Lucas GC Limited Announces 1H 2024 Financial Results: Revenue at US$83.32 million with Increases in Both Gross Margin and Net Income Margin
Lucas GC (NASDAQ: LGCL) announced its financial results for 1H fiscal year 2024. The company reported revenue of US$83.32 million, a 26.16% decrease from the same period last year. However, gross margin improved by 516 bps to 33.54%, and net income margin increased to 8.91% from 6.55% in 1H 2023. Net income reached US$7.42 million.
Operational highlights include a 10% increase in active registered users to 702,060, obtaining two new AI-related patents, and strategic agreements with financial institutions. The company shifted its strategy to focus on selling technology rather than delivering services directly, resulting in higher margins despite lower revenue.
CEO Howard Lee emphasized continued investments in R&D, particularly in AI technologies, with R&D expenses increasing to 13.31% of revenue. The company aims to expand beyond human resources into IT outsourcing and information services, with potential acquisitions or partnerships outside China planned.
Lucas GC (NASDAQ: LGCL) ha annunciato i risultati finanziari per il primo semestre dell'anno fiscale 2024. L'azienda ha riportato un fatturato di 83,32 milioni di dollari, con un calo del 26,16% rispetto allo stesso periodo dell'anno scorso. Tuttavia, il margine lordo è migliorato di 516 punti base, raggiungendo il 33,54%, e il margine di reddito netto è aumentato all'8,91% rispetto al 6,55% del primo semestre 2023. Il reddito netto ha raggiunto 7,42 milioni di dollari.
I punti salienti operativi includono un aumento del 10% degli utenti registrati attivi, raggiungendo 702.060, l'ottenimento di due nuovi brevetti legati all'IA e accordi strategici con istituzioni finanziarie. L'azienda ha cambiato strategia per concentrarsi sulla vendita di tecnologia piuttosto che sulla fornitura diretta di servizi, portando a margini più elevati nonostante il calo del fatturato.
Il CEO Howard Lee ha sottolineato la necessità di continuare gli investimenti in R&S, in particolare nelle tecnologie IA, con le spese per R&S che sono aumentate al 13,31% del fatturato. L'azienda mira ad espandere la propria attività oltre le risorse umane nei servizi di outsourcing IT e informazioni, pianificando possibili acquisizioni o partnership al di fuori della Cina.
Lucas GC (NASDAQ: LGCL) anunció sus resultados financieros para el primer semestre del año fiscal 2024. La compañía reportó ingresos de 83,32 millones de dólares, lo que representa una disminución del 26,16% en comparación con el mismo período del año anterior. Sin embargo, el margen bruto mejoró en 516 puntos básicos, alcanzando el 33,54%, y el margen de ingresos netos aumentó a 8,91% desde el 6,55% en el primer semestre de 2023. El ingreso neto alcanzó 7,42 millones de dólares.
Los aspectos destacados operacionales incluyen un aumento del 10% en usuarios registrados activos, alcanzando los 702,060, la obtención de dos nuevas patentes relacionadas con la IA y acuerdos estratégicos con instituciones financieras. La empresa cambió su estrategia para centrarse en la venta de tecnología en lugar de la prestación de servicios directos, resultando en márgenes más altos a pesar de la disminución de ingresos.
El CEO Howard Lee enfatizó la necesidad de continuar las inversiones en I+D, especialmente en tecnologías de IA, con los gastos de I+D aumentando al 13,31% de los ingresos. La empresa tiene como objetivo expandirse más allá de los recursos humanos hacia la subcontratación de TI y servicios de información, con adquisiciones o asociaciones planificadas fuera de China.
루카스 GC (NASDAQ: LGCL)가 2024 회계연도 1분기 재무 결과를 발표했습니다. 회사는 8,332만 달러의 수익을 보고했으며, 이는 지난해 같은 기간 대비 26.16% 감소한 수치입니다. 그러나 총 마진은 516bp 증가하여 33.54%에 달하고, 순이익 마진은 6.55%에서 8.91%로 증가했습니다. 순이익은 742만 달러에 달했습니다.
운영 하이라이트로는 활성 등록 사용자 10% 증가로 702,060명을 기록하고, 두 개의 AI 관련 특허를 획득하며, 금융 기관과의 전략적 협정을 포함합니다. 회사는 서비스를 직접 제공하기보다는 기술 판매에 집중하는 전략으로 전환하여 수익 감소에도 불구하고 더 높은 마진을 달성했습니다.
CEO 하워드 리는 AI 기술에 대한 연구 및 개발(R&D) 투자 지속의 필요성을 강조하며, R&D 비용 비율이 수익의 13.31%로 증가했다고 밝혔습니다. 회사는 인적 자원 분야를 넘어 IT 아웃소싱 및 정보 서비스로 확장할 계획이며, 중국 외부에서의 인수 또는 파트너십도 계획하고 있습니다.
Lucas GC (NASDAQ: LGCL) a annoncé ses résultats financiers pour le premier semestre de l'exercice 2024. L'entreprise a rapporté un chiffre d'affaires de 83,32 millions de dollars, soit une baisse de 26,16% par rapport à la même période de l'année précédente. Cependant, la marge brute s'est améliorée de 516 points de base pour atteindre 33,54%, et la marge bénéficiaire nette a augmenté à 8,91% contre 6,55% au premier semestre 2023. Le bénéfice net s'est élevé à 7,42 millions de dollars.
Les faits saillants opérationnels incluent une augmentation de 10% des utilisateurs inscrits actifs, atteignant 702 060, l'obtention de deux nouveaux brevets liés à l'IA et des accords stratégiques avec des institutions financières. L'entreprise a modifié sa stratégie pour se concentrer sur la vente de technologie plutôt que sur la fourniture directe de services, ce qui a conduit à des marges plus élevées malgré la baisse des revenus.
Le PDG Howard Lee a souligné la nécessité de continuer à investir dans la R&D, en particulier dans les technologies liées à l'IA, les dépenses de R&D ayant augmenté à 13,31% des revenus. L'entreprise vise à s'étendre au-delà des ressources humaines vers l'externalisation informatique et les services d'information, avec des acquisitions ou des partenariats potentiels prévus en dehors de la Chine.
Lucas GC (NASDAQ: LGCL) hat seine finanziellen Ergebnisse für das erste Halbjahr des Geschäftsjahres 2024 bekannt gegeben. Das Unternehmen berichtete von einem Umsatz von 83,32 Millionen US-Dollar, was einem Rückgang von 26,16% im Vergleich zum gleichen Zeitraum des Vorjahres entspricht. Der Bruttomargin hingegen verbesserte sich um 516 Basispunkte auf 33,54%, und die Nettomarge stieg auf 8,91% von 6,55% im 1. Halbjahr 2023. Der Nettogewinn erreichte 7,42 Millionen US-Dollar.
Zu den operativen Höhepunkten gehören ein 10% Anstieg der aktiven registrierten Nutzer auf 702.060, der Erhalt von zwei neuen KI-bezogenen Patenten und strategische Vereinbarungen mit Finanzinstituten. Das Unternehmen hat seine Strategie geändert, um sich auf den Verkauf von Technologie anstelle der direkten Dienstleistungserbringung zu konzentrieren, was trotz des Rückgangs des Umsatzes zu höheren Margen führte.
CEO Howard Lee betonte die kontinuierlichen Investitionen in F&E, insbesondere in KI-Technologien, wobei die F&E-Ausgaben auf 13,31% des Umsatzes gestiegen sind. Das Unternehmen plant eine Expansion über den Bereich Personalwesen hinaus in die IT-Outsourcing- und Informationsdienstleistungen und plant dabei potenzielle Übernahmen oder Partnerschaften außerhalb Chinas.
- Gross margin improved by 516 bps to 33.54%
- Net income margin increased to 8.91% from 6.55% in 1H 2023
- 10% increase in active registered users to 702,060
- Obtained two new AI-related patents, bringing total to 18
- Strategic agreements signed with major financial institutions for AI technology integration
- Shift in strategy towards higher-margin technology sales
- Continued investment in R&D, particularly in AI technologies
- Revenue decreased by 26.16% to US$83.32 million compared to 1H 2023
- R&D expenses increased by 2.45% compared to 1H 2023
Insights
Lucas GC 's 1H 2024 results present a mixed picture. While revenue decreased by
- Gross margin improved significantly by 516 basis points to
33.54% - Net income margin increased from
6.55% to8.91% - Net income slightly increased to
$7.42 million
The company's strategic shift towards becoming a technology provider rather than a service company explains the revenue decline but also the margin improvements. This pivot could lead to more scalable and profitable operations in the long term. The 10% growth in active users to 702,060 and increased R&D spending (
Lucas GC's technological advancements are noteworthy:
- Obtained two new AI-related patents, bringing the total to 18
- Increased focus on AI LLM (Large Language Model) technology for wealth management
- Investments in GPT and AIGC technologies
The company's pivot to becoming a technology provider is evident in its strategic agreements with financial institutions and AI companies. This positions Lucas GC to capitalize on the growing demand for AI solutions in finance and HR. The increased R&D spending (
NEW YORK, Sept. 26, 2024 (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, insurance and wealth management industry verticals, today announced its financial results for 1H fiscal year of 2024.
1H 2024 Financial Highlights
- Our revenue was RMB605.52 million (US
$83.32 million ) for the six months ended June 30, 2024, compared with RMB820.07 million for the six months ended June 30, 2023, representing a decrease of26.16% . - We recorded a gross margin of
33.54% for the six months ended June 30, 2024, representing an increase of 516 bps compared with that of the six months ended June 30, 2023. - We recorded net income of RMB53.93 million (US
$7.42 million ) for the six months ended June 30, 2024, compared with RMB53.69 million for the six months ended June 30, 2023. - Our net income margin increased to
8.91% for the six months ended June 30, 2024, compared with6.55% for the six months ended June 30, 2023.
1H 2024 Operational Highlights
- Increased active registered users by
10% to 702,060 in 1H 2024 as compared to Dec 2023. - Obtained two patents related to core Artificial Intelligence (AI) technology, bringing the total number of granted patents to 18.
- Signed two strategic agreements with publicly traded financial institutions, i.e. Bank of Ningbo and Industrial Securities Co., Limited., to port the AI LLM technology into wealth management vertical.
- Signed a strategic agreement with Beijing Fourth Paradigm Technology Co., Limited to develop Artificial Intelligence training programs.
- Won The 2024 Cberi Prize in The Most Valuable Brand for Investment during the Asian Brand Economy Conference (ABEC).
Management Commentary
Howard Lee, Chief Executive Officer of Lucas, said “We adopted a change of strategy in 1H 2024. We decided to position ourselves as a technology company rather than a service company. As a result, we started selling our technology to peers and let them deliver the assignments themselves, rather than compete with them. We tried to reduce our activities in delivering the recruitment assignments directly ourselves, and instead we focused on selling the technology and information to our peers and clients with products that have higher margins than those of assignment delivery services. That’s why we had significant gross margin improvement in 1H 2024 compared to 1H 2023. The revenue decrease was due to our change of strategy to focus on higher-margin products, as well as the effect of one-time post COVID recovery spike in China, making 1H 2023 a higher-than-normal-business-run-rate comparison.”
“In order to sustain our technological leads as a technology company, we have continued to invest significantly in research and development. R&D expenses increased by
“We had a strong growth of our user base: our active registered users reached 702,060 by June 2024, representing
About Lucas GC Limited
With 18 granted U.S. and Chinese patents and over 74 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 with over 702,060 agents working on its platform. Lucas’ technologies have been applied to the human resources, insurance and wealth management 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, | As of June 30, | ||||||||
| 2023 | 2024 | ||||||||
| RMB | RMB | US$ | |||||||
| (Unaudited) | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 30,123 | 51,513 | 7,088 | ||||||
| Restricted cash | 100 | - | - | ||||||
| Accounts receivable, net | 28,144 | 46,448 | 6,391 | ||||||
| Advance to suppliers, net | 164,802 | 223,004 | 30,686 | ||||||
| Deferred offering costs | 6,541 | 706 | 97 | ||||||
| Prepaid expenses and other current assets | 1,626 | 1,616 | 222 | ||||||
| Total current assets | 231,336 | 323,287 | 44,484 | ||||||
| Non-current assets | |||||||||
| Software and equipment, net | 48,299 | 76,388 | 10,511 | ||||||
| Operating lease right-of-use assets, net | 84 | 797 | 110 | ||||||
| Deferred tax assets | 12,103 | 12,897 | 1,775 | ||||||
| Total non-current assets | 60,486 | 90,082 | 12,396 | ||||||
| TOTAL ASSETS | 291,822 | 413,369 | 56,880 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Short-term borrowings | 39,381 | 57,829 | 7,958 | ||||||
| Accounts payable | 35,217 | 51,997 | 7,155 | ||||||
| Contract liabilities | 13,552 | 17,203 | 2,367 | ||||||
| Income tax payable | 131 | 131 | 18 | ||||||
| Amounts due to related parties | 3,097 | 2,120 | 292 | ||||||
| Operating lease liabilities, current | 86 | 449 | 62 | ||||||
| Accrued expenses and other current liabilities | 3,766 | 3,580 | 490 | ||||||
| Total current liabilities | 95,230 | 133,309 | 18,342 | ||||||
| Operating lease liabilities, non-current | - | 401 | 55 | ||||||
| Total non-current liability | - | 401 | 55 | ||||||
| TOTAL LIABILITIES | 95,230 | 133,710 | 18,397 | ||||||
| Shareholders’ equity | |||||||||
| Ordinary shares (US 10,000,000,000 and 10,000,000,000 shares authorized as of December 31, 2023 and June 30, 2024; 78,063,300 and 78,063,300 shares issued and outstanding as of December 31, 2023 and June 30, 2024, respectively) | 3 | 3 | - | ||||||
| Subscription receivables | (3 | ) | (3 | ) | - | ||||
| Additional paid-in capital | 113,554 | 142,255 | 19,575 | ||||||
| Statutory reserve | 19,559 | 23,758 | 3,269 | ||||||
| Retained earnings | 61,041 | 110,372 | 15,188 | ||||||
| Accumulated other comprehensive (loss)/income | (11 | ) | 427 | 59 | |||||
| Total Lucas GC Limited shareholders’ equity | 194,143 | 276,812 | 38,091 | ||||||
| Non-controlling interests | 2,449 | 2,847 | 392 | ||||||
| Total shareholders’ equity | 196,592 | 279,659 | 38,483 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 291,822 | 413,369 | 56,880 | ||||||
| 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, | |||||||||
| 2023 | 2024 | ||||||||
| RMB | RMB | US$ | |||||||
| (Unaudited) | (Unaudited) | ||||||||
| Revenues | |||||||||
| Recruitment service | 395,360 | 155,812 | 21,440 | ||||||
| Outsourcing service | 366,550 | 418,456 | 57,581 | ||||||
| Others | 58,162 | 31,250 | 4,300 | ||||||
| Total revenues | 820,072 | 605,518 | 83,321 | ||||||
| Cost of revenues | (587,382 | ) | (402,438 | ) | (55,377 | ) | |||
| Gross profit | 232,690 | 203,080 | 27,944 | ||||||
| Operating expenses | |||||||||
| Selling and marketing expenses | (41,678 | ) | (39,000 | ) | (5,367 | ) | |||
| General and administrative expenses | (61,389 | ) | (30,298 | ) | (4,169 | ) | |||
| Research and development expenses | (78,675 | ) | (80,612 | ) | (11,093 | ) | |||
| Total operating expenses | (181,742 | ) | (149,910 | ) | (20,629 | ) | |||
| Income from operations | 50,948 | 53,170 | 7,315 | ||||||
| Other/(expenses) income | |||||||||
| Financial expenses, net | (273 | ) | (754 | ) | (104 | ) | |||
| Other income, net | 2,535 | 718 | 99 | ||||||
| Total other income/(expenses), net | 2,262 | (36 | ) | (5 | ) | ||||
| Income before income tax benefit | 53,210 | 53,134 | 7,310 | ||||||
| Income tax benefit | 482 | 794 | 109 | ||||||
| Net income | 53,692 | 53,928 | 7,419 | ||||||
| Less: net income attributable to non-controlling interests | (397 | ) | (398 | ) | (55 | ) | |||
| Net income attributable to Lucas GC Limited | 53,295 | 53,530 | 7,364 | ||||||
| Net income | 53,692 | 53,928 | 7,419 | ||||||
| Other comprehensive income: | |||||||||
| Foreign currency translation difference, net of tax of nil | 6 | 438 | 60 | ||||||
| Total comprehensive income | 53,698 | 54,366 | 7,479 | ||||||
| Less: total comprehensive income attributable to non-controlling interests | (397 | ) | (398 | ) | (55 | ) | |||
| Comprehensive income attributable to Lucas GC Limited | 53,301 | 53,968 | 7,424 | ||||||
| Net income per share: | |||||||||
| Basic | 0.68 | 0.69 | 0.09 | ||||||
| Diluted | 0.68 | 0.69 | 0.09 | ||||||
| Weighted average shares outstanding used in calculating basic and diluted loss per share: | |||||||||
| Basic | 78,063,300 | 78,063,300 | 78,063,300 | ||||||
| Diluted | 78,063,300 | 78,063,300 | 78,063,300 | ||||||
FAQ
What was Lucas GC 's revenue for 1H 2024?
How did Lucas GC 's gross margin change in 1H 2024?
What was the net income of Lucas GC (LGCL) in 1H 2024?
How many active registered users did Lucas GC (LGCL) have by June 2024?
What strategic shift did Lucas GC (LGCL) implement in 1H 2024?
