Risecomm Group Holdings (HKSE:01679) Operating Income : HK$-66.8 Mil (TTM As of Dec. 2023)

View and export this data going back to 2017. Start your Free Trial

What is Risecomm Group Holdings Operating Income?

Risecomm Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-35.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-66.8 Mil.

Warning Sign:

Risecomm Group Holdings Ltd has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Risecomm Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-35.5 Mil. Risecomm Group Holdings's Revenue for the six months ended in Dec. 2023 was HK$65.4 Mil. Therefore, Risecomm Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -54.26%.

Warning Sign:

Risecomm Group Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -120.9%.

Risecomm Group Holdings's 5-Year average Growth Rate for Operating Margin % was -120.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Risecomm Group Holdings's annualized ROC % for the quarter that ended in Dec. 2023 was -37.26%. Risecomm Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -385.75%.

Risecomm Group Holdings Operating Income Historical Data

The historical data trend for Risecomm Group Holdings's Operating Income 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.

Risecomm Group Holdings Operating Income Chart

Risecomm Group Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

Get a 7-Day Free Trial

-68.58

-94.45

-70.31

-58.91

-66.79

Risecomm Group Holdings Semi-Annual Data
	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial													-43.40	-26.83	-33.35	-31.33	-35.47

Risecomm Group Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income 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$-66.8 Mil.

Risecomm Group Holdings (HKSE:01679) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Risecomm Group Holdings's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-70.934 * ( 1 - -29.77% )	/	( (265.546	+	228.563)	/ 2 )
=	-92.0510518	/	247.0545
=	-37.26 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	322.327	-	97.082	-	( 56.098	-	max(0, 251.613	-	211.312	+	56.098	))
=	265.546

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	273.978	-	64.979	-	( 39.287	-	max(0, 186.379	-	166.815	+	39.287	))
=	228.563

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Risecomm Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-181.814	/	( ( (24.303 + max(27.96, 0))	+	(27.755 + max(14.247, 0)) )	/	2 )
=	-181.814	/	( ( 52.263	+	42.002 )	/	2 )
=	-181.814	/	47.1325
=	-385.75 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(83.703	+	27.672	+	23.634)	-	(97.082	+	0	+	9.967)
=	27.96

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(61.884	+	24.38	+	25.72)	-	(64.979	+	0	+	32.758)
=	14.247

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Risecomm Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	-35.467	/	65.366
	=	-54.26 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Risecomm Group Holdings Operating Income Related Terms

Thank you for viewing the detailed overview of Risecomm Group Holdings's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Risecomm Group Holdings (HKSE:01679) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Risecomm Group Holdings Ltd (HKSE:01679) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Xili Street, 41st Floor, Block A, Building 8, Shenzhen International Innovation Valley, Nanshan Distric, Shenzhen, CHN, 518055

Website

https://www.risecomm.com.cn

Risecomm Group Holdings Ltd is an investment holding company. It operates in two business segments namely, Automated Meter Reading (AMR) and other includes design, development, and sale of power line communication products and energy-saving and environmental protection products and solutions used in streetlight control, building energy management, photovoltaic power management, and providing maintenance services in connections with the deployment and upgrading of AMR systems in PRC; and Smart manufacturing & industrial automation (SMIA) business segment includes the sales of the software license, safety products as well as the provision of software post-contract customers support services. It generates revenue from AMR business. Geographically, it derives revenue from the PRC.

Executives

Fu Xiaoqin	2101 Beneficial owner
Xindaxin Group Company Limited	2101 Beneficial owner
Silver Castle International Limited	2201 Interest of corporation controlled by you
Yan Andrew Y	2201 Interest of corporation controlled by you
Wu Yueshi	2201 Interest of corporation controlled by you
Sb Asia Investment Fund Ii L.p.	2101 Beneficial owner
Saif Partners Ii Lp	2201 Interest of corporation controlled by you
Saif Ii Gp Lp	2201 Interest of corporation controlled by you
Saif Ii Gp Capital Ltd.	2201 Interest of corporation controlled by you
Cisco Systems, Inc.	2201 Interest of corporation controlled by you
Liu Bei Bei	2101 Beneficial owner
Yu Lu	2101 Beneficial owner
Ding Zhigang	2101 Beneficial owner
Ning Jun	2101 Beneficial owner
Spitzer Fund Vi L.p.

Risecomm Group Holdings (HKSE:01679) Headlines

No Headlines