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Lanzhou LS Heavy Equipment Co (SHSE:603169) Gross Margin % : 9.86% (As of Mar. 2025)


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What is Lanzhou LS Heavy Equipment Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lanzhou LS Heavy Equipment Co's Gross Profit for the three months ended in Mar. 2025 was ¥139 Mil. Lanzhou LS Heavy Equipment Co's Revenue for the three months ended in Mar. 2025 was ¥1,412 Mil. Therefore, Lanzhou LS Heavy Equipment Co's Gross Margin % for the quarter that ended in Mar. 2025 was 9.86%.


The historical rank and industry rank for Lanzhou LS Heavy Equipment Co's Gross Margin % or its related term are showing as below:

SHSE:603169' s Gross Margin % Range Over the Past 10 Years
Min: -14.85   Med: 15   Max: 45.36
Current: 13.75


During the past 13 years, the highest Gross Margin % of Lanzhou LS Heavy Equipment Co was 45.36%. The lowest was -14.85%. And the median was 15.00%.

SHSE:603169's Gross Margin % is ranked worse than
80.47% of 2950 companies
in the Industrial Products industry
Industry Median: 26.645 vs SHSE:603169: 13.75

Lanzhou LS Heavy Equipment Co had a gross margin of 9.86% for the quarter that ended in Mar. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lanzhou LS Heavy Equipment Co was 1.40% per year.


Lanzhou LS Heavy Equipment Co Gross Margin % Historical Data

The historical data trend for Lanzhou LS Heavy Equipment 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.

* Premium members only.

Lanzhou LS Heavy Equipment Co Gross Margin % Chart

Lanzhou LS Heavy Equipment Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.60 16.83 14.00 15.14 14.86

Lanzhou LS Heavy Equipment Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 14.78 12.13 15.29 16.73 9.86

Competitive Comparison of Lanzhou LS Heavy Equipment Co's Gross Margin %

For the Specialty Industrial Machinery subindustry, Lanzhou LS Heavy Equipment 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.


Lanzhou LS Heavy Equipment Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Lanzhou LS Heavy Equipment Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lanzhou LS Heavy Equipment Co's Gross Margin % falls into.


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Lanzhou LS Heavy Equipment Co Gross Margin % Calculation

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

Lanzhou LS Heavy Equipment Co's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=860.7 / 5790.667
=(Revenue - Cost of Goods Sold) / Revenue
=(5790.667 - 4930.004) / 5790.667
=14.86 %

Lanzhou LS Heavy Equipment Co's Gross Margin for the quarter that ended in Mar. 2025 is calculated as


Gross Margin % (Q: Mar. 2025 )=Gross Profit (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=139.3 / 1412.164
=(Revenue - Cost of Goods Sold) / Revenue
=(1412.164 - 1272.878) / 1412.164
=9.86 %

* 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.


Lanzhou LS Heavy Equipment Co  (SHSE:603169) 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

Lanzhou LS Heavy Equipment Co had a gross margin of 9.86% for the quarter that ended in Mar. 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.


Lanzhou LS Heavy Equipment Co Gross Margin % Related Terms

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Lanzhou LS Heavy Equipment Co Business Description

Traded in Other Exchanges
N/A
Address
No. 528, West Section of Huanghe Avenue, Lanzhou New District, Gansu Province, Lanzhou, CHN, 730087
Lanzhou LS Heavy Equipment Co Ltd is a China-based company. It is engaged in the manufacturing of pressure vessels in the energy industry. The firm operates through two business divisions including equipment manufacturing business and petrochemical engineering general contracting. The equipment manufacturing business is responsible for collecting information, obtaining contract orders through bidding and negotiation, and design department responsible department. It caters its services to energy industry such as refining, chemical, coal chemical, nuclear power, and biomedicine. Its product offerings include nuclear products, pressure separators, coal chemical equipment, tanks, hydrogenation reactors, and threaded locking ring type heat exchangers.

Lanzhou LS Heavy Equipment Co Headlines

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