Lucas GC Limited Announces 1H 2024 Financial Results: Revenue at US$83.32 million with Increases in Both Gross Margin and Net Income Margin

Core Viewpoint - Lucas GC Limited reported a significant revenue decrease of 26.16% in the first half of fiscal year 2024 compared to the same period in 2023, attributed to a strategic shift towards higher-margin technology sales rather than direct service delivery [2][4]. Financial Highlights - Revenue for 1H 2024 was RMB605.52 million (US$83.32 million), down from RMB820.07 million in 1H 2023 [2]. - Gross margin improved to 33.54%, an increase of 516 basis points from the previous year [2]. - Net income for 1H 2024 was RMB53.93 million (US$7.42 million), slightly up from RMB53.69 million in 1H 2023 [2]. - Net income margin increased to 8.91% from 6.55% year-over-year [2]. Operational Highlights - Active registered users grew by 10% to 702,060 compared to December 2023 [3]. - The company obtained two new patents, bringing the total to 18 [3]. - Strategic agreements were signed with Bank of Ningbo and Industrial Securities Co., Limited to integrate AI technology into wealth management [3]. - A partnership was established with Beijing Fourth Paradigm Technology Co., Limited for AI training programs [3]. - Lucas won The 2024 Cberi Prize for Most Valuable Brand for Investment at the Asian Brand Economy Conference [3]. Management Commentary - The CEO indicated a strategic pivot to focus on technology sales rather than service delivery, which has led to improved gross margins [4]. - R&D expenses increased by 2.45% year-over-year, with R&D accounting for 13.31% of revenue in 1H 2024, up from 9.59% in 1H 2023 [4]. - The growth in the user base is expected to drive future revenue growth across various sectors, including IT outsourcing and information services [4]. - The company plans to pursue acquisitions or partnerships outside China to enhance shareholder value [4]. Company Overview - Lucas GC Limited is an AI technology-driven Platform-as-a-Service (PaaS) company with 18 granted patents and over 74 registered software copyrights in AI, data analytics, and blockchain technologies [5].