CLPS Inc. Files 2024 Annual Report

Ticker: CLPS · Form: 20-F · Filed: Oct 18, 2024 · CIK: 1724542

Clps INC 20-F Filing Summary
FieldDetail
CompanyClps INC (CLPS)
Form Type20-F
Filed DateOct 18, 2024
Risk Levellow
Pages15
Reading Time18 min
Key Dollar Amounts$0.0001, $152.0 million, $150.4 million, $142.8 million
Sentimentneutral

Sentiment: neutral

Topics: annual-report, 20-f, company-filing

TL;DR

CLPS Inc. filed its 2024 20-F, covering its fiscal year ending June 30. Check it for company financials.

AI Summary

CLPS Inc. filed its annual report on Form 20-F for the fiscal year ended June 30, 2024. The company, incorporated in the Cayman Islands, is based in Hong Kong and operates in the prepackaged software services sector. The filing details its corporate structure and business operations.

Why It Matters

This filing provides investors with a comprehensive overview of CLPS Inc.'s financial performance and business operations for the past fiscal year, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a standard annual report filing and does not contain new material events or significant financial disclosures that would indicate a change in risk.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of CLPS Inc. as indicated in the filing?

CLPS Inc. is primarily involved in Services-Prepackaged Software, as indicated by its Standard Industrial Classification code [7372].

Where is CLPS Inc. incorporated?

CLPS Inc. is incorporated in the Cayman Islands.

What is the commission file number for CLPS Inc.?

The commission file number for CLPS Inc. is 001-38505.

What is the fiscal year end date for CLPS Inc.?

The fiscal year end date for CLPS Inc. is June 30.

What is the business address of CLPS Inc.?

The business address of CLPS Inc. is Unit 1102, 11th Fl, Millennium City 3, 370 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong SAR.

Filing Stats: 4,456 words · 18 min read · ~15 pages · Grade level 12.2 · Accepted 2024-10-18 08:39:52

Key Financial Figures

Filing Documents

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Table of Contents Page PART I 1 ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 1 ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 1 ITEM 3. KEY INFORMATION 1 ITEM 4. INFORMATION ON THE COMPANY 41 ITEM 4A. UNRESOLVED STAFF COMMENTS 74 ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECT 74 ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 96 ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 105 ITEM 8. FINANCIAL INFORMATION 109 ITEM 9. THE OFFER AND LISTING 110 ITEM 10. ADDITIONAL INFORMATION 110 ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 117 ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 117 PART II 118 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 118 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 118 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 118 ITEM 16. RESERVED 118 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT. 118 ITEM 16B. CODE OF ETHICS. 118 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES. 119 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES. 119 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS. 119 ITEM 16F. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT. 119 ITEM 16G. CORPORATE GOVERNANCE 119 ITEM 16H MINE SAFETY DISCLOSURE 119 ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. 119 ITEM 16J. INSIDER TRADING POLICIES 119 ITEM 16K. CYBERSECURITY 120 PART III 121 ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 121 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 121 ITEM 19. EXHIBITS 122 i CERTAIN INFORMATION Unless otherwise indicated, numerical figures included in this Annual Report on Form 20-F (the "Annual Report") have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. For the sake of clarity, this Annual Report follows the English naming convention of first name followed by last name, regardless of whether an individual's name is Chinese or English. Certain market data and other statistical information contained in this Annual Report are based on information from independent industry organizations, publications, surveys and forecasts. Some market data and statistical information contained in this Annual Report are also based on management's estimates and calculations, which are derived from our review and interpretation of the independent sources listed above, our internal research and our knowledge of the PRC information technology industry. While we believe such information is reliable, we have not independently verified any third-party information and our internal data has not been verified by any independent source. Depending on the context, the terms "we," "us," "our company," and "our" refer to CLPS Incorporation, a Cayman Islands company, and its subsidiary and affiliated companies. Except where the context otherwise requires and for purposes of this Annual Report only: "Arabian Jasmine" refers to Arabian Jasmine Ltd., a British Virgin Islands company; "Beijing Bozhuo" refers to Beijing Bozhuo Education Technology Co., Ltd., a PRC company; "CAE" refers to College of Allied Educators Pte. Ltd., a Singapore company; "CareerWin" refers to CareerWin Executive Search Co., Ltd., a PRC company; "CLPS Beijing" refers to CLPS Beijing Hengtong Co., Ltd., a PRC company; "CLPS California" refers to CLPS Technology (California) Inc., a USA company; "CLPS Chengdu

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report contains "forward-looking statements" that represent our beliefs, projections and predictions about future events. All statements other than statements of historical fact are "forward-looking statements" including any projections of earnings, revenue or other financial items, any statements of the plans, strategies and objectives of management for future operations, any statements concerning proposed new projects or other developments, any statements regarding future economic conditions or performance, any statements of management's beliefs, goals, strategies, intentions and objectives, and any statements of assumptions underlying any of the foregoing. Words such as "may", "will", "should", "could", "would", "predicts", "potential", "continue", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar expressions, as well as statements in the future tense, identify forward-looking These statements are necessarily or achievements, or industry results, to differ materially from any future results, performance or achievements described in or implied by such statements. Actual results may differ materially from expected results described in our forward-looking statements, including with respect to correct measurement and identification of factors affecting our business or the extent of their likely impact, the accuracy and completeness of the publicly available information with respect to the factors upon which our business strategy is based for the success of our business.

Forward-looking statements

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and management's belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, those factors discussed under the headings "Risk Factors", "Operating and Financial Review and Prospects," "Information on the Company" and elsewhere in this Annual Report. This Annual Report should be read in conjunction with our audited financial statements and the accompanying notes thereto, which are included in Item 18 of this Annual Report. v PART I

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not required.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not required.

KEY INFORMATION

ITEM 3. KEY INFORMATION A. [Reserved] B. Capitalization and Indebtedness Not required. C. Reasons for the Offer and Use of Proceeds Not required. 1 D. Risk factors You should carefully consider the following risk factors, together with all of the other information included in this Annual Report. Investment in our securities involves a high degree of risk. You should carefully consider the risks described below together with all of the other information included in this Annual Report before making an investment decision. The risks and uncertainties described below represent our known material risks to our business. If any of the following risks actually occurs, our business, financial condition or results of operations could suffer. In that case, you may lose all or part of your investment. A summary of risk factors is provided concisely below: Risks Related to Our

Business

Business Risks Related to Our Ability to Manage Our Business and Growth Risks Related to Adverse Economic Conditions Affecting Our Clients' Purchase Risks Related to Intense Competition from Other Service Provider Risks Related to Lack of Skilled Employees Risks Related to Lack of Diverse Clients Risks Related to Collection of Account Receivables Risks Related to Our Inability to Develop New Technology and Services Risks Related to Our Inability to Continue Mergers and Acquisitions Risks Related to Our Inability to Post-Merger Integration Risks Related to Our Inability to Generate New Businesses Risks Related to Complexity to Evaluate Our Business Risks Related to Lack of Full Utilization of Resources Risks Related to Underestimate of Cap on Our Service Fees Risks Related to Our Exposure to Wage-Related High Costs Risks Related to Pricing Pressure Due to Competition Risks Related to Unauthorized Disclosure of Confidential Client Information by Us Risks Related to Unauthorized Use of Our Intellectual Property by Others Risks Related to Our Inability to Raise Additional Capital Risks Related to Our Business Interruptions Risks Related to Fluctuation of Renminbi to US Dollar Exchange Rate Risks Related to Lack of Effective Internal Control in Our Company 2 Risks Related to Corporate Structure Risks Related to Our Refusal to Declare Dividends Risks Related to Our Subsidiaries' Bankruptcy Risks Related to Our Subsidiaries' Lack of Regulatory Approval by Chinese Authorities Risks Related to Our Subsidiaries' Chops Being Lost or Stolen Risks Related to Our Non-Compliance with PRC Regulations Risks Related to Doing Business in China Risks Related to Adverse Economic Conditions in China Risks Related to Lack of Permission to Do Business in China Risks Related to Uncertainty on Compliance with Cybersecurity Law of China Risks Related to Government Regulations on US-Listed Chinese Companies Risks Related to US

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