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Central New Energy Holding Group (HKSE:01735) Gross Margin % : 1.71% (As of Jun. 2024)


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What is Central New Energy Holding Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Central New Energy Holding Group's Gross Profit for the six months ended in Jun. 2024 was HK$43 Mil. Central New Energy Holding Group's Revenue for the six months ended in Jun. 2024 was HK$2,532 Mil. Therefore, Central New Energy Holding Group's Gross Margin % for the quarter that ended in Jun. 2024 was 1.71%.

Warning Sign:

Central New Energy Holding Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -25.9%.


The historical rank and industry rank for Central New Energy Holding Group's Gross Margin % or its related term are showing as below:

HKSE:01735' s Gross Margin % Range Over the Past 10 Years
Min: 1.93   Med: 4.77   Max: 26.72
Current: 2.12


During the past 10 years, the highest Gross Margin % of Central New Energy Holding Group was 26.72%. The lowest was 1.93%. And the median was 4.77%.

HKSE:01735's Gross Margin % is ranked worse than
94.15% of 1675 companies
in the Construction industry
Industry Median: 20.18 vs HKSE:01735: 2.12

Central New Energy Holding Group had a gross margin of 1.71% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Central New Energy Holding Group was -25.90% per year.


Central New Energy Holding Group Gross Margin % Historical Data

The historical data trend for Central New Energy Holding 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.

* Premium members only.

Central New Energy Holding Group Gross Margin % Chart

Central New Energy Holding Group Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.95 4.77 1.93 4.29 2.12

Central New Energy Holding Group Semi-Annual Data
Mar15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 1.65 4.01 4.49 1.71 2.42

Competitive Comparison of Central New Energy Holding Group's Gross Margin %

For the Engineering & Construction subindustry, Central New Energy Holding 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.


Central New Energy Holding Group's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Central New Energy Holding Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Central New Energy Holding Group's Gross Margin % falls into.


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Central New Energy Holding Group Gross Margin % Calculation

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

Central New Energy Holding 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 )
=172.8 / 4028.299
=(Revenue - Cost of Goods Sold) / Revenue
=(4028.299 - 3855.486) / 4028.299
=4.29 %

Central New Energy Holding 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 )
=43.2 / 2531.889
=(Revenue - Cost of Goods Sold) / Revenue
=(2531.889 - 2488.688) / 2531.889
=1.71 %

* 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.


Central New Energy Holding Group  (HKSE:01735) 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

Central New Energy Holding Group had a gross margin of 1.71% for the quarter that ended in Jun. 2024 => 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.


Central New Energy Holding Group Gross Margin % Related Terms

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Central New Energy Holding Group Business Description

Traded in Other Exchanges
N/A
Address
191 Java Road, 21th Floor, Unit 2102–03, 10–12, Central K.Wah Centre, North Point, Hong Kong, HKG
Central New Energy Holding Group Ltd, formerly Central Holding Group Co Ltd is an investment holding company. The company's operating segment includes Green Building and construction related business, superstructure building works, and construction materials supplies; which provide piling works, excavation and lateral support works, and pile cap construction and building works in relation to the parts of the structure above the ground level and supplying of construction materials; F&B supply chain; Health and wellness; New energy and EPC; and Smart energy management services. The company's geographical segments include Hong Kong and China, of which China accounts for the majority of its revenue.
Executives
Central Culture Resource Group Limited 2201 Interest of corporation controlled by you
Huatai Securities Co., Ltd. 2201 Interest of corporation controlled by you
Yu Zhuyun 2201 Interest of corporation controlled by you

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