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Cinese International Group Holdings (HKSE:01620) Gross Margin % : 40.10% (As of Dec. 2023)


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What is Cinese International Group Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cinese International Group Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$26.3 Mil. Cinese International Group Holdings's Revenue for the six months ended in Dec. 2023 was HK$65.7 Mil. Therefore, Cinese International Group Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 40.10%.

Warning Sign:

Cinese International Group Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -10.8%.


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

HKSE:01620' s Gross Margin % Range Over the Past 10 Years
Min: 29.71   Med: 59.19   Max: 71.65
Current: 42.7


During the past 9 years, the highest Gross Margin % of Cinese International Group Holdings was 71.65%. The lowest was 29.71%. And the median was 59.19%.

HKSE:01620's Gross Margin % is ranked worse than
50.97% of 771 companies
in the Travel & Leisure industry
Industry Median: 43.21 vs HKSE:01620: 42.70

Cinese International Group Holdings had a gross margin of 40.10% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cinese International Group Holdings was -10.80% per year.


Cinese International Group Holdings Gross Margin % Historical Data

The historical data trend for Cinese International Group 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.

Cinese International Group Holdings Gross Margin % Chart

Cinese International Group Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 71.65 45.70 29.71 49.21 42.70

Cinese International Group Holdings Semi-Annual Data
Dec15 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 28.72 47.51 51.56 47.21 40.10

Competitive Comparison of Cinese International Group Holdings's Gross Margin %

For the Travel Services subindustry, Cinese International Group 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.


Cinese International Group Holdings's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Cinese International Group Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Cinese International Group Holdings's Gross Margin % falls into.



Cinese International Group Holdings Gross Margin % Calculation

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

Cinese International Group 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 )
=44.2 / 103.51
=(Revenue - Cost of Goods Sold) / Revenue
=(103.51 - 59.312) / 103.51
=42.70 %

Cinese International Group 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 )
=26.3 / 65.668
=(Revenue - Cost of Goods Sold) / Revenue
=(65.668 - 39.337) / 65.668
=40.10 %

* 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.


Cinese International Group Holdings  (HKSE:01620) 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

Cinese International Group Holdings had a gross margin of 40.10% 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.


Cinese International Group Holdings Gross Margin % Related Terms

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Cinese International Group Holdings (HKSE:01620) Business Description

Traded in Other Exchanges
N/A
Address
1090 Don Mills Road, Suite 304, Toronto, ON, CAN, M3C 3R6
Cinese International Group Holdings Ltd is engaged in air ticket distribution, travel business process management, travel products and services, and other business process management. The business segments are air ticket distribution, travel business process management, travel products and services, and other business process management. The other business process management segment contributes to the majority of its revenue. Geographically, the majority of the company's revenue is generated from Canada.
Executives
Liu Xuebin 2201 Interest of corporation controlled by you
Tomorrow Education Holding Limited 2201 Interest of corporation controlled by you
Tomorrow Education Technology Limited 2101 Beneficial owner

Cinese International Group Holdings (HKSE:01620) Headlines

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