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:
818-741-0923
LUCAS GC LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except for share and per share data, or otherwise noted)
As ofDecember 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
