Lucas GC Reports First Half Results with Revenue Decline and Improved Profit Margins
Lucas GC (LGCL) reported first-half revenue of RMB 245.3 million, a year-over-year decline of 36.6%, attributed to softer demand and the company's strategic shift away from low-margin business lines. Despite lower sales, gross margin improved by 1.7 percentage points to 35.4%, resulting in higher gross profit at RMB 86.9 million. Operating expenses fell sharply by 47% year-over-year to RMB 61 million, contributing to a significant rise of 69.1% in operating income to RMB 25.9 million. Net income declined only slightly by 7.6%, settling at RMB 19.9 million, while the net margin increased from 5.5% to 8.0%. The company also saw a surge in financing cash flow due to a private placement that raised RMB 280 million in gross proceeds.
Tickers: $LGCL
Topics: financing gross margin net income operating income revenue