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Hangzhou Gisway Information Technology Co (SZSE:301390) Gross Margin % : 21.92% (As of Sep. 2024)


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What is Hangzhou Gisway Information Technology Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hangzhou Gisway Information Technology Co's Gross Profit for the three months ended in Sep. 2024 was ¥36.2 Mil. Hangzhou Gisway Information Technology Co's Revenue for the three months ended in Sep. 2024 was ¥164.9 Mil. Therefore, Hangzhou Gisway Information Technology Co's Gross Margin % for the quarter that ended in Sep. 2024 was 21.92%.

Warning Sign:

Hangzhou Gisway Information Technology Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5%.


The historical rank and industry rank for Hangzhou Gisway Information Technology Co's Gross Margin % or its related term are showing as below:

SZSE:301390' s Gross Margin % Range Over the Past 10 Years
Min: 26.78   Med: 42.74   Max: 45.89
Current: 26.78


During the past 6 years, the highest Gross Margin % of Hangzhou Gisway Information Technology Co was 45.89%. The lowest was 26.78%. And the median was 42.74%.

SZSE:301390's Gross Margin % is ranked worse than
69.27% of 2639 companies
in the Software industry
Industry Median: 41.03 vs SZSE:301390: 26.78

Hangzhou Gisway Information Technology Co had a gross margin of 21.92% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hangzhou Gisway Information Technology Co was -5.00% per year.


Hangzhou Gisway Information Technology Co Gross Margin % Historical Data

The historical data trend for Hangzhou Gisway Information Technology 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.

Hangzhou Gisway Information Technology Co Gross Margin % Chart

Hangzhou Gisway Information Technology Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 41.67 43.81 45.89 41.25 31.60

Hangzhou Gisway Information Technology Co Quarterly Data
Dec18 Dec19 Dec20 Mar21 Jun21 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 29.32 29.94 35.23 24.87 21.92

Competitive Comparison of Hangzhou Gisway Information Technology Co's Gross Margin %

For the Information Technology Services subindustry, Hangzhou Gisway Information Technology 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.


Hangzhou Gisway Information Technology Co's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Hangzhou Gisway Information Technology Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hangzhou Gisway Information Technology Co's Gross Margin % falls into.



Hangzhou Gisway Information Technology Co Gross Margin % Calculation

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

Hangzhou Gisway Information Technology 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 )
=162.6 / 514.505
=(Revenue - Cost of Goods Sold) / Revenue
=(514.505 - 351.947) / 514.505
=31.60 %

Hangzhou Gisway Information Technology 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 )
=36.2 / 164.882
=(Revenue - Cost of Goods Sold) / Revenue
=(164.882 - 128.732) / 164.882
=21.92 %

* 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.


Hangzhou Gisway Information Technology Co  (SZSE:301390) 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

Hangzhou Gisway Information Technology Co had a gross margin of 21.92% for the quarter that ended in Sep. 2024 => Competition eroding margins


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.


Hangzhou Gisway Information Technology Co Gross Margin % Related Terms

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Hangzhou Gisway Information Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 1899, Gudun Road, Room 626-628, 6th Floor, Building A1, Liangzhu, Yuhang District, Zhejiang Province, Hangzhou, CHN, 311100
Hangzhou Gisway Information Technology Co Ltd mainly provides integrated power technology services such as power engineering consulting design, construction, operation and maintenance, energy saving, and electricity sales for customers such as power grids and affiliated enterprises, government agencies, and industrial and commercial enterprises. The company's business segment includes 3DGIS Smart Service, Power Integration Service, and Integrated Energy Services.

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