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.