CLPS promotes Henry Li to President By Investing.com



HONG KONG – CLPS Incorporation (NASDAQ:CLPS), a global IT consulting and solutions service provider, announced today the promotion of Mr. Henry Li Li to the position of President, effective immediately. Li, who previously served as the Chief Operating Officer (COO), will take over the role of President and report directly to the company’s Board of Directors.

Mr. Li’s tenure with CLPS began in 2019, during which he has been credited with driving significant advancements in the company’s operational efficiency and productivity through the implementation of advanced technologies. His leadership is also recognized for establishing a comprehensive internal management system and expanding the company’s market presence.

With a background spanning two decades in the financial and IT sectors, Mr. Li has held prominent positions at Mastercard (NYSE:) and the Commonwealth Bank of Australia (OTC:) in China. He is a graduate of Tianjin University with a bachelor’s degree in Computer Science and holds a Master of Science in Engineering from Fudan University in Shanghai.

Upon his appointment, Mr. Li expressed his commitment to leveraging CLPS’s competitive edge, fostering innovation, and pursuing operational excellence. Mr. Paul Xiao Feng Yang, Chairman of CLPS, lauded Mr. Li’s strategic vision and execution capabilities, expressing confidence in his leadership to further the company’s long-term strategic goals.

CLPS Incorporation, headquartered in Hong Kong, specializes in IT consulting and solutions, primarily serving global financial institutions in various sectors, including banking, wealth management, e-commerce, and automotive. The company operates 20 delivery and research & development centers worldwide, with a significant presence in Mainland China and other global locations.

This corporate update is based on a press release statement from CLPS Incorporation.

In other recent news, CLPS Incorporation, a global IT consulting and solutions service provider, received a non-compliance notice from The Nasdaq Stock Market LLC. The notice, issued on June 10, 2024, was due to CLPS’s common shares closing below the required $1.00 minimum bid price for 30 consecutive trading days, as per Nasdaq Listing Rule 5450(a)(1). However, the company’s listing and trading on the Nasdaq Global Market remain unaffected at this time.

CLPS has been given 180 days until December 9, 2024, to meet the minimum bid price condition, which requires the company’s stock to maintain a closing bid price of at least $1.00 for at least 10 consecutive business days within this timeframe. If CLPS fails to achieve compliance by the deadline, it may be granted an additional 180-day period to meet the requirement by transitioning to the Nasdaq Capital Market, provided all other listing criteria are met.

The company has also mentioned the possibility of a reverse stock split to rectify the bid price deficiency if necessary. CLPS has expressed its commitment to undertaking reasonable actions to regain compliance with Nasdaq’s minimum bid price requirement. It’s important to note that this notification does not influence the company’s business operations.

These are recent developments in the company’s journey.

InvestingPro Insights

In light of the recent leadership changes at CLPS Incorporation, stakeholders may be interested in the company’s financial health and market performance. According to InvestingPro data, CLPS holds a market capitalization of 22.8 million USD, which provides a context for the size of the company within its industry. Despite challenging market conditions, CLPS has maintained a low Price / Book multiple of 0.36 as of the last twelve months leading up to Q2 2024, indicating the stock may be undervalued relative to its assets.

However, the company’s financials reflect some areas of concern. CLPS has struggled with weak gross profit margins, recorded at 21.86% in the same period, which may be a point of focus for Mr. Henry Li Li as he steps into his new role. Additionally, the company has not been profitable over the last twelve months, with a negative P/E ratio of -48.37, signaling potential challenges in generating earnings against its share price.

InvestingPro Tips highlight that CLPS is trading at a low revenue valuation multiple, suggesting that the market may not be fully recognizing the company’s revenue potential. Furthermore, the company’s liquid assets exceed short-term obligations, which could provide a buffer in navigating short-term financial challenges. For investors and analysts seeking to delve deeper into CLPS’s financial metrics and strategic positioning, there are 7 additional InvestingPro Tips available, offering nuanced insights into the company’s performance and potential. To access these insights, check out the company’s page at https://www.investing.com/pro/CLPS, and don’t forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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