Jiangsu Innovative Ecological New Materials (HKSE:02116) Gross Margin %: 18.28% (As of Dec. 2025) — 33% Below Median

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HKSE:02116 Jiangsu Innovative Ecological New Materials Ltd HKSE:02116
61 GF Score
Price HK$0.71
GF Value HK$0.43
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Jiangsu Innovative Ecological New Materials Gross Margin %?

Jiangsu Innovative Ecological New Materials HKSE:02116 61 Gross Margin % is 18.28% as of Dec. 2025, which is 33% below its 10-year median of 27.13. GuruFocus rates HKSE:02116 with a GF Score™ of 61/100 and a GF Value™ of HK$0.43 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,562 Chemicals companies, Jiangsu Innovative Ecological New Materials ranks worse than 53.14% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Jiangsu Innovative Ecological New Materials's Gross Profit for the six months ended in Dec. 2025 was HK$23.5 Mil. Jiangsu Innovative Ecological New Materials's Revenue for the six months ended in Dec. 2025 was HK$128.4 Mil. Therefore, Jiangsu Innovative Ecological New Materials's Gross Margin % for the quarter that ended in Dec. 2025 was 18.28%.

Warning Sign:

Jiangsu Innovative Ecological New Materials Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


The historical rank and industry rank for Jiangsu Innovative Ecological New Materials's Gross Margin % or its related term are showing as below:

HKSE:02116' s Gross Margin % Range Over the Past 10 Years
Min: 20.58   Med: 27.13   Max: 45.07
Current: 22.6


During the past 12 years, the highest Gross Margin % of Jiangsu Innovative Ecological New Materials was 45.07%. The lowest was 20.58%. And the median was 27.13%.

HKSE:02116's Gross Margin % is ranked worse than
53.14% of 1562 companies
in the Chemicals industry
Industry Median: 23.66 vs HKSE:02116: 22.60

Jiangsu Innovative Ecological New Materials had a gross margin of 18.28% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Jiangsu Innovative Ecological New Materials was -1.60% per year.


Jiangsu Innovative Ecological New Materials  (HKSE:02116) 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

Jiangsu Innovative Ecological New Materials had a gross margin of 18.28% 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.


Jiangsu Innovative Ecological New Materials Gross Margin % Related Terms


Jiangsu Innovative Ecological New Materials Gross Margin % Historical Data

* Premium members only.

The historical data trend for Jiangsu Innovative Ecological New Materials'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.

Jiangsu Innovative Ecological New Materials Gross Margin % Chart

Jiangsu Innovative Ecological New Materials 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 20.58 20.95 26.17 22.64 22.62

Jiangsu Innovative Ecological New Materials Semi-Annual Data
Dec15 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 27.14 27.53 19.65 28.39 18.28

HKSE:02116 vs LIN, SHW, ECL: Gross Margin % Comparison

For the Specialty Chemicals subindustry, Jiangsu Innovative Ecological New Materials'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.


Jiangsu Innovative Ecological New Materials Gross Margin % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Jiangsu Innovative Ecological New Materials's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Jiangsu Innovative Ecological New Materials's Gross Margin % falls into.


HKSE:02116
61GF Score
Jiangsu Innovative Ecological New Materials Ltd HKSE:02116
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Jiangsu Innovative Ecological New Materials Gross Margin % Calculation

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

Jiangsu Innovative Ecological New Materials'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 )
=51 / 225.234
=(Revenue - Cost of Goods Sold) / Revenue
=(225.234 - 174.276) / 225.234
=22.62 %

Jiangsu Innovative Ecological New Materials'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 )
=23.5 / 128.404
=(Revenue - Cost of Goods Sold) / Revenue
=(128.404 - 104.937) / 128.404
=18.28 %

* 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 18.28% mean?
Jiangsu Innovative Ecological New Materials (HKSE:02116) has a Gross Margin % of 18.28% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Jiangsu Innovative Ecological New Materials and its competitors. This is 33% below median its historical median of 27.13. Over the past decade, Jiangsu Innovative Ecological New Materials' Gross Margin % has ranged from 20.58 to 45.07. According to the industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #830 out of 1562 companies in the Chemicals industry, placing it in the top 53.1%.
Is Jiangsu Innovative Ecological New Materials' Gross Margin % too high?
Jiangsu Innovative Ecological New Materials' current Gross Margin % of 18.28% is 33% below median its 10-year median of 27.13. Over the past 10 years, this metric has ranged from a low of 20.58 to a high of 45.07. The Chemicals industry median Gross Margin % is 23.66. Jiangsu Innovative Ecological New Materials' value of 18.28% is 22.7% below this industry median. Based on the distribution chart, Jiangsu Innovative Ecological New Materials ranks #830 out of 1562 companies in the Chemicals industry, which is below the industry midpoint. Overall, Jiangsu Innovative Ecological New Materials has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Innovative Ecological New Materials' Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #830 out of 1562 companies for Gross Margin %. This places Jiangsu Innovative Ecological New Materials in the lower half of its industry. The industry median Gross Margin % is 23.66. Jiangsu Innovative Ecological New Materials' value of 18.28% is 22.7% below this benchmark. Historically, Jiangsu Innovative Ecological New Materials' own Gross Margin % has ranged from 20.58 to 45.07 over the past decade. While the company's 10-year median is 27.13 vs. the industry median of 23.66, Jiangsu Innovative Ecological New Materials 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.66, based on 1,562 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. Jiangsu Innovative Ecological New Materials's current Gross Margin % of 18.28% is 22.7% 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 Jiangsu Innovative Ecological New Materials and its competitors. For the Chemicals industry, the median Gross Margin % is 23.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Innovative Ecological New Materials's current Gross Margin % is 18.28%, which is 33% below median its own 10-year median of 27.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Innovative Ecological New Materials stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials (HKSE:02116) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.43, compared to a current price of HK$0.71 — trading 65.1% above its estimated fair value. The current Gross Margin % is 18.28%, which is 33% below median its 10-year median of 27.13 and 22.7% below the Chemicals industry median of 23.66. Jiangsu Innovative Ecological New Materials' overall GF Score™ is 61/100 with 3 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 Jiangsu Innovative Ecological New Materials (HKSE:02116), the current Gross Margin % is 18.28% 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 Jiangsu Innovative Ecological New Materials (HKSE:02116) Overvalued in 2026?

Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials stock appears to be overvalued. The current stock price of HK$0.71 is trading 65.1% above its estimated GF Value™ of HK$0.43. GuruFocus considers Jiangsu Innovative Ecological New Materials to be Significantly Overvalued.

Key valuation signals for HKSE:02116:

  • Gross Margin %: 18.28% (33% below median its 10-year median of 27.13)
  • GF Value™: HK$0.43 vs. price of HK$0.71 (65.1% above fair value)
  • GF Score™: 61/100 with 3 warning signs
  • Industry Position: 22.7% below the Chemicals median (#830 of 1562)

No single metric tells the full story. See the HKSE:02116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Jiangsu Innovative Ecological New Materials Business Description

Address No. 16 West Kaixuan Road, Economic Development Zone, Jiangsu, Yixing, CHN
Jiangsu Innovative Ecological New Materials Ltd develops, manufactures, and markets oil refining agents. The firm produces refining additives, oil additives, and other products. It offers and generates revenue from oil refining agents and fuel additives with desulfurizing agents, lubricity improvers, and metal passivation. The majority of the firm's revenue is generated from the sales of oil refining agents from Mainland China. The company operates in a single segment, which is the sale of oil refining agents and fuel additives.
61GF Score

Get the complete analysis for HKSE:02116

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

HK$0.71
Price
HK$0.43
GF Value