Tanwan (FRA:K7U) Gross Margin %: 53.87% (As of Dec. 2025) — 26% Below Median

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FRA:K7U Tanwan Inc FRA:K7U
35 GF Score
Price €1.02
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What is Tanwan Gross Margin %?

Tanwan FRA:K7U -0.97% 35 Gross Margin % is 53.87% as of Dec. 2025, which is 26% below its 10-year median of 72.41. GuruFocus rates FRA:K7U with a GF Score™ of 35/100. The stock has 6 warning signs investors should review. Among 493 Interactive Media companies, Tanwan ranks worse than 54.36% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Tanwan's Gross Profit for the six months ended in Dec. 2025 was €140.7 Mil. Tanwan's Revenue for the six months ended in Dec. 2025 was €261.1 Mil. Therefore, Tanwan's Gross Margin % for the quarter that ended in Dec. 2025 was 53.87%.

Warning Sign:

Tanwan Inc gross margin has been in long-term decline. The average rate of decline per year is -6.7%.


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

FRA:K7U' s Gross Margin % Range Over the Past 10 Years
Min: 57.07   Med: 72.41   Max: 84.92
Current: 57.07


During the past 6 years, the highest Gross Margin % of Tanwan was 84.92%. The lowest was 57.07%. And the median was 72.41%.

FRA:K7U's Gross Margin % is ranked worse than
54.36% of 493 companies
in the Interactive Media industry
Industry Median: 61.67 vs FRA:K7U: 57.07

Tanwan had a gross margin of 53.87% for the quarter that ended in Dec. 2025 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tanwan was -6.70% per year.


Tanwan  (FRA:K7U) 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

Tanwan had a gross margin of 53.87% 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.


Tanwan Gross Margin % Related Terms


Tanwan Gross Margin % Historical Data

* Premium members only.

The historical data trend for Tanwan'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.

Tanwan Gross Margin % Chart

Tanwan Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial 82.61 72.70 70.20 72.12 57.09

Tanwan Semi-Annual Data
Dec20 Dec21 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only 73.18 73.29 70.52 60.54 53.87

FRA:K7U vs NTES, EA, TTWO: Gross Margin % Comparison

For the Electronic Gaming & Multimedia subindustry, Tanwan'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.


Tanwan Gross Margin % vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Tanwan's Gross Margin % distribution charts can be found below:

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


FRA:K7U
35GF Score
Tanwan Inc FRA:K7U
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tanwan Gross Margin % Calculation

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

Tanwan'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 )
=287.8 / 504.189
=(Revenue - Cost of Goods Sold) / Revenue
=(504.189 - 216.355) / 504.189
=57.09 %

Tanwan'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 )
=140.7 / 261.13
=(Revenue - Cost of Goods Sold) / Revenue
=(261.13 - 120.453) / 261.13
=53.87 %

* 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 53.87% mean?
Tanwan (FRA:K7U) has a Gross Margin % of 53.87% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tanwan and its competitors. This is 26% below median its historical median of 72.41. Over the past decade, Tanwan's Gross Margin % has ranged from 57.07 to 84.92. According to the industry distribution chart, Tanwan ranks #268 out of 493 companies in the Interactive Media industry, placing it in the top 54.4%.
Is Tanwan's Gross Margin % too high?
Tanwan's current Gross Margin % of 53.87% is 26% below median its 10-year median of 72.41. Over the past 10 years, this metric has ranged from a low of 57.07 to a high of 84.92. The Interactive Media industry median Gross Margin % is 61.67. Tanwan's value of 53.87% is 12.6% below this industry median. Based on the distribution chart, Tanwan ranks #268 out of 493 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Tanwan has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does Tanwan's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Tanwan ranks #268 out of 493 companies for Gross Margin %. This places Tanwan in the lower half of its industry. The industry median Gross Margin % is 61.67. Tanwan's value of 53.87% is 12.6% below this benchmark. Historically, Tanwan's own Gross Margin % has ranged from 57.07 to 84.92 over the past decade. While the company's 10-year median is 72.41 vs. the industry median of 61.67, Tanwan 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 61.67, based on 493 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. Tanwan's current Gross Margin % of 53.87% is 12.6% 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 Tanwan and its competitors. For the Interactive Media industry, the median Gross Margin % is 61.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tanwan's current Gross Margin % is 53.87%, which is 26% below median its own 10-year median of 72.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tanwan stock overvalued right now?
Tanwan (FRA:K7U) has a current Gross Margin % of 53.87%. The current Gross Margin % is 53.87%, which is 26% below median its 10-year median of 72.41 and 12.6% below the Interactive Media industry median of 61.67. Tanwan's overall GF Score™ is 35/100 with 6 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 Tanwan (FRA:K7U), the current Gross Margin % is 53.87% 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.

Tanwan Business Description

Other Exchanges 09890:Hong Kong
Address 656 Huangpu Avenue, Floors 41, 62 to 66, Canton Financial Center, Tianhe District, Guangdong Province, Guangzhou, CHN
Tanwan Inc Formerly ZX Inc is a publisher of online game products in China. It is devoted to marketing and operating online games (in particular mobile games) in China. The online games developed by its clients marketed and operated by the company are delivered to players under the Tan Wan brand. The company has enabled the marketing and operation of game products. Its geographic markets are Mainland China, Hong Kong, and Others. It generates revenue from marketing and operating online games and consumer product business, including sales of private-label and local-flavor rice noodle products and other fast consumer foods under the brand Zha Zha Hui.
35GF 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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