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Wonders Information Co (SZSE:300168) Gross Margin % : 13.58% (As of Sep. 2023)


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What is Wonders Information Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Wonders Information Co's Gross Profit for the three months ended in Sep. 2023 was ¥68 Mil. Wonders Information Co's Revenue for the three months ended in Sep. 2023 was ¥497 Mil. Therefore, Wonders Information Co's Gross Margin % for the quarter that ended in Sep. 2023 was 13.58%.

Warning Sign:

Wonders Information 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 Wonders Information Co's Gross Margin % or its related term are showing as below:

SZSE:300168' s Gross Margin % Range Over the Past 10 Years
Min: 15.85   Med: 32.67   Max: 44.5
Current: 26.19


During the past 13 years, the highest Gross Margin % of Wonders Information Co was 44.50%. The lowest was 15.85%. And the median was 32.67%.

SZSE:300168's Gross Margin % is ranked worse than
71.16% of 2628 companies
in the Software industry
Industry Median: 41.71 vs SZSE:300168: 26.19

Wonders Information Co had a gross margin of 13.58% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Wonders Information Co was -8.50% per year.


Wonders Information Co Gross Margin % Historical Data

The historical data trend for Wonders Information 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.

Wonders Information Co Gross Margin % Chart

Wonders Information Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.50 22.86 15.85 33.49 26.41

Wonders Information Co Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 20.66 28.61 31.53 26.61 13.58

Competitive Comparison of Wonders Information Co's Gross Margin %

For the Information Technology Services subindustry, Wonders Information 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.


Wonders Information Co's Gross Margin % Distribution in the Software Industry

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

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



Wonders Information Co Gross Margin % Calculation

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

Wonders Information Co's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=851.5 / 3223.537
=(Revenue - Cost of Goods Sold) / Revenue
=(3223.537 - 2372.049) / 3223.537
=26.41 %

Wonders Information Co's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=67.5 / 497.112
=(Revenue - Cost of Goods Sold) / Revenue
=(497.112 - 429.589) / 497.112
=13.58 %

* 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.


Wonders Information Co  (SZSE:300168) 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

Wonders Information Co had a gross margin of 13.58% for the quarter that ended in Sep. 2023 => 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.


Wonders Information Co Gross Margin % Related Terms

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Wonders Information Co (SZSE:300168) Business Description

Traded in Other Exchanges
N/A
Address
No 1518, Lianhang Road, Minhang District, Shanghai, CHN, 201112
Wonders Information Co Ltd is a software and service provider of information technology. Based on the core business of the industry, the company focuses on the development of online operation of public services, actively explores offline closed-loop services, continuously improves the operational efficiency of the city, and provides more convenient services, leading the transformation of the national medical health, culture and education industries. The company holds more than 600 software products and software copyrights.

Wonders Information Co (SZSE:300168) Headlines

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