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KangLi International Holdings (HKSE:06890) Operating Income : HK$178 Mil (TTM As of Jun. 2024)


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What is KangLi International Holdings Operating Income?

KangLi International Holdings's Operating Income for the six months ended in Jun. 2024 was HK$84 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was HK$178 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. KangLi International Holdings's Operating Income for the six months ended in Jun. 2024 was HK$84 Mil. KangLi International Holdings's Revenue for the six months ended in Jun. 2024 was HK$1,082 Mil. Therefore, KangLi International Holdings's Operating Margin % for the quarter that ended in Jun. 2024 was 7.79%.

KangLi International 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. KangLi International Holdings's annualized ROC % for the quarter that ended in Jun. 2024 was 11.03%. KangLi International Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 28.15%.


KangLi International Holdings Operating Income Historical Data

The historical data trend for KangLi International 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.

KangLi International Holdings Operating Income Chart

KangLi International Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only 46.27 125.36 194.79 -39.30 112.64

KangLi International Holdings Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Operating Income 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 -0.52 -38.80 18.64 94.00 84.32

KangLi International 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$178 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.


KangLi International Holdings  (HKSE:06890) Operating Income Explanation

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

KangLi International 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 )
=168.644 * ( 1 - 12.67% )/( (1338.885 + 1332.231)/ 2 )
=147.2768052/1335.558
=11.03 %

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))
=1945.142 - 421.419 - ( 184.838 - max(0, 984.633 - 1536.169+184.838))
=1338.885

Invested Capital(Q: Jun. 2024 )
=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))
=2004.983 - 431.176 - ( 241.576 - max(0, 1055.225 - 1608.604+241.576))
=1332.231

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:

KangLi International 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 )
=175.348/( ( (386.196 + max(233.771, 0)) + (373.368 + max(252.28, 0)) )/ 2 )
=175.348/( ( 619.967 + 625.648 )/ 2 )
=175.348/622.8075
=28.15 %

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)
=(230.909 + 502.702 + 0) - (421.419 + 0 + 78.421)
=233.771

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(232.506 + 534.11 + 0.00099999999997635) - (431.176 + 0 + 83.161)
=252.28

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 %:

KangLi International 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 )
=84.322/1082.435
=7.79 %

* 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.


KangLi International Holdings Operating Income Related Terms

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KangLi International Holdings Business Description

Traded in Other Exchanges
N/A
Address
Hengshanqiao Town, Wujin District, Wuyi County, Jiangsu Province, Changzhou, CHN
KangLi International Holdings Ltd is engaged in the production and sales of unpainted and painted galvanized steel products to midstream steel product processors, and cold-rolled steel products to home appliance manufacturers. The company has three operating segments; the Hard steel coil segment includes the manufacture and sale of cold-rolled hard steel coil, the Unpainted galvanized steel products segment includes the manufacture and sale of hot-dipped galvanized/zinc-coated steel coil and sheet; the Painted galvanized steel products segment includes the manufacture and sale of hot-dipped color coated galvanized steel coil and sheet and the Property management services. It derives a majority of its revenue from the People's Republic of China.
Executives
Liu Ping 2202 Interest of your spouse
Mei Zefeng 2201 Interest of corporation controlled by you
Newrich Limited 2101 Beneficial owner
Star Century Corporate Limited 2101 Beneficial owner
Chang Zhou Dong Fang Xin Cheng Jian She You Xian Gong Si 2201 Interest of corporation controlled by you
Chang Zhou Dong Fang Shui Wu Tou Zi Fa Zhan You Xian Gong Si 2201 Interest of corporation controlled by you
Jiang Su Chang Zhou Jing Ji Kai Fa Qu Guan Li Wei Yuan Hui 2201 Interest of corporation controlled by you
Xiang Gang Dong Fang Kong Gu Shi Ye You Xian Gong Si 2101 Beneficial owner

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