Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: HKD 97,459,000; YoY: -36.75%; QoQ: 0.00%
Gross Profit: HKD 16,192,000; Gross Margin: 16.6%; YoY Gross Profit: +49.76%; QoQ: 0.00%
Operating Income: HKD -1,523,000; Operating Margin: -1.56%; YoY Operating Income: +94.02% (negative base effects) ; QoQ: 0.00%
Net Income: HKD -1,328,000; Net Margin: -1.36%; YoY Net Income: +92.44%; QoQ: 0.00%
EPS: HKD -0.0046; Diluted EPS: HKD -0.0046; YoY EPS: +92.45%; QoQ: 0.00%
Cash Flow: Operating cash flow HKD 16,171,000; Free Cash Flow HKD 14,347,000
...
Financial Highlights
Revenue: HKD 97,459,000; YoY: -36.75%; QoQ: 0.00%
Gross Profit: HKD 16,192,000; Gross Margin: 16.6%; YoY Gross Profit: +49.76%; QoQ: 0.00%
Operating Income: HKD -1,523,000; Operating Margin: -1.56%; YoY Operating Income: +94.02% (negative base effects) ; QoQ: 0.00%
Net Income: HKD -1,328,000; Net Margin: -1.36%; YoY Net Income: +92.44%; QoQ: 0.00%
EPS: HKD -0.0046; Diluted EPS: HKD -0.0046; YoY EPS: +92.45%; QoQ: 0.00%
Cash Flow: Operating cash flow HKD 16,171,000; Free Cash Flow HKD 14,347,000
Net Change in Cash: HKD -20,122,000; Cash at end of period: HKD 57,811,000; Cash at beginning: HKD 77,933,000
Liquidity: Current ratio 2.18; Quick ratio 2.18; Cash ratio 0.347
Balance Sheet Highlights: Total assets HKD 619.885m; Total liabilities HKD 220.822m; Cash and equivalents HKD 74.603m; Total debt HKD 97.527m; Net debt HKD 22.924m; Total equity HKD 396.407m; Current assets HKD 468.435m; Receivables HKD 350.665m; Long-term investments HKD 104.419m; DSO 323.83 days; Receivables turnover 0.278x; PPE net HKD 15.551m; Total non-current assets HKD 151.450m
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
97.46M |
-36.75% |
0.00% |
| Gross Profit |
16.19M |
49.76% |
0.00% |
| Operating Income |
-1.52M |
94.02% |
0.00% |
| Net Income |
-1.33M |
92.44% |
0.00% |
| EPS |
0.00 |
92.45% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-1.56%
Management Commentary
No earnings-call transcript was provided for QQ4 2024. As a result, quotes and management commentary could not be extracted. If a transcript becomes available, a thematically organized extract (strategy, operations, market conditions) with context and significance will be added here.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. Given the current revenue decline, margin pressure, and FX exposure observed in QQ4 2024, management's emphasis on cost control, improving project mix, and scaling cloud-based BIM/digital transformation offerings will be critical. Investors should monitor: (i) order intake and backlog development in BIM services and architectural services, (ii) progress in achieving higher-margin digital platform revenues, (iii) currency exposure and hedging strategies, and (iv) receivables collection efficiency. A cautious but constructive stance would hinge on visible stabilization of quarterly revenue, a sustained improvement in gross margin beyond ~16–18%, and a verifiable reduction in working-capital intensity.