CLPS

Collaboration Announcement: CLPS Incorporation has partnered with The Bank of East Asia to conduct a Proof-of-Concept for Nibot, an AI agent that combines Robotic Process Automation and Generative AI, as part of the GenA.I. Sandbox initiative by the Hong Kong Monetary Authority.

Objectives of Nibot: The PoC aims to enhance banking operations by improving efficiency, ensuring regulatory compliance, and strengthening risk management through features like intelligent process generation, automated risk monitoring, and AI interactive verification.

Statements from Executives: CLPS executives emphasized the importance of this collaboration in realizing hyper automation and digital transformation in banking, highlighting their commitment to ongoing research and development in AI technologies.

Company Background: CLPS, established in 2005 and headquartered in Hong Kong, focuses on driving digital transformation across various industries through innovations in AI, cloud computing, and big data, operating in multiple countries with a diverse service network.

Integration of Stablecoin Functionality: CLPS Incorporation has announced the integration of stablecoin payment and settlement functions into its credit card system, CAKU, aiming to enhance payment flexibility and reduce costs for banks, merchants, and consumers.

Key Features and Benefits: The new system includes intelligent stablecoin minting, efficient fiat-to-stablecoin exchanges, and user-friendly redemption processes, all designed to streamline transactions and improve the overall payment experience.

Target Markets and Applications: The functionality will initially be rolled out in Hong Kong SAR, with plans for international expansion, targeting banks, e-commerce merchants, and high-net-worth clients to facilitate digital asset management and lower transaction fees.

Commitment to Compliance and Security: CLPS emphasizes adherence to global regulatory standards, incorporating robust KYC and AML protocols to ensure secure and compliant transactions within the evolving digital currency landscape.

Financial Performance Overview: CLPS Incorporation reported a revenue increase of 15.2% to $164.5 million for fiscal year 2025, despite facing significant challenges due to a major client's workforce downsizing, which led to increased severance expenses and a net loss of $6.4 million.

Strategic Shift and Growth Initiatives: The company is focusing on diversifying its revenue streams and expanding its international presence, particularly in the APAC region, where revenue from markets like Singapore, Hong Kong, and Japan saw substantial growth rates of 99.2%, 130.5%, and 253.2%, respectively.

Operational Adjustments: CLPS is actively realigning its resources in response to the restructuring of its major client while investing in high-value projects in artificial intelligence and Robotic Process Automation to enhance long-term growth and reduce reliance on any single client.

Future Outlook: For fiscal year 2026, CLPS anticipates a sales growth of approximately 10% to 15% compared to fiscal year 2025, with a projected non-GAAP net income ranging from $4.4 million to $5.0 million, reflecting confidence in its strategic initiatives and market expansion efforts.