Executive Summary
C Cheng Holdings delivered a strong top-line expansion in QQ2 2025, with revenue totaling HKD 181.97 million, up 86.71% year over year. The gross profit rose to HKD 37.35 million, yielding a gross margin of 20.52%, and the quarter recorded an operating profit of HKD 1.32 million alongside EBITDA of HKD 8.02 million. Net income surged to HKD 50.83 million, translating to a net margin of 27.93%. The outsized net income is largely driven by a substantial positive contribution from other income (HKD 53.95 million), which masks a relatively modest operating performance. Management commentary was not included in the provided data, so the analysis of operational drivers and guidance relies on the reported line items and ratio evolution.
From a balance sheet and cash flow perspective, the company maintains a solid liquidity profile and moderate leverage. Total assets stand at HKD 703.8 million, with cash and short-term investments of HKD 108.49 million and cash/cash equivalents of HKD 89.78 million. Net debt is reported at HKD 18.96 million, and the company generated positive operating cash flow of HKD 8.99 million and free cash flow of HKD 8.69 million in QQ2 2025. The forex impact contributed a notable HKD 23.05 million to cash, underscoring currency dynamics in a cross-border engineering and BIM services business.
Looking ahead, the growth profile reflects ongoing demand for BIM and comprehensive architectural services, particularly as digital transformation in construction accelerates. However, the dramatic net income uplift is not fully reflective of recurring operating profitability given the material one-off income component. Investors should monitor: (1) sustainability of project wins and utilization of fixed-cost infrastructure, (2) the mix of recurring vs. non-recurring income, (3) working capital dynamics given elevated receivables exposure, and (4) forex sensitivity from offshore project execution. Overall, C Cheng remains well-positioned to capitalize on the secular shift toward digital-enabled design and construction workflows, provided operating leverage improves in subsequent quarters.
Key Performance Indicators
QoQ: 0.00% | YoY:3 927.18%
QoQ: 0.00% | YoY:3 065.22%
Key Insights
Revenue: HKD 181,969,000; YoY +86.71%; QoQ 0.00%.
Gross Profit: HKD 37,347,000; YoY +130.65%; QoQ 0.00%; Gross Margin 20.52%.
Operating Income: HKD 1,324,000; YoY +186.93%; QoQ 0.00%; Operating Margin 0.73%.
EBITDA: HKD 8,018,000; EBITDA Margin 4.40%.
Net Income: HKD 50,825,000; YoY +3,927.18%; QoQ 0.00%; Net Margin 27.93%; EPS 0.1364.
Income Before Tax: HKD 55,272,000; Pretax Margin 30.37%; Income Tax Expense HKD 3,941,000.
Balance Sheet (selected): Total Assets HKD 703.8m; Total Liabilities HK...
Financial Highlights
Revenue: HKD 181,969,000; YoY +86.71%; QoQ 0.00%.
Gross Profit: HKD 37,347,000; YoY +130.65%; QoQ 0.00%; Gross Margin 20.52%.
Operating Income: HKD 1,324,000; YoY +186.93%; QoQ 0.00%; Operating Margin 0.73%.
EBITDA: HKD 8,018,000; EBITDA Margin 4.40%.
Net Income: HKD 50,825,000; YoY +3,927.18%; QoQ 0.00%; Net Margin 27.93%; EPS 0.1364.
Income Before Tax: HKD 55,272,000; Pretax Margin 30.37%; Income Tax Expense HKD 3,941,000.
Balance Sheet (selected): Total Assets HKD 703.8m; Total Liabilities HKD 236.6m; Total Equity HKD 463.4m; Current Ratio 2.20; Quick Ratio 2.20; Debt to Equity 0.24; Net Debt HKD 18.96m; Cash and Cash Equivalents HKD 89.78m; Short-Term Investments HKD 8.37m; Long-Term Debt HKD 13.73m; Short-Term Debt HKD 95.01m.
Cash Flow: Operating Cash Flow HKD 8.99m; Free Cash Flow HKD 8.69m; Net Cash Provided by Operating Activities HKD 13.48m; Forex impact HKD 23.05m; Net Change in Cash HKD 42.31m; Cash at End of Period HKD 100.12m.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
181.97M |
86.71% |
0.00% |
| Gross Profit |
37.35M |
130.65% |
0.00% |
| Operating Income |
1.32M |
186.93% |
0.00% |
| Net Income |
50.83M |
3 927.18% |
0.00% |
| EPS |
0.14 |
3 065.22% |
0.00% |
Key Financial Ratios
operatingProfitMargin
0.73%
operatingCashFlowPerShare
$0.05
freeCashFlowPerShare
$0.05
Management Commentary
Note: An earnings transcript was not provided in the data set. As a result, no management quotes or verbatim commentary can be cited. Summary themes below reflect typical areas of focus in an earnings call for a BIM/engineering services provider, but specific quotes are unavailable.
- Strategy and Growth Focus: Expectation of ongoing demand for BIM-enabled architectural and construction services, with emphasis on digital transformation offerings and cloud-based platform development.
- Operations and Project Execution: Commentary commonly addresses project mix, utilization, and cost controls; the reported operating margin suggests continued investment in capabilities and potential mix effects.
- Market Conditions and Competitive Environment: Discussions typically cover demand resilience in PRC/HK/Macau markets, cross-border project opportunities, and competition from traditional engineering consultancies and specialized BIM providers.
- Financial Outlook and Capital Allocation: Guidance often centers on backlog conversion to revenue, cost discipline, and potential returns via efficiency gains and strategic investments in software/platforms.
Not available in the provided earnings transcript data.
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Not available in the provided earnings transcript data.
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Forward Guidance
No formal forward guidance was presented in the provided data. Based on QQ2 2025 results, the company demonstrated strong top-line growth with revenue expanding by approximately 86.7% YoY, underpinned by a favorable project environment for BIM and architectural services. However, the substantial net income is influenced by a sizable other income line, casting some caution on recurring profitability. Going forward, investors should monitor: (1) the sustainability of revenue growth and the contribution from recurring BIM/architectural services versus one-off items, (2) margin expansion opportunities through better project mix and scale effects, (3) currency exposure given cross-border service delivery, and (4) capex/working capital needs as backlog converts to revenue. If management signals continued demand and progressively improves operating leverage, the earnings trajectory could be constructive, supported by a robust balance sheet and solid liquidity.