(MENAFN- GlobeNewsWire - Nasdaq) 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:

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.

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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

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