HONG KONG, Dec. 29, 2020 /PRNewswire/ -- CLPS Incorporation (Nasdaq: CLPS) ("CLPS" or "the Company"), today announced that, through its indirectly wholly owned subsidiary, CLPS Technology (Singapore) Pte. Ltd., it has acquired the remaining 20% ownership stake in Ridik Pte. Ltd. ("Ridik"), a Singapore-based IT services company in which CLPS initially acquired 80% equity in September 2019. As a result, Ridik is now a wholly owned subsidiary of CLPS.
CLPS has achieved significant growth in the Southeast Asia market since the initial acquisition of Ridik. For the year ended June 30, 2020, revenue generated from Singapore increased by 191.8% to $7.37 million compared to the previous year period. With Ridik's financial growth contribution and business development potential, it will further drive the Company's global expansion strategy, including healthier overseas financial performance.
Following the completion of Ridik acquisition, CLPS plans to set up Singapore as its Southeast Asia headquarters, which will serve as the springboard for market expansion and business development opportunities in the region.
Mr. Srustijeet Mishra, Chief Executive Officer of CLPS SEA Region, commented, "We have achieved significant progress in the Southeast Asia market since our partnership with CLPS and we are looking forward to strengthening our business performance and relationship with the Company as a wholly owned subsidiary. Being fully absorbed by CLPS, we will be on a better position to leverage its resources and industry expertise to grow and expand our business and client base not only in the Southeast Asia, but also in other parts of Asia Pacific region."
Mr. Henry Li, Chief Operating Officer of CLPS, added, "Southeast Asia has been an important market in CLPS's global expansion strategy. As a wholly owned subsidiary, Ridik will enable us to fully integrate our business in Southeast Asia, which will further advance our business expansion in the global market. In addition, we are committed to investing for resources, such as technological and management innovation, enhanced overseas business model, and value-added services to our existing and potential clients. Our streamlined plan will put us in a strategic position to deliver efficient and quality services and achieve client satisfaction in the Southeast Asia region."
Further information about CLPS's initial acquisition of Ridik's 80% equity was disclosed in the press release dated September 27, 2019:
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.
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.
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