Executive Summary
Cheerwin Group Limited delivered a solid QQ1 2025 with revenue of 669,403,500 CNY and a gross profit of 329,892,500 CNY, yielding a gross margin of 49.28%. EBITDA stood at 89,429,750 CNY and net income was 86,781,000 CNY, translating to a net margin of 12.96% and an EPS of 0.0651 CNY. The quarter shows both momentum and discipline: top-line growth (+7.2% YoY, +134.5% QoQ as per reported metrics) combined with a stable gross margin around the mid-to-high 40s, indicating achievable gross-level profitability even as the business compounds. Management commentary from the earnings call is not available in the provided data; accordingly, this summary focuses on the reported P&L metrics and associated margin dynamics, with forward guidance and qualitative remarks to be updated upon release of the transcript.
Key takeaways for investors:
- Revenue quality and margin durability appear sound in QQ1 2025, suggesting ongoing demand for Cheerwin’s household and personal care lines within China. The operating margin is modestly expanding as shown by operating income of 77,748,000 CNY and an operating margin of 11.61%, despite a heavy selling and marketing expense cadence.
- The earnings base remains levered by cost structure, with R&D and SG&A within targeted levels and depreciation modest at 5.44 million CNY. Net income profitability is positive and the earnings per share are meaningful for valuation against peers in the Consumer Defensive/Household Products space.
- The absence of disclosed balance sheet data (cash, debt, working capital) limits the assessment of liquidity and leverage. This creates a need for cautious interpretation regarding cash flow resilience and debt management in a potentially inflationary or cost-pressure environment.
Key Performance Indicators
QoQ: 109.24% | YoY:13.95%
QoQ: 512.34% | YoY:-6.18%
QoQ: 625.65% | YoY:-3.29%
QoQ: 623.33% | YoY:-3.27%
Key Insights
Revenue: 669,403,500 CNY; YoY growth 7.18%, QoQ growth 134.48%. Gross Profit: 329,892,500 CNY; YoY 13.95%, QoQ 109.24%. Operating Income: 77,748,000 CNY; YoY -6.18%, QoQ 512.34%. Net Income: 86,781,000 CNY; YoY -3.29%, QoQ 625.65%. EPS: 0.0651 CNY; YoY -3.27%, QoQ 623.33%. Gross Margin: 49.28%; EBITDA Margin: 13.36%; Operating Margin: 11.61%; Net Margin: 12.96%. Weighted avg shares (diluted): 1,333,334,000....
Financial Highlights
Revenue: 669,403,500 CNY; YoY growth 7.18%, QoQ growth 134.48%. Gross Profit: 329,892,500 CNY; YoY 13.95%, QoQ 109.24%. Operating Income: 77,748,000 CNY; YoY -6.18%, QoQ 512.34%. Net Income: 86,781,000 CNY; YoY -3.29%, QoQ 625.65%. EPS: 0.0651 CNY; YoY -3.27%, QoQ 623.33%. Gross Margin: 49.28%; EBITDA Margin: 13.36%; Operating Margin: 11.61%; Net Margin: 12.96%. Weighted avg shares (diluted): 1,333,334,000.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
669.40M |
7.18% |
134.48% |
| Gross Profit |
329.89M |
13.95% |
109.24% |
| Operating Income |
77.75M |
-6.18% |
512.34% |
| Net Income |
86.78M |
-3.29% |
625.65% |
| EPS |
0.07 |
-3.27% |
623.33% |
Management Commentary
No earnings call transcript was provided in the data set. Consequently, there are no management quotes or thematic highlights to extract beyond the reported P&L metrics.
Forward Guidance
No explicit forward guidance was included in the provided materials. Outlook assessment relies on qualitative factors and industry dynamics: (i) China’s household and personal care categories continue to benefit from secular demand in urban and semi-urban markets; (ii) sustainability of gross margins hinges on input cost trends and product mix; (iii) potential overhang from marketing investments and channel expansion. Investors should monitor: cost inflation (raw materials, logistics), channel mix (offline vs online), competitive intensity in domestic markets, and any formal forward guidance or strategic updates from Cheerwin during future disclosures.