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Plus Group Holdings (HKSE:02486) Operating Income : HK$-30.5 Mil (TTM As of Dec. 2023)


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What is Plus Group Holdings Operating Income?

Plus Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-56.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-30.5 Mil.

Warning Sign:

Plus Group Holdings Inc 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. Plus Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-56.5 Mil. Plus Group Holdings's Revenue for the six months ended in Dec. 2023 was HK$332.4 Mil. Therefore, Plus Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -17.01%.

Plus Group 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. Plus Group Holdings's annualized ROC % for the quarter that ended in Dec. 2023 was -21.99%. Plus Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -18.27%.


Plus Group Holdings Operating Income Historical Data

The historical data trend for Plus 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.

Plus Group Holdings Operating Income Chart

Plus Group Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Operating Income
88.60 105.45 88.51 -30.48

Plus Group Holdings Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23
Operating Income Get a 7-Day Free Trial - 60.54 30.84 26.04 -56.52

Plus 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$-30.5 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.


Plus Group Holdings  (HKSE:02486) Operating Income Explanation

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

Plus 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 )
=-113.044 * ( 1 - 11.41% )/( (461.227 + 449.628)/ 2 )
=-100.1456796/455.4275
=-21.99 %

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))
=924.908 - 172.023 - ( 291.658 - max(0, 277.785 - 914.988+291.658))
=461.227

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))
=763.776 - 65.614 - ( 248.534 - max(0, 207.932 - 755.783+248.534))
=449.628

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:

Plus 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 )
=-27.62/( ( (2.643 + max(118.121, 0)) + (1.796 + max(179.789, 0)) )/ 2 )
=-27.62/( ( 120.764 + 181.585 )/ 2 )
=-27.62/151.1745
=-18.27 %

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)
=(334.981 + 0 + 27.308) - (172.023 + 0 + 72.145)
=118.121

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(302.261 + 0 + 25.049) - (65.614 + 0 + 81.907)
=179.789

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 %:

Plus 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 )
=-56.522/332.371
=-17.01 %

* 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.


Plus Group Holdings Operating Income Related Terms

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Plus Group Holdings (HKSE:02486) Business Description

Traded in Other Exchanges
N/A
Address
No. 652 Changshou Road, 2nd Floor–3rd Floor, Building 6, Putuo, Shanghai, CHN
Plus Group Holdings Inc is an established digitalized sales and marketing service provider, primarily focusing on market-leading FMCG brand owners. Its services aim at digitalizing and systemizing offline commerce. The company offers four types of services, including (i) on-site solution; (ii) field force assignment; (iii) matching service; and (iv) SaaS+ subscription. Its service network has extensive coverage in terms of the scale of customers, geographical locations and types of tasks. The majority of revenue is derived from the On-site solution services. The on-site solution offers solution services for customized sales and marketing activities with the set up of offline venues and event materials.
Executives
Sun Guangjun 2201 Interest of corporation controlled by you
Tan Hui 2202 Interest of your spouse
Trident Trust Company (hk) Limited 2301 Trustee
Guangjun Holdings Limited 2101 Beneficial owner
Summit Plus International Holding Limited 2201 Interest of corporation controlled by you
Guangjun Sun Holdings Limited 2101 Beneficial owner
Junshu Holdings Limited 2201 Interest of corporation controlled by you
Xia Jingtang 2201 Interest of corporation controlled by you
Yan Xiaohang 2202 Interest of your spouse
Kuwei Holdings Limited 2101 Beneficial owner
Cmb Wing Lung (trustee) Limited 2301 Trustee
Plus Group 2023 Limited 2101 Beneficial owner
Hannah Xia Holdings Limited 2101 Beneficial owner
Jonson Xia Smile Family Holdings Limited 2201 Interest of corporation controlled by you

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