Markets have ups and downs, and any industry may encounter its inevitable industry cycle, just like consumer electronics, which was widely criticized last year, staged a series of “king’s return” dramas at the beginning of the year. Some leading enterprises even saw their performance multiply several times, which is a common phenomenon. For companies that produce electric tools, their cyclicality can be traced to a certain extent, but it is not entirely accurate. Even the most experienced industry analysts may not be able to accurately predict its peaks and troughs.

Chervon Holdings, which suffered a loss in performance last year, was also engulfed in pessimistic voices. However, it suddenly reversed its fortune this year, with a significant increase of 300% in net profit in the first three quarters of 2024. Along with the surge in net profit, its share price also once rose by more than 9%. As the market warms up, various favorable factors are also coming one after another.

As a leading brand in the categories of power tools and outdoor power equipment on Amazon, Walmart, and other platforms, Chervon Holdings has also sized up the situation. Against the backdrop of the global wave of new energy, it has focused on innovation in lithium-ion battery system technology, and its products have achieved impressive sales figures on multiple e-commerce platforms. However, puzzlingly, after listing on the Hong Kong Stock Exchange on December 30, 2021, its revenue and net profit declined in 2023, leading to a significant loss. The company incurred a loss of USD 37.2 million for the entire year, representing a year-on-year decline of 126.7%, which led to negative sentiment in both the stock market and the broader market.

From 2018 to 2022, this was undoubtedly the golden era for Chervon Holdings, with its performance consistently showing strong growth momentum. However, the sharp downturn that began in 2023 can only indicate that the electric tool industry has also embarked on a transformation towards lithium-ion battery and intelligence. As a result, industry pain is inevitable. Nonetheless, Chervon Holdings has achieved a turnaround through its excellent product and brand strength. On the one hand, it has expanded its sales network; on the other hand, it has focused on comprehensive coverage of high-end, mass-market OPE (Outdoor Power Equipment), consumer-grade, and industrial-grade electric tools. With the improvement of overall solutions for R&D, production, testing, sales, and after-sales services of new products in related industries, its performance has also improved, returning to the right track.

What are the main electric tool businesses of Chervon Holdings?

Unless someone genuinely wants to understand Chervon Holdings, they may not be aware of the company's specific businesses and the products it offers.

As China's largest electric tool and outdoor power equipment supplier and the world's largest supplier, Chervon Holdings has a rich product portfolio that spans various fields. Its presence can be found almost anywhere there is industry. With years of professional R&D and manufacturing capabilities, the company continues to launch powerful, durable, efficient, and safe electric tools that can meet the needs of industrial and professional users, as well as those of DIY enthusiasts and gardeners.

In fact, this Asian power tool brand boasts advantageous product lines in metalworking, woodworking, stoneworking, and gardening, with over 100 professional products widely used in construction engineering, equipment maintenance, automotive beauty and maintenance, garden maintenance, mining, shipbuilding, and other professional fields. Tailored for the Chinese construction and home improvement industries, these cost-effective and professional electric tools are the perfect choice for simple and durable products in these sectors.

Thanks to the high recognition and practicality of its products, Chervon Holdings has won widespread market and user acceptance since its inception. From its brand launch to its listing on the Hong Kong Stock Exchange, Chervon Holdings has maintained a unique position in the electric tool industry, with its five major brands comprehensively covering industrial, professional, and consumer electric tools. Whether in China or globally, the company enjoys absolute competitiveness and core advantages.

Navigating the painful transition towards future growth

Those who have used electric tools know that before the widespread adoption of lithium-ion batteries, electric tools relied on either corded power or lead-acid or alkaline batteries for power. Precisely because of this, during the research and development phase of lithium-ion batteries, when the technology was not yet mature, Chervon Holdings' performance was underestimated, leading to a loss in 2023. This period undoubtedly represented a painful transition as the company sought to upgrade and innovate its products.

While the outside world was still skeptical about the declining performance of the "first stock of electric tools," Chervon Holdings introduced new products equipped with industry-leading battery technology, offering powerful and quiet performance. These products, with their exceptional capabilities, provided richer options across multiple fields. More than 70 products feature compatibility, driving industry development and laying a solid foundation for this year's performance explosion.

With the continuous launch of new products and the development of more commercial series tools, lithium-ion batteries and outdoor power equipment have become new sources of revenue for Chervon Holdings. For example, the combination of lithium-ion wrenches and lithium-ion circular saws, known as the "scaffolder's miracle tool," has been widely welcomed and recognized by users. This underscores the importance of continuously providing high-quality, cost-effective products to win the trust and satisfaction of consumers. As the tide of the times shifts towards new trends, soft-packed battery technology represents the new direction of power. The combination of intelligent battery management and cutting-edge cooling technology enhances traditional lithium-ion battery power by 200%, extends battery life by 300%, and doubles charging speed, allowing for a full charge in just 30 minutes. This undoubtedly provides users with a faster, more convenient, and efficient option.

In the industrial era dominated by new energy, ordinary residents have higher demands for the quality of life. DIY enthusiasts and gardeners need convenient, fast, and lightweight electric tools when working on their own projects at home. With the launch of more than 60 new products this year, Chervon Holdings, after fully tapping into its production capacity and market potential, will continue to consolidate its position as the "first stock of electric tools." Its performance improvement is just the beginning!