Zhonggan Communication (Group) Holdings (HKSE:02545) Gross Margin %: 14.08% (As of Dec. 2025) — 27% Below Median

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HKSE:02545 Zhonggan Communication (Group) Holdings Ltd HKSE:02545
12 GF Score
Price HK$0.43
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What is Zhonggan Communication (Group) Holdings Gross Margin %?

Zhonggan Communication (Group) Holdings HKSE:02545 12 Gross Margin % is 14.08% as of Dec. 2025, which is 27% below its 10-year median of 19.28. GuruFocus rates HKSE:02545 with a GF Score™ of 12/100. The stock has 9 warning signs investors should review. Among 344 Telecommunication Services companies, Zhonggan Communication (Group) Holdings ranks worse than 90.99% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Zhonggan Communication (Group) Holdings's Gross Profit for the six months ended in Dec. 2025 was HK$46.8 Mil. Zhonggan Communication (Group) Holdings's Revenue for the six months ended in Dec. 2025 was HK$332.1 Mil. Therefore, Zhonggan Communication (Group) Holdings's Gross Margin % for the quarter that ended in Dec. 2025 was 14.08%.


The historical rank and industry rank for Zhonggan Communication (Group) Holdings's Gross Margin % or its related term are showing as below:

HKSE:02545' s Gross Margin % Range Over the Past 10 Years
Min: 14.88   Med: 19.28   Max: 25.09
Current: 14.88


During the past 5 years, the highest Gross Margin % of Zhonggan Communication (Group) Holdings was 25.09%. The lowest was 14.88%. And the median was 19.28%.

HKSE:02545's Gross Margin % is ranked worse than
90.99% of 344 companies
in the Telecommunication Services industry
Industry Median: 51.2 vs HKSE:02545: 14.88

Zhonggan Communication (Group) Holdings had a gross margin of 14.08% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Zhonggan Communication (Group) Holdings was 0.00% per year.


Zhonggan Communication (Group) Holdings  (HKSE:02545) 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

Zhonggan Communication (Group) Holdings had a gross margin of 14.08% 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.


Zhonggan Communication (Group) Holdings Gross Margin % Related Terms


Zhonggan Communication (Group) Holdings Gross Margin % Historical Data

* Premium members only.

The historical data trend for Zhonggan Communication (Group) 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.

Zhonggan Communication (Group) Holdings Gross Margin % Chart

Zhonggan Communication (Group) Holdings Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
19.03 25.09 24.51 19.28 14.89

Zhonggan Communication (Group) Holdings Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % Get a 7-Day Free Trial 24.50 21.63 17.49 16.41 14.08

HKSE:02545 vs VZ, TMUS, T: Gross Margin % Comparison

For the Telecom Services subindustry, Zhonggan Communication (Group) 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.


Zhonggan Communication (Group) Holdings Gross Margin % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Zhonggan Communication (Group) Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zhonggan Communication (Group) Holdings's Gross Margin % falls into.


HKSE:02545
12GF Score
Zhonggan Communication (Group) Holdings Ltd HKSE:02545
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Zhonggan Communication (Group) Holdings Gross Margin % Calculation

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

Zhonggan Communication (Group) Holdings'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 )
=75.7 / 508.484
=(Revenue - Cost of Goods Sold) / Revenue
=(508.484 - 432.771) / 508.484
=14.89 %

Zhonggan Communication (Group) Holdings'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 )
=46.8 / 332.072
=(Revenue - Cost of Goods Sold) / Revenue
=(332.072 - 285.307) / 332.072
=14.08 %

* 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 14.08% mean?
Zhonggan Communication (Group) Holdings (HKSE:02545) has a Gross Margin % of 14.08% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhonggan Communication (Group) Holdings and its competitors. This is 27% below median its historical median of 19.28. Over the past decade, Zhonggan Communication (Group) Holdings' Gross Margin % has ranged from 14.88 to 25.09. According to the industry distribution chart, Zhonggan Communication (Group) Holdings ranks #313 out of 344 companies in the Telecommunication Services industry, placing it in the top 91%.
Is Zhonggan Communication (Group) Holdings' Gross Margin % too high?
Zhonggan Communication (Group) Holdings' current Gross Margin % of 14.08% is 27% below median its 10-year median of 19.28. Over the past 10 years, this metric has ranged from a low of 14.88 to a high of 25.09. The Telecommunication Services industry median Gross Margin % is 51.20. Zhonggan Communication (Group) Holdings' value of 14.08% is 72.5% below this industry median. Based on the distribution chart, Zhonggan Communication (Group) Holdings ranks #313 out of 344 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Zhonggan Communication (Group) Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Zhonggan Communication (Group) Holdings' Gross Margin % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Zhonggan Communication (Group) Holdings ranks #313 out of 344 companies for Gross Margin %. This places Zhonggan Communication (Group) Holdings in the lower half of its industry. The industry median Gross Margin % is 51.20. Zhonggan Communication (Group) Holdings' value of 14.08% is 72.5% below this benchmark. Historically, Zhonggan Communication (Group) Holdings' own Gross Margin % has ranged from 14.88 to 25.09 over the past decade. While the company's 10-year median is 19.28 vs. the industry median of 51.20, Zhonggan Communication (Group) Holdings 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.20, based on 344 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. Zhonggan Communication (Group) Holdings's current Gross Margin % of 14.08% is 72.5% 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 Zhonggan Communication (Group) Holdings and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhonggan Communication (Group) Holdings's current Gross Margin % is 14.08%, which is 27% below median its own 10-year median of 19.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhonggan Communication (Group) Holdings stock overvalued right now?
Zhonggan Communication (Group) Holdings (HKSE:02545) has a current Gross Margin % of 14.08%. The current Gross Margin % is 14.08%, which is 27% below median its 10-year median of 19.28 and 72.5% below the Telecommunication Services industry median of 51.20. Zhonggan Communication (Group) Holdings' overall GF Score™ is 12/100 with 9 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 Zhonggan Communication (Group) Holdings (HKSE:02545), the current Gross Margin % is 14.08% 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.

Zhonggan Communication (Group) Holdings Business Description

Address 2799 Tianxiang Avenue, Room 101, Block 99, Nanchang Jiahai Industrial Park, Jiangxi Province, Nanchang High-tech Industrial Development Zone, Nanchang, CHN
Zhonggan Communication (Group) Holdings Ltd is an integrated service provider and software developer in China. It focuses on the provision of Telecommunications Infrastructure Services and Digitalisation Solution Services. Telecommunications Infrastructure Services comprises infrastructure Construction Services and Infrastructure Maintenance Services. Digitalisation Solution Services comprise Integrated Solution Services, System Maintenance Services, and Software Solution Services. Key revenue is generated from Telecommunications Infrastructure Services.
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