SHANGHAI, Feb. 5, 2019 /PRNewswire/ -- CLPS Incorporation
(the "Company" or "CLPS") (Nasdaq: CLPS), a leading information
technology ("IT") consulting and solutions service provider
focusing on the banking, insurance and financial sectors in
China and globally, today
announced that it has increased its ownership stake in Lihong
Financial Information Services Co., Ltd. ("Lihong"), an online
lending platform company in China.
CLPS made its first strategic investment in Lihong six months
ago. Now the parties have agreed to increase the Company's
ownership stake from 2.7% to 36.8%.
In recent years, the rapid growth of the consumer lending
business has fueled China's
consumer spending. According to China's most recent annual consumer loan
index, Lihong has been one of the major players in the industry
with approximately RMB 5 million in
average daily loan volume and growing. With CLPS's keen
understanding of the business potential of consumer lending and
Lihong's business development capability, both parties believe that
the increased investment will result in a mutually beneficial
ongoing business relationship.
Founded in 2015 and headquartered in Shanghai, Lihong's online lending platform
uses big data technology to enable individual, small- and mid-sized
Chinese banks to provide consumer loans with insurance policies
acting as debt collateral. Lihong receives a per-transaction fee,
which is generally contingent upon the size of the loan
transaction, as well a fixed maintenance fee.
In line with the CLPS's development goals, the increased
investment will further diversify its revenue model into new
business services, is anticipated to add to the Company's ability
to generate additional operating income, and to further support the
Company's "dual engine" strategy.
About CLPS Incorporation
Headquartered in Shanghai,
China, 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 and Hong
Kong and their PRC-based IT centers. The Company maintains
ten delivery and/or research & development centers to serve
different customers in various geographic locations. Mainland
China centers are located in
Shanghai, Beijing, Dalian, Tianjin, Chengdu, Guangzhou and Shenzhen. The remaining three global centers
are located in Hong Kong,
Singapore and Australia. For further information regarding
the Company, please visit: http://ir.clpsglobal.com/.
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, including, among others, the Company's ability to
complete this investment successfully and timely, its ability to
generate additional operating income and to diversify its
development goals 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 written or oral
forward-looking statements attributable to us are expressly
qualified in their entirety by this cautionary notice, including,
without limitation, those risks and uncertainties described in the
Company's most recently filed annual report on Form 20-F and
otherwise in our 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
Tian van Acken
Chief Financial Officer
Phone: +86-158-0198-4357
Email: ir@clpsglobal.com
ICR Inc.
Rose Zu
Phone: +1-646-405-4868
Email: ir@clpsglobal.com
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SOURCE CLPS