, 'twenty, two and financial results.
This concludes our prepared remarks, operator, we are now.
We're ready for questions.
Thank you at this time well be conducting a question and answer session.
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So we poll for questions and once again Thats star one thank you.
Thank you.
Our first question is from the line of Lucy wants because ph investors. Please proceed with your questions.
Yeah.
Congratulations on the Doe kind of tell us about that is.
Expectations for the August issue that they are unresolved and there's a potential for the lifting on the my second question is could you. Please give more color on why you are not in college degree, but during this period.
Yeah.
Okay.
And then we have a question let me take your question are we are closely working with our dealer Council and independent of the other has to ensure compliance.
Regulatory bodies are alike.
Like S E T and the Pizza L B.
Trauma laws in Miami.
He is actually emptied the LDS and agreement to access all of their networks.
Giving you an overview of the progress on August the 26 countries only true yes. He is asking me through some of your peers.
The tablet of China, and Pizza L D sand and agreements for the oversight of the corporation to blame the inspection and the amplification of the accounting firms and bilateral cooperation framework and maybe some 15 'twenty to 'twenty two the pizza LD sadly enough remember that.
And have a successful tender offer.
Except to elect David Arden from mainland, China, and Hong Kong for the first time in history of this development. We are optimistic that our listing will still impact, allowing us to provide shareholder value now reaching for pessimism about the I'll focus on our growth strategy.
To achieve our business goals.
And to answer your second question as we mentioned in our earnings release with Lopez moment of global economic growth. Our popular caused by COVID-19 has impacted our trends in core markets.
As a banking and commerce are our clients moving.
Their project.
Short term, which caused our gross margin also as a result, our rapid illustrates the last Monday and economics that stockpile change I do professional with 10 more in demand and pushed compensation costs. Furthermore, COVID-19 simulation led to us.
Input costs.
Battery into exploring straw timing changes, but in the long run a ton of those policies are guiding to a COVID-19 has dramatically changed so we are optimistic to recover and generate income.
<unk> net income going forward.
That's my answer thank you.
Okay.
Thank you.
The next question is from the line of Tomas Hernandez private Investor. Please proceed with your question.
Yes, congratulations on the results and are very happy to see the the guidance going forward I had a question on any updates on the judge I P O.
Yeah, Let me take your question.
Thank you for your question.
So far the loosening material DRG, which is a major.
Yes, I've been a big demand that there's going to be acquiring yourself.
Regulatory authority.
We believe that is a competitive advantage.
Services provided to particularly in the automotive area will bring value to shareholders.
He discussed earlier.
From automakers area increase.
About 70% and we expect that demand for ICT services.
To arrive at the 24 months.
The Lakers continues.
We will keep the public informed for any people or judge us by deal. Thank you.
Thank you.
Thank you.
At this time I will turn the floor back to management for any closing remarks.
Thank you there are no additional questions at this time I will turn the floor back to management for closing remarks.
Okay. Thank you again for joining us on today's call and we appreciate the ongoing support.
Look forward to updating you on our progress in the weeks and months ahead have a good day. Thank you.
This will conclude today's conference you may disconnect your lines at this time and thank you for your participation.
Okay.