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Xiabuxiabu Catering Management (China) Hldgs Co (HKSE:00520) Operating Income : HK$46 Mil (TTM As of Dec. 2023)


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What is Xiabuxiabu Catering Management (China) Hldgs Co Operating Income?

Xiabuxiabu Catering Management (China) Hldgs Co's Operating Income for the six months ended in Dec. 2023 was HK$3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$46 Mil.

Warning Sign:

Xiabuxiabu Catering Management (China) Hldgs Co Ltd has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Xiabuxiabu Catering Management (China) Hldgs Co's Operating Income for the six months ended in Dec. 2023 was HK$3 Mil. Xiabuxiabu Catering Management (China) Hldgs Co's Revenue for the six months ended in Dec. 2023 was HK$3,360 Mil. Therefore, Xiabuxiabu Catering Management (China) Hldgs Co's Operating Margin % for the quarter that ended in Dec. 2023 was 0.10%.

Xiabuxiabu Catering Management (China) Hldgs Co's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Xiabuxiabu Catering Management (China) Hldgs Co's annualized ROC % for the quarter that ended in Dec. 2023 was 0.23%. Xiabuxiabu Catering Management (China) Hldgs Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -8.70%.


Xiabuxiabu Catering Management (China) Hldgs Co Operating Income Historical Data

The historical data trend for Xiabuxiabu Catering Management (China) Hldgs Co's Operating Income 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.

Xiabuxiabu Catering Management (China) Hldgs Co Operating Income Chart

Xiabuxiabu Catering Management (China) Hldgs Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 626.62 80.24 14.31 -337.08 45.96

Xiabuxiabu Catering Management (China) Hldgs Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating Income 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 -15.15 -285.71 -64.89 42.60 3.35

Xiabuxiabu Catering Management (China) Hldgs Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$46 Mil.

* 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.


Xiabuxiabu Catering Management (China) Hldgs Co  (HKSE:00520) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Xiabuxiabu Catering Management (China) Hldgs Co's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=6.704 * ( 1 - -49.58% )/( (4760.974 + 4138.218)/ 2 )
=10.0278432/4449.596
=0.23 %

where

Invested Capital(Q: Jun. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4793.048 - 265.186 - ( 192.183 - max(0, 2086.171 - 1853.059+192.183))
=4760.974

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4502.29 - 741.661 - ( 717.636 - max(0, 2061.56 - 1683.971+717.636))
=4138.218

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Xiabuxiabu Catering Management (China) Hldgs Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-224.288/( ( (2542.212 + max(262.559, 0)) + (2349.878 + max(-430.628, 0)) )/ 2 )
=-224.288/( ( 2804.771 + 2349.878 )/ 2 )
=-224.288/2577.3245
=-8.70 %

where Working Capital is:

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(44.764 + 600.85 + 994.684) - (265.186 + 0 + 1112.553)
=262.559

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(76.392 + 377.947 + 490.121) - (741.661 + 0 + 633.427)
=-430.628

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Xiabuxiabu Catering Management (China) Hldgs Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=3.352/3359.915
=0.10 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Xiabuxiabu Catering Management (China) Hldgs Co Operating Income Related Terms

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Xiabuxiabu Catering Management (China) Hldgs Co (HKSE:00520) Business Description

Traded in Other Exchanges
Address
Suncun Industrial Development Zone, Huangcun Town, Daxing District, Beijing, CHN
Xiabuxiabu Catering Management is a Chinese multibrand restaurant operator. The firm generates most of its revenue from two hot pot restaurant chains—Xiabuxiabu and Coucou. Started in 1998, the namesake Xiabuxiabu brand is known for serving the Chinese hot pot format in a value-oriented, quick-service setting. Diners of Xiabuxiabu usually sit on bar counters, and a pot is provided for each diner. The Coucou brand was launched in 2016 as part of the group's foray into the high-end hot pot market. Unlike the group's namesake restaurant, Coucou serves Taiwanese-style hot pot in a beautifully decorated sit-down setting. The group does not franchise any of its restaurant brands, meaning all of its restaurants are self-operated and company-owned.
Executives
Ho Kuang-chi 2101 Beneficial owner
Chen Su-yin 2202 Interest of your spouse
Blackrock, Inc. 2201 Interest of corporation controlled by you
The Goldman Sachs Group, Inc. 2201 Interest of corporation controlled by you
China International Capital Corporation (international) Limited 2201 Interest of corporation controlled by you
China International Capital Corporation Limited 2201 Interest of corporation controlled by you
China International Capital Corporation Hong Kong Securities Limited 2105 Underwriter
Gap (bermuda) Limited 2201 Interest of corporation controlled by you
General Atlantic Genpar (bermuda), L.p. 2201 Interest of corporation controlled by you
General Atlantic Partners (bermuda) Ii, L.p. 2201 Interest of corporation controlled by you
General Atlantic Partners (bermuda) Iv, L.p. 2201 Interest of corporation controlled by you
General Atlantic Singapore Fund Interholdco Ltd. 2201 Interest of corporation controlled by you
General Atlantic Singapore Fund Pte. Ltd. 2101 Beneficial owner

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