Business
CLPS Incorporation Reports Financial Results for the First Half of Fiscal Year 2023
HONG KONG, March 3, 2023 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced its unaudited financial results for the
About this update from Clps Incorporation
[{"type":"text","content":"HONG KONG, March 3, 2023 /PRNewswire/ -- CLPS Incorporation (the \"Company\" or \"CLPS\") (Nasdaq: CLPS), today announced its unaudited financial results for the six months ended December 31, 2022, or the first half of the Company's fiscal year 2023.\nDuring this period, the global economy and international affair conditions have changed considerably, including the Federal Reserve interest rate hikes and changes in China's COVID conditions and policies, among others. This unprecedented chain of events had impacted both the macro and micro economies. The Company experienced direct and indirect effects on its business development, including the impact of exchange rate fluctuation between the RMB and the U.S. dollar since we are reporting in U.S. dollar term.\nThe sluggish global economic growth partly caused by COVID-19 had impacted CLPS' clients in core markets, such as banking and e-commerce. Short term effects include clients cutting their budgets and reducing demand for IT services, which lessened the business growth opportunity for CLPS during the first half of fiscal year 2023. In addition, as part of China's COVID-19 epidemic prevention policy, the affected employees of CLPS were isolated, and those who were symptomatic could not work, leading to an increase in costs and a slowdown in revenue growth. In spite of this challenge, the Company responded by strengthening its client relationships, refining its management, expanding its client base actively, and providing support for its affected employees.\nAs a result of rapid industry development and economic structure changes, IT professionals became more in demand, which pushed up compensation costs. Through the Talent Creation Program and Talent Development Program, CLPS was able to integrate education, training, and delivery, easing the pressure of this challenge.\nThrough the development of its own projects enabled by advanced technology, extensive research, and understanding the needs of its clients, the Company has built a strong reputation in the industry, gained competitiveness, and boosted its bargaining power over the years.\nFirst Half of Fiscal 2023 Highlights (all results compared to the six months ended December 31, 2021) \nRevenues increased by 1.1% to $76.8 million from $75.9 million.Revenue from wealth management area increased by 24.3% to $18.8 million from $...