Chuanglian Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.3%.
The historical rank and industry rank for Chuanglian Holdings's Gross Margin % or its related term are showing as below:
HKSE:02371'
s Gross Margin % Range Over the Past 10 Years
Min: 21.72 Med: 56.48 Max: 74.23
Current: 21.72
During the past 13 years, the highestGross Margin % of Chuanglian Holdings was 74.23%. The lowest was 21.72%. And the median was 56.48%.
HKSE:02371's Gross Margin % is ranked worse than 90.32% of 248
companies
in the Education industry
Industry Median: 47.63
vs HKSE:02371: 21.72
Chuanglian Holdings had a gross margin of 21.91% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Chuanglian Holdings was -3.30% per year.
Chuanglian Holdings Gross Margin % Historical Data
The historical data trend for Chuanglian 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.
Competitive Comparison of Chuanglian Holdings's Gross Margin %
For the Education & Training Services subindustry, Chuanglian 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.
Chuanglian Holdings's Gross Margin % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Chuanglian Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chuanglian Holdings's Gross Margin % falls into.
* 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.
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
Chuanglian Holdings had a gross margin of 21.91% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
Chuanglian Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Chuanglian Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chuanglian Holdings Ltd is an investment holding company. Along with its subsidiaries, it operates in the following reportable segments; Securities trading, Educational consultancy and online training and education, and Financial services. Maximum revenue is derived from its Financial services segment which provides insurance brokerage services, money lending services, investment advisory services, and finance leasing services. The Securities trading segment is engaged in trading financial assets at fair value through profit or loss; and the Education segment provides educational consultancy, online training, education, and on-site training services. Geographically, it derives key revenue from the People's Republic of China and rest from Hong Kong and other regions.
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