CLPS announced a major restructuring of its R&D architecture centered on its proprietary AI Rainstorm Factory model. The initiative transforms the traditional software development lifecycle (SDLC) into a streamlined, modular framework split into six specialized AI-enabled workshops (from UI design to automated testing) to automate key stages of R&D.

Expected impact: Aims to shorten project R&D and delivery cycles by up to 50% compared to traditional workflows, thereby reducing development and operational costs.

CLPS is actively expanding its footprint outside of mainland China, prioritizing Southeast Asia and North America to capture rapid digitalization and reduce regional concentration risks. This includes expanding its Singapore HQ, scaling delivery centers in the Philippines and Vietnam, and establishing a new subsidiary in Indonesia.

Expected impact: Management targeted lifting non-mainland China revenue to 25% of total company revenue by the end of 2025. Overseas revenue grew 90.5% to $42.5 million in fiscal 2025, and reached $31.0 million (up 63.1% YoY) in the first half of fiscal 2026.

Pivoting the business model from traditional staff augmentation toward Solution-as-a-Service (SaaS) and proprietary product offerings to improve gross margins and generate recurring revenue. Key products include Nibot (a proprietary Robotic Process Automation tool) and CAKU (a cloud-native credit card issuance and digital banking platform).

Expected impact: A higher mix of proprietary solutions and consulting engagements is expected to drive gross profit margins into the range of 26% to 29% over the long term.