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Greater China Financial Holdings (HKSE:00431) Operating Margin % : -590.45% (As of Dec. 2023)


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What is Greater China Financial Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Greater China Financial Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-84.54 Mil. Greater China Financial Holdings's Revenue for the six months ended in Dec. 2023 was HK$14.32 Mil. Therefore, Greater China Financial Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -590.45%.

Warning Sign:

Greater China Financial Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -11.2%.

The historical rank and industry rank for Greater China Financial Holdings's Operating Margin % or its related term are showing as below:

HKSE:00431' s Operating Margin % Range Over the Past 10 Years
Min: -168.03   Med: -33.25   Max: 23.85
Current: -168.03


HKSE:00431's Operating Margin % is ranked worse than
94.53% of 384 companies
in the Credit Services industry
Industry Median: 17.505 vs HKSE:00431: -168.03

Greater China Financial Holdings's 5-Year Average Operating Margin % Growth Rate was -11.20% per year.

Greater China Financial Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-84.54 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-83.02 Mil.

Warning Sign:

Greater China Financial Holdings Ltd has never been profitable in the past 3 years. It lost money every year.


Greater China Financial Holdings Operating Margin % Historical Data

The historical data trend for Greater China Financial Holdings's Operating 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.

Greater China Financial Holdings Operating Margin % Chart

Greater China Financial Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -90.83 -33.91 -25.31 -31.86 -168.03

Greater China Financial Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating 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 -27.30 24.42 -121.57 4.31 -590.45

Competitive Comparison of Greater China Financial Holdings's Operating Margin %

For the Credit Services subindustry, Greater China Financial Holdings's Operating Margin %, along with its competitors' market caps and Operating 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.


Greater China Financial Holdings's Operating Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Greater China Financial Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Greater China Financial Holdings's Operating Margin % falls into.



Greater China Financial Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Greater China Financial Holdings's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-83.022 / 49.41
=-168.03 %

Greater China Financial Holdings'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 )
=-84.535 / 14.317
=-590.45 %

* 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.


Greater China Financial Holdings  (HKSE:00431) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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.


Greater China Financial Holdings Operating Margin % Related Terms

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


Greater China Financial Holdings (HKSE:00431) Business Description

Traded in Other Exchanges
N/A
Address
1 Matheson Street, Suites 3612-16, 36th Floor, Tower Two, Times Square, Causeway Bay, Hong Kong, HKG
Greater China Financial Holdings Ltd, through its subsidiaries, is engaged in investment holding, industrial property development, general trading of consumable goods, securities brokerage, insurance brokerage, asset management and loan financing operation including loan financing, financial guarantee services, loan referral and consultancy services. It generates maximum revenue from the loan financing operation segment. It operates in Hong Kong and the PRC. Geographically, it derives a majority of revenue from China.
Executives
Liu Kequan 2101 Beneficial owner
Chen Zheng 2201 Interest of corporation controlled by you
Skill Rich Limited 2101 Beneficial owner
Chu Lam Yiu 2101 Beneficial owner
Eastern Spring Global Limited 2101 Beneficial owner
Yang Dayong
Greater China Financial Holdings Limited 2201 Interest of corporation controlled by you
Harmonic Edge Limited 2106 Person having a security interest in shares
Liang Miaoxin 2202 Interest of your spouse

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