China Netcom Technology Holdings (HKSE:08071) Operating Income: HK$-4.17 Mil (TTM As of Dec. 2025)

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HKSE:08071 China Netcom Technology Holdings Ltd HKSE:08071
56 GF Score
Price HK$0.72
GF Value HK$2.17
Valuation Possible Value Trap
! 7 Warning Signs
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What is China Netcom Technology Holdings Operating Income?

China Netcom Technology Holdings HKSE:08071 56 Operating Income is HK$-4.17 Mil as of Dec. 2025. GuruFocus rates HKSE:08071 with a GF Score™ of 56/100 and a GF Value™ of HK$2.17 (Possible Value Trap). The stock has 7 warning signs investors should review.

China Netcom Technology Holdings's Operating Income for the six months ended in Dec. 2025 was HK$-1.05 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was HK$-4.17 Mil.

Warning Sign:

China Netcom Technology 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. China Netcom Technology Holdings's Operating Income for the six months ended in Dec. 2025 was HK$-1.05 Mil. China Netcom Technology Holdings's Revenue for the six months ended in Dec. 2025 was HK$23.70 Mil. Therefore, China Netcom Technology Holdings's Operating Margin % for the quarter that ended in Dec. 2025 was -4.45%.

Warning Sign:

China Netcom Technology Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -16.7%.

China Netcom Technology Holdings's 5-Year average Growth Rate for Operating Margin % was -16.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. China Netcom Technology Holdings's annualized ROC % for the quarter that ended in Dec. 2025 was -65.86%. China Netcom Technology Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was %.


China Netcom Technology Holdings  (HKSE:08071) Operating Income Explanation

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

China Netcom Technology Holdings's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-2.108 * ( 1 - 37.98% )/( (0.483 + 3.487)/ 2 )
=-1.3073816/1.985
=-65.86 %

where

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

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

China Netcom Technology Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.932/( ( (0 + max(-5.433, 0)) + (0 + max(-8.97, 0)) )/ 2 )
=0.932/( ( 0 + 0 )/ 2 )
=0.932/0
= %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5.145 + 0 + 0) - (10.213 + 0 + 0.365)
=-5.433

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4.022 + 0 + 1.285) - (13.032 + 0 + 1.245)
=-8.97

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

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

China Netcom Technology Holdings's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=-1.054/23.703
=-4.45 %

* 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.


China Netcom Technology Holdings Operating Income Related Terms


China Netcom Technology Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for China Netcom Technology 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.

China Netcom Technology Holdings Operating Income Chart

China Netcom Technology Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.80 -10.11 -13.32 -12.03 -4.17

China Netcom Technology Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.32 -2.98 -9.04 -3.11 -1.05
HKSE:08071
56GF Score
China Netcom Technology Holdings Ltd HKSE:08071
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Netcom Technology 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. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$-4.17 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of HK$-4.17 Mil mean?
China Netcom Technology Holdings (HKSE:08071) has a Operating Income of HK$-4.17 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on China Netcom Technology Holdings and its competitors.
Is China Netcom Technology Holdings' Operating Income too high?
China Netcom Technology Holdings' current Operating Income is HK$-4.17 Mil. Overall, China Netcom Technology Holdings has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Netcom Technology Holdings' Operating Income compare to QH and SHOP?
China Netcom Technology Holdings' Operating Income of HK$-4.17 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on China Netcom Technology Holdings and its competitors. China Netcom Technology Holdings's current Operating Income is HK$-4.17 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Netcom Technology Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Netcom Technology Holdings (HKSE:08071) is currently considered Possible Value Trap. The stock's GF Value™ is HK$2.17, compared to a current price of HK$0.72 — trading 66.8% below its estimated fair value. The current Operating Income is HK$-4.17 Mil. China Netcom Technology Holdings' overall GF Score™ is 56/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For China Netcom Technology Holdings (HKSE:08071), the current Operating Income is HK$-4.17 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is China Netcom Technology Holdings (HKSE:08071) Overvalued in 2026?

Based on GuruFocus' analysis, China Netcom Technology Holdings stock appears to be undervalued. The current stock price of HK$0.72 is trading 66.8% below its estimated GF Value™ of HK$2.17. GuruFocus considers China Netcom Technology Holdings to be Possible Value Trap.

Key valuation signals for HKSE:08071:

  • Operating Income: HK$-4.17 Mil
  • GF Value™: HK$2.17 vs. price of HK$0.72 (66.8% below fair value)
  • GF Score™: 56/100 with 7 warning signs

No single metric tells the full story. See the HKSE:08071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Netcom Technology Holdings Business Description

Address 18 Harcourt Road, 8th Floor, Tower 2, Admiralty Centre, Hong Kong, HKG
China Netcom Technology Holdings Ltd and its subsidiaries are engaged in the Smart Retail Business and Automotive Culture Business. The vast majority of its revenue is generated from Smart Retail Business, which is into the provision of new retail digital transformation solutions and new retail integrated software service platform to chain retailers and merchants, and extended services such as cloud services, omnichannel payment services, and SMS marketing services, etc. Geographically, the company has business operations in the PRC and Hong Kong, of which key revenue is derived from the PRC.
56GF Score

Get the complete analysis for HKSE:08071

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.72
Price
HK$2.17
GF Value