NEW YORK, Oct. 31, 2025 (GLOBE NEWSWIRE) -- Lucas GC Limited $(LGCL)$ ("Lucas" or the "Company"), an artificial intelligence (the "AI") technology-driven Platform-as-a-Service (the "PaaS") company whose technologies have been applied to the human resources and insurance industry verticals, today announced its financial results for 1H fiscal year of 2025.
1H 2025 Financial Highlights
-- Our revenue was RMB386.89 million (US$54.01 million) for the six months
ended June 30, 2025, compared with RMB605.52 million for the six months
ended June 30, 2024, representing a decrease of 36.11%.
-- We recorded a gross margin of 33.74% for the six months ended June 30,
2025, representing an increase of 200 bps compared with that of the six
months ended June 30, 2024.
-- We recorded net income of RMB21.49 million (US$3.0 million) for the six
months ended June 30, 2025, compared with RMB53.93 million for the six
months ended June 30, 2024.
-- Our net income margin decreased to 5.56% for the six months ended June
30, 2025, compared with 8.91% for the six months ended June 30, 2024.
Management Commentary
Howard Lee, Chief Executive Officer of Lucas, said "We continue to position ourselves as a technology company rather than a service company, resulting in improvement of our gross margin in 1H 2025 compared to 1H 2024. The revenue decrease was due to slowdown of the overall Chinese economy, our change of strategy to focus on higher-margin products and our management focus on initiating operations outside China."
"In order to sustain our technological leads as a technology company, we have continued to invest significantly in research and development. R&D expenses as a percentage of revenue was 11.86% which is still well above industry average. We obtained one additional patent related to core Artificial Intelligence (AI) technology, bringing the total number of granted patents to 20."
About Lucas GC Limited
With 20 granted U.S. and Chinese patents and over 75 registered software copyrights in the AI, data analytics and blockchain technologies, Lucas GC Limited is an AI technology-driven Platform as a Service (PaaS) company. Lucas' technologies have been applied to the human resources and insurance industry verticals. For more information, please visit: https://www.lucasgc.com/.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." The words "anticipate," "believe," "continue," "could," "estimate," "expect, " "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions. Any forward-looking statements contained in this press release speak only as of the date hereof, and Lucas GC Limited specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
For Investor Inquiries and Media Contact:
https://www.lucasgc.com/
ir@lucasgc.com
T: 818-741-0923
LUCAS GC LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except for share and per
share data, or otherwise noted)
As of December
31, 2024 As of June 30, 2025
---------------- ---------------------
RMB RMB US$
(Unaudited)
ASSETS
Current assets
Cash and cash
equivalents 30,380 30,082 4,199
Restricted cash 1,281 - -
Short-term
investments 2,803 1,425 199
Accounts
receivable, net 61,059 47,226 6,592
Advance to
suppliers, net 163,647 162,409 22,671
Deferred offering
costs 2,302 104 15
Prepaid expenses
and other current
assets 1,955 6,933 966
--------------- ---------- --------
Total current
assets 263,427 248,179 34,642
=============== ========== ========
Non-current
assets
Long-term
investments - 21,491 3,000
Software and
equipment, net 84,465 108,268 15,114
Development
expenditures 32,515 51,714 7,219
Operating lease
right-of-use
assets, net 575 369 52
Deferred tax
assets, net 22,270 28,882 4,032
--------------- ---------- --------
Total non-current
assets 139,825 210,724 29,417
=============== ========== ========
TOTAL ASSETS 403,252 458,903 64,059
=============== ========== ========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Current
liabilities
Short-term
borrowings 67,470 90,800 12,675
Accounts payable 46,800 28,126 3,926
Contract
liabilities 15,906 7,843 1,095
Income tax payable 71 71 10
Amounts due to
related parties 3,700 1,400 195
Operating lease
liabilities,
current 458 303 42
Accrued expenses
and other current
liabilities 3,170 3,655 510
--------------- ---------- --------
Total current
liabilities 137,575 132,198 18,453
=============== ========== ========
Operating lease
liabilities,
non-current 99 - -
--------------- ---------- --------
Total non-current
liability 99 - -
--------------- ---------- --------
TOTAL LIABILITIES 137,674 132,198 18,453
=============== ========== ========
Shareholders'
equity
Ordinary shares
(US$0.0002 par
value;
250,000,000 and
250,000,000
shares authorized
as of December
31, 2024 and June
30, 2025;
1,986,677 and
2,790,427 shares
issued and
outstanding as of
December 31, 2024
and June 30,
2025,
respectively) 3 3 -
Subscription
receivables (3) (3) -
Treasury Stock (856) (856) (119)
Additional paid-in
capital 142,828 182,968 25,541
Statutory reserve 23,271 23,271 3,249
Retained earnings 97,118 118,452 16,535
Accumulated other
comprehensive
income (loss) 472 (34) (5)
--------------- ---------- --------
Total Lucas GC
Limited
shareholders'
equity 262,833 323,801 45,201
=============== ========== ========
Non-controlling
interests 2,745 2,904 405
--------------- ---------- --------
Total
shareholders'
equity 265,578 326,705 45,606
=============== ========== ========
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY 403,252 458,903 64,059
=============== ========== ========
LUCAS GC LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(All amounts in thousands, except for share and per
share data, or otherwise noted)
For the six months ended June 30,
----------------------------------------
2024 2025
------------- ---------------------
RMB RMB US$
(Unaudited) (Unaudited)
Revenues
Recruitment service 155,812 31,806 4,440
Outsourcing service 418,456 334,471 46,690
Others 31,250 20,613 2,878
------------ --------- ---------
Total revenues 605,518 386,890 54,008
Cost of revenues (402,438) (256,355) (35,786)
------------ --------- ---------
Gross profit 203,080 130,535 18,222
Operating expenses
Selling and
marketing expenses (39,000) (30,562) (4,266)
General and
administrative
expenses (30,299) (38,798) (5,416)
Research and
development
expenses (80,612) (45,881) (6,405)
------------ --------- ---------
Total operating
expenses (149,911) (115,241) (16,087)
Income from
operations 53,169 15,294 2,135
============ ========= =========
Other expenses
Financial expenses,
net (754) (325) (45)
Other income
(expenses), net 718 (89) (12)
------------ --------- ---------
Total other
expenses, net (36) (414) (57)
============ ========= =========
Income before income
tax benefit 53,133 14,880 2,078
Income tax benefit 794 6,613 923
------------ --------- ---------
Net income 53,927 21,493 3,001
============ ========= =========
Less: net income
attributable to
non-controlling
interests (398) (159) (22)
------------ --------- ---------
Net income
attributable to
Lucas GC Limited 53,529 21,334 2,979
============ ========= =========
Net income 53,927 21,493 3,001
Other
comprehensive
income:
Foreign currency
translation
difference, net of
tax of nil 438 (506) (71)
------------ --------- ---------
Total comprehensive
income 54,365 20,987 2,930
============ ========= =========
Less: total
comprehensive
income attributable
to non-controlling
interests (398) (159) (22)
------------ --------- ---------
Comprehensive income
attributable to
Lucas GC Limited 53,967 20,828 2,908
============ ========= =========
Net income per
share:
Basic 27.09 10.55 1.47
Diluted 27.09 10.55 1.47
Weighted average
shares outstanding
used in
calculating basic
and diluted loss
per share:
Basic 1,976,166 2,022,399 2,022,399
Diluted 1,976,166 2,022,399 2,022,399
(END) Dow Jones Newswires
October 31, 2025 17:00 ET (21:00 GMT)