NEW YORK, Oct. 31, 2025 (GLOBE NEWSWIRE) -- Lucas GC Limited (NASDAQ: 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/
[email protected]
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