Benzinga | Aug 6, 2021 08:35AM EDT

CLPS Incorporation Chairman Issues Letter To Shareholders

CLPS Incorporation (Nasdaq: CLPS) ("CLPS" or "the Company"), today released a letter to shareholders from the Chairman of the Company's Board of Directors (the "Board"), the full text of which is provided below. All CLPS shareholders are encouraged to read it.

Dear Shareholders,

Headquartered in Hong Kong, CLPS is an information technology services provider dedicated to serving the global IT market demand. I would like to share and highlight the following information about CLPS in light of the recent market news:

2 CLPS complies and remains transparent with its corporate governance. CLPS is neither structured as a variable interest entity (VIE) nor involved in any transaction as such;

4 CLPS has been actively conducting non-profit talent training programs in cooperation with universities in China and globally to develop more financial IT talents;

6 CLPS sees to it that its business client's confidentiality clause is strictly adhered to including data protection to avoid any cybersecurity risk.

CLPS ramps up its global expansion strategy to broaden its overseas footprint. For the six months ended December 31, 2020, CLPS reported a 53.9% increase in revenue generated outside of Mainland China, to $6.6 million compared to the prior year period. In addition, we are actively building up our overseas partnerships. We signed a strategic cooperation framework agreement with Tongdun International Pte. Ltd. to jointly promote commercial financial software and solutions in Southeast Asian market. We also extended our partnership with Yonyou (Hong Kong) Company Limited to offer enterprise cloud-based products and services to the overseas market.

Our mergers and acquisitions momentum continued at strong pace to further enhance our solution delivery capabilities. On July 26, 2021, CLPS set up LinkCrypto Finance Technology Limited ("LinkCrypto"), its first joint venture company that focuses on blockchain technology. CLPS and Columbus Century Development Co., Pte. Ltd. hold 55% and 45% equity stake in LinkCrypto, respectively. Under the joint venture, both parties will jointly develop and upgrade blockchain-based solutions for financial institutions. Through strategic cooperation, CLPS holds 53.33% equity stake in one of the wholly-owned subsidiaries of Minshang Creative Technology Holdings Limited, a Hong Kong listed company, to launch a next generation loan trading software in Hong Kong and Southeast Asia region. CLPS also invested 15% equity stake in Beijing UniDev Software Co., Ltd., a Beijing-based IT services and solutions provider.

On top of our excellent corporate governance and competitive advantage, we will continue to pursue our endeavor of sustainable and profitable growth as vehicles for bringing long term values to our shareholders.

On behalf of the CLPS family, I would like to thank our employees, partners, and shareholders for the unwavering support and confidence to CLPS.

With sincerity and determination,

Xiao Feng Yang

Chairman of the Board

CLPS Incorporation