In recent years, the scale of garden tools has grown steadily. According to Global Market Insights, the global lawn and garden equipment market will reach US$39.7 billion in 2023 and US$45.45 billion in 2025, with an average annual compound growth rate of about 7.0%. The overall market space is broad.
At the same time, with the advancement of lithium battery technology and the reduction of costs, the advantages of lithium battery garden tool products are gradually emerging. According to TraQline statistics, the market size of lithium battery garden tools is expected to reach US$5.6 billion by 2025.
As the leading companies in global lithium battery garden tools, Chervon and Greebo have occupied a good market share in the European and American markets and are leading the rise of lithium battery garden tools in China.
Chervon Holdings: Strong growth of 400%, expected profit of more than US$110 million
On January 16, 2025, Chervon Holdings released a positive profit forecast and business update. According to the announcement: Chervon Holdings expects to achieve a net profit of approximately US$110 million to US$120 million in 2024, and a net loss of approximately US$37.2 million in 2023, an increase of approximately 400% year-on-year. Adjusted net profit (excluding non-recurring costs related to the repositioning of the Group's Steinheim base in Germany) is expected to be approximately US$135 million to US$145 million.

The expected positive growth in net profit of Chervon Holdings during the reporting period is mainly driven by the following factors:

First, Chervon's revenue increased by approximately 25% to 30% compared with last year, thanks to the end of the channel destocking cycle. The strong terminal sales performance of the company's flagship brand EGO further drove customer orders;

Second, driven by scale recovery, business structure optimization, exchange rates, raw material costs and other favorable factors, gross profit margin has increased; and operating efficiency continues to improve.

FLEX German base production will be transferred to China

As part of Chervon Holdings' strategic adjustment plan to ensure long-term competitiveness, its indirect wholly-owned subsidiary FLEX-Elektrowerkzeuge GmbH plans to shut down production at its Steinheim base in Germany by the end of 2025. In the future, the production base will be relocated to China, and the Steinheim base will continue to serve as FLEX's product and sales capability center in Europe. The repositioning of the Steinheim site is expected to save approximately $10 million per year. Based on ongoing discussions with the Workers' Committee, most of the non-recurring costs associated with this adjustment will be recognized in the fourth quarter of 2024. This adjustment is in line with the Group's broader strategy to optimize its global production layout. As the Group continues to expand its production capacity in Vietnam, Chervon Holdings' efficient production facilities in China may be better used to support the company's global business and improve overall production efficiency.
At the same time, Chervon Holdings stated that it will officially release its 2024 annual performance announcement by the end of March 2025.
About Chervon Holdings

Chervon Holdings is China's largest global supplier of power tools and outdoor power equipment (OPE). In particular, it is one of the world's first companies to commercialize lithium-ion battery power tools in 2006 and launch high-voltage OPE products in 2014, especially in the field of lithium battery technology. This has enabled Chervon Holdings to grow rapidly and occupy a leading position in the global market. Currently, Chervon has established branches in Nanjing, North America, Europe, Australia, Vietnam, Japan and other places, with more than 10,000 employees worldwide. In 2023, Quanfeng's operating income was US$1.375 billion.
Greebo: Strong growth of 580 million yuan! Expected profit of more than 80 million yuan
On January 23, 2025, Greebo (Jiangsu) Co., Ltd. released its 2024 performance forecast. According to the announcement, Greebo expects the net profit attributable to shareholders of the listed company in 2024 to be 80 million to 120 million yuan, an increase of about 580 million yuan year-on-year.
Explanation of the reasons for Greebo's performance changes In 2024, the company's net profit increased by about 580 million yuan year-on-year. The main reasons include: 1) The increase in operating income and gross profit margin led to an increase in the company's gross profit; 2) The total period expenses decreased year-on-year. The specific situation is as follows:
1. Sales growth In terms of sales, during the reporting period, as the United States entered a cycle of interest rate cuts, driving the recovery of demand for real estate and other industries, and after retailers such as large supermarkets in Europe and the United States destocked, retailers and wholesalers increased their purchases, and the company's order volume gradually recovered, correspondingly pushing up the company's sales.
2. Cost control In 2024, the company proposed comprehensive cost reduction measures, controlled various expenses, and implemented strict expense budget management and approval systems. The period expense rate decreased to a significant extent compared with 2023.