China 21st Century Education Group (HKSE:01598) Gross Margin %: 42.82% (As of Jun. 2024)

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HKSE:01598 China 21st Century Education Group Ltd HKSE:01598
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What is China 21st Century Education Group Gross Margin %?

China 21st Century Education Group HKSE:01598 4 Gross Margin % is 42.82% as of Jun. 2024. GuruFocus rates HKSE:01598 with a GF Score™ of 4/100.

Gross Margin % is calculated as gross profit divided by its revenue. China 21st Century Education Group's Gross Profit for the six months ended in Jun. 2024 was HK$111.2 Mil. China 21st Century Education Group's Revenue for the six months ended in Jun. 2024 was HK$259.8 Mil. Therefore, China 21st Century Education Group's Gross Margin % for the quarter that ended in Jun. 2024 was 42.82%.


The historical rank and industry rank for China 21st Century Education Group's Gross Margin % or its related term are showing as below:


HKSE:01598's Gross Margin % is not ranked *
in the Education industry.
Industry Median: 47.93
* Ranked among companies with meaningful Gross Margin % only.

China 21st Century Education Group had a gross margin of 42.82% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China 21st Century Education Group was 0.00% per year.


China 21st Century Education Group  (HKSE:01598) 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 21st Century Education Group had a gross margin of 42.82% for the quarter that ended in Jun. 2024 => 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.


China 21st Century Education Group Gross Margin % Related Terms


China 21st Century Education Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for China 21st Century Education 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 21st Century Education Group Gross Margin % Chart

China 21st Century Education Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 51.79 48.18 41.07 46.93 39.27

China 21st Century Education Group Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 49.61 44.61 39.66 38.94 42.82

HKSE:01598 vs EDU, LRN, TAL: Gross Margin % Comparison

For the Education & Training Services subindustry, China 21st Century Education 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 21st Century Education Group Gross Margin % vs Education Industry

For the Education industry and Consumer Defensive sector, China 21st Century Education Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China 21st Century Education Group's Gross Margin % falls into.


HKSE:01598
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China 21st Century Education Group Ltd HKSE:01598
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China 21st Century Education Group Gross Margin % Calculation

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

China 21st Century Education 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 )
=180.4 / 459.418
=(Revenue - Cost of Goods Sold) / Revenue
=(459.418 - 278.989) / 459.418
=39.27 %

China 21st Century Education Group's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=111.2 / 259.796
=(Revenue - Cost of Goods Sold) / Revenue
=(259.796 - 148.549) / 259.796
=42.82 %

* 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 42.82% mean?
China 21st Century Education Group (HKSE:01598) has a Gross Margin % of 42.82% as of Jun. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on China 21st Century Education Group and its competitors.
Is China 21st Century Education Group's Gross Margin % too high?
China 21st Century Education Group's current Gross Margin % is 42.82%. The Education industry median Gross Margin % is 47.93. China 21st Century Education Group's value of 42.82% is 10.7% below this industry median. Overall, China 21st Century Education Group has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does China 21st Century Education Group's Gross Margin % compare to EDU and LRN?
China 21st Century Education Group's Gross Margin % of 42.82% can be compared against companies in the Education industry. The industry median Gross Margin % is 47.93. China 21st Century Education Group's value of 42.82% is 10.7% below this benchmark. 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 Education company?
The median Gross Margin % among Education companies is 47.93, based on 244 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 21st Century Education Group's current Gross Margin % of 42.82% is 10.7% 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 21st Century Education Group and its competitors. For the Education industry, the median Gross Margin % is 47.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China 21st Century Education Group's current Gross Margin % is 42.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China 21st Century Education Group stock overvalued right now?
China 21st Century Education Group (HKSE:01598) has a current Gross Margin % of 42.82%. The current Gross Margin % is 42.82% and 10.7% below the Education industry median of 47.93. China 21st Century Education Group's overall GF Score™ is 4/100. 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 21st Century Education Group (HKSE:01598), the current Gross Margin % is 42.82% as of Jun. 2024. 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.

China 21st Century Education Group Business Description

Address Zhonghai Plaza, 15th Floor, South Tower, 8 Guanghua Dongli, Chaoyang District, Beijing, CHN, 050000
China 21st Century Education Group Ltd is a large well-established private education service provider based in the Beijing-Tianjin-Hebei region. It provides clients with customized services and solutions based on individual demand, including the preschool students in its kindergartens, the high school students in its high schools as well as the junior college, technical secondary school and continuing education students enrolled in its colleges. The group operated within one geographical segment because all of its revenue was generated in Mainland China.
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