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Guoquan Food (Shanghai) Co (HKSE:02517) Gross Margin % : 22.17% (As of Dec. 2023)


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What is Guoquan Food (Shanghai) Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Guoquan Food (Shanghai) Co's Gross Profit for the six months ended in Dec. 2023 was HK$1,478 Mil. Guoquan Food (Shanghai) Co's Revenue for the six months ended in Dec. 2023 was HK$6,666 Mil. Therefore, Guoquan Food (Shanghai) Co's Gross Margin % for the quarter that ended in Dec. 2023 was 22.17%.


The historical rank and industry rank for Guoquan Food (Shanghai) Co's Gross Margin % or its related term are showing as below:

HKSE:02517' s Gross Margin % Range Over the Past 10 Years
Min: 8.98   Med: 14.26   Max: 22.17
Current: 22.17


During the past 4 years, the highest Gross Margin % of Guoquan Food (Shanghai) Co was 22.17%. The lowest was 8.98%. And the median was 14.26%.

HKSE:02517's Gross Margin % is ranked worse than
56.58% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 25.085 vs HKSE:02517: 22.17

Guoquan Food (Shanghai) Co had a gross margin of 22.17% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Guoquan Food (Shanghai) Co was 0.00% per year.


Guoquan Food (Shanghai) Co Gross Margin % Historical Data

The historical data trend for Guoquan Food (Shanghai) 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.

Guoquan Food (Shanghai) Co Gross Margin % Chart

Guoquan Food (Shanghai) Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Gross Margin %
11.11 8.98 17.41 22.17

Guoquan Food (Shanghai) Co Semi-Annual Data
Dec20 Dec21 Dec22 Dec23
Gross Margin % 11.11 8.98 17.41 22.17

Competitive Comparison of Guoquan Food (Shanghai) Co's Gross Margin %

For the Packaged Foods subindustry, Guoquan Food (Shanghai) 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.


Guoquan Food (Shanghai) Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Guoquan Food (Shanghai) Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Guoquan Food (Shanghai) Co's Gross Margin % falls into.



Guoquan Food (Shanghai) Co Gross Margin % Calculation

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

Guoquan Food (Shanghai) 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 )
=1477.6 / 6665.602
=(Revenue - Cost of Goods Sold) / Revenue
=(6665.602 - 5187.971) / 6665.602
=22.17 %

Guoquan Food (Shanghai) 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 )
=1477.6 / 6665.602
=(Revenue - Cost of Goods Sold) / Revenue
=(6665.602 - 5187.971) / 6665.602
=22.17 %

* 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.


Guoquan Food (Shanghai) Co  (HKSE:02517) 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

Guoquan Food (Shanghai) Co had a gross margin of 22.17% 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.


Guoquan Food (Shanghai) Co Gross Margin % Related Terms

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Guoquan Food (Shanghai) Co (HKSE:02517) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Lane 187, Xinghong Road, Room 802, No. 3, Minhang, Shanghai, CHN
Guoquan Food (Shanghai) Co Ltd is the leading and rapidly growing home meal products brand in China. It offers a variety of ready-to-eat, ready-to-heat, ready-to-cook and prepared ingredients, with a focus on at-home hotpot and barbecue products. With a carefully curated product portfolio and an extensive network of community-based stores, it enables consumers to enjoy meals at home with convenience, affordability and tastiness. Leveraging its robust supply chain and production capabilities, The company offers a wide variety of home meal products under the Guoquan Shihui brand through a nationwide network of 9,844 retail stores in China, serving diverse dining scenarios.

Guoquan Food (Shanghai) Co (HKSE:02517) Headlines

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