Lucas GC Limited Announces 1H 2025 Financial Results: Revenue at US$54.01 million with Increases in Gross Margin
Lucas GC (NASDAQ: LGCL) reported 1H fiscal 2025 results for the six months ended June 30, 2025. Revenue was RMB386.89 million (US$54.01 million), down 36.11% year‑over‑year from RMB605.52 million. Gross margin rose by 200 basis points to 33.74%. Net income was RMB21.49 million (US$3.0 million), down from RMB53.93 million, and net income margin fell to 5.56% from 8.91%. Management cited a strategic shift to higher‑margin products, a slowdown in the Chinese economy, and initiation of operations outside China as reasons for the revenue decline. R&D expense was 11.86% of revenue, and the company reported one additional granted patent, bringing total granted patents to 20.
Lucas GC (NASDAQ: LGCL) ha riportato i risultati del I semestre fiscale 2025 per i sei mesi chiusi al 30 giugno 2025. Il fatturato è stato di RMB386,89 milioni (US$54,01 milioni), in calo del 36,11% su base annua rispetto a RMB605,52 milioni. Il margine lordo è aumentato di 200 punti base fino al 33,74%. L'utile netto è stato di RMB21,49 milioni (US$3,0 milioni), in calo rispetto a RMB53,93 milioni, e il margine di utile netto è sceso al 5,56%. La direzione ha citato uno spostamento strategico verso prodotti ad alto margine, un rallentamento dell'economia cinese e l'inizio delle operazioni al di fuori della Cina come motivi del calo dei ricavi. La spesa per R&D è stata l'11,86% dei ricavi, e l'azienda ha registrato una patente in più concessa, portando il totale delle patenti concesse a 20.
Lucas GC (NASDAQ: LGCL) reportó los resultados del 1er semestre fiscal 2025 para los seis meses terminado el 30 de junio de 2025. Los ingresos fueron RMB386,89 millones (US$54,01 millones), con una caída interanual del 36,11% frente a RMB605,52 millones. El margen bruto aumentó en 200 puntos básicos a 33,74%. El beneficio neto fue RMB21,49 millones (US$3,0 millones), frente a RMB53,93 millones, y el margen de beneficio neto cayó al 5,56%. La dirección citó un cambio estratégico hacia productos de mayor margen, una desaceleración de la economía china y el inicio de operaciones fuera de China como razones de la disminución de ingresos. El gasto en I+D fue el 11,86% de los ingresos, y la empresa reportó una patente adicional concedida, llevando el total de patentes concedidas a 20.
Lucas GC (NASDAQ: LGCL)는 2025 회계연도 상반기 결과를 2025년 6월 30일 종료된 6개월에 대해 발표했습니다. 매출은 RMB386.89백만(미화 5,401만 달러)으로 전년동기 대비 36.11% 감소했습니다. 총마진은 200bps 상승하여 33.74%가 되었습니다. 순이익은 RMB21.49백만(미화 3.00백만 달러)으로 전년 RMB53.93백만에서 감소했고 순이익률은 5.56%로 8.91%에서 떨어졌습니다. 경영진은 고마진 제품으로의 전략 전환, 중국 경제의 둔화, 그리고 중국 밖에서의 사업 시작을 매출 감소의 원인으로 지목했습니다. 연구개발(R&D) 비용은 매출의 11.86%였고, 허가된 특허가 하나 추가되어 총 허가 특허는 20건이 되었습니다.
Lucas GC (NASDAQ: LGCL) a publié les résultats du 1er semestre 2025 pour les six mois terminés le 30 juin 2025. Le chiffre d'affaires s'est élevé à RMB386,89 millions (US$54,01 millions), en baisse de 36,11% sur un an par rapport à RMB605,52 millions. La marge brute a progressé de 200 points de base pour atteindre 33,74%. Le résultat net était de RMB21,49 millions (US$3,0 millions), en baisse par rapport à RMB53,93 millions, et la marge nette est passée de 8,91% à 5,56%. La direction a cité un pivot stratégique vers des produits à plus forte marge, un ralentissement de l'économie chinoise et le démarrage des activités en dehors de la Chine comme raisons de la baisse des revenus. Les dépenses de R&D représentaient 11,86% du chiffre d'affaires, et l'entreprise a enregistré une nouvelle patente accordée, portant le total des brevets accordés à 20.
Lucas GC (NASDAQ: LGCL) legte die Ergebnisse für das erste Halbjahr 2025 (6 Monate bis zum 30. Juni 2025) vor. Umsatz betrug RMB386,89 Mio. (US$54,01 Mio.), gegenüber dem Vorjahr ‑36,11%. Bruttomarge stieg um 200 Basispunkte auf 33,74%. Nettogewinn betrug RMB21,49 Mio. (US$3,0 Mio.), verglichen mit RMB53,93 Mio., und Nettomarge fiel von 8,91% auf 5,56%. Das Management nannte eine strategische Verschiebung zu margenstärkeren Produkten, eine Abschwächung der chinesischen Wirtschaft und den Beginn der operativen Tätigkeiten außerhalb Chinas als Gründe für den Umsatzrückgang. Die F&E-Ausgaben betrugen 11,86% des Umsatzes, und das Unternehmen meldete eine weitere erteilte Patent, wodurch die insgesamt erteilten Patente auf 20 anwachsen.
Lucas GC (NASDAQ: LGCL) أبلغت عن نتائج النصف الأول من السنة المالية 2025 للمدة حتى 30 يونيو 2025. الإيرادات بلغت 386.89 مليون يوان صيني (54.01 مليون دولار أمريكي)، منخفضة بنسبة 36.11% على أساس سنوي مقارنة بـ RMB605.52 مليون. هامش الربح الإجمالي ارتفع بمقدار 200 نقطة أساس ليصل إلى 33.74%. صافي الدخل كان RMB21.49 مليون (3.0 مليون دولار)، منخفضاً من RMB53.93 مليون، وانخفض هامش صافي الربح إلى 5.56%. أشارت الإدارة إلى تحول استراتيجي نحو منتجات ذات هوامش أعلى، وتباطؤ الاقتصاد الصيني، وبداية العمليات خارج الصين كأسباب لانخفاض الإيرادات. كانت المصروفات البحث والتطوير 11.86% من الإيرادات، وذكرت الشركة عن براءة اختراع إضافية مُمنوحة، ليصل إجمالي عدد براءات الاختراع الممنوحة إلى 20.
- Gross margin increased by 200 bps to 33.74% (1H2025)
- R&D spending at 11.86% of revenue signals tech investment
- Total granted patents reached 20
- Revenue declined 36.11% to RMB386.89m (US$54.01m) in 1H2025
- Net income fell to RMB21.49m from RMB53.93m year‑over‑year
- Net income margin decreased to 5.56% from 8.91%
Insights
Revenue fell sharply while gross margin improved; profitability weakened despite positive R&D investment and patent gains.
Lucas GC Limited reported revenue of
The main dependencies are clear and explicit: the reported revenue decline links to a stated slowdown in the Chinese economy, a strategic shift to higher‑margin offerings, and expansion efforts outside China. R&D spend remained high at
Watch the company’s next cadence for revenue recovery and margin conversion over the next full fiscal year. Specifically monitor sequential revenue in the next reported period, R&D expense as a percent of revenue, and any disclosure on results from operations outside China over
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 of36.11% . - 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 with8.91% 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
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 | 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 | |||||||||
FAQ
What were Lucas GC (LGCL) 1H 2025 revenues and currency conversion?
How much did Lucas GC's gross margin change in 1H 2025 (LGCL)?
What caused LGCL's revenue decline in 1H 2025 according to management?
What were Lucas GC's net income and net income margin for 1H 2025 (LGCL)?
How much did Lucas GC invest in R&D in 1H 2025 as a percent of revenue (LGCL)?
How many patents does Lucas GC have after the 1H 2025 update (LGCL)?
