CLPS Incorporation Invests in E-Commerce to Diversify Its Business Model

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Jan 22, 2021, 08:00 ET

HONG KONG, Jan. 22, 2021 /PRNewswire/ -- CLPS Incorporation (Nasdaq: CLPS) ("CLPS" or "the Company"), today announced its strategic investment, through its wholly owned subsidiary, ChinaLink Professional Services Co. Ltd., in Shanghai Shier Information Technology Co., Ltd. ("SSIT"), an e-commerce services provider. CLPS has indirectly taken 35% ownership stake in SSIT as part of the Company's growth strategy to diversify its business model.

SSIT develops and offers e-commerce platform products integrated with rebate program as its main and unique feature. Its products include the "Group Store", an online one-stop shop platform exclusive for an enterprise's employees; and "Duoshouji", a mobile application available for all Android and iOS users. SSIT has partnered with over 10 leading e-commerce companies, catering to hundreds of brands in China and to its over 100,000 registered users, of which more than 50% are active users. SSIT has attracted a large scale, long standing, and loyal customer base as a result of its well-received platform among the enterprises' users.

The advent of mobile internet and 5G technology defines the ever-changing trend for acquiring online traffic. This trend is expected to be a more efficient way compared to traditional and costly methods such as search engine optimization (SEO), search engine marketing (SEM) and social media promotion, among others.

Over the years, CLPS has been focused on the business-to-business (B2B) model, and its partnership with SSIT now paves the way to penetrate the business-to-consumer (B2C) through enterprise employee data outreach. In addition, CLPS and SSIT have agreed to integrate more financial products and services into the Group Store as part of an enterprise's development strategy, leveraging the Company's expertise in the financial industry.

Mr. Henry Li, Chief Operating Officer of CLPS, said, "The investment in SSIT marks our attempt to enter the B2C business. We are optimistic that this investment will not only generate and improve our financials, but will also complement the respective competitive advantage in B2B and B2C to build an online traffic platform, a new engine of attracting potential clients and a vehicle to fulfill our future business model diversification."

About CLPS Incorporation

Headquartered in Hong Kong, CLPS Incorporation (the "Company") (Nasdaq: CLPS) is a global leading information technology ("IT"), consulting and solutions service provider focusing on the banking, insurance and financial sectors. The Company serves as an IT solutions provider to a growing network of clients in the global financial industry, including large financial institutions in the US, Europe, Australia, Southeast Asia and Hong Kong, and their PRC-based IT centers. The Company maintains 18 delivery and/or research & development centers to serve different customers in various geographic locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Baoding, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Suzhou. The remaining eight global centers are located in Hong Kong SAR, USA, UK, Japan, Singapore, Malaysia, Australia, and India. For further information regarding the Company, please visit: http://ir.clpsglobal.com/, or follow CLPS on Facebook, LinkedIn, and Twitter.

Forward-Looking Statements

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and 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. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's financial and operational performance in the second half and full year of fiscal 2020, its expectations of the Company's future performance, its preliminary outlook and guidance offered 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 SEC's Internet website at http://www.sec.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 otherwise are made.

Contact:

CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: [email protected]

SOURCE CLPS