Hello, everyone. Welcome to the First Half of Fiscal Year 2023 Earnings Conference Call for CLPS Incorporation. Please note that today's conference is being recorded. At this time, I would like to turn the call over to Mr. Rhon Galicha from CLPS Investor Relations for opening marks introductions. Please go ahead.

Thank you, operator. Hello, everyone, and welcome to CLPS Incorporation first half of fiscal year 2023 earnings conference call. CLPS Incorporation announced its first half of fiscal 2023 financial results this morning. The earnings release is now available on the company's IR website at ir.clpsglobal.com and across the finance website. Before we continue, please note that our discussions today may include forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks and uncertainties. As such, our results may be materially different from the views expressed today. Further information regarding these risks, uncertainties, assumptions and other factors that could affect our financial results is included in our Form 20-F filed with the U.S. Securities and Exchange Commission and other documents filed with the U.S. SEC. In that respect, I would like to read the following disclaimer applicable such statements. Certain of the statements made in this discussion 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 of future performance and involve known and unknown risks uncertainties and other factors, which may be in the company's control and which may cause the actual results, performance capital, ownership or achievements of the company to be materially different from the future results performance or achievements expressed or implied by such forward-looking statements. All such statements attributable to other 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 first half of fiscal 2023…

Thank you, Rhon. Thank you, operator. Thank you all for joining the call today. I would like to take -- start with an overview of our first half of fiscal year 2023 performance. 2022 was a challenging year with full of uncertainty. During this period, we maintained continuous revenue growth despite various [indiscernible] such as macro economy effects and the impact of exchange rate fluctuations. We remain strong across our key markets. Thanks to the trust and the satisfaction of our clients place in us. In particular, we achieved a breakthrough growth in overseas markets. In addition to retaining our long-term clients, we won new clients during this period as well. We are confident that we are well-positioned to continue executing on our strategy to deliver solid financial performance for the rest of the fiscal year and beyond. First of all, we cut our focus and deliver results on the four key operational areas in banking, wealth management, e-commerce and automotive. We sustained our competitive position in banking and wealth management area during this period. This area [indiscernible] revenue source for us going forward. More importantly, we continue to put our vast wealth management experience to work and achieved positive results. It's an area that remains lucrative [ph] in the financial industry and the several international banks have began to navigate. Our revenue from the wealth management area increased by approximately 24% to $19 million during this period. We expect the effects of currency fluctuations, our revenue from the wealth management area increased by 35% year-over-year in RMB terms. Our rich business experience and the technical accumulation in financial mobile payments allowed us to provide efficient IT services support to our e-commerce clients. The expected effect of currency fluctuations, our revenue from the e-commerce area increased by approximately 3% year-over-year…

Thank you, Henry. Firstly, I'm pleased to announce that we declared our very first special cash dividend last December 2022 and it has been paid out to our shareholders. We also intend to declare dividends in the future, depending on the company's financial performance and the results of operations. Now I will provide an update on our financial performance for the first half of fiscal year 2023. Please note that our numbers provided are in U.S. dollar terms and that all comparisons are made on a year-over-year basis. In the first half of fiscal 2023, our revenue increased by $0.9 million or 1.1% to $76.8 million from $75.9 million. This increase in revenue was mainly due to an increase in revenue from IT consulting services. In particular, revenue from IT consulting services increased by $0.8 million or 1.2% to $72.8 million from $72 million. This increase was due to the increased demand from existing and new clients and our improved service delivery capability. Revenues from customized IT solutions services decreased by $0.1 million or 2.3% to $3.2 million from $3.3 million. This decrease was primarily due to the effect of currency fluctuations in RMB against the U.S. dollar. Revenue from other services increased by $0.1 million or 11.4% to $0.8 million from $0.7 million. The increase was primarily due to the increased demand for other services including non-IT consulting services. Gross profit was $18.5 million compared to $22.3 million. As for operating expenses, savings and marketing expenses increased by $0.4 million or 17.5% to $2.7 million from $2.3 million. As a percentage of total revenue, savings and marketing expenses increased to 3.5% from 3%.The increase was primarily due to the sales and marketing personnel-related expenses. Research and development expenses increased by $0.2 million or 4.4% to $4.4 million from $4.2…

[Operator Instructions] Thank you. Our first question is from the line of Lucy Wang with PH Investors [ph]. Please proceed with your questions.

Congratulations on the results. Can you tell us about your expectation for the audit issues that are there un resolved and the potential for delisting. And my second question is, could you pay give more color on why your net income decreased during this period.

Thank you for your question, let me take your questions. We are closely working with our U.S. council and independent auditors to ensure compliance with the U.S. regulatory [indiscernible] like SEC and the PCLB. We are keeping China loss in line with CSIC and PCLB signed agreement to access all these works. Giving you an overview of the progress, on August 26, 2022, the CSIC [indiscernible] of the People's Republic of China and the PCLB signed an agreement for all the [indiscernible] cooperation to bring the inspection and the [indiscernible] of accounting firms and bilateral cooperation framework. And in December 15, 2022, the PCLB said in its announcement that it has successfully -- access to invest [indiscernible] in Mainland China and Hong Kong for the first time in history. With this development, we are optimistic that our listing will still intact, allowing us to provide shareholder value. We are waiting for definitive results. We are focused on our growth strategy to achieve our business growth. And to answer your second question, as we mentioned in our earnings release, with low pace movement of global economic growth partly caused by COVID-19 had impacted our trends in core markets such as banking and e-commerce our plans in these areas [indiscernible] their budgets in the short-term, which excludes our gross margin. Also, as a result of rapid industry development and economic structure change, IT professional could pay more in demand and pushed up compensation costs. Furthermore, COVID-19 situation led to an increase in cost. We expected to experience short-term challenges. But in the long run, China's policy regarding to COVID-19 has dramatically changed. So we are opportunistic to recover and generate increase in net income going forward. That's my answer. Thank you.

The next question is from the line of Thomas Fernandez, Private Investor. Please proceed with your question.

Yes. Congratulations on the results and very happy to see the guidance going forward. I had a question on any updates on the [indiscernible] IPO.

Yes. Let me take your question. First of all, thank you for your question. So far, the listing material of GRT, which is a major [indiscernible] subsidiary of CLPS, an update on based on the requirements of the regulatory authority, and we believe that this competitive advantage as an IT service provider, particularly in the automotive area will bring value to shareholders. As we discussed earlier, our revenue from automotive area increased about 30% and we expect that demand for IT services will continue to rise as the trend for smart electric basis continues. We will keep the public informed for any development or [indiscernible] IPO. Thank you.

Thank you.

Thank you. At this time, I will turn the floor back to management for any closing remarks. Thank you. There are no additional questions at this time. I will turn the floor back to management for closing remarks.

Okay. Thank you again for joining us on today's call, and we appreciate the ongoing support. We look forward to updating you on our progress in the late and the months ahead. Have a good day. Thank you.

This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.