# Gotion High tech (002074.SHE)

Canonical: https://gigainvestors.com/s/002074.SHE

Analysis as of: 2026-10-16T07:36:28.593Z. Financial observations: FY2003–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

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

Share price: CNY 28.16 per share; close as of 2026-10-15.

Estimated value: low CNY 11.93 per share, central CNY 13.60 per share, high CNY 14.58 per share. Buy at or below the central value CNY 13.60 per share. Valuation as of 2026-10-16T07:36:28.593Z; scenarios are not confidence intervals.

Expected annual return: 5.0% at the stated quote. About 5.0% 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

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 1.07×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.23×

- FY2017: 0.21×

- FY2018: 0.12×

- FY2019: 0.01×

- FY2020: 0.02×

- FY2021: 0.00×

- FY2022: 0.01×

- FY2023: 0.03×

- FY2024: 0.04×

- FY2025: 0.07×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 4.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 2.6%

- ROIC, second-lowest year: 0.4%

- Typical minus recent gross margin: 4.1 pp

- Typical gross margin (annual median): 20.3%

- Recent gross margin (lower of latest and 3-year median): 16.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 34.4%

- ROIC including acquisitions, ten-year median: 0.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 36.3%

- FY2017: 16.6%

- FY2018: 6.0%

- FY2019: 0.4%

- FY2020: 1.1%

- FY2021: 0.2%

- FY2022: 0.7%

- FY2023: 2.4%

- FY2024: 2.8%

- FY2025: 6.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.28×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 1.4B

- Net income, five-year total: CNY 4.9B

- Return on incremental invested capital: 6.1%

- Working capital / revenue, annual change: -7.5 pp

- Working capital / revenue, change between three-year averages: -49.3 pp

- Working capital / revenue, final three-year average: -4.3%

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

- FY2021: 0.99×

- FY2022: 0.89×

- FY2023: -0.23×

- FY2024: -0.95×

- FY2025: 0.99×

### management: fail

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

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.6% vs 2.8%

- Per-share earnings: 0.83 to 0.68 (three-year endpoint medians)

- per-share value declined or ends nonpositive

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

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.6%

- Ordinary dilution, 5-year annual growth: 8.0%

- Market cap gain: CNY 43B

- Cumulative retained earnings: CNY 5.7B

- Diluted shares, 10-year annual growth: 4.6%

- Diluted shares, 5-year annual growth: 8.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -2.5%

- Per-share value change: CNY -0.15

- Per-share value, starting three-year median: CNY 0.83

- Per-share value, ending three-year median: CNY 0.68

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.5%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 6.7B

- Cumulative net income, 10 years: CNY 7.6B

- ROIC, first three-year median: 16.6%

- ROIC, last three-year median: 2.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.02

- FY2017: CNY 0.83

- FY2018: CNY 0.51

- FY2019: CNY 0.05

- FY2020: CNY 0.12

- FY2021: CNY 0.08

- FY2022: CNY 0.18

- FY2023: CNY 0.53

- FY2024: CNY 0.68

- FY2025: CNY 1.32

### accounting: pass

- Sloan accruals: -1.0%

- Receivables to sales index (DSRI): 0.69×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.52×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.24×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.4%

- FY2017: 5.5%

- FY2018: 10.4%

- FY2019: 2.9%

- FY2020: -1.9%

- FY2021: -2.2%

- FY2022: -0.7%

- FY2023: -1.6%

- FY2024: -1.4%

- FY2025: -1.0%

## Holders

## Price story

Down 58% since Nov 2021 · sales +27.3%

Story as of 2026-10-16T10:00:07.536Z; price observation 2026-10-15.

Price needs cash profits to grow 23.1% a year for ten years

### Sales · FY2024–2025

sales +27.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 4.8B 

- FY2017: CNY 4.8B 

- FY2018: CNY 5.1B 

- FY2019: CNY 5.0B 

- FY2020: CNY 6.7B 

- FY2021: CNY 10B 

- FY2022: CNY 23B 

- FY2023: CNY 32B 

- FY2024: CNY 35B 

- FY2025: CNY 45B 

### Gross margin · FY2025

gross margin 16.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 46.7% 

- FY2017: 38.8% 

- FY2018: 29.0% 

- FY2019: 26.0% 

- FY2020: 23.2% 

- FY2021: 17.0% 

- FY2022: 16.4% 

- FY2023: 15.1% 

- FY2024: 17.4% 

- FY2025: 16.2% 

## Owner memo

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

### How it makes money

Operates in electrical equipment & parts; annual sales are CNY 45.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2025: revenue 45070461822.87; grossProfit 7290092585.25; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002074.SHE: Gotion High-tech Co.,Ltd., together with its subsidiaries, engages in the research and development, manufacturing, and marketing of power battery systems, energy storage battery systems, and power transmission and distribution equipment in China and internationally. The company provides lithium iron phosphate and nickel-cobalt-manganese materials and cells, power battery packs, battery packs for energy storage systems, and battery management systems electric commercial vehicles, passenger vehicles, special vehicles, and hybrid vehicles. It also offers energy storage cells, standardized battery boxes, as well as integrated energy storage battery cabinets and system solutions. In addition, the company offers power transmission and distribution equipment, including high and low voltage switchgear, electrical digital equipment, smart distribution network equipment, transformers, circuit breakers, integrated charging piles, and energy storage cabinets used in thermal power, hydropower, nuclear power, wind power, rail transit, and metallurgy, chemical engineering. Gotion High-tech Co.,Ltd. was founded in 1995 and is headquartered in Hefei, China.

### Why customers stay

Margins ranged from 15.1% to 17.4% during 2023–25; it earns 2.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2023: grossProfit / revenue = 15.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2024: grossProfit / revenue = 17.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2025: grossProfit / revenue = 16.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); 10-year return on capital observations [[2016,0.36254589491247424],[2017,0.16625432078633462],[2018,0.06033998932379461],[2019,0.004471128843551711],[2020,0.01063311439901936],[2021,0.00222428817542573],[2022,0.007243225321539358],[2023,0.024221618841394087],[2024,0.027557634862290792],[2025,0.061196301735681]]; median 0.02588962685184244. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 16% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); Gross margin observations: [[2021,0.17018898495424126],[2022,0.1644196827132572],[2023,0.1510909750214052]]; range within 2 percentage points.

### Where the cash goes

Earns 6.1% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2016: growth capex 1046935686.9878169; upkeep 260505711.01218307; owner earnings 898610179.9878169. Growth capex / owner earnings = 1.1650610134441288.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2020: growth capex 1493745579; upkeep 600338715; owner earnings 149673024. Growth capex / owner earnings = 9.980058791355749.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2021: growth capex 3644775787; upkeep 804932936; owner earnings 100533933.608. Growth capex / owner earnings = 36.2541845941455.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2022: growth capex 12340616211; upkeep 1068688095; owner earnings 278780703.534. Growth capex / owner earnings = 44.26639309881411.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); FY2025: growth capex 6693882816.549999; upkeep 3477082837.59; owner earnings 2359694657.574. Growth capex / owner earnings = 2.836758050480978.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); Incremental return on capital 0.06060456470579208, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); Dividend observations: [[2016,191104703],[2017,221006466],[2018,279274915],[2019,491137368],[2020,332246551],[2021,471639196],[2022,1079310400],[2023,1556614000],[2024,1542226000],[2025,1637819835.96]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 43.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002074.SHE SharesStats.PercentInsiders = 43.138 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 23.1% yearly over ten years; actual growth was 9.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:28.593Z); Ten-year compound average after fade. Initial solved rate 0.32379683377248203. Price 28.16; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.5075471188181742 → FY2025 1.3069414774828454. Closing-price date 2026-10-15.

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

- 2016-10: CNY 30.79 per share

- 2016-11: CNY 28.55 per share

- 2016-12: CNY 27.14 per share

- 2017-01: CNY 27.40 per share

- 2017-02: CNY 26.69 per share

- 2017-03: CNY 28.92 per share

- 2017-04: CNY 27.82 per share

- 2017-05: CNY 23.63 per share

- 2017-06: CNY 27.63 per share

- 2017-07: CNY 31.50 per share

- 2017-08: CNY 26.43 per share

- 2017-09: CNY 27.76 per share

- 2017-10: CNY 26.28 per share

- 2017-11: CNY 23.66 per share

- 2017-12: CNY 22.26 per share

- 2018-01: CNY 20.77 per share

- 2018-02: CNY 20.98 per share

- 2018-03: CNY 22.01 per share

- 2018-04: CNY 17.01 per share

- 2018-05: CNY 16.17 per share

- 2018-06: CNY 14.06 per share

- 2018-07: CNY 13.70 per share

- 2018-08: CNY 13.19 per share

- 2018-09: CNY 13.69 per share

- 2018-10: CNY 12.17 per share

- 2018-11: CNY 12.56 per share

- 2018-12: CNY 11.56 per share

- 2019-01: CNY 12.18 per share

- 2019-02: CNY 16.85 per share

- 2019-03: CNY 17.59 per share

- 2019-04: CNY 14.90 per share

- 2019-05: CNY 12.75 per share

- 2019-06: CNY 13.11 per share

- 2019-07: CNY 12.82 per share

- 2019-08: CNY 12.37 per share

- 2019-09: CNY 12.51 per share

- 2019-10: CNY 12.24 per share

- 2019-11: CNY 12.04 per share

- 2019-12: CNY 14.55 per share

- 2020-01: CNY 24.95 per share

- 2020-02: CNY 22.28 per share

- 2020-03: CNY 17.37 per share

- 2020-04: CNY 22.85 per share

- 2020-05: CNY 29.90 per share

- 2020-06: CNY 26.85 per share

- 2020-07: CNY 25.26 per share

- 2020-08: CNY 25.34 per share

- 2020-09: CNY 23.80 per share

- 2020-10: CNY 26.38 per share

- 2020-11: CNY 29.27 per share

- 2020-12: CNY 39.12 per share

- 2021-01: CNY 36.59 per share

- 2021-02: CNY 36.89 per share

- 2021-03: CNY 36.03 per share

- 2021-04: CNY 34.74 per share

- 2021-05: CNY 35.89 per share

- 2021-06: CNY 43.56 per share

- 2021-07: CNY 54.64 per share

- 2021-08: CNY 53.75 per share

- 2021-09: CNY 47.49 per share

- 2021-10: CNY 58.90 per share

- 2021-11: CNY 66.52 per share

- 2021-12: CNY 51.25 per share

- 2022-01: CNY 40.00 per share

- 2022-02: CNY 43.08 per share

- 2022-03: CNY 34.41 per share

- 2022-04: CNY 26.80 per share

- 2022-05: CNY 36.88 per share

- 2022-06: CNY 45.60 per share

- 2022-07: CNY 39.07 per share

- 2022-08: CNY 34.36 per share

- 2022-09: CNY 30.53 per share

- 2022-10: CNY 30.05 per share

- 2022-11: CNY 32.00 per share

- 2022-12: CNY 28.83 per share

- 2023-01: CNY 32.45 per share

- 2023-02: CNY 29.57 per share

- 2023-03: CNY 29.81 per share

- 2023-04: CNY 27.50 per share

- 2023-05: CNY 26.61 per share

- 2023-06: CNY 27.62 per share

- 2023-07: CNY 27.54 per share

- 2023-08: CNY 24.22 per share

- 2023-09: CNY 23.20 per share

- 2023-10: CNY 22.76 per share

- 2023-11: CNY 22.15 per share

- 2023-12: CNY 21.50 per share

- 2024-01: CNY 18.70 per share

- 2024-02: CNY 19.79 per share

- 2024-03: CNY 20.25 per share

- 2024-04: CNY 18.76 per share

- 2024-05: CNY 20.30 per share

- 2024-06: CNY 19.15 per share

- 2024-07: CNY 19.53 per share

- 2024-08: CNY 18.66 per share

- 2024-09: CNY 23.10 per share

- 2024-10: CNY 22.77 per share

- 2024-11: CNY 23.21 per share

- 2024-12: CNY 21.22 per share

- 2025-01: CNY 20.69 per share

- 2025-02: CNY 23.29 per share

- 2025-03: CNY 21.78 per share

- 2025-04: CNY 20.66 per share

- 2025-05: CNY 24.49 per share

- 2025-06: CNY 32.46 per share

- 2025-07: CNY 29.23 per share

- 2025-08: CNY 36.47 per share

- 2025-09: CNY 46.68 per share

- 2025-10: CNY 45.51 per share

- 2025-11: CNY 39.09 per share

- 2025-12: CNY 39.11 per share

- 2026-01: CNY 37.98 per share

- 2026-02: CNY 37.90 per share

- 2026-03: CNY 35.70 per share

- 2026-04: CNY 36.74 per share

- 2026-05: CNY 32.95 per share

- 2026-06: CNY 27.51 per share

- 2026-07: CNY 28.55 per share

- 2026-08: CNY 26.71 per share

- 2026-09: CNY 29.50 per share

- 2026-10: CNY 28.33 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 14.25 per share, central CNY 19.42 per share, high CNY 22.43 per share

- FY2017: low CNY 16.97 per share, central CNY 22.24 per share, high CNY 25.32 per share

- FY2018: low CNY 14.20 per share, central CNY 19.15 per share, high CNY 22.04 per share

- FY2022: low CNY 11.52 per share, central CNY 12.00 per share, high CNY 12.35 per share

- FY2023: low CNY 12.85 per share, central CNY 13.86 per share, high CNY 14.45 per share

- FY2024: low CNY 11.77 per share, central CNY 12.90 per share, high CNY 13.55 per share

- FY2025: low CNY 11.19 per share, central CNY 12.60 per share, high CNY 13.42 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.