Virtual Mind Holding Co (HKSE:01520) Gross Margin %: 1.44% (As of Dec. 2025) — 93% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:01520 Virtual Mind Holding Co Ltd HKSE:01520
33 GF Score
Price HK$0.51
GF Value HK$0.63
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Virtual Mind Holding Co Gross Margin %?

Virtual Mind Holding Co HKSE:01520 +1.00% 33 Gross Margin % is 1.44% as of Dec. 2025, which is 93% below its 10-year median of 20.56. GuruFocus rates HKSE:01520 with a GF Score™ of 33/100 and a GF Value™ of HK$0.63 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,027 Manufacturing - Apparel & Accessories companies, Virtual Mind Holding Co ranks worse than 93.67% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Virtual Mind Holding Co's Gross Profit for the six months ended in Dec. 2025 was HK$1.8 Mil. Virtual Mind Holding Co's Revenue for the six months ended in Dec. 2025 was HK$126.6 Mil. Therefore, Virtual Mind Holding Co's Gross Margin % for the quarter that ended in Dec. 2025 was 1.44%.

Warning Sign:

Virtual Mind Holding Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -32.4%.


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

HKSE:01520' s Gross Margin % Range Over the Past 10 Years
Min: 3.18   Med: 20.56   Max: 29.37
Current: 3.18


During the past 13 years, the highest Gross Margin % of Virtual Mind Holding Co was 29.37%. The lowest was 3.18%. And the median was 20.56%.

HKSE:01520's Gross Margin % is ranked worse than
93.67% of 1027 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.65 vs HKSE:01520: 3.18

Virtual Mind Holding Co had a gross margin of 1.44% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Virtual Mind Holding Co was -32.40% per year.


Virtual Mind Holding Co  (HKSE:01520) 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

Virtual Mind Holding Co had a gross margin of 1.44% 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.


Virtual Mind Holding Co Gross Margin % Related Terms


Virtual Mind Holding Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Virtual Mind Holding Co'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.

Virtual Mind Holding Co Gross Margin % Chart

Virtual Mind Holding Co 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 27.68 15.69 16.94 6.97 3.18

Virtual Mind Holding Co 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 14.64 18.45 3.52 12.67 1.44

HKSE:01520 vs RL, LEVI, VFC: Gross Margin % Comparison

For the Apparel Manufacturing subindustry, Virtual Mind Holding Co'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.


Virtual Mind Holding Co Gross Margin % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Virtual Mind Holding Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Virtual Mind Holding Co's Gross Margin % falls into.


HKSE:01520
33GF Score
Virtual Mind Holding Co Ltd HKSE:01520
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Virtual Mind Holding Co Gross Margin % Calculation

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

Virtual Mind Holding Co'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 )
=4.8 / 149.734
=(Revenue - Cost of Goods Sold) / Revenue
=(149.734 - 144.978) / 149.734
=3.18 %

Virtual Mind Holding Co'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 )
=1.8 / 126.612
=(Revenue - Cost of Goods Sold) / Revenue
=(126.612 - 124.785) / 126.612
=1.44 %

* 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 1.44% mean?
Virtual Mind Holding Co (HKSE:01520) has a Gross Margin % of 1.44% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Virtual Mind Holding Co and its competitors. This is 93% below median its historical median of 20.56. Over the past decade, Virtual Mind Holding Co's Gross Margin % has ranged from 3.18 to 29.37. According to the industry distribution chart, Virtual Mind Holding Co ranks #962 out of 1027 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 93.7%.
Is Virtual Mind Holding Co's Gross Margin % too high?
Virtual Mind Holding Co's current Gross Margin % of 1.44% is 93% below median its 10-year median of 20.56. Over the past 10 years, this metric has ranged from a low of 3.18 to a high of 29.37. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.65. Virtual Mind Holding Co's value of 1.44% is 95% below this industry median. Based on the distribution chart, Virtual Mind Holding Co ranks #962 out of 1027 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Virtual Mind Holding Co has a GF Score™ of 33/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Virtual Mind Holding Co's Gross Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Virtual Mind Holding Co ranks #962 out of 1027 companies for Gross Margin %. This places Virtual Mind Holding Co in the lower half of its industry. The industry median Gross Margin % is 28.65. Virtual Mind Holding Co's value of 1.44% is 95% below this benchmark. Historically, Virtual Mind Holding Co's own Gross Margin % has ranged from 3.18 to 29.37 over the past decade. While the company's 10-year median is 20.56 vs. the industry median of 28.65, Virtual Mind Holding Co 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 a Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.65, based on 1,027 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. Virtual Mind Holding Co's current Gross Margin % of 1.44% is 95% 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 Virtual Mind Holding Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virtual Mind Holding Co's current Gross Margin % is 1.44%, which is 93% below median its own 10-year median of 20.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virtual Mind Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Virtual Mind Holding Co (HKSE:01520) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.63, compared to a current price of HK$0.51 — trading 19.8% below its estimated fair value. The current Gross Margin % is 1.44%, which is 93% below median its 10-year median of 20.56 and 95% below the Manufacturing - Apparel & Accessories industry median of 28.65. Virtual Mind Holding Co's overall GF Score™ is 33/100 with 4 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 Virtual Mind Holding Co (HKSE:01520), the current Gross Margin % is 1.44% 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 Virtual Mind Holding Co (HKSE:01520) Overvalued in 2026?

Based on GuruFocus' analysis, Virtual Mind Holding Co stock appears to be undervalued. The current stock price of HK$0.51 is trading 19.8% below its estimated GF Value™ of HK$0.63. GuruFocus considers Virtual Mind Holding Co to be Modestly Undervalued.

Key valuation signals for HKSE:01520:

  • Gross Margin %: 1.44% (93% below median its 10-year median of 20.56)
  • GF Value™: HK$0.63 vs. price of HK$0.51 (19.8% below fair value)
  • GF Score™: 33/100 with 4 warning signs
  • Industry Position: 95% below the Manufacturing - Apparel & Accessories median (#962 of 1027)

No single metric tells the full story. See the HKSE:01520 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Virtual Mind Holding Co Business Description

Address 538 Castle Peak Road, Room 2511-15, 25th Floor, Peninsula Tower, Cheung Sha Wan, Kowloon, Hong Kong, HKG
Virtual Mind Holding Co Ltd is engaged in designing, manufacturing, and trading apparel, providing money lending services, and selling trendy cultural, game, and other products. The company's segments include Design, manufacturing and trading of apparel, Provision for money lending services, and Sale of trendy cultural, game, and other products. The majority of the revenue is derived from the Sale of trendy cultural, game, and other products. Geographically, it operates in the PRC, which derives the majority of the revenue, and Hong Kong.
33GF Score

Get the complete analysis for HKSE:01520

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

HK$0.51
Price
HK$0.63
GF Value