CLPS Releases Shareholder Letter from Chairman, Outlook for Future Development
CLPS released a letter to shareholders from the Chairman of its Board of Directors. "Looking back at the past year, CLPS remained steadfastly focused on disciplined execution and technological innovation, even as we navigated a dynamic global macroeconomic environment... 2025 served as a pivotal year of transformation for the Company... 1. Technological Innovation. Innovation remains at the core of CLPS's strategy. During the year, we made meaningful progress in advancing next-generation digital solutions across artificial intelligence, automation, Web3, and financial infrastructure... 2. Financial Performance and Outlook. In fiscal 2025, amid a cautious budgeting environment across our global client base, CLPS focused on diversifying its revenue streams and accelerating the development of a more resilient financial framework... Looking ahead, management is cautiously optimistic. While we sustain organic growth through core IT consulting services, we see growing demand for AI-enabled transformation, automation, and digital modernization solutions. 3. Strategic Partnerships. Partnerships were vital to advancing our innovation roadmap. We collaborated with The Bank of East Asia, Limited to conduct a Proof-of-Concept of Nibot, an advanced AI agent that integrates RPA and Generative Artificial Intelligence. 4. Operations and Organizational Development. Operational excellence remains a priority as we scale. We established the CLPS AI Innovation Committee, strengthening governance and strategic alignment around AI deployment. 5. Global Expansion. Fiscal 2025 marked a milestone in our international growth with the establishment of our Indonesia subsidiary. This move further deepens our localized footprint in the region and fulfills our commitment to cultivating Southeast Asia as a key growth market. 6. Business Diversification. CLPS continues to build a resilient, multi-sector business model.
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- Strategic Partnership: CLPS's wholly-owned subsidiary QCC has entered into a strategic partnership with an emerging financial institution in Southeast Asia, leveraging the CAKU payment system to provide a comprehensive suite of credit card products and customized services, marking a significant expansion for QCC in the SEA fintech ecosystem.
- Technological Edge: The CAKU solution boasts real-time processing capabilities exceeding 4,000 TPS and is built on a cloud-native microservices architecture, ensuring high scalability and stability while adhering to international security standards such as PCI-DSS and ISO27001, enhancing market competitiveness.
- Rapid Implementation: QCC's cloud-direct connectivity solution simplifies traditional hardware requirements, significantly reducing implementation timelines by several months, thereby improving the client's market responsiveness and user experience.
- Market Outlook: The CEO of CLPS stated that this partnership will strengthen the company's fintech capabilities and support growth in customized IT solution services, addressing the rising demand for digital transformation and driving long-term value creation.
- Strategic Partnership: CLPS's wholly-owned subsidiary, Qinson Credit Card Services Limited, has entered into a strategic partnership with an emerging financial institution in Southeast Asia to deploy the CAKU payment system, aiming to provide a comprehensive suite of credit card products and customized implementation services, thereby accelerating digital banking transformation and enhancing market competitiveness.
- CAKU Platform Advantages: The CAKU solution boasts flexible functionalities and strong delivery capabilities, supporting rapid market responsiveness and personalized user experiences, which is expected to significantly enhance customer satisfaction and drive business growth.
- Efficient Implementation Services: QCC will deliver comprehensive professional services, including project management, solution design, testing, and system deployment, ensuring efficient and seamless implementation that further enhances the client's market adaptability.
- Cloud Connectivity Innovation: QCC will implement a cloud-direct connectivity solution, reducing traditional hardware requirements and shortening implementation timelines, marking its innovative leadership position in the payment systems sector in the Asia-Pacific region and enabling clients to enter the market rapidly.
- Technological Innovation: CLPS has successfully launched its proprietary AI-driven intelligent migration solution aimed at transitioning legacy COBOL systems to Java, marking a significant advancement in the digital transformation of retail and core banking infrastructures.
- Market Demand: As the number of COBOL programmers declines and maintenance costs rise, the banking industry faces a 'COBOL Cliff,' and CLPS's solution provides a viable modernization path for financial institutions, reducing operational overhead and accelerating digital transformation.
- Successful Case Study: CLPS recently completed a Proof-of-Concept for a major bank in Hong Kong, demonstrating that AI-enabled migration can rapidly and accurately convert COBOL code to Java while maintaining system stability and core logic integrity, further solidifying its leading position in this domain.
- Strategic Vision: CEO Raymond Lin stated that this business segment represents a substantial market opportunity, and by synthesizing two decades of banking domain expertise with cutting-edge AI tools, CLPS offers scalable solutions that help financial institutions navigate the complexities of legacy system modernization.
- Technological Innovation: CLPS has successfully launched its proprietary AI-driven intelligent migration solution designed to transition legacy COBOL systems to Java, marking a significant advancement in the digital transformation of retail and core banking infrastructures.
- Market Demand: As the pool of COBOL programmers shrinks and maintenance costs rise, the banking sector faces a 'COBOL Cliff,' and CLPS's solution offers a viable modernization path for financial institutions, reducing operational overhead and accelerating digital transformation.
- Successful Case Study: CLPS recently completed a Proof-of-Concept for a major bank in Hong Kong, demonstrating that AI-enabled migration can rapidly and accurately convert COBOL code to Java while maintaining system stability and core logic integrity, further solidifying its leading position in this domain.
- Strategic Vision: CEO Raymond Lin stated that this business segment represents a substantial market opportunity, and by synthesizing two decades of banking domain expertise with cutting-edge AI tools, CLPS provides scalable solutions to help financial institutions navigate the complexities of legacy system modernization.
- Non-GAAP EPS: CLPS reported a non-GAAP EPS of $0.06 for the first half of 2023, indicating a slight improvement in profitability, yet reflecting ongoing competitive pressures in the market.
- Revenue Growth: The company achieved revenue of $85.09 million, marking a 2.8% year-over-year increase, which, while positive, appears weak compared to industry benchmarks and may affect investor confidence.
- Financial Transparency: CLPS provided detailed financial information in its report, aiming to enhance investor trust in the company's financial health, particularly in the current economic climate.
- Market Reaction: Despite the growth in revenue and earnings, the market's response to CLPS remains cautious, prompting investors to monitor future quarters to assess the company's sustained growth potential.
- Significant Revenue Growth: CLPS achieved revenues of $85.1 million in H1 FY2026, reflecting a 2.8% year-over-year increase primarily driven by strong performance in IT consulting and customized IT solution services, showcasing the company's competitiveness in global markets.
- Surge in Customized Services: Revenue from customized IT solution services skyrocketed by 134.7% to $2.2 million, highlighting the company's technological integration capabilities in high-demand fields, further solidifying its position in international markets.
- Expansion in Overseas Markets: Revenue generated outside mainland China increased by 63.1% to $31.0 million, primarily driven by strong performances in Singapore, Hong Kong, Japan, and the USA, indicating the company's successful reduction of reliance on a single market.
- Share Repurchase Program: The company's board authorized a share repurchase program on February 4, 2026, allowing for the buyback of up to 1 million shares, reflecting confidence in the company's future value and aiming to enhance shareholder returns.






