Lucas GC Limited Announces 1H 2026 Financial Results: Revenue at US$35.74 million with Increases in Gross Margin

NEW YORK, Oct. 07, 2026 (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, applying such technologies in human resources and insurance industry verticals today announced its financial results for 1H fiscal year of 2026.

1H 2026 Financial Highlights

• Our revenue was RMB245.3 million (US$35.7 million) for the six months ended June 30, 2026, compared with RMB386.9 million for the six months ended June 30, 2025, representing a decrease of 36.6%.
  
• We recorded a gross margin of 35.4% for the six months ended June 30, 2026, representing an increase of 1.7% compared with that of the six months ended June 30, 2025.
  
• We recorded net income of RMB19.9 million (US$2.9 million) for the six months ended June 30, 2026, compared with RMB21.5 million for the six months ended June 30, 2025.
  
• Our net income margin increased to 8.0% for the six months ended June 30, 2026, compared with 5.5% for the six months ended June 30, 2025.

Management Commentary

Howard Lee, Chief Executive Officer of Lucas, said: “Our first-half performance highlights the success of our ongoing pivot from providing traditional service into higher value-added technology services. While macroeconomic headwinds in China and our strategic shift from lower-margin contracts impacted top-line revenue, our focus on higher-margin product lines and expansion delivered remarkable bottom-line expansion. In return, our gross margin expanded by 1.7% to 35.4%, while net income decreased slightly by 7.6% year-over-year to RMB19.9 million, with a net margin of 8.0%.”

Comparison of Interim Financial Results for the six months ended June 30, 2025 and 2026

The following table summarizes the results of our operations during the six months ended June 30, 2025 and 2026, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

		For the Period Ended June 30,															Variance
		2025						2026									Amount			Percentage
		RMB			%			RMB			US$			%			RMB			%
		(In thousands, except percentages)
Total revenues		386,890			100.0			245,285			35,744			100.0			(141,605	)		(36.6	)
Cost of revenues		(256,355	)		(66.3	)		(158,392	)		(23,081	)		(64.6	)		(97,963	)		(38.2	)
Gross profit		130,535			33.7			86,893			12,663			35.4			(43,642	)		(33.4	)
Operating expenses
Selling and marketing expenses		(30,562	)		(7.9	)		(19,204	)		(2,798	)		(7.8	)		(11,358	)		(37.2	)
General and administrative expenses		(38,798	)		(10.0	)		(17,807	)		(2,595	)		(7.3	)		(20,991	)		(54.1	)
Research and development expenses		(45,881	)		(11.9	)		(24,017	)		(3,500	)		(9.8	)		(21,864	)		(47.7	)
Total operating expenses		(115,241	)		(29.8	)		(61,028	)		(8,893	)		(24.9	)		(54,213	)		(47.0	)
Income from operations		15,294			3.9			25,865			3,770			10.5			10,571			69.1
Other income (expenses)
Financial expenses, net		(325	)		(0.1	)		(1,402	)		(204	)		(0.6	)		1,077			331.4
Other (expenses) income, net		(89	)		(0.0	)		13			2			0.0			102			114.6
Total other expenses, net		(414	)		(0.1	)		(1,389	)		(202	)		(0.6	)		975			235.5
Income before income tax benefit (expenses)		14,880			3.8			24,476			3,568			9.9			9,596			64.5
Income tax benefit (expenses)		6,613			1.7			(4,620	)		(673	)		(1.9	)		(11,233	)		(169.9	)
Net income		21,493			5.5			19,856			2,895			8.0			(1,637	)		(7.6	)

Revenues

Our revenues decreased by approximately RMB141.6 million, or 36.6%, from RMB386.9 million for the six months ended June 30, 2025 to RMB245.3 million (US$35.7 million) for the six months ended June 30, 2026, primarily due to a decrease of revenues from outsourcing service. The following table sets forth a breakdown of our revenues, each expressed in the absolute amount and as a percentage of our total revenues, for the periods indicated:

		For the Six Months Ended June 30,															Variance
		2025						2026									Amount			Percentage
		RMB			%			RMB			US$			%			RMB			%
		(In thousands, except percentages)
Revenues:
Recruitment service		31,806			8.2			26,266			3,828			10.7			(5,540	)		(17.4	)
Outsourcing service		334,471			86.5			213,656			31,134			87.1			(120,815	)		(36.1	)
Others		20,613			5.3			5,363			782			2.2			(15,250	)		(74.0	)
Total revenues		386,890			100.0			245,285			35,744			100.0			(141,605	)		(36.6	)

Revenues from recruitment services decreased by RMB5.5 million, or 17.4%, from RMB31.8 million for the six months ended June 30, 2025 to RMB26.3 million (US$3.8 million) for the six months ended June 30, 2026. Broader macroeconomic headwinds led corporate customers to exercise caution regarding headcount growth, resulting in lower volume for traditional recruitment placements as clients increasingly favored outsourced workforce solutions.

Revenues from outsourcing services decreased by approximately RMB120.8 million, or 36.1%, from RMB334.5 million for the six months ended June 30, 2025 to RMB213.7 million (US$31.1 million) for the six months ended June 30, 2026. The decrease was primarily driven by a reduction in corporate customer demand, as customers exercised spending discipline and deferred investments in custom IT systems, process automation, and labor-optimization projects. To mitigate these top-line headwinds, management focused on optimizing our service mix by prioritizing toward higher-value technology solutions during the period.

Revenues from other services decreased by RMB15.3 million, or 74.0%, from RMB20.6 million for the six months ended June 30, 2025 to RMB5.4 million (US$0.8 million) for the six months ended June 30, 2026. The decrease was mainly due to softened demand for non-core information technology services as clients exercised budget discipline amid a challenging economic climate.

Cost of revenues

Our cost of revenues decreased by approximately RMB98.0 million, or 38.2%, from RMB256.4 million for the six months ended June 30, 2025 to RMB158.4 million (US$23.1 million) for the six months ended June 30, 2026, which was mainly due to the decrease in outsourcing service, which had higher cost. The following table sets forth a breakdown of our cost of revenues by revenue streams, expressed as an absolute amount and as a percentage of the total revenues, for the periods indicated.

		For the Six Months Ended June 30,															Variance
		2025						2026									Amount			Percentage
		RMB			%			RMB			US$			%			RMB			%
		(In thousands, except percentages)
Cost of revenues:
Recruitment service		17,873			4.6			12,708			1,852			5.2			(5,165	)		(28.9	)
Outsourcing service		224,733			58.1			142,453			20,758			58.1			(82,280	)		(36.6	)
Others		13,749			3.6			3,231			471			1.3			(10,518	)		(76.5	)
Total cost of revenues		256,355			66.3			158,392			23,081			64.6			(97,963	)		(38.2	)

Cost related to recruitment services decreased by approximately RMB5.2 million, or 28.9%, from RMB17.9 million for the six months ended June 30, 2025 to RMB12.7 million (US$1.9 million) for the six months ended June 30, 2026, primarily due to the decrease of revenues in recruitment service.

Cost related to outsourcing services decreased by approximately RMB82.3 million, or 36.6%, from RMB224.7 million for the six months ended June 30, 2025 to RMB142.5 million (US$20.8 million) for the six months ended June 30, 2026, primarily attributable to the decline in active outsourcing project volume, which reduced direct operational expenditures, including fees paid to third-party partners.

Cost related to other services decreased by approximately RMB10.5 million, or 76.5%, from RMB13.7 million for the six months ended June 30, 2025 to RMB3.2 million (US$0.5 million) for the six months ended June 30, 2026, primarily in line with the decrease in other services.

Gross profits and margin

The following table sets forth a breakdown of our gross profit, margin by revenue streams, expressed as an absolute amount and as a percentage of their corresponding revenues for the periods indicated.

		For the Six Months Ended June 30,															Variance
		2025						2026									Amount			Percentage
		RMB			%			RMB			US$			%			RMB			%
		(In thousands, except percentages)
Gross profits:
Recruitment service		13,933			3.6			13,558			1,976			5.5			(375	)		(2.7	)
Outsourcing service		109,738			28.4			71,203			10,376			29.0			(38,535	)		(35.1	)
Others		6,864			1.7			2,132			311			0.9			(4,732	)		(68.9	)
Total gross profits		130,535			33.7			86,893			12,663			35.4			(43,642	)		(33.4	)

As a result of the foregoing, we recorded a gross profit of RMB130.5 million and RMB86.9 million (US$12.7 million) for the six months ended June 30, 2025 and 2026, respectively. Moreover, our strategic transit from pursuing revenue scale expansion to driving value optimization through gross margin enhancement, attributable to slightly gross profit margin increase from 33.7% to 35.4% in 2025 and 2026, respectively.

Operating expenses

Our operating expenses decreased from RMB115.2 million for the six months ended June 30, 2025 to RMB61.0 million (US$8.9 million) for the six months ended June 30, 2026, representing a decrease of 47.0%, primarily due to the following:

General and administrative expenses

Our general and administrative expenses decreased by 54.1% from RMB38.8 million for the six months ended June 30, 2025 to RMB17.8 million (US$2.6 million) for the six months ended June 30, 2026, which was primarily due to the decrease of RMB22.6 million (US$3.3 million) in user support operation expenses, for which we were able to normalize support spending and optimizing administrative overhead.

Research and development expenses

Our research and development expenses decreased by 47.7% from RMB45.9 million for the six months ended June 30, 2025 to RMB24.0 million (US$3.5 million) for the six months ended June 30, 2026. This reduction was primarily attributable to engineering efficiencies gained from our prior-period platform investments, which reduced the need for major AI model updates during the period. We will continue allocating capital toward high-ROI technology initiatives to support long-term commercialization and margin expansion.

Selling and marketing expenses

Our selling and marketing expenses decreased by 37.2% from RMB30.6 million for the six months ended June 30, 2025 to RMB19.2 million (US$2.8 million) for the six months ended June 30, 2026, which was mainly due to our commercial strategy toward margin optimization and organic client retention. Leveraging strong recurring relationships with returning corporate customers allowed us to streamline customer acquisition expenditure while continuing to serve the high-value enterprise accounts that power our core outsourcing business.

Other income/(expenses), net

Total other expenses, net increased by 235.5% from RMB0.4 million for the six months ended June 30, 2025 to RMB1.4 million (US$0.2 million) for the six months ended June 30, 2026.

Financial expenses mainly consist of interest income and expenses, bank charges and exchange gain or loss. Our financial expenses, net increased from RMB0.3 million for the six months ended June 30, 2025 to RMB1.4 million (US$0.2 million) for the six months ended June 30, 2026 primarily due to the increased bank interest expenses from 1.0 million for the six months ended June 30, 2025 to 1.5 million for the six months ended June 30, 2026; and the increase is offset by the exchange gain, which decreased from 0.7 million for the six months ended June 30, 2025 to 0.07 million for the six months ended June 30, 2026.

Income tax benefits (expenses)

We recorded an income tax expense of RMB4.6 million (US$0.7 million) for the six months ended June 30, 2026, compared to an income tax benefit of RMB6.6 million for the six months ended June 30, 2025. This swing from a tax benefit to a tax expense was primarily attributable to the utilization of net operating loss carryforwards as profitability improved, alongside adjustments to recognized deferred tax assets associated with R&D tax credit incentives and prior-year loss carryforwards.

Net income

As a result of the foregoing, our net income decreased slightly by RMB1.6 million, from RMB21.5 million for the six months ended June 30, 2025 to RMB19.9 million (US$2.9 million) for the six months ended June 30, 2026.

Cash Flow

As of June 30, 2026, we had cash and cash equivalents of RMB10.4 million (US$1.5 million). The following table sets forth a summary of cash flows for the periods indicated:

		For the Six Months Ended June 30,									Variances
		2025			2026						Amount			Percentage
		RMB			RMB			US$			RMB			%
		(In thousands, except for percentages)
Net cash provided by operating activities		4,349			8,345			1,217			3,996			91.9
Net cash used in investing activities		(68,789	)		(309,602	)		(45,116	)		240,813			350.1
Net cash provided by financing activities		63,368			284,824			41,505			221,456			349.5
Effect of exchange rate changes on cash and cash equivalents		(507	)		(3,455	)		(405	)		2,948			581.5
Net decrease in cash and cash equivalents		(1,579	)		(19,888	)		(2,799	)		18,309			1,159.5
Cash and cash equivalents at the beginning of period		31,661			30,305			4,334			(1,356	)		(4.3	)
Cash and cash equivalents at the end of period		30,082			10,417			1,535			(19,665	)		(65.4	)

Cash flows from operating activities

For the six months ended June 30, 2026, our net cash provided by operating activities was RMB8.3 million (US$1.2 million), which was primarily attributable to (i) net income of RMB19.9 million (US$2.9 million), primarily adjusted for depreciation of software and equipment of RMB9.8 million (US$1.4 million) and provision of expected credit losses of RMB3.2 million; (ii) an increase in advances to suppliers of RMB44.5 million (US$6.5 million), primarily due to increased upfront payments made to secure critical capacity and vendor resources for ongoing IT outsourcing deployments; (iii) an increase in accounts receivable of RMB76.9 million (US$11.2 million), primarily driven by a concentration of project completions and customer billings toward the end of the second quarter for which collections remain outstanding; (iv) an increase in accounts payable of RMB74.9 million (US$10.9 million) due to the timing of vendor settlements near the end of the interim period; and (v) an increase in contract liabilities of RMB17.3 million (US$2.5 million) due to the additional cash prepayments collected from customers in advance of product delivery and milestone completions.

For the six months ended June 30, 2025, our net cash provided by operating activities was RMB4.3 million, which was primarily attributable to (i) net income of RMB21.5 million, primarily adjusted for depreciation of software and equipment of RMB5.7 million and provision of expected credit losses of RMB3.2 million; (ii) an increase in prepaid expenses and other current assets of RMB5.0 million; (iii) an increase in deferred tax assets of RMB6.6 million, driven by expanded R&D expenditure and tax loss carryforwards; and offset by (iv) a decrease in accounts receivable of RMB10.7 million, reflecting cash collections from clients on outstanding balances during the period; (v) a decrease in accounts payable of RMB18.7 million, resulting from the timely settlement and payment of outstanding vendor balances; and (vi) a decrease in contract liabilities of RMB8.1 million, primarily due to the recognition of unearned revenue as performance obligations were fulfilled for advance customer prepayments.

Investing activities

For the six months ended June 30, 2026, our net cash used in investing activities was RMB309.6 million (US$45.1 million), which was primarily due to (i) purchase of software and equipment of RMB6.6 million (US$1.0 million); (ii) purchase of research development of RMB23.6 million (US$3.4 million); and (iii) deposits for investment in partnership entities of RMB279.4 million (US$40.7 million).

For the six months ended June 30, 2025, our net cash used in investing activities was RMB68.8 million, which was primarily due to (i) purchase of software and equipment of RMB29.5 million; (ii) purchase of research development of RMB19.2 million; and (iii) deposits for investment in partnership entities of RMB21.5 million.

Financing activities

For the six months ended June 30, 2026, our net cash provided by financing activities was RMB284.8 million (US$41.5 million), which was primarily attributable to (i) proceeds from short-term borrowings of RMB47.0 million (US$6.8 million); (ii) sale of ordinary shares through private placement of RMB280.0 million (US$40.8 million); and offset by (iii) repayment of short-term borrowing of RMB44.0 million (US$6.4 million).

For the six months ended June 30, 2025, our net cash provided by financing activities was RMB63.4 million, which was primarily attributable to (i) proceeds from short-term borrowings of RMB55.0 million; (ii) sale of public shares through public offering of RMB43.6 million; offset by (iii) repayment of short-term borrowing of RMB31.7 million; (iv) payments of offering costs related to follow-on offering of RMB1.3 million; and (v) repayment to a related party of RMB2.3 million.

About Lucas GC Limited

With 24 granted U.S. and Chinese patents and over 75 registered software copyrights in AI, data analytics and blockchain technologies, Lucas GC Limited is an AI technology-driven PaaS company, applying such technologies in human resources and insurance industry verticals. For more information, please visit: 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,
		2025				2026
		RMB				RMB				US$
		(Audited)				(Unaudited)
ASSETS
Current assets
Cash and cash equivalents			30,305				10,417				1,535
Short-term investments			4,813				4,780				704
Accounts receivable, net			30,730				104,415				15,389
Advance to suppliers, net			156,289				200,760				29,589
Deferred offering costs			104				104				15
Prepaid expenses and other current assets			3,010				4,125				608
Total current assets			225,251				324,601				47,840
Non-current assets
Software and equipment, net			154,125				150,941				22,246
Development expenditures			34,816				58,400				8,607
Operating lease right-of-use assets, net			124				186				27
Deferred tax assets, net			19,800				15,179				2,237
Deposits for investment in partnership entities			19,721				299,134				44,088
Total non-current assets			228,586				523,840				77,205
TOTAL ASSETS			453,837				848,441				125,045
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings			94,861				97,861				14,423
Accounts payable			35,530				110,453				16,279
Contract liabilities			2,764				20,026				2,952
Income tax payable			55				54				8
Amounts due to related parties			5,547				7,371				1,086
Operating lease liabilities, current			-				105				15
Accrued expenses and other current liabilities			977				1,992				292
Total current liabilities			139,734				237,862				35,055
Operating lease liabilities, non-current			-				81				12
Total non-current liability			-				81				12
TOTAL LIABILITIES			139,734				237,943				35,067
Shareholders’ equity
Class A Ordinary shares (US$0.0002 par value; 235,000,000 shares authorized as of December 31, 2025 and June 30, 2026; 2,792,810 shares issued and 2,790,404 shares outstanding as of December 31, 2025 and 42,792,810 shares issued and 42,790,404 shares outstanding as of June 30, 2026)			3				57				8
Class B Ordinary Shares (US$0.0002 par value; 15,000,000 shares authorized as of December 31, 2025 and June 30, 2026; nil shares issued and outstanding as of December 31, 2025 and June 30, 2026)			-				-				-
Subscription receivables			(3	)			(3	)			-
Treasury Stock			(856	)			(856	)			(126	)
Additional paid-in capital			182,968				462,914				68,226
Statutory reserve			25,836				25,836				3,808
Retained earnings			104,335				124,044				18,282
Accumulated other comprehensive loss			(998	)			(4,459	)			(657	)
Total Lucas GC Limited shareholders’ equity			311,285				607,533				89,541
Non-controlling interests			2,818				2,965				437
Total shareholders’ equity			314,103				610,498				89,978
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			453,837				848,441				125,045

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,
		2025				2026
		RMB				RMB				US$
		(Unaudited)				(Unaudited)
Revenues
Recruitment service			31,806				26,266				3,828
Outsourcing service			334,471				213,656				31,134
Others			20,613				5,363				782
Total revenues			386,890				245,285				35,744
Cost of revenues			(256,355	)			(158,392	)			(23,081	)
Gross profit			130,535				86,893				12,663
Operating expenses
Selling and marketing expenses			(30,562	)			(19,204	)			(2,798	)
General and administrative expenses			(38,798	)			(17,807	)			(2,595	)
Research and development expenses			(45,881	)			(24,017	)			(3,500	)
Total operating expenses			(115,241	)			(61,028	)			(8,893	)
Income from operations			15,294				25,865				3,770
Other expenses
Financial expenses net			(325	)			(1,402	)			(204	)
Other (expenses) income, net			(89	)			13				2
Total other expenses, net			(414	)			(1,389	)			(202	)
Income before income tax benefit (expenses)			14,880				24,476				3,568
Income tax benefit (expenses)			6,613				(4,620	)			(673	)
Net income			21,493				19,856				2,895
Less: net income attributable to non-controlling interests			(159	)			(147	)			(21	)
Net income attributable to Lucas GC Limited’s ordinary shareholders			21,334				19,709				2,874
Net income			21,493				19,856				2,895
Other comprehensive income:
Foreign currency translation difference, net of tax			(506	)			(3,461	)			(504	)
Total comprehensive income			20,987				16,395				2,391
Less: total comprehensive income attributable to non-controlling interests			(159	)			(147	)			(21	)
Comprehensive income attributable to Lucas GC Limited			20,828				16,248				2,370
Earnings per share for Class A and Class B ordinary shares:
Basic			10.55				0.58				0.08
Diluted			10.55				0.58				0.08
Weighted average number of Class A and Class B ordinary shares outstanding used in calculating basic and diluted earnings per share:
Basic			2,022,399				34,171,619				34,171,619
Diluted			2,022,399				34,171,619				34,171,619

LUCAS GC LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (All amounts in thousands, except for share and per share data, or otherwise noted)
		Ordinary Shares				Treasury Stock					Subscription			Additional paid-in		Statutory		Accumulated (deficit)/ Retained		Accumulated other comprehensive (loss)/			Total Lucas GC Limited shareholders’			Non- controlling		Total shareholders’
		Share		Amount		Share		Amount			receivables			capital		reserve		earnings		income			equity			interests		equity
Balance as of December 31, 2024		1,986,677		3		2,406		(856	)		(3	)		142,828		23,271		97,118		472			262,833			2,745		265,578
Net income		-		-		-		-			-			-		-		21,334		-			21,334			159		21,493
Sale of public shares through public offering, net of offering cost		803,750		-		-		-			-			40,140		-		-		-			40,140			-		40,140
Foreign currency translation		-		-		-		-			-			-		-		-		(506	)		(506	)		-		(506	)
Balance as of June 30, 2025		2,790,427		3		2,406		(856	)		(3	)		182,968		23,271		118,452		(34	)		323,801			2,904		326,705
Balance as of December 31, 2025		2,790,404		3		2,406		(856	)		(3	)		182,968		25,836		104,335		(998	)		311,285			2,818		314,103
Net income		-		-		-		-			-			-		-		19,709		-			19,709			147		19,856
Sale of ordinary shares through private placement		40,000,000		54		-		-			-			279,946		-		-		-			280,000			-		280,000
Foreign currency translation		-		-		-		-			-			-		-		-		(3,461	)		(3,461	)		-		(3,461	)
Balance as of June 30, 2026		42,790,404		57		2,406		(856	)		(3	)		462,914		25,836		124,044		(4,459	)		607,533			2,965		610,498

*The shares and per share information are presented on a retroactive basis to reflect the reorganization, the stock consolidation on October 13, 2025 and the dual-class share structure.

LUCAS GC LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (All amounts in thousands, except for share and per share data, or otherwise noted)
		For the six months ended June 30,
		2025			2026
		RMB			RMB			US$
		(Unaudited)			(Unaudited)
Cash flows from operating activities:
Net income		21,493			19,856			2,895
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,691			9,787			1,426
Amortization of right-of-use assets		207			26			4
Allowance for expected credit losses		3,162			3,228			470
Fair value (gains) losses on short-term investments		(18	)		33			5
Changes in operating assets and liabilities:
Accounts receivable		10,671			(76,913	)		(11,208	)
Advance to suppliers, net		1,238			(44,471	)		(6,480	)
Prepaid expenses and other current assets		(4,976	)		(1,115	)		(162	)
Deferred tax assets, net		(6,613	)		4,620			673
Accounts payable		(18,674	)		74,923			10,918
Contract liabilities		(8,063	)		17,261			2,515
Income tax payables		-			(1	)		-
Operating lease liabilities		(254	)		99			14
Accrued expenses and other current liabilities		485			1,012			147
Net cash provided by operating activities		4,349			8,345			1,217
Cash flows from investing activities:
Purchases of software and equipment		(29,494	)		(6,604	)		(962	)
Addition to development expenditures		(19,200	)		(23,585	)		(3,437	)
Maturities of short-term investments		1,396			-			-
Deposits for investment in partnership entities		(21,491	)		(279,413	)		(40,717	)
Net cash used in investing activities		(68,789	)		(309,602	)		(45,116	)
Cash flows from financing activities:
Proceeds from short-term borrowings		55,000			47,000			6,849
Repayments of short-term borrowings		(31,670	)		(44,000	)		(6,412	)
Payments of offering costs related to followed-on offering		(1,306	)		-			-
Repayments to a related party		(2,300	)		-			-
Advance from a related party		-			1,824			266
Sale of public shares through public offering		43,644			-			-
Sale of ordinary shares through private placement		-			280,000			40,802
Net cash provided by financing activities		63,368			284,824			41,505
Effect of exchange rate changes on cash and cash equivalents		(507	)		(3,455	)		(405	)
Net decrease in cash and cash equivalents		(1,579	)		(19,888	)		(2,799	)
Cash and cash equivalents at the beginning of period		31,661			30,305			4,334
Cash and cash equivalents at the end of period		30,082			10,417			1,535
Supplemental disclosure of cash flow information:
Income tax paid		159			-			-
Interest paid		1,014			1,482			216
Supplemental disclosure of non-cash flow information:
Obtaining right-of-use assets in exchange for lease liability		-			211			31