Lucas GC Ltd (NASDAQ: LGCL)

Lucas GC Ltd, also known as LGCL, is a technology-driven online human capital management service provider that operates in China. The company, established in May 2011 and headquartered in Beijing, China, had approximately 638,020 active registered users on its proprietary platforms, Star Career and Columbus, as of December 31, 2023.

Lucas GC Ltd's business model is centered around providing recruitment services, outsourcing services, and other services such as information technology services and training services. The company's largest revenue generator is its recruitment services segment, which accounted for approximately 44% of its total revenue in 2023. This segment is based on the company's patented technology and leverages big data to push job opportunities to users who are likely to be interested in them. The outsourcing services segment accounts for approximately 48% of the company's total revenue and provides cost-effective solutions to corporate customers who need a "turnkey solution" for their projects. The training services segment accounts for approximately 8% of the company's total revenue and provides industry-focused training programs to users.

The company's technology is powered by its AI, machine learning, data analytics, and blockchain technologies. Lucas GC Ltd has developed a proprietary algorithm that enables customized job recommendations for users and has been recognized by Frost & Sullivan as one of the top four platforms in the human capital management industry in China. The company believes that its unique and holistic platforms, agent-centric business model, and continuously improved platform matching efficiency through data analytics and artificial intelligence technology give it a competitive edge.

Lucas GC Ltd has a strong intellectual property portfolio, with ten patents registered in the U.S. and seven patents registered in China, as well as 68 registered trademarks, 74 registered copyrights, and ten registered domain names. The company has also ranked first among all platforms in the human capital management industry in China in terms of the total number of patents registered in the U.S. as of December 31, 2022.

The company's data security is ensured through a combination of internal audits, processing procedures, and technology tools. Lucas GC Ltd has obtained ISO 27001 Information Security Management System Certification and SOC 1, SOC 2, and SOC 3 reports issued by independent auditors as in compliance with global industry standards.

In terms of regulations, the company is subject to various laws and regulations in China, including those related to foreign investment, talent intermediary services, mobile internet apps, internet information security and privacy protection, intellectual property rights, and foreign exchange. The company is also subject to the Guidance Catalogue of Industries for Foreign Investment, or the Negative List, promulgated and as amended from time to time by the Ministry of Commerce of the PRC, or MOFCOM, and NDRC.

Lucas GC Ltd's organizational structure consists of the company being a Cayman Islands holding company with operations primarily conducted through its PRC subsidiaries. The company's founder, chairman of the Board, and CEO, Mr. Howard Lee, owns approximately 61.9% equity interest in the company through his wholly owned company, HTL Lucky Holding Limited, as of the date of this annual report. 51job, Inc. owns approximately 18.2% equity interest in the company and MLT Holding Limited owns approximately 8.1% equity interest in the company as of the date of this annual report.

The company's corporate headquarters are located in Beijing, China. As of December 31, 2023, the approximate gross floor area of the company's leased properties was 612 square meters in aggregate, and the company did not have self-held properties. The company leases its premises from unrelated third parties under operating lease agreements.