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Champion Technology Holdings (HKSE:00092) Gross Margin % : 7.28% (As of Dec. 2023)


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What is Champion Technology Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Champion Technology Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$6.5 Mil. Champion Technology Holdings's Revenue for the six months ended in Dec. 2023 was HK$89.3 Mil. Therefore, Champion Technology Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 7.28%.

Warning Sign:

Champion Technology Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -28%.


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

HKSE:00092' s Gross Margin % Range Over the Past 10 Years
Min: 5.31   Med: 19.2   Max: 53.06
Current: 8.86


During the past 13 years, the highest Gross Margin % of Champion Technology Holdings was 53.06%. The lowest was 5.31%. And the median was 19.20%.

HKSE:00092's Gross Margin % is ranked worse than
79.74% of 928 companies
in the Oil & Gas industry
Industry Median: 27.905 vs HKSE:00092: 8.86

Champion Technology Holdings had a gross margin of 7.28% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Champion Technology Holdings was -28.00% per year.


Champion Technology Holdings Gross Margin % Historical Data

The historical data trend for Champion Technology 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.

Champion Technology Holdings Gross Margin % Chart

Champion Technology Holdings Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.38 22.55 6.84 5.31 16.01

Champion Technology 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 6.95 2.67 20.12 15.34 7.28

Competitive Comparison of Champion Technology Holdings's Gross Margin %

For the Oil & Gas Midstream subindustry, Champion Technology 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.


Champion Technology Holdings's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Champion Technology Holdings's Gross Margin % distribution charts can be found below:

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



Champion Technology Holdings Gross Margin % Calculation

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

Champion Technology Holdings's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=4.1 / 25.292
=(Revenue - Cost of Goods Sold) / Revenue
=(25.292 - 21.242) / 25.292
=16.01 %

Champion Technology Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=6.5 / 89.336
=(Revenue - Cost of Goods Sold) / Revenue
=(89.336 - 82.831) / 89.336
=7.28 %

* 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.


Champion Technology Holdings  (HKSE:00092) 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

Champion Technology Holdings had a gross margin of 7.28% for the quarter that ended in Dec. 2023 => 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.


Champion Technology Holdings Gross Margin % Related Terms

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


Champion Technology Holdings (HKSE:00092) Business Description

Traded in Other Exchanges
N/A
Address
188 Connaught Road West, Units 4214-15, 42nd Floor, Hong Kong Plaza, Hong Kong, HKG
Champion Technology Holdings Ltd is engaged in the business of systems sales and licensing. It operates in several segments which include Sales of cultural products, Technology: Smart City Solution Business, Technology Renewable energy, Trading of gasoil and related business, and Strategic investments. It generates maximum revenue from the Technology Renewable energy segment, which includes income from design and sales of renewable energy products and solutions.

Champion Technology Holdings (HKSE:00092) Headlines

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