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Wuhan Xingtu Xinke Electronics Co (SHSE:688081) Gross Margin % : 70.80% (As of Sep. 2024)


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What is Wuhan Xingtu Xinke Electronics Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Wuhan Xingtu Xinke Electronics Co's Gross Profit for the three months ended in Sep. 2024 was ¥8.6 Mil. Wuhan Xingtu Xinke Electronics Co's Revenue for the three months ended in Sep. 2024 was ¥12.1 Mil. Therefore, Wuhan Xingtu Xinke Electronics Co's Gross Margin % for the quarter that ended in Sep. 2024 was 70.80%.

Warning Sign:

Wuhan Xingtu Xinke Electronics Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.5%.


The historical rank and industry rank for Wuhan Xingtu Xinke Electronics Co's Gross Margin % or its related term are showing as below:

SHSE:688081' s Gross Margin % Range Over the Past 10 Years
Min: 48.87   Med: 63.59   Max: 77.42
Current: 48.87


During the past 8 years, the highest Gross Margin % of Wuhan Xingtu Xinke Electronics Co was 77.42%. The lowest was 48.87%. And the median was 63.59%.

SHSE:688081's Gross Margin % is ranked better than
82.35% of 306 companies
in the Aerospace & Defense industry
Industry Median: 25.495 vs SHSE:688081: 48.87

Wuhan Xingtu Xinke Electronics Co had a gross margin of 70.80% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Wuhan Xingtu Xinke Electronics Co was -8.50% per year.


Wuhan Xingtu Xinke Electronics Co Gross Margin % Historical Data

The historical data trend for Wuhan Xingtu Xinke Electronics 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.

Wuhan Xingtu Xinke Electronics Co Gross Margin % Chart

Wuhan Xingtu Xinke Electronics Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 77.42 60.94 57.78 50.29 49.78

Wuhan Xingtu Xinke Electronics Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 52.91 39.38 53.22 58.40 70.80

Competitive Comparison of Wuhan Xingtu Xinke Electronics Co's Gross Margin %

For the Aerospace & Defense subindustry, Wuhan Xingtu Xinke Electronics 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.


Wuhan Xingtu Xinke Electronics Co's Gross Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Wuhan Xingtu Xinke Electronics Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Wuhan Xingtu Xinke Electronics Co's Gross Margin % falls into.



Wuhan Xingtu Xinke Electronics Co Gross Margin % Calculation

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

Wuhan Xingtu Xinke Electronics Co'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 )
=74.4 / 149.44
=(Revenue - Cost of Goods Sold) / Revenue
=(149.44 - 75.042) / 149.44
=49.78 %

Wuhan Xingtu Xinke Electronics Co's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=8.6 / 12.107
=(Revenue - Cost of Goods Sold) / Revenue
=(12.107 - 3.535) / 12.107
=70.80 %

* 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.


Wuhan Xingtu Xinke Electronics Co  (SHSE:688081) 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

Wuhan Xingtu Xinke Electronics Co had a gross margin of 70.80% for the quarter that ended in Sep. 2024 => 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.


Wuhan Xingtu Xinke Electronics Co Gross Margin % Related Terms

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Wuhan Xingtu Xinke Electronics Co Business Description

Traded in Other Exchanges
N/A
Address
Phase II, Modern Service Industry Demonstration Base, Floor 4-9, Building 5, Science and Technology Park, Huazhong University of Science and Technology, East Lake New Technology Development Zone, Hubei, Wuhan, CHN, 430223
Wuhan Xingtu Xinke Electronics Co Ltd is a developer of Army-specific video command and control system based on a network communication system. The company develops, produces, maintains, and provides technical services and wholesale and retail; audio and video processing software and command and dispatch system software and hardware including video conference software and hardware, command hall display software and hardware, command hall control software and hardware, image transmission software and hardware, image processing software and hardware; and communication products, multimedia communication products, smart wearable devices, and emergency command system development.
Executives
Fang Meng Lan Director
Cheng Jia Ming Director
Chen Ai Min Director

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