CLPS Incorporation Announces Chairman's Letter to the Company's Shareholders

Core Insights - CLPS Incorporation has focused on disciplined execution and technological innovation despite challenges in the global macroeconomic environment, including significant personnel reductions at its largest client's China Solution Centers [1][2] Technological Innovation - Innovation is central to CLPS's strategy, with advancements in digital solutions across AI, automation, Web3, and financial infrastructure [3] - The company launched Nibot, a Robotic Process Automation product, which has received positive feedback from clients, particularly after its deployment for a major Hong Kong banking client [4] - A Web3-ready issuance platform was introduced by Qinson Credit Card Services Limited, marking CLPS's entry into the stablecoin and digital asset infrastructure [5] - AI-driven solutions have been utilized for modernizing legacy systems for a major financial institution in Hong Kong, establishing a framework for future projects [6] Financial Performance and Outlook - In fiscal 2025, CLPS reported total revenue of $164.5 million, a 15.2% year-over-year increase, despite the impact of client downsizing [8] - Gross profit rose 10.2% to $36.3 million, although net income faced short-term pressure due to restructuring costs; adjusted net income was $78.0 thousand [8] - The company anticipates maintaining a revenue growth rate of 10%-15% for fiscal year 2026, driven by demand for AI-enabled transformation and digital modernization solutions [8] Strategic Partnerships - CLPS collaborated with The Bank of East Asia to conduct a Proof-of-Concept for Nibot, integrating RPA and Generative AI, showcasing its technological capabilities [10] Operations and Organizational Development - The establishment of the CLPS AI Innovation Committee aims to enhance governance and strategic alignment in AI deployment [11] - JAJI Global Incorporation, a majority-owned subsidiary, is progressing towards an initial public offering, indicating growth and expansion efforts [11] Global Expansion - Fiscal 2025 saw the establishment of a subsidiary in Indonesia, enhancing CLPS's presence in Southeast Asia [12] - Revenue from outside mainland China grew approximately 90.5% to $42.5 million, reflecting the success of the company's global expansion strategy [13] Business Diversification - CLPS is building a multi-sector business model, with significant contributions from the education sector, including $2.0 million in revenue from the College of Allied Educators [15]