# Qinghai Salt Lake Industry Co.Ltd (000792.SHE)

Canonical: https://gigainvestors.com/s/000792.SHE

Analysis as of: 2026-10-16T07:34:52.629Z. Financial observations: FY1996–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 22.95 per share; close as of 2026-10-15.

Estimated value: low CNY 22.10 per share, central CNY 24.31 per share, high CNY 27.27 per share. Buy at or below the central value CNY 24.31 per share. Valuation as of 2026-10-16T07:34:52.629Z; scenarios are not confidence intervals.

Expected annual return: 10.6% at the stated quote. About 10.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 3

- Operating margin variation: 23.12×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: -0.35×

- FY2018: -0.19×

- FY2019: -2.52×

- FY2020: 0.23×

- FY2021: 0.41×

- FY2022: 0.70×

- FY2023: 0.48×

- FY2024: 0.39×

- FY2025: 0.45×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 23.5%

- ROIC, second-lowest year: -6.5%

- Typical minus recent gross margin: -7.7 pp

- Typical gross margin (annual median): 47.9%

- Recent gross margin (lower of latest and 3-year median): 55.6%

- Years with nonpositive capital: 1

- Capital spending / revenue: 4.9%

- ROIC including acquisitions, ten-year median: 19.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.3%

- FY2017: -6.6%

- FY2018: -6.5%

- FY2019: 0.0%

- FY2020: 23.3%

- FY2021: 63.3%

- FY2022: >100%

- FY2023: 84.1%

- FY2024: 23.7%

- FY2025: 31.1%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 40B

- Net income, five-year total: CNY 41B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 3.6 pp

- Working capital / revenue, change between three-year averages: 30.2 pp

- Working capital / revenue, final three-year average: 15.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.97×

- FY2024: 0.91×

- FY2025: 0.95×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -6.5% vs 31.1%

- Per-share earnings: 0.06 to 1.49 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.3%

- Ordinary dilution, 5-year annual growth: 4.9%

- Market cap gain: CNY 96B

- Cumulative retained earnings: CNY -11B

- Diluted shares, 10-year annual growth: 1.3%

- Diluted shares, 5-year annual growth: 4.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 48.5%

- Per-share value change: CNY 1.43

- Per-share value, starting three-year median: CNY 0.06

- Per-share value, ending three-year median: CNY 1.49

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 0.4%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 828M

- Cumulative net income, 10 years: CNY -10.0B

- ROIC, first three-year median: -6.5%

- ROIC, last three-year median: 31.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.06

- FY2017: CNY -0.77

- FY2018: CNY -0.64

- FY2019: CNY -8.44

- FY2020: CNY 0.49

- FY2021: CNY 0.85

- FY2022: CNY 2.93

- FY2023: CNY 1.49

- FY2024: CNY 0.88

- FY2025: CNY 1.60

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 0.04×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.20×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.0%

- FY2017: -6.9%

- FY2018: -14.1%

- FY2019: -215.9%

- FY2020: 12.4%

- FY2021: -1.2%

- FY2022: -4.5%

- FY2023: -8.8%

- FY2024: -6.9%

- FY2025: -3.0%

## Holders

## Price story

Down 42% since Apr 2026 · sales +2.4%

Story as of 2026-10-16T10:00:02.880Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.1% a year for ten years

### Sales · FY2024–2025

sales +2.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 10B 

- FY2017: CNY 12B 

- FY2018: CNY 18B 

- FY2019: CNY 18B 

- FY2020: CNY 14B 

- FY2021: CNY 15B 

- FY2022: CNY 31B 

- FY2023: CNY 22B 

- FY2024: CNY 15B 

- FY2025: CNY 16B 

### Gross margin · FY2025

gross margin 57.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 35.6% 

- FY2017: 26.4% 

- FY2018: 16.8% 

- FY2019: 19.4% 

- FY2020: 44.7% 

- FY2021: 62.5% 

- FY2022: 78.8% 

- FY2023: 55.6% 

- FY2024: 51.1% 

- FY2025: 57.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in agricultural inputs; annual sales are CNY 15.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2025: revenue 15501243782.06; grossProfit 8968265588.7; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000792.SHE: Qinghai Salt Lake Industry Co.,Ltd, together with its subsidiaries, manufactures and sells potash fertilizers in China and internationally. It operates through four segments: Potassium Products, Lithium Products, Trading, and Other. The company offers chemical raw materials and chemical products; potassium chloride and other potassium products; lithium carbonate; and fertilizers. It also operates hotels and department stores; and provides labor services. Qinghai Salt Lake Industry Co.,Ltd was founded in 1958 and is based in Golmud, China.

### Why customers stay

Margins ranged from 51.1% to 57.9% during 2023–25; it earns 23.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2023: grossProfit / revenue = 55.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2024: grossProfit / revenue = 51.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2025: grossProfit / revenue = 57.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); 10-year return on capital observations [[2016,0.0027700858849058606],[2017,-0.06648037355708006],[2018,-0.0646861779824478],[2019,0],[2020,0.23260831495644543],[2021,0.633234938351179],[2022,1.8542173347922466],[2023,0.8409465370643113],[2024,0.2373273314760723],[2025,0.3107270761824982]]; median 0.23496782321625886. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 2.7% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2020: growth capex 0; upkeep 537066807.73; owner earnings 2113613889.27. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2021: growth capex 84691103.28999996; upkeep 723637487; owner earnings 4471040861.324. Growth capex / owner earnings = 0.018942144774968698.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2022: growth capex 0; upkeep 680072025.03; owner earnings 15579419226.156961. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2023: growth capex 0; upkeep 942971036; owner earnings 7714965967.228. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2024: growth capex 0; upkeep 1221806227; owner earnings 4231931940.916. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2025: growth capex 214766267.94209933; upkeep 1426717635.0479007; owner earnings 8047085133.436099. Growth capex / owner earnings = 0.02668870334796549.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); Dividend observations: [[2016,2310600587.25],[2017,2295623839.64],[2018,2190525514.53],[2019,1099363389.18],[2020,355856415.14],[2021,291002032.06],[2022,261586814.39],[2023,253229564.16],[2024,586244171],[2025,12312037.59]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); FY2025: cash repurchases 3808354.336666666 CNY.

### Are managers owners

Insiders own 39.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000792.SHE SharesStats.PercentInsiders = 39.292 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 0.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:52.629Z); Ten-year compound average after fade. Initial solved rate -0.013768392245057604. Price 22.95; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.31219199514645674 → FY2025 1.5207318308683655. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 9.71 per share

- 2016-11: CNY 10.42 per share

- 2016-12: CNY 9.78 per share

- 2017-01: CNY 9.52 per share

- 2017-02: CNY 9.54 per share

- 2017-03: CNY 9.43 per share

- 2017-04: CNY 8.24 per share

- 2017-05: CNY 7.26 per share

- 2017-06: CNY 5.36 per share

- 2017-07: CNY 5.94 per share

- 2017-08: CNY 5.97 per share

- 2017-09: CNY 9.70 per share

- 2017-10: CNY 7.91 per share

- 2017-11: CNY 7.04 per share

- 2017-12: CNY 7.13 per share

- 2018-01: CNY 6.67 per share

- 2018-02: CNY 6.64 per share

- 2018-03: CNY 6.62 per share

- 2018-04: CNY 6.25 per share

- 2018-05: CNY 6.30 per share

- 2018-06: CNY 5.55 per share

- 2018-07: CNY 4.56 per share

- 2018-08: CNY 4.33 per share

- 2018-09: CNY 4.66 per share

- 2018-10: CNY 3.90 per share

- 2018-11: CNY 4.27 per share

- 2018-12: CNY 3.58 per share

- 2019-01: CNY 3.03 per share

- 2019-02: CNY 3.72 per share

- 2019-03: CNY 3.46 per share

- 2019-04: CNY 3.59 per share

- 2019-05: CNY 3.86 per share

- 2019-06: CNY 3.16 per share

- 2019-07: CNY 3.27 per share

- 2019-08: CNY 3.54 per share

- 2019-09: CNY 3.93 per share

- 2019-10: CNY 4.37 per share

- 2019-11: CNY 4.41 per share

- 2019-12: CNY 4.51 per share

- 2020-01: CNY 4.36 per share

- 2020-02: CNY 4.90 per share

- 2020-03: CNY 8.91 per share

- 2020-04: CNY 8.86 per share

- 2020-05: CNY 8.86 per share

- 2020-06: CNY 8.86 per share

- 2020-07: CNY 8.86 per share

- 2020-08: CNY 8.86 per share

- 2020-09: CNY 8.86 per share

- 2020-10: CNY 8.86 per share

- 2020-11: CNY 8.86 per share

- 2020-12: CNY 8.86 per share

- 2021-01: CNY 8.86 per share

- 2021-02: CNY 8.86 per share

- 2021-03: CNY 8.86 per share

- 2021-04: CNY 8.86 per share

- 2021-05: CNY 8.86 per share

- 2021-06: CNY 8.86 per share

- 2021-07: CNY 8.86 per share

- 2021-08: CNY 39.81 per share

- 2021-09: CNY 29.93 per share

- 2021-10: CNY 28.95 per share

- 2021-11: CNY 28.59 per share

- 2021-12: CNY 35.39 per share

- 2022-01: CNY 30.01 per share

- 2022-02: CNY 34.74 per share

- 2022-03: CNY 30.07 per share

- 2022-04: CNY 28.93 per share

- 2022-05: CNY 31.53 per share

- 2022-06: CNY 29.96 per share

- 2022-07: CNY 29.04 per share

- 2022-08: CNY 27.80 per share

- 2022-09: CNY 23.88 per share

- 2022-10: CNY 21.51 per share

- 2022-11: CNY 25.29 per share

- 2022-12: CNY 22.69 per share

- 2023-01: CNY 25.03 per share

- 2023-02: CNY 24.80 per share

- 2023-03: CNY 22.36 per share

- 2023-04: CNY 20.42 per share

- 2023-05: CNY 18.79 per share

- 2023-06: CNY 19.17 per share

- 2023-07: CNY 20.00 per share

- 2023-08: CNY 17.90 per share

- 2023-09: CNY 17.16 per share

- 2023-10: CNY 16.93 per share

- 2023-11: CNY 15.85 per share

- 2023-12: CNY 15.95 per share

- 2024-01: CNY 14.34 per share

- 2024-02: CNY 16.15 per share

- 2024-03: CNY 16.04 per share

- 2024-04: CNY 16.59 per share

- 2024-05: CNY 17.29 per share

- 2024-06: CNY 17.45 per share

- 2024-07: CNY 15.54 per share

- 2024-08: CNY 14.63 per share

- 2024-09: CNY 18.56 per share

- 2024-10: CNY 17.94 per share

- 2024-11: CNY 17.86 per share

- 2024-12: CNY 16.46 per share

- 2025-01: CNY 16.53 per share

- 2025-02: CNY 16.50 per share

- 2025-03: CNY 16.56 per share

- 2025-04: CNY 16.00 per share

- 2025-05: CNY 15.84 per share

- 2025-06: CNY 17.08 per share

- 2025-07: CNY 18.03 per share

- 2025-08: CNY 20.28 per share

- 2025-09: CNY 20.85 per share

- 2025-10: CNY 24.80 per share

- 2025-11: CNY 26.45 per share

- 2025-12: CNY 28.16 per share

- 2026-01: CNY 32.78 per share

- 2026-02: CNY 38.20 per share

- 2026-03: CNY 37.00 per share

- 2026-04: CNY 39.29 per share

- 2026-05: CNY 30.77 per share

- 2026-06: CNY 30.19 per share

- 2026-07: CNY 27.32 per share

- 2026-08: CNY 28.19 per share

- 2026-09: CNY 23.83 per share

- 2026-10: CNY 23.13 per share

## Annual estimated value (CNY per share)

- FY2022: low CNY 14.56 per share, central CNY 19.65 per share, high CNY 22.62 per share

- FY2023: low CNY 20.70 per share, central CNY 27.88 per share, high CNY 32.06 per share

- FY2024: low CNY 13.04 per share, central CNY 15.26 per share, high CNY 17.31 per share

- FY2025: low CNY 15.79 per share, central CNY 17.37 per share, high CNY 19.47 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations