CMGE Technology Group (HKSE:00302) Gross Margin % : 39.88% (As of Dec. 2023)

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What is CMGE Technology Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CMGE Technology Group's Gross Profit for the six months ended in Dec. 2023 was HK$467 Mil. CMGE Technology Group's Revenue for the six months ended in Dec. 2023 was HK$1,171 Mil. Therefore, CMGE Technology Group's Gross Margin % for the quarter that ended in Dec. 2023 was 39.88%.

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

HKSE:00302' s Gross Margin % Range Over the Past 10 Years
Min: 32.02 Med: 35.29 Max: 40.96
Current: 36.19

During the past 8 years, the highest Gross Margin % of CMGE Technology Group was 40.96%. The lowest was 32.02%. And the median was 35.29%.

HKSE:00302's Gross Margin % is ranked worse than
76.49% of 519 companies
in the Interactive Media industry
Industry Median: 60.86 vs HKSE:00302: 36.19

CMGE Technology Group had a gross margin of 39.88% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for CMGE Technology Group was 2.80% per year.

CMGE Technology Group Gross Margin % Historical Data

The historical data trend for CMGE Technology Group'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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CMGE Technology Group Gross Margin % Chart

CMGE Technology Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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35.67

32.02

37.24

40.96

36.19

CMGE Technology Group Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial									35.68	40.64	41.23	33.62	39.88

Competitive Comparison of CMGE Technology Group's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, CMGE Technology Group'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.

CMGE Technology Group's Gross Margin % Distribution in the Interactive Media Industry

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

* The bar in red indicates where CMGE Technology Group's Gross Margin % falls into.

CMGE Technology Group Gross Margin % Calculation

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

CMGE Technology Group'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 )
	=	1031.5	/	2850.261
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2850.261 - 1818.716)	/	2850.261
	=	36.19 %

CMGE Technology Group'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 )
	=	466.9	/	1170.825
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1170.825 - 703.883)	/	1170.825
	=	39.88 %

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.

CMGE Technology Group (HKSE:00302) 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

CMGE Technology Group had a gross margin of 39.88% 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.

CMGE Technology Group Gross Margin % Related Terms

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CMGE Technology Group (HKSE:00302) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » CMGE Technology Group Ltd (HKSE:00302) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Zhongkang North Road, 10th Floor, Building No. 4, Zhuoyue Meilin Center Square, Futian District, Guangdong Province, Shenzhen, CHN

Website

https://www.cmge.com

CMGE is an IP-based mobile game developer and publisher in China with 55 licensed IPs and 68 proprietary IPs as of the end of 2021. The company has over 80 games on the shelf and over 20 games with lifecycles of over three years. Average monthly active users, or MAUs, of CMGE games reached 19.1 million in 2021. The market share of CMGE for online gaming grossing income in 2021 was around 1%.

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