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Zhengwei Group Holdings Co (HKSE:02147) Gross Margin % : 32.62% (As of Dec. 2023)


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What is Zhengwei Group Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zhengwei Group Holdings Co's Gross Profit for the six months ended in Dec. 2023 was HK$90.5 Mil. Zhengwei Group Holdings Co's Revenue for the six months ended in Dec. 2023 was HK$277.3 Mil. Therefore, Zhengwei Group Holdings Co's Gross Margin % for the quarter that ended in Dec. 2023 was 32.62%.


The historical rank and industry rank for Zhengwei Group Holdings Co's Gross Margin % or its related term are showing as below:

HKSE:02147' s Gross Margin % Range Over the Past 10 Years
Min: 31.72   Med: 32.36   Max: 33.42
Current: 33.08

During the past 5 years, the highest Gross Margin % of Zhengwei Group Holdings Co was 33.42%. The lowest was 31.72%. And the median was 32.36%.

HKSE:02147's Gross Margin % is ranked better than
66.5% of 1809 companies
in the Consumer Packaged Goods industry
Industry Median: 25.32 vs HKSE:02147: 33.08

Zhengwei Group Holdings Co had a gross margin of 32.62% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Zhengwei Group Holdings Co was 0.00% per year.

Zhengwei Group Holdings Co Gross Margin % Historical Data

The historical data trend for Zhengwei Group Holdings Co'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.

* Premium members only.

Zhengwei Group Holdings Co Gross Margin % Chart

Zhengwei Group Holdings Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
32.36 32.02 31.72 33.42 33.08

Zhengwei Group Holdings Co Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial 33.63 32.33 34.38 33.67 32.62

Competitive Comparison of Zhengwei Group Holdings Co's Gross Margin %

For the Packaged Foods subindustry, Zhengwei Group Holdings Co'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.

Zhengwei Group Holdings Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Zhengwei Group Holdings Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zhengwei Group Holdings Co's Gross Margin % falls into.


Zhengwei Group Holdings Co Gross Margin % Calculation

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

Zhengwei Group Holdings Co'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 )
=161.1 / 486.966
=(Revenue - Cost of Goods Sold) / Revenue
=(486.966 - 325.896) / 486.966
=33.08 %

Zhengwei Group Holdings Co'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 )
=90.5 / 277.264
=(Revenue - Cost of Goods Sold) / Revenue
=(277.264 - 186.811) / 277.264
=32.62 %

* 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.

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.

Zhengwei Group Holdings Co  (HKSE:02147) 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

Zhengwei Group Holdings Co had a gross margin of 32.62% for the quarter that ended in Dec. 2023 => Competition eroding margins

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.

Zhengwei Group Holdings Co Gross Margin % Related Terms

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Zhengwei Group Holdings Co (HKSE:02147) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Zhengwei Group Holdings Co Ltd (HKSE:02147) » Definitions » Gross Margin %
Comparable Companies
HKSE:00411 HKSE:01837 HKSE:00829 HKSE:03838 HKSE:02317 HKSE:01583 HKSE:03999 HKSE:00809 HKSE:01285 HKSE:00926 XSWX:NESN KHC XPAR:BN GIS SHSE:603288 NSE:NESTLEIND SZSE:300999 SHSE:600887 TSE:2802 LSE:ABF
Traded in Other Exchanges
N/A
Address
487 Yuhu Road, Xiaolan Economic Development Zone, Nanchang, CHN
Website
https://www.zhengwei100.com
Zhengwei Group Holdings Co Ltd produces dry food and snacks, and secondarily trades related products. It produces and sells a variety of snacks (including ready-to-eat vegetarian snacks and meat snacks), such as crispy bamboo shoots and roast necks; and packaged dry goods such as mushrooms, dried aquatic products, seaweed, grains, and seasonings in China. The majority of revenue is derived from the Snacks segment. It has two operating segments Manufacturing & trading, out of which the majority is from the manufacturing segment. Geographically, the majority is from PRC.
Executives
Lin Qiu Yun 2101 Beneficial owner
Yang Shengyao 2201 Interest of corporation controlled by you
Shengyao Investment Group Limited 2101 Beneficial owner
Nan Chang Xian Wen Hua Lv You Tou Zi You Xian Gong Si 2101 Beneficial owner
Nan Chang Xian Ke Ji He Gong Ye Xun Xi Hua Ju 2201 Interest of corporation controlled by you
Lin Qiuyun 2201 Interest of corporation controlled by you
Trendy Peak International Limited 2101 Beneficial owner
Prosperous Season Group Limited 2101 Beneficial owner
Best Talent Venture Holdings Limited 2101 Beneficial owner
Chang Nan Financial Control Limited 2101 Beneficial owner
Pluto Universal Holdings Limited 2101 Beneficial owner
Lei Junfeng 2201 Interest of corporation controlled by you
Li Hui 2201 Interest of corporation controlled by you
Nan Chang Shi Tong Li Qi Ye Guan Li Zhong Xin You Xian He Huo 2201 Interest of corporation controlled by you
Nan Chang Xian Chang Nan Jin Kong Ji Jin Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you

Zhengwei Group Holdings Co (HKSE:02147) Headlines

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