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Maoyan Entertainment (HKSE:01896) Gross Margin % : 50.13% (As of Dec. 2023)


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What is Maoyan Entertainment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Maoyan Entertainment's Gross Profit for the six months ended in Dec. 2023 was HK$1,404 Mil. Maoyan Entertainment's Revenue for the six months ended in Dec. 2023 was HK$2,801 Mil. Therefore, Maoyan Entertainment's Gross Margin % for the quarter that ended in Dec. 2023 was 50.13%.

Warning Sign:

Maoyan Entertainment gross margin has been in long-term decline. The average rate of decline per year is -5.1%.


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

HKSE:01896' s Gross Margin % Range Over the Past 10 Years
Min: 39.35   Med: 55.43   Max: 68.37
Current: 50.13


During the past 9 years, the highest Gross Margin % of Maoyan Entertainment was 68.37%. The lowest was 39.35%. And the median was 55.43%.

HKSE:01896's Gross Margin % is ranked worse than
61.69% of 522 companies
in the Interactive Media industry
Industry Median: 60.98 vs HKSE:01896: 50.13

Maoyan Entertainment had a gross margin of 50.13% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Maoyan Entertainment was -5.10% per year.


Maoyan Entertainment Gross Margin % Historical Data

The historical data trend for Maoyan Entertainment'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.

Maoyan Entertainment Gross Margin % Chart

Maoyan Entertainment Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 62.26 39.35 55.43 43.97 50.13

Maoyan Entertainment Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.30 52.24 35.25 50.12 50.13

Competitive Comparison of Maoyan Entertainment's Gross Margin %

For the Internet Content & Information subindustry, Maoyan Entertainment'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.


Maoyan Entertainment's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Maoyan Entertainment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Maoyan Entertainment's Gross Margin % falls into.



Maoyan Entertainment Gross Margin % Calculation

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

Maoyan Entertainment'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 )
=2608.5 / 5203.51
=(Revenue - Cost of Goods Sold) / Revenue
=(5203.51 - 2594.995) / 5203.51
=50.13 %

Maoyan Entertainment'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 )
=1404.1 / 2800.612
=(Revenue - Cost of Goods Sold) / Revenue
=(2800.612 - 1396.547) / 2800.612
=50.13 %

* 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.


Maoyan Entertainment  (HKSE:01896) 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

Maoyan Entertainment had a gross margin of 50.13% for the quarter that ended in Dec. 2023 => Durable 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.


Maoyan Entertainment Gross Margin % Related Terms

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Maoyan Entertainment (HKSE:01896) Business Description

Traded in Other Exchanges
Address
No. 11 Hepingli East Street, No. 3 Building, Yonghe Hangxing Garden, Dongcheng District, Beijing, CHN
Maoyan Entertainment is a China-based company which mainly operates an innovative Internet-empowered entertainment service platform. The company operates in three segments. The Online Entertainment Ticketing Services segment offers online ticketing services for comprehensive entertainment formats, such as movies and entertainment events. The Entertainment Content Services segment operates an integrated platform to provide entertainment content services, ranging from distribution, and promotion to production, for various entertainment formats including movies, TV series, variety shows, and entertainment events. The Advertising Services and Others segment serves advertisers in both the entertainment industry and other industries including automobile, electronics, and consumer products.

Maoyan Entertainment (HKSE:01896) Headlines

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