CLPS Incorporation Updates Shareholders on Future Strategies
HONG KONG — CLPS Incorporation (NASDAQ: CLPS) has shared a forthcoming letter addressing its shareholders about the company's strategic direction and accomplishments from the past year. The letter, penned by the Chairman of the Board, aims to outline the company’s vision as it moves into the new year.
The letter opens with a warm New Year greeting from the Chairman, expressing gratitude for the support from shareholders. It reflects on a year of both challenges and achievements, emphasizing the commitment to innovation and flexibility in a rapidly changing business landscape.
Throughout 2025, CLPS faced significant challenges, particularly the downsizing of a major client's operations in China. Nevertheless, this difficulty compelled the company to pivot towards a more resilient and diversified business model, fostering broader revenue streams. This shift was designed not only to absorb setbacks but to strengthen the company's foundation for sustainable growth.
Emphasizing Technological Innovations
Technological innovation has consistently been a cornerstone of CLPS’s operational strategies. In 2025, the company advanced several digital solutions focusing on artificial intelligence (AI), automation, and Web3, reflecting its commitment to staying ahead in technology trends.
The introduction of Nibot, CLPS's proprietary Robotic Process Automation (RPA) tool, signifies a leap forward in capabilities. Nibot's features, including high customizability and easy implementation, have received enthusiastic feedback from clients, particularly following its successful deployment in the banking sector. This progress underscores the company’s drive to deliver next-generation digital solutions.
Furthermore, a strategic initiative by the Hong Kong subsidiary, Qinson Credit Card Services Limited, successfully introduced a Web3-ready platform for digital assets and stablecoins. Such initiatives reaffirm the company's commitment to pioneering innovative technologies that cater to the evolving needs of its clientele.
Financial Performance and Future Outlook
During fiscal 2025, CLPS focused on diversifying revenue channels in response to a cautious budgeting approach from its global clients. The company reported substantial growth, with total revenue reaching $164.5 million, marking a 15.2% increase year-on-year. Despite financial impacts from client downsizing, proactive measures are anticipated to lead to a revenue growth target of 10%-15% for fiscal year 2026.
Gross profit figures also reflected a positive trend, reaching $36.3 million, despite facing pressure from restructuring necessitated by the client's operational changes. CLPS remains dedicated to its core services while nurturing a growing demand for AI-driven transformations and digital modernization.
Strengthening Strategic Partnerships
Strategic collaborations have played a vital role in advancing CLPS's innovation strategy. The partnership with The Bank of East Asia highlights the company's capacity to integrate artificial intelligence with operational processes. Through initiatives like the GenA.I. Sandbox, CLPS demonstrates its position as a technological leader in shaping the landscape of intelligent financial solutions.
Worldwide Expansion and Business Diversification
CLPS's global growth strategy took a significant leap with the establishment of a subsidiary in Indonesia, solidifying its coverage in Southeast Asia. Revenue from operations outside mainland China surged by approximately 90.5%, illustrating the success of its international expansion approach.
Additionally, the company is actively broadening its operational scope across various sectors, including fintech and education, with successful revenue contributions from the acquisition of the College of Allied Educators. This diversification not only enhances resilience but also positions CLPS favorably across different economic climates.
As the letter concludes, the Chairman expresses appreciation for the diligent work of CLPS's employees and the unwavering trust of clients and shareholders alike. Looking ahead, the focus will remain on reinforcing value and promoting CLPS as a pivotal technology partner.
With clear intentions and robust plans, CLPS is prepared to navigate challenges and seize opportunities as they look forward to continued success and growth in 2026.
Frequently Asked Questions
What is CLPS Incorporation focusing on in 2026?
CLPS is focusing on technological advancements, particularly in AI and digital transformations, while striving for diversified growth through proactive strategies.
How did CLPS perform financially in 2025?
CLPS reported total revenue of $164.5 million, a 15.2% increase from the previous year, despite challenges faced from client downsizing.
What strategic initiatives has CLPS undertaken?
CLPS has launched innovative products like Nibot and expanded partnerships with financial institutions to enhance their technological offerings.
Where is CLPS expanding its operations?
CLPS established a subsidiary in Indonesia to strengthen its presence in Southeast Asia and has seen significant revenue growth in international markets.
How is CLPS approaching its business model?
CLPS is diversifying its operations across various sectors, enhancing resilience and allowing the company to adapt to different economic conditions.
