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Newborn Town (HKSE:09911) Gross Profit : HK$1,884 Mil (TTM As of Dec. 2023)


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What is Newborn Town Gross Profit?

Newborn Town's gross profit for the six months ended in Dec. 2023 was HK$1,110 Mil. Newborn Town's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was HK$1,884 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Newborn Town's gross profit for the six months ended in Dec. 2023 was HK$1,110 Mil. Newborn Town's Revenue for the six months ended in Dec. 2023 was HK$2,115 Mil. Therefore, Newborn Town's Gross Margin % for the quarter that ended in Dec. 2023 was 52.51%.

Newborn Town had a gross margin of 52.51% for the quarter that ended in Dec. 2023 => Durable competitive advantage

During the past 8 years, the highest Gross Margin % of Newborn Town was 67.11%. The lowest was 37.79%. And the median was 51.46%.

Warning Sign:

Newborn Town Inc gross margin has been in long-term decline. The average rate of decline per year is -5.7%.


Newborn Town Gross Profit Historical Data

The historical data trend for Newborn Town's Gross Profit 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.

Newborn Town Gross Profit Chart

Newborn Town Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Profit
Get a 7-Day Free Trial 291.00 892.03 1,228.53 1,181.38 1,883.58

Newborn Town Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 588.12 565.42 642.72 773.18 1,110.40

Competitive Comparison of Newborn Town's Gross Profit

For the Software - Application subindustry, Newborn Town's Gross Profit, along with its competitors' market caps and Gross Profit 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.


Newborn Town's Gross Profit Distribution in the Software Industry

For the Software industry and Technology sector, Newborn Town's Gross Profit distribution charts can be found below:

* The bar in red indicates where Newborn Town's Gross Profit falls into.



Newborn Town Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Newborn Town's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as

Gross Profit (A: Dec. 2023 )=Revenue - Cost of Goods Sold
=3618.001 - 1734.423
=1,884

Newborn Town's Gross Profit for the quarter that ended in Dec. 2023 is calculated as

Gross Profit (Q: Dec. 2023 )=Revenue - Cost of Goods Sold
=2114.538 - 1004.135
=1,110

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$1,884 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Newborn Town's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,110 / 2114.538
=52.51 %

* 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.


Newborn Town  (HKSE:09911) Gross Profit 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

Newborn Town had a gross margin of 52.51% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Newborn Town Gross Profit Related Terms

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Newborn Town (HKSE:09911) Business Description

Traded in Other Exchanges
N/A
Address
Xiaoyun Road 33rd Building, 6th Floor, Tower B, Chaoyang District, Beijing, CHN
Newborn Town Inc is a mobile app developer and mobile advertising platform services provider based on AI technologies. The company operates through two segments namely, Social networking business and Innovative business. It generates majority revenue from Social networking business segment.
Executives
Li Ping
Liu Chunhe 2201 Interest of corporation controlled by you
Parallel World Limited
Spriver Tech Limited 2101 Beneficial owner
Bgfg Limited
Du Li 2201 Interest of corporation controlled by you
Phoenix Auspicious Fintech Investment L.p.
Phoenix Wealth (cayman) Asset Management Limited
Phoenix Wealth (hong Kong) Asset Management Limited

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