CLPS(US:CLPS)2023-03-03 19:21Financial Data and Key Metrics Changes - In the first half of fiscal 2023, revenue increased by $0.9 million or 1.1% to $76.8 million from $75.9 million, primarily due to an increase in revenue from IT consulting services [22] - Gross profit decreased to $18.5 million compared to $22.3 million [23] - Net income was $1.4 million compared to $6.5 million, with net income attributable to CLPS shareholders at $1.3 million compared to $6.3 million [26] Business Line Data and Key Metrics Changes - Revenue from IT consulting services increased by $0.8 million or 1.2% to $72.8 million [22] - Revenue from customized IT solutions services decreased by $0.1 million or 2.3% to $3.2 million [23] - Revenue from the wealth management area increased by approximately 24% to $19 million [10] - Revenue from the e-commerce area increased by approximately 3% year-over-year in RMB terms [11] - Revenue from the automotive area increased by approximately 30% to $7 million [12] Market Data and Key Metrics Changes - Revenue in the U.S. market increased by 72% [12] - Revenue in the Japan market increased by 156% [13] - Overseas staff grew by 9% in the first half of fiscal 2023 [14] Company Strategy and Development Direction - The company focuses on four key operational areas: banking, wealth management, e-commerce, and automotive [10] - A global expansion strategy is being implemented, particularly in the U.S. and Japan [13] - The company aims to support international business and digital transformation initiatives [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term business growth despite short-term challenges [26] - The company anticipates total sales growth in the range of approximately 5% to 10% and net income growth in the range of approximately 7% to 12% for fiscal year 2023 [26] - Management is optimistic about compliance with U.S. regulatory requirements and the potential for maintaining its listing [31] Other Important Information - The company declared its first special cash dividend in December 2022 [22] - The company is developing a new generation of loan management systems incorporating advanced technologies [16][17] Q&A Session Questions and Answers Question: Can you tell us about your expectation for the audit issues that are unresolved and the potential for delisting? - The company is working closely with U.S. counsel and independent auditors to ensure compliance with U.S. regulations and is optimistic about maintaining its listing [30][31] Question: Could you provide more color on why your net income decreased during this period? - The decrease in net income was attributed to the low pace of global economic growth and increased compensation costs for IT professionals, along with the impact of COVID-19 [32] Question: Any updates on the IPO of GRT, a major subsidiary of CLPS? - The listing material for GRT is being updated based on regulatory authority requirements, and the company believes its competitive advantage in the automotive area will bring value to shareholders [35]