Chervon Holdings Limited (2285.HK) Q4 2025 Earnings Report

Chervon Holdings reported QQ4 2025 results showing a sequential and year-over-year revenue decline alongside margin pressure. Revenue of USD 716.7 million declined 12.1% year-over-year and 21.5% quarter-over-quarter, while gross profit reached USD 232.4 million with a gross margin of 32.4%. The quarter delivered negative operating income of USD 1.5 million and a net income of USD 2.39 million, translating to a net margin of about 0.33% and an EBITDA of USD 19.4 million (EBITDA margin approx. 2.7%). Free cash flow was negative at USD -46.3 million, with operating cash flow of USD -28.9 million and capital expenditures of USD 17.3 million. The company maintains a robust balance sheet with USD 398.7 million of cash and equivalent and a net cash position of roughly USD 103.7 million (net debt). Total assets stood at USD 1.84 billion and total liabilities at USD 0.83 billion, resulting in equity of about USD 1.02 billion and a current ratio near 2.18x. The record reflects an inherently cyclical tools market, ongoing investment in SG&A and product development, and a heavy investment activity in marketable securities that mitigates liquidity risk despite near-term profitability pressures.