Xuanzhu Biopharmaceutical Co (HKSE:02575) Gross Margin %: 68.37% (As of Dec. 2025) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:02575 Xuanzhu Biopharmaceutical Co Ltd HKSE:02575
11 GF Score
Price HK$12.88
! 1 Warning Sign
View Full Analysis

What is Xuanzhu Biopharmaceutical Co Gross Margin %?

Xuanzhu Biopharmaceutical Co HKSE:02575 +3.21% 11 Gross Margin % is 68.37% as of Dec. 2025, which is 6% above its 10-year median of 64.45. GuruFocus rates HKSE:02575 with a GF Score™ of 11/100. The stock has 1 warning sign investors should review. Among 940 Drug Manufacturers companies, Xuanzhu Biopharmaceutical Co ranks better than 75.53% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Xuanzhu Biopharmaceutical Co's Gross Profit for the six months ended in Dec. 2025 was HK$25.59 Mil. Xuanzhu Biopharmaceutical Co's Revenue for the six months ended in Dec. 2025 was HK$37.43 Mil. Therefore, Xuanzhu Biopharmaceutical Co's Gross Margin % for the quarter that ended in Dec. 2025 was 68.37%.


The historical rank and industry rank for Xuanzhu Biopharmaceutical Co's Gross Margin % or its related term are showing as below:

HKSE:02575' s Gross Margin % Range Over the Past 10 Years
Min: 54.8   Med: 64.45   Max: 68.75
Current: 64.48


During the past 3 years, the highest Gross Margin % of Xuanzhu Biopharmaceutical Co was 68.75%. The lowest was 54.80%. And the median was 64.45%.

HKSE:02575's Gross Margin % is ranked better than
75.53% of 940 companies
in the Drug Manufacturers industry
Industry Median: 48.35 vs HKSE:02575: 64.48

Xuanzhu Biopharmaceutical Co had a gross margin of 68.37% for the quarter that ended in Dec. 2025 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Xuanzhu Biopharmaceutical Co was 0.00% per year.


Xuanzhu Biopharmaceutical Co  (HKSE:02575) 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

Xuanzhu Biopharmaceutical Co had a gross margin of 68.37% 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.


Xuanzhu Biopharmaceutical Co Gross Margin % Related Terms


Xuanzhu Biopharmaceutical Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Xuanzhu Biopharmaceutical Co'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.

Xuanzhu Biopharmaceutical Co Gross Margin % Chart

Xuanzhu Biopharmaceutical Co Annual Data
Trend Dec23 Dec24 Dec25
Gross Margin %
68.75 54.80 64.45

Xuanzhu Biopharmaceutical Co Semi-Annual Data
Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % 0.00 45.04 65.94 57.04 68.37

HKSE:02575 vs ZTS: Gross Margin % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Xuanzhu Biopharmaceutical 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.


Xuanzhu Biopharmaceutical Co Gross Margin % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Xuanzhu Biopharmaceutical Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Xuanzhu Biopharmaceutical Co's Gross Margin % falls into.


HKSE:02575
11GF Score
Xuanzhu Biopharmaceutical Co Ltd HKSE:02575
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Xuanzhu Biopharmaceutical Co Gross Margin % Calculation

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

Xuanzhu Biopharmaceutical Co'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 )
=36.9 / 57.194
=(Revenue - Cost of Goods Sold) / Revenue
=(57.194 - 20.33) / 57.194
=64.45 %

Xuanzhu Biopharmaceutical Co'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 )
=25.6 / 37.427
=(Revenue - Cost of Goods Sold) / Revenue
=(37.427 - 11.838) / 37.427
=68.37 %

* 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 68.37% mean?
Xuanzhu Biopharmaceutical Co (HKSE:02575) has a Gross Margin % of 68.37% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Xuanzhu Biopharmaceutical Co and its competitors. This is near median its historical median of 64.45. Over the past decade, Xuanzhu Biopharmaceutical Co's Gross Margin % has ranged from 54.80 to 68.75. According to the industry distribution chart, Xuanzhu Biopharmaceutical Co ranks #230 out of 940 companies in the Drug Manufacturers industry, placing it in the top 24.5%.
Is Xuanzhu Biopharmaceutical Co's Gross Margin % too high?
Xuanzhu Biopharmaceutical Co's current Gross Margin % of 68.37% is near median its 10-year median of 64.45. Over the past 10 years, this metric has ranged from a low of 54.80 to a high of 68.75. The Drug Manufacturers industry median Gross Margin % is 48.35. Xuanzhu Biopharmaceutical Co's value of 68.37% is 41.4% above this industry median. Based on the distribution chart, Xuanzhu Biopharmaceutical Co ranks #230 out of 940 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Xuanzhu Biopharmaceutical Co has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Xuanzhu Biopharmaceutical Co's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Xuanzhu Biopharmaceutical Co ranks #230 out of 940 companies for Gross Margin %. This places Xuanzhu Biopharmaceutical Co in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.35. Xuanzhu Biopharmaceutical Co's value of 68.37% is 41.4% above this benchmark. Historically, Xuanzhu Biopharmaceutical Co's own Gross Margin % has ranged from 54.80 to 68.75 over the past decade. While the company's 10-year median is 64.45 vs. the industry median of 48.35, Xuanzhu Biopharmaceutical 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.35, based on 940 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. Xuanzhu Biopharmaceutical Co's current Gross Margin % of 68.37% is 41.4% 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 Xuanzhu Biopharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xuanzhu Biopharmaceutical Co's current Gross Margin % is 68.37%, which is near median its own 10-year median of 64.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xuanzhu Biopharmaceutical Co stock overvalued right now?
Xuanzhu Biopharmaceutical Co (HKSE:02575) has a current Gross Margin % of 68.37%. The current Gross Margin % is 68.37%, which is near median its 10-year median of 64.45 and 41.4% above the Drug Manufacturers industry median of 48.35. Xuanzhu Biopharmaceutical Co's overall GF Score™ is 11/100 with 1 warning sign 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 Xuanzhu Biopharmaceutical Co (HKSE:02575), the current Gross Margin % is 68.37% 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.

Xuanzhu Biopharmaceutical Co Business Description

Address Zhubang 2000 Business Center, 2107, Building 2, Balizhuang Xili, Chaoyang District, Beijing, CHN
Xuanzhu Biopharmaceutical Co Ltd is an innovation-driven biopharmaceutical company in China, leveraging its understanding of China's pharmaceutical industry and insights of its clinical needs to improve patient health and life. It has over ten drug assets under active development covering digestive diseases, oncology, and NASH. Its track record also includes the successful development of four drug candidates that were subsequently transferred and/or out-licensed to pharmaceutical companies. Its pipeline is staggered and complementary in structure, covering both validated targets with druggability as well as new mechanisms of action and drug modalities, established therapeutic areas such as oncology, and high-growth potential therapeutic areas such as NASH.
11GF Score

Get the complete analysis for HKSE:02575

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

HK$12.88
Price