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China Finance Investment Holdings (HKSE:00875) Gross Margin % : 6.94% (As of Dec. 2023)


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What is China Finance Investment Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China Finance Investment Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$25 Mil. China Finance Investment Holdings's Revenue for the six months ended in Dec. 2023 was HK$360 Mil. Therefore, China Finance Investment Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 6.94%.

Warning Sign:

China Finance Investment Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -26.9%.


The historical rank and industry rank for China Finance Investment Holdings's Gross Margin % or its related term are showing as below:

HKSE:00875' s Gross Margin % Range Over the Past 10 Years
Min: -19.19   Med: 6.02   Max: 53.73
Current: 3.17


During the past 13 years, the highest Gross Margin % of China Finance Investment Holdings was 53.73%. The lowest was -19.19%. And the median was 6.02%.

HKSE:00875's Gross Margin % is ranked worse than
93.98% of 1810 companies
in the Consumer Packaged Goods industry
Industry Median: 25.25 vs HKSE:00875: 3.17

China Finance Investment Holdings had a gross margin of 6.94% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China Finance Investment Holdings was -26.90% per year.


China Finance Investment Holdings Gross Margin % Historical Data

The historical data trend for China Finance Investment Holdings'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.

China Finance Investment Holdings Gross Margin % Chart

China Finance Investment Holdings 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 3.71 13.73 7.25 4.78 3.17

China Finance Investment Holdings 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 4.35 3.86 5.23 1.91 6.94

Competitive Comparison of China Finance Investment Holdings's Gross Margin %

For the Farm Products subindustry, China Finance Investment Holdings'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.


China Finance Investment Holdings's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, China Finance Investment Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Finance Investment Holdings's Gross Margin % falls into.



China Finance Investment Holdings Gross Margin % Calculation

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

China Finance Investment Holdings'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 )
=45.6 / 1439.402
=(Revenue - Cost of Goods Sold) / Revenue
=(1439.402 - 1393.805) / 1439.402
=3.17 %

China Finance Investment Holdings'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 )
=25 / 360.187
=(Revenue - Cost of Goods Sold) / Revenue
=(360.187 - 335.182) / 360.187
=6.94 %

* 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.


China Finance Investment Holdings  (HKSE:00875) 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

China Finance Investment Holdings had a gross margin of 6.94% 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.


China Finance Investment Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of China Finance Investment Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


China Finance Investment Holdings (HKSE:00875) Business Description

Traded in Other Exchanges
N/A
Address
No. 3 Salisbury Road, Unit 32A, 15th Floor, Star House, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
China Finance Investment Holdings Ltd is engaged in growing of agricultural produce, trading of agricultural and meat produce, poultry, seafood and prepared food in the PRC. The company has only one operating and reportable segment, being agricultural and meat business. The company earns majority of its revenue from the PRC.
Executives
Lin Yuhao 2101 Beneficial owner
Sino Richest Investment Holdings Limited
Hui Jia Investments Limited 2101 Beneficial owner
Chen Huifang 2201 Interest of corporation controlled by you

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