Executive Summary
C Cheng Holdings delivered a mixed QQ1 2025 performance. Revenue declined modestly year-over-year and quarter-over-quarter to HKD 90.99 million, reflecting ongoing project execution in a competitive engineering-construction environment. However, the quarter benefited from a substantial contribution from other income and expenses, which elevated income before tax to HKD 27.64 million and net income to HKD 25.41 million, translating to a net margin of 27.93% and an EPS of HKD 0.0682. This unusual lift underscores the importance of examining recurring operating performance separately from one-off items.
Operating discipline remains tight, with operating income of HKD 0.66 million and an EBITDA of HKD 4.01 million, yielding modest operating margins (~0.73%) as the company continues to invest in capabilities around BIM services, cloud-based platforms, and digital transformation consulting. Cash generation remains healthy: operating cash flow HKD 8.99 million and free cash flow HKD 8.69 million, supported by controlled capital expenditure of HKD 0.29 million. The balance sheet presents a solid equity base (HKD 463.41 million) and a generally conservative leverage profile, albeit with reported net debt (per the disclosure) of HKD 18.96 million.
Looking ahead, the sustainability of earnings will hinge on translating the non-operating income into recurring revenue streams, advancing high-margin BIM/digital offerings, and expanding recurring software/cloud services and transformation advisory work. Management commentary (when available) will be critical to gauge execution of growth initiatives and any cadence of backlog replenishment. In the near term, investors should monitor the mix of project-driven revenue versus recurring services, working capital efficiency, and the potential for any one-time items to recur in future quarters.
Key Performance Indicators
QoQ: -6.64% | YoY:-11.83%
QoQ: 143.47% | YoY:112.86%
QoQ: 2 013.59% | YoY:516.77%
QoQ: 1 582.61% | YoY:421.70%
Key Insights
Revenue: HKD 90,984,500 for QQ1 2025, YoY -11.83%, QoQ -6.64%.
Gross Profit: HKD 18,673,500; Gross Margin 20.52% (YoY +25.08%, QoQ +15.33%).
Operating Income: HKD 662,000; Operating Margin 0.73% (YoY +112.87%, QoQ +143.47%).
EBITDA: HKD 4,009,000; EBITDA Margin 4.41% (EBITDA Ratio 0.0441).
Total Other Income/Expenses Net: HKD 26,974,000; Income Before Tax: HKD 27,636,000; Tax Expense: HKD 1,970,500; Net Income: HKD 25,412,500; Net Margin 27.93%.
Earnings Per Share (EPS): HKD 0.0682; Weighte...
Financial Highlights
Revenue: HKD 90,984,500 for QQ1 2025, YoY -11.83%, QoQ -6.64%.
Gross Profit: HKD 18,673,500; Gross Margin 20.52% (YoY +25.08%, QoQ +15.33%).
Operating Income: HKD 662,000; Operating Margin 0.73% (YoY +112.87%, QoQ +143.47%).
EBITDA: HKD 4,009,000; EBITDA Margin 4.41% (EBITDA Ratio 0.0441).
Total Other Income/Expenses Net: HKD 26,974,000; Income Before Tax: HKD 27,636,000; Tax Expense: HKD 1,970,500; Net Income: HKD 25,412,500; Net Margin 27.93%.
Earnings Per Share (EPS): HKD 0.0682; Weighted Avg Shares: 372,890,682 (diluted 372,756,331).
Balance Sheet Highlights: Total Assets HKD 703.78 million; Total Liabilities HKD 236.56 million; Total Equity HKD 463.41 million. Cash & Equivalents HKD 89.78 million; Cash & Short-Term Investments HKD 98.16 million; Net Debt HKD 18.96 million (as disclosed).
Cash Flow: Operating Cash Flow HKD 8.99 million; Free Cash Flow HKD 8.69 million; CAPEX HKD -0.29 million; Net Cash from Financing/Investing activities largely offset with minor financing inflows and foreign exchange impact (HKD 0.88 million).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
90.98M |
-11.83% |
-6.64% |
| Gross Profit |
18.67M |
25.08% |
15.33% |
| Operating Income |
662.00K |
112.86% |
143.47% |
| Net Income |
25.41M |
516.77% |
2 013.59% |
| EPS |
0.07 |
421.70% |
1 582.61% |
Management Commentary
No earnings call transcript was provided. Consequently, no transcript highlights can be extracted at this time. If a transcript becomes available, we will summarize management themes by strategy, operations, and market conditions with direct quotes and context.
Forward Guidance
There is no explicit forward guidance disclosed in the provided data. Given the firm’s reliance on a substantial non-operating income line in QQ1 2025, sustainable earnings will depend on: (1) converting non-recurring items into recurring opportunities, (2) expanding high-margin BIM/digital transformation services and cloud-based platforms, and (3) strengthening project execution to stabilize operating margins. Investors should monitor: backlog and pipeline for BIM and architectural services, renewal rates for cloud/digital offerings, client concentration risk, and any changes in government or regulatory procurement cycles affecting architectural/engineering spend in PRC, Hong Kong, and Macau.