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Weili Holdings (HKSE:02372) Operating Income : HK$-3.9 Mil (TTM As of Jun. 2024)


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What is Weili Holdings Operating Income?

Weili Holdings's Operating Income for the six months ended in Jun. 2024 was HK$-3.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was HK$-3.9 Mil.

Warning Sign:

Weili Holdings Ltd has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Weili Holdings's Operating Income for the six months ended in Jun. 2024 was HK$-3.7 Mil. Weili Holdings's Revenue for the six months ended in Jun. 2024 was HK$61.4 Mil. Therefore, Weili Holdings's Operating Margin % for the quarter that ended in Jun. 2024 was -6.06%.

Weili Holdings's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Weili Holdings's annualized ROC % for the quarter that ended in Jun. 2024 was -2.99%. Weili Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was -4.01%.


Weili Holdings Operating Income Historical Data

The historical data trend for Weili 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.

Weili Holdings Operating Income Chart

Weili Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
44.67 57.91 51.09 30.84 -5.61

Weili Holdings Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Operating Income Get a 7-Day Free Trial Premium Member Only 28.53 3.66 -5.40 -0.21 -3.72

Weili 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 Jun. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$-3.9 Mil.

* 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.


Weili Holdings  (HKSE:02372) Operating Income Explanation

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

Weili Holdings's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-7.446 * ( 1 - 27.28% )/( (175.68 + 187.105)/ 2 )
=-5.4147312/181.3925
=-2.99 %

where

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))
=399.378 - 119.654 - ( 104.044 - max(0, 156.784 - 349.015+104.044))
=175.68

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

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

Weili Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-5.732/( ( (45.055 + max(98.045, 0)) + (46.829 + max(96.278, 0)) )/ 2 )
=-5.732/( ( 143.1 + 143.107 )/ 2 )
=-5.732/143.1035
=-4.01 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(144.123 + 63.139 + 14.754) - (119.654 + 0 + 4.317)
=98.045

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(113.303 + 54.616 + 4.078) - (73.932 + 0 + 1.787)
=96.278

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

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

Weili Holdings's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2024 )/Revenue (Q: Jun. 2024 )
=-3.723/61.429
=-6.06 %

* 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.

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.


Weili Holdings Operating Income Related Terms

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Weili Holdings Business Description

Traded in Other Exchanges
N/A
Address
New Industrial Park, Hong’an County, Hubei Province, Mi’ersi Town, CHN
Weili Holdings Ltd is a cigarette wrapping paper manufacturer in China with research and development capabilities to supply customized products to customers. The company mainly supply products to cigarette packaging manufacturers operating in various provinces in China, mainly including Hubei and Henan. The products sold by the company are used in the manufacture of cigarette packaging for tobacco brands in China.
Executives
Chen Weizhuang 2201 Interest of corporation controlled by you
City Ease Limited 2101 Beneficial owner
Liu Yuezhu 2202 Interest of your spouse
Enlighten East Limited 2101 Beneficial owner
Yong Ning Limited 2101 Beneficial owner
Yu Tianbing 2201 Interest of corporation controlled by you
Zhou Huaqin 2202 Interest of your spouse

Weili Holdings Headlines

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