China Water Industry Group (FRA:HAU) Gross Margin %: 2.42% (As of Dec. 2025) — 94% Below Median

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FRA:HAU China Water Industry Group Ltd FRA:HAU
33 GF Score
Price €0.02
GF Value €0.01
! 11 Warning Signs
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What is China Water Industry Group Gross Margin %?

China Water Industry Group FRA:HAU 33 Gross Margin % is 2.42% as of Dec. 2025, which is 94% below its 10-year median of 38.25. GuruFocus rates FRA:HAU with a GF Score™ of 33/100 and a GF Value™ of €0.01. The stock has 11 warning signs investors should review. Among 489 Utilities - Regulated companies, China Water Industry Group ranks worse than 97.34% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. China Water Industry Group's Gross Profit for the six months ended in Dec. 2025 was €0.31 Mil. China Water Industry Group's Revenue for the six months ended in Dec. 2025 was €12.71 Mil. Therefore, China Water Industry Group's Gross Margin % for the quarter that ended in Dec. 2025 was 2.42%.

Warning Sign:

China Water Industry Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -40.7%.


The historical rank and industry rank for China Water Industry Group's Gross Margin % or its related term are showing as below:

FRA:HAU' s Gross Margin % Range Over the Past 10 Years
Min: 1.91   Med: 38.25   Max: 42.52
Current: 1.91


During the past 13 years, the highest Gross Margin % of China Water Industry Group was 42.52%. The lowest was 1.91%. And the median was 38.25%.

FRA:HAU's Gross Margin % is ranked worse than
97.34% of 489 companies
in the Utilities - Regulated industry
Industry Median: 30.47 vs FRA:HAU: 1.91

China Water Industry Group had a gross margin of 2.42% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China Water Industry Group was -40.70% per year.


China Water Industry Group  (FRA:HAU) 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 Water Industry Group had a gross margin of 2.42% for the quarter that ended in Dec. 2025 => 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.


China Water Industry Group Gross Margin % Related Terms


China Water Industry Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for China Water Industry 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.

China Water Industry Group Gross Margin % Chart

China Water Industry Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.17 30.43 24.37 16.24 1.91

China Water Industry Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 19.59 18.08 13.59 1.41 2.42

FRA:HAU vs AWK, WTRG, AWR: Gross Margin % Comparison

For the Utilities - Regulated Water subindustry, China Water Industry 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.


China Water Industry Group Gross Margin % vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, China Water Industry Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Water Industry Group's Gross Margin % falls into.


FRA:HAU
33GF Score
China Water Industry Group Ltd FRA:HAU
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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China Water Industry Group Gross Margin % Calculation

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

China Water Industry Group's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=0.5 / 25.665
=(Revenue - Cost of Goods Sold) / Revenue
=(25.665 - 25.175) / 25.665
=1.91 %

China Water Industry Group's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=0.3 / 12.708
=(Revenue - Cost of Goods Sold) / Revenue
=(12.708 - 12.401) / 12.708
=2.42 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 2.42% mean?
China Water Industry Group (FRA:HAU) has a Gross Margin % of 2.42% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Water Industry Group and its competitors. This is 94% below median its historical median of 38.25. Over the past decade, China Water Industry Group's Gross Margin % has ranged from 1.91 to 42.52. According to the industry distribution chart, China Water Industry Group ranks #476 out of 489 companies in the Utilities - Regulated industry, placing it in the top 97.3%.
Is China Water Industry Group's Gross Margin % too high?
China Water Industry Group's current Gross Margin % of 2.42% is 94% below median its 10-year median of 38.25. Over the past 10 years, this metric has ranged from a low of 1.91 to a high of 42.52. The Utilities - Regulated industry median Gross Margin % is 30.47. China Water Industry Group's value of 2.42% is 92.1% below this industry median. Based on the distribution chart, China Water Industry Group ranks #476 out of 489 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, China Water Industry Group has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does China Water Industry Group's Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, China Water Industry Group ranks #476 out of 489 companies for Gross Margin %. This places China Water Industry Group in the lower half of its industry. The industry median Gross Margin % is 30.47. China Water Industry Group's value of 2.42% is 92.1% below this benchmark. Historically, China Water Industry Group's own Gross Margin % has ranged from 1.91 to 42.52 over the past decade. While the company's 10-year median is 38.25 vs. the industry median of 30.47, China Water Industry Group 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 Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.47, based on 489 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 Water Industry Group's current Gross Margin % of 2.42% is 92.1% 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 Water Industry Group and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Water Industry Group's current Gross Margin % is 2.42%, which is 94% below median its own 10-year median of 38.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Water Industry Group stock overvalued right now?
China Water Industry Group (FRA:HAU) has a current Gross Margin % of 2.42%. The stock's GF Value™ is €0.01, compared to a current price of €0.02 — trading 90% above its estimated fair value. The current Gross Margin % is 2.42%, which is 94% below median its 10-year median of 38.25 and 92.1% below the Utilities - Regulated industry median of 30.47. China Water Industry Group's overall GF Score™ is 33/100 with 11 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 Water Industry Group (FRA:HAU), the current Gross Margin % is 2.42% 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 Water Industry Group (FRA:HAU) Overvalued in 2026?

Based on GuruFocus' analysis, China Water Industry Group stock appears to be overvalued. The current stock price of €0.02 is trading 90% above its estimated GF Value™ of €0.01.

Key valuation signals for FRA:HAU:

  • Gross Margin %: 2.42% (94% below median its 10-year median of 38.25)
  • GF Value™: €0.01 vs. price of €0.02 (90% above fair value)
  • GF Score™: 33/100 with 11 warning signs
  • Industry Position: 92.1% below the Utilities - Regulated median (#476 of 489)

No single metric tells the full story. See the FRA:HAU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Water Industry Group Business Description

Other Exchanges 01129:Hong Kong
Address Dashi First Road, Xili Community, Xili Street, Room 2204, 22nd Floor, Block A, Building 6, Shenzhen International Innovation Valley, Nanshan District, Shenzhen, CHN
China Water Industry Group Ltd is an investment holding company engaged in the water supplying and energy related business. The company operates in business segments, namely Provision of water supply, sewage treatment, and construction services segment, which generates maximum revenue is engaged in provision of water supply and sewage treatment operations and related construction services; Exploitation and sale of renewable energy segment, engaged in the sale of electricity and CNG from biogas power plants; Property investment and development segment engaged in the sale of commercial and residential units; and waste management and recycling segment focuses on services income from collection and recycling of glass bottles and collection of food waste. It derives maximum revenue from PRC.
33GF Score

Get the complete analysis for FRA:HAU

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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