China Yurun Food Group (HKSE:01068) Gross Margin % : 6.86% (As of Dec. 2023)

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What is China Yurun Food Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China Yurun Food Group's Gross Profit for the six months ended in Dec. 2023 was HK$44 Mil. China Yurun Food Group's Revenue for the six months ended in Dec. 2023 was HK$641 Mil. Therefore, China Yurun Food Group's Gross Margin % for the quarter that ended in Dec. 2023 was 6.86%.

Warning Sign:

China Yurun Food Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.

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

HKSE:01068' s Gross Margin % Range Over the Past 10 Years
Min: 3.18 Med: 5.19 Max: 8.01
Current: 8.01

During the past 13 years, the highest Gross Margin % of China Yurun Food Group was 8.01%. The lowest was 3.18%. And the median was 5.19%.

HKSE:01068's Gross Margin % is ranked worse than
86.99% of 1806 companies
in the Consumer Packaged Goods industry
Industry Median: 25.285 vs HKSE:01068: 8.01

China Yurun Food Group had a gross margin of 6.86% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China Yurun Food Group was -2.50% per year.

China Yurun Food Group Gross Margin % Historical Data

The historical data trend for China Yurun Food 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.

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China Yurun Food Group Gross Margin % Chart

China Yurun Food Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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7.39

5.08

4.72

5.22

8.01

China Yurun Food Group 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															0.90	6.76	3.94	8.97	6.86

Competitive Comparison of China Yurun Food Group's Gross Margin %

For the Packaged Foods subindustry, China Yurun Food 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 Yurun Food Group's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, China Yurun Food Group's Gross Margin % distribution charts can be found below:

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

China Yurun Food Group Gross Margin % Calculation

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

China Yurun Food Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	113	/	1410.943
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1410.943 - 1297.953)	/	1410.943
	=	8.01 %

China Yurun Food Group'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 )
	=	44	/	641.243
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(641.243 - 597.274)	/	641.243
	=	6.86 %

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 Yurun Food Group (HKSE:01068) 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 Yurun Food Group had a gross margin of 6.86% 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.

China Yurun Food Group Gross Margin % Related Terms

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China Yurun Food Group (HKSE:01068) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » China Yurun Food Group Ltd (HKSE:01068) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

C7Y:Germany

Address

10 Yurun Road, Jianye District, Nanjing, CHN, 210041

Website

http://www.yurun.com.hk

China Yurun Food Group Ltd is mainly engaged in the provision of a wide range of meat and processed meat including chilled and frozen meat, low-temperature meat products and high-temperature meat products, and others. The company operates through two business segments namely Chilled and frozen meat and Processed meat products. The Chilled and frozen meat is involved in the business of slaughtering, production, and sales of chilled and frozen meat whereas the Processed meat products segment manufactures and distributes processed meat products. The company markets its products under the brand name of Yurun, Furun, Wangrun, and Popular Meat Packing. China Yurun generates all the revenue from the sale of meat products in the People's Republic of China.

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