ChowChow Cloud International Holdings Limited Announces First Half 2025 Unaudited Financial Results

Core Viewpoint - ChowChow Cloud International Holdings Limited reported significant growth in revenue and net income for the first half of 2025, driven by new customer acquisitions and effective cost management [1][2][8]. Financial Performance - Revenue for the first half of 2025 reached HK$178.2 million (US$22.8 million), marking an 81.3% increase from HK$98.3 million in the same period of 2024 [2]. - Net income for the same period was HK$12.5 million (US$1.6 million), an increase of 80.0% from HK$6.9 million in the previous year [8]. Revenue Breakdown - The revenue increase was primarily attributed to cloud CDN services and server farm projects from three new customers, contributing approximately HK$83.5 million (US$10.7 million), which accounted for about 46.9% of total revenues [2]. Cost and Profitability - Cost of revenues rose to HK$156.2 million (US$20.0 million), an increase of 81.9% from HK$85.9 million in the same period of 2024 [3]. - Gross profit for the first half of 2025 was HK$22.0 million (US$2.8 million), up from HK$12.4 million in the same period of 2024, with a gross profit margin of 12.3% [4]. Operating Expenses - Selling and marketing expenses increased by 160.7% to HK$2.4 million (US$0.3 million) as the company expanded its marketing efforts across the Asia Pacific region [5]. - General and administrative expenses rose by 41.4% to HK$4.9 million (US$0.6 million), primarily due to higher employee compensation costs and increased amortization [6]. Tax and Cash Flow - Income tax expenses increased by 99.5% to HK$2.3 million (US$0.3 million) due to higher gross profit and net income [7]. - The company generated net cash from operating activities of HK$2.0 million (US$0.3 million) for the first half of 2025, with cash and cash equivalents increasing to approximately HK$11.9 million (US$1.5 million) [10]. Company Overview - ChowChow specializes in providing one-stop cloud solutions, supporting companies throughout their cloud transformation journey [12]. - The company's services include digital transformation consulting, professional IT services, AI-powered cloud managed services, and IT infrastructure solutions [13].