Xuan Wu Cloud Technology Holdings (HKSE:02392) Gross Margin % : 13.85% (As of Dec. 2023)

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What is Xuan Wu Cloud Technology Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Xuan Wu Cloud Technology Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$114 Mil. Xuan Wu Cloud Technology Holdings's Revenue for the six months ended in Dec. 2023 was HK$822 Mil. Therefore, Xuan Wu Cloud Technology Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 13.85%.

Warning Sign:

Xuan Wu Cloud Technology Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -14.1%.

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

HKSE:02392' s Gross Margin % Range Over the Past 10 Years
Min: 15.97 Med: 23.88 Max: 35.75
Current: 15.97

During the past 6 years, the highest Gross Margin % of Xuan Wu Cloud Technology Holdings was 35.75%. The lowest was 15.97%. And the median was 23.88%.

HKSE:02392's Gross Margin % is ranked worse than
87.36% of 2634 companies
in the Software industry
Industry Median: 41.825 vs HKSE:02392: 15.97

Xuan Wu Cloud Technology Holdings had a gross margin of 13.85% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Xuan Wu Cloud Technology Holdings was -14.10% per year.

Xuan Wu Cloud Technology Holdings Gross Margin % Historical Data

The historical data trend for Xuan Wu Cloud Technology 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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Xuan Wu Cloud Technology Holdings Gross Margin % Chart

Xuan Wu Cloud Technology Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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32.77

24.32

23.43

21.63

15.97

Xuan Wu Cloud Technology Holdings Semi-Annual Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial				24.42	24.40	19.53	18.98	13.85

Competitive Comparison of Xuan Wu Cloud Technology Holdings's Gross Margin %

For the Software - Application subindustry, Xuan Wu Cloud Technology 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.

Xuan Wu Cloud Technology Holdings's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Xuan Wu Cloud Technology Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Xuan Wu Cloud Technology Holdings's Gross Margin % falls into.

Xuan Wu Cloud Technology Holdings Gross Margin % Calculation

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

Xuan Wu Cloud Technology Holdings'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 )
	=	223.8	/	1401.433
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1401.433 - 1177.592)	/	1401.433
	=	15.97 %

Xuan Wu Cloud Technology Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	113.8	/	821.77
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(821.77 - 707.975)	/	821.77
	=	13.85 %

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.

Xuan Wu Cloud Technology Holdings (HKSE:02392) 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

Xuan Wu Cloud Technology Holdings had a gross margin of 13.85% for the quarter that ended in Dec. 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.

Xuan Wu Cloud Technology Holdings Gross Margin % Related Terms

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Xuan Wu Cloud Technology Holdings (HKSE:02392) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Xuan Wu Cloud Technology Holdings Ltd (HKSE:02392) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

38 Haizhou Road, Room 904, 9th Floor, Haizhu District, Guangdong Province, Guangzhou, CHN

Website

https://www.wxchina.com

Xuan Wu Cloud Technology Holdings Ltd is an intelligent CRM services provider, providing CRM PaaS services and CRM SaaS services to clients. its CRM PaaS services mainly provide cPaaS to encapsulate messaging communication capabilities of the three telecommunication network operators for the customers to be integrated into the customer's business systems, thereby enabling the customers to access and utilize the communication capabilities as a service, and CRM SaaS services comprise of marketing cloud, sales cloud, and service cloud, which enable the Group to provide the customer with one-stop intelligent CRM services throughout their entire business cycle, from initial marketing to aftersales services.

Executives

Song Xiaohu	2201 Interest of corporation controlled by you
Bao Ya Ji Tuan Kong Gu You Xian Gong Si	2101 Beneficial owner
Zheng Hao Huan Qiu Kong Gu You Xian Gong Si	2101 Beneficial owner
Chen Yonghui	2201 Interest of corporation controlled by you
Shanghai Fosun Capital Investment Management Co., Ltd.
Guang Zhou Xuan Dong Tou Zi You Xian He Huo Qi Ye You Xian He Huo	2101 Beneficial owner
Shang Ying Huan Qiu You Xian Gong Si	2101 Beneficial owner
Hong Han Huan Qiu You Xian Gong Si	2101 Beneficial owner
Ge Ping	2501 Other
Shanghai Fosun Weishi Investment Management Co., Ltd.
Shanghai Fosun Industrial Investment Co., Ltd.
Shanghai Fosun High Technology (group) Co., Ltd.
Guo Guangchang
Fosun International Limited
Fosun International Holdings Ltd.

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