C Cheng Holdings Limited reported QQ4 2024 revenue of HKD 97.46 million, down 36.75% year-over-year, with a gross profit of HKD 16.19 million and a gross margin of 16.6%. The quarter delivered negative operating profit of HKD 1.52 million and a net loss of HKD 1.33 million (EPS -0.0046). Despite the bottom-line miss, the company generated positive operating cash flow of HKD 16.17 million and free cash flow of HKD 14.35 million. The ending cash balance was HKD 57.81 million, with net debt of HKD 22.92 million and a current ratio of 2.18, underscoring solid liquidity but a balance sheet still exposed to working-capital volatility and FX movements.
The stronger-than-expected cash generation in the quarter was driven by working-capital improvements and certain non-cash or timing effects; however, a sizable negative foreign-exchange movement on cash (approximately HKD 44.18 million) weighed on overall liquidity. The company’s receivables intensive operating cycle, reflected in a days-sales-outstanding of about 324 days, points to working-capital discipline as a near-term area for optimization. Profitability remains challenged by high SG&A and a modest margin profile within an engineering/construction BIM services mix, suggesting that the next leg of value creation will hinge on revenue stabilization, margin discipline, and the successful scaling of Digital/Cloud BIM platforms.
From a strategic standpoint, C Cheng operates in two segments—Comprehensive Architectural Services and BIM Services—with exposure to PRC, Hong Kong, Macau, and international markets. The QQ4 performance implies a cautious near-term outlook, but positive free cash flow and a healthy liquidity position offer optionality if management can convert top-line stabilization into margin expansion and stronger operating leverage. Investors should monitor order intake, project mix, and FX exposure, as well as any progress on cloud-based BIM platforms and digital transformation initiatives that could drive higher-margin revenue over time.