Gaodi Holdings (HKSE:01676) Gross Margin % : 3.16% (As of Jun. 2023)

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What is Gaodi Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gaodi Holdings's Gross Profit for the six months ended in Jun. 2023 was HK$18.3 Mil. Gaodi Holdings's Revenue for the six months ended in Jun. 2023 was HK$579.9 Mil. Therefore, Gaodi Holdings's Gross Margin % for the quarter that ended in Jun. 2023 was 3.16%.

Warning Sign:

Gaodi Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -13.3%.

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

HKSE:01676' s Gross Margin % Range Over the Past 10 Years
Min: 3.16 Med: 24.34 Max: 25.64
Current: 3.16

During the past 8 years, the highest Gross Margin % of Gaodi Holdings was 25.64%. The lowest was 3.16%. And the median was 24.34%.

HKSE:01676's Gross Margin % is ranked worse than
93.86% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 25.085 vs HKSE:01676: 3.16

Gaodi Holdings had a gross margin of 3.16% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Gaodi Holdings was -13.30% per year.

Gaodi Holdings Gross Margin % Historical Data

The historical data trend for Gaodi 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.

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Gaodi Holdings Gross Margin % Chart

Gaodi Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Gross Margin %

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25.37

25.32

21.94

18.88

11.47

Gaodi Holdings Semi-Annual Data
	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Jun23
Gross Margin %	Get a 7-Day Free Trial											19.12	19.09	-0.48	3.04	3.16

Competitive Comparison of Gaodi Holdings's Gross Margin %

For the Packaged Foods subindustry, Gaodi 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.

Gaodi Holdings's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Gaodi Holdings's Gross Margin % distribution charts can be found below:

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

Gaodi Holdings Gross Margin % Calculation

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

Gaodi Holdings's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )	=	Gross Profit (A: Dec. 2021 )	/	Revenue (A: Dec. 2021 )
	=	12.1	/	105.924
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(105.924 - 93.779)	/	105.924
	=	11.47 %

Gaodi Holdings's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	18.3	/	579.93
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(579.93 - 561.616)	/	579.93
	=	3.16 %

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.

Gaodi Holdings (HKSE:01676) 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

Gaodi Holdings had a gross margin of 3.16% for the quarter that ended in Jun. 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.

Gaodi Holdings Gross Margin % Related Terms

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Gaodi Holdings (HKSE:01676) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Gaodi Holdings Ltd (HKSE:01676) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

5th Floor, No. 5 Factory Meixi Road, Huandong Waters Tongon District, Huli Industrial Park, Fujian Province, Xiamen, CHN

Website

http://www.chinashenghaigroup.com

China Shenghai Group Ltd is engaged in the packaging and sales of seafood products and procurement and sales of fast moving consumer goods and others to the supermarket chains and convenience stores located across China. The company's products are categorized into dried seafood, algae and fungi, seafood snack and frozen seafood products. It has also developed new business on FMCG and cosmetics in Hong Kong and China. Its operating segments include packaging and sales of marine products segment and all other segment. It derives majority of the revenue from packaging and sales of marine products segment.

Gaodi Holdings (HKSE:01676) Headlines

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