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Excellence Commercial Property & Facilities Management Group (HKSE:06989) Gross Margin % : 16.92% (As of Dec. 2023)


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What is Excellence Commercial Property & Facilities Management Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Excellence Commercial Property & Facilities Management Group's Gross Profit for the six months ended in Dec. 2023 was HK$386 Mil. Excellence Commercial Property & Facilities Management Group's Revenue for the six months ended in Dec. 2023 was HK$2,283 Mil. Therefore, Excellence Commercial Property & Facilities Management Group's Gross Margin % for the quarter that ended in Dec. 2023 was 16.92%.

Warning Sign:

Excellence Commercial Property & Facilities Management Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -3%.


The historical rank and industry rank for Excellence Commercial Property & Facilities Management Group's Gross Margin % or its related term are showing as below:

HKSE:06989' s Gross Margin % Range Over the Past 10 Years
Min: 19.02   Med: 24.06   Max: 27.68
Current: 19.02


During the past 7 years, the highest Gross Margin % of Excellence Commercial Property & Facilities Management Group was 27.68%. The lowest was 19.02%. And the median was 24.06%.

HKSE:06989's Gross Margin % is ranked worse than
76.99% of 1656 companies
in the Real Estate industry
Industry Median: 36.73 vs HKSE:06989: 19.02

Excellence Commercial Property & Facilities Management Group had a gross margin of 16.92% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Excellence Commercial Property & Facilities Management Group was -3.00% per year.


Excellence Commercial Property & Facilities Management Group Gross Margin % Historical Data

The historical data trend for Excellence Commercial Property & Facilities Management 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.

* Premium members only.

Excellence Commercial Property & Facilities Management Group Gross Margin % Chart

Excellence Commercial Property & Facilities Management Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 23.61 26.29 27.68 23.94 19.02

Excellence Commercial Property & Facilities Management Group Semi-Annual Data
Dec17 Dec18 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 25.95 28.44 18.90 21.39 16.92

Competitive Comparison of Excellence Commercial Property & Facilities Management Group's Gross Margin %

For the Real Estate Services subindustry, Excellence Commercial Property & Facilities Management 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.


Excellence Commercial Property & Facilities Management Group's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Excellence Commercial Property & Facilities Management Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Excellence Commercial Property & Facilities Management Group's Gross Margin % falls into.



Excellence Commercial Property & Facilities Management Group Gross Margin % Calculation

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

Excellence Commercial Property & Facilities Management 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 )
=816.7 / 4295.06
=(Revenue - Cost of Goods Sold) / Revenue
=(4295.06 - 3478.345) / 4295.06
=19.02 %

Excellence Commercial Property & Facilities Management 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 )
=386.3 / 2283.23
=(Revenue - Cost of Goods Sold) / Revenue
=(2283.23 - 1896.892) / 2283.23
=16.92 %

* 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.


Excellence Commercial Property & Facilities Management Group  (HKSE:06989) 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

Excellence Commercial Property & Facilities Management Group had a gross margin of 16.92% 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.


Excellence Commercial Property & Facilities Management Group Gross Margin % Related Terms

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Excellence Commercial Property & Facilities Management Group (HKSE:06989) Business Description

Traded in Other Exchanges
N/A
Address
Fuhua Third Road, 38Ath Floor, Tower 4, Excellence Century Center, Futian District, Guangdong Province, Shenzhen, CHN, 518000
Excellence Commercial Property & Facilities Management Group Ltd is a commercial property management service provider in China. The company's projects included commercial properties, public and industrial properties, and residential properties. It operates in three segments namely Finance services, Other services, and Property management services that provide basic property management services or system supply and installation services to property developers, property owners, and tenants, and value-added services to such customers, including asset services which includes preliminary property consulting services, property leasing and sales agency services, asset-light property operation services and space operation services, and corporate services.
Executives
Xiao Xingping 2202 Interest of your spouse
Li Xiaoping 2101 Beneficial owner
Li Wa 2201 Interest of corporation controlled by you
Oriental Rich Holdings Group Limited 2201 Interest of corporation controlled by you
Urban Hero Investments Limited 2101 Beneficial owner
Ever Rainbow Holdings Limited 2101 Beneficial owner
Autumn Riches Limited 2101 Beneficial owner
Li Yuan 2201 Interest of corporation controlled by you

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