EX-99.1 2 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

ChowChow Cloud International Holdings Limited Announces

First Half 2025 Unaudited Financial Results

— First Half Revenue of HK$178.2 million (US$22.8 million), increase 81.3% year-over-year —

— First Half Net Income of HK$12.5 million (US$1.6 million), versus Net Income of HK$6.9 million last year —

 

Hong Kong, December 31, 2025 (GlobalNewswire) – 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$79.9 million, or 81.3%, to HK$178.2 million (US$22.8 million) for the six months ended June 30, 2025 compared to HK$98.3 million for the same period in 2024.

 

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$83.5 million (US$10.7 million), represented approximately 46.9% of total revenues for the period.

 

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$156.2 million (US$20.0 million), increased by HK$70.3 million or 81.9% from HK$85.9 million in the same period in 2024.

 

As a result of the foregoing, gross profit for the six months ended June 30, 2025 was HK$22.0 million (US$2.8 million), an increase of HK$9.6 million from HK$12.4 million for the same period in 2024. The gross profit margin for the six months ended June 30, 2025 was 12.3%, a figure consistent with the 12.6% recorded in the same period in 2024. This stability was attributed to the Company’s diligent cost control measures.

 

Selling and marketing expenses

 

Selling and marketing expenses increased by HK$1.4 million or 160.7% from HK$0.9 million for the six months ended June 30, 2024 to HK$2.4 million (US$0.3 million) for the six months ended June 30, 2025. The increase was mainly driven by the increase in marketing service fee paid to the third parties as the Company pursued its strategy of expanding its customer base and revenue, not only in Hong Kong, but also in other Asia Pacific areas, by putting more resource to the marketing activities.

 

General and administrative expenses

 

General and administrative expenses increased by HK$1.4 million or 41.4% from HK$3.5 million for the six months ended June 30, 2024 to HK$4.9 million (US$0.6 million) for the six months ended June 30, 2025. The increase of HK$1.4 million was largely due to higher employee compensation costs (HK$1.1 million) from increased headcount and average salary levels, along with rises in intangible asset amortization (HK$0.1 million) and expected credit loss provisions (HK$0.1 million).

 

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Income tax expenses

 

Income tax expenses increased by HK$1.1 million or 99.5% from HK$1.2 million for the six months ended June 30, 2024 to HK$2.3 million (US$0.3 million) for the six months ended June 30, 2025. The increase was due to the increase in gross profit and net income during six months ended June 30, 2025.

 

Net income

 

The Company recorded a net income of HK$12.5 million (US$1.6 million) for the six months ended June 30, 2025, representing an increase of HK$5.6 million or 80.0% from a net income of HK$6.9 million for the six months ended June 30, 2024.

 

Cash and Cash Equivalents

 

For the first half of 2025, the Company achieved a net income of HK$12.5 million (US$1.6 million). Net cash generated from operating activities was HK$2.0 million (US$0.3 million), as the strong net income was partially offset by an increase in accounts receivable and a decrease in deferred revenue. The Company financed its daily operations and business development mainly through cash generated from its operations. As of June 30, 2025, the Company had cash and cash equivalents of approximately HK$11.9 million (US$1.5 million) representing an increase of HK$1.4 million from a cash and cash equivalents of approximately HK$10.5 million as of December 31, 2024.

 

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.

 

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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$1.00 = HK$7.8, which is the pegged rate as determined by the linked exchange rate system in Hong Kong.

 

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.

 

For more information, please contact:

 

ChowChow Cloud International Holdings Limited

Investor Relations

Email: ir@chowchowcloud.com

 

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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$0.0001, 500,000,000 shares authorized; 32,500,000 shares issued and outstanding as of December 31, 2024 and June 30, 2025   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 

 

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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.

 

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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.

 

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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 

 

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