Changhong Jiahua Holding (HKSE:03991) Gross Margin % : 3.51% (As of Dec. 2023)

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What is Changhong Jiahua Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Changhong Jiahua Holding's Gross Profit for the six months ended in Dec. 2023 was HK$709 Mil. Changhong Jiahua Holding's Revenue for the six months ended in Dec. 2023 was HK$20,210 Mil. Therefore, Changhong Jiahua Holding's Gross Margin % for the quarter that ended in Dec. 2023 was 3.51%.

The historical rank and industry rank for Changhong Jiahua Holding's Gross Margin % or its related term are showing as below:

HKSE:03991' s Gross Margin % Range Over the Past 10 Years
Min: 2.67 Med: 3.58 Max: 4.34
Current: 3.5

During the past 13 years, the highest Gross Margin % of Changhong Jiahua Holding was 4.34%. The lowest was 2.67%. And the median was 3.58%.

HKSE:03991's Gross Margin % is ranked worse than
94.29% of 2436 companies
in the Hardware industry
Industry Median: 24.455 vs HKSE:03991: 3.50

Changhong Jiahua Holding had a gross margin of 3.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Changhong Jiahua Holding was -0.40% per year.

Changhong Jiahua Holding Gross Margin % Historical Data

The historical data trend for Changhong Jiahua Holding's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Changhong Jiahua Holding Gross Margin % Chart

Changhong Jiahua Holding Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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3.20

2.67

2.96

3.32

3.50

Changhong Jiahua Holding Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															3.29	3.09	3.52	3.49	3.51

Competitive Comparison of Changhong Jiahua Holding's Gross Margin %

For the Electronics & Computer Distribution subindustry, Changhong Jiahua Holding's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Changhong Jiahua Holding's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Changhong Jiahua Holding's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Changhong Jiahua Holding's Gross Margin % falls into.

Changhong Jiahua Holding Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Changhong Jiahua Holding's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1300.6	/	37170.632
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(37170.632 - 35870.017)	/	37170.632
	=	3.50 %

Changhong Jiahua Holding's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	708.7	/	20209.848
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20209.848 - 19501.17)	/	20209.848
	=	3.51 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Changhong Jiahua Holding (HKSE:03991) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Changhong Jiahua Holding had a gross margin of 3.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Changhong Jiahua Holding Gross Margin % Related Terms

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Changhong Jiahua Holding (HKSE:03991) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Changhong Jiahua Holding Ltd (HKSE:03991) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

168-200 Connaught Road, Unit 1412, 14th Foor, West Tower, Shun Tak Centre, Hong Kong, HKG

Website

https://www.changhongit.com

Changhong Jiahua Holding Ltd is an investment holding company. It operates through three segments viz. ICT Consumer Products which covers the distribution of ICT consumer products including personal computers, digital products, and IT accessories; ICT Corporate Products which is involved in the distribution of ICT corporate products including storage products, minicomputers, networking products, personal computer servers, and unified communication and contact center products; and Others include distribution of smartphones and development of its own-brand products including but not limited to intelligent terminals, sales of warranty packages and professional integrated ICT solutions and provision of ICT services. It derives prime revenue from Mainland China.

Executives

Zhu Jianqiu	2101 Beneficial owner
Changhong (hong Kong) Trading Ltd.	2201 Interest of corporation controlled by you
Sichuan Changhong Electric Co., Ltd.	2101 Beneficial owner
Fit Generation Holding Ltd.	2101 Beneficial owner

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