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Central China Real Estate (Central China Real Estate) Gross Margin % : 8.08% (As of Dec. 2023)


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What is Central China Real Estate Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Central China Real Estate's Gross Profit for the six months ended in Dec. 2023 was $127 Mil. Central China Real Estate's Revenue for the six months ended in Dec. 2023 was $1,567 Mil. Therefore, Central China Real Estate's Gross Margin % for the quarter that ended in Dec. 2023 was 8.08%.

Warning Sign:

Central China Real Estate Ltd gross margin has been in long-term decline. The average rate of decline per year is -24.6%.


The historical rank and industry rank for Central China Real Estate's Gross Margin % or its related term are showing as below:

CNLLF' s Gross Margin % Range Over the Past 10 Years
Min: 7.9   Med: 22.92   Max: 34.44
Current: 10.17


During the past 13 years, the highest Gross Margin % of Central China Real Estate was 34.44%. The lowest was 7.90%. And the median was 22.92%.

CNLLF's Gross Margin % is ranked worse than
89.9% of 1653 companies
in the Real Estate industry
Industry Median: 36.78 vs CNLLF: 10.17

Central China Real Estate had a gross margin of 8.08% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Central China Real Estate was -24.60% per year.


Central China Real Estate Gross Margin % Historical Data

The historical data trend for Central China Real Estate'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.

Central China Real Estate Gross Margin % Chart

Central China Real Estate Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.02 19.85 16.23 7.90 10.17

Central China Real Estate 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.69 7.59 8.03 13.07 8.08

Competitive Comparison of Central China Real Estate's Gross Margin %

For the Real Estate - Development subindustry, Central China Real Estate'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.


Central China Real Estate's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Central China Real Estate's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Central China Real Estate's Gross Margin % falls into.



Central China Real Estate Gross Margin % Calculation

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

Central China Real Estate'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 )
=274.4 / 2697.556
=(Revenue - Cost of Goods Sold) / Revenue
=(2697.556 - 2423.137) / 2697.556
=10.17 %

Central China Real Estate'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 )
=126.6 / 1566.735
=(Revenue - Cost of Goods Sold) / Revenue
=(1566.735 - 1440.147) / 1566.735
=8.08 %

* 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.


Central China Real Estate  (OTCPK:CNLLF) 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

Central China Real Estate had a gross margin of 8.08% 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.


Central China Real Estate Gross Margin % Related Terms

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Central China Real Estate (Central China Real Estate) Business Description

Traded in Other Exchanges
Address
Nongye East Road, Block E, Jianye Office Building, Henan Province, Zhengzhou, CHN
Central China Real Estate Limited is a Hong Kong-based investment holding company principally engaged in property businesses. The Company's main businesses include the development of property projects for sales and rental, as well as hotel operations. Its properties include Zhengzhou Tianzhu, Zhengzhou Triumph Plaza, Pingdingshan Eighteen Cities, and Jiaozuo Xiuwu Forest Peninsula, among others. Its hotels include Le Meridien Zhengzhou, Aloft Zhengzhou Shangjie, and Holiday Inn Nanyang, among others. The Company is also involved in the businesses of cultural tourism projects and light-asset model projects. The Company mainly operates businesses in Henan, China.

Central China Real Estate (Central China Real Estate) Headlines