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Chuanglian Holdings (Chuanglian Holdings) Gross Margin % : 21.41% (As of Jun. 2023)


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What is Chuanglian Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Chuanglian Holdings's Gross Profit for the six months ended in Jun. 2023 was $5.88 Mil. Chuanglian Holdings's Revenue for the six months ended in Jun. 2023 was $27.45 Mil. Therefore, Chuanglian Holdings's Gross Margin % for the quarter that ended in Jun. 2023 was 21.41%.

Warning Sign:

Chuanglian Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.3%.


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

COCGF' s Gross Margin % Range Over the Past 10 Years
Min: 46.74   Med: 56.48   Max: 74.23
Current: 21.72


During the past 13 years, the highest Gross Margin % of Chuanglian Holdings was 74.23%. The lowest was 46.74%. And the median was 56.48%.

COCGF's Gross Margin % is ranked worse than
91.97% of 249 companies
in the Education industry
Industry Median: 47.9 vs COCGF: 21.72

Chuanglian Holdings had a gross margin of 21.41% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Chuanglian Holdings was -3.30% per year.


Chuanglian Holdings Gross Margin % Historical Data

The historical data trend for Chuanglian 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.

Chuanglian Holdings Gross Margin % Chart

Chuanglian 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 61.33 56.12 52.46 46.74 21.72

Chuanglian 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 46.00 56.19 38.68 21.41 21.91

Competitive Comparison of Chuanglian Holdings's Gross Margin %

For the Education & Training Services subindustry, Chuanglian 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.


Chuanglian Holdings's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Chuanglian Holdings's Gross Margin % distribution charts can be found below:

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



Chuanglian Holdings Gross Margin % Calculation

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

Chuanglian Holdings's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=21.8 / 46.706
=(Revenue - Cost of Goods Sold) / Revenue
=(46.706 - 24.875) / 46.706
=46.74 %

Chuanglian Holdings's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=5.9 / 27.445
=(Revenue - Cost of Goods Sold) / Revenue
=(27.445 - 21.568) / 27.445
=21.41 %

* 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.


Chuanglian Holdings  (OTCPK:COCGF) 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

Chuanglian Holdings had a gross margin of 21.41% for the quarter that ended in Jun. 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.


Chuanglian Holdings Gross Margin % Related Terms

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


Chuanglian Holdings (Chuanglian Holdings) Business Description

Traded in Other Exchanges
Address
6-8 Harbour Road, Rooms 2009-18, 20th floor, Shui On Centre, Wanchai, Hong Kong, HKG
Chuanglian Holdings Ltd, formerly China Chuanglian Education Financial Group Ltd engages in investment holding and securities trading. The operating segments of the company are Financial Services, Educational consultancy and online training and education, and Securities trading. It generates maximum revenue from Educational consultancy and online training and education segment. The company has its business presence in China and Hong Kong where China stands as the highest revenue generator.

Chuanglian Holdings (Chuanglian Holdings) Headlines

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