CLPS Buys 10% Stake in Huaqin Zhichuang Software Technology

Binwei Wang
    Aug 18, 2020 3:00 PM  PT
CLPS Buys 10% Stake in Huaqin Zhichuang Software Technology
author: Binwei Wang   

CLPS (Nasdaq: CLPS) has invested 1 million yuan in Guangdong Huaqin Zhichuang Software Technology (HQZC) for a 10% stake.

Based on a comprehensive evaluation of HQZC's market size, growth potential, and business edge, CLPS has decided to invest in HQZC, aiming to expand its business and industry reach, the company said in a statement today.

Raymond Lin, the chief executive officer of CLPS, said, "Global trends in development and innovation within our focused industries -- semiconductor, telecommunications, IoT, Internet, and mobile video, among others underscore strong demand for IT services and solutions."

He added, "As a leader in digital transformation, CLPS is well-equipped to understand and capitalize on this demand. Our investment in HQZC aims to further expand CLPS's business in other industry verticals, in both domestic and overseas markets. It also advances our diversification strategy and competitive advantage in target industries where we have the greatest expertise."

The stock of CLPS declined 12% Tuesday, closing at $3.55 per share in New York.