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HKSE:01956's Gross Margin % is ranked better than 62.44% of 2689
companies
in the Software industry
Industry Median: 40.69
vs HKSE:01956: 51.23
Beijing Zhongke WengeAI Science and Technology Co had a gross margin of 51.23% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Beijing Zhongke WengeAI Science and Technology Co (HKSE:01956) 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
Beijing Zhongke WengeAI Science and Technology Co had a gross margin of 51.23% for the quarter that ended in Dec. 2025 => 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.
Beijing Zhongke WengeAI Science and Technology Co Gross Margin % Related Terms
Beijing Zhongke WengeAI Science and Technology Co Gross Margin % Historical Data
* 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.
Beijing Zhongke WengeAI Science and Technology Co Gross Margin % Chart
Beijing Zhongke WengeAI Science and Technology Co Annual Data
Trend
Dec23
Dec24
Dec25
Gross Margin %
44.02
50.40
51.23
Beijing Zhongke WengeAI Science and Technology Co Semi-Annual Data
Dec23
Dec24
Dec25
Gross Margin %
44.02
50.40
51.23
HKSE:01956 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Beijing Zhongke WengeAI Science and Technology 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.
Beijing Zhongke WengeAI Science and Technology Co Gross Margin % vs Software Industry
* 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.
Beijing Zhongke WengeAI Science and Technology Co (HKSE:01956) has a Gross Margin % of 51.23% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Beijing Zhongke WengeAI Science and Technology Co and its competitors. This is near median its historical median of 50.40. Over the past decade, Beijing Zhongke WengeAI Science and Technology Co's Gross Margin % has ranged from 44.02 to 51.23. According to the industry distribution chart, Beijing Zhongke WengeAI Science and Technology Co ranks #1010 out of 2689 companies in the Software industry, placing it in the top 37.6%.
Is Beijing Zhongke WengeAI Science and Technology Co's Gross Margin % too high?
Beijing Zhongke WengeAI Science and Technology Co's current Gross Margin % of 51.23% is near median its 10-year median of 50.40. Over the past 10 years, this metric has ranged from a low of 44.02 to a high of 51.23. The Software industry median Gross Margin % is 40.69. Beijing Zhongke WengeAI Science and Technology Co's value of 51.23% is 25.9% above this industry median. Based on the distribution chart, Beijing Zhongke WengeAI Science and Technology Co ranks #1010 out of 2689 companies in the Software industry, which is above the industry midpoint. Overall, Beijing Zhongke WengeAI Science and Technology Co has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Beijing Zhongke WengeAI Science and Technology Co's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Beijing Zhongke WengeAI Science and Technology Co ranks #1010 out of 2689 companies for Gross Margin %. This puts Beijing Zhongke WengeAI Science and Technology Co in the upper half of its industry. The industry median Gross Margin % is 40.69. Beijing Zhongke WengeAI Science and Technology Co's value of 51.23% is 25.9% above this benchmark. Historically, Beijing Zhongke WengeAI Science and Technology Co's own Gross Margin % has ranged from 44.02 to 51.23 over the past decade. While the company's 10-year median is 50.40 vs. the industry median of 40.69, Beijing Zhongke WengeAI Science and Technology Co has consistently been above 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 Software company?
The median Gross Margin % among Software companies is 40.69, based on 2,689 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. Beijing Zhongke WengeAI Science and Technology Co's current Gross Margin % of 51.23% is 25.9% above 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 Beijing Zhongke WengeAI Science and Technology Co and its competitors. For the Software industry, the median Gross Margin % is 40.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Zhongke WengeAI Science and Technology Co's current Gross Margin % is 51.23%, which is near median its own 10-year median of 50.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Zhongke WengeAI Science and Technology Co stock overvalued right now?
Beijing Zhongke WengeAI Science and Technology Co (HKSE:01956) has a current Gross Margin % of 51.23%. The current Gross Margin % is 51.23%, which is near median its 10-year median of 50.40 and 25.9% above the Software industry median of 40.69. Beijing Zhongke WengeAI Science and Technology Co's overall GF Score™ is 10/100 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 Beijing Zhongke WengeAI Science and Technology Co (HKSE:01956), the current Gross Margin % is 51.23% 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.
Beijing Zhongke WengeAI Science and Technology Co Ltd is an AI technology and service provider in China, specializing in complex data analytics and AI-assisted decision-making. The company develops critical AI capabilities, offering a portfolio of full-stack AI services. Its services include data governance, domain knowledge management, large language and multimodal model development, decision automation, evaluation solutions, and low-code AI application development. The company provides AI-based solutions to organizations across sectors including public services, media and communications, and commercial enterprises. The majority of the company's revenue is derived from the provision of AI services to its clients in the Chinese Mainland.
10GF Score
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