ChowChow Cloud International Holdings Limited Announces First Half 2025 Unaudited Financial Results
Rhea-AI Summary
ChowChow Cloud (NYSE AMERICAN: CHOW) 는 2025년 6월 30일 종료된 6개월 동안의 비감사 결과를 발표했습니다. 매출은 81.3% 증가하여 HK$178,2 Mio. (미화 US$22,8m)로 증가했고 이는 주로 클라우드 CDN 및 3명의 신규 고객의 서버팜 프로젝트에서 기인했으며 이들 고객은 매출의 약 46.9%에 해당하는 약 HK$83,5m를 기여했습니다. 순이익은 80.0% 증가하여 HK$12,5m (미화 US$1,6m)였고 총이익은 HK$22,0m(총이익률 12.3%, 전년 대비 거의 변동 없음)으로 올랐습니다. 매출원가는 81.9% 상승하여 HK$156,2m입니다. 영업비용은 증가했고 (판매 및 마케팅 2,4m HK$; 일반관리비 4,9m HK$). 현금 및 현금성 자산은 2025년 6월 30일 기준 HK$11,9m이며 영업활동으로 인한 순현금은 HK$2,0m였습니다. 경영진은 가용 유동성이 향후 12개월 이상을 커버할 것으로 기대합니다.
Positive
- Revenue +81.3% to HK$178.2 million for H1 2025
- Net income +80.0% to HK$12.5 million for H1 2025
- Three new customers contributed ~HK$83.5 million (~46.9% of revenue)
- Gross profit increased to HK$22.0 million with margin stable at 12.3%
Negative
- Cost of revenues +81.9% to HK$156.2 million for H1 2025
- Net cash from operating activities only HK$2.0 million for H1 2025
- Cash and cash equivalents modest at HK$11.9 million as of June 30, 2025
- Selling and marketing expenses rose 160.7% to HK$2.4 million
Market Reaction 15 min delay 1 Alert
Following this news, CHOW has declined 9.25%, reflecting a notable negative market reaction. The stock is currently trading at $0.61. This price movement has removed approximately $2M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 11 | Trading statement | Neutral | -38.8% | Company stated no material developments despite unusual trading activity. |
| Sep 17 | IPO pricing | Positive | -32.6% | IPO completed at $4.00 per share raising $11.96M gross proceeds. |
Recent history shows sharp negative price reactions (over 30% down) to neutral or positive news, indicating a pattern of divergence between fundamentals and price.
Over late 2025, ChowChow Cloud transitioned from its IPO to navigating volatile trading. The IPO priced at $4.00 per share and raised gross proceeds of $11,960,000, yet shares fell over the next day. A later "no-material-news" response to unusual market action on December 11, 2025 also coincided with a large decline. Against this backdrop, the latest first-half 2025 earnings detail strong revenue and net income growth versus the prior year.
Market Pulse Summary
The stock is down -9.3% following this news. The decline reflects a continued pattern where CHOW’s share price reacted negatively even to neutral or positive developments, such as the IPO and the December 2025 trading response, which saw moves of -32.59% and -38.8%. This reaction contrasts with first-half 2025 earnings showing revenue of HK$178.2M and net income of HK$12.5M. With the stock already trading 97.22% below its 52-week high, sentiment and liquidity may be dominating fundamentals.
Key Terms
expected credit loss financial
deferred revenue financial
equity financing financial
AI-generated analysis. Not financial advice.
— First Half Revenue of HK
— First Half Net Income of HK
HONG KONG, Jan. 01, 2026 (GLOBE NEWSWIRE) -- ChowChow Cloud International Holdings Limited (NYSE AMERICAN: CHOW) (“ChowChow” or the “Company”), a company that specializes in providing one-stop cloud solutions, today announced its unaudited financial results for the six months ended June 30, 2025.
First Half 2025 Financial Results
Revenues
Revenues increased by HK
The increase in revenues was primarily driven by certain cloud CDN service and server farm projects secured from three new customers, which together contributed approximately HK
Cost of revenues and gross profit
Cost of revenues consists primarily of subcontracting fees, cost of hardware, software license and IT application licenses directly attributable to services provided. For the six months ended June 30, 2025, cost of revenues was HK
As a result of the foregoing, gross profit for the six months ended June 30, 2025 was HK
Selling and marketing expenses
Selling and marketing expenses increased by HK
General and administrative expenses
General and administrative expenses increased by HK
Income tax expenses
Income tax expenses increased by HK
Net income
The Company recorded a net income of HK
Cash and Cash Equivalents
For the first half of 2025, the Company achieved a net income of HK
The Company’s management is actively managing its outstanding accounts receivable and carefully planning its operations. The Company may also seek equity financing from financial institutions and outside investors when necessary.
The Company’s management believes that its current cash position, ongoing cash generation from operations, and available financing options will provide sufficient liquidity to meet its future liquidity and capital requirements for at least the next twelve months.
About ChowChow
ChowChow is a holding company incorporated in the Cayman Islands, and all of its operations are carried out by its operating subsidiary in Hong Kong, Sereno Cloud Solution HK Limited. The Company specializes in providing one-stop cloud solutions that support companies across the IT industry value chain throughout their entire cloud transformation journey from consulting, deployment and migration to cloud environment building and management.
The Company’s business primarily comprises (i) digital transformation consulting services consisting primarily of cloud suitability assessment, real-time resource management and strategic planning and advisory, (ii) professional IT services comprising a wide range of capabilities designed to facilitate seamless cloud integration and digital transformation, (iii) AI-powered proactive cloud managed services covering all aspects of day-to-day cloud maintenance and support, and (iv) IT infrastructure solutions covering on-premise private cloud setups and public cloud integrations including infrastructure applications such as our Sereno Cloud App360 AI and Data Science Platform (the “AI & Data Science Platform”), which consists of several core components.
Exchange Rate
The Company’s operations are principally conducted in Hong Kong, where the Hong Kong dollar (HK$) is the functional currency, and all the revenues are denominated in HK$. For the convenience of the readers of our consolidated financial statements, we have provided translations of balances in the consolidated balance sheets, consolidated statements of operations and comprehensive income, consolidated statements of changes in equity, and consolidated statements of cash flows from HK$ to U.S. dollars (US$) as of and for the six months ended June 30, 2025. These translations have been made at a fixed exchange rate of US
These translations are provided solely for informational purposes and should not be construed as representations that the HK$ amounts could be converted into US$ at that or any other rate. The exchange rate used may differ from actual exchange rates on the balance sheet date or subsequent dates, and readers should be aware of potential exchange rate fluctuations. We do not intend for these translated amounts to comply with the provisions of U.S. GAAP regarding functional currency translation, and they are not intended to be a substitute for the HK$ amounts reported in accordance with U.S. GAAP.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in verbal statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.
| CHOWCHOW CLOUD INTERNATIONAL HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| As of | ||||||||||||
| December 31, 2024 | June 30, 2025 | June 30, 2025 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 10,522,032 | 11,872,982 | 1,522,177 | |||||||||
| Accounts receivable, net | 17,666,579 | 24,794,775 | 3,178,817 | |||||||||
| Unbilled receivables (Contract assets) | 2,609,173 | 606,265 | 77,726 | |||||||||
| Prepayment and other current assets, net | 11,308,236 | 92,600 | 11,872 | |||||||||
| Deferred offering costs | 2,820,149 | 2,820,149 | 361,558 | |||||||||
| Amount due from related parties - trade | 28,575 | 51,564 | 6,611 | |||||||||
| Total current assets | 44,954,744 | 40,238,335 | 5,158,761 | |||||||||
| Non-current assets: | ||||||||||||
| Other non-current assets, net | 122,412 | 122,412 | 15,693 | |||||||||
| Operating lease right-of-use assets, net | 218,130 | 100,566 | 12,893 | |||||||||
| Property and equipment, net | 42,597 | 31,822 | 4,080 | |||||||||
| Intangible asset, net | 2,344,427 | 1,953,689 | 250,473 | |||||||||
| Total non-current assets | 2,727,566 | 2,208,489 | 283,139 | |||||||||
| Total assets | 47,682,310 | 42,446,824 | 5,441,900 | |||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | 4,546,960 | 1,652,211 | 211,821 | |||||||||
| Accrued expenses and other current liabilities | 838,811 | 1,067,166 | 136,816 | |||||||||
| Amount due to related parties – non-trade | 678,915 | 103,061 | 13,213 | |||||||||
| Tax payable | 4,821,619 | 7,281,347 | 933,506 | |||||||||
| Deferred revenue (Contract liabilities) | 17,401,218 | 745,142 | 95,531 | |||||||||
| Operating lease liabilities, current portion | 218,130 | 100,566 | 12,893 | |||||||||
| Bank borrowings, current portion | 284,404 | 492,591 | 63,153 | |||||||||
| Total current liabilities | 28,790,057 | 11,442,084 | 1,466,933 | |||||||||
| Non-current liabilities: | ||||||||||||
| Deferred tax liabilities | 227,530 | 103,393 | 13,256 | |||||||||
| Bank borrowings, non-current portion | 4,715,596 | 4,467,260 | 572,726 | |||||||||
| Total non-current liabilities | 4,943,126 | 4,570,653 | 585,982 | |||||||||
| Total liabilities | 33,733,183 | 16,012,737 | 2,052,915 | |||||||||
| Shareholders’ equity: | ||||||||||||
| Ordinary share, par value US | 25,350 | 25,350 | 3,250 | |||||||||
| Capital reserve | 3,200,000 | 3,200,000 | 410,256 | |||||||||
| Merger reserve | (2,647,350 | ) | (2,647,350 | ) | (339,404 | ) | ||||||
| Retained earnings | 13,371,127 | 25,856,087 | 3,314,883 | |||||||||
| Total shareholders’ equity | 13,949,127 | 26,434,087 | 3,388,985 | |||||||||
| Total liabilities and equity | 47,682,310 | 42,446,824 | 5,441,900 | |||||||||
| CHOWCHOW CLOUD INTERNATIONAL HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||
| For the Six Months Ended June 30, | ||||||||||||
| 2024 | 2025 | 2025 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| Revenues: | ||||||||||||
| - Revenue from Products | 92,569,989 | 167,911,734 | 21,527,145 | |||||||||
| - Revenue from Services | 5,723,408 | 10,299,520 | 1,320,452 | |||||||||
| Total revenues | 98,293,397 | 178,211,254 | 22,847,597 | |||||||||
| Cost of revenues: | ||||||||||||
| - Cost of Products | (81,901,618 | ) | (148,654,601 | ) | (19,058,282 | ) | ||||||
| - Cost of Services | (3,983,385 | ) | (7,548,872 | ) | (967,804 | ) | ||||||
| Total cost of revenues | (85,885,003 | ) | (156,203,473 | ) | (20,026,086 | ) | ||||||
| Gross profit | 12,408,394 | 22,007,781 | 2,821,511 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing expenses | (896,260 | ) | (2,336,536 | ) | (299,556 | ) | ||||||
| General and administrative expenses | (3,491,856 | ) | (4,937,969 | ) | (633,074 | ) | ||||||
| Total operating expenses | (4,388,116 | ) | (7,274,505 | ) | (932,630 | ) | ||||||
| Operating income | 8,020,278 | 14,733,276 | 1,888,881 | |||||||||
| Interest income, net | 10,529 | 9,456 | 1,212 | |||||||||
| Interest expense, net | (14,857 | ) | (74,374 | ) | (9,535 | ) | ||||||
| Other income, net | 89,226 | 152,193 | 19,512 | |||||||||
| Income before taxes | 8,105,176 | 14,820,551 | 1,900,070 | |||||||||
| Income tax expenses | (1,170,616 | ) | (2,335,591 | ) | (299,435 | ) | ||||||
| Net income | 6,934,560 | 12,484,960 | 1,600,635 | |||||||||
| Earnings per share attributable to ordinary shareholders of the Company’s shareholders | ||||||||||||
| Basic and diluted | 0.21 | 0.38 | 0.05 | |||||||||
| Weighted average shares* used in calculating basic and diluted net income per share: | 32,500,000 | 32,500,000 | 32,500,000 | |||||||||
* Retroactively presented for the effect of reorganization for the Company’s initial public offering.
| CHOWCHOW CLOUD INTERNATIONAL HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||||||||
| Ordinary shares | Additional paid in | Capital | Merger | Retained | Total shareholders’ | |||||||||||||||||||||||
| Shares* | Amount | capital | reserve | reserve | earnings | equity | ||||||||||||||||||||||
| HK$ | HK$ | HK$ | HK$ | HK$ | HK$ | |||||||||||||||||||||||
| Balance as of January 1, 2024 | 32,500,000 | - | 780 | 3,200,000 | (2,700,000 | ) | 1,500,873 | 2,001,653 | ||||||||||||||||||||
| Net income | - | - | - | - | - | 6,934,560 | 6,934,560 | |||||||||||||||||||||
| Balance as of June 30, 2024 | 32,500,000 | - | 780 | 3,200,000 | (2,700,000 | ) | 8,435,433 | 8,936,213 | ||||||||||||||||||||
| Balance as of January 1, 2025 | 32,500,000 | 25,350 | - | 3,200,000 | (2,647,350 | ) | 13,371,127 | 13,949,127 | ||||||||||||||||||||
| Net income | - | - | - | - | - | 12,484,960 | 12,484,960 | |||||||||||||||||||||
| Balance as of June 30, 2025 | 32,500,000 | 25,350 | - | 3,200,000 | (2,647,350 | ) | 25,856,087 | 26,434,087 | ||||||||||||||||||||
| Balance as of June 30, 2025 in US$ | 32,500,000 | 3,250 | - | 410,256 | (339,404 | ) | 3,314,883 | 3,388,985 | ||||||||||||||||||||
* Retroactively presented for the effect of reorganization for the Company’s initial public offering.
| CHOWCHOW CLOUD INTERNATIONAL HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| For the Six Months Ended June 30, | ||||||||||||
| 2024 | 2025 | 2025 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
| Net income | 6,934,560 | 12,484,960 | 1,600,635 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation of property and equipment | 13,811 | 10,775 | 1,381 | |||||||||
| Amortization of intangible asset | 260,614 | 390,738 | 50,095 | |||||||||
| Allowance for the current expected credit losses on accounts receivable | 229,528 | 347,350 | 44,532 | |||||||||
| Allowance for the current expected credit losses on amount due from related parties | 7,043 | 4,011 | 514 | |||||||||
| Interest expense, net | - | 74,374 | 9,535 | |||||||||
| Deferred income tax | 113,447 | (124,137 | ) | (15,915 | ) | |||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable, net | 648,423 | (7,475,546 | ) | (958,403 | ) | |||||||
| Unbilled receivables (Contract assets) | 704,858 | 2,002,908 | 256,783 | |||||||||
| Prepayment and other current assets, net | 11,593,320 | 11,215,636 | 1,437,903 | |||||||||
| Amounts due from related parties | (27,000 | ) | (27,000 | ) | (3,462 | ) | ||||||
| Accounts payable | (3,622,990 | ) | (2,894,749 | ) | (371,122 | ) | ||||||
| Accrued expenses and other current liabilities | (405,071 | ) | 228,355 | 29,276 | ||||||||
| Deferred revenue (Contract liabilities) | (14,308,787 | ) | (16,656,076 | ) | (2,135,394 | ) | ||||||
| Tax payable | 1,057,169 | 2,459,728 | 315,350 | |||||||||
| Cash provided by operating activities | 3,198,925 | 2,041,327 | 261,708 | |||||||||
| Interest paid | - | (74,374 | ) | (9,535 | ) | |||||||
| Net cash provided by operating activities | 3,198,925 | 1,966,953 | 252,173 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
| Purchase of intangible asset | (1,197,896 | ) | - | - | ||||||||
| Cash used in investing activities | (1,197,896 | ) | - | - | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
| Proceeds from / (Repayment of) bank borrowings | 5,000,000 | (40,149 | ) | (5,147 | ) | |||||||
| Net movement in amounts due to shareholders | - | 44,146 | 5,660 | |||||||||
| Dividend paid | (5,464,530 | ) | (620,000 | ) | (79,487 | ) | ||||||
| Net cash used in financing activities | (464,530 | ) | (616,003 | ) | (78,974 | ) | ||||||
| Net increase in cash and cash equivalents | 1,536,499 | 1,350,950 | 173,199 | |||||||||
| Cash and cash equivalents, beginning of period | 9,873,451 | 10,522,032 | 1,348,978 | |||||||||
| Cash and cash equivalents, end of period | 11,409,950 | 11,872,982 | 1,522,177 | |||||||||
For more information, please contact: ChowChow Cloud International Holdings Limited Investor Relations Email: ir@chowchowcloud.com
FAQ
What were ChowChow (CHOW) revenues for the six months ended June 30, 2025?
How much net income did CHOW report for H1 2025 and how did it change year-over-year?
What drove CHOW's revenue growth in the six months ended June 30, 2025?
Did ChowChow's gross margin change in H1 2025 and why?
What is CHOW's cash position and short-term liquidity as of June 30, 2025?
How did CHOW's operating expenses change in H1 2025?
