China LiteratureCHLLF 71 Gross Margin % is 42.73% as of Dec. 2025, which is 13% below its 10-year median of 48.98. GuruFocus rates CHLLF with a GF Score™ of 71/100 and a GF Value™ of $4.28 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 497 Interactive Media companies, China Literature ranks worse than 64.99% on this metric.
China Literature Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for China Literature's Gross Margin % or its related term are showing as below:
CHLLF'
s Gross Margin % Range Over the Past 10 Years
Min: 41.26 Med: 48.98 Max: 53.06
Current: 46.09
During the past 12 years, the highestGross Margin % of China Literature was 53.06%. The lowest was 41.26%. And the median was 48.98%.
CHLLF's Gross Margin % is ranked worse than 64.99% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs CHLLF: 46.09
China Literature had a gross margin of 42.73% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Literature was -2.10% per year.
China Literature (OTCPK:CHLLF) 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
China Literature had a gross margin of 42.73% for the quarter that ended in Dec. 2025 => 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.
China Literature Gross Margin % Related Terms
China Literature Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Literature'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.
CHLLF vs GOOGL, META, SPOT: Gross Margin % Comparison
For the Internet Content & Information subindustry, China Literature'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.
China Literature Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, China Literature's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Literature's Gross Margin % falls into.
* 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.
China Literature (CHLLF) has a Gross Margin % of 42.73% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Literature and its competitors. This is 13% below median its historical median of 48.98. Over the past decade, China Literature's Gross Margin % has ranged from 41.26 to 53.06. According to the industry distribution chart, China Literature ranks #323 out of 497 companies in the Interactive Media industry, placing it in the top 65%.
Is China Literature's Gross Margin % too high?
China Literature's current Gross Margin % of 42.73% is 13% below median its 10-year median of 48.98. Over the past 10 years, this metric has ranged from a low of 41.26 to a high of 53.06. The Interactive Media industry median Gross Margin % is 62.58. China Literature's value of 42.73% is 31.7% below this industry median. Based on the distribution chart, China Literature ranks #323 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, China Literature has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Literature's Gross Margin % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, China Literature ranks #323 out of 497 companies for Gross Margin %. This places China Literature in the lower half of its industry. The industry median Gross Margin % is 62.58. China Literature's value of 42.73% is 31.7% below this benchmark. Historically, China Literature's own Gross Margin % has ranged from 41.26 to 53.06 over the past decade. While the company's 10-year median is 48.98 vs. the industry median of 62.58, China Literature has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Literature's current Gross Margin % of 42.73% is 31.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on China Literature and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Literature's current Gross Margin % is 42.73%, which is 13% below median its own 10-year median of 48.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Literature stock overvalued right now?
Based on GuruFocus' analysis, China Literature (CHLLF) is currently considered Possible Value Trap. The stock's GF Value™ is $4.28, compared to a current price of $2.55 — trading 40.4% below its estimated fair value. The current Gross Margin % is 42.73%, which is 13% below median its 10-year median of 48.98 and 31.7% below the Interactive Media industry median of 62.58. China Literature's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For China Literature (CHLLF), the current Gross Margin % is 42.73% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Literature (CHLLF) Overvalued in 2026?
Based on GuruFocus' analysis, China Literature stock appears to be undervalued.
The current stock price of $2.55 is trading 40.4% below its estimated GF Value™ of $4.28.
GuruFocus considers China Literature to be Possible Value Trap.
Key valuation signals for CHLLF:
Gross Margin %: 42.73% (13% below median its 10-year median of 48.98)
GF Value™: $4.28 vs. price of $2.55 (40.4% below fair value)
Industry Position: 31.7% below the Interactive Media median (#323 of 497)
No single metric tells the full story. See the CHLLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Literature Ltd is an investment holding company. The company, along with its subsidiaries, provides online reading services, copyright commercialization, writer cultivation and brokerage, and operation of text work reading. It generates its revenue from Online reading through self-owned platform products. It operates in two segments: Online business, Intellectual property operations, and others. The Online business segment that derives the majority of revenue comprises online paid reading, online advertising, and game publishing. The Intellectual property operations and other segment include licensing and distribution of film and television properties, copyrights licensing, sales of adaptation rights and scripts, sales of physical books, and in-house online games operations.
71GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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